Yes, small businesses can greatly benefit from having a balance sheet template. The balance sheet provides a snapshot of the company’s financial health at a specific point in time.
It helps with financial modeling, budgeting, and managing cash flow by informing stakeholders, owners, and leadership what the company owns (assets), what it owes (liabilities) and how much has been invested into the company (equity). The balance sheet is one of the three fundamental financial statements that every business needs.
Using a sample balance sheet template offers several advantages for small businesses:
Here’s how to do a balance sheet in Excel:
Step 1: Download balance sheet Excel template.
Step 2: Determine balance sheet date.
Step 3: Pull in trial balance report data for current and prior periods.
Step 4: Update account types.
Step 5: Verify balance sheet is in balance.
You can find more detailed instructions on how to use our balance sheet when you download the template.
The balance sheet is used internally and externally for different purposes. Internally, the company uses the balance sheet to understand whether the business is succeeding or struggling by analyzing the liquidity position of the company.
Externally, the balance sheet is a tool for investors, stakeholders and regulators to evaluate the financial position of the company, determine how the business was financed, and determine if the company is a smart investment.
The balance sheet follows the fundamental accounting equation: Assets = Liabilities + Equity.
Therefore, the typical information that can be found in a balance sheet includes:
Yes, download our balance sheet Excel template. Then in Google Sheets, follow these steps: