{"id":4124,"date":"2019-08-02T14:00:05","date_gmt":"2019-08-02T13:00:05","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-a-balance-sheet\/"},"modified":"2026-05-18T14:45:20","modified_gmt":"2026-05-18T13:45:20","slug":"what-is-a-balance-sheet","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-a-balance-sheet\/","title":{"rendered":"What is a balance sheet?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/\" class=\"entry-header__link\">Glossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is a balance sheet?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\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<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is a balance sheet?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-a-balance-sheet\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<p class=\"wp-block-paragraph\">When you are a <a href=\"https:\/\/www.sage.com\/en-gb\/size\/small-business\/\">small business<\/a>, there are so many things to think about, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Winning contracts<\/li>\n\n\n\n<li>Hiring staff<\/li>\n\n\n\n<li>Exceeding customer expectations<\/li>\n\n\n\n<li>Buying equipment<\/li>\n\n\n\n<li>Advertising your services.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">With all this going on, it can be difficult to find the time to keep up with financial reporting responsibilities and maintain accurate balance sheets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A&nbsp;balance sheet&nbsp;is a business statement that shows what the business owns (<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-are-assets\/\">assets<\/a>), what it owes (<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-are-liabilities\/\">liabilities<\/a>), and the value of the owner&#8217;s investment (owner\u2019s equity) in the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This report forms part of your financial reporting and is vital not only for lending purposes but also to ensure that your books balance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As with a <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-trial-balance\/\">trial balance<\/a> (a report that summarises the debit and credit balances of each account on your chart of accounts during a period of time), the balance sheet must always balance and the formula used is assets \u2013 liabilities = owner\u2019s equity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Assets and liabilities are subdivided into short term and long-term obligations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Short-term obligations are values that will be paid\/settled in the current financial year, and long-term obligations are values that will be paid over a length of time exceeding the financial year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When looking at a balance sheet, one assumes all necessary information has been entered and that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All transactions entered actually took place<\/li>\n\n\n\n<li>All entries have been posted accurately<\/li>\n\n\n\n<li>All transactions have been entered in the correct period<\/li>\n\n\n\n<li>All transactions have been processed to the correct account.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image alignnone size-full wp-image-6630\"><img loading=\"lazy\" decoding=\"async\" width=\"1184\" height=\"981\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/03\/Accounting-Balance-sheet.png\" alt=\"what is a balance sheet - and why is it important for the small business owner? When you are a small business there are so many things to think about - winning contracts, hiring staff, exceeding customer expectations, buying equipment, advertising your services - the list goes on. With all this going on, it can be difficult to find the time to keep up with financial reporting responsibilities and maintain accurate balance sheets. A balance sheet is a business statement that shows what the business owns (assets), what it owes (liabilities), and the value of the owner's investment (owner\u2019s equity) in the business. This report forms part of your financial reporting and is vital not only for lending purposes but also to ensure that your books balance. As with a trial balance (a report that summarises the debit and credit balances of each account on your chart of accounts during a period of time), the balance sheet must always balance and the formula used is assets \u2013 liabilities = owner\u2019s equity. Assets and liabilities are subdivided into short-term and long-term obligations. Short-term obligations are values that will be paid\/settled in the current financial year, and long-term obligations are values that will be paid over a length of time exceeding the financial year. When looking at a balance sheet, one assumes that all necessary information has been entered and that: \uf0d8All transactions entered actually took place \uf0d8 All entries have been posted accurately \uf0d8 All transactions have been entered in the correct period \uf0d8 All transactions have been processed to the correct account The balance sheet is a snapshot of a business's financial records at a given date. The total of the owner\u2019s equity is the book value of your business as at that date. This report helps a small business owner quickly understand what their business is worth. A balance sheet can help you identify trends in your business's finances, particularly when it comes to relationships with customers and suppliers. Are your customers taking longer to pay you? Is your debt collection out of control? Are you taking longer to pay your suppliers due to cash shortages? Are you over\/under stocked? You can run a balance sheet report from within Sage Business Cloud Accounting. For a visual display of your profit &amp; loss and balance sheet data look at the business snapshot dashboard in Sage Intelligence, which is accessible from within the \u201cReporting\u201d section of Accounting.\" class=\"wp-image-6630\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/03\/Accounting-Balance-sheet.png 1184w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/03\/Accounting-Balance-sheet-768x636.png 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/03\/Accounting-Balance-sheet-978x810.png 978w\" sizes=\"auto, (max-width: 1184px) 100vw, 1184px\" \/><figcaption class=\"wp-element-caption\">Example of a balance sheet<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The balance sheet is a snapshot of a business&#8217;s financial records at a given date. The total of the owner\u2019s equity is the book value of your business as at that date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This report helps a <a href=\"https:\/\/www.sage.com\/en-gb\/size\/small-business\/\">small business<\/a> owner quickly understand what their business is worth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A balance sheet can help you identify trends in your <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/manage-business-finances\/\">business&#8217;s finances<\/a>, particularly when it comes to relationships with customers and suppliers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are your customers taking longer to pay you? Is your debt collection out of control? Are you taking longer to pay your suppliers due to cash shortages? Are you over\/under stocked?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can run a balance sheet report from within <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-accounting\/\">Sage Business Cloud Accounting<\/a> so you can answer these questions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a visual display of your <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/glossary\/what-is-profit-and-loss\/\">profit &amp; loss<\/a> and balance sheet data look at the business snapshot dashboard in Sage Intelligence, which is accessible from within the \u201cReporting\u201d section of Accounting.