Description
Balance sheet (management balance sheet)
The balance sheet is a report that combines the results of the P&L and Cash Flow statements into one. The document helps to control the correctness of the accounting, directions of use of profit, receivables and payables.
If Cash Flow is conducted by almost all companies, and OPU analysis is the standard for medium and large businesses, then the management balance sheet is practically not used. However, this report allows you to combine two previous reports and check the correctness of their compilation. From the balance sheet, the owner can get information about what the company owns, and how the company’s profit is distributed, or what the loss is financed from. The balance sheet consists of two main groups – assets and liabilities.
The balance sheet shows: payables and receivables, the amount of unfinished production in the organization, the amount of taxes that must be paid. On the basis of the management balance, the main indicators of the financial condition are calculated.