Financial reports can feel intimidating, especially for founders without a finance background. But understanding the basics can dramatically improve decision-making and confidence. In this practical guide, Rebecca Nankya Ssemugabi breaks down how to read a balance sheet in simple, everyday language, supported by a hands-on balance sheet generator you can try yourself. M ost founders don’t struggle with running a business. They struggle with understanding the numbers behind it. And few reports feel more intimidating than the balance sheet. But here’s the truth: a balance sheet is simply a snapshot of what your business owns, what it owes, and what’s actually yours at a specific point in time. The Balance Sheet in One Line Every balance sheet is built on one simple equation: Assets = Liabilities + Equity Assets are what the business owns Liabilities are what the business owes Equity is what belongs to the owner(s) If this equation balances, the balance sheet makes sense. A Simple Exa...
The other day I was reading the Holy Quran I came across the commandments given to Muslims in Chapter 17 ( Surah Israa ), I found that similar commandments are also found in the Old and New Testaments (the 10 commandments and the seven deadly sins ), and even in non-Semitic religions, i.e., Buddhism . People who have read those will find the similarity here (as the Holy Quran confirms what is in the previous books and makes corrections where necessary). Don’t associate any partner with God. (Chapter: Surah Israa 17, Verse 22) Worship Him alone. (Chapter 17, Verse 23) Respect and Good behavior towards parents. (17, 23) Keeping the ties of Kinship. (17, 26) Spending in the way of Allah on relatives, destitute, and way-travelers . Avoiding wasting wealth. (17, 26) Don’t kill your children out of fear of poverty. (17, 31) Avoiding extramarital relationship/fornication . (17, 32) Don’t kill the innocent. (17, 33) Don’t devour the wealth of orphans/wido...