Of the Big Three Financial Statements, the balance sheet is the only one to offer a comprehensive view of your company’s overall financial standing at a given time. These statements detail your company’s assets, liabilities, and owner’s equity at a specific point in time. It’s particularly useful in gaining understanding and insight into what is owed versus what is owned.
With inDinero, you can quickly discern your company’s financial health with real-time data compiled in your Balance Sheet.
For example, Jane Smith at Lyon’s Den is looking to purchase new equipment for her business and needs a quick understanding of what is already owned and any outstanding invoices to determine if this is the right time for a major purchase.
Step 1: On the left navigation, hover over Reports and click Balance Sheet.
Step 2: Adjust the Period and Date Range, in the top panel, to focus on a particular time frame. Here, Jane adjusts the Period to Quarterly and the Date Range to Last quarter.
Click Update to see the changes reflected on the Balance Sheet.
Every Balance Sheet is divided into three categories:
Step 3: First, you can review your company’s assets, which are divided into three categories on the Balance Sheet:
Step 4: Next in the Balance Sheet is Liabilities & Equities, which are divided into the following categories on the Balance Sheet:
At the bottom of the balance sheet, you will see the net difference between the assets and liabilities, which is always zero on a correctly prepared balance sheet.