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# How to read a balance sheet
- URL: https://theinspirationspace.co/how-to-read-a-balance-sheet/
- Published: 2026-09-30T09:10:14.000Z
- Updated: 2026-09-30T09:10:14.000Z
- Description: A plain-English guide to balance sheets, the figures they contain and what they can reveal about a business’s financial health.
- Author: Inspiration Space
- Tags: Money & Funding, #watch-and-learn, Watch & Learn, #resource

You don’t need a business degree to understand a balance sheet. You need a clear explanation of what each term means, how the figures relate and what they reveal about a business.

Nigel Scarfe walks through the essentials so you can read a balance sheet with more confidence and use it to ask better financial questions.

## What you’ll learn

- What assets, liabilities and equity mean
- How the main figures connect
- What working capital can tell you
- How a balance sheet helps you assess financial health

## Watch this if

You want to understand the financial position of your own business, a supplier or a potential investment without getting lost in accounting jargon.

## What to do next

Open a recent balance sheet and identify its assets, liabilities and equity. Note one figure you want your accountant or adviser to explain.