Term · Bookkeeping
Balance sheet
An overview of what your business owns (assets) and how that is financed (equity and liabilities) at a given moment, usually the end of the financial year.
The left-hand side shows assets, such as fixtures and equipment, stock, receivables and money in the bank. The right-hand side shows equity and liabilities, such as loans, payables and VAT owed. Both sides are always equal.
Together with the profit and loss account, the balance sheet forms the core of your annual accounts.