The balance sheet or balance sheet accounting usually generates quite a lot of doubts among the freelancers and the owners of small enterprises outside the world of finance. That is why we have decided to explain briefly and simply what a balance sheet is, what it is for and, most interestingly of all: why taking the time to create a perfect balance sheet is a good idea. so important for your SME. Does this sound interesting to you? It is, so go ahead and read on and, if you want, share this article on your social networks.
The first thing you need to know to avoid future doubts is that the balance sheet is also known as other names such as, for example, Balance sheet.
Once this has been clarified, we could say that the balance sheet could be defined as a financial report que resume de la forma más sencilla posible el financial and accounting status from our small business. This document should be prepared in a way that easily and simply reflects:
As is the case with other documents of this type, the balance sheet is prepared on the basis of the following official models. The General Chart of Accounts It allows for two types of presentation: the normal and the abridged. You will choose one or the other model depending on the size of your company, your annual turnover, etc.
Click here to obtain Detailed official information on this important point.
One last interesting fact: you can do the accounting balance as many times as you want or need, but remember that it is obligatory Annual presentation in the annual accounts of your SME.
Some experts compare the accounting balance sheet, or balance of situation, to a Detailed photography of a company's financial situation at a given moment; a kind of X-ray used for diagnosis the good or bad business health Regarding “accounts”.
In the case of SMEs, The importance of this balance increases for a number of complementary reasons, such as the following:
A large proportion of small businesses do not have accounting and financial advisors that they dedicate themselves exclusively to managing their financial situation. From this point of view, the balance sheet is easy to understand even for those of us with low financial literacy and thus, it becomes a fundamental tool for predicting future accounting issues, correct negative deviations, avoid making technical errors that will cause us problems and penalties with Hacienda, etc.
Among many other things, the balance sheet provides an accurate reflection of the state of the assets of our SME, of the actual state of our accounts at a given point in time. This important data will serve to value and take multiple strategic decisions of all kinds: from investing in the acquisition of a new ship for our business, to expanding our sales department, incentivising the system of Flexible remuneration of our employees, etc.
Finally, but by no means least, the balance sheet allows us controlling the costs of our SME, something fundamental to guarantee our permanence in an increasingly competitive and globalised market.
And that's all from our summary on accounting statements. Did you know this information? Did you find this article useful?
