A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time. A balance sheet allows you too:

• Understand the financial strength and capabilities of your business.
• Identify trends, such as a receivables cycle that is lengthening.
• Determine if your business is capable of expansion.
• Determine if your business can handle typical fluctuations of revenues and expenses.
• Determine if cash reserves are sufficient.

Preparing an accurate balance sheet and income statement will allow you to provide necessary financial information to potential lenders, investors, and/or vendors.