A balance sheet gives you a snapshot of your business’ financial condition at a specific moment in time.
A balance sheet helps you…
• Get a handle on the financial stability and capabilities of your business.
• Identify and analyze trends, particularly in the area of receivables and payables.
• Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses?
• Determine if you need to take immediate steps to bolster cash reserves?
Balance sheets and income statements are the basic elements necessary to providing financial information to potential lenders such as banks, investors, and vendors who are considering your credit worthiness.