Balance Sheet Template Excel & Google Sheets

What is the Balance Sheet Template?

A balance sheet template is a required financial statement that summarizes and reports a company's assets, liabilities, and shareholder ownership equity at a specific date, such as the end of its financial year. It's more than just a document—it's a strategic tool that provides a complete view of your company's financial health.

Importance of Balance Sheet Template

Track Your Financial Performance

A balance sheet template for small businesses helps you monitor your company's performance by:

• Assessing the company's ability to meet financial obligations
• Comparing current financial position with previous periods
• Identifying areas of strength and potential improvement

Understand Financial Solvency

A corporation's balance sheet allows stakeholders to determine if the business is solvent quickly. It reveals critical insights such as:

• Whether assets outvalue total liabilities
• Debt levels compared to industry standards
• Available cash on hand

Key Financial Measurements

Your balance sheet template enables you to calculate crucial financial metrics:

• Current Ratio: Assets divided by current liabilities, illustrating the company's ability to pay off debts in the next 12 months.
• Quick Ratio: Measures immediate debt-paying capability using liquid assets.
• Debt-to-Equity Ratio: Reveals how much of the business is financed by debt, helping assess financial risk.

What Does Balance Sheet Template Contain? 

Current Assets (Convertible within one year):

These are the most liquid resources your company owns:

• Cash and cash equivalents
• Accounts receivable
• Inventory
• Prepaid expenses
• Short-term investments

Long-Term Assets:

These represent longer-term investments and holdings:

• Long-term investments
• Property, plant, and equipment (less accumulated depreciation)
• Intangible assets (e.g., patents, trademarks)

Other Assets:

Additional financial resources that may not fit into standard categories:

• Deferred income tax
• Other 

Current Liabilities (Due within one year):

Financial obligations payable in the near term:

• Accounts payable
• Short-term loans
• Income taxes payable
• Accrued salaries and wages
• Unearned revenue
• Current portion of long-term debt

Long-Term Liabilities:

Obligations extending beyond the current year:

• Long-term debt
• Deferred income tax
• Other long-term liabilities

Owner's Equity

Represents the financial stake of the owners:

• Owner's investment
• Retained earnings
• Other equity contributions

How To Use Balance Sheet Template

Follow these steps to effectively use the balance sheet template:

1. Organize Financial Information

Gather all necessary financial data, such as account statements, invoices, and investment records, to ensure the accuracy of your inputs.

2. List Assets

Start by listing current assets like cash and receivables. Progress to fixed assets such as equipment and property, followed by other assets like deferred taxes.

3. Document Liabilities

Record all financial obligations. Input them into current liabilities (e.g., accounts payable, short-term loans) and long-term liabilities (e.g., bonds payable, deferred taxes).

4. Insert Owner’s Equity

Determine the equity by inputting contributions, retained earnings, and other owner-related funds. Use the totals from the assets and liabilities sections to confirm the equity balance.

5. Analyze and Compare

Use the template to compare prior and current periods. This helps track financial progress and identify trends in asset growth, liability management, or equity changes.