The Balance Sheet uses all posted activity through the end date. Current earnings are derived from posted revenue less expenses; they are not a fabricated entry. A notice confirms that assets equal liabilities plus equity.
Steps
- Choose the end date.
- Check the balance notice.
- Open the general ledger for any account you want to trace.
What you get
A snapshot of the business's financial position.
Who can do this
Everyone in the organization can view this page (owner, admin, accountant, bookkeeper, manager and viewer).
If something goes wrong
- Accounts receivable here differs from AR aging.
- They agree when every invoice and payment has been both posted and recorded as a document. A difference points to a missing document link or an unposted entry.
Terms used here
- Balance sheet
- What the business owns (assets), owes (liabilities) and the owners' stake (equity) at a point in time. Assets always equal liabilities plus equity.