From financial wellness to financial intelligence, your bookkeeper and controller can help you gain insight about your business through your balance sheet.
Of all the key financial statements that business owners must understand, including the income statement and cash flow statement, the most important is the balance sheet. It shows the company's true financial position in a way no other document does.
What Is a Balance Sheet?
Anybody who has taken an accounting class knows the formula that the balance sheet is based on: assets = liabilities + owner's equity.
Seems straightforward enough. The key is to make sure you're accounting for each of those categories in its entirety. And the first step is to define the terms: