hi this is ivan with simple sheets in this video we're going to do a step-by-step tutorial of our
balance sheet template this is one of over a hundred pre-built and smart templates that
we offer click the link in the description and try five free templates before you buy
without further ado let's get started a balance sheet is a financial statement
which shows a company's assets liabilities and shareholders equity and balances them
according to the accounting equation assets equals liabilities plus equity
balance sheets usually are reported by the previous year and the current year
the introduction sheet contains a quick guide defining the elements of the accounting equation
below that we have a customization difficulty an explanation of the sheets that come with
this template and some instructions on how you can utilize this template let's go to the main sheet
the balance sheet is divided into three main parts namely balance sheet information balance sheet
data and balance sheet summary in the balance sheet information you can record the balance sheet
details such as the company name date and the period years it's also here where you can register
the balance sheet categories that you will use for the drop down lists for the balance sheet data
in the balance sheet data you can record your assets
liabilities and equity using the categories that you inputted in the balance sheet information
in here you also have indicators which compare your current year's assets and
liabilities and equity with the previous years lastly we have the balance sheet summary where
you can have an analysis of the previous and current year's financial performance
let's get into how we can actually use this template we first start by putting our
company information such as the name date the previous and the current years to be reported
then we input the categories that will be used for our data we already have some placeholders
here but you can always add or replace these to your needs in the balance sheet data you can start
recording your assets by following the add asset arrow input your asset type by using the drop
down list add a description and input data for the previous year and current year respectively
once done with your assets you can do the same with your liabilities and equity
following the same procedure once done you can have a look in your balance sheet summary
balance sheets are supposed to be balanced meaning both sides of the accounting equation
need to match so in the balance row you can see the difference between the assets and liabilities
and equity side for each year we can see in this example that year 2020 is balanced out
while year 2021 is not there is a discrepancy of 85 dollars
looking at the bottom we can see that total assets are 85 dollars lower than
liabilities and equity from there you can start analyzing where it could have gone wrong
either the assets part is understated or the liabilities and equity part is overstated
we can see we have an entry for other assets charity but forgot to input a value just an
example we have a donation that is exactly 85 dollars so we input it there and now it's balanced
lastly we have a full screen macro button which when pressed hides the ribbon so your worksheet
is larger just a reminder that you can't undo changes done by macros so if you want
to see your weapons again all you have to do is minimize the window and there they all are
manual accounting can be a huge pain but using this template you can work and spot errors more
quickly maximizing the use of your time for your business that's all for this template
if you want to automate your excel processes and enhance your level of productivity simple sheets
advanced templates and university is the best tool out there i'll see you guys on the next
one