The balance sheet is a report that shows the company’s assets, liabilities and shareholders equity at any point in time. This report shows a snapshot of the company’s net worth, meaning who they owe, who owes them and what is invested in the company. The balance sheet is presented in two sections to express the following equation:
Assets = Liabilities + Owner’s Equity
The first section of the report presents all the companys assets. The second sections presents all of the liabilities and owner’s equity. This report should be balanced at the end, like the equation. The amount of assets that a company possess should equal the amount of liabilities and owners equity.
Assets include all of the cash, property and other items that can be converted to cash. The assets section of the balance sheet is split into two categories, current and noncurrent assets.
Liabilities include any debts or obligations that the company owes. This section of the balance sheet involves two categories: current and long-term liabilities.
Current Liabilities are classified as debt that is expected to be paid with current assets.
This section of the balance sheet presents the amount of owners investment in the company.
Owners Equity includes the following:
1.Login to QBO
2.Select "Reports" tab on the left navigation bar.
3.Select "Balance Sheet"
4.Select a time period
5.Click "Run Report"
This report can be customized to your specific needs by using the “Customize” button in the upper right section of the screen.
Contact us at Exigo if you need help customizing your reports!