Article written by Charli and published at Hubstaff, leaders in employee communication software.
When you’re growing a business, there’s so much to think about. Winning contracts, hiring staff, exceeding customer expectations, buying equipment, and advertising your services. So, it’s little surprise that so many small businesses don’t keep an accurate balance sheet.
Unfortunately, failure to keep on top of your finances can be fatal. Looking at the stats from Fits Small Business below, one jumps out: 29% of small businesses fail because they ran out of capital. Furthermore, only 40% of small businesses are profitable, while 30% break even and 30% are losing money. In this article, we’ll look at balance sheets for small businesses, why you need to keep them, and some tips to get you started. We’ve also created a free balance sheet template to download so you can start implementing what you’ve learned right away.