The Balance Sheet is an important financial document that all businesses need to have their eyes on. When you work with a Swindon Accountants such as Chippendale and Clark Accountants in Swindon, they will regularly meet with you to look at a variety of reports that include the balance sheet to give you a good overview of the businesses financial position as well as help you to forecast for growth in the future.
A balance sheet is a statement of the financial position of the business at the time that you run the report. It gives both the key people within your business and the accountants that you work with an overview of the assets and liabilities that you have, as well as the net worth of the business. These figures are key if you are looking into the possibilities of growing your business or looking for sale value in the future.
The assets that are shown on the balance sheet will include all the items that are owned by the business such as vehicles, equipment, buildings and also stock that you hold and of course any money that you have in the bank and in savings accounts etc.
The liabilities are all the items that are owed to external creditors, this could include business loans and overdrafts and employee entitlements and any suppliers that you have contracts with for providing either services or products to your business.