Connect with us

Business

What is the meaning of a balance sheet? Download your balance sheet for a free template.

Avatar

Published

on

Knowing how to create an accounting balance sheet will aid in getting a better understanding of the state of your company.

It will show you a picture of your liabilities and assets at a specific time. This will allow you to determine if your company has a financially sound situation.

Balance sheet definition

The balance sheet can be described as a financial report which reveals:

  • What assets do you own for your business (assets)
  • the amount your company owes (liabilities)
  • Equity of shareholders (the amount of money that you invest in the equity of shareholders and generated by your company)

The document’s name suggests that each section that comprises your account balance must be in balance. The concept is that the amount your business owes you and its funds on hand are the funds that fund its assets.

The total assets must equal the sum of your equity and liabilities. The formula for your balance sheet that you require is:

Assets = Liabilities + Shareholder Equity

What is a financial statement? Position?

It is also possible to see the balance sheet, also known as a statement of financial situation, that shows the value of a company at a specific date.

A financial statement assists a company in keeping track of its inflows and outgoings.

Balance sheets are one aspect of accounting for business that you can utilize to comprehend your financial standing – other reports to examine are your loss and profit account or cash flow.

What exactly does a balance sheet reveal?

A balance sheet can be useful because it allows you to examine:

the ease with which you can gain access to money by examining your current assets

the amount of financial risk you’re willing to take by comparing equity with your obligations

the efficiency of your company to earn revenue from its assets by looking at your balance sheet concerning your profit and loss accounts

Download the balance sheet template

The assets, liabilities, and shareholders’ equity are reduced more on the balance sheet.

Download the free balance sheet template and cross-check it against terms used within the financial statement so you’re aware of how to complete it.

This document or template is a reference only. It’s no financial guidance. If you are a limited company, you won’t be able to utilize our balance sheet to prepare legal accounts.

It’s best to talk with a professional advisor or accountant about your company’s finances.

How do you interpret the balance sheet?

A balance sheet format typically comprises the company’s assets first, then its liabilities, and finally the equity of shareholders.

It is important to know the distinction between the different types of assets, such as accounts receivable, cash, and inventory (see below), and what they mean to a company’s financial health.

Concerning liabilities On the liabilities side, the most important aspect of being aware is the distinction between the current and long-term.

When looking at a balance sheet, the goal is to determine whether the company’s financials are in balance, in which case the value of assets is the same as the total value of shareholders’ equity and liabilities.

Balance sheet example: assets

It is located to the balance sheet’s left (or the top). You divide what your business owns into current assets and fixed assets.

It’s in the order of liquidity, meaning that those assets you can convert into cash faster are first. Learn more about business liquidity to learn more about the process.

Current assets are those you’ll need day-to-day to run your business. They’ll usually use them in a year (for instance, the funds in your bank account for business).

Current assets comprise:

Cash – This could be cash you’ve got readily available such as an account at your banks, or you’ve got cheques that you have to pay to (a projection of cash flows can help you determine your cash flow inflows and outflows for 12 months)

accounts receivable are the funds that are due by you over the near-term such as outstanding invoices you’ve mailed to clients and customers

inventory – the inventory of your stock of items, works-in-progress, and other items which you’ll sell to your customers (you need to have these items already)

Short-term investment – investments that you can easily change in cash (equities aren’t in this list since their value fluctuates regularly)

In addition, you can pay for energy, rent, and business insurance

Assets that are fixed and longer-term investments. They can appreciate and include assets you have that aren’t tangible, such as intellectual property, customer goodwill, and (your company’s reputation).

Fixed assets are:

Property and equipment: the land, buildings, machinery, and equipment (for example, computers) that you own as a business (be sure to not include equipment as an asset that is currently in use in inventory – it must be included here)

leasehold improvements – these are the changes that you’ve made to the commercial property you lease, such as decorating

Equity and other investments are investments that you cannot convert to cash in a hurry. They are subject to fluctuations in value

less depreciation accrued, which is how you determine whether assets are likely to depreciate in time. For example, if you anticipate an expensive computer to last for five years, you can multiply PS1,500 by 5 to calculate an amortization rate of PS300 per year. There is room to add more assets in our template for a balance sheet, such as intangible assets such as intellectual property.

