Do you know what kind of nasty surprises (losses) might be hiding in your balance sheet? Balance sheets are a place where good money often goes and hides… and rots… and dies.
Then eventually it gets “flushed” through your P&L where the expense finally becomes visible for all to see.
It’s amazingly easy for “bad news” to accumulate on a balance sheet rather than in the P&L (sometimes purposefully and sometimes not).
Hidden surprises like:
- Old or outdated inventory
- Receivables whose collection is unlikely
- Prepaids that may or may not still be there
- “Other assets” with no detail to support the balance
- Payables and accruals that no one can see (because they aren’t on the books)
- … and a lot more
Maybe now is a good time to scrub your balance sheet.
And make sure nothing ugly is hiding in there.
NOTE: You can grab a copy of my newest book at Amazon.
A Quick Start Guide to Financial Forecasting: Discover the Secret to Driving Growth, Profitability, and Cash Flow Higher provides a straightforward, easy-to-understand guide to one of the most powerful financial tools in business: a reliable financial forecast. It will transform the financial future of your company and help you make better business decisions. Get the book at Amazon.
Comments