Financial statements are routine in the business world. They serve the company to fulfill its legal obligations, but also to make strategic decisions regarding its assets. This is why it is important to know how to make a balance sheet; it is one of the most significant accounting reports.
Do you need to consult about financial statements of your company? Contact our accounting Thailand professionals today.
What is balance sheet?
At the end of any action, it is interesting for the company to “take stock” of its activities, from this it is essential for an entrepreneur to know how to make a balance sheet.
This is how in marketing, for example, it evaluates the results generated by an advertising campaign to optimize future strategies. And this is also the way in accounting, which evaluates the assets and costs of the past period to project the future of the company.
How to make a simple balance sheet?
To learn how to take a balance sheet, you first need to know the structure of this report. It consists of two parts, which present the survey of the company’s assets and liabilities.
Assets are everything the company has, including assets and rights, and applications that can bring economic benefits. For this part of the report, you must list the following items:
– Current assets – trade accounts receivable, taxes recoverable, inventory items, expenses of the following year, etc.;
– Non-current assets – credit to partners, permanent investments, land, machinery, equipment, intangible assets, etc.
Liabilities are the company’s financial obligations to the government, other companies and their employees. At this time, regarding how to take a balance sheet, you should list the following items:
– Current liabilities – accounts payable to suppliers, labor obligations, tax obligations, loans, financing, etc.;
– Noncurrent liabilities – long-term loans and financing, long-term payables, long-term labor contingencies, etc.