A balance sheet also known as the statement of financial position, is one of the major financial statements used by businessmen and accountants. The major categories of balance sheet are assets, liabilities and owner’s equity. It is a statement that summarizes a company’s assets, liabilities and shareholders’ equity over a specific point in time,usually at the end of fiscal year. The balance sheet is made after making an income statement. Thus,we can say that the balance sheet is always followed by the income statement.
We have provided balance sheet template in two different formats, account form and report form. The account form divided into two columns displays assets on the left column while liabilities and owner’s equity on the right column. These are like debits and credits. The debit accounts are displayed on the left and credit accounts are on the right. The report form, on the other hand, only has one column. This form is very common and used by most of the companies. Here assets are always present first followed by liabilities and equity. The balance sheet template enables you customizing the balance of income and expenses of your company over the foregoing year.
Moreover,The balance sheet is customized by subtracting the total liabilities from the total assets to calculate the owner’s equity. The balance sheet template notifies company owners about the net valuation of the company at a particular point in time. It helps the owners and managers to determine their strengths and weaknesses, and develop business strategies accordingly moving forward. Further,the amount of total assets should always be equal to the total amount of equities, otherwise,the balance sheet would be considered as incomplete and won’t be able to issue. Try out our free balance sheet templates for your further knowledge.
Here Are Balance Sheet Templates
