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.
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
Company: _______________ | As of: _______________ (date)
Currency: _______________ | Prepared by: _______________ | Date prepared: _______________
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 | — | — | — |
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 | — | — | — |
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
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
COMMENTARY
Significant changes from prior period:
Liquidity position:
Debt covenants (if applicable):
| Covenant | Threshold | Current value | Status |
|---|---|---|---|
| ☐ In compliance ☐ At risk ☐ Breach |
Covered in the Financial Literacy Guide on biztechprimer.com.