Balance sheet: definition, example, and why it matters
Assets = Liabilities + Equity. Cash, AR, equipment are assets; AP, loans are liabilities. Equity is what's left for the owner.
- Short definition. A snapshot of what a business owns, owes, and is worth at a point in time.
- Category. Balance sheet is a accounting term used by service businesses when billing customers.
- How Glo Invoice handles it. Glo Invoice builds balance sheet into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does balance sheet mean?
Assets = Liabilities + Equity. Cash, AR, equipment are assets; AP, loans are liabilities. Equity is what's left for the owner.