Balance sheet example: liabilities

Generally, a balance sheet has liability on the left (or at the top). As with assets, you can divide liabilities into current liabilities and long-term ones.

Current liabilities include utilities and rent that will be due within twelve months. On the other hand, long-term liabilities comprise obligations like loans to be paid within 12 months.

In Our balance sheet templates, current liabilities are:

accounts payable – the money your company is owed for the purchase of items and services

Accrued compensation – the money your company owes for products and services you haven’t received and for which you haven’t received invoices until now.

tax payable on income – money that you owe in taxes

Unearned revenue is the money you receive from a client or a customer for work your company hasn’t yet completed

  • other obligations – present liabilities that don’t fall in the above categories.

The long-term liabilities are:

  • mortgage – loans with a long-term term for the land or property your company owns

Other long-term obligations – may include tax-deferred payments and other obligations that aren’t required to repay for a minimum of 12 months.

An example of a balance sheet is “Shareholders’ Equity” (or the owner’s equity)

The balance sheet is beneath the liabilities section. It is the sum of cash generated by your business, namely its net assets.

The formula for the balance sheet in the section described above is

Shareholders’ Equity = Total Assets – Total Liabilities

On our balance sheet template, you will find this section:

capital stock shares that a company owns and sells (essentially, it’s a liability as this is the amount the company would owe its owners if it were to be sold)

retained earnings are the profits that have been retained by the business instead of being distributed to the owners

If you’re a sole trader or an unincorporated business, You might be thinking about the equity of shareholders. It is the amount you’ll end up with if you choose to stop trading or sell your business assets and settle the liabilities of your business. Our article on business equity contains more details.

In this scenario, capital stock is the amount you put into the company to set it up before you begin to earn profits. Retained earnings are essential “the remainder’ – that’s the money that the company has earned when it’s been in operation, which hasn’t been put into things like paying bills or purchasing items. It can be paid to the sole trader.

Balance sheet and the statutory accounts

If you operate a limited company, the balance sheet is one of your year-end (statutory) balance sheets. The balance sheet must meet accounting standards, and you must speak with your tax advisor or accountant as you will not be allowed to use this template for your balance sheets.

Continue Reading

Business

When Should You Hire A Life Coach? 5 Things To Know

Avatar

Published

on

Life coaches play an important role in the life of many people, but still, the concept is new for others. It is undeniable that they play an important role in life because of the kind of support and mentorship they offer. Hence, if you ever need to reach out to a professional coach, you should not hesitate or shy away from putting such a need forward.

Apart from the basic decision-making capability, a life coach Melbourne can help you to figure out various things that are helpful at different life stages. You cannot do everything on your own in life; having someone with an alternative opinion will benefit you in various ways.

You might be confused about the right time to hire a life coach. So, you can consider hiring a life coach whenever you feel the following.

1. A Lost Feeling With Nowhere To Go

Source: coactive.com

There are many instances in life where you will feel lost in your daily life and feel like you don’t have anything to do or anywhere to go. It is common with young adults during this time; they have many things and thoughts on their plate. When you hire a life coach, they will help you find a way amid your thoughts and help you escape the confused state.

Also, if you think you are walking in an endless tunnel, the coach will help you understand yourself and the things you like, followed by those you don’t. Whenever you want to begin something new or let go of something old, the kind of support that you seek will be provided by a coach.

2. You Are Entering The Self-Doubt Stage

There comes a hard stage in life when people begin to overthink, and their highly emotional state leads them to enter the stage of self-doubt. When you begin to doubt yourself, you need to get reassurance for the same, which helps clarify the present situation in life. Deep down, people tend to know what they want but are confused due to many factors which further push them into a vacuum.

Also, suggestions and recommendations pouring in from all spheres further worsen the situation. Instead of doing anything better, such things harm a person’s personality, and they may reach a position where they cannot decide anything for themselves. In such a situation, you need a life coach to help them realize their dreams and opt for ways to help them reach the set goals and objectives.

3. Lack Of Planning And Implementation

Source: forbes.com

Another hint that you need to know your need to hire a life coach is when you feel there is a lack of planning and implementation. It can be due to any distraction, but the main thing is that you lack the effort needed to meet the goals or objectives you have set for yourself. Having a goal is good but useless if you don’t know how to achieve it.

