In This Chapter
Tackling the Balance Sheet
Pulling together your Balance Sheet accounts
Choosing a format
Drawing conclusions from your Balance Sheet
Polishing your electronically produced Balance Sheet
Periodically, you want to know how well your business is doing. Therefore, at the end of each accounting period you draw up a Balance Sheet – a snapshot of your business’s condition. This snapshot gives you a picture of where your business stands – its assets, its liabilities and how much the owners have invested in the business at a particular point in time.
This chapter explains the key ingredients of a Balance Sheet and tells you how to pull them all together. You also find out how to use analytical tools called ratios to see how well your business is doing.
Basically, creating a Balance Sheet is like taking a picture of the financial aspects of your business.
The business name appears at the top of the Balance ...