How’s your Balance Sheet looking?

Stay up to date, get our newsletter

So how’s your balance sheet? This is Judi Otton with GrowthCast and as you’re getting ready to close your books for the year, I want you to take some extra time in doing what’s called cleaning up your balance sheet. Now this means two distinct things. So let’s get into it. The first thing that it means is just making sure that everything is accurate. Every account there has been reconciled. They’re all exactly the right numbers. It means checking your accounts receivable, checking your accounts payable, making sure that everything in those accounts is valid. The other meaning of cleaning up your balance sheet is doing things to make it look better. Things like writing off any accounts receivable that you’re not going to get, making sure that you’re caught up on your accounts payable, any loans that you can pay down or maybe there are family loans that might have been forgiven or you’re not going to pay them for whatever reason, make sure that those get forgiven and don’t show up on your balance sheet anymore. You also may want to look at during the year paying down or consolidating any debt that you have on your balance sheet. As outsiders Look at your business, look at your books, to look at the health of it, the balance sheet is one of the things that they’re going to look at. We’re gonna be talking a bunch this year about selling businesses. So taking this step in advance if you think you might want to sell your business sometime in the next five years, Get this done, make sure your balance sheet is accurate. Make sure that you’ve taken care of anything, paid anything off that you can and that it looks as healthy as possible. If you have questions about this or anything else, as always feel free to reach out. You can contact me on any of my social channels and my contact info is at the end of this video. This is Judi Otton with GrowthCast wishing you a very Happy New Year and I’ll be back next week with a new Fiscal Fitness Tip of the Week.