The purpose of a balance sheet is to show the reader a list of the assets, liabilities, and owner’s equity as of a specific date, usually at the end of a moth or a year. It is an itemized statement that lists the total assets (what you own) and the total liabilities (what you owed).  It’s important to note that Total Assets less Total Liabilities equals Equity; or Total Liabilities plus Equity equals Total Assets.

The following form should help you organize your balance sheet.  Before you begin, look over the chart of accounts to see what to include in your balance sheet.  You might be unnecessary to include all the accounts named in Chart of Accounts, only use the accounts that are applicable to your business.

NOTE:  In the table, the “Less Depreciation” values should be entered as positive figure, the formula for “Total Fixed Assets” will automatically deduct the amount.

CHART OF ACCOUNTS
____________________

A S S E T S

CURRENT ASSETS - cash and cash equivalents
- Cash - Checking
- Cash - Savings
- Cash - Payroll
- Petty Cash
- Accounts Receivable
- Allowance for Bad Debts
- Certificate of Deposit
- Prepaid Expenses
- Prepaid Insurance
- Prepaid Taxes
- Loans and Exchanges
- Inventory

FIXED ASSETS - tangible items (durable) and not liquidated easily
- Land
- Building
- Accumulated Depreciation-Building
- Building Improvements
- Accumulated Depreciation-Building Improvements
- Leasehold
- Leasehold Improvements
- Accumulated Depreciation-Leasehold Improvements
- Furniture and Fixtures
- Accumulated Depreciation-Furniture and Fixtures
- Vehicles
- Accumulated Depreciation-Vehicles
- Property, Plant and Equipment
- Accumulated Depreciation-Property, Plant and Equipment

OTHER ASSETS 
- Officers Loan Receivable
- Utility Deposits
- Goodwill
- Accumulated Amortization - Goodwill
- Organization Costs
- Accumulated Amortization - Organization Costs

L I A B I L I T I E S

CURRENT LIABILITIES - obligations that are due in current financial year
- Accounts Payable
- Employee Health Insurance Payable
- Sales Taxes Payable
- Federal W/H Taxes Payable
- FICA W/H Taxes Payable
- State W/H Taxes Payable
- Local W/H Taxes Payable
- Accrued Interest Payable
- Accrued Salaries/Bonuses Payable
- Other Accrued Expenses Payable
- Notes Payable
- Current maturity of long-term debt

EQUITY - CORPORATION - net worth of a corporation
- Common Stock
- Paid-in Capital
- Retained Earnings

EQUITY - PARTNERSHIP - net worth of a partnership
- Partners Capital
- Partners Drawing

EQUITY - SOLE PROPRIETORSHIP - net worth of a business solely owned
- Capital
- Drawing