Reading through my daily small business news clippings, I came across a newly released survey from the Tenon Forum, a UK-based small business think tank, which said that almost 20% of small business owners have no idea how much money their business owes. Half of those surveyed said their business owed money, and more than a quarter had moderate or high personal debt as well.

Managed well, debt financing can be a great way to finance growth without losing ownership control. It can also be a way to make it through times of slow cash flow. But far too many entrepreneurs simply "bury their head in the sand" regarding their debts, hoping that somehow on the back end they'll make enough money to pay it all back. And that can be disastrous for your business.

Financial statements are more than just a few piece of papers to give to lenders and investors. They are, in fact, an essential management tool for your business. If you're not already doing so, today is a good day to learn about Using Financial Statements As a Management Tool.