How to Use QuickBooks Balance Sheet
A balance sheet gives you a broader picture of your company’s net worth at any given time. It shows the company’s liabilities, assets and owner’s equity; it is essential to track the growth of a business. The balance sheet shows you how much investment is worth in your business.
How to Prepare Financial Statements on QuickBooks
QuickBooks allows you to create and print your business’s financial statements from your records without any calculations. It also allows you to adjust the contents and column of the report to show only the information you want. Below are the instructions involved in the preparation of the financial statement so that you will get clear of opening balance Quickbooks.
- Go to your QuickBooks and select reports from the menu and click on the company and financial. Choose the report you want to prepare from the accountant and taxes drop-down lists.
- Input the dates in the designated field and click the modify reports tab.
- Under the display, menu chooses all the items you wish to add to the statements and then click on ok.
- Select print and the save.
Quickbooks is also featured with other powerful functions including Quickbooks balance sheet out of balance, Quickbooks opening balance and Quickbooks opening balance equity, etc.
Features of a Balance Sheet
A balance sheet contains two column statement of the same item that balances each other out. The first column usually contains the assets while the second column contains the lists owner’s equity and liabilities.Assets
Assets include all the items held by the company. It may be in the form of cash or property and are divided into two categories in the balance sheet. The two categories are:
- Current assets: this includes cash (money, deposits), marketable securities (stocks, bonds), account receivable, Inventory (raw materials, finished goods) and prepaid expenses. All the above fall under current assets.
- Noncurrent assets: this includes property (equipment, buildings) and intangible property (copyrights, trademarks).
Liabilities are debts that usually hurt the net worth of the business. Liabilities are of two types:
- Current liabilities: these are liabilities expected to be paid with the year, and it includes payables, accrued expenses, short-term borrowing and unearned revenue.
- Long-term liabilities: this includes mortgages, other loans and bonds.
Owner's equity part of the balance sheet shows the worth of the owner’s interest in the business. Its value is the amount assets exceed liabilities. Owner’s equity is divided into three categories, and they are:
- Capital infused into the business by the owner initially.
- Additional capital infused after the initial one.
- Retained revenue.
Once all the three parts are balanced in your balance sheet, then you know your business is on a healthy financial level.
Best Alternatives to QuickBooks: FreshBooks
Accounting software does more than record your accounting information; it helps to make sure that your company stays on a healthy financial level. It has become a trend that any business who decide to stop using the excel spreadsheets opt for the QuickBooks Instead. However, there are other alternatives which give you the same service and at a lower price. The FreshBooks is one such alternative; it is effortless to use, affordable and gives you access to the top of notch services.Try Freshbooks for Free >>>
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