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Every wondered why the bank asks for a balance sheet when you go for a loan? Our North Perth bookkeeping business often receives requests to prepare a balance sheet for clients applying for finance and realise that their bookkeeping is in a mess! Contact our Perth Bookkeepers for help

Why does the bank ask for balance sheets for your Perth business?
The bank wants to get a picture of how your business is performing and the balance sheet can give you a financial snapshot of how healthy your business is. You can quickly determine how much you owe to your suppliers, and what your business owns.

The balance sheet lists all you assets, liabilities and equity, following a simple formula: assets = equity + liabilities. The assets and liabilities are on the left and must equal the equity amount listed on the right. When these figures match it means the balance sheet is in balance.

Having this information allows your business to put together a more accurate cash flow statementt and shows the cash flowing in and out of your business. Contact our North Perth bookkeeping service to help you prepare the balance sheets.