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The Balance Sheet for Small Businesses

Posted by: Rod Kurtz on January 9, 2007

Along with the income statement, the balance sheet will provide you with the data necessary to make sound financial decisions. The balance sheet lists the assets and the liabilities of your company. The difference between your assets and liabilities will be the net worth of the business at the end of a specific period (Assets - Liabilities = Net Worth). The net worth of your business at a given time is of particular interest to prospective investors.

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