Balance Sheet

Balance Sheet

Module 10: Balance Sheet

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🎯 Our goal in this module is to introduce you to the Balance Sheet as a tool for keeping track of how well your business is doing over time.

The Balance Sheet works like this:

Assets
- Liabilities
Net Worth
🔎

Balance Sheet:

Assets (what you own)

Minus Liabilities (how much you owe)

Equals Net Worth or Equity (can be positive or negative)

The Balance Sheet will show you how much you own and how much you owe at any point in time. It’s a statement of your company’s financial position at a specific point in time—usually at the end of a month, quarter, or year.

The profits and/or losses that your company generates are calculated on the Profit & Loss Statement, and then they are recorded on the Balance Sheet, which will either increase or decrease your financial position.  

(Profits add to the Net Worth of your business while Losses subtract from the Net Worth of your business)

💡

When your company makes a profit, you can choose what to do with that money:

  1. Keep the money in the company and use it for growing your business.
  2. Pay down your debt (money owed by the company).
  3. Pay yourself and other owners of the business.

If you are generating enough profit, you can do all three of these things with all that money! 🥳

⚡Action Step

Create your Balance Sheet in our Financial Projections template.

We are currently creating additional instructions and tutorial videos demonstrating exactly how to do this.  Stay on the lookout.

When you have completed your Financial Projections, you’ll put them in the Appendix section of your Business Plan—we’ll show you how to do this in our upcoming modules.

🗂️ Resources

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Scroll left-to-right across the table below to view all columns. Click on any item in the leftmost column to open that specific resource page.

ItemTagsURLPriceDescription
Business Plan Core Template
Business PlanBizActually
Free
A no-frills Business Plan template in Google Sheets. (Created by our Team)
Financial Projections
FinancialsCash FlowProfit & LossBalance SheetBreak-EvenBizActually
Free
A Google Sheet to organize and calculate your financial projections. (Created by our Team)

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© 2022 Terry Cornelison | DIY Startup Bootcamp is a BizActually.com initiative.