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Download our free Excel Balance Sheet template for small businesses. The Balance sheet is one of the main financial statements required by businesses. It shows the value of a business at any point. The balance sheet is made up of assets (what a company owns), liabilities (what a company owes) and equities (Capital).
Other useful financial reports are the Profit and Loss Account (Income Statement), cash forecasting and budgeting. For other Excel templates, look at our free Excel bookkeeping templates page. Our templates include sales invoices, aged debtors, expenses and petty cash. All are easy to use and free to download.
As part of the year-end accounts for a Limited company, you will need to produce the balance sheet report for Companies House; this template will not be suitable. Your accountant will be able to format the accounts to be submitted.
Business Balance Sheet Template UK Example:
Table of Contents
Using Accounting Software for a Balance Sheet
The easiest way to produce the report is through accounting software. If you are not using accounting software, then use our spreadsheet download. The accounting software we recommend is Xero or QuickBooks.
Advantages of Using Accounting Software for a Balance Sheet
- You can set the balance sheet date required
- It is easy to compare two years
- When you click on the figures, it will show a breakdown
- It will always balance due to double entry bookkeeping
- The balance sheet can be exported to Excel or PDF
Below are the options in Xero for producing a balance sheet:
What is a Balance Sheet?
A balance sheet is a financial statement that provides a snapshot of a company’s assets, liabilities, and equity at a specific point in time. The goal of the balance sheet is to show how much a company is worth and whether it has the resources to pay its debts.
The balance sheet is one of the three significant financial statements (along with the income statement and cash flow statement) that businesses use to check their financial health. Balance sheets can be prepared for any period, but most companies prepare them quarterly or annually.
Lenders, investors, and suppliers use balance sheets to assess a company’s creditworthiness and ability to meet its financial obligations. They also give stakeholders a better understanding of how a business is financed and how it generates cash.
Balance Sheet Template – Explanation
When preparing your balance sheet, it is helpful to understand the different parts of it.
Assets
The assets of a business are listed on the balance sheet and include cash, accounts receivable, inventory, buildings, and equipment. The assets can be divided into current assets, fixed assets, and intangible assets.
The company’s assets are important because they represent the business’s resources to generate revenue.
Current Assets
The current assets are items that can turn into cash within one year, such as inventory and accounts receivable. Current assets include cash, bank accounts, accounts receivable (amounts owed by customers), stock, and prepaid expenses.
Fixed Assets or Long Term Assets
Fixed Assets or long-term assets – These are used for over a year. They include equipment, fixtures, fittings, tools and buildings. Fixed assets are written off over a period of time by accumulated depreciation.
Intangible Assets
Intangible Assets – These are not physical assets; examples are copyright, trademarks, goodwill, and patents.
Liabilities
A company’s liabilities are its obligations to pay back debts or provide services. Liabilities are classified as current or long-term.
Current Liabilities
Current Liabilities on the balance sheet are items your company owes over a short period, usually a year. They include accounts payable, short-term loans and income taxes payable.
Long Term Liabilities
Long-term liabilities include any long-term loans; an example is a mortgage on a property.
Owners Equity
Owner’s equity is the amount invested in the business and profits or losses made (retained earnings). The profit or loss of the business will be taken from the income statement also known as the profit and loss account; this is the retained earnings.
Basic Accounting Equation on the Company’s Balance Sheet
The basic accounting equation is a fundamental concept in accounting that states that owners’ equity equals total assets minus total liabilities.
The Balance sheet can assess a company’s financial health and make decisions about investing, borrowing, and lending. Because it is such an important tool, small business owners need to understand how to use the accounting equation.
Luckily, once you understand the basic concepts, it is relatively easy to use this equation to create a balance sheet. With practice, you can use the accounting equation with ease and confidence.
For further information, read our section on the balance sheet.
Instructions for Business Balance Sheet Template UK
Follow the links below to download your free balance sheet template.
At the top of the template, please enter your business name and the date it refers to. Balance sheet dates are always at a specific date rather than covering a period like a profit and loss or income statement report. A balance sheet is a picture of the business finances at any given date.
You must then enter all the available figures from your accounts and reports. Once the numbers are posted, the net profit and total equity should balance; if they do not, you must recheck your figures.
Balance Sheet Template Example
Below is an example of our completed template.
The above balance sheet template example shows the following:
- Computers less accumulated depreciation 1000.00
- Furniture less accumulated depreciation 400.00
- Value of fixed assets 1400.00
- The bank is 5872.00, prepayments are 57.00, and accounts receivable are 645.00.
- Total current assets 6574.00
- Accounts payable 1750 and accruals 250.00
- Total current liabilities 2000.00
- Net assets = assets 1400 + current assets 6574.00 – current liabilities 2000.00 = 5974.00
- Equity opening balance 4567.00 and retained earnings (profit) for the year 1407.00
- Total owner’s equity = 5974.00
Balance Sheet for Companies House
If you are after a Balance Sheet to complete your accounts at Companies House, you will need to use an Accountant or Accounting software that can produce it for you. Accountants will have a template they use to create both a full set of accounts and an abbreviated set.
Although a template is a good way to produce the balance sheet, the easiest way is to use accounting software. Several options include popular packages like Xero and QuickBooks or a free version of Zoho Books.
Download the Balance Sheet Template
Balance Sheet Template Licence Agreement
By downloading the Balance Sheet template, you agree to our licence agreement, allowing you to use the templates for your own personal or business use only. You may not share, distribute, or resell the templates to anyone else in any way. You will also receive an occasional newsletter with bookkeeping updates, useful information, free resources and offers.
Balance Sheet Template
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We have more free templates, including cash book, petty cash, profit and loss, aged payables and aged receivables. All our templates are available to download on our free Excel bookkeeping templates.
The balance sheet template is tested on both Microsoft 365 and Google Sheets.
Free Balance Sheet Template Conclusion
A balance sheet is a financial statement showing a snapshot of a business’s financial position. It includes short and long term assets, liabilities and owner’s equity.
Our free, simple balance sheet template is easy to use. If you use accounting software, a balance sheet is one of the main reports provided.
Return from Free Balance Sheet Template to Balance Sheet page.
