How To Prepare A Balance Sheet

A Balance Sheet is an overview of the financial state of your business at any given time period.  Your Balance Sheet can differ at any given time, day to day or month to month and so on.

The information on your Balance Sheet can be extracted from your company’s General Ledgers.

The General Ledger is a means to collect data related to you assets fixed and liabilities, revenues expense, gains and losses.  This information is then added to your Balance Sheet.  It is used if your company uses the double entry bookkeeping method of accounting.   The Balance Sheet includes assets, liabilities and equities.  Assets are the items your business owns, the liabilities are the items your business doesn’'t own and equities are the item stocks and owners equity.

Assets = Liabilities + Owner's Equity

The first thing you will need to prepare a balance sheet is a computer with a word pressing or a spread sheet program on it.

Second you will need to divide the worksheet into three parts with one section on the top and the other two sections below the top section,

Download Our Financial Statement E-book  that include sample;

Income Statements

Balance Sheet Statements

Cash Flow Statements

Balance Sheet Template 1

Sample Business Plan

Balance Sheet Template

For the Month Ended ______.

 

Right Side      

Current Assets

Fixed Assets

Other Assets

 

Left Side

Current Liabilities

 Long Term Liabilities  

Shareholders Equity

 

 

Balance Sheet Template 2

 

Sample Business Plan

Balance Sheet Template

For the Month Ended __________.

 

Assets

 

Current Assets                $_______

(Cash)

 

Petty Cash                       $_______

 

Accounts Receivable     $_______

 

Inventory                         $_______

 

Short Term Investments  $______

 

Prepaid Expenses           $_______

 

Long Term Investments  $______

 

Fixed Assets (Land)       $______

 

Buildings                           $_______

 

Improvements                 $_______

 

Equipment                         $_______

 

Furniture                           $_______

 

Automobile / Vehicle       $______

 

Other Assets

 

1.                                         $_______

 

2.                                         $_______

 

3.                                         $_______

 

4.                                         $_______

 

5.                                         $_______

 

6.                                         $_______

 

7.                                         $_______

 

8.                                         $_______

 

Liability

 

Current Liabilities            $_______

 

Accounts Payable               $_______

 

Notes Payable                     $_______

 

Interest                                 $_______

 

Payable                                 $_______

 

Taxes Payable                     $_______

 

Federal Income
Taxes                                     $_______

 

State Income Taxes                                     $_______

 

Self Employment Tax                                        $_______

 

Property
Tax                                         $_______
 

 Payroll Accrual                   $_______
 

Long Term Liabilities         $_______

 

Notes Payable                     $_______

 

Total Liabilities                   $_______
 

Net Worth
(Owner Equity)                    $_______

 

Proprietorship                      $_______

or

Partnership                          $_______

or

Corporation                          $_______

 

Capital Stock                        $_______

 

Surplus Paid In                    $_______

 

Retained Earnings               $_______

 

Total Net Worth                   $_______

Total Assets                 $_______

Total
Liabilities             $_______

Third in the top section add the company name the title of the “Balance Sheet” and also add the time period of the balance sheet.

Forth, in the asset section add all of you companies assets which should include items like, long term investment, fixed assets, equipment, current assets, and petty cash and so on.

Fifth, in the Liabilities section add all of your companies liabilities which should include items like, interest payable, notes payable, federal income taxes, state income taxes and so on.  Your equalities should be added in this section.

Sixth add all of the assets and also add all of the liabilities and equities.  This is your total assets and also your total liabilities.  If they are not equal add a line item called net profit.  Write that amount down on that line.  On the last line assets should equal liabilities and the equalities.

If your liabilities are less than your assets, you will have a net profit.  But on the other hand if your assets are less then your liabilities you have a net loss.

Prepare A Balance Sheet Help...

Balance Sheet Example
Your Balance Sheet Example is a quick view of the financial state of your business at a specific time period.

Balance Sheet Template
Your Balance Sheet Template is a printable Template that shows you the basics to doing a Balance Sheet for your business.

Sample Balance Sheet
A Sample Balance Sheet will help you write a Balance Sheet for your business. It will show you how to know the difference between Your companies Assets and its Liabilities.

Read A Balance Sheet
Find details about how to read a balance sheet.  Also find details about what is in a balance sheet and the three main sections in them and how you calculate them.

Balance Sheet Accounts
Locate information about using balance sheet accounts and how they can be very useful to running your business.  also find details about assets, liabilities and owner's equity.

Balance Sheet Analysis
Learn how to balance sheet analysis can help you with your business.  Also find information about assets, liabilities and owner's equity and how you can understand your business finances better.

Balance Sheet Definition
Understand how a balance sheet definition can help you to define you businesses finances.  Also learn how you will be able to understand a balance sheet better so that you can organize your business finances.

Prepare A Balance Sheet
Review details about what it takes to prepare a balance sheet for your business.  Also understand the steps preparing your balance sheet.  And how to understand the assets, liabilities and the owner's equities.