 |
 |
 |
Download balance sheet template in Microsoft Excel format.
Save Money with Free Balance Sheet Templates
Do you need to create a balance sheet for your company, one that defines your company’s financial position and will help attract investors? Have you considered borrowing from one of the thousands of free balance sheet templates that are currently available online? Creating a balance sheet for the first time can be a daunting task to say the least, but this job is made even more difficult without the proper tools to help you. To assist you with this dilemma, in this article we will briefly explain why creating a balance sheet is such a vital step when attempting to attract new investors, and show you the items/headings to look for when selecting from one of the many free balance sheet templates that are currently available online.
Free Balance Sheet Templates: Why Do I Need a Balance Sheet?
When meeting with investors, there are three key financial statements they will invariably want to review: income statement, cash flow statement and balance sheet. And among these three, the balance sheet is the most crucial. Unlike the other two documents, a balance sheet is a current and detailed list of all your assets, which are shown purposefully in comparison to your company’s liabilities and your current equity. Experienced investors use this current information to analyze the financial strength of your company, its operational efficiency and your debt to equity ratio and to determine whether or not your company represents a sound investment decision.
Free Balance Sheet Templates: A Look at the Required Headings
While there are many, many free balance sheet templates currently available, they are essentially worthless if they fail to include the proper headings and information. These omissions can make your statement look unprofessional or it may indicate to investors that you have something to hide. Therefore, when searching for quality free balance sheet templates, make sure they include at least the following headings:
• Business Name and Details. A good template should have a space where you can list your business name, type of industry, business address, phone number, email address, and website details.
• Date. While the “date” field is an important part of any document, it is especially significant here, as a balance sheet needs to be a reflection of your company’s current financial position.
• Assets. Assets should be listed on the left hand side, along with several subcategories such as cash on hand, accounts receivable, supplies, equipment, land, property, etc.
• Liabilities. Liabilities will be listed at the top of the right-hand column. These entries represent the debts owed by your company to a third party, including bank loans and all other creditors.
• Equity. The “equity” section should appear directly below the third-party liabilities. Here is where you will list your current net worth with respect to your company, including all current stock held and any retained earnings.
Free balance sheet templates can save you from the time and hassle of creating this important document from scratch, but unless it provides space for you to list every category of assets, liabilities and equity, you should continue searching until you find one that does.