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

Nebojsa Vujinovic



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.

Hi, my name is Nebojša, and I've been involved in digital marketing for over 15 years. I've written for various websites, covering a wide range of topics. I'm particularly interested in subjects like technology, gaming, app development, and I also have a passion for automobiles. Additionally, I work on SEO optimization. In my free time, I enjoy reading, walking, traveling and spending time with my wife and daughter.

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Professional Partnerships: The Role of Escorts in the Business World




In todays fast-paced and competitive business world, professional partnerships have become increasingly crucial for success. One often overlooked but important aspect of these partnerships is the role of escorts.

These individuals play a multifaceted role in facilitating business interactions and promoting corporate relationships. From accompanying executives to important meetings and events to providing language and cultural support in international business dealings, escorts can significantly enhance the effectiveness and efficiency of professional collaborations.

This article aims to explore the various ways in which escorts contribute to the business world and highlight the valuable services they provide to companies and individuals alike.

The Importance of Professional Partnerships

Professional partnerships play a vital role in the business world, providing companies with the opportunity to collaborate and network with other professionals to achieve mutual goals.

Escorts, in particular, play a unique and important role in facilitating these partnerships, offering support and guidance to individuals navigating the corporate landscape. By forming strong partnerships with escorts, businesses can gain access to valuable resources, connections, and expertise that can help them succeed in their industry.

These collaborations not only enhance the reputation and credibility of a company but also can lead to increased opportunities for growth and expansion. In todays fast-paced and competitive business environment, establishing professional partnerships with escorts can make all the difference in achieving success.

Understanding the Role of Escorts in the Business World

Understanding the role of escorts in the business world involves recognizing the unique and important ways in which these professionals support and enhance various aspects of corporate operations.

Escorts play a vital role in facilitating business meetings, conferences, and events by providing logistical support, aiding in networking opportunities, and ensuring smooth communication between parties. Their ability to navigate complex social dynamics, offer discreet assistance, and maintain a high level of professionalism make them indispensable partners in the fast-paced and competitive business environment.

By understanding and leveraging the expertise of escorts, businesses can optimize their operations, enhance their reputation, and achieve their strategic objectives with confidence and efficiency.

Building Trust and Relationships with Escorts in Business

Building trust and relationships with escorts in business is essential for creating successful professional partnerships. Establishing a strong rapport with escorts can lead to mutually beneficial collaborations and enhanced productivity.

By cultivating open communication, respect, and understanding, businesses can foster long-lasting connections with escorts that can propel their success. Building trust involves transparency, honesty, and reliability, while developing relationships requires empathy, teamwork, and a positive attitude. Taking the time to truly connect with escorts on a personal level can lead to a deeper understanding of their needs and preferences, ultimately leading to more effective partnerships.

In the fast-paced world of business, nurturing these relationships can set businesses apart and result in lasting success.


In conclusion, professional partnerships with escorts can play a valuable role in the business world. By providing companionship, discretion, and networking opportunities, escorts can help professionals navigate the challenges of work and personal life.

Whether it be attending events, social gatherings, or simply offering a listening ear, escorts can provide valuable support to individuals seeking to navigate the demands of a competitive business environment. In cities like London, where opportunities for networking and socializing abound, having a trusted escort in London by one\’s side can make a significant difference in achieving success and maintaining a balanced lifestyle. Ultimately, professional partnerships with escorts can offer a unique and beneficial experience for those looking to enhance their professional image and connections.

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6 Key Metrics for Measuring Delivery Performance

Verica Gavrillovic



Ensuring efficient and timely delivery is crucial for businesses to maintain customer satisfaction and operational effectiveness. But how do you measure delivery performance effectively? In this post, we’ll explore six key metrics that provide valuable insights into operations. These metrics help businesses identify areas of improvement, streamline processes, and enhance overall performance.

1. On-Time Delivery Rate

On-time delivery rate is a critical metric that measures the percentage of orders delivered on or before the promised date. This metric is essential for assessing the reliability and efficiency of your system. The on-time delivery rate reflects your ability to meet customer expectations and commitments. High on-time delivery rates indicate that your logistics processes are well-managed, leading to satisfied customers and repeat business. Utilizing shipment tracking software can significantly enhance your ability to monitor and improve this metric.

To calculate the on-time delivery rate, divide the number of on-time deliveries by the total number of deliveries and multiply by 100. This metric can be tracked over different periods to identify trends and patterns in delivery performance.

2. Order Accuracy

Order accuracy measures the percentage of orders delivered without errors, such as incorrect items or quantities. High order accuracy is vital for maintaining customer trust and satisfaction. Accurate orders prevent customer dissatisfaction and returns, which can be costly for businesses. Ensuring high order accuracy demonstrates a commitment to quality and attention to detail, enhancing your reputation in the market.

3. Delivery Time

Time measures the average time taken to deliver an order from the moment it is placed until it reaches the customer. This metric is crucial for evaluating the efficiency of your process. Short delivery times are often a competitive advantage, especially in industries where speed is a key differentiator. Analyzing delivery time helps identify bottlenecks and inefficiencies in the delivery process.

