Examples of balance sheets

Writing a Business Plan

Examples of balance sheets

- The components of a balance sheet for a business plan

Introduction
Business is all about figures. Financial projections form the core of any business plan. Balance Sheet comes at the end of the three financial statements of a business plan. Balance Sheet can be defined as a financial statement that shows the value of your business at a particular point in time. The Balance Sheet consists of two columns, Assets and Liabilities, which must be equal. Balance Sheet is also known as Statement of Financial Position, Net Worth Statement, and An Assets and Liabilities Statement

Your balance sheet will demonstrate your proper business planning and would give potential investors information as to how and when would you start earning money, break-even and then become profitable. Financial statements and projections should follow Generally Accepted Accounting Standards (GAAP) and should include properly prepared income statements, cash flow statements, and balance sheets.

Financial Projections are usually depicted for a period of 3 - 5 years for the future forecast and 3 years (or since inception if business has been running less than 3 years) in historical data. A balance sheet for a business plan should be broken out by month the first year and annually for each year after.

Examples of Balance Sheet
Unlike other financial statements a balance sheet is created only once a year to calculate the net worth of a business. If your business plan is for a start-up business and is seeking a startup loan, you will need to include a personal balance sheet summarizing your personal assets and liabilities. If your business exists already, include past years' balance sheets up to the balance sheet from your last reporting period.

Many people are looking for examples of Balance Sheet and have a hard time finding the required components. We are providing Examples of Balance Sheet items and how they combine together to build a balance sheet. Our staff can assist you in finalizing your balance sheet for your business plan and investor presentations.

The balance sheet contains assets, liabilities and owner's equity. Assets are anything of value that the company owns used in generating future income. Assets are divided in two categories; current, those used within one year, and long-term or permanent assets held for longer than one year. Current assets are inventory, accounts receivable, and cash. Long-term assets are real estate, plants, buildings and equipment.

Liabilities are debts owed to other companies or individuals. Liabilities are divided into current and long-term. Current liabilities are owed within one year and consist of accounts payable, current portion of long-term debts, and short-term loans. Long-term debts are generally debts incurred to finance long-term assets, such as, mortgages, equipment loans and real estate loans.

Owner's equity or net worth is the difference between total assets and total liabilities. It is the actual equity the stockholders have in the company. The formula for calculating owner's equity is Total assets minus total liabilities.