A Balance Sheet report gives you a financial snapshot of your company as of a specific date. It calculates how much your business is worth (your business's equity) by subtracting all the money your company owes (liabilities) from everything it owns (assets):
Assets - Liability = Equity
|Note: The total for equity includes your company's net income for the financial year to date.|
How to run a Balance Sheet report
- Go to Reports.
- Select Balance Sheet.
|Tip: To see a higher-level summary, run the Balance Sheet Summary report instead.|
What is the difference between a Balance Sheet report and other reports?
You may notice that your Balance Sheet report doesn't match your other reports even after making sure that all the filters are the same. There a few reasons why this occurs such as:
- Your Balance Sheet report is a cumulative report that carries a beginning balance.
- In other reports, the date range you set only applies to net income and the specific account you select within the report. (Example: If you have $50 of sales tax in March and $60 in April, the Balance Sheet will show $110 for the sales tax liability account.)
- If the date range for the report is April, it will still show the cumulative total of $110. However, if you select $110, its transaction detail report shows a beginning balance of $50 and then $60 transaction for April.
- In addition, the Sales by Item report will be limited to the date range you set. If you set the report date for April, then it will truly reflect only April and show the $60 only.
Compare your Balance Sheet report and A/R Ageing Summary or A/R Ageing Detail reports
When comparing your Balance Sheet report (Last Year/Accrual) and your A/R ageing summary or A/R ageing detail reports there are some things you should know such as:
- When you compare these two reports, you must specify the correct Ageing Method on the A/R ageing report.
- If you're running the Balance Sheet report for any date in the past, you must select Report date for the Ageing Method on your A/R ageing reports, in order for the Total Accounts Receivable to match on both the Balance Sheet and A/R ageing report.
That's it. You now know all about Balance Sheet reports.