Read your balance sheet

The balance sheet lists what the business owns (assets), what it owes (liabilities) and what is left for its owners (equity) on the date you pick, each section with its own total.

The balance sheet shows what the business owns, owes and keeps for its owners on one date. Assets equal liabilities plus equity when your books balance.

Before you start

• Set up your chart of accounts

Steps

1. Open Balance sheet under Accounting and pick the date to read it at.

   Open in the app

2. Check the balance check tile. When it reads zero, assets equal liabilities plus equity.

3. Nothing needs closing at year end: earlier years' income less expenses is added to retained earnings, and this year's shows as net income.

Check it worked

The balance check reads zero: total assets equal liabilities and equity. Equity ends with net income this year, and retained earnings includes every earlier year's income less expenses.