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Balance Sheet

Balance Sheet

Overview

A Balance sheet is a financial statement of the assets, liabilities, and capital of a business or other organisation at a particular point in time, detailing the balance of income and expenditure over the preceding period.

Definitions

Balance sheet equation: Asset = Liabilities + Equity.
Total assets - total liabilities = Owners' equity

An Asset is something valuable that an entity owns, benefits from, or has use of, in generating income.
A Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash. 
A Non Current assets are long-term assets that a company expects to hold over one financial year that cannot readily be converted to cash within a year eg Investments, Property & Plant, Intangibles.
A liability is a debt, obligation or responsibility by an individual or company such as Accounts Payable.
Current liabilities are debts that are due within 12 months or the yearly portion of a long term debt.
Long-term liabilities are due more than a year after the balance sheet date.
Owner's equity is the amount of assets minus the amount of liabilities.
Retained earnings = Cumulative net income minus cumulative dividends paid to shareholders.
Net Profit after tax =(Total Revenue – Total Expenses)/Total Revenue = Net Profit/Total Revenue = After-Tax Profit Margin. By dividing net profit by total revenue, we can see what percentage of revenue made it all the way to the bottom line, which is good for investors.
The net income formula is calculated by subtracting total expenses from total revenues 

The balance sheet totals is always as of the end period selected. Always runs from the beginning of time.
The profit and loss values is for a period of time from the start period selected to the end period selected.

The balance sheet for all sites, ‘total owners equity’ value must equal ‘total net assets’ value from the beginning of time to the end of time.

To ensure that the balance sheet balances back to the profit and loss, always run both from the beginning of time to the end of time. The Balance sheet ‘total net profit before tax’ value must be the same value as the profit and loss ‘total net profit before tax’.

Test screenshot of both reports of test data below:
First screenshot is the Balance sheet all sites shot below for the same period range:

Second screenshot is the Profit and loss all sites for the same period range:

image-20260210-212439.png
image-20260210-213022.png

 



 

Image of the report result

Running the report

  1. In the Navigation panel, go to Reports, then Form Reports.

  2. In the list of reports, find the category General Ledger, then select Balance Sheet for all sites or site.

  3. Select a parameter; some options may be as per the image

  4. Select the parameter 

  5. Click on Show Report Using Parameters, the screen as per below will appear.
    You may want to show last year's’s balance if the check box is ticked.

     

  6. Start Period and End Period fields

    1. If you require a report for 1 period, key in the same period into both fields

    2. If you require a specific range of periods, enter the start period and end period for that range. 

  7. Depth- 

  8. If you want zero balances on the report, check the box

  9. Click OK and report runs

  10. If you want to show last year's balance, tick that check box.

  11. Result appears as above images.

  12. To ensure that your balance sheet balances, run it from the beginning of time to the end of time.

Use Case