The Balance sheet position in the Transaction accounting flow in FIGG Excel accounting system.

Figg, Excel Accounting Templates, Accounting Systems in Excel, Small Business Accounting in Excel, What is a Balance Sheet

A Balance sheet is a report that draws all account details and values from the Trial balance to display in a format to immediately identify the value of what a business owns (Assets) and what a business owes (Liabilities)

The accounts and values on the Trial balance are grouped into other descriptions and arranged in a Balance sheet format.  A Trial balance has a purpose as described on this website and a Balance sheet uses all the accounts and values of the Trial balance for a different purpose.

The primary purpose of a Balance sheet is to easily view the value of what a business owns (Assets) and what a business owes (Liabilities)

Always remember that a Liability for a business will always be an Asset for whoever the business owes. Example:  A debit on the business bank statement is a debit for the bank (Asset) and a credit for the business (Liability) and vice versa.

Using the same example Trial Balance that is used throughout the information tabs on this website, I will show you how the Balance sheet is “put together” from a Trial balance.

Figg, Excel Accounting Templates, Accounting Systems in Excel, Small Business Accounting in Excel, What is a Balance Sheet

Buy Now!

FiGG Accounting Systems in eXcel!

See our Full Range

Sign Up to Our Newsletter

Get our monthly blogs and accounting tips delivered to your inbox!

Continue Reading

Accounting Systems in eXcel.

We offer ongoing support and development.