The Balance Sheet in Action
How to Win Friends and Influence Bankers
What I’ve been showing you throughout this book is how to build a business that is a going concern, an accounting term that CPAs and bankers use to describe a well-run, profitable business that isn’t under threat of bankruptcy in the foreseeable future. A going concern is a business that is self-sustaining with predictable revenue streams, reasonable expenses, and adequate cash levels to pay its bills. Building such a business must be the goal of every small business owner/manager.
In order to help you build a going concern, I needed to take you through the building blocks of your financial dashboard—the Net Income Statement, the Cash Flow Statement, and the Balance ...