---
title: How to Set Up a Balance Sheet
description: Assess your business's financial stance with our balance sheet template. Easily track assets, liabilities, and net assets to gauge liquidity and working capital.
---

[Blog](https://businessaustralianews.com.au/blog)

# [How to Set Up a Balance Sheet](https://businessaustralianews.com.au/blog/how-to-set-up-a-balance-sheet)

 Written by [BusinessCorp](https://businessaustralianews.com.au/blog/author/businesscorp) | Dec 21, 2023 4:20:57 PM

A balance sheet shows business assets (what is owned) and liabilities (what is owed) on a particular date. Use our template to create a balance sheet and understand your business's financial health.

### Balances Sheets: Do I need one?

The balance sheet shows a business's financial health at a given time. It lists all the business's assets and liabilities. Net assets at that time are determined after knowing that.

### A balance sheet also helps work out the following:

- working capital – finances that will fund day-to-day operations
- business liquidity – how quickly you can pay your current debts

 

## Current assets

It's possible to convert current assets into cash within one year or less. This includes cash, petty cash, inventory, and prepaid expenses.

 

## Fixed assets

Fixed assets are long-term assets a business uses and own in its operations. It can include equipment and tools, furniture and renovations, leasehold, property and land, and vehicles.

 

## Total assets

Total assets are calculated by combining current and fixed assets.

 

## Current/short-term liabilities

Current liabilities, also known as short-term liabilities, must be paid within a year. This includes accounts payable, credit cards payable, interest payable, accrued wages, and income taxes.

 

## Long-term liabilities

Long-term liabilities are due after a year or longer. This includes loans.

 

## Total liabilities

Total liabilities are calculated by combining short and long-term liabilities.

 

## Net assets

Net assets are calculated by subtracting total liabilities from total assets.

Having the balance sheet set up is important for a business. Still, there are a lot of moving parts that need to be done in getting a small business up and running. 

[View full post](https://businessaustralianews.com.au/blog/how-to-set-up-a-balance-sheet)

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