How to set up a balance sheet
Last Updated: 15 October 2019
What is a balance sheet?
A balance sheet is a snapshot of your business on a particular date. It lists all of your business's assets and liabilities. You can then find out what your net assets are at that time.
A balance sheet can also help you work out your:
- working capital – money needed to fund day-to-day operations
- business liquidity – how quickly you could pay your current debts
These give you an idea of the financial health of your business.
Create your balance sheet
Create a balance sheet listing all of your asset and liability items. At the end of the assets and liabilities sections, add a row for total assets and for total liabilities. You’ll add dollar amounts for each item for the next 3 years.
Use the outline below as your starting point for your balance sheet items for each year.
Open all
button toggle all accordionsCurrent assets
Fixed assets
Total assets
Current/short-term liabilities
Long-term liabilities
Total liabilities
Net assets
Complete your balance sheet
For each year, you'll need to fill in actual or estimated figures against each item. If you use estimated costs, make sure to label them clearly.
You’ll also need to clearly state on your balance sheet whether your figures are GST inclusive or exclusive.
Calculate the:
- total assets
- total liabilities
- net assets
