When it comes to understanding your business finances, your Balance Sheet is one of the most useful tools you’ve got. But what is it exactly – and why should you care?
At Insight Finance Solutions, we work like a dedicated finance team (without the overheads of hiring one). That means we’re all about helping you actually understand your numbers – and use them to make better business decisions.
So, what is a Balance Sheet?
A Balance Sheet is a snapshot of what your business owns and owes at a particular point in time. It’s a key part of your financial picture, showing:
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What your business owns (your assets)
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What your business owes (your liabilities)
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What’s left over (your equity)
Think of it as a financial health check – it tells you how strong your business is right now.
What’s included in a Balance Sheet?
A typical Balance Sheet is split into three main sections:
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Assets – things you own, like cash, stock, equipment, or money owed to you (debtors)
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Liabilities – things you owe, like unpaid bills, loans, or tax
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Equity – the bit that’s yours after everything’s been taken into account (also known as net assets)
It’s called a balance sheet because it always has to balance. Your assets must equal your liabilities plus equity. If they don’t, something’s gone wrong in your records!
Why do you need one?
We get it – Balance Sheets can look a bit dry at first glance. But they’re packed with insights that are so useful to your business. Here’s why:
1. Know your business’s true value
A Balance Sheet shows you what your business is really worth – not just how much money is in the bank. It gives you a bigger-picture view of your financial strength.
2. Stay in control of debt and cash flow
By seeing how your assets compare to your liabilities, you can spot potential cash flow issues before they become a problem – and make decisions with confidence.
3. Essential for borrowing and investment
If you’re applying for finance, a lender will want to see a recent Balance Sheet. It shows that your business is stable, reliable, and being properly managed.
4. Track business growth
Comparing your Balance Sheet each month helps you spot trends and track progress. You’ll see where things are improving – and where you might need to make changes.
We do this monthly – so you’re always in the know
At Insight, we prepare Balance Sheets every month as part of your regular reporting. That way, you’re not left guessing. You know where you stand financially – and can take action when it matters.
We don’t just send reports and walk away either. We explain what the numbers mean and how they affect your business, in plain English. No jargon. No confusion.
Need a clearer picture of your business?
We’re not your average bookkeepers. We’re a hands-on finance team working with you month after month to help your business grow and thrive.
If you’re ready to understand your numbers, stay in control, and make smart financial decisions, we’re here for you. Get in touch today to see how we can help!