Why Should I Care About The Balance Sheet Report?
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Do you have your own system for keeping track of expenses and other things that go on in your business with a fancy spreadsheet? If the answer is yes then you might be getting only half of the financial picture of what is going on in your business. Don’t get me wrong. I love fancy spreadsheets and it is quite handy to use in a pinch. But it is not a long-term solution because no one ever asked to see your spreadsheet to learn how your business is doing. This is where the Balance Sheet report comes into play.
Begin With The End In Mind
What goal are you trying to achieve? Picture this. You just started your business and put in a lot of your own money but now you are in need of additional funds to help you buy key things for your business. You go down to your local bank and they ask to see your Balance Sheet so that they can get a better financial picture of your business. You look at them with a blank stare and the loan you need starts to look like a mirage. Or maybe you want to bring in a partner to help your business grow and they ask to see your Balance Sheet to see what your financial picture looks like before they move forward with you. The Balance Sheet in both cases plays a pivotal role in determining the outcome of your business decisions.
Why You Should Care About The Balance Sheet Report
The Balance Sheet Report helps you to:
Learn how much you own, owe, took out & kept inside your business
It could help you to obtain additional funds to help you grow your business
It provides key information to outside stakeholders who want to do business with you.
What Is On The Balance Sheet Report?
Assets - What you own
Liabilities - What you owe
Equity - What you took out & what you kept inside of your business
The Balance Sheet is a key report that helps you to run your business smarter. A spreadsheet can’t help you to do that because it only tells one side of the story.
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