4. Delivery Cost

Cost is the total expense incurred to deliver an order to the customer. Managing delivery costs is essential for maintaining profitability while ensuring efficient delivery. High delivery costs can erode profit margins, making it crucial to balance cost-efficiency with service quality. Understanding delivery costs helps in making informed decisions about pricing and logistics strategies.

5. Customer Satisfaction

Customer satisfaction is a qualitative metric that measures how well your delivery service meets customer expectations. High customer satisfaction is indicative of a successful delivery performance. Customer satisfaction drives repeat business, positive reviews, and customer loyalty. Measuring this metric provides insights into the overall effectiveness of your delivery operations from the customer’s perspective.

6. Return Rate


Return rate measures the percentage of delivered orders that are returned by customers. A high return rate can indicate issues with product quality, order accuracy, or customer expectations. The return rate is a crucial metric for understanding customer satisfaction and the effectiveness of your order fulfillment process. High return rates can signal problems that need to be addressed promptly.


By regularly monitoring these six key metrics, businesses can gain valuable insights into their delivery performance, identify areas for improvement, and implement strategies to enhance efficiency and customer satisfaction. Effective delivery performance not only boosts operational efficiency but also strengthens customer relationships and drives business growth.

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Business Communication Tips ─ Effective Strategies for Success

Anita Kantar



Effective business communication is essential for fostering a productive and collaborative work environment. Ineffective workplace communication costs U.S. businesses $1.2 trillion annually. Therefore, mastering communication skills is crucial for reducing misunderstandings and promoting efficiency.

Clear and concise communication ensures everyone understands their roles and responsibilities. Techniques like active listening and message delivery improve engagement and collaboration. Prioritizing skills such as problem-solving and time management enhances overall communication, leading to better business outcomes.

Improving communication skills can be learned and mastered with the right approach. Techniques such as asking for feedback and fostering an environment of open dialogue can significantly improve team dynamics and overall productivity. Effective communication not only boosts engagement but also encourages creative thinking.

Fundamentals of Effective Communication


Effective communication is crucial for successful business interactions, involving clear channels, the impact of nonverbal cues, and the importance of active listening and feedback.

Understanding Communication Channels

Communication channels are the mediums through which messages are conveyed, such as emails, phone calls, and face-to-face meetings. Choosing the right channel can significantly affect the clarity and reception of the message. For instance, sensitive topics often require in-person discussions to convey empathy and enable real-time feedback.

“Leveraging digital platforms efficiently can bridge geographical gaps and streamline business processes, but it’s crucial to maintain personal connections and human elements in these interactions,” according to London based CT Group.

The Role of Nonverbal Communication

Nonverbal communication involves body language, facial expressions, gestures, and tone of voice. These nonverbal cues can reinforce or contradict what is being said, thus impacting the message’s effectiveness.

Body language, such as posture and eye contact, can convey confidence and engagement or disinterest and uncertainty. Facial expressions provide immediate feedback and can help establish trust and rapport. The tone of voice, including pitch and volume, adds emotional context, making the delivery of the message more impactful. Understanding and appropriately using nonverbal communication strengthens overall communicative clarity and effectiveness.

Active Listening and Feedback

Active listening is the process of attentively hearing and understanding what the other person is saying, as well as providing thoughtful responses. It involves full concentration, avoiding interruptions, and reflecting on what has been communicated.

Effective listening skills are critical for understanding the speaker’s perspective and building rapport. Feedback, both verbal and nonverbal, completes the communication loop by showing acknowledgment and understanding. Constructive feedback should be specific, timely, and delivered with empathy, focusing on behavior rather than personal attributes. By fostering a dialogic atmosphere, active listening and feedback enhance mutual understanding and collaboration.

Furthermore, CT Group advises that “regular feedback and open dialogue can transform team dynamics, fostering an environment where innovative ideas thrive.” This aligns with the article’s emphasis on creating feedback loops and encouraging open communication to enhance team engagement and productivity.

Improving Workplace Communication


Effective workplace communication is fundamental for fostering strong relationships, managing conflicts, and enhancing team engagement. By utilizing the right tools and strategies, teams can communicate more effectively, which leads to improved collaboration and productivity.

Fostering Team Collaboration

Fostering team collaboration requires a balanced approach that encourages open dialogue and mutual respect. One effective method is to schedule regular team meetings where all team members can voice their opinions.

One-on-one meetings are also crucial for addressing specific concerns. To make these interactions more engaging, using collaboration tools like Slack can facilitate instant communication and document sharing.

Creating team-building activities, like workshops or problem-solving sessions, can strengthen relationships and improve overall teamwork. Encouraging team discussions and giving every member a chance to participate can aid in building a cohesive team culture.

Managing Conflicts and Misunderstandings

Conflicts and misunderstandings are natural in any workplace but managing them effectively is key. It’s essential to establish clear communication strategies that outline how issues should be addressed.

