Difference between revisions of "Balance Sheet"
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'''Definition''' | '''Definition''' | ||
| − | A [[ | + | A [[Balance_Sheet|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 [[ | + | 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 [[ | + | 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 [[ | + | '''How to use the [[Balance_Sheet]]''' |
* Select the Accounts tab | * Select the Accounts tab | ||
| − | * Select the [[ | + | * Select the [[Balance_Sheet]] button |
| − | * The [[ | + | * The [[Balance_Sheet]] Report will display |
'''Set Date''' | '''Set Date''' | ||
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'''Set Departments''' | '''Set Departments''' | ||
| − | A [[ | + | 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 [[ | + | Un-tick the "All" field to select a specific "Department" (Cost Centre) for your [[Balance_Sheet]] Report, if required. |
| − | '''Drilling into the [[ | + | '''Drilling into the [[Balance_Sheet]]''' |
| − | The [[Account]]s that appear in 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 [[ | + | 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 13:58, 21 June 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.
