What line items do I need on my balance sheet?

You should probably check with your accountant or bookkeeper for their recommendation. The list of line items shown below are a great starting point on what you need on your balance sheet. If you don’t see a line item you need, click on the “Add or remove assets/liabilities/equity” link.

What do the line items mean?

Assets:

Cash on hand: Any money your business has direct access to.  That would include all cash + money in the bank.

Accounts Receivable from FreshBooks:  The value of your outstanding invoices as of the balance sheet date.  This does not include any invoices that are still in “draft” status.  FreshBooks will populate this value for you, but you are welcome to change it.

Accounts Receivable from other Sources:  Any outstanding money you are expecting to be paid from sources outside of FreshBooks.

Inventory: Goods and materials that a business holds for the ultimate purpose of resale.  Inventory does not count any items that you have already sold.

Equipment:  Any tangible items of value that you have purchased for business purposes, but that you are not selling.  Check out this FAQ post for more examples.

Reimbursable expenses: Any expenses that you purchased that you will be reimbursed by another party.  An example of this would be gas required to travel for business purposes.

Liabilities

Accounts Payable: Money that you owe to other parties for reasons other than a loan.  An example of this would be a received invoice that you have not paid yet, for a service such as advertising, or electric/telephone bills.

Taxes Payable: Taxes that you owe the government.

Current Loans Payable: The value of any loans from banks/investors that you have not paid back yet.

Long Term Loans Payable: Any long-term loan that you have not paid off yet.

Credit Cards Payable:  The value of your business’ unpaid credit card debt.

Equity:

Owner’s Capital: Owner’s investment into the company plus the net income earned by the company, minus any withdrawals made by the owner.  Note: The owner’s bank account and the business bank account are separate entities.

Retained earnings: Net income which is retained by the corporation rather than distributed to its owners as dividends.

 

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