What Is A Balance Sheet,
And Why Does It Matter?
A balance sheet (or statement of financial position) is a financial report that summarizes an organization’s assets, liabilities, and shareholders’ equity for a particular period of time.
What this means is that the balance sheet provides a picture regarding what the organization owes and owns for a particular time frame.
This is important as the balance sheet report reflects the organization’s status and can give you an indication of its financial stance.