The pur­po­se of a balan­ce sheet is to give inte­res­ted par­ties an idea of the company’s finan­cial posi­ti­on, in addi­ti­on to dis­play­ing what the com­pa­ny owns and owes. It is important that all inves­tors know how to use, ana­ly­ze and read a balan­ce sheet. Yes, the balan­ce sheet will always balan­ce sin­ce the ent­ry for […]

It lets you see a snapshot of your busi­ness on a given date, typi­cal­ly month or year-end. It is also a valuable tool for manage­ment to know the value of assets a busi­ness owns, inclu­ding equip­ment, bank balan­ce and what it owes at any given time. By com­pa­ring your inco­me state­ment to your balan­ce sheet, […]