What a balance sheet shows
A balance sheet, also called a statement of financial position, is a snapshot of a business on one date. It lists what the business owns (assets), what it owes (liabilities) and the owners' stake (equity).
It always follows one equation: assets = liabilities + equity. If the two sides do not match, something is missing or has been entered in the wrong place.
The five sections, in plain terms
- Current assets: cash, money customers owe you (accounts receivable), stock and anything else you expect to turn into cash within a year.
- Non-current assets: equipment, vehicles, property and other long-term items, shown after depreciation.
- Current liabilities: bills, short-term loans, taxes and wages due within a year.
- Non-current liabilities: loans and other debts due after more than a year.
- Equity: money the owners put in plus profits kept in the business.
For fixed assets, our depreciation schedule generator gives you the book value to enter. For stock, use the inventory valuation calculator.
How to build your balance sheet
Generate manually. Enter your business details, the statement date and your currency, then add each account under its section. Contra accounts, such as accumulated depreciation, go in as negative numbers. You can also fill the downloadable template and import it. When everything balances, export the statement to Excel.
Generate with AI. Upload financial documents such as bank statements or account listings in Excel, CSV or PDF format, or describe your balances in text. AI sorts them into balance sheet categories and we send the result to your email.
What to look for when you read it
Start with liquidity: are current assets comfortably higher than current liabilities? Then look at debt compared with equity, which shows how much of the business is funded by lenders. Comparing balance sheets from two dates tells you whether the business is building value over time.
A balance sheet is most useful next to an income statement, which explains how profit changed equity during the period. Tyms keeps both up to date from your bank feeds, so you never start from a blank sheet.