Create a financial statement with this ready-to-print Balance Sheet template. Organize your company's assets and liabilities with row hierarchies and use hierarchy formulas to automatically calculate subtotals and totals.
A balance sheet is one of the three essential financial statements that let you evaluate a business, along with the income statement and cash flow statement.
The income statement shows you how much money you're bringing in, the cash flow statement shows you how much actual cash money you have on hand, and the balance sheet template lets you tally up everything your business actually has. This is especially useful for people starting their own venture who find that the balance sheet format provides the information they most need to know.
Any good balance sheet template needs to cover three things: Assets, Liabilities, and Equity.
A) Assets - aka "Stuff you have"
Anything of value that your business has. These are further broken down by how easy they are to convert to cash.
- Current assets are things you could easily convert to cash within a year. Obviously cash would be very easy, but this also includes accounts receivable (cash people owe you), investments, inventory that you can sell, and so forth.
- Fixed assets like property and equipment would take longer to convert to cash, but could eventually be sold.
- Intangible assets like goodwill and reputation may seem weird to list in a balance sheet format, but capitalism is all about commodifying everything.
B) Liabilities - aka "Stuff you owe"
Your debts. Like assets, the balance sheet form has separate categories for current liabilities and long-term liabilities, depending on how soon you need to pay these debts.
C) Equity - The net value of the company.
It's as easy as A minus B. If your equity doesn't equal your assets minus your liabilities, your numbers are out of balance. A balance sheet template will help you realize that sooner rather than later.