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The balance sheet is a very important financial statement that summarizes a company's assets (what it owns) and liabilities (what it owes). No balance sheet statement is complete (in my opinion) without an income statement to go along with it. The balance sheet informs company owners about the net worth of the company at a specific point in time.
These include the obligations to be paid within one year, including accounts payable, short-term loans, income taxes payable, wages, unearned revenue (e.g.
This is basically the amount left over when you subtract Total Liabilities from Total Assets.

Disclaimer: This balance sheet spreadsheet and the information on this page is for illustrative and educational purposes only. As a small business owner, I find the income statement to be more useful in the general operation of the business, but the balance sheet is still a critical accounting tool that provides a key piece of information. This is done by subtracting the total liabilities from the total assets to calculate the owner's equity, also known as shareholder's equity (for corporations) or simply the net worth. Common current assets includes cash (cash, coin, balances in checking and savings accounts), accounts receivable (amounts owed to your business by your customers usually within 10-60 days), inventory (goods for sale), and prepaid expenses (e.g. In includes the owner's investment(s) and retained earnings (the portion of the profits reinvested in the business).

You can also see how the company resources are distributed and compare the information with similar companies.

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