The life coach can help you with the much-needed guidance that will help you create an action plan to move from where you are and reach the place you have set for yourself.

Many potential people have excellent creative skills, but because of their overthinking and lack of confidence, they tend to give up on this side of theirs. It is the worst that anyone can do with themselves; hence, whenever anyone feels like drowning, a life coach should be reached out. Not only do they help act as a ray of hope amid the darkness, but also, their experience is something that everyone can learn from.

4. Looking For A Career Or Field Switch

Often, there are times in life when people get bored with their routine or feel the absence of that spark, making them feel the fear of competition around them. Also, staying unemployed for a long time pushes them to stay where they are, and they tend to lose interest in everything they once enjoyed or loved.

When you want to break out of your lifestyle and want to do something else, you will get everything you need from the help of a life coach. Whether you want an entirely new business line or want to switch your professional field, the coaches will help you cater to your mind. It is the stage when you need rock-solid support, and the coaches will help you get it in every possible step.

It is a big thing, and having various things in your head is fine. So, you need not avoid it. Doing so can take a toll on your health and, further, worsen your physical and mental well-being. It is better to hire a professional before you worsen your condition and consider the same thing later on.

5. Becoming Forgetful, No Follow-Ups, And Procrastination Mode

Source: prevention.com

When you spot an unusual thing about yourself, like when you begin forgetting your routine activities, it means something is wrong. Many people forget things out of habit, but you should pay heed to it if it is a sudden habit. You need to realize the responsibility, and when you need an external factor for the same, the best way is to go for a life coach.

Also, if you want someone who can help you with your accountability, a life coach is the one who can help you. There are some important obligations that you need to fulfill and help you with the daily dose of motivation. These professionals are the best source for the same.

Also, if you want to focus on your habit of becoming a procrastinator, they will help you. As a procrastinator, you will feel stuck and never move a step toward what you seek. You must have a schedule, consistency, perseverance, and do things on time. Your coach will have everything covered and will never make you feel alone.

Conclusion

You should always seek help when you need it the most. Seeking the assistance of a life coach is a sort of help that will not only shape you into a better human but also help you develop habits that will stay with you for a long. It is a cycle. The way someone helps you will help you inspire the people around you, and they can reach out for help too. It is nothing bad to reach out to a life coach, as they will certainly help you somehow.

Continue Reading

Business

How to Find the Best Trucking Dispatch Software Solution for Your Business

Avatar

Published

on

Trucks are an important part of any successful business, and with trucking dispatch software, you can maximize the efficiency of your fleet’s operations. But how do you find the best trucking dispatch software solution for your business?

In this blog post, we’ll explore the different options available, and help you make the right decision for your needs. So buckle up and join us on this journey to finding the perfect truck-dispatching partner!

Benefits of Trucking Dispatch Software

Trucking dispatch software can be an invaluable tool for logistics solutions in the trucking industry. It enables operators to monitor and manage their fleet in real time and use the software to efficiently optimize vehicle routes and fleet performance. This makes it easier for businesses to save time, reduce costs, and improve customer service.

The advantages of using trucking dispatch software are numerous, some of which include:

  • Improved Efficiency: In the trucking business, one of the primary goals should be making sure deliveries arrive on time and without issues. This is where an efficient dispatch system can help. With features like route optimization, automatic driver reminders, real-time GPS tracking, load scheduling, as well as automated billing capabilities that simplifies invoicing—trucking dispatching software helps increase efficiency throughout the entire process ensuring deliveries reach their destination on time with no delays or issues along the way.
  • Increased Profitability: The main goal of any business is to make a profit. Truck dispatching software helps maximize profits by reducing operational costs associated with fuel consumption and labor costs while increasing efficiency—thereby ensuring maximum profitability in a competitive market.
  • Better Customer Service: A key aspect of any business is how they interact with their customers. With accurate shipment tracking capabilities that provide real-time updates regarding order status, customers will know when their orders will arrive which enhances customer satisfaction levels. Additionally, with automated reminders to drivers about upcoming deliveries helps minimize delays caused due to human error or other unforeseen circumstances.

