To create a balance sheet template, list three groups titled Assets, Liabilities and Equity, and then place all associated account balances in each group, reports Jessica Jones for the Houston Chronicle. The basic equation for a balance sheet is the sum of the assets is equal to the sum of the liabilities and equity combined, explains Rochelle Bailis for Intuit QuickBooks.Continue Reading
Common balance sheet asset accounts include cash, equipment, property and any other materials, notes Jones. Those looking to create a balance sheet should keep all necessary documentation, including receipts, related to business purchases. Liability accounts include business loans, employee salaries and any unpaid business accounts. The equity account represents any ownership in the company, whether it is through stock or capital contribution.
A basic balance sheet lists all asset items in the first column, according to Bailis. Liability and equity accounts are both listed in the next column. Balance sheet preparers can provide current and expected amounts for each account. The last row in the template contains the asset total in the first column and the liability and equity account totals in the second column. The balance sheet can then assist with financial analysis, as comparisons between amounts helps people interpret company growth, expenses and the ability to pay off debt.Learn more about Accounting