Balance Sheet

Why is a balance sheet important?

Startups and businesses use a balance sheet to:

• Track Financial Health: It provides a clear overview of the company’s financial position at a given time.
• Support Decision-Making: Helps management assess assets, debts, and available capital to make strategic choices.
• Attract Investors: Investors use balance sheets to evaluate a company’s stability, growth potential, and risk.
• Secure Funding: Lenders often require a balance sheet to determine creditworthiness and financial standing.

How often is a balance sheet prepared?

Companies typically prepare balance sheets on a quarterly, bi-annual, or annual basis. Startups may review them more frequently to monitor progress and address financial challenges quickly.

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