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What Is a Balance Sheet?

Up and Running

If you’re in the process of starting a business or writing a business plan document, you’ll have heard the phrase “balance sheet” mentioned, or maybe you’ve seen one in a sample business plan. Now that we’ve had a general overview of the balance sheet, let’s take a deeper look at the information a balance sheet should include.

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A Brief Look At Understanding Income Statements And Balance Sheets

YoungUpstarts

The two key documents are the income statement and balance sheet, though there are more that come into play like the cash flow reports. So why are these documents important, and what is the difference between the income statement and balance sheet? Why You Need Income Statements And Balance Sheets.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. Gross burn is the total amount of money you are spending per month.

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How To Effectively Manage Business Costs

YoungUpstarts

By chasing after relentless growth – at all costs – they have gone beyond their abilities to pay spiraling bills to suppliers, employees, and financiers. How can one manage one’s business costs better? Understand what the difference between profit & loss, cashflow and balance sheet statements are.

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How to Write a Business Plan for a Service Business

Up and Running

Taking the time to describe your ideal customer and craft a marketing plan to reach them in a smart and cost-effective way is the key to a business that can grow efficiently over time. As you create a sales forecast and expense budget, you’ll be able to see what it will take to become profitable. Marketing and Sales.

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Cash Flow

Up and Running

Broadly speaking, businesses bring in money through sales, financing, and returns on investments—that’s cash flowing in. The other two, an income statement (also known as a profit and loss statement ) and a balance sheet , complement the cash flow statement and help you see a full picture of your business’s finances. .

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5 Ways to Improve Your Business Financial Management

Up and Running

The difference between the two is centered around when you change the balances. The cash method records the payment when it’s received, whereas the accrual method does so on the date of sale. The three basic financial statements to start with are your profit and loss, balance sheet, and cash flow statements.