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Balance Sheet

A balance sheet keeps track of itemised money levels at a particular point in time.

What is a Balance Sheet?

A balance sheet holds the values of stored surpluses and outstanding debts in their various forms.

What does a Balance Sheet Contain?

Balance sheets lists the assets and liabilities and their tally is the net equity.

 

A balance sheet is a simple table that shows you very quickly your account balances. It can show as little or as much detail as you desire.

 

Balance sheet entries may include a bank account, a credit card, a personal loan, a loan to someone, even the mattress in your bedroom if you happen to store your money there. Balance sheet entries may be liquid, or converted to less liquid forms like appreciating assets, or worse, depreciating assets.

How a Balance Sheet can Benefit You?

If you chose to spend less than you earn, then your are effectively storing past effort for future use.

 

If you have a poor balance sheet, focus on increasing and maximising cashflow.

If you keep losing equity then focus on risk management, and protecting your balance sheet.

Download a Sample Balance Sheet

Have a look at the detailed balance sheet for an interactive view (Click to Save - Detailed Balance Sheet).

Simple Balance Sheet

 

A Simple Balance Sheet

 

Further Reading

Balance Sheet (wikipedia)