Balance Sheet Template is a ready-to-use business statement template in Excel that helps you to gain insights into the financial strengths of the company. Balance sheet is prepared at the end of the period to understand the position of the company or business [at the date].
This free excel template can be relevant to Schedule III of Companies Act as well. Our visitors from India location can also use this template.
Usually, the businesses prepare a Balance Sheet quarterly, half-yearly, or yearly.
Balance Sheet is a financial statement of a company. The main components that it shows includes, the assets, liabilities, equity capital, total debt, etc. at a given point of time.
In simple terms, a balance sheet shows –
- What your business owns. (Assets)
- What it owes. (Liabilities)
- What money is left for the owner? (Owner’s Equity)
About Balance sheet excel template
This balance sheet excel template has 3 sections:
- Asset,
- Liabilities, and
- Owner’s Equity.
Assets are the resources or things that your company owns.
Liabilities on are debts or obligations to be paid by a company. It is the amount that the company owes to its creditors. Also, Liabilities include all payments to be made by your company.
In simple terms, the Owner’s Equity is the claim on the assets of a business. Those Assets which remain after deducting liabilities.
Owner’s Equity is a part of Liabilities and hence falls under the liabilities section.
Assets = Liabilities + Equity
Financial Ratios like the ones mentioned below are automatically computed in this excel sheet –
- Debt Ratio.
- Current Ratio.
- Working Capital.
- Assets to Equity Ratio.
- Debt to Equity Ratio.
Advantages of A Balance Sheet
As the name states, it keeps business things in balance. As per the accounting rule, the total assets must be equal to liabilities and equity. Hence, if they don’t balance there is a mistake in the accounting process.
A balance sheet helps in calculating and analyzing financial ratios. Moreover, these ratios are helpful in comparing your competitors as well as your company’s financial strengths.
A balance sheet is also helpful in getting credit from financial institutes. Furthermore, seeing a balance sheet, n investor can make a decision for investment.
Key points while preparing Balance Sheet
Before you start preparing balance sheet, please understand the following important process of preparing balance sheet –
- Determine the reporting date and period
- Identification of existing assets
- Identification of existing liabilities
- Computation of Shareholder’s equity
- Balance between equity, liability and assets [formula]
A strong balance sheet will have some key traits like strong and positive cashflow, capital structure, income generating assets and well planned working capital.
You can start using this template by inserting the following items –
- Cash on hand: All Cash including cash in hand + money in the bank.
- Accounts Receivable: Receivable includes the total of your outstanding invoices. This does not include any invoices that are still in “draft” status. Only include the invoices shared with the customers.
- Stock Inventory: Stock Inventory that your company holds for the ultimate purpose of resale. Sold items will not include in the Inventory.
- Machinery or Equipment: Any Equipment/tangible items for business usage. These equipment will not be for reselling.
- Reimbursable expenses: Any reimbursable expenses that are already paid and will be reimbursed by another party.
- Taxes Payable: Unpaid Taxes that you owe the government.
- Current Loans Payable: Loans from banks or investment from the investors that you have not paid back yet.
- Long Term Loans Payable: The Long-term loans that are yet to be paid.
- Owner’s Capital: Capital is the owner’s investment in the company. You need to add the net income earned by the company. Whereas deduct any withdrawals by the owner from it.
- Retained earnings: Net income retained by the corporation and distributed to its owners as dividends.
Download and Use Balance Sheet free Excel template
To use this free Balance Sheet free excel template, you should have Microsoft Office/ Microsoft Excel installed in your system.
After installing Excel or Spreadsheet, download the zip file of this template, extract the template using WinRAR or 7Zip decompressing software. Once extracted, you can open the file using Excel and start entering data or customizing the template.
