A Balance Sheet is a statement of liabilities, assets, and capital of an organization at any given point of time. It is a well-balanced sheet with the list of income and expenditure. Balance Sheets are used to calculate the net worth of business and thus measure a company’s financial position. For example, if a company’s liabilities are lesser than assets, that represents a high financial situation of the company. Balance sheets come handy while dealing with banks and other investors. Balance sheets are nonbypassables for any organization that wants to expand its reach.
Are you a person with self-employment? Then this personal balance sheet template helps you find out whether you have a negative net worth or it is on the positive side.
Professional Balance Sheet Templates can be your starting place, especially if you want to put together a financial plan. Estimate your net worth including all your properties and jewelry with these templates.
Business Balance Sheets work on basic equations such as ‘assets = liabilities+ owner’s equity’ and owner’s equity = assets – liabilities. Calculate your current assets such as cash and inventory using these business balance sheet templates.
A classified balance sheet, as the name implies, classifies the items into classes. The classified balance sheet templates help you calculate the current assets and non-current assets including property, plant, and equipment.
A pro forma balance sheet is for future purposes. These Pro forma balance sheet templates are used to project how the business will be managing its assets in the future. For example, a pro forma balance sheet can quickly show the projected relative amount of money tied up in receivables, inventory, and equipment.
Common Size Balance Sheets have an additional column that depicts the percentile of total assets, liabilities, and equity. This does the job of comparing the equity, liabilities, and assets of properties.
Comparative Balance Sheets compare two or more balance sheets side-by-side. These multiple sheets could be of the same company at variously given points. These templates help you do analysis about a particular company at various points.
The format of a vertical balance sheet comprises all the items in one single column. It begins with asset line items, followed by liability line items, and ends with shareholders’ equity line items.
Contrary to the classified balance sheet, an unclassified balance sheet is a crude way of presenting your total liabilities and total assets. These unclassified balance sheet templates help you line up at least long term liabilities and short term liabilities.
As we discussed in the previous paragraphs, the balance sheet works on a single equation: Assets = Liabilities + Owner’s Equity. Hence before starting, make sure that you are having all the three with you (remember that assets mean both tangible and intangible). Once you are ready, start with the date. You can also see Sheet Templates.
Calculate the retained earnings. In other words, retained earnings are the profits of a company in a particular period. To get current retained earnings, one needs to add the ending balance of retained earnings to the net income and deduct dividends paid to investors.After calculating the current retained earnings, you need to calculate the owner’s equity which consists of the capital invested and the total of profits and losses.As the last step, add the total liabilities and total owner’s equity figures. With this, you are done with the job.