<\/p>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this term<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-32603 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-accountant-payroll tag-accountant-tax tag-alternative-finance tag-auto-enrolment tag-bookkeeping tag-business-costs tag-business-finances tag-business-support tag-cafe tag-cash-flow tag-finance tag-hr-processes-medium-businesses tag-hr-payroll-benefits tag-payments tag-payroll tag-retail tag-vat business_type-small-business business_type-medium-sized-business business_type-accountants industry-food-beverage industry-travel-hospitality card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/10\/AdobeStock_420550058-1440x810.jpg\" class=\"card-post__image\" alt=\"UK Autumn Budget 2027\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/10\/AdobeStock_420550058-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/10\/AdobeStock_420550058-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/10\/AdobeStock_420550058-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-10-29T10:28:40+00:00\">29 October, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">15 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/uk-autumn-budget-2027\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tAutumn Budget 2026: What it means for your business\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tHere are the announcements that affect sole traders, small, and medium-sized businesses\u2014plus what it all means in practice, and the next steps to take.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-10689 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accountant-accounting tag-bookkeeping tag-need-to-know tag-tax business_type-small-business business_type-medium-sized-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/plastic-packaging-tax-need-to-know\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1141999796-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1141999796-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1141999796-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1141999796-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-10-16T12:18:31+01:00\">16 October, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">6 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tPlastic Packaging Tax: What businesses need to know, including 2027 updates\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-10040 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-business-finances tag-mtd-business tag-need-to-know tag-tax tag-vat business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/voluntary-vat-register-making-tax-digital\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-497069597-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-497069597-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-497069597-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-497069597-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-10-15T16:40:53+01:00\">15 October, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to get ready for Making Tax Digital for VAT\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-10708 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-bookkeeping tag-mtd-business tag-need-to-know tag-tax tag-vat business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/making-tax-digital-deadlines\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1289906599-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1289906599-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1289906599-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1289906599-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-10-15T12:05:56+01:00\">15 October, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tMaking Tax Digital for VAT deadlines\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-24831 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-accountant-tax tag-bookkeeping tag-mtd-accountants tag-making-tax-digital-for-income-tax tag-need-to-know business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/mtd-and-agentic-ai\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media card-post__media--video\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1325244864-684x384.jpg\" class=\"card-post__image\" alt=\"An accountant using agentic AI\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1325244864-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1325244864-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1325244864-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__play-video\">\n\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" class=\"card-post__play-icon svg-icon\" width=\"28\" height=\"28\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 33 36\"><path d=\"M3.947.936C1.889 1.016 0 2.661 0 4.878v27.11c0 2.956 3.36 4.896 5.999 3.463l24.965-13.555c2.715-1.474 2.715-5.451 0-6.925L6 1.416a3.96 3.96 0 0 0-2.052-.48Zm.032 2.6c.232-.001.475.058.713.187L29.66 17.28c.986.535.986 1.774 0 2.309L4.692 33.144c-.952.517-1.999-.088-1.999-1.155V4.878c0-.533.261-.95.642-1.17.19-.11.411-.171.644-.172\" \/><\/svg>\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 24 24\"><path d=\"M5.25 3C3.74 3 2.5 4.24 2.5 5.75v12.5C2.5 19.76 3.74 21 5.25 21h14c1.51 0 2.75-1.24 2.75-2.75V5.75C22 4.24 20.76 3 19.25 3zm0 1.5h14c.699 0 1.25.551 1.25 1.25v12.5a1.24 1.24 0 0 1-1.25 1.25h-14A1.24 1.24 0 0 1 4 18.25V5.75c0-.699.551-1.25 1.25-1.25m.25.75a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8.25 2.751A1.248 1.248 0 0 0 9 9.251v5.5c0 .442.231.849.613 1.074.389.231.846.237 1.239.021l5.001-2.751c.396-.219.646-.639.646-1.094s-.25-.876-.646-1.095l-.001-.001-5.002-2.751a1.25 1.25 0 0 0-.601-.153zM5.5 8.25a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-8 1.423L14.731 12 10.5 14.328zm-5 1.577a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm-13 3a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5H6a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5zm13 0a.5.5 0 0 0-.5.5v.5a.5.5 0 0 0 .5.5h.5a.5.5 0 0 0 .5-.5v-.5a.5.5 0 0 0-.5-.5z\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-10-15T12:04:04+01:00\">15 October, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow agentic AI is changing accounting compliance\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you are a small business, there are so many things to think about, including: With all this going on, it can be difficult to find the time to keep up with financial reporting responsibilities and maintain accurate balance sheets. A&nbsp;balance sheet&nbsp;is a business statement that shows what the business owns (assets), what it owes [&hellip;]<\/p>\n","protected":false},"author":1398,"featured_media":0,"template":"","meta":{"_sage_video":false,"footnotes":""},"tags":[23,135],"class_list":["post-4124","sage_glossary","type-sage_glossary","status-publish","hentry","tag-bookkeeping","tag-business-finances"],"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/sage_glossary\/4124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/sage_glossary"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/sage_glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/1398"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/sage_glossary\/4124\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=4124"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=4124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}