What is a Balance Sheet?

A balance sheet is a statement that shows the financial assets and liabilities of an organisation.

Current assets include bank accounts, cash on hand, accounts receivables and funds owing to the organisation loaned out.

Fixed assets include depreciable assets such as Equipment, Motor Vehicles etc..

Non-Current assets include investments such as intellectual property, real estate etc… long term assets not easily converted to cash.

Current liabilities include accounts payable, credit cards, GST, PAYG Withholding, Superannuation payable and any debts/loans due in the current financial year.

Non-Current liabilities include long term loans not yet due such as bank loans and equipment finances due over multiple years.  These debts can be split between current and non-current liabilities to show the amounts owing in the current financial year and the balance owing in later years.

The Balance Sheet, at any moment, should show how much money the organisation has left over if all assets were sold and all liabilities were repaid.  This is known as “Owner’s Equity”.