Balance Sheet Report
This guide explains how to generate and analyze balance sheet reports in Fiskl to understand your business's financial position at any point in time.
Understanding the Balance Sheetβ
The Balance Sheet is a financial statement that shows what your business owns (assets), what it owes (liabilities), and the owners' equity at a specific date. It provides a snapshot of your company's financial health and follows the fundamental accounting equation: Assets = Liabilities + Equity.
Why is the Balance Sheet important?
The Balance Sheet helps you:
- Assess your business's financial position quickly
- Evaluate liquidity and solvency
- Meet requirements for tax filing and loan applications
- Make strategic business decisions based on financial data
Balance Sheet vs. Profit and Lossβ
The Balance Sheet and Profit and Loss (P&L) report serve different purposes:
Balance Sheet captures your financial position at a specific moment in time, like a photograph. It shows what you own and owe on a particular date using the equation Assets = Liabilities + Equity.
Profit and Loss tracks your financial performance over a period, like a video. It starts with revenue and subtracts expenses to show your net profit or loss over weeks, months, or years.
Key Componentsβ
Your Balance Sheet contains three main sections:
Assetsβ
Assets are what your business owns or controls:
- Current Assets: Cash, accounts receivable, inventory, and other assets convertible to cash within one year
- Long-Term Assets: Property, equipment, investments, and other assets held for more than one year
Liabilitiesβ
Liabilities are what your business owes:
- Current Liabilities: Accounts payable, short-term loans, and other debts due within one year
- Long-Term Liabilities: Long-term loans, bonds payable, and other debts due after one year
Equityβ
Equity represents the residual interest after subtracting liabilities from assets:
- Share Capital
- Retained Earnings
- Current Year Profit/Loss
Monitor your Current Assets and Current Liabilities closely. The ratio between these figures indicates your short-term financial health and ability to meet immediate obligations.
Generating Your Balance Sheetβ
To create a Balance Sheet report:
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Navigate to reports
Click Accounting in the sidebar, then select Reports and choose Balance Sheet.
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Select your date
Use the date selector to choose the specific date for your report.
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Customize the report
Adjust these options to fit your needs:
- Enable period comparison
- Switch between Cash and Accrual methods
- Hide accounts with zero balances
- Divide large numbers by 1000 for readability
- Show or hide unrealized foreign exchange gains/losses
- Toggle between summary and detailed views
Comparing Periodsβ
Compare up to three different dates to track changes:
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Enable comparison
Click Compare after selecting your initial date.
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Add comparison dates
Select additional dates you want to compare.
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Review changes
View differences shown in both monetary amounts and percentage changes.
This feature helps you identify trends and spot unusual changes in your financial position over time.
Cash vs. Accrual Accountingβ
Choose the accounting method that matches your needs:
Cash method shows assets and liabilities based on when cash actually moves in or out of your business.
Accrual method records assets and liabilities when transactions occur, regardless of when cash is received or paid.
Which method should I use?
The choice depends on your business needs and reporting requirements. Learn more about Cash vs Accrual accounting to understand which method works best for your situation.
Analyzing Your Reportβ
Get meaningful insights from your Balance Sheet:
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Review regularly
Examine your Balance Sheet monthly or quarterly to stay informed about your financial position.
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Track trends
Compare current figures to previous periods to identify patterns in assets, liabilities, and equity.
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Calculate financial ratios
Use Balance Sheet figures to compute ratios like Current Ratio or Debt-to-Equity Ratio for deeper analysis.
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Investigate changes
When you notice significant shifts in any category, explore the underlying transactions to understand why.
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Combine with other reports
Use your Balance Sheet alongside P&L and Cash Flow statements for comprehensive financial insights.
Click any total in the detailed view to see all related transactions. This helps you investigate specific entries and understand the details behind summary figures.
Exporting and Sharingβ
Share your Balance Sheet with stakeholders or advisors:
Export to spreadsheet:
- Click the export button in the top-right corner
- Select either Google Sheets or Excel format
Create a PDF:
- Click the print button in the top-right corner
- Save as PDF or print a physical copy
All exports include a timestamp and the selected accounting method for your records.
Adding Notesβ
Provide context for your financial data:
- Click the note icon in the top-right corner
- Enter your comments or explanations
- Your notes will appear on exported and printed versions
Exampleβ
Cash vs Accrual accounting Regular review of your Balance Sheet helps you understand your financial position and make informed decisions about managing assets, liabilities, and equity for long-term business health.