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How gini's small business balance sheet template can substantially improve your efficiency

Screenshot of google sheet balance sheet chart and account breakdown

How gini's small business balance sheet template can substantially improve your efficiency

Knowing how to maintain your expenses, cut down overheads, and increase your net profit is essential in any form of business. Yet, business owners get rushed into inefficient and manual ways without exploring other options. Essential services and tools such as an automated balance sheet template are necessary for efficient working.

You can get access to an easy and helpful tool to manage your small business finances with a simple balance sheet template.

This is where gini's balance sheet template can help any business owner understand the strengths and weaknesses of their business. 

What is a balance sheet template?

To understand how a balance sheet template works, it is essential to have a clear understanding and information about balance sheets. A financial statement containing an individual or company's assets, liabilities, and shareholder's equity is known as a balance sheet.

Balance sheets are an important presentation of what a company owns and owes during a specific time. It is usually called the financial period.

The balance sheet is also called a snapshot or statement of the financial situation of a business or company. A balance sheet can reflect the number of assets and liabilities after the accounting period of 12 months ends.

 It is a fully customizable Google Sheet model or report for a balance sheet that you can duplicate and manually edit. It serves as a foundation to build your company's financial statements. Income statements, cash flow statements, and balance sheets work together to help business owners evaluate their business per the financial model. 

Uses of a balance sheet template

A balance sheet template has several uses and benefits. Some of them are listed below, so you can get an idea about them and create your balance sheet template for a small business or a company:

  • Learning and understanding a balance sheet template allows us to ascertain equity worth with the help of assets and liabilities.
  • Investors can see a company's financial progress and value by analyzing its balance sheet template.
  • A balance sheet template can show the future sustainability of a company. You can get an idea by looking at the balance sheet template of a specific company and whether you should invest your money or assets in it or not.
  • A balance sheet template presents you with the possible issuance of your share. It means you can have the balance of profits and expenses of your claims that you can also invest.
  • A balance sheet template is an excellent tool for business owners and finance teams to efficiently prepare the balance sheet and other financial statements

Primary parts of a balance sheet template

So what does a balance sheet show? The typical balance sheet template includes three basic parts: assets, liabilities, and equity.

1.  The assets

A business's assets is any resource that has a financial value. An individual or company has ownership or control and can sell it in exchange for money.

Assets in a balance sheet template can be split into two categories: Current and fixed assets.

Current assets

Current assets, usually referred to as liquid assets, are short-term assets. The individual or company has to act as these assets, such as convert them into cash, use them by any means, or sell them within the first fiscal year. There are seven types of current assets:

  • Cash and cash equivalents
  • ​​Marketable securities
  • Accounts receivable
  • Inventory
  • Supplies
  • Prepaid expenses
  • Other liquid assets

Fixed or non-current assets

Non-Current assets provide long-term benefits to an individual or company. These long term assets have a valuable life of up to one year, such as property, tools, vehicles, and furniture. The owner of a fixed asset uses it to generate revenue and produce valuable goods. Eventually, they will fulfill their investment purposes. There are mainly two types of non-current assets.

  • Tangible assets
  •  Intangible assets

2.  The liabilities

Liabilities in the balance sheet template are anything that costs an individual or company any value or expense. All expenses and costly matters that are still in process and you haven't paid them yet count in liabilities. You can take examples of mortgages, unpaid bills, and the amount of money you owe to someone also included in liability.

Current liabilities

The company must pay its short-term liabilities within a typical financial year. For example, income taxes, rental fees, payroll taxes, and utilities are part of the company's current liabilities.

Non-Current liabilities

As the name suggests, non-current/long term liabilities can change at any time. The company or an individual has to manage his financial imperative for more than a year.

3.  The owner's equity

When all the liabilities (current & non-current) are subtracted from the assets (current & fixed), the remaining belongs to the owner and is called owner's equity. Equity in accounting and finance has two elements: Share capital and retained earnings.

Share capital

Share capital is the amount of money an individual or company invested in a business. These investments are called preferred shares and also common shares. Moreover, the exchange of selling shares and raising funds between a company and its investors is also called share capital.

Retained earnings

The second half of the owner's equity is retained earnings. It is the profit an individual or company gets after subtracting all liabilities, such as income taxes and share capital. The company uses this profit to strengthen its business and invests in marketing and new equipment.

Types of balance sheet template

Financial reporting in accounting and finance typically has two general formats: Report format and account format. Both forms of a balance sheet template have similar content but different settings.

Report form (vertical presentation)

This form of balance sheet template is popular with standard balance sheets. All the information about a company's assets, liabilities, and equity is part of the vertical form.

