Veepan
  • Veepan User Guide
  • Getting Started
  • Registration
    • Creating your Account
    • Activating Account
    • Basic Setup
  • Fundamentals
    • Invoicing
      • Create Invoice
      • Edit Invoice
      • Download Invoice
      • Record Payment for Invoice
      • Add QR Code to Invoice
      • Create Purchase Invoice
      • Create non-GST Bill / Simple bill
    • Inventory
      • Add Product
      • Edit Product
      • Importing Inventory
      • Generate Barcode
    • Services
      • Add Service
      • Edit Service
    • Sales
      • Create Sales Entry
      • Edit Sale
      • Record Payment
      • Create Invoice for Sale
    • Subscriptions
      • Create Subscription Plan
      • Create Subscription
      • Record Payment for Subscription
      • Create Invoice for Subscription
    • Purchases
      • Create Purchase Entry
      • Edit Purchase
      • Record Payment
    • Accounting
      • Balance Sheet
      • Income Summary
    • GST Filing
      • GSTR1 Json data
      • GSTR1 Filing
    • Customer
      • Add Customer
      • Edit Customer
    • Vendor
      • Add Vendor
      • Edit Vendor
    • Manage Expenses
      • Add Expense
    • Manage Assets
      • Add Asset
    • Chartered Accountant
      • Add Accountant to Business
      • Access Client Business Invoices
  • Use Cases
    • For Consultancy Firm
      • 1. Basic Setting for Consultancy
      • 2. Create Consulting Services Entry
      • 3. Create Consultants Entry
      • 4. Create Sales Entry for Consulting
      • 5. Create Invoice for Consultancy Sales
      • 6. Record Payment for Consultancy Sales
      • Create Service Tasks
      • Assign a Consultant to each Consulting Service
      • Payment to Consultant
    • For Gym Management
      • 1. Create Subscription Plan for Gym
      • 2. Create Subscription for new gym member
      • 3. Record Payment for Gym Subscription
      • 4. Create Invoice for Gym Subscription
      • Mark Attendance for Gym Member
      • Enquiry Entries for the Gym
    • For Automobile Service Center
      • 1. Basic Setting for Automobile Services
      • 2. Add Stocks for Automobile
      • 3. Create Purchase Entry for Automobile Products
      • 4. Create Sales Entry for Automobile
      • 5. Create Invoice for Automobile Sales
    • For Diagnostic Center
      • 1. Basic Setting for Diagnostic
      • 2. Create Diagnostic Tests Entry
      • 3. Create Sales Entry for Diagnostic
      • 4. Create Invoice for Diagnostic Sales
      • 5. Record Payment for Diagnostic Sales
  • Become Partner
    • For Sales Partner
      • 1. Create Account
      • 2. Send Approval Request
      • 3. How to Refer
      • 4. Track all Referrals
  • Extras
    • Keyboard Shortcuts
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On this page
  • What is a Balance Sheet?
  • Parameters
  1. Fundamentals
  2. Accounting

Balance Sheet

Here we will discuss, what is balance sheet and its importance.

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Last updated 2 years ago

What is a Balance Sheet?

A Balance Sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.

Assets = Liabilities + Shareholders' Equity

Parameters

The Balance sheet provides the overall insight into the business. We will go through some of the parameters of the balance sheet here.

  1. Current Assets - Items owned by your business that will be converted into cash within a year. Examples include

    • Cash - includes hard currency, amount in bank accounts owned by business.

    • Accounts Receivables - these are short-term payments owed to your business, for example, outstanding invoices.

    • Inventory - Any business that sell physical products. It includes raw materials, in-progress products and finished products.

  2. Non-Current Assets - These are assets that can’t be converted to cash easily and won’t be converted within the next year. It includes both tangible and intangible assets.

    • Tangible Assets - Includes assets such as Land, property, machinery, and equipments like computers and printers

    • Intangible Assets - These aren’t physical by nature and include goodwill, copyrights and patents.

  3. Current Liabilities - These are short-term liabilities that must be paid within the next year.

    • Account Payable - These are short term payments that the business owes to someone else.

    • Tax Payable

  4. Non-Current Liabilities - These include debts, loans and other financial obligations due in more than a year from the date reported on the balance sheet.

  5. Shareholder's Equity - It refers to a business’s total net worth.

    • Owner's Capital - It includes the initial sum of money an owner invests in the company

    • Retained Earnings - Net earning of the business.

The Balance Sheet is automatically prepared by Veepan, based on

  • Sales Entry

  • Purchase Entry

  • Asset & Expense Entry

Balance Sheet by Veepan