The balance sheet or balance sheet accounting usually generates quite a lot of doubts among the freelancers and the owners of small enterprises outside the world of finance. That is why we have decided to explain briefly and simply what a balance sheet is, what it is for and, most interestingly of all: why taking the time to create a perfect balance sheet is a good idea. so important for your SME. Does this sound interesting to you? It is, so go ahead and read on and, if you want, share this article on your social networks.
The first thing you need to know for the avoidance of doubt is that the balance sheet is also known as the balance sheet. other names such as, for example, balance sheet, balance sheet or balance sheet.
Having clarified this, we could say that the balance sheet could be defined as a financial report which summarises as simply as possible the financial and accounting status of our small business. This document should be drawn up in a way that reflects easily and simply:
As is the case with other documents of this type, the balance sheet is prepared on the basis of the following official models. The General Chart of Accounts allows two types of filing: normal and abbreviated. You will choose one or the other depending on the size of your company, your annual turnover, etc.
Click here to obtain detailed official information on this important point.
One last interesting fact: the balance sheet can be done as many times as you want or need, but remember that it is mandatory. annual presentation in the annual accounts of your SME.
Some experts compare the balance sheet or balance sheet as a photo in detail of the financial situation of a company at a given moment; a kind of X-ray that serves to diagnose the financial situation of a company at a given moment in time. the good or bad business health in the field of “accounts”.
In the case of SMEs, The importance of this balance increases for a number of complementary reasons, such as the following:
A large proportion of small enterprises do not have accounting and financial advisors who are dedicated exclusively to managing their financial situation. From this point of view, balance sheet accounting is simple to understand even for those of us with low financial literacy and thus becomes a fundamental tool for forecasting future accounting issues, correcting negative deviations, avoiding technical errors that can lead to problems and penalties with the tax authorities, etc.
Among many other things, the balance sheet provides an accurate reflection of the state of the assets of our SME, The real state of our accounts at a given moment in time. This important information will help us to evaluate and take multiple strategic decisions from investing in the acquisition of a new warehouse for our business, to expanding our commercial department, to encouraging the flexible compensation of our employees, etc.
Last but not least: balance sheet accounting allows us to controlling the costs of our SME, This is essential to guarantee our permanence in an increasingly competitive and globalised market.
So much for our summary of the balance sheet. Did you know these facts? Did you find this article useful?