Account form (horizontal presentation)

The account form of any balance sheet is opposite to the report form. The presentation of assets on account format is on the left side. In contrast, the proportion of equity and liabilities is on the right.

How does a balance sheet template work?

A balance sheet summarizes an individual's assets, liabilities, and equity over a specific time. The complexity of a balance sheet depends on the scale of a business. A simple balance sheet template is more likely to be drawn by individuals and small business owners. On the other hand, large enterprises prepare complex business balance sheet templates and present them in their annual report.

A typical balance sheet with proper management follows a simple accounting equation where the total assets are equivalent to the sum of total liabilities and full owner's equity.

The simple accounting equation: Assets = liabilities + owner's equity

There are three states of a company under the accounting equation of a balance sheet template.

  •  A company with a one-to-one financial ratio between its liabilities and assets will grow with great shareholder's equity.
  • A company that has more liabilities than its assets will likely fall at risk of taking a debt. Eventually, the debt-to-equity ratio will increase, resulting in trouble and great loss. 
  • A company with more assets and less liability score is more likely to spend more equity and investment on its products and services and eventually succeed.

How to use the gini balance sheet template?

Using the gini balance sheet template is easy and accessible. It will help you build your business's financial statement by calculating your assets, liabilities, and owner's equity.

Follow the given steps to use the gini balance sheet template:

  1. Sign up or sign back in to the gini Webapp.
  2. Head to the "Apps" page. Connect your accounting software to our web app either Quickbooks or Xero, or both if needed, and then connect to Google sheets.
  3. Head to the "Dashboard" page and select "Balance Sheet Report"
  4. Select the organization for which you want to create a dashboard. Click "Create report"
  5. And that's it! Once the flow is created, you will find the report under "My flows" on the "Dashboard" page. Just click "Open flow"

  6. We have a sample balance sheet which you can preview here.

Benefits of using the gini balance sheet template

Here are some primary benefits of the gini balance sheet template for your businesses

  • Help you improve the financial condition of your business
  • No more manual entry in creating a comprehensive balance sheet
  • Lenders are interested in viewing the balance sheet so they can get to know about the debts and liabilities your company has managed over time. Also, investors determine the risk factors through the balance sheet. So your gini balance sheet template will present how well your work repays debts and payments.
  • The gini balance sheet template presents a scannable list of your business's liabilities and assets. So you can make a comparison and ensure that your business will cover the necessary business obligations, whether short-term or long-term.
  • Analyze business effectively and efficiently
  • Through the gini balance sheet template, you can financially analyze your business in great depth. Productivity, liquidity, and solvency can be analyzed by comparing your equity, assets, and liabilities. You can forecast your business's future because the figures on the balance sheet uncover many accounting ratios.
  • Keep track of your finances and use those insights to make better decisions for the future of your company.
  • You can pinpoint the risks, issues, or trouble points and solve them before any serious problem. Also, a regular update on the balance sheet will be good for maintaining your business's budget.

Create a balance sheet template & maintain your business expenses

Although you have excellent knowledge of your small or large business, you must know about balance sheet templates. It will give you an overview of your investments, profits, and debt-to-equity ratio.

In addition, you will get to know about your business weaknesses and strengths. With the help of this article, get to know about the balance sheet template, maintain your business finances, and get ahead of the curve

P.S. We also have an income statement template, which you can preview here.

Final words

As a founder, you may lack the requisite educational background and skills to navigate business financial accounting. Hiring a chief financial officer or outsourcing to other finance professionals may put a strain on your budget.

At gini, our mission is to simplify business financial accounting for founders so they can easily set and reach their financial goals. We also have other templates that make tracking and managing your business finance easy. 

Cash Flow Forecasting Xero
Ray Wyand, CEO of gini
Why I write content :

It’s time for me to shamelessly ask for your support. Our company is dedicated to the idea that finance should be simple, easy and fair for everyone.

To deliver that, we’ve built a financial tool that helps small businesses to save time, optimise cash flow, and access growth capital. We’ve priced it at $40USD a month to make it accessible for everyone - but I’d appreciate your help getting the word out in your company.

  • For founders we can give  real time insight into the financial health of your company and help them to access growth capital
  • For in house finance teams, we can get you promoted by helping you to automate your most manual processes and helping you  create reports your managers will love
  • For investors, we can help you underwrite better, faster & fairer whilst also helping your portfolio automate their reporting in real time
  • For accountants & book-keepers, we can increase your margins through automation and value added services that help your clients to grow

If you know any of these people - please email me at ray@gini.co

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