What is a balance sheet? It’s advantages and benefits.

You will often hear many accounting-related words in everyday tasks, especially if you are in the accounting or banking sector or use any accounting software like Tally. So you must have heard the name of the balance sheet. A balance sheet is essential in any business. But what is the balance sheet, its uses and benefits, how to create this in Tally and excel, what is assets & liabilities, often many people are not aware of it?

What is a Balance Sheet?

The balance sheet is a financial statement, i.e., a financial statement that reports the asset, liabilities, shareholder’s equity of an entity, company, or business during a given period. Anyone can quickly check the growth of the company through the balance sheet. Suppose you invest in the stock market, then you can look at the balance sheets of companies listed on the stock exchange and study those balance sheets. Apart from this, when a trader wants to share or share in any company entity or e-commerce site with another businessman, he carefully studies that company’s financial statement and only then makes other deals. Now you can understand how important this is for any industry or company.

The biggest mistake made by most new business owners is that they don’t understand the company’s financial statements carefully. This helps monitor the financial health of your business.

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Read More: https://factsofaccounting.com/balance-sheet-its-advantages-and-benefits/