Features to Look for in a Trucking Dispatch Software

The right trucking dispatch software solution can play an integral role in helping trucking fleets manage their operations, schedules, customer relationships, and other general operational activities. Nevertheless, finding the best solution for your business requires careful consideration of the essential features you should expect from such software.

Firstly, it should be user-friendly and allow for complex fleet operations to run smoothly with accuracy and speed. This means the interface should be straightforward to use and adaptable with customizable dashboard elements that provide a response to your specific needs. Secondly, it is important to look for a platform that offers customer relationship management (CRM) capabilities with automated order entry and real-time communication—allowing drivers and customers to remain connected while they are on the road. The ability to track drivers’ locations in real-time will also help businesses keep their fleets running more effectively by ensuring there are no issues with deliveries or time management during routes.

Additionally, you should consider looking into fleet management features such as:

  • Load tracking capabilities that allow you to optimize load capacity;
  • Live scheduling tools;
  • Route planning tools;
  • Vehicle maintenance reports;
  • Document integration tools;
  • Fuel management features;
  • Document scanning technologies;
  • GPS tracking/geo-fencing abilities;
  • Driver scorecards/performance reporting tools;
  • Plus optimized analytics reporting abilities.

Having such powerful features at your fingertips will give your business better control over fleets’ performances with improved visibility and efficiency in daily operations—ensuring effective customer relationships and better overall service delivery in your business.

Tips for Choosing the Best Trucking Dispatch Software

Source: ratings.freightwaves.com

Choosing the right trucking dispatch software for your business can make a big difference in productivity, efficiency and profitability. Here are a few tips to help you find the one that is best suited to your needs.

  1. Decide what kind of dispatching system you need. Some solutions are better suited for large companies with hundreds of trucks or different routes while others work equally well for smaller operations with only a few vehicles or short hauls. You should also consider other features such as customer service tools, accounting tools and GPS integration which can provide you with real-time insights into your operations.
  2. Consider the pricing structure of the software. Depending on how much you plan to use it, pricing can vary widely between different solutions. It’s important to make sure you find something that will fit within your budget without missing out on necessary features for managing your fleet efficiently.
  3. Check out user reviews from other customers who have used the software before making a final decision. This gives you an idea of how intuitive and reliable the solution really is before committing to it. Look especially at overall customer satisfaction ratings so that you can be confident about picking the right product for your business needs.
  4. Look for a product offering easy implementation so that there is minimal downtime when transitioning from one solution to another. A good provider will provide simple installation procedures along with full training and support to ensure that your team can get up and running quickly and easily with any new technology they may need to use in conjunction with their trucking dispatch system.

Advantages of Using Trucking Dispatch Software

Source: detrack.com

It has become an important tool for businesses in the transportation industry. The right dispatch software can make all the difference in your efficiency, cost savings, and customer satisfaction. It’s essential to understand the advantages of using trucking dispatch software before you decide on one for your business.

Using a cloud-based solution also allows you to access vital data anytime which makes it easier for companies to allocate resources efficiently and keep up with changes in market conditions as they arise. This ensures that customers are always provided with accurate information allowing them to monitor progress without interruption. The end result is a much smoother operation which translates into improved customer service overall.

With so many advantages offered by trucking dispatch software it’s not difficult to see why so many businesses are making the switch from traditional systems toward digital solutions like this one!

Conclusion

Finding the best trucking dispatch software solution for your business requires researching different options and weighing features against price. Ultimately, the best trucking dispatch software will be tailor-made for your trucking business’s individual needs.

Think about what functions are essential to running your business in the most efficient and cost-effective way, then take time to research various products and services. Ensure that you read customer reviews and look out for any information that speaks to product reliability and customer service.

Continue Reading

Business

What Are Self-Service Kiosks & 9 Ways They Can Benefit Your Business

Avatar

Published

on

Self-service kiosks have become popular these days. Various businesses use these devices to make their tasks more convenient. The benefits they provide are numerous. In this article, we will discuss them in detail. Self-service kiosks are the future of businesses. The primary reason behind it is that they help reduce the load of handling loads of customers.

Every company should adopt new technologies to boost its growth. If you remain stuck in the older ones, customers might find another business. The self-service kiosk machine uses new and advanced technology, and therefore, it is an excellent device that might suit your business needs.

