Balance Sheet Example

Small Business Accounting News Aug 2011

Basic Balance Sheet Example

Accounting Balance Sheet Last month we talked about creating an internal income statement to analyze our financial data.

This month we will discuss the importance of an accounting balance sheet and look at a basic balance sheet example.

An accounting balance sheet is a portrait of your business at a point in time. It shows what your business owns and what it owes. It is usually prepared at the end of the month, quarter, or year.

It can be a very valuable tool in your financial business decisions.

See a basic balance sheet example and what an accounting balance sheet consist of.

If you are using a double entry accounting software, a balance sheet is very easy to create. I also like to run a comparison balance sheet and compare my current accounting balance sheet with a previous period.

If you are using a single entry accounting system such as the free spreadsheets offered on this site, a balance sheet is a little more difficult to create. See this back issue on basic bookkeeping.

You will need to gather your assets and liabilities information and find a good free balance sheet template online. I can recommend a few. If you want a balance sheet template that you can compare this year to a prior year … there is a nice balance sheet template on Practical spreadsheets.

I like this one because you can modify it to suit your needs. If you want one that includes some common financial ratios, there is nice balance sheet on Vertex42 site. (Explanation of financial ratios)

The only thing I don’t like about this one is you cannot delete any rows or columns without buying his unlocked version. You can modify the categories though.

Vertex42 is also loaded with some really nice free Excel and Word templates, so you might want to bookmark his site :-)

Want to learn more about financial ratios? See the AccountingCoach Pro site.

Click here to view more details

Free Mileage Log

In my last issue, I mentioned that the IRS here in the United States raised the mileage rate to .55.5 cents per mile.

I received several request for a mileage log after that issue went out, so below is are links to a couple of free mileage logs. Also, please note that for all of you that claim business miles on your taxes or fill out mileage logs to turn in for reimbursement from your employer, there is specific information that must be included in your mileage log.

Mileage Log Sheet: What Must Be Included on It

... and just for Small Business Accounting News subscribers and the people they want to share it with (see bottom of page), I have built a spreadsheet that will automatically figure your miles and totals:

Basic Accounting Help's Spreadsheet Tip

For those of you using the small business accounting spreadsheets or any Excel spreadsheet, here is a tip for making your heading or rows appear on every printed page:

Excel 97-2003 Instructions:

  • From the menu, select File then Page Setup.
  • In the Page Setup dialog, there are four tabs across the top. Select the Sheet tab. In the field for Rows to repeat at top:, enter 1:1
  • This will cause row 1 to appear at the top of each printed page.

Excel 2007 Instructions:

  • On the ribbon, click on the Page Layout tab, then on the Print Titles button in the Page Setup group.
  • In the Page Setup dialog box that pops up, click on that little box at the end of the Rows to repeat at top text box.
  • On your spreadsheet, highlight which rows you want to print on every page and then hit Enter.
  • The Page Setup dialog box will pop back up with desired rows in text box.
  • Click OK.

I have not used Excel 2010, but I did find instructions for doing this task on this page: http://office.microsoft.com/en-us/excel-help/print-row-and-column-headings-or-labels-on-every-page-HP005201811.aspx

Estimated Tax Tip

For those individuals here in the United States who send in estimated tax payments, your third quarter payment will be due by the 15th of next month.

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