Difference between revisions of "Balance Sheet"
From TrueERP wiki
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'''Definition''' | '''Definition''' | ||
| − | A balance sheet is a statement of the total assets and liabilities of an organisation at a particular date - usually the <br>last date of a financial or accounting period. | + | A [[balance sheet]] is a statement of the total assets and liabilities of an organisation at a particular date - usually the <br>last date of a financial or accounting period. |
The balance sheet is split into two parts: | The balance sheet is split into two parts: | ||
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(2) A statement showing how the Net Assets have been financed, for example through share capital and retained <br>profits. | (2) A statement showing how the Net Assets have been financed, for example through share capital and retained <br>profits. | ||
| − | Legislation requires the balance sheet to be included in the published financial accounts of all limited companies. In <br>reality, all other organisations that need to prepare accounting information for external users (e.g. charities, clubs, <br>partnerships) will also produce a balance sheet since it is an important statement of the financial affairs of the <br>organisation. | + | Legislation requires the [[balance sheet]] to be included in the published financial accounts of all limited companies. In <br>reality, all other organisations that need to prepare accounting information for external users (e.g. charities, clubs, <br>partnerships) will also produce a [[balance sheet]] since it is an important statement of the financial affairs of the <br>organisation. |
| − | A balance sheet does not necessary "value" a company, since assets and liabilities are shown at "historical cost" <br>and some intangible assets (e.g. brands, quality of management, market leadership) are not included. | + | A [[balance sheet]] does not necessary "value" a company, since assets and liabilities are shown at "historical cost" <br>and some intangible assets (e.g. brands, quality of management, market leadership) are not included. |
| − | '''How to use the Balance Sheet''' | + | '''How to use the [[Balance Sheet]]''' |
| − | * Select the Accounts tab | + | * Select the Accounts tab |
| − | * Select the Balance Sheet button | + | * Select the [[Balance Sheet]] button |
| − | * The Balance Sheet Report will display | + | * The [[Balance Sheet]] Report will display |
'''Set Date''' | '''Set Date''' | ||
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'''Set Departments''' | '''Set Departments''' | ||
| − | A Balance Sheet can be obtained for each or all departments or Cost Centres within your Company Database. The <br>Balance Sheet will open by default to display "All" Departments (Cost Centres). | + | A [[Balance Sheet]] can be obtained for each or all departments or Cost Centres within your Company Database. The <br>[[Balance Sheet]] will open by default to display "All" Departments (Cost Centres). |
| − | Un-tick the "All" field to select a specific "Department" (Cost Centre) for your Balance Sheet Report, if required. | + | Un-tick the "All" field to select a specific "Department" (Cost Centre) for your [[Balance Sheet]] Report, if required. |
| − | '''Drilling into the Balance Sheet''' | + | '''Drilling into the [[Balance Sheet]]''' |
| − | The | + | The [[Account]]s that appear in the [[Balance Sheet]] that display an Account Balance (Accounts that are not Header <br>Accounts), can be drilled into, to reveal further detail. This will open the Balance Transaction List of the related <br>transactions pertaining to that [[Account]]. |
'''Refresh''' | '''Refresh''' | ||
| − | The Refresh button will refresh and update the page with the latest information available. This is important if other <br>users have entered transactions into your ERP database while you have your Balance Sheet open.<br> | + | The Refresh button will refresh and update the page with the latest information available. This is important if other <br>users have entered transactions into your ERP database while you have your [[Balance Sheet]] open.<br> |
Revision as of 10:05, 9 March 2011
Overview
Definition
A balance sheet is a statement of the total assets and liabilities of an organisation at a particular date - usually the
last date of a financial or accounting period.
The balance sheet is split into two parts:
(1) A statement of fixed assets, current assets and the liabilities (sometimes referred to as "Net Assets")
(2) A statement showing how the Net Assets have been financed, for example through share capital and retained
profits.
Legislation requires the balance sheet to be included in the published financial accounts of all limited companies. In
reality, all other organisations that need to prepare accounting information for external users (e.g. charities, clubs,
partnerships) will also produce a balance sheet since it is an important statement of the financial affairs of the
organisation.
A balance sheet does not necessary "value" a company, since assets and liabilities are shown at "historical cost"
and some intangible assets (e.g. brands, quality of management, market leadership) are not included.
How to use the Balance Sheet
- Select the Accounts tab
- Select the Balance Sheet button
- The Balance Sheet Report will display
Set Date
Select the 'As of' date you require (top right)
Set Departments
A Balance Sheet can be obtained for each or all departments or Cost Centres within your Company Database. The
Balance Sheet will open by default to display "All" Departments (Cost Centres).
Un-tick the "All" field to select a specific "Department" (Cost Centre) for your Balance Sheet Report, if required.
Drilling into the Balance Sheet
The Accounts that appear in the Balance Sheet that display an Account Balance (Accounts that are not Header
Accounts), can be drilled into, to reveal further detail. This will open the Balance Transaction List of the related
transactions pertaining to that Account.
Refresh
The Refresh button will refresh and update the page with the latest information available. This is important if other
users have entered transactions into your ERP database while you have your Balance Sheet open.
