The balance sheet can help the owner of a company to understand the health of the company, because through it are contained the assets and debts of a company, being able to generate consistent diagnoses through the indexes.
As in a person's health, where different factors support the determination of health status, in a company the balance sheet will contain the financial variables responsible for the company's success or failure, that is, its health.
The balance sheet helps the company to:
- Greater financial control.
- Formulation of strategies.
Therefore, by recording the assets and liabilities of a company contained in the balance sheet, it is possible to carry out financial analyzes over a period of time and identify situations and problems for more effective decision-making.
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