What's included in the balance sheet report

Assets represent everything your business owns. These are divided into:

Fixed assets (long-term assets that a business owns for more than a year):

• Office equipment, IT, fixtures, fittings, and machinery
• Property and vehicles

Current assets (short-term items you can convert to cash within a year):

• Bank balances and cash – Money in business bank accounts
• Trade debtors – Unpaid invoices from customers (Accounts Receivable)
• Stock or inventory – Finished goods, raw materials, or products available for sale

The report separates total fixed assets and total current assets before calculating total assets.

Liabilities refer to the financial obligations of your business. These include:

Current liabilities – Short-term debts due within a year, such as:

• Bank loans and credit cards
• Money owed to suppliers (Accounts Payable)
• Taxes owed to the government

Non-current liabilities – Long-term obligations due after more than a year, such as mortgages and business loans.

The report calculates total current liabilities and total liabilities before determining net assets.

Net assets represent the value of the business after deducting liabilities from assets:

Net Assets = Total Assets - Total Liabilities

This figure answers "What is my business worth?".

Equity represents the value remaining for shareholders after you deduct liabilities from assets. It includes:

• Retained earnings – Profits reinvested in the business instead of distributed to shareholders
• Shareholder equity – The amount invested by business owners or shareholders