Statement of Financial Position (Balance Sheet)
The Balance Sheet provides a clear snapshot of your companyβs financial status. It delivers essential information about your assets, liabilities, and invested owner’s equity.
π The balance sheet shows the resources your company owns, as well as the sources used to finance these resourcesβeither through liabilities or investor’s equity.
π This statement is used to determine your business’s liquidity at the end of a financial year, enabling you to make better-informed financial decisions.
π It is also an important document requested by banks, current or potential investors, especially when seeking funding for expanding a small business. Consequently, the balance sheet assists banks and other credit institutions in determining whether your company is reliable enough to receive business loans or a line of credit.
πππ How to Understand a Balance Sheet
π Similar to the income statement, your balance sheet follows a fundamental formula:
Assets = Liabilities + Ownerβs Equity.
Your total assets must equal the sum of your total liabilities plus equity.
π We offer professional accounting services and preparation of managerial reports.