Active listening plays a significant role in resolving disputes. Encouraging team members to express their concerns openly and honestly can help mitigate tension.

Using mediation techniques where a neutral party helps facilitate the discussion can also be beneficial. Setting up communication training programs can equip employees with the skills needed to handle conflicts proactively.

Tools and Strategies for Team Engagement

Engaging a team requires deliberate and creative communication strategies. Communication tools like Slack can keep everyone connected and informed. Polling tools and ranking tools can make meetings more interactive by soliciting feedback and opinions from team members.

Regular employee engagement activities such as brainstorming sessions and workshops can foster a collaborative atmosphere. Encouraging the use of emojis, gifs, and one-word descriptors can add a layer of informality that makes interactions more enjoyable.

Implementing communication training sessions can help employees understand the best practices for delivering messages effectively. Creating a feedback loop where team members can offer insights on processes and communication can further enhance overall team engagement.

Crafting the Message


Effective communication is crucial in the business landscape. This section will discuss key strategies such as ensuring clarity in written and verbal communication and tailoring messages to the audience to avoid misunderstandings and foster better engagement.

Effective Email Communication

Emails are a cornerstone of business communication. Clear and concise language is essential in emails to prevent any misunderstanding. Word choice should reflect professionalism, with a focus on brevity and relevance to the topic at hand.

Formatting can enhance readability. Bullet points and italicizing important phrases can draw attention to key information. It’s crucial to maintain an appropriate tone, especially in professional settings, as an email’s tone can significantly impact the message’s reception.

Subject lines should be specific and informative to ensure the recipient understands the email’s purpose at a glance. Empathy and politeness go a long way in maintaining positive communication. Signing off with a courteous closing line reinforces respect and professionalism.

Clarity in Verbal and Written Expression

Clarity is fundamental in both verbal and written communication. Misunderstandings often arise from vague or overly complex messages. Simplifying language and focusing on direct and concise phrasing can significantly reduce confusion.

In verbal exchanges, tone and nonverbal signals like gestures and eye contact reinforce the message. Preparation is key; knowing the main points to cover ensures clear delivery, minimizing the risk of veering off topic.

In written communication, structuring messages with subheadings or lists can help organize thoughts and ensure the reader can follow along easily. Proofreading before sending helps catch errors that could obscure the message’s meaning.

Adapting to Your Audience

Understanding the audience is vital for effective communication. Tailoring the message to match the audience’s communication style and preferences ensures better engagement. Different audiences may require varied levels of formality and detail.

For instance, executives may prefer concise, high-level summaries, whereas technical teams might need detailed, specific information. Empathy plays a role in adapting to your audience, considering their needs and perspectives.

In-person communication should consider nonverbal cues and body language, adapting these to the audience’s culture and expectations. This tailored approach helps in ensuring that the message is well-received and understood, fostering better communication and relationships.

Communication Skills in the Digital Age


In today’s digital landscape, effective communication skills are essential. Professionals must navigate remote communication challenges, wisely leverage social media, and understand cultural differences to build strong business connections.

Remote Communication Challenges

Remote teams face unique communication hurdles. Video conferencing has become a staple, offering face-to-face interaction despite physical distances. Yet, distractions at home can impede focus. Seamless two-way communication is necessary to maintain connection and trust within the team.

Regular virtual meetings and clear communication guidelines help address these challenges. Encouraging open communication fosters collaboration and reduces misunderstandings. Leaders should develop strong soft skills like empathy and active listening to inspire and motivate their teams, ensuring that all members feel valued and included.

Leveraging Social Media for Business Communication

Social media platforms are powerful tools for business communication. They enable companies to reach a broad audience, engage with clients, and build brand awareness. Businesses can use these platforms to share updates, achievements, and industry insights, establishing a strong online presence.

Interpersonal skills are crucial when interacting on social media. Positive engagement and conflict resolution skills help manage public interactions smoothly. Consistent and transparent communication on these platforms builds trust with the audience. Companies should ensure their messages align with their goals and values, creating a cohesive and trustworthy brand image.

The Impact of Cultural Differences on Communication

Cultural differences can significantly affect business communication. Understanding and respecting these differences is vital for successful international collaboration. Communication styles, body language, and etiquette vary widely across cultures, and misinterpretations can lead to conflict.

CT Group also notes that “in a globalized business environment, cultural sensitivity and adaptability are key to building strong international relationships.” Their consultancy experience underscores the importance of tailoring communication strategies to fit diverse cultural contexts, ensuring messages are appropriately received and understood.

Developing cultural awareness helps avoid misunderstandings and fosters strong relationships. Soft skills such as empathy and adaptability are important in managing these differences effectively. Providing cultural sensitivity training can enhance collaboration skills and interpersonal skills, promoting harmony within diverse teams. Open communication and an inclusive mindset allow for a more cohesive and productive work environment.

By prioritizing cultural differences and being mindful of varying communication practices, businesses can better navigate the complexities of international operations.

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