Balance Sheet

The balance sheet is a central element in controlling and provides an overview of a company’s financial situation at a specific point in time, known as the balance sheet date. It includes the company’s assets, equity, and liabilities, serving as a tool to analyze financial stability and performance.

The balance sheet is divided into assets and liabilities, which are listed side by side. The difference between assets and liabilities yields the balance sheet total. Alongside the income statement, the balance sheet is a key component of the annual financial statements. It is also used to calculate financial ratios, such as the liquidity ratio and return on equity.

There are two types of balance sheets. The commercial balance sheet is intended for management, employees, creditors, and shareholders and aims to inform them about the company’s financial situation. The tax balance sheet is only prepared for the tax authorities. It is based on the commercial balance sheet but contains additional tax regulations.

Using the balance sheet, one can assess the financial health of a company and make strategic decisions regarding financing, investments, and risk management. A structured top-down or bottom-up planning of the balance sheet enables QVANTUM financial planning. It makes integrated financial planning simple yet as comprehensive as your company needs.

Analytics

Big Data