These devices offer customers whatever service they need without any problems. They do these tasks effectively and efficiently. That is why more and more companies are now using these machines to improve their performance.

Before buying these machines for your company, it is essential to understand their uses. They should match your company’s needs. Otherwise, you won’t achieve your business goals quickly. We are here to help you. Keep reading this article till the end to know more about self-serve kiosks and why. Let’s start without any delay.

What Are Self-Service Kiosks?

The primary purpose of a self-service kiosk is to provide services to customers without anyone’s need. For instance, people can buy tickets with these devices by following the procedure. Many restaurants and hotels also use these machines to offer quick services to customers. As a result, more people like to visit hotels and restaurants.

Every company needs to focus on the customer’s needs and demands. A business can’t achieve growth without attracting more people. Using self-service kiosks can increase the chance of getting more attention. You can build a successful enterprise by incorporating the right technology.

What Are The Advantages of Using Self-Service Kiosks?

As the term suggests, these machines don’t need human intervention. The advantages of using them are as follows-

  • Save costs: The most significant reason to consider self-service kiosks is that they help reduce costs in a business. As they do various tasks independently, you don’t need to hire more employees. Customers can directly get the services they need by using them.

Hiring more employees means increasing the overall costs. If you want to save money, you should consider buying these devices. They might also offer you more than the employees.

  • Enhance efficiency: Efficiency in a business is only possible when you have a fantastic team to handle customers. Sometimes, it becomes for a company to increase efficiency in their work. In this situation, it is crucial to find out new solutions.

These machines help many companies get back on track and provide the best for their customers. People can use them anywhere and anytime. So their overall experience is much better than before.

Companies can concentrate on other tasks while these devices work independently. This way, enhancing efficiency in a company becomes convenient.

  • Satisfy the employees: It might seem strange, but you can increase employee satisfaction by installing self-service kiosks. Well, nobody wants to do mundane things in a business. If these machines handle these tasks, they might be happy doing other things. As a result, employee satisfaction will increase in no time.

Source: hexnode.com

It is essential to keep your workers happy in a company. So, you must consistently enhance their experience to get good results.

  • Increase your sales: Many companies consider self-service kiosks for their marketing campaign. These machines attract many consumers because they can buy products using discount coupons. People need affordable and quality products and services. Once you provide them with the same, you can expect more sales. It will continue to rise in the long run.

Before using these machines in marketing, you should always research what is best. Some businesses make haste and fail during the process.

  • Quick return on investment: Companies aim at achieving a high return on investment to identify their growth in the market. Self-service kiosks are also helpful in achieving a return on investment quickly. More sales mean better growth and return on investment.

Different businesses in the market are improving their return on investment by using these machines. One can transform the overall performance quickly by using the right strategies and techniques.

  • Enhance communication with customers: You might already know the importance of interaction with consumers in a company. It impacts your business growth in many ways. That is why you need to implement the best techniques to succeed.

Source: mactrongroup.com

Self-service kiosks are beneficial because customers can connect directly with businesses. It gives both companies and consumers the convenience of interacting. You don’t need extra effort to share the updates with your audience.

  • Customer satisfaction is possible: Nowadays, people need those machines that satisfy their needs quickly. Companies can offer self-service kiosk machines to satisfy their customers. They can get whatever product or service they want instantly without any issues. The best thing is they don’t need to depend on anyone for the same

Digital technology has always been successful in giving the best experience to everyone. These machines are also gaining attention because of their excellent results.

  • No security risks: People are always hesitant while sharing their information with others. Hacking has become prevalent these days. It is high time that companies need to protect customers’ data.

Self-service kiosks are suitable for protecting the data of customers. They don’t need to worry about hacking as these machines are safe to use. It is one of the reasons why companies consider getting these devices.

Self-service kiosks are the best devices for analyzing customer actions and getting feedback. This way, you can find ways to improve your customers’ experience.

The Bottom Line

Self-service kiosks are new in the market. However, the experience after using them for your business will be exceptional. We hope this article helped you understand the importance of using these devices. A little bit of research is essential when it comes to making such decisions.

Continue Reading

Trending