# Balance Sheet Template

**What this is:** A structured balance sheet template covering assets, liabilities, and equity. Useful for monthly or quarterly financial reporting and understanding a company's financial position at a point in time.  
**Use for:** Financial reporting, due diligence preparation, covenant monitoring, investor reporting.  
**Note:** The Excel version includes formula-driven totals, the balance check (Assets = Liabilities + Equity), and a prior-period comparison column.

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## How to read a balance sheet

The balance sheet answers: *what does the company own, what does it owe, and what's left over for owners?*

**The fundamental equation:** Assets = Liabilities + Equity  
*(This must always balance — if it doesn't, there's an error)*

Reading the balance sheet:
- **Assets** = what the company owns or controls (ordered by liquidity — most liquid first)
- **Liabilities** = what the company owes (ordered by when it comes due — soonest first)
- **Equity** = what's left for shareholders = Assets − Liabilities

**Current vs non-current:**
- **Current** = items expected to convert to cash or come due within 12 months
- **Non-current** = longer-term assets or obligations

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## Company: _______________ | As of: _______________ (date)
## Currency: _______________ | Prepared by: _______________ | Date prepared: _______________

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## ASSETS

### Current Assets *(expected to be converted to cash within 12 months)*

| Line item | Current period | Prior period | Change |
|---|---|---|---|
| Cash and cash equivalents | | | |
| Short-term investments | | | |
| Accounts receivable (net of allowance) | | | |
| Allowance for doubtful accounts | ( ) | ( ) | |
| Unbilled receivables / deferred revenue receivable | | | |
| Prepaid expenses | | | |
| Inventory *(if applicable)* | | | |
| Other current assets | | | |
| **Total Current Assets** | **—** | **—** | **—** |

### Non-Current Assets *(longer-term)*

| Line item | Current period | Prior period | Change |
|---|---|---|---|
| Property, plant & equipment (gross) | | | |
| Less: Accumulated depreciation | ( ) | ( ) | |
| **PP&E (net)** | | | |
| Right-of-use assets (operating leases) | | | |
| Intangible assets (net of amortization) | | | |
| Goodwill | | | |
| Long-term investments | | | |
| Other non-current assets | | | |
| **Total Non-Current Assets** | **—** | **—** | **—** |

| **TOTAL ASSETS** | **—** | **—** | **—** |

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## LIABILITIES

### Current Liabilities *(due within 12 months)*

| Line item | Current period | Prior period | Change |
|---|---|---|---|
| Accounts payable | | | |
| Accrued liabilities | | | |
| Accrued compensation | | | |
| Deferred revenue (current) | | | |
| Short-term debt / current portion of long-term debt | | | |
| Income taxes payable | | | |
| Other current liabilities | | | |
| **Total Current Liabilities** | **—** | **—** | **—** |

### Non-Current Liabilities *(due beyond 12 months)*

| Line item | Current period | Prior period | Change |
|---|---|---|---|
| Long-term debt (net of current portion) | | | |
| Deferred revenue (non-current) | | | |
| Operating lease liabilities (non-current) | | | |
| Deferred tax liabilities | | | |
| Other non-current liabilities | | | |
| **Total Non-Current Liabilities** | **—** | **—** | **—** |

| **TOTAL LIABILITIES** | **—** | **—** | **—** |

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## SHAREHOLDERS' EQUITY

| Line item | Current period | Prior period | Change |
|---|---|---|---|
| Common stock / par value | | | |
| Additional paid-in capital (APIC) | | | |
| Retained earnings / (accumulated deficit) | | | |
| Accumulated other comprehensive income (AOCI) | | | |
| Treasury stock | ( ) | ( ) | |
| **Total Shareholders' Equity** | **—** | **—** | **—** |

| **TOTAL LIABILITIES + EQUITY** | **—** | **—** | **—** |

**Balance check:** Total Assets = Total Liabilities + Total Equity?  ☐ Yes  ☐ Error — recheck

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## KEY RATIOS & METRICS

| Metric | Formula | Current period | Prior period |
|---|---|---|---|
| **Current ratio** | Current Assets ÷ Current Liabilities | | |
| **Quick ratio** | (Cash + Receivables) ÷ Current Liabilities | | |
| **Debt-to-equity** | Total Debt ÷ Total Equity | | |
| **Working capital** | Current Assets − Current Liabilities | | |
| **Days sales outstanding (DSO)** | Accounts Receivable ÷ (Revenue ÷ 365) | | |
| **Months of cash runway** | Cash ÷ Monthly net burn | | |

**Interpretation guidelines:**
- Current ratio > 1.5: generally comfortable for operating liquidity
- Current ratio < 1.0: current liabilities exceed current assets — watch carefully
- DSO rising: customers paying slower — A/R management issue or revenue recognition change

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## COMMENTARY

**Significant changes from prior period:**

_______________

**Liquidity position:**

_______________

**Debt covenants (if applicable):**

| Covenant | Threshold | Current value | Status |
|---|---|---|---|
| | | | ☐ In compliance  ☐ At risk  ☐ Breach |

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*Covered in the Financial Literacy Guide on biztechprimer.com.*