Balance sheet template excel and word is the template which is used to record the data into balance sheet the definition of balance sheet is “It is a financial statement which is used to record data of assets (tangible or intangible) liabilities (both long term and short term) and capital use by the company also known as owners’ equity at specific time period” this particular statement is made by every business at any time like quarterly, semi-annually or annually. This statement helps to tell the financial position of the business also known as the Snap-shot of company financial position. It is mandatory for every registered business to make a balance sheet and many other financial statements such as income statement; cash flow etc. in their prospectus so that every investor gets attracted to the company and it also attracts the investing companies.
According to companies ordinance 1984 “maintaining the financial record is mandatory for every business because many cooperate governance gurus say, if the company doesn’t make these statements it means they are tax thief.” So it is compliance. Now in almost the digital firm management concept is applied, so companies use ERP enterprise resource planning system and many accounting and finance software such as SAAP, Oracle, and Quick Books, with the help of software the maintaining of record become easy and the manipulating of data is also a banned for all firms. The digitally financial template is varying from form to firm many firms use American template and many use British template. In below I’ll tell you the advantages and usage of this template.
Download: blank balance sheet template
Advantages of using Balance sheet template format excel and word:
The record keeping is very important for every business and financial record is the backbone of every business so following are the benefits associated with using this balance sheet template format in excel and word:
- Business snap-shot.
- Investors and loans.
- Define priorities outline.
- Leverage Balance sheet.
- Cash transaction.
- Accretive to both GAAP and EPS.
- Manageable social issues.
- Clean the asset quality.
- Efficient operation.
- CFO is capable manager for it.
- Facilitate re-entry.
- Easy to communicate with employees.
- Easy and concise.
- Assets = Liabilities + Shareholder’s Equity, way to learn balance sheet.
Download: balance sheet template word
How to make it:
Balance sheet template is made for your convenience so following are the points that helps to make it and adopt it:
- Date and time period of making balance sheet.
- Amounts clarify in thousand and millions.
- Current assets.
- Fixed asset.
- Current / short term liability.
- Long term liability (more than 1 year).
Share-holders equity/ owner equity.
Date & time period:
As describe balance sheet is made on a specific date and specific time period.
To keep amounts noticeable and countable amounts are united represented by millions and thousands.
On left side asset column is made, in which assets are divided into short-term converted into cash in one year and long-term assets which are converted to cash by taking time more than a year.
Long term and short term liability are written on the right side of the balance sheets. Liabilities are the obligation and debts on any company.
Total assets and liability:
At the end of balance sheet total sum is calculated, and according to the rule of thumb total assets and total liabilities should be same in amount.
In short Balance sheet template format excel and word is very helpful for every business to record its financial record.