5 Best Tips to Improve Balance Sheet

When you ask the question, "How to Improve Balance Sheet?" It means, you understood that your balance sheet is showing your company's weak financial health. Now, your work is to strong company's financial health by improving the balance sheet. That is the reason you come to learn the steps to improve the balance sheet. To improve the balance sheet, I am writing 5 best tips which may be help to reach on the way where your balance sheet will improve.

1st Tip : Repay your Old Loans

Every day is the new way for your company. Your company has become habitual to take more and more loan without paying old loan. That is the reason, no more loan, your company will get because your balance sheet is clear explaining that your company's all assets have no capacity to repay. But, I am telling again to you to repay your loan.


a) Go to your friend companies and request. If your friend is true, he will help you.

b) Request to your creditor to reduce the total amount of loan.

c) Request to employee to sacrifice one day salary.

d) You also think any other way to repay loan.

If any one trick will use, your balance sheet will not show excess outside liabilities.

2nd Tip : Increase Cash Operating Profit

For doing every activity, we need money or cash. Your suppliers are not giving you goods on credit because your creditors conversion period is very high. Why? because you have not working capital in cash. Be serious on this point. Track and analysis the ageing reports of debtors. Try to make debtors conversion period too small. Reduce your some expenses. It will increase your surplus cash. Timely payment to creditors will helpful to get more stock on credit and your balance sheet will improve.

3rd Tip : Diversify the Investment

Some bad investment may be default and your balance sheet will become one major risk of your company's liquidation. Because you give your all capital in the form of loan and that loan become default. Your balance sheet is showing this point clear. Now, you have to follow good strategy. One side you have to win your shareholders' trust. Other side, your new investment decision will be more care. Good profit from diversified investment projects will reduce the loss of default loan investment. And one day, there will not any list of default loan because you and your shareholder have developed the power to consume this.

4th Tip : Be Specialize of Off Balance Sheet

I am not saying to become hacker for cheating with others. But you would listen the word ethical hacker. Like this, you have not specialize to hide your certain assets or liabilities through off balance sheet technique but you have to optimize your balance sheet with this technique.

5th Tip : Use the Trick of $1.2 million mansion for $10K

It means to increase the value of dead asset. Suppose, your company has one building in the balance sheet whose value is is just $ 10, 000 but your company has to pay $ 1 million to the public as per the balance sheet. But you are still interested to improve your balance sheet. You will follow trick of $ 1.2 million mansion for $ 10 K. It does not mean that you are cheating in the selling of your building but you have to find opportunity. Right time, right customer and mentioning of right quality of your building may be biggest factor to inflate your building's value. Suppose, you get opportunity for selling your building with $ 1.2 million. With this, you can repay your loan and your balance sheet will show surplus which will increase your capital. Everything is possible, but you have to struggle in right direction with right thinking.

Related : Balance Sheet Analysis






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: 5 Best Tips to Improve Balance Sheet
5 Best Tips to Improve Balance Sheet
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock