ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Mercury: Radically different banking*
Business Checking & Savings Accounts | Business Credit Cards | Financial Workflows
2
3
4
To use this template, select:
1. "File" > "Make a copy"
2. Name your new document
3. "Make a copy"

What is a Balance Sheet?
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It outlines the company's assets, liabilities, and shareholders' equity, which are crucial for understanding how a business finances its operations. The balance sheet follows a fundamental accounting equation:

Assets = Liabilities + Equity

This means that a company's resources (assets) must be financed either through borrowing (liabilities) or from investors (equity).

Why create a Balance Sheet?
Building a balance sheet allows a business and its stakeholders to assess the company's financial health. It provides a clear picture of what the company owns (assets) and owes (liabilities), facilitating evaluations of liquidity, solvency, and risk. Moreover, comparing balance sheets over time reveals trends in growth, debt, and investment. The data from balance sheets also enables the calculation of key financial ratios, such as the debt-to-equity ratio or current ratio, which are valuable for making informed business decisions.
5
6
Some notes on how to use this template:
7
To use this template, first make a copy.
8
On tabs "Balance Sheet Template" and "Pro Forma Balance Sheet Template" do not type in cells D 15, 24, 26, 37, 44, 46, 55 and 57 as these contain formulae
9
Populate columns E and F of the pro forma template with your forecasted values.
10
(Optional) Use column H (“Assumptions”) to document the reasoning behind each forecast.
11
For more information on the terminology used in the balance sheet, please refer to tab:"Glossary of key terms"
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100