Question

why should we ready a balance sheet?
Help me plz

Answer 1

The balance sheet provides a picture of the financial health of a business at a given moment in time — usually the end of a month or financial year. It can tell you if you owe more money than what you currently have, the current value of your assets and the overall value of your business.

More importantly, if you familiarise yourself with using financial ratios, the balance sheet can provide warning signs so you can solve any problems before they destroy your business. The balance sheet is a vital financial statement you should be reviewing regularly, as it changes with every transaction.