This Balance Sheet Excel Template provides an example of what a balanced statement in excel looks like and is a great foundation to start with in constructing a three statement model or a complete financial model.

What is a Balance Sheet?

Balance sheet, which is also sometimes referred to as Statement of Financial Position, shows a summary of a companies' assets, liabilities, and shareholder equities. It tells about the total assets owned by the company and how they are financed, either through debt or equity. The Statement of Financial Position should always satisfy the following accounting equation: Assets = Liabilities + Shareholders' Equity The Balance Sheet has two sides, with assets on the left side and liabilities and shareholders' equity on the right side. All line items are typically grouped into categories based on liquidity. For example, more liquid accounts on the assets side such as cash, inventory, and accounts payable are grouped under current assets. They are then followed by the illiquid accounts such as property, plant and equipment (PP&E) and goodwill, which are commonly categorized as non-current assets. On the right side, there are current liabilities, non-current liabilities, and shareholders' equity.

Common Balance Sheet Accounts

There are minor differences between the Balance Sheets of various organizations and industries, but there are a couple of frequently used line items which are always included. Below is a list of the most common items you would find on a Statement of Financial Position:

• Cash and Equivalents
• Accounts Receivable
• Inventory
• Plant, Property, and Equipment (PP&E)
• Accounts Payable
• Current Portion of Long-Term Debt
• Bonds Payable
• Long-Term Debt
• Share Capital
• Retained Earnings

Useful Resources

To learn more about Balance Sheet, feel free to check out CFI's complete guide which covers the definition and real-life examples of the Statement of Financial Position. CFI Marketplace also has the other two statements of the important three financial statements, which are free to download:

• Income Statement Template
• Cash Flow Statement Template
• 3-Statement Model Template