⚖️ Free Balance Sheet Template

Below is a full balance sheet structure: current and fixed assets, current and long-term liabilities, and equity. Copy it into a spreadsheet, enter your figures, and confirm that Assets = Liabilities + Equity.

The balance sheet is a snapshot of your business’s financial position at a single moment in time. Unlike the P&L (which covers a period), the balance sheet answers: what do we own, what do we owe, and what is left over for the owners? If Assets do not equal Liabilities plus Equity, your books are out of balance and something needs fixing.

Header

Fields	Description
Business Name*	Your registered legal name.
As of Date*	The snapshot date — e.g. “As of 31 December 2026”.
Currency	e.g. EUR, USD, GBP.

Assets (What You Own)

Fields	Description
Cash & Bank*	Money in all bank accounts and on hand.
Accounts Receivable	Money owed to you by customers.
Inventory	Goods in stock ready to sell.
Prepaid Expenses	Costs paid in advance (insurance, rent).
Total Current Assets*	Assets expected to convert to cash within 12 months.
Equipment & Machinery	Owned equipment at cost minus depreciation.
Vehicles	Company vehicles.
Property / Real Estate	Land and buildings owned.
Intangible Assets	Patents, trademarks, goodwill.
Total Fixed Assets*	Long-term assets.
TOTAL ASSETS*	Current Assets + Fixed Assets.

Liabilities (What You Owe)

Fields	Description
Accounts Payable	Money you owe suppliers.
Short-term Loans	Due within 12 months.
VAT / Tax Payable	Tax owed but not yet paid.
Accrued Expenses	Costs incurred but not yet billed.
Total Current Liabilities*	Due within 12 months.
Long-term Loans	Bank loans due after 12 months.
Total Long-term Liabilities*	Due after 12 months.
TOTAL LIABILITIES*	Current + Long-term.

Equity (What Belongs to Owners)

Fields	Description
Owner’s Capital	Money invested by the owner(s).
Retained Earnings	Accumulated profits not yet distributed.
Share Capital	For companies — issued shares.
Current Year Profit	Net profit from this year’s P&L.
TOTAL EQUITY*	Sum of all equity items.

Balance Check

Fields	Description
Total Liabilities + Equity*	Should equal Total Assets.
Balanced?*	Yes / No — if No, find the error before submitting.

How to use

1Pick the snapshot date — usually the last day of your financial period.
2List every asset at its current value: cash at bank balance, equipment at cost minus depreciation.
3Record every liability at the amount you actually owe, not the original loan amount.
4Equity = Total Assets − Total Liabilities — or list equity items and confirm they balance.
5If Assets ≠ Liabilities + Equity, re-check: a missing entry or wrong total is the usual cause.
6Compare balance sheets across periods to see if your business is building or losing value.

Or automate this

A balance sheet that doesn’t balance is the most common — and most frustrating — bookkeeping error. Nika can pull figures from your connected accounts, calculate depreciation, and ensure the equation always holds — from {price} per statement. She balances the books so you don’t chase the penny.

Questions

Why must assets equal liabilities plus equity?

It is the fundamental accounting equation. Every asset is either financed by debt (a liability) or by the owner’s own money (equity). If the two sides do not match, a transaction has been recorded incorrectly — an amount omitted, doubled, or put on the wrong side.

What is the difference between a balance sheet and a P&L?

A P&L covers a period (a month, a year) and shows profitability — revenue minus expenses. A balance sheet is a snapshot at one point in time and shows position — what you own versus what you owe. Net profit from the P&L flows into Retained Earnings on the balance sheet.

Automate with Nika