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The Critical Importance of an Accurate Balance Sheet

Author : Dennis Najjar
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Whether you’re talking about small business financial statements or those of a colossal, multi-billion dollar corporation, there’s one small yet immensely critical element that can be the achilles heel of both if not prepared accurately: the balance sheet. Without that, it’s impossible to determine the health of a company’s financial standing.

 

A company’s balance sheet is the official statement that gives potential investors insight into its financial strength. But just because your company may be too small too small to attract the interest of investors doesn’t mean you’re off the hook for needing an accurate balance sheet. A healthy looking balance sheet is also of extreme interest to a lender. Say your company is looking to take out a substantial loan or open a credit account with a vendor. Although they may ask to see your small business financial statements in full, it’s the balance sheet that’ll give them the real insight into whether or not your company is a safe bet or a risk worth avoiding.

 

Regardless of your company’s size, no serious business owner or decision maker should ever be comfortable entrusting the accuracy of their balance sheet – or any aspect of the company’s financial statements – to someone without the necessary skill and experience to pull it off. To ensure precision in accounting and information that’s put in an easy to read financial statements format, it may be necessary to outsource all bookkeeping and preparation duties to a qualified third party.

 

The growth of your business rests on accurate reporting in your company’s financial statements. Without that being able to provide that, you’ll never get a single serious investor and no lender will extend you the kind of credit you need to make that expansion a reality. You can take that to the bank.

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