The Balance Sheet presents a snapshot of your financial standing. While the Income Statement shows a specific period of time, the Balance Sheet shows you the value of your business in an exact moment.
The Balance Sheet is called such because it expresses a “balanced” accounting equation:
Assets = Liabilities + Owners Equity.
(Assets are things you own that have value, Liabilities are amounts that you owe and Owners Equity is the measure of your claim of the business.)
When you’re using ZipBooks, the accounting equation is always balanced. In other words, your liabilities plus your owner’s equity will always sum up to your assets. The Balance Sheet pulls information from all across your account, according to the categories and accounts you set up (and/or the ZipBooks default categories).
To generate a Balance Sheet:
Log in to ZipBooks and select Reports from the menu
Click on Balance Sheet, in the Financial Statements section
Above the Balance Sheet, choose the date (as of what date do you need the report to reflect information)
If desired, indicate any relevant tags, columns, transactions and accounting method
Click Export and choose your desired format.
There you have it! ZipBooks Accountants can also send a copy of the balance sheet to a client as a live report or PDF.