Balance sheet

A balance sheet lists assets, liabilities and equity on one day. Assets are things the business owns, such as cash, equipment and money owed by customers. Liabilities are debts and bills. Equity is what is left for the owners. The two sides must balance.

The balance sheet shows financial strength at a glance. Lenders and buyers often ask for it. It also helps you spot problems, like growing debt or low cash. It works with the profit and loss statement, which covers a period instead of a single date.

Entries such as accounts receivable and accounts payable appear here. Peachtree VA's bookkeeping services provide monthly financial statements. See our bookkeeping page. Reviewing it each month, next to your other reports, helps you catch trouble while it is still small.