Free Balance Sheet Templates

A balance sheet is a type of business statement that includes a business’s assets, liabilities, and equity. It shows the financial health of a business. 

Retained earnings are the sum of all the profits and losses of a company over the time the company is operational. The retained earnings go to the liabilities and this money is kept for the sake of paying the shareholders in case of a business buyout or sale.

A balance sheet shows the company’s worth. A balance sheet gives a comprehensive picture of a business. It gives information about the business assets, liability, and equity at a glance.

A balance sheet is one of the core statements and reports about a business. A balance sheet has the details of a company’s assets, liabilities, and equity and it shows the financial health of a company.

Off-Balance Sheet (OBS) assets do not appear on the balance sheet. The OBS assets are also called incognito leverage shelter the financial statements from financing activity, asset ownership, and any related debts. 

Balance Sheet accounts record the company’s transactions regarding its assets, liabilities, and equity. The balance sheet account help sorts such transactions for preparing an annual balance sheet.

Long-term liabilities are the debts that are payable after 12 months. On the opposite, the short-term liabilities are the ones payable within 12 months. 

A balance sheet is organized in two parts and three heads. On the left side, the assets are mentioned. On the right side, liabilities and equity are mentioned. Both sides are equal as assets are always equal to the sum of liabilities and equity. 

You can find the net income from a balance sheet using this formula. 

Net Income = Revenues- cost of goods sold – expenses 

Making a balance sheet is easy and straightforward. If you have an income statement for your company, just download our free balance sheet template here and put in the data from the income statement. The balance sheet template excel format will automatically make the calculations. Your balance sheet is ready. 

Or, you can start with the balance sheet template, add up all your assets, liabilities, and equity and fill in the template to prepare the balance sheet. 

Take out the liabilities from the company’s assets, this is your stockholder equity. Subtract the common stock line item from the stockholder equity and you will get the retained earnings. 

On the assets side, you can find the retained earnings as capital that the company earned but did not pay in the dividends.