What is it: a balance sheet is an accounting document that shows a kind of financial x-ray of the company. It bridges the gap between Cash flow and Economic Result to show the real financial condition of a company, exposing its profits, dividends and its net worth.
Why do: To do the financial planning of a company, it is necessary that the balance sheet be well done. It is through it that it is possible to determine whether a company is profitable or not. O Income Statement provides a notion of profit, but without the view of accounts receivable and accounts payable, you can not be sure.
When to do the balance sheet?
It depends. It can be done annually, semiannually or quarterly. Through it, the net equity of the company is found, resulting from the difference between assets and liabilities.
If the company wants to make its accounting only to meet its tax obligations, it can be done annually. If you want a more managerial breadth of your accounting routines, influencing decision making, it is suggested that the term be shorter. In this case, a accounting posting worksheet will help.
To understand better, it is important to know more about the components of this calculation:
Assets are divided into current and non-current assets.
Current Assets consist of the items with the highest liquidity. They are cash and cash equivalents, cash and cash equivalents, short-term receivables of less than 12 months.
- Box: is the money saved in the company for quick payments and immediate use.
- banks: availability in the company's bank accounts.
- Short-term receivables: is what customers have already bought and have not yet paid, but will be received within the exercise itself.
- Stocks: are the products finished or not stored in the company. They do not have high liquidity but expect to be sold within the exercise itself.
Non-current assets consist of the items with the lowest liquidity and are divided into two groups.
Long-Term Assets: accounts receivable with a maturity greater than 12 months. That is, they will be received only in the next fiscal year.
- Notes receivable: are the receivables that are owed to the company and can not be charged before the one year term. They are long-term assets.
Permanent assets: are the assets of the company, which represent the items with the lowest liquidity. Vehicles, computers, land, software, etc.
- Terra: is a fixed asset that never wears out, that is, it does not suffer depreciation.
- Immobile: is a fixed asset and undergoes depreciation.
- Office equipment: in this case enters the computer, printer, Xerox machine among others.
- Machines: In this item enter the presses and other machines that the company has.
- Vehicles: entire fleet of the company.
Liabilities are comprised of short- and long-term liabilities. That is, everything here that the company has to pay. O Current Liabilities has accounts payable with a term shorter than 12 months. Similarly, the Non-Current Liabilities contains the other accounts payable.
- Bills to pay: which must be paid to suppliers.
- Notes payable: money from third parties.
- Salaries and contributions: salaries that have not yet been paid to employees.
- Taxes to pay: amounts already assessed, not yet paid.
- Loans: values that the company has borrowed and will be paid at some point.
- Long-term liabilities: debts that have more than one year of term to be paid.
Equity is the equity of the company. It is composed of the capital stock initially invested by the shareholders, by the profit reserves, by the accumulated profits of the past and by the profit or loss for the year, which is also the result of the DRE.
- Share capital: initial investment in the business by the partners or profits that were reinvested.
- Profits: those who were reinvested in business or the year of the exercise.
Calculating the balance sheet
The Balance Sheet must be constructed from the accounting entries of the company. The most important point to be understood in this exercise is the concept of the double game:
Every posting must have a credit account and a debit account.
This will always ensure that:
Shareholders' Equity = Assets - Liabilities
Assets = Liabilities + Shareholders' equity
Examples in the Balance Sheet
When the company buys a computer for $ 1.500 using the money stored in the bank. The Banks in Current Assets account is reduced by R $ 1.500 and the Equipment in Non-Current Assets account is increased by R $ 1.500.
In practice, the Assets are increased and reduced by the same amount, with a zero balance at the end.
The company manages a real $ 24.000 loans to be paid in 24 equal installments. The Bank account, in Current Assets, is increased by R $ 24.000. The Loans account, from Current Liabilities, is increased by R $ 12.000. The Loans account, of Non-Current Liabilities, is increased by R $ 12.000.
By constantly updating the balance sheet data, you can obtain important account and indicator evolutions that will clarify the financial situation of your company:
- Detailing Rights (Active);
- Breakdown of Obligations (Liabilities);
- Projection of the Management Balance Sheet;
- Forecast of Tickets;
- Exit Forecasting;
- Forecast of Balances;
- Liquidity indicators;
- Debt indicators;
- Indicator of equity evolution.
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