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Read your Balance Sheet

The Balance Sheet shows what your business owns, what it owes and what's left for the owners, as at the end of the period.

Go to Reports → Balance Sheet.

Balance Sheet

How it's laid out

  • Assets: Cash, Bank (one line per bank account), Accounts receivable, Prepaid expenses, Inventory, Other current assets, Fixed assets less accumulated depreciation, and Intangible assets less accumulated amortization. Ends with Total assets.

  • Liabilities: Accounts payable, Other current liabilities and Long-term liabilities.

  • Equity: Opening balance equity, Retained earnings and other equity accounts.

  • Total liabilities and equity: always equals Total assets. That's how you know your books balance.

Tips

  • Check your bank lines: they should match your bank statements on the same date. If not, reconcile under Banking.

  • Accounts receivable and payable should match your aging reports.

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