Small businesses often need to provide financial statements to banks, investors, or other stakeholders. The Small Business Administration (SBA) offers a free template that can be used to create these statements. This template is designed to be easy to use, even for those who are not familiar with accounting. Using the SBA business financial statement template can help small businesses save time and money while ensuring that their financial statements are accurate and complete.
The SBA business financial statement template includes three main sections: the balance sheet, the income statement, and the statement of cash flows. The balance sheet provides a snapshot of the business’s financial health at a specific point in time. The income statement shows the business’s revenues and expenses over a period of time. The statement of cash flows shows how the business’s cash is being used.
Balance Sheet
The balance sheet is a financial statement that provides a snapshot of a business’s financial health at a specific point in time. It shows the business’s assets, liabilities, and equity. Assets are anything that the business owns, such as cash, inventory, and equipment. Liabilities are anything that the business owes, such as loans and accounts payable. Equity is the difference between assets and liabilities. It represents the owner’s investment in the business.
The balance sheet is used to assess a business’s financial strength. A strong balance sheet indicates that the business has a lot of assets and few liabilities. This means that the business is able to meet its financial obligations and has the resources to grow. A weak balance sheet indicates that the business has few assets and a lot of liabilities. This means that the business may be at risk of financial distress.
The SBA business financial statement template includes a pre-formatted balance sheet. This template makes it easy to create a balance sheet that is accurate and complete. The template includes instructions on how to fill out each section of the balance sheet. It also includes examples of financial ratios that can be used to analyze the balance sheet.
Income Statement
The income statement is a financial statement that shows the business’s revenues and expenses over a period of time. It is used to calculate the business’s net income or loss. Net income is the difference between revenues and expenses. A positive net income indicates that the business is profitable. A negative net income indicates that the business is losing money.
The income statement is used to assess a business’s profitability. A profitable business is able to generate enough revenue to cover its expenses and make a profit. An unprofitable business is not able to generate enough revenue to cover its expenses. This means that the business may be at risk of financial distress.
The SBA business financial statement template includes a pre-formatted income statement. This template makes it easy to create an income statement that is accurate and complete. The template includes instructions on how to fill out each section of the income statement. It also includes examples of financial ratios that can be used to analyze the income statement.
Statement of Cash Flows
The statement of cash flows is a financial statement that shows how the business’s cash is being used. It is used to track the business’s cash inflows and outflows. Cash inflows are any sources of cash, such as sales, investments, and loans. Cash outflows are any uses of cash, such as expenses, purchases, and dividends.
The statement of cash flows is used to assess a business’s liquidity. A liquid business has enough cash to meet its financial obligations and has the resources to grow. An illiquid business does not have enough cash to meet its financial obligations. This means that the business may be at risk of financial distress.
The SBA business financial statement template includes a pre-formatted statement of cash flows. This template makes it easy to create a statement of cash flows that is accurate and complete. The template includes instructions on how to fill out each section of the statement of cash flows. It also includes examples of financial ratios that can be used to analyze the statement of cash flows.
Conclusion
The SBA business financial statement template is a valuable tool for small businesses. It can be used to create accurate and complete financial statements that can be used to assess the business’s financial health, profitability, and liquidity.
Using the SBA business financial statement template can help small businesses save time and money while ensuring that their financial statements are accurate and complete. This can help small businesses attract investors, get loans, and grow their businesses.
