How to Make a Balance Sheet for a Startup Company
Balance sheets show the amount of debt, assets and net worth of a business. Initial, or opening, balance sheets should contain a list of assets and debt the company had when starting out, along with an estimate of net worth. Maintaining a balance of assets and debt helps a business remain profitable. Startup companies can also compare future balance sheets with the initial balance sheet to identify financial trends. Understanding monetary fluctuations within a business helps owners find ways to decrease debt and increase assets and profits.
Determine a date to create an initial balance sheet when writing your business plan. This date may correspond with the first day of business, last day of the first business quarter or some other date significant to your business. Choosing a specific date allows you to gather and organize materials sales receipts, invoices and business banking statements needed to create a balance sheet.
List all business assets, such as startup capital, equipment, materials and property the business currently holds. Use sales receipts and business banking statements to determine the cost of equipment, materials and cash.
List all liabilities, including business loans, employee salaries and unpaid business accounts for vendors and suppliers. Use loan statements, payroll sheets, sales sheets and invoices to determine liability costs.
Subtract the amount of liability from the amount of total assets to determine the net worth of the business.
- Create quarterly or yearly balance sheets to track assets and liabilities.
- Do not rely solely on balance sheets to make important financial decisions concerning your business. Income statements, industry reports, marketing analysis, profitability ratios and other financial information are necessary to make good business decisions.
Based in the Washington metro area, Jessica Jones has been a freelance writer since 2006, specializing in business topics. Her fiction has also been featured in publications such as "The Jamaican Observer Sunday Literary Supplement" and at websites including HackWriters. Jones earned a Master of Fine Arts in fiction writing from Lesley University.