The business’s balance sheet — among other reports and factors — can help determine the valuation of a business. No accountant could tell you what a business is worth because it’s not really an accounting question. Accountants prepare financial statements; they don’t put a value on the business and report this value in its financial report. Jul 29, 2019 · Probably the most important part of a business valuation report is the financial information. The preparer will request a balance sheet for each quarter for the past three to five years—depending on how long the company has been in existence. Generally, these business valuation techniques sum up all the business investments. Asset based business valuations can be performed on a liquidation or going concern basis. - A going concern asset based approach records the business net balance sheet value of its assets and deducts the value of its liabilities.

Balance Sheet Equation states that the sum of the owner’s capital and company’s total liabilities is equal to the company’s total assets at a particular point of time and it is fundamental of accounting which provides the basis of double-entry system of accounting. Which financial statement tells the value of a business? None of the financial statements will report the value of a business. The main financial statements (balance sheet, income statement, statement of cash flows, statement of stockholders' equity) may provide some helpful partial information, but they will not report the value of the business. A company's balance sheet gives investors an idea of the total value of its assets, which has a host of implications for company valuation and measures of profitability and efficiency.