Balance sheet

The balance sheet, or the statement of financial position, is a report which displays a company's assets, liabilities and equity. Its purpose is to give users an idea of the company's finances as of a specific point in time. It can be found under Reports > Accounts > Balance sheet.

It is a cumulative report, meaning it can only be filtered up to a specific date. The results will be calculated based on all entries posted to the balance sheet codes from the beginning of time up until the specified date.

By default, the balance sheet's date will default to today's date. 

The accounting equation

The accounting equation states:

Assets = Liabilities + Equity

The balance sheet adheres to this equation - it must always hold true. If there is a discrepancy, it is likely that there exists one or more imbalanced journals which should be investigated. Read more about investigating imbalanced journals using the trial balance here. 

Read more about the accounting equation here.

Balance sheet format

The balance sheet format is fixed and can't be amended. To manipulate the report it can exported into a spreadsheet.

The format differs between US and UK accounts.

US balance sheet UK balance sheet
  • Current assets
  • Fixed assets
  • Other assets
  • Total assets
    (= Current assets + fixed assets + other assets)

 

  • Current liabilities
  • Long term liabilities
  • Other liabilities
  • Total liabilities
    (= Current liabilities + long term liabilities + other liabilities)

 

  • Total equity
  • Balancing figure
    (= Total liabilities + equity)

"Total assets" must equal "Total liabilities + equity" 

  • Fixed assets
  • Current assets
  • Total assets
    (= Fixed assets + current assets)

 

  • Current liabilities

 

  • Working capital
    (= Current assets - current liabilities)
  • Capital employed
    (= Total assets - current liabilities)

 

  • Long term liabilities
  • Balancing figure
    (= Total assets - total liabilities)

 

  • Total capital and reserves

"Total assets - total liabilities" must equal "Total capital and reserves"

Net income (profit and loss balance)

At the bottom of the balance sheet, under the Equity or Capital and reserves heading, is a line titled Net income or Profit and loss balance. This displays a figure which cannot be drilled into.

This figure represents the balance of all entries to the income statement codes.

On completing the year end process, this figure should drop to zero and the balance should be rolled into the 3200 Retained earnings (Profit and loss) account.

Filtering the balance sheet

The balance sheet only has a single date filter:

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It can be filtered by tax date or created date.

  • Created date (date entered) is the date the journal was physically created, whether it was manually entered or created off the back of an action such as invoicing or entering a payment.
  • Tax date (transaction date) is the effective date of the journal. This is when the journal has an accounting effect. The general ledger always shows journals listed with their posted date.

For example, an order might be invoiced on the 17th of the month, but the tax date of the invoice is the 2nd of the month. You can see the created and tax date within a journal:

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Exporting the balance sheet

The balance sheet can be exported in different formats:

  • Excel 95-2000
  • PDF portrait
  • PDF landscape
  • CSV (background task)

The export will extract only what is shown on the screen, respecting all filters.

How to export the balance sheet

  1. Go to Accounting > Balance sheet.
  2. Apply the desired filters.
  3. Click the Export button.
  4. Select the desired export format.

    export-b-s.png

If "CSV" is selected, you can find the export under Your name > My background tasks.

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