What story does your Balance Sheet tell?
Do you understand the story your Balance Sheet tells about your business?
It’s important you understand the components of your Balance Sheet and the key ratios that measure the health of your business.
1. It measures the net worth of your business.
Your Balance Sheet is made up of all of your assets and liabilities; your net worth is your total assets less total liabilities.
Current assets are assets which are expected to be converted into cash within 12 months; current liabilities are expected to be paid within 12 months
Non-current assets aren’t expected to be converted into cash in the short-term; non-current liabilities are long-term liabilities which aren’t expected to be paid within 12 months
Your net worth is the owners’ interest in the business. In other words, if your business was to be wound up this is how much you’d be left with as the owner of the business.
2. It tells you if your business is solvent.
Solvency is the acid test for survival. If your business is insolvent, without immediate action to remedy this, it’s unlikely to survive for long. There are two components to solvency:
Current ratio greater than 1 (current assets / current liabilities)
Positive net assets (total assets - total liabilities)
If your business is insolvent, you’ll struggle to pay bills on time and you may be personally at risk. It’s imperative you seek help immediately if your business is insolvent.
3. It allows you track the strength of your business.
By comparing your Balance Sheet to previous periods, you can track whether your net worth is increasing or decreasing.
The stronger your Balance Sheet, the easier it will be for your business to survive a downturn.
For example, if your retained earnings are diminishing over time, it’s clear that you need to take action to strengthen your Balance Sheet to ensure you’ll receive value upon the wind up or sale of your business.
4. You can calculate key ratios.
Key ratios not only allow you to compare your results year on year or to industry benchmarks, they also highlight areas for improvement.
For example, calculating your debtor days may show that it takes on average 35 days for customers to pay you. If your payment terms are within 7 days of invoice, it’s clear that your debtor processes need to be strengthened.
Perhaps you calculate how long it takes inventory to sell and see it’s taking twice as long to sell this year than it did last year. Or, maybe a specific product is taking a lot longer to sell than others, which may indicate you should discontinue it. Key ratios calculated using your Balance Sheet can tell a us a multitude of things.
As a business owner you should be able to read your Balance Sheet and understand what it's telling you.
Taarifa gani inapatikana katika orodha yako ya uhasibu? Je, unaelewa hadithi ambayo Balance Sheet yako inasimulia kuhusu biashara yako? Ni muhimu kuelewa vipengele vya Balance Sheet yako na uwiano muhimu ambao kupima afya ya biashara yako. 1. Uwe na mtazamo wa kweli Inapima thamani ya biashara yako. Balance Sheet yako ni pamoja na mali na madeni yako yote, na thamani yako ni jumla ya mali yako chini ya madeni. Mali ya sasa ni mali ambayo inatarajiwa kubadilishwa kuwa fedha ndani ya miezi 12; dhima za sasa zinatarajiwa kulipwa ndani ya miezi 12 Mali zisizo za sasa hazitarajiwa kubadilishwa kuwa fedha katika muda mfupi; dhima zisizo za sasa ni dhima za muda mrefu ambazo hazitarajiwa kulipwa ndani ya miezi 12. Kwa maneno mengine, kama biashara yako ilikuwa ya kufutwa hii ni kiasi gani wewe <unk>d kushoto na kama mmiliki wa biashara. 2. Uwezekano wa kupata Inakuambia kama biashara yako ni solvent. Solvency ni mtihani asidi kwa ajili ya kuishi. Kama biashara yako ni insolvent, bila hatua ya mara moja ya kurekebisha hii, ni uwezekano mdogo wa kuishi kwa muda mrefu. Solvency: Kuna vipengele viwili vya uaminifu: uwiano wa sasa zaidi ya 1 (mali ya sasa) uwiano wa sasa (mali ya sasa) uwiano wa sasa (mali ya jumla) uwiano wa sasa (mali ya jumla) uwiano wa sasa (mali ya jumla) uwiano wa sasa (mali ya jumla) uwiano wa sasa (mali ya jumla) uwiano wa sasa (mali ya jumla) uwiano wa sasa (mali ya jumla) Ni muhimu kutafuta msaada mara moja ikiwa biashara yako ni insolvent. 3. Uwe na mtazamo wa kweli Inakuruhusu kufuatilia nguvu ya biashara yako. Kwa kulinganisha Balance Sheet yako na vipindi vya awali, unaweza kufuatilia kama thamani yako ya jumla inaongezeka au kupungua. Kadiri usawa wa fedha ulivyo, ndivyo biashara yako itakavyokuwa rahisi zaidi kukabiliana na hali mbaya. Kwa mfano, kama mapato yako yaliyowekwa yanapungua kwa muda, ni wazi kwamba unahitaji kuchukua hatua ili kuimarisha Balance Sheet yako ili kuhakikisha utapokea thamani juu ya upepo au uuzaji wa biashara yako. 4. Uwe na uhakika Unaweza kuhesabu uwiano muhimu. Kiwango cha msingi hakiruhusu tu kulinganisha matokeo yako mwaka kwa mwaka au kwa viwango vya sekta, pia huangazia maeneo ya uboreshaji. Kwa mfano, kuamua siku za deni lako kunaweza kuonyesha kwamba kwa wastani inachukua siku 35 kwa wateja kukulipa. Ikiwa masharti yako ya malipo ni ndani ya siku 7 za ankara, ni wazi kwamba taratibu zako za deni zinahitaji kuimarishwa. Labda wewe kuhesabu muda gani inachukua hesabu ya kuuza na kuona ni kuchukua mara mbili ya muda mrefu kuuza mwaka huu kuliko alifanya mwaka jana. Au, labda bidhaa fulani inachukua muda mrefu kuuza kuliko nyingine, ambayo inaweza kuonyesha unapaswa kuacha. Viwango muhimu vilivyohesabiwa kwa kutumia Balance Sheet yako vinaweza kutuambia mambo mengi. Kama mmiliki wa biashara unapaswa kuwa na uwezo wa kusoma Balance Sheet yako na kuelewa nini ni kukuambia.