 |
|
|
|
|
|
|
Free Balance Sheet TemplateDownload a sample Balance Sheet for Microsoft Excel®
The balance sheet is a very important financial statement. By summarizing a company's assets (what it owns) and liabilities (what it owes), you can gain insight into the company's financial strength, see how its resources are distributed, and compare it with other similar companies. The balance sheet lets the owner(s) know how much they really own at a specific point in time, by subtracting the liabilities from the assets.
Disclaimer: This spreadsheet and the information on this page is for illustrative and educational purposes only. We do not guarantee the results or the applicability to your financial situation. You should seek the advice of qualified professionals regarding financial decisions.
Balance Sheet EssentialsThe Accounting Equation: Assets = Liabilities + Owner's Equity Current Assets: The term current in a balance sheet generally means "short-term" which is usually one year or less. Common current assets includes cash (cash, coin, balances in checking and savings accounts), accounts receivable (amounts owed to your business by your customers usually within 10-60 days), inventory (goods for sale), and prepaid expenses (e.g. insurance and rent). Long-Term Assets: These assets include long-term investments, cost of property and equipment (e.g. land, buildings, equipment, tools, furniture, computers, vehicles, etc.) offset by accumulated depreciation, intangible assets (e.g. patents, contracts, trademarks, copyrights, and goodwill), and other assets (like deferred income tax arising from the loss of value of property that cannot be reported as a tax deduction until the property is sold). Current Liabilities: These include the obligations to be paid within one year, including accounts payable, short-term loans, income taxes payable, wages, unearned revenue (e.g. service contracts), and the current portion of long-term debt (e.g. mortgage payments payable within 12 months). Long-Term Liabilities: These include long-term debt (e.g. notes, mortgages), capital lease obligations (e.g. leases structured as loans), and deferred income tax (e.g. the tax due on the increase in value of an investment security that isn't paid until the security is sold). Owner's Equity (or Stockholders' Equity for corporations): This is basically the amount left over when you subtract Total Liabilities from Total Assets. In includes the owner's investment(s) and retained earnings (the portion of the profits reinvested in the business). For corporations, there are usually more categories (see the references below). For more information, see the references below. References for Balance Sheet:
- Financial Accounting: Reporting and Analysis by M.A. Diamond, E. K. Slice, and J.D. Slice., 2000.
- Balance Sheet, Fixed Assets, Intangible Assets, Deferred Tax, Shareholders' Equity at wikipedia.org
|
||||
|
|
