Balance Sheet Template

The balance sheet template is one of the most important financial statements of the business. Basically, this is the statement of the assets and liabilities of a business on a certain day. The assets side includes list-wise details of all the current and long-term assets. Whereas, on the other hand, all current and long-term liabilities are mentioned along with details about retained earnings. Moreover, the final values shown on a balance sheet are then used for calculating different financial ratios and making business decisions. Moving further, a balance sheet is often prepared every six months or a year, which primarily depends on the size and nature of the business. Similarly, the title of this sheet includes the crucial information, like business name, name of this sheet (balance sheet), time period, and the date when it was prepared. Having a balance sheet template can make it easier to create a professional balance sheet.

Importance of Balance Sheet:

A balance sheet template is a financial statement that summarizes the assets, liabilities, and shareholders’ equity at a particular point in time. Generally, it provides the balance of income and expenditure over the foregoing period. Moreover, it not only helps in determining the financial position of the business, but also aids in calculating various ratios that are helpful for better management of a business. The accurate format of a balance sheet often helps in determining the amount of capital employed in a business. Keeping in view the significance of a balance sheet, we have presented here a balance sheet example. You can use this example to create a professional-looking financial statement for your business.