Episode 14: Demystifying your Financial Statements - The Balance Sheet
Your balance sheet is more than numbers, it’s the story of your business’s financial strength.
If the Profit and Loss statement tells the story of your business performance, the balance sheet reveals its foundation. It’s the snapshot of what your business owns, what it owes, and what’s left over. Yet for so many business owners, this statement is often the most misunderstood.
In this episode of The Accounting Edit, we take a closer look at the balance sheet, what it really shows, why it matters, and how you can use it to make smarter business decisions. We break down the key components like assets, liabilities, and equity, and explain how they all connect to your overall financial health.
When you understand your balance sheet, you start to see your business in a new way. It’s no longer just a list of numbers, it’s a story of how your decisions shape your financial position over time. We also unpack some of the most common mistakes we see, from mixing personal and business finances to skipping monthly reconciliations, and share how to correct them before they grow into something bigger.
The balance sheet isn’t just for accountants or tax season. It’s a living document that shows you where your business stands right now and where it’s headed next.
If you’ve ever wanted to truly understand your financial statements, this episode is the perfect place to start.
What we cover in this episode:
• What a balance sheet really reveals about your business’s financial health
• How assets, liabilities, and equity work together
• Common mistakes business owners make when managing their balance sheets
• Why retained earnings matter more than you might think
• How to use your balance sheet to make better business decisions
• Why reviewing your financial position monthly can change your strategy
🎙 Listen to Episode 14: Demystifying your Financial Statements - The Balance Sheet
Connect With Us
theaccountingedit.com
Aminder Mann, CPA
Website: sequoia-cpa.com
Instagram: @sequoiacpa
LinkedIn: Sequoia CPA
Leah McCool
Website: orca-accounting.com
Instagram: @orcaaccounting
LinkedIn: Leah McCool
Keywords: balance sheet, financial statements, assets, liabilities, equity, accounting, business health, common mistakes, financial management, decision making, bookkeeping