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For what is a blank balance sheet template used?

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Quick Answer

A blank balance sheet template is used to prepare and calculate the financial health of a business every month, quarter or other time period, notes Intuit. A balance sheet helps determine the equilibrium point between a company's assets and liabilities.

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Full Answer

The basic formula of a balance sheet equates assets to liabilities and equity, states Intuit. Preparers of a balance sheet template calculate assets and group them accordingly. Common asset items include cash, accounts receivable, inventory and pre-paid insurance. Preparers of a balance sheet can list assets according to their liquidity, or the ability at which the assets can be converted to cash. Specific asset groups on a balance sheet include current assets and fixed assets.

Common liability items to list on a blank balance sheet template include accounts payable, taxes owed, unearned revenue, and wages and payroll, notes Intuit. Finally, the equity section of a balance sheet contains items such as capital stock and dividends paid. After constructed, a balance sheet template contains columns for assets, liabilities, and equity values, both current and projected.

Management, lenders and investors use balance sheets to assess an organization's financial status, states the Houston Chronicle. Publicly traded companies include a yearly balance sheet in annual reports. Balance sheets are valuable when used in conjunction with other metrics, such as sales and debt.

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