The Balance Sheet shows your company’s financial position - assets, liabilities, and equity - as at today’s date.
Open Accounting → Reports → Balance Sheet.
Structure
Accounts are grouped by type in a tree:
- Assets - cash, bank, receivables, etc.
- Liabilities - payables, tax payable, etc.
- Equity - capital, retained earnings, plus current year earnings
Current year earnings is calculated as income minus expenses for the period and added to equity so the sheet balances.
The accounting equation
Assets = Liabilities + Equity
The report shows whether this holds for your company. A mismatch indicates data to investigate in the GL.
When to use it
- Management review of financial position
- Bank or audit preparation
- Checking AR/AP against Payment Ledger
Date and currency
The balance sheet is as at today in your company’s base currency. Custom date ranges are not available in the current UI.
Related
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