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.

Instructions

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:

• Assets: What a business owns.
• Liability: What a business owes.
• Equity: What percentage shareholders have (including retained earnings) in the business.

Step 3: First, you can review your company’s assets, which are divided into three categories on the Balance Sheet:

• Current Assets: including cash, inventory, accounts receivable, and investments.
• Fixed Assets: which refer to tangible assets, like furniture, property, and equipment.
• Other Assets: in this case, apply to deposit assets, personal expenses, and all other assets that don’t fit in anywhere else.

Step 4: Next in the Balance Sheet is Liabilities & Equities, which are divided into the following categories on the Balance Sheet:

• Current Liabilities: which include all monies owed by the company that are due within one year. These could include short-term debt, accounts payable, and other financial obligations that are due within one year of the date the debt was issued.
• Other Liabilities: like convertible loans and other loans.
• Equity: which is the amount of asset funds that were contributed by the owners or shareholders.

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.