The primary purpose of the balance sheet is to:

The primary purpose of the balance sheet is to provide a snapshot of a company's financial condition at a specific point in time. This financial statement conveys the value of a company's assets, liabilities, and equity, allowing stakeholders to assess the company's financial stability and liquidity. By presenting this information as of a specific date, such as the end of a fiscal period, the balance sheet enables stakeholders to evaluate the resources owned by the company and the obligations it owes to creditors.

This snapshot is crucial for various parties, including investors, creditors, and management, as it informs them about how well the company is positioned financially to meet short-term obligations and fund growth opportunities. While tracking expenses, analyzing profitability, and estimating future funding needs are important aspects of financial analysis, those functions are typically associated with other financial statements like the income statement and the cash flow statement, rather than the balance sheet itself.