Balance Sheet Deep Dive: Understanding Profit, Cash Flow & Financial Reality

Here’s the agenda.

Session 1: The Balance Sheet Overview

• What the balance sheet is actually telling you, including – how to manage cash flow and understand ratios
• The relationship between:
  • Income statement
  • Balance sheet
  • Cash flow
• The balance sheet equation—and why it always has to balance
• All the pieces of the equity section (from QuickBooks), what they mean, and how it connects back to profit

Session 2: Validating the Numbers

How to look at reports from QuickBooks and know if the numbers can be assured to be accurate.

What are some steps to resolve numbers that aren’t quite right. 

All three financial statements are linked together. We will work through various examples of different business transactions impact all three financial statements.

Session 3: Creating a Cash Flow Statement 

For historical analysis, the best way to understand cash flow is by creating a cash flow statement from comparative balance sheets. We will work through the process step-by-step, so you can better understand cash flow and what that tells you about a business’s stability, and how it can adjust to improve its viability.

Week 4: Preparing for Financing

How to create a pre-money and post-money balance sheet appropriate for lenders, and cash flow projections that incorporate operating, financing and investing activities.