A balance sheet is a snapshot of your business on a particular date. It lists all of your business's assets and liabilities and works out your net assets. A balance sheet can also help you work out your working capital (money needed to fund day-to-day operations) and business liquidity (how quickly you are able to pay your current debts), which can give you a good indication of the financial health of your business.
On your balance sheet, list all your balance sheet items with the dollar amount for the next three years. For each year list the items and total the figures under the headings Total assets and Total liabilities. Use the outline below as your starting point for your balance sheet for each year.
Balance sheet per year
1. Current assets
2. Fixed assets
Property & land
Furniture & fitout
3. Total assets (Add up all current assets and fixed assets)
4. Current/short-term liabilities
Credit cards payable
5. Long-term liabilities
6. Total liabilities (Add up all short-term and long-term liabilities)
7. Net assets (Calculate Total assets minus Total liabilities)