A balance sheet gives you a snapshot of your business’ financial moment in time. It shows the total assets owned by the business and the total liabilities owed by the business.
A balance sheet helps you:
- Quickly get a handle on the financial strength and capabilities of your business
- Determine if your business is in a position to expand
Income statements and Balance sheets are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.