Balance Sheet Template

A balance sheet template is a financial statement which is prepared and published by the company as a record of a specific period to show the current financial position and exact market value of its assets and liabilities. It allows year-over-year comparison of retained earnings and performance of assets, including accumulated depreciation. Generally, it is a financial statement which is used to show what the assets are as well as the liabilities of the business for a stated period of time. Moreover, assets and liabilities are then categorized into different sections like current assets, fixed assets, floating assets, current liabilities or short term liabilities, long term liabilities, shareholder’s equity or retain earnings. That is the reason why a proper format is used for drafting a balance sheet with the business name, balance sheet and time period written on the top of the page. A balance sheet template helps you with identifying the potential risk elements as well as opportunities at the same time as making effective plans and preventing those risks for betterment of your business.

Advantages of a Balance Sheet:

A balance sheet template is a financial document that helps the company to run a business successfully. This sheet helps you with making informed decisions by providing the exact information about how much capital is left after paying current and long-term liabilities. Moreover, it further clarifies how much capital is required to meet upcoming working capital requirements. A balance sheet helps in checking how a company is doing overall and how smoothly every obstacle is being handled. This also helps in recognizing the shortcomings and taking appropriate steps in completing them. A balance sheet provides countless advantages to stakeholders and investors in checking overall business potential, its weaknesses, and strengths to cope with their competitors. Moving further, this format makes sure a proper budget is planned for making transactions, and also helps in this procedure if the financial situation of a company is poor. Overall, it’s an effective way of running a successful business without having a fear of failure.

Importance of Balance Sheet:

A balance sheet is a professional document which is usually prepared by a business as a record for showing the exact value of assets and liabilities of the business. Basically, it is prepared by the financial department of a business with the intention of categorizing the different sections of their business usually related to the assets and liabilities. It further depicts how a company can offset their short-term liabilities with their current assets and working capital. In other words, the balance sheet of a company is a statement which has equal totals of both assets and liabilities of the business according to this formula:

Assets = Liabilities + Shareholder’s Equity

Details of Balance Sheet Template:

Being a crucial part of the financial report, a balance sheet covers different financial aspects of a company for a specific period of time. Apart from this, if you want to prepare a balance sheet, then you should have sufficient knowledge about financial terms and the strength of the company. Moreover, the person who is responsible for preparing this statement should also understand the accounting system which the company is following. This statement holds enormous importance not only in the eyes of stakeholders but also for the outer world. There are certain firms and professionals who conduct different analysis based on the data provided on this balance sheet. This way, they can abstract the true picture of the financial position of the company which further helps them to decide whether to invest their funds or not.

Quality of Balance Sheet Template:

As far as the quality of balance sheet templates is concerned, we have tried to prepare and select the right template for you. It is our agenda to include only those templates that meet the requirements of our users. Nevertheless, our users are free to include their data in these formats. They can further make changes or amendments to these formats according to their needs. The balance sheet template is effectively crucial for all those users who wish to prepare a simple yet accurate balance sheet for their businesses. Please find below the snapshots of our selected free formats for the balance sheet along with a simple and easy download link.