Producing the Balance Sheet
The first step is to develop the balance sheet. The balance sheet is a quick glance at your business at some point in the year. This financial statement is always done on a year-to-date basis until you get to the year-end close.
We develop the balance sheet for Lisa’s Candle Shop and then show you various financial analysis tools that help gauge how the business is doing. These tools are useful to management for internal assessment as well as to external entities, such as a bank or potential investor.
Here’s the balance sheet for Lisa’s Candle Shop at the end of February.
Before we start analyzing the numbers, ...