How to read Balance Sheet
Most founders don’t get the power of a balance sheet.
You only…
→ Walk away without diving deeper
→ Glance at assets and liabilities
→ Skim equity numbers
But analyzing "any" balance sheet properly takes focus.
Take it from me — when I first started working with SaaS balance sheets, I was overwhelmed by deferred revenue and capitalized commissions.
But I kept at it anyway.
Eventually, I understood how assets like cash and receivables impact a company's financial health.
Then how liabilities like accrued expenses play a role.
Then how equity truly reflects shareholder value.
Until one day, the balance sheet became my key to unlocking a company’s financial story — how it grows, scales, and invests.
And here’s the most crucial part about a balance sheet: you don’t need to be a CFO to make sense of it.
All you need is…
- An understanding of assets
- A clear breakdown of liabilities
- An insight into how equity tells the story of value creation
Because it’s not about just knowing the numbers…
It’s what those numbers reveal.