{"id":9459,"date":"2023-03-23T06:21:34","date_gmt":"2023-03-23T10:21:34","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=9459"},"modified":"2026-01-15T11:37:36","modified_gmt":"2026-01-15T16:37:36","slug":"see-your-business-finances-clearly-with-our-free-balance-sheet-template","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/see-your-business-finances-clearly-with-our-free-balance-sheet-template\/","title":{"rendered":"See your business finances clearly with our free balance sheet template"},"content":{"rendered":"
\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tFree guides & templates<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\tSee your business finances clearly with our free balance sheet template\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t

\n\t\t
\n\t\t\t
\n\t
\n\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t
\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tRyan Grundy<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

Running a business means making tough decisions every day. Though experience and instinct will get you so far, you need cold, hard facts to keep your business financially healthy for the long term. <\/p>\n\n\n\n

This is why financial reports (also called financial statements) are essential. Among the most useful types, the balance sheet provides a simple and comprehensive view of your overall financial position. <\/p>\n\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

See your business finances clearly<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

<\/p>\n

Download our balance sheet template to summarize your business finances in minutes<\/p>\n

<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tGet it now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"people\t\t\t<\/div>\n<\/div>\n\n\n\n

This article will help you make the most of your balance sheet with a professional template to get you started.<\/span> <\/span><\/p>\n\n\n\n

What a balance sheet is used for <\/h2>\n\n\n\n

A balance sheet is a list that compares everything your business owns (assets) and owes (liabilities), and the amount invested by shareholders (equity). It\u2019s called a balance sheet because the sum of your liabilities and equity should equal your assets. <\/span> <\/span><\/p>\n\n\n\n

Assets = Liabilities + Equity <\/strong><\/p>\n\n\n\n

In other words, it should \u201cbalance\u201d.<\/span> <\/span><\/p>\n\n\n\n

Most business run a balance sheet at the end of a quarter, or year. <\/span> <\/span><\/p>\n\n\n\n

It\u2019s mainly used:<\/span> <\/span><\/p>\n\n\n\n

    \n
  • To show how much money is available to shareholders.<\/span>\u00a0<\/span><\/li>\n\n\n\n
  • For investors to gain insight into the business and its operations. They may also be looking to see if there is enough cash available to pay dividends or to invest more in the business.<\/span>\u00a0<\/span><\/li>\n\n\n\n
  • If your business is for sale, for potential buyers to assess the viability of the business.<\/span>\u00a0<\/span><\/li>\n\n\n\n
  • To work out your \u201cliquidity ratio\u201d. This tells you whether you have enough money in the bank or assets that can quickly be converted into cash to pay your bills.<\/span>\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n

    How to create a balance sheet<\/h2>\n\n\n\n

    Balance sheets have a very simple layout, which means they\u2019re easy to create manually in a document or spreadsheet. There are only 3 main sections you\u2019ll need to populate with your latest figures: a list of all assets, liabilities, and equity, complete with their amounts.<\/span> <\/span><\/p>\n\n\n\n

    Our balance-sheet template is ready to use, so you can skip setting up a document and start adding your line items straight away. <\/span> <\/span><\/p>\n\n\n\n

    \n\t
    \n\t\t
    \n\t\t\t
    \n\t\t\t\t\t\t\t\t

    See your business finances clearly<\/h2>\n\n\t\t\t\t\t\t\t\t\t
    \n\t\t\t\t\t\t

    <\/p>\n

    Download our balance sheet template to summarize your business finances in minutes<\/p>\n

    <\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tGet it now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"people\t\t\t<\/div>\n<\/div>\n\n\n\n

    We\u2019ve<\/span> included some of the most common <\/span>items in each section, <\/span>but <\/span>you\u2019ll<\/span> need to add any others you have in your business.<\/span><\/span> <\/span><\/p>\n\n\n\n

    Get smarter with software<\/h3>\n\n\n\n

    If you\u2019re using accounting software to run reports, you\u2019ll get even more out of the balance sheet. Advanced capabilities such as pre-configured views, full customization, multiple export options, and custom-report saving, give you more control over what information it shows.<\/span> <\/span><\/p>\n\n\n\n

