Balance sheet: How to do it and analyse it effectively?
Posted: Wed Dec 18, 2024 4:21 am
The balance sheet is an essential tool for accountants and financiers to analyse the functioning and financial health of a company.
We explain what a balance sheet is, its structure and the reasons why it is one of the most important financial documents.
Learn in detail how to analyze your company's balance sheet, which will help you improve your decision-making.
One of the main objectives of accounting is to facilitate the company's annual accounts, which include the balance sheet .
The balance sheet is one of the most important financial documents of a company. It reflects its financial situation at a given time, that is, what it has and how croatian email list it has been financed. Therefore, it is an essential tool for accountants, who must be able to prepare and analyse it effectively.
If you know how to read a balance sheet , you can see if the company's financial structure is adequate. You can see, for example, if the company's most liquid assets are sufficient to meet short-term debt maturities.
Start of marked textTWEET IT! The balance sheet is key to analyzing the financial health of a company. Find out what it is and how to analyze it to make informed decisions.End of marked text
What is the balance sheet?
We can define the balance sheet as the document that forms part of the annual accounts and reflects the financial situation of a company.
The balance sheet is like a snapshot of a company's financial status at a given date. It shows at a glance:
What the company has (assets).
What is owed (liabilities). According to the General Accounting Plan , liabilities include current obligations arising as a result of past events , for the extinction of which the company hopes to dispose of resources that may produce benefits or economic returns in the future.
Your capital (net worth).
The sum of the liabilities and net worth items must equal the company's assets.
Balance sheet structure
The structure of the balance sheet is as follows:
Current and non-current assets
The assets are subdivided into current assets and non-current assets.
Current assets are the set of goods and rights that the company expects to convert into cash or consume within one year. They are therefore what determine the company's ability to meet short-term payment commitments. They are made up of the following item.
We explain what a balance sheet is, its structure and the reasons why it is one of the most important financial documents.
Learn in detail how to analyze your company's balance sheet, which will help you improve your decision-making.
One of the main objectives of accounting is to facilitate the company's annual accounts, which include the balance sheet .
The balance sheet is one of the most important financial documents of a company. It reflects its financial situation at a given time, that is, what it has and how croatian email list it has been financed. Therefore, it is an essential tool for accountants, who must be able to prepare and analyse it effectively.
If you know how to read a balance sheet , you can see if the company's financial structure is adequate. You can see, for example, if the company's most liquid assets are sufficient to meet short-term debt maturities.
Start of marked textTWEET IT! The balance sheet is key to analyzing the financial health of a company. Find out what it is and how to analyze it to make informed decisions.End of marked text
What is the balance sheet?
We can define the balance sheet as the document that forms part of the annual accounts and reflects the financial situation of a company.
The balance sheet is like a snapshot of a company's financial status at a given date. It shows at a glance:
What the company has (assets).
What is owed (liabilities). According to the General Accounting Plan , liabilities include current obligations arising as a result of past events , for the extinction of which the company hopes to dispose of resources that may produce benefits or economic returns in the future.
Your capital (net worth).
The sum of the liabilities and net worth items must equal the company's assets.
Balance sheet structure
The structure of the balance sheet is as follows:
Current and non-current assets
The assets are subdivided into current assets and non-current assets.
Current assets are the set of goods and rights that the company expects to convert into cash or consume within one year. They are therefore what determine the company's ability to meet short-term payment commitments. They are made up of the following item.