Accounting is often considered the language of business. In order to paint a complete picture of a business's past, present, and future performance, it is important to understand and analyze key financial statements such as the balance sheet, income statement, and cash flow statement.
The balance sheet is one of three key financial statements that inform the overall health of your business, including how much debt you are carrying.
As a financial statement, a balance sheet represents the organization's estimated "book value" based on the sum of a company's liabilities and shareholder equity.
It provides internal and external analysts with insight into how a company is performing today, how it has performed in the past, and what it expects to do in the future. As a result, balance sheets are an essential tool for investors, stakeholders within an organization, and regulators outside the organization.
Here's everything you should know about the balance sheet. With this infographic, you can understand your balance sheet numbers.
Balance sheets can be used alongside income statements and cash flow statements to highlight where your business has been, as well as guide you in identifying where it is going.
Unfortunately, this isn't for everyone: it's difficult to wrestle with numbers.
If you need assistance in accounting to find where your money resides, Irvine Bookkeeping will make it clear. Find out more by contacting us today! Call Irvine Bookkeeping now for a Free Quote!
Irvine Bookkeeping offers a full range of bookkeeping services and promises that in 2-3 weeks, we clean up a whole book for you to prepare for tax seasons. We believe knowing your company's financial health is the key to maintaining control of your business.
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