Docs
Balance Sheet report
A snapshot of your company: what you have, what you owe, and what is actually yours.
What is the balance sheet?
A picture of your company at a moment in time: what you have (assets), what you owe (liabilities), and what is actually yours (equity).
Where to find it
Reports → Financial Reports → Balance Sheet, or /dashboard/reports/balance-sheet.
Permission: reports:balance_sheet.
The three sections
Assets — what you have
Cash · bank · receivables (money your customers owe) · inventory (your stock at cost) · any other assets.
Liabilities — what you owe
Payables (money owed to suppliers) · accrued expenses · any other obligations.
Equity — what is yours
Owner's capital · retained earnings.
The equation
assets = liabilities + equity
If your balance sheet does not balance, the problem is in the setup rather than the report. Open the trial balance first — usually an account has the wrong normal balance, or entries are missing because the chart of accounts was incomplete.
The difference from Profit and Loss
| Balance Sheet | Profit and Loss | |
|---|---|---|
| Shows you | A moment | A period |
| Answers | Where do I stand now | What did I earn this month |
| Changes | With every movement | With every period |
The two together give the full picture. Profit and Loss tells you that you are earning; the balance sheet tells you where you stand.
How to read it
| What you see | What it means |
|---|---|
| High inventory, low cash | Your money is in stock — check Stock Evaluation and Best Selling Items |
| High receivables | Your customers are not paying — check the Customer Payment Ledger and credit limits |
| High payables | You owe suppliers a lot — check your liquidity |
| Equity growing | The business is growing ✅ |
| Equity shrinking | You are losing money, or drawing more than you earn ⚠️ |
Its accuracy depends on two things
- A complete chart of accounts — without it, entries are missing.
- Accurate stock — inventory value is a major asset line, so wrong balances make the whole statement wrong.
A routine
Open it at least quarterly, and before any dealing with a bank, an investor or an external accountant.
Frequently Asked Questions
What are assets, liabilities and equity?
Assets are what you have: cash, stock, money owed by customers. Liabilities are what you owe: money to suppliers, accrued expenses. Equity is the difference — what is actually yours in the business.
My balance sheet does not balance
If assets do not equal liabilities plus equity, the problem is in the setup rather than the report. Open the trial balance first — usually an account has the wrong normal balance, or entries are missing.
When should I open it?
At least quarterly, and before any dealing with a bank, an investor or an external accountant.
Related Links
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