How to calculate the balance

The balance sheet (or form No. 1, as it is called in the accounting report) is one of the most important reporting documents of the enterprise, which reflects its financial condition in cash for a certain period of time. The asset of the balance sheet reflects data on current and non-current assets, in the liability - capital of the enterprise, as well as its long-term and short-term liabilities.

You will need

Accounting software or reporting forms, general ledger on account balance values.

Instruction manual

1

Fill in the form 1 heading, or enter the data in a computer accounting program.

2

Fill out the first section of the asset - non-current assets. It takes into account: fixed assets of the enterprise, which can be invested in construction, whether it is completed or not, in tangible assets, various assets. These data are entered in the corresponding lines of the finished balance sheet.

3

Fill out the second section of the asset - current assets. Here are taken into account: various stocks of the enterprise, the amount of VAT not yet accepted for deduction, receivables, investments of the company, invested for a short period, free finance and other assets.

4

Fill out the third section of the liability - capital and reserves. It takes into account such types of capital as authorized and additional. Provides data on reserve capital, for example, deferred for future planned costs. This paragraph should also indicate retained earnings.

5

Fill out the fourth section of the liability - long-term obligations. It takes into account: long-term loans, for example, loans. At this stage, obligations to the tax are indicated that were deferred for a number of reasons, as well as other obligations for payments on behalf of the enterprise.

6

Fill out the fifth section of the liability - current liabilities. Here are taken into account: loans and loans taken for a short period, arrears on those, arrears to the founders. The planned revenues, as well as expenses and finances, which are reserved for them, are entered into the balance. Be sure to indicate short-term obligations.

note

The balance is considered to be reduced when the total amount for assets fully corresponds to the total amount for liabilities.

Useful advice

The easiest way to balance is to use specialized accounting software.

• Detailed step-by-step instructions for compiling the balance sheet of the enterprise by sections and lines.
• how to calculate the balance sheet