Accounting and finance is a prime and most important function of any business organization. No business can survive without a proper accounting process in place.
Accounting is the process of recording of various financial and monetary transactions in an organization. It involves storage, retrieval, sorting, summarization and presentation of financial information through the preparation of various kinds of accounting reports and statements. Accounting is a specialized field where accountants are given education and knowledge to carry out the above mentioned tasks in an organization. One of the key functions of accounting is presentation of financial statements like balance sheet.
What is a balance sheet?
This is the most important statement prepared in the accounting process. It helps provide a summary of liabilities, the company’s assets, owner’s equity at a specific stage in time. it helps investors and company managers to analyze the current situation of the company’s financial position by weighing out the three basic segments. As per the Generally Accepted Accounting Principles GAAP a balance sheet is
- The total sum of asset equal to
- The total sum of liabilities and owner’s equity.
This is a very important component of any company and even small startup companies should make their balance sheet on regular financial intervals. You can make the balance sheet with the help of a balance sheet template. The balance sheet template has all the segments and you only need to add the figures that are corresponding to the various headings.
Before you download this Balance Sheet Template, have a look at the screenshot below to see how this template has been laid out.
Download this Sample Balance Sheet template