Garner Balance Sheets

balance sheets for garner business

Your company needs to make sure its assets and liabilities are accurately accounted for, and a balance sheet is the resource to do just that. Often called a “Statement of Financial Position,” a balance sheet pulls all the company’s assets and liabilities to determine the owner’s equity in the business or the business’s current net worth.

A balance sheet is a major part of the greater financial statements report for any business, and the equation used to create a balance sheet is a cornerstone of small business accounting – it’s simply Asset = Liabilities + Equity.  It shows what a company owns, owes, and the stake the owner has in the business.

What Does a Balance Sheet Require?

All businesses should have a properly managed balance sheet that details the unique assets, liabilities and equity of their specific industry.


A company’s assets are resources that are acquired and have a measurable economic value.

Assets are typically divided into 2 categories:

Liquid – Cash or easily sold/converted to cash

Non-liquid – Not easily converted into cash assets

*intangible assets may be included in the asset log, but due to the nature of such assets, they are not easily valued. Speak with an experienced accountant for clarification on what is accepted.

Examples of Assets

  • Cash or equivalent
  • Investment
  • Accounts receivable
  • Inventory
  • Supplies
  • Pre-paid insurance
  • Land
  • Buildings
  • Equipment


All businesses have costs or obligations associated with operating. These costs are defined as liabilities and are usually owed to creditors, stockholders, etc.

Liabilities are divided into the categories of:

Current – Must be paid within a single year

Long Term – Payoff due outside of a single year cycle

Examples of Liabilities

  • Accounts payable
  • Salaries/Wages
  • Interest owed on loans, materials, etc.
  • Income tax
  • Bonds
  • Expenses
  • Loans


After deducting all business liabilities from the assets, a company now has a picture of their Equity or Shareholders’ Equity if incorporated. This can be considered the value of the company. The lower the expenses compared to revenue, then a company will have higher equity and vice versa.

Why are Balance Sheets Important?

A balance sheet will disclose financial records to creditors and provide a snapshot of the company’s financial position at a given point in time. If a company is looking to upscale, and requires funds to accomplish the goal, then a bank or credit agency will look at the balance sheet to determine if the company seeking support is qualified to repay the debt.

Who Reviews a Balance Sheet?

Anyone who has a stake in the financial improvement or current financial operating condition will have a need to review a balance sheet such as:

  • Current and Potential Investors
  • Labor Unions
  • Government Agencies
  • Banks/Creditors
  • Company Management/Financial Officers

Need Help with Generating Your Garner Company’s Balance Sheet?

At C.E. Thorn, CPA, PLLC, we understand the importance of a properly balanced financial report. For nearly 30 years, we have provided support to local small businesses needing help with accurate bookkeeping and generating income statements.  To learn how you can benefit from our expertise, give us a call to speak with an experienced small business accountant for Garner by calling 919-420-0092 or completing the online contact form today.