What is the Balance Sheet for?
It describes a moment, not a stretch of time. It lists what the business owns, what it owes, and what is left for the owner as at one date. The date is printed under the title. It is built on the equation: Assets equal Liabilities plus Equity. This ensures the statement always balances.
How do I read the asset side?
- Press Balance Sheet under Reports in the sidebar to open the current fiscal year.
- Read Current Assets, which include Cash & Bank, Trade Debtors, prepayments, and Inventory / Stock.
- Read Operating Fixed Assets, noting that Accumulated Depreciation is subtracted to show value after wear.
- Check Total Assets on the heavy line to see everything the business owns on that date.
How do I read the liability and equity side?
- Read Current Liabilities, such as Creditors and customer deposits, then Non-Current Liabilities for long-term borrowing.
- Read Owner's Equity, which includes Capital, Accumulated Profit, and Withdrawal / Drawings.
- Check the Net Profit / (Loss) line, which adds this year's result to equity.
- Verify Total Equity & Liabilities equals Total Assets, indicated by the Balanced badge.
How do I prove the accounting identity?
- Subtract Total Liabilities from Total Assets to find the owner's stake.
- Compare the Net Profit here with the Profit and Loss report to confirm they match.
- Subtract Net Profit from the equity total to see Capital plus Accumulated Profit less Drawings.
How do I export or check figures?
- Press Export CSV at the top right to save a file matching the screen order.
- If a figure looks wrong, open the General Ledger from the sidebar under Books to view postings.
- For Trade Debtors, check the Control reconciliation in Reports.
- For Inventory / Stock, open the Stock module to review valuation and movements.
What this does to your books
This module is read-only. It does not post anything to the accounts. It displays the current financial position based on existing entries.