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Balance Sheet Basics


What does that final section of your balance sheet mean? This final Equity section will vary depending on the type of entity your business is set up as. To put it simply: Assets - Liabilities = Equity Keep in mind that your balance sheet represents one date in time. The figures represent balances, and since the balances change daily, a balance sheet only represents one point in time. This contrasts with your income statement, which covers a period of time and has a “from” date and a “to” date, such as one month or a year. This is important to keep in mind when evaluating the information contained in a balance sheets! If you need help with your business basics, reach out to us! We can set up a free no obligation phone call, to assess if we could help with your bookkeeping, invoicing, accounts and more! Our clients are nation-wide and range in size from just two employees right up to large corporations. With a focus on equestrian businesses as well as small to medium sized law offices, we're uniquely positioned to give you truly personal attention no matter what!


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