Balance sheet template is one of the most important financial statements of the business. This is the statement of the assets and liabilities of a business. All assets are mentioned on one side of the statement and liabilities on the other. Results shown in this statement are then used for calculating different financial ratios and making business decisions. The assets side of the balance sheet includes current and fixed assets and the liabilities side includes all long term and short term liabilities along with owners equity. A balance sheet may be prepared after six months or a year depending on the size of transactions in a business. Title of this sheet includes business name, balance sheet and the period for which it is to be prepared. Having a balance sheet template can make it easier to draft a professional balance sheet.
Importance of Balance Sheet Template
A balance sheet is a financial statement that summarizes the assets, liabilities, and shareholders equity at a particular point in time. It provides the balance of income and expenditure over the foregoing period. It not only helps in determining the financial position of the business, but also aids in calculating various ratios that helps in better management of a business. Moreover, it also 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.
