What is a Balance Sheet Report?
A Balance Sheet is a snapshot of your business’ financial position on a given day, usually calculated at the end of the quarter or year. Balance Sheets are also useful in summarizing your business’ assets, liabilities and owner’s equity (also known as shareholders’ equity).
The way your finances balance is as follows: Assets = Liabilities + Owner’s Equity. When everything balances, all your finances have been accounted for.
Access the Balance Sheet
To access your Balance Sheet, use these steps:
- Click on the Accounting section
- Select Balance Sheet under Accounting Reports.
To adjust your view of the Balance Sheet Report, click on Filters under Settings. From there, you can change:
- Reset all - Click on this link to restore the filters back to the default settings
- Balance Date - Choose from Custom, Today, End of Last Month, or End of Last Quarter (note that Jan 1, 2018 is the earliest date we can retrieve data from currently) - if you’ve changed your Fiscal Year End date, you can also choose from the extra options
- Compare Dates - Check this box off and ensure you have a Start Date and End Date to compare with
- Currency - Toggle between multiple currencies
Clicking More Actions in the top right will give you the option to Export for Excel, or Print your Report. The file will also have a drilled down version for more details.
An asset is anything tangible or intangible that your business owns or controls and produces value in some way. Assets can include anything like:
- Accounts Receivable - Any outstanding invoices and payments
- Equipment - Any tangible items of value that are business-related purchases
- Inventory - Goods and materials that your business holds for purpose of resale (doesn’t count any items you’ve sold, and Inventory Tracking is not reflected here)
- Petty Cash - Any funds your business has direct access to (includes cash and funds in bank accounts)
- Reimbursable Expenses - Any expenses purchased that will be reimbursed by another party
Liabilities are funds that your business owes. Liabilities can include anything like:
- Accounts Payable - Any money that you owe for reasons other than a loan (like an unpaid invoice or bill)
- Current Loans Payable - The total value of any loans that you haven’t paid back yet
- Customer Credit - Any available credit remaining for any of your clients
- Credit Cards - The amount of your business’ unpaid credit card debt
- Taxes Payable - Taxes that you owe the government
- Unearned Revenue - Amount of prepaid revenue, like deposits
Known as Owner’s Equity or Shareholders’ Equity, this is what you put in or take out of a business, and represents assets that remain after deducting liabilities. Equity can include anything like:
- Owner’s Equity - Amount invested into the business by the owner
- Common Stock - Value of the business’ stock
- Retained Earnings - Income retained by the business rather than distributed to the owner(s) as dividends
Why is my Balance Sheet not balancing?
In other words, Assets ≠ Liabilities + Owner’s Equity.
- Double check your numbers and make sure they are accurate
- Use the other reports like the Trial Balance Report and General Ledger Report to identify discrepancies
Why does my Net Income on the Balance Sheet not match the Net Profit on my Profit & Loss report or Trial Balance?
- Profit & Loss or Trial Balance - Includes all Income and Expenses during the Date Range
- Balance Sheet - Includes all accumulated revenue and Expenses from prior periods, so the books never close
It is recommended to use the Compare Dates in the Filters on the Balance Sheet to find the Net Income for the period that matches your Profit & Loss Report or Trial Balance instead.
How can I reflect my fiscal year in my reports?
If you need to adjust any of your reports to reflect a particular year, or a year end, click on the filter icon next to any report title to adjust the Date Range. For example, see the steps in the Profit & Loss Report here.
How do I view balances in my Accounts?
The Balance Sheet shows balances for Parent Accounts only. To view Account balances, you can use the Chart of Accounts instead.