Importance of your Balance Sheet

News Letter


Importance of your Balance Sheet

Any Business/MSME has to understand its own balance sheet. But it is a most neglected area.

Banks/Financial institutions are asking your balance sheet, Auditor does audit and file income tax return.

Can you ask yourself why balance sheet is required? It can give a lot of analytical ratios which can become your guiding light for growth.

If you derive a lot of operational ratio like inventory turnover ratio, collection period, expenses to sales, return on capital and if you do it for 3 or 5 years, you can arrive at the change in strategically thinking over a period of time many more things can be derived including predictive growth possibilities.

Once you understand and correct low lying steps, you will fall in love with.

This is the way for a successful enterprise.

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