Balance Sheet

The Balance Sheet provides a snapshot of your organization’s financial position at a specific point in time.

Purpose

The Balance Sheet answers: “What do we own, what do we owe, and what’s left over?”

It follows the fundamental accounting equation:

Assets = Liabilities + Equity

Accessing the Balance Sheet

1. Navigate to Reports → Balance Sheet
2. Select the “As of” date
3. The report generates automatically

Reading the Report

The Balance Sheet has three main sections:

Assets (What You Own)

Account	Amount
Current Assets
Cash	$500,000
Accounts Receivable	$150,000
Inventory	$75,000
Total Current Assets	$725,000
Non-Current Assets
Fixed Assets	$200,000
Less: Accumulated Depreciation	($40,000)
Total Non-Current Assets	$160,000
Total Assets	$885,000

Liabilities (What You Owe)

Account	Amount
Current Liabilities
Accounts Payable	$75,000
Accrued Expenses	$10,000
Total Current Liabilities	$85,000
Long-Term Liabilities
Notes Payable	$100,000
Total Long-Term Liabilities	$100,000
Total Liabilities	$185,000

Equity (Net Worth)

Account	Amount
Owner’s Capital	$400,000
Retained Earnings	$300,000
Total Equity	$700,000

Balance Check

Total Assets:                    $885,000
Total Liabilities + Equity:      $885,000  ✓

Best Practices

1. Generate monthly for management review
2. Compare periods to identify trends
3. Review before major decisions (loans, investments)
4. Provide to stakeholders quarterly