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Chapter 8. Steps in the Planning Process > Balance Sheet Worksheet

Balance Sheet Worksheet

Current Balance Sheet for
____________________________

(name of your company)

as of
____________________________ (date)
Assets  Liabilities 
Current Assets  Current Liabilities
Cash  $ ______ Accounts Payable $ ______
Accounts Receivable  ______ Accrued Expenses ______
Inventory  ______ Short Term Loans ______
Fixed Assets  Fixed Liabilities
Land $ ______  Long Term Loan $ ______
Building ______  Mortgage ______
Equipment ______   
Total ______  Net Worth $ ______
Less Depreciation ______ $ ______  
Total  ______ Total $______
Source: Business Plan for Small Manufacturers, Management Aid #2.007, U.S. Small Business Administration, 1985.


Cash Forecasting and Budgeting.

Accurate cash flow projections are critical to the success of a new business. Just because a business is expected to be profitable doesn’t mean enough cash will be on hand to pay creditors, employees, and taxes when the need arises. In fact, growing businesses often consume more cash than they generate. This is because increasingly large amounts of cash become tied up in inventory, equipment, facilities, payroll, and accounts receivable. Other entrepreneurs invest their entire savings to start a new business without a sufficient cushion of cash required to pay bills when due. In either case, it is useful to think in terms of monitoring and managing cash as well as profits. A worksheet such as the one shown on the facing page is useful for estimating cash flows.


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