    Discover real-time insights in a fraction of the time it takes to create a balance sheet manually.<\/span> <\/span><\/p>\n\n\n\n

    How to use our balance sheet template<\/h2>\n\n\n\n

    Once you\u2019ve downloaded our balance sheet template, you\u2019ll need to add your company name, logo, and the date you\u2019re creating the report. This is particularly important, as you\u2019ll accumulate balance sheets over time and will need a record of when historic reports were run.<\/span> <\/span><\/p>\n\n\n\n

    Next, adjust the year columns to the reflect the period you want to report on, add more if you want to compare more than 2 years. Alternatively, you can remove a column and create the report for a single year.<\/span> <\/span><\/p>\n\n\n\n

    Now populate all the suggested line items that are relevant to your business, including the latest figures and total calculations.<\/span> <\/span><\/p>\n\n\n\n

    Remove any lines that are not relevant, and add any other assets, liabilities, or equity items not already included. Remember, the balance sheet should be a snapshot of your entire business finances, so leave nothing out.<\/span> <\/span><\/p>\n\n\n\n

    With all 3 sections populated, including figures and totals, you can start calculating some common financial ratios:<\/span> <\/span><\/p>\n\n\n\n

    \n

    Ratio<\/span><\/b> <\/span><\/p>\n<\/td>

    		\n

    Calculation<\/span><\/b> <\/span><\/p>\n<\/td><\/tr>

    \n

    Debt ratio<\/span> <\/span><\/p>\n<\/td>

    		\n

    Total liabilities \u00f7 total assets<\/span> <\/span><\/p>\n<\/td><\/tr>

    \n

    Current ratio (liquidity ratio)<\/span> <\/span><\/p>\n<\/td>

    		\n

    Total assets \u00f7 total liabilities<\/span> <\/span><\/p>\n<\/td><\/tr>

    \n

    Working capital<\/span> <\/span><\/p>\n<\/td>

    		\n

    Current assets \u2013 current liabilities<\/span> <\/span><\/p>\n<\/td><\/tr>

    \n

    Assets-to-equity ratio<\/span> <\/span><\/p>\n<\/td>

    		\n

    Total assets \u00f7 total equity<\/span> <\/span><\/p>\n<\/td><\/tr>

    \n

    Debt-to-equity ratio<\/span> <\/span><\/p>\n<\/td>

    		\n

    Total liabilities \u00f7 total equity<\/span> <\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

     <\/span><\/p>\n\n\n\n

    Run these financial ratios to build a picture of your financial position, and you\u2019ll be able to make key decisions and communicate the health of your business to shareholders, buyers, and investors.<\/span> <\/span><\/p>\n\n\n\n

    Final thoughts<\/h2>\n\n\n\n

    Whether you build it using our simple and professional template, or run it through your accounting software, the balance sheet will help you understand the health of your business based on every financial element.<\/span> <\/span><\/p>\n\n\n\n

    We recommend running this report at least every quarter to maintain visibility of your financial position. <\/span> <\/span><\/p>\n\n\n\n

    This will help you make better long-term decisions and raise any red flags early so you can prevent future difficulties.<\/span> <\/span><\/p>\n\n\n

    \n\t
    \n\t\t
    \n\t\t\t
    \n\t\t\t\t\t\t\t\t

    Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
    \n\t\t\t\t\t\t

    Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    This article will help you make the most of your balance sheet with a professional template to get you started.\u00a0<\/p>\n","protected":false},"author":1398,"featured_media":9460,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[124],"tags":[266],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[34],"coauthors":[313],"class_list":["post-9459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-free-guides-templates","tag-business-finances","business_type-small-business"],"sage_meta":{"region":"en-ca","author_name":"Ryan Grundy","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/03\/GettyImages-935644254-768x432-1.jpg","imagine_tags":{"34":"Accountants"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/9459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1398"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=9459"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/9459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/9460"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=9459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=9459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=9459"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=9459"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=9459"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=9459"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=9459"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=9459"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=9459"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=9459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}