Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

Facing Financial Fears - Embracing the Balance Sheet #legalaccounting #lawfirms #billing

18 Nov 2025 · 1 min

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In this brief conversational segment, the speakers address the common dread law‑firm partners and accountants feel when confronting the balance sheet, urging listeners to face it directly and examine the numbers. They then shift to practical lending advice, explaining that when a firm seeks an equity loan, bankers first scrutinize receivables, the amount owners are withdrawing (owner equity), and any existing loans to the business. The dialogue frames these balance‑sheet components as the critical levers lenders evaluate, positioning the balance sheet as a tool rather than a source of fear.

The balance sheet scares the bejesus out of everybody. And it's like, go ahead, go ahead and turn the page and look at it and let's go through it. Let's embrace it. Let's look at the numbers and see where the money's tied up.
Well, okay. So then the next question I have for you is a lot of times when you're trying to get that equity loan, what's the first thing a banker or someone in lending is going to look at? Well, they're going to look at receivables.
They're going to look at the equity, what, how much the owners are taking out. They're going to look at loans to the business.