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1. Understand the structure: A balance sheet is divided into two sections – assets and liabilities. Assets are what a company owns, while liabilities are what a company owes. Understanding the structure of a balance sheet is essential to interpreting a company’s financial health. A balance sheet is divided into
As a small business owner or entrepreneur, your business is your job and your source of income. Monitoring the financial health of your business is essential. People who run small businesses often focus on the cash flow statement because that’s something they have to think about every day to pay