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Balance Sheet Model for Small Economic Entities

Author

Listed:
  • Halina Chlodnicka

    (Rzeszow Univerisity of Technology, Poland)

  • Grzegorz Zimon

    (Rzeszow Univerisity of Technology, Poland)

Abstract

Financial reporting still raises doubts and concerns among large and small entrepreneurs. When analyzing financial statements, the recipient often asks whether the current comprehensive forms of financial statements are not too vague and confusing. Data disclosed in the financial statements are often not easily read by ordinary users or even analysts. Maybe now it is worth looking for other new solutions that will allow business managers to obtain basic financial information from the financial reports in a quick and immediate way. The increase in competition and financial crises caused the largest number of bankruptcies in the group of small and medium enterprises. And it is to these small economic entities that it is worth facilitating the process of analyzing financial data. For this group of enterprises, it is worth highlighting in the financial statements those data that may inform about risks in conducting and continuing further operations. The article presents a balance sheet model for small business entities. Its layout and formula is designed to lighten the picture of the company’s financial situation and provide the most important information on the company’s financial safety.

Suggested Citation

  • Halina Chlodnicka & Grzegorz Zimon, 2021. "Balance Sheet Model for Small Economic Entities," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 6(2), pages 7-11, January.
    • Handle: RePEc:mgs:jibrme:v:6:y:2021:i:2:p:7-11
    DOI: 10.18775/jibrm.1849-8558.2015.62.3001
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    References listed on IDEAS

    as
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    3. Grzegorz Zimon, 2018. "Influence of group purchasing organizations on financial situation of Polish SMEs," Oeconomia Copernicana, Institute of Economic Research, vol. 9(1), pages 87-104, March.
    4. Brenda van Tendeloo & Ann Vanstraelen, 2005. "Earnings management under German GAAP versus IFRS," European Accounting Review, Taylor & Francis Journals, vol. 14(1), pages 155-180.
    5. Anwer S. Ahmed & Michael Neel & Dechun Wang, 2013. "Does Mandatory Adoption of IFRS Improve Accounting Quality? Preliminary Evidence," Contemporary Accounting Research, John Wiley & Sons, vol. 30(4), pages 1344-1372, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    SMEs; balance sheet; financial security;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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