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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 a Cash Flow Statement?

Up and Running

The cash flow statement is one of the three main financial statements (along with the income statement and balance sheet ) that shows the financial position and health of a business. The indirect cash flow statement is more popular because it can be easily created from reports produced by accounting software.

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How To Evaluate Your Company’s Value

YoungUpstarts

While this “balance sheet” valuation of your company overlooks important value factors such as revenue and earnings potential, it is a good place to start in determining the actual material value of physical property. If your company is worth only $2.5 Skip the Guesswork – Use the Tools.

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Praying to the God of Valuation

Both Sides of the Table

There were startups and a software industry but barely. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits. There was no money train. It was 1991. We still loved every moment.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%.

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5 Ways to Improve Your Business Financial Management

Up and Running

These advanced platforms can help small businesses, startups, and solopreneurs automatically log transactions and monitor account balances. Many of these solutions can also prepare tax forms or integrate with tax prep software. Either way, there’s no excuse not to invest in one (or several) of these resources.