I’ll may have a small or medium business and you make yourself keeping its accounts, Or you just get a new accountant position and that you will take responsibility for the first time, Or you’re just a student who seeks some additional information on the daily occupation of the key position of the company. So here’s a handy guide on the training of an assessment. But for clarity, we return to the beginning of this article the definition of what a balance sheet, and then enumerate the elements that come into play as part of its mounting .If you can apply carefully to the advice contained in this mini-guide, you will not risk more than a mistake serious enough in the performance of this repetitive task.

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Setting a record

A balance sheet is an accounting document that summarizes the assets of the company at a given date. It is often said that this is the picture of the firm at that time. It presents the first assessment of the company since its inception: the opening balance sheet. Then prepare a report to each regular year-end. It is a regulatory requirement referred to in section 123.16 of the PCG. Thus, for a company with sales of goods produced in one year a turnover of over € 763 000, or one that has sales of services by more than € 230 000 in one year, the training of key accounts including the balance sheet, income statement and appendices is required .

But what exactly is a balance sheet? The primary financial statement is a control tool clear towards its third (banks, administrations ) and other copyright holders (owners, shareholders,). For example, whenever the small companies negotiate a financial transaction (including loans) from banks, they ask first presentation of this paper to find out if the company is solvent, that is, whether she would be able to return due to the amount advanced, including costs related thereto. Thus, it is necessary to have at least two successive reviews year-end to reflect the evolution of the company for two consecutive years. For companies of a sufficient size, the results can be drawn several times a year (3 times for example) so that the internal control bodies may conduct an audit and regular analysis of the situation.

Balance sheet items

The results are compiled in tabular form in two columns: the asset or employment (left), and liabilities or resources (right). In the asset is recorded assets of the company following the example of fixed assets (land, buildings, etc.), Current assets (stock and current receivables, available,), etc. As for liabilities, it mentions the means used by the company to finance these assets, that is to say its equity and debt. They are divided into capital, reserves, capital grants, loans (debt and pay able, etc.). Details of these elements is to consult the chart of accounts and each firm chooses the topics that match their activities to comply with the standard installation of the balance sheet.

Assembly of its balance sheet

After all balance sheet items mentioned above are identified, we’ll show everything the company owns. Saving jobs is increasing in order of liquidity, that is to say that is first fixed assets and current assets, etc.. Based on the liability side, we add accruals to the asset. Now to the liability that is defined as a summary of what the business owes to others. It must be presented in order of increasing due. The accounts are listed as a liability provision. Note that the total of the two columns of the assets and liabilities must always display the same number. Similarly, the income statement (profit or loss), balance sheet obtained by the difference between liabilities and assets, must be the same as that found in the income statement.