The balance sheet report in QuickBooks (or any other accounting software) provides an assessment of three critical financial metrics about your business:
- What you own
- What you owe
- What your business is worth
WHAT YOU OWN
You will see a recap of what you own in the "Assets" section of the balance sheet report. Broken down into subcategories like bank accounts, accounts receivable, other current assets and more, this section gives a quick overview of the balances in all of the asset accounts.
WHAT YOU OWE
While not nearly as fun as the things your business owns, you will see a recap of everything your business owes in the "Liabilites" section of the balance sheet report.
Broken down into areas such as: accounts payable, other current liabilities, credit cards and others, QuickBooks provides you with the information you need to know to track what you owe to others.
WHAT YOUR BUSINESS IS WORTH
Referred to as the "Equity" section in your balance sheet, QuickBooks calculates the value of your business quickly and easily.
Your equity = Total Assets - Total Liabilities, or what is left over for you once everyone else gets paid what they are owed.
ACCESSING THE BALANCE SHEET REPORT IN QUICKBOOKS
Click Reports > Company and Financial > Balance Sheet Standard to get a report that looks like this sample below:
Ideally, you'll want to run the balance sheet report at the end of each quarter to see how things look.
Need help making sense of it all? Contact me to get the help you need!
- Training videos on QuickBooks and bookkeeping topics
- The QuickBooks Profit and Loss Report
- The QuickBooks Profit and Loss Detail Report