article thumbnail

What Is a Balance Sheet?

Up and Running

Assets = Liabilities + Equity. 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. In this article, I’ll review: The components of a balance sheet. Balance sheet examples.

article thumbnail

[INTERVIEW] Michael Majeed, Finance Executive, SR&ED Tax Consultant

YoungUpstarts

What should business owners look for on their weekly or monthly balance sheets that might be red flags telling them to make changes in how their business practices? For starters, rising debt-to-equity ratio. Precise planning makes a difference in that it allows the entrepreneur to improve profits, reduce costs and increase ROIs.

Finance 217
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

SayAhh’s Revenue Projections

Feld Thoughts

Before building his projections, Dick needs to make three main decisions: Should he build a simple cash forecast or a set of projected financial statements? Cash Forecast vs. Projected Financials – What’s the difference? A simple cash forecast is just that – it is a model that helps anticipate cash balances over time.

Revenue 127
article thumbnail

9 Steps to Handle Business Loan Rejection

Up and Running

Bankers use standard business ratios derived from your financials, including your Profit or Loss, ( Income Statement ), Balance Sheet , and Cash Flow Statement. Where you borrow money from angel investors or venture capitalists willing to lend money to startups for more interest and usually an equity kicker as well.

SBA 163
article thumbnail

Essential Financial Templates For Your Small Business

YoungUpstarts

Balance Sheet. The balance sheet, or the statement of financial position, provides you an overall and detailed snapshot of the small business that you’re running. As the name suggests in itself, both the parts of this equation should balance out and one shouldn’t exceed the other. Forecast and Budgeting.

article thumbnail

5 Financial Ratios Used To Measure Business Risk and How To Use Them

Up and Running

Debt-to-equity ratio. Banks, financial institutions, and investors typically use the debt-to-equity ratio to determine the risk of loaning money to an organization. Debt-to-equity ratio = (total liabilities)/(shareholders’ equity). Debt-to-equity ratio = (total liabilities)/(shareholders’ equity).

Equity 136
article thumbnail

Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Investors love to be able to see what you told them in forecasts in prior years and then compare with how you actually performed.

Cap Table 336