The balance sheet is part of the double entry bookkeeping method that dates back to the 14th century. Producing and understanding a balance sheet is a complex matter to be undertaken only by those who have a grounding in accountancy.
The balance sheet is where the calculated totals of the bookkeeper's work are brought together with a number of fairly notional figures for depreciation/appreciation of stock, equipment, buildings, land, certain taxes and liabilities and so forth. To the experienced a balance sheet can show the worth of a company. A person needs to be formally taught the process of producing a balance sheet.
For most people most of the time when a business is not either a limited company or a limited partnership and there are minimal assets the balance sheet is an unnecessary expense and a Trading and Profit and Loss Account will suffice.
Answers & Comments
The balance sheet is part of the double entry bookkeeping method that dates back to the 14th century. Producing and understanding a balance sheet is a complex matter to be undertaken only by those who have a grounding in accountancy.
The balance sheet is where the calculated totals of the bookkeeper's work are brought together with a number of fairly notional figures for depreciation/appreciation of stock, equipment, buildings, land, certain taxes and liabilities and so forth. To the experienced a balance sheet can show the worth of a company.
A person needs to be formally taught the process of producing a balance sheet.
For most people most of the time when a business is not either a limited company or a limited partnership and there are minimal assets the balance sheet is an unnecessary expense and a Trading and Profit and Loss Account will suffice.