Ainsworth Accountants: Accounts, Tax and Business Advisors.
What is a Balance Sheet ?
The Balance Sheet is a list of balances on a specific date, usually month end or year end. It is a snapshot of the assets and liabilities of the business, and the owners value in the business, called “equity”.
So what is a balance?
A balance is a value on a particular day, after a series of in and out transactions, for example:
• money in the bank
• the value of the stock (inventory)
• money owed to a business from customers
• money the business owes to suppliers
• the value of any high cost items like property, vehicles and machinery
• the amount of a loan left to pay
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