Balance sheets report a company's assets, liabilities, and equity at a certain time. As a result, these forms assess a business's health, what it owes, and what it owns. In the United States, firms need to maintain a balance sheet for every year they operate. C corporations must also submit one with their tax returns.
On the surface, balance sheets seem like an administrative obligation businesses have to meet. On closer inspection, these forms work with balance sheet software to gauge overall financial performance. To help you, we’ll explain what goes on a balance sheet and how to leverage balance sheets for growth.