The equity is money or capital that entrepreneur put into their business. The right prediction of entrepreneur's turnover is extremely important for determining the viability of entrepreneur's business. Based on entrepreneur's investment budget and their financing plan, they can draft their opening balance sheet. A balance sheet is a ‘snapshot’ and contains an overview of the financial situation at a given moment. A balance sheet provides insight into the expected profits. Apart from the opening balance sheet during the start-up of entrepreneur's business, they can calculate the balance at any moment. Starting entrepreneurs with a brilliant idea, sometimes tend to be over optimistic in their enthusiasm. They overestimate the turnover of their fantastic product or service and underestimate the expected costs. To stimulate entrepreneurship, the Tax Authorities offers a number of possible deductions for a sole proprietorship or a general partnership.