Balance sheet builder

Balance sheet example

Assets = equity + non-current liabilities + current liabilities

Non-current assets are generally used for more than one year, such as furniture and equipment. Enter book values after recorded depreciation. Inventory and receivables are current assets. Bank and cash amounts should match the balance-sheet date. Do not count an asset again under another item. A bank overdraft is a liability rather than a positive bank balance.

Equity and liabilities

Equity is the remaining amount after subtracting liabilities from assets and can be negative. For a sole trader, profit, owner contributions and withdrawals change equity. Distinguish obligations due within one year from longer-term debt. The portion of a loan repayable during the next year may therefore be classified differently from the remaining loan balance.

Why does my balance sheet not balance?

An imbalance can come from missing items, reversed signs, double-counted values or profit not yet transferred. Rekenbox displays the difference instead of silently adjusting equity. Check reconciliation with bank, receivables, payables and the trial balance first. The simplified inputs group current liabilities together; include taxes, premiums and other relevant debts in that figure before reviewing the balance sheet.

Income statement example

The balance sheet is a snapshot, while an income statement describes income and costs over a period. Revenue of €60,000 less €42,000 of costs gives €18,000 profit. Profit can increase equity but does not automatically equal bank cash: outstanding invoices and investments affect cash movements. Use an XAF export in the financial overview for actual ledger movements, or a budget for future months. Retain the underlying ledger and reconcile bank balances before sharing this snapshot.