{"id":200,"date":"2020-07-15T17:13:18","date_gmt":"2020-07-15T17:13:18","guid":{"rendered":"https:\/\/pretty-books.com\/blog\/?p=200"},"modified":"2020-07-27T19:45:27","modified_gmt":"2020-07-27T19:45:27","slug":"reading-and-evaluating-a-balance-sheet","status":"publish","type":"post","link":"https:\/\/prettybooks.com\/magazine\/2020\/07\/15\/reading-and-evaluating-a-balance-sheet\/","title":{"rendered":"Reading and Evaluating a Balance Sheet"},"content":{"rendered":"

Susan and her neighbor have a better picture of how their businesses are doing by maintaining and understanding their profit and loss from sales and services provided. But what if they\u2019d like a big-picture look at their business? What happens to <\/strong>their assets and liabilities?<\/p>\n

This is where a balance sheet comes in.<\/strong> A balance sheet<\/em> is a report displaying what a company owns (assets) and owes (liabilities), as well as long-term investments.<\/em><\/strong><\/p>\n

Tend to get lost when reading your balance sheets? Don\u2019t understand what it really tells<\/i> you? Don’t worry: Pretty Books to the rescue!<\/strong><\/p>\n

<\/p>\n

Reveal the bare necessities<\/a> of balance sheets<\/strong><\/span><\/h2>\n

Essentially, the balance sheet is broken down into three aspects: assets, liabilities, and equity. By analyzing these three amounts from your balance sheet, you\u2019ll be able to better assess the financial position of your business.<\/p>\n

Assets<\/strong><\/p>\n

Assets are any resources owned by a business that can provide some type of future economic benefit (say “Hello”<\/a> <\/strong>to the money coming in to your bank account!).<\/p>\n