The balance sheet shows the financial position of a business at a specific point in time, for example, the last day of the month or the year. More on dates
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Date range: |
What it shows: |
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Today |
Balances as of today’s date, including today |
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Last Week |
Balances as of the end of Sunday of last week |
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Last Month |
Balances as of the end of the last day of the previous month |
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Last Quarter |
Balances as of the end of the last day of last quarter |
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Last Fiscal Year |
Balances at the end of last fiscal year |
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Custom |
Balances as of the end of the day you select |
Business owners use this report to see the company’s financial health by looking at the “accounting equation,” which is the backbone of the double-entry accounting system. The accounting equation is defined as:
Assets = Liabilities + Equity
Assets are what you own. Liabilities are what you owe. Equity is your investment in the company.
The total assets include current assets, other current assets, fixed assets, and other assets. The total liabilities include current liabilities, other current liabilities, long-term liabilities. The total equity includes all equity accounts. The total assets must equal the combined value of your total liabilities plus owner's equity—that’s why it is called a “balance” sheet.
About assets, liabilities, and equity