Balance sheet template

The balance sheet is vital to a business owner. It deals with the capital (all the money) invested in the business at one particular point in time, usually the last day of the financial year.

 It is made up of two lists – one showing the value of all the possessions (assets) in the business, and the other detailing the associated debts (liabilities). The owner’s investment or stake in the business is called the net worth (or net capital or owner equity). Net worth is the amount left if all the assets are sold and all debts are repaid at the balance sheet values.  When compared over multiple years, it can give an indication of the financial status of a business. A stable business will see an increase in net worth year on year.