Balance sheets are an important part of an accurate assessment of the financial status of a business, used both by the business itself and by external actors like lenders and investors. A balance sheet has several purposes that apply to businesses of any size, including:
Assessing the financial health of a business in general
Demonstrating the growth and success of a business
Determining financial risks (i.e. excessive debt)
Securing loans and investments
Acquiring talent to help the business achieve further growth