Free balance sheet template

A balance sheet is a financial document that helps provide a snapshot of a business’s finances and gives a view of the business's assets, liabilities, and owner’s equity. The main purpose of a balance sheet is to see if a business can cover its debts or whether it has gained or lost value over time. Overall, it’s a great way to assess a business’s financial health, along with the profit and loss statement and cash flow statement.

The balance sheet formula is Assets = liabilities + Owner’s equity. The balance sheet should equal the sum of the liabilities plus the owner's equity, meaning it should balance. If there are discrepancies, it may be due to incorrect or missing data in financial records.

We’ve put together this handy balance sheet template to help you follow a simple balance sheet format. This balance sheet sample comes with a how-to guide to help you accurately use a balance sheet. In short, you’ll note down what the business owns under assets and what it owes under liabilities. Then you can compare the two to see where the business stands.

When using this balance sheet example, it's important that all the data be accurate. Maintaining financial data integrity involves establishing clear policies and procedures for data collection, processing, reporting, and auditing. Recording all transactions regularly, including petty cash, inventory, and supplies, will help you stay on top of your finances. In cases of imbalance, we recommend you double-check the data and calculations.

Balance sheets are tricky. Missing off an asset or liability can really throw out your results. It’s a good idea to connect with an accountant or bookkeeper when filling out a template like this. You can find one in our directory.