Balance Sheet- Importance in Business & Investing

<p><strong>Do you know why the balance sheet is one of the key financial statements that Investors and lenders look at the most? </strong></p><br><p>Most entrepreneurs focus on the income statement/P&amp;L as this show the profit or loss a business in making, but in reality, the balance sheet indicates the financial strength of a company and is the report that investors and bankers spend a considerable time analysing.</p><br><p>Well, this is because the balance sheet shows the financial health of a business at a point in time and by analysing the numbers, investors can determine how well you have been running your affairs up to that particular point in time.</p><br><p>Managing a balance sheet requires a deeper understanding of finance than manging an income statement – primarily as you have to know how changes in the balance sheet impacts the other financial statements and vice versa. &nbsp;&nbsp;</p><br><p>As complex as this may sound, there are really three main parts.</p><br><p>Assets = Liabilities + Capital/ owners’ equity&nbsp;</p><br><p>On this 4th Episode of my Podcast, i explain The Balance Sheet and its importance to business health, wealth and investing.</p><br><p>I talk about the key aspects of the balance sheet, keeping it very basic for now but will talk about some of the complexities in the future. </p><br><p>I also plan to cover the other financial statements, asset protection and much more in the upcoming episodes. </p><br><p>You can find out more about me through social media profiles or visiting my website www.racmacs.com.&nbsp;</p><br><p>Follow me on Social Media:</p><br><p>LinkedIn:&nbsp;<a href="https://www.linkedin.com/in/royston-andrew-cumberbatch-finance" rel="noopener noreferrer" target="_blank">https://www.linkedin.com/in/royston-andrew-cumberbatch-finance</a>.</p><p>Instagram: <a href="https://www.instagram.com/royston.cumberbatch/" rel="noopener noreferrer" target="_blank">https://www.instagram.com/royston.cumberbatch/</a></p><p>YouTube: <a href="https://www.youtube.com/feed/my_videos"