How to Read and Understand a Balance Sheet - Business Financial Literacy

Рет қаралды 5,607

Күн бұрын

The Balance Sheet is a critical financial statement that every small business owner should be comfortable reading. It shows what a business owns and what they owe at any point in time. However, it can be confusing if you don't know what SHOULD be on a balance sheet vs. an income statement. This video is going to show you how to understand what's on any business balance sheet!
The balance sheet will show: Assets, Liabilities, and Equity.
Hannah breaks down the statement, section by section, so that you can confidently know what you are looking at when you are presented with a balance sheet.
_______________________________________________________________________________________
💲 Need an accounting system? We use Quickbooks Online with clients and recommend it as the best accounting system for small businesses. Sign up to get a discounted subscription for 12 months! claracfo.com/QBO
🙋‍♀‍Got Employees? Talk to ADP! They can help you if you are a small business owner or an accountant or advisor who works with small businesses. Learn more here: claracfo.com/adprun
💸Pay vendors any way they want and get paid faster! Accept credit cards without paying merchant fees! Melio is a fantastic payments solution for every small business! claracfo.com/melio
(As an affiliate or referral partner for these companies, I may earn rewards from qualifying purchases)
Hannah Smolinski is a #CPA and the Founder of Clara CFO Group. Find out more about Clara CFO Group at claracfo.com/
Disclaimer: This video is intended for educational purposes and
should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
CODE: FOC0MQIXWYUNNFZR, GWOC2WA3ZOZVGFB9

Пікірлер: 22

@pattychavez8038 Жыл бұрын

Thank you Hannah for putting out this series. Excellent presentation. So besides what you stated, that it’s to know the amounts in the accounts, what would be the purpose of reviewing the BS, how often should it be reviewed, what should we get out of it, should we compare it to other periods in time, if so what are we looking for. Look forward to hearing more. Thanks so much!

@ClaraCFO Жыл бұрын

Great topic ideas Patty - We will definitely work on another balance sheet video!

@Mamadriggs 11 ай бұрын

I so appreciate this. I kind of got into taking over the role of all things financial for a business due to a forced medical retirement and .... I have NO idea where any of these numbers are coming from. I'm going back to basics and doing a new company file in Quickbooks so that things can be automated like they're supposed to and all the gremlins can be cleaned up starting fresh. But looking at what is in there... based on what I see ... nothing is making sense so I'm back on the youtubes to see what am I missing. Thanks for this!

@Carol33378 6 ай бұрын

Thank you for your helpful video. If you can also create a video like how to do balance sheet reconciliation as a case study, that would be great! Thank you for your good work!

@emilyjohnson8763 Жыл бұрын

I think you read my mind with this one! Your short video was great, but I wanted a bit more! Would you make one that also talks about ways to analyze your balance sheet? Thank you for making videos!

@ClaraCFO Жыл бұрын

Great suggestion! I definitely can do a video on that. What are you analyzing for? What’s the goal you have in mind?

@mz.loquacious Жыл бұрын

@@ClaraCFO Hello, I wanted to know how can I take customers payments in group them into a jounral entry vs holding them in undeposited under received payments?

@muhammadzubairkhan3136 Жыл бұрын

Very informative video clara!!!

@ClaraCFO Жыл бұрын

Thank you! Thanks for watching!!

@RVWeather-nn5zn 3 ай бұрын

Hi Hannah - just found your videos and they are most helpful. We are in the very early stages of start up (first 120 days). My question concerning balance sheets is: do I count annual software subscriptions (e.g., WordPress, Memberpress, MailPoet, etc.) that expire some months in the future as assets? And I decrease the value of that asset so that its worth is zero when the subscription expires? Thanks again for making time to maintain this channel! Best, -Dave

@kenman200 11 ай бұрын

Hi Clara. Thank you so much for your very informative videos. Quick question, which accounting software program do you recommend for a VRBO/Airbnb business? Thanks

@saivenkateshsayani6177 Жыл бұрын

Thank you very much for giving this information please due vedio on invoice matching

@ClaraCFO Жыл бұрын

Invoicing video is coming out in 2 weeks!

@nleposk1 11 ай бұрын

Do you have any videos on adjusting entries?

@ClaraCFO 11 ай бұрын

I do not - what kind of adjusting entries are you thinking about?

@nleposk1 11 ай бұрын

@@ClaraCFO I am looking for content on all kinds of adjustments when they're needed, Why they're needed ..Trying to understand that ...just starting my business this year

@ClaraCFO 11 ай бұрын

@@nleposk1 You really don't need to be doing many journal entries as a new business. They are used mostly in accrual accounting and at the end of the year to potentially close out your books for taxes. Your CPA will do those for you or give you any adjustments that need to be made. Most cash-basis business owners don't have to do any though.

@nleposk1 11 ай бұрын

@@ClaraCFO my business is bookkeeping, I'm going through a course but they aren't addressing that. But if that's the CPAs responsibility I can see why. Thank you

@ditabahari5295 Жыл бұрын

To see a more clear picture in understanding balance sheet is to look at the assets and ask a question whether your assets are completely yours or not by looking at the liability and equity, if it's 100% equity and 0% liability means all yours otherwise if there are some parts are liabilities then the assets are not completely yours cause you still have a liability to pay them.

@ClaraCFO Жыл бұрын

That is one way to look at things! thanks for sharing!

@lindenhawthorn4761 Жыл бұрын

I think I almost need to do a fresh start on QB's it's kind of a mess from the person that was doing the bookkeeping before me.

@ClaraCFO Жыл бұрын

Sometimes that is necessary, but I would look for help from someone who specifically does QB cleanups before you go this route! I have a contact if you need one. Email us at hello@claracfo.com if you'd like to be connected.