A Balance Sheet is a statement of the assets, liabilities and net worth of your organization. It is a financial statement that summarizes the financial position of your organization at a specific point in time.
The balance sheet offers the quickest and easiest snapshot of your organization finances. It lists down your organization’s assets and liabilities. Check your balance sheet to get a feel for the financial strength of your organization.
A Balance Sheet consists of three key components: assets, liabilities, and the organization’s net worth or equity. These components provide a snapshot of the organization’s financial position at a specific point in time. The assets represent the resources owned by the organization, while the liabilities represent the debts and obligations. The net worth or equity reflects the residual value of the organization’s assets after deducting its liabilities. Together, these components provide a comprehensive view of the organization’s financial health and help assess its overall financial position