How to Create a Balance Sheet: A Comprehensive Guide
A balance sheet is one of the most often used financial statements that businesses rely on to measure their financial situation. It presents a snapshot of what a company\'s finances look like at a certain point in time, listing its assets, liabilities, and equity. For business owners, accountants, and investors, learning how to make a balance sheet is, therefore, important. To help you follow it step-by-step, here\'s how to make a balance sheet. A balance sheet follows the basic accounting equation: Assets = Liabilities + Shareholders\' Equity Where Assets represent what the company owns. Liabilities represent what the company owes. Equity is the owners\' claim after all liabilities have been settled (also called net worth).