What is a balance sheet for a small business?
A balance sheet is a financial statement showing a business's assets, liabilities, and equity at a specific point in time.
What are the three main parts of a balance sheet?
The three main sections are assets, liabilities, and equity. The basic equation is Assets = Liabilities + Equity.
What is the difference between a balance sheet and a P&L?
A profit and loss statement shows revenue, expenses, and profitability over a period. A balance sheet shows assets, liabilities, and equity at a specific date.
Why does my QuickBooks balance sheet look wrong?
Possible causes include unreconciled accounts, duplicate transactions, incorrect transfers, payroll liability issues, loan recording errors, or old balances that need cleanup.
How often should I review my balance sheet?
Many small businesses benefit from reviewing financial statements monthly, with additional quarterly and year-end comparisons depending on their needs.
Is cash on the balance sheet the same as profit?
No. Cash represents available funds in financial accounts, while profit is calculated from revenue minus expenses over a period.
Can Simon Bookkeeping help clean up my balance sheet?
Yes. Simon Bookkeeping can help review bookkeeping records, reconcile accounts, clean up QuickBooks, and prepare clearer financial reports.
