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Accountants in Preston

What is a Balance Sheet ?

The Balance Sheet is a list of balances on a specific date, usually month end or year end.  It is a snapshot of the assets and liabilities of the business, and the owners value in the business, called “equity”.
 

So what is a balance?

A balance is a value on a particular day, for example:

•    money in the bank
•    the value of the stock
•    money owed to a business from customers
•    money the business owes to suppliers
•    the value of any high cost items like property, vehicles and machinery
•    the amount of a loan left to pay

 

A typical small business Balance Sheet