The balance sheet—it’s best described as a snapshot of a family business’s financial health at a specific date. Regular reviews are key to making strategic decisions. However, rather than focusing a review on how much assets cost, CFA Travis W. Harms encourages family business directors to focus on what future economic benefits each asset will provide.
It’s more than focusing on what assets the business owns. It’s also about understanding why the family business own those assets.
When reviewing assets, family business directors should consider four questions. You can find the questions in this article.
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