Balance Sheet

A Balance Sheet is a fundamental financial statement that provides a snapshot of a company's financial position at a specific point in time. It is a critical tool for both internal management and external stakeholders, such as investors and creditors, to assess the financial health and stability of a business.

How to check Balance Sheet Report.

1. Go to the Reports menu and click on Balance Sheet.
2. The Balance Sheet Dashboard will open. You can check a specific month's data by selecting the date range located at the top right of the dashboard.

Components of a Balance Sheet:

A Balance Sheet is divided into three main sections:

1. Assets -These are resources owned by the company that are expected to provide future economic benefits. Assets are typically categorized into:
   • Current Assets -Cash and other assets that are expected to be converted into cash or used up within one year, such as inventory, accounts receivable, and short-term investments.
   • Non-Current Assets -Long-term investments and property, plant, and equipment (PP&E), including intangible assets like patents and goodwill.
2. Liabilities -These are obligations the company owes to outside parties. Liabilities are also divided into:
   • Current Liabilities -Debts or obligations that are due within one year, such as accounts payable, short-term loans, and other accrued expenses.
   • Non-Current Liabilities -Long-term debts and other obligations that are due beyond one year, including bonds payable and long-term leases.
3. Equity -This represents the owners' residual interest in the assets of the company after deducting liabilities. Equity includes:
   • Share Capital -Funds raised by issuing shares.
   • Retained Earnings - Profits that have been reinvested in the business rather than distributed to shareholders.
   • Other Comprehensive Income - Items not included in the net income, such as unrealized gains or losses on investments.