In every business, financial reports are generated for internal and external reasons. These financial reports include an income statement, a cash flow statement, an equity statement and a balance sheet. If you are a starting business, you must take note of these financial reports, most especially a balance sheet that brings essential information on the performance of your business over a given fiscal period.
A startup balance sheet features a format that you can choose to follow when making one for your business. The following balance sheet template samples can be your reference to make the proper format for the startup balance sheet.
Personal Balance Sheet Template
Free Balance Sheet
Balance Sheet for a Small Business
Sample Balance Sheet
What Is a Balance Sheet?
A balance sheet, otherwise known as the statement of financial condition, is a financial report generated at the end of a set accounting period which shows the financial performance of your business. Information on income and expense sheets shown on the sample expense sheet templates and other financial reports are consolidated and summarized into one report which is the balance sheet.
Essential Elements in a Balance Sheet
There are only three essential elements seen on any balance sheet with information coming from different sheet reports like the example project sheet template on this website. Here are the balance sheet elements aforementioned, as follows:
- Assets – This section of the balance sheet identifies the monetary securities and properties the company owns over the accounting period. They can be divided into current, tangible, and intangible assets.
- Liabilities – This pertains to the obligation of the company to other businesses like banks, suppliers,a and lenders which is set to be paid following the respective payment terms and conditions of each liability.
- Owner’s Equity – This contains the initial investment made by the stockholders of the company and the return of investment earned by the company in the form of profits generated within the accounting period.
Balance Sheet Ratios
Size: 16 KB
Common Size Balance
Preparing a Startup Balance Sheet
For a starting business, it is important to know how to devise a balance sheet that is acceptable and accurate. The following are the guidelines you can follow in preparing a startup balance sheet:
- Understand the accounting equation. Firstly, it is essential to know how the accounting equation works before making the balance sheet. The equation being defined is the addition of assets and liabilities equals the total owner’s equity of the business.
- To illustrate: Assets + Liabilities = Owner’s Equity.
- Incorporate the Assets and the Liabilities. List down the assets at the start of the balance sheet, starting with the quick assets until the tangible ones. Data sheet templates provide information included on the assets section. After listing the assets and their corresponding amounts and totals, you have to enumerate the obligations you have on the liabilities section along with their amounts and totals and compute the overall total.
- Compute for the Owner’s equity. Add the profits to your initial capital and deduct your expenses to get the total balance of your investment.
Take note that the sum of your company’s assets and liabilities must be equal to the computed balance of your equity. This will make you see if you had a gain or a loss on your investment as defined by the assets, liabilities and equity of your business.