What's a balance sheet?

Understand your company’s financial position

Daphne

Jul 18, 2024

A balance sheet is one of the most important documents in a company’s accounting system. Whether you’re an entrepreneur, a freelancer, or responsible for a foundation or association, understanding your assets and liabilities is essential.

What Is a Balance Sheet?

A balance sheet provides an overview of what a business owns (assets) and how those assets are financed (liabilities). It forms the foundation of your financial administration and, together with the profit and loss statement, gives a complete picture of your company’s financial position.

Key Components of a Balance Sheet

Assets: cash, bank accounts, inventory, buildings, machinery.
Liabilities: debts, loans, equity.
Provisions: future obligations such as pensions or major maintenance.

Example: a starting balance sheet example for a sole proprietorship shows how initial capital and first purchases are recorded.

Types of Balance Sheets and Examples

Balance Sheets for Different Legal Entities

Sole proprietorship balance sheet example: overview of assets and liabilities for an individual business.
Private limited company (BV) balance sheet example: suitable for incorporated businesses.
BVBA balance sheet example: similar to a BV, commonly used in Belgium.
Partnership (VOF) balance sheet example: shows shared assets and liabilities.
Freelancer (ZZP) balance sheet example: simple and clear for self-employed professionals.
Foundation or association balance sheet example: designed for non-profit organizations.
Homeowners’ association (VVE) balance sheet example: for property associations.

Balance Sheets Combined with Other Financial Statements

Balance sheet and income statement example: shows assets, liabilities, and profit/loss together.
Balance sheet profit and loss example: insight into how your business performance affects your balance.
Balance sheet losses and profit example: variation on the above.
Balance sheet depreciation and profit example: accounts for asset depreciation over time.

Balance Sheet in Excel

A balance sheet in Excel is perfect for entrepreneurs who manage their own bookkeeping:

Balance sheet Excel example: ready-to-use templates.
Sole proprietorship Excel balance sheet example: tailored for freelancers and small businesses.
Generic Excel balance sheet example: universal template for all company types.

Specific Balance Sheet Types and Terms

Condensed balance sheet example: quick insight into key figures.
Condensed balance sheet with limited notes example: includes minimal explanations for external reports.
Chamber of Commerce (KVK) balance sheet example: used for business registration.
Tax balance sheet example: fiscally accurate overview for tax reporting.
Provisions balance examples: future expenses such as pensions or maintenance.
Off-balance-sheet obligations examples: commitments like leases or rental agreements.
Assets and liabilities balance example: shows how assets are financed.
Debit-credit balance sheet example: foundation of double-entry bookkeeping.
Depreciation balance sheet example: reflects decreasing asset value.
Goodwill balance sheet example: intangible value of your business.
Financial balance sheet example: full financial overview.
Social balance sheet example: shows labor costs and employee-related obligations.
Classified (staffelvorm) balance sheet example: structured display of assets and liabilities.
Commercial and fiscal balance sheet example: differences between accounting and tax valuations.
Forecast balance sheet example: forward-looking financial planning.

Balance Sheets for Specific Scenarios

Bank balance sheet example: overview of bank accounts and loans.
Business balance sheet example: general overview for commercial enterprises.
Company balance sheet example: total picture of assets, liabilities, and results.
Account balance sheet example: breakdown of general ledger accounts.
Preparing a balance sheet example / setting up a balance sheet example / making a balance sheet example: step-by-step instructions and templates.
Annual report balance sheet example: part of the yearly financial statement.
Baker’s balance sheet examples / filled-in / completed: industry-specific examples.
NV balance sheet example / CV balance sheet example / real company example / economics example: balance sheets for various company structures and industries.
Service business balance sheet example: designed for service-oriented sole traders.
Securities balance examples: shows shares and bonds.
Distribution test balance sheet example: used in financial compliance checks.
“Giving and Taking” (Nagy) balance sheet example / M&O balance sheet example / balance sheet with shares example: practical and educational examples.
Severance BV balance sheet example / limited balance sheet example: specific accounting cases.

Tips for Preparing a Balance Sheet

Use a clear format, such as Excel or bookkeeping software.
Separate assets and liabilities into well-defined categories.
Refer to examples, such as a foundation balance sheet example or BV balance sheet example, to avoid mistakes.
Check depreciations and provisions regularly.
Update your balance sheet periodically, quarterly or yearly, to keep it accurate and up to date.

Conclusion

A well-prepared balance sheet provides clear insight into your company’s financial health and supports decisions about investments, loans, and growth. From a starting balance sheet example to a consolidated balance sheet, there are many ways to organize your finances effectively.

At Finqle, we help entrepreneurs with intuitive tools and templates so you can easily create, analyze, and maintain your balance sheet. Whether you’re looking for a freelancer balance sheet example, a non-profit balance sheet example, or a condensed balance sheet example, there’s always a format that fits your needs.