Financial Foundations: Your Balance Sheet

07/28/2016 04:36 to watch
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The foundation of your financial structure is your balance sheet. It provides the details of your assets and your liabilities, and it also shows your shareholders equity. In this session, you will learn the basic elements of the balance sheet, and how investors will assess the health of your company by analyzing your balance sheet.

Suggested Readings

Founders School || The Art of Startup Finance || Financial Foundations: Your Balance Sheet || Impact Guide (PDF).

Berman, Karen, Joe Knight and John Case. “Understanding Balance Sheet Basics: Financial Intelligence for Entrepreneurs” A Harvard Business Press Chapter, October 7, 2008.

Questions for You

Assets: Cash, receivables, inventory, equipment. Can I put numbers to these things?

Liabilities and equity: short and long term liabilities, equity. Can I put numbers to these things?

What is our debt to equity ratio?

When investors or bankers look at my balance sheet, does my company look strong or weak? What can I do to strengthen my balance sheet?

Questions for Your Team

How can we help put numbers to the elements in the balance sheet?

Tools and Exercises

Create your balance sheet. Collect all the data you need, create your balance sheet (perhaps with the help of a bookkeeper or accountant).

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