How to Read a Balance Sheet
Can your business continue to fund its own growth? Your company’s balance sheet can answer that question at a glance. Whereas an income statement reports sales and expenses during a set period of time, and a cash-flow statement charts the flow of money in and out of your business, your balance sheet summarizes your company’s financial health on a specific date. Let’s break down a typical small-business balance sheet and define each section. What a Balance Sheet Tells You: Ass