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Definitive Business Plan, Second Edition, The by Richard Stutely

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Balance sheet headings

You have just looked at methods of producing balance sheets and cash flow from your expenditure forecasts. Now is a good time to take a look at the entries that appear in balance sheets. You could, if you wanted, do the opposite and work through the balance sheet pulling in entries from the transaction accounts and churning out the cash flow on the side. Figure 10.1 shows the main headings on a balance sheet. To make sure that you are familiar with them, I will run through each in turn. But first how long is long?

Figure 10.1. A snapshot of the balance sheet

How long is long?

Unlike other professionals, accountants consider ...

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