The balance sheet is an important report that you keep regular checks on during the course of the year. It shows what the business is worth at any point in time during the year.
The default balance sheet period (upon loading) is the current month's figures. However, whether it shows the current position of the business is dependent on other areas of the system being regularly updated, otherwise it will be out of date.
You can change the report date by choosing the month and year from the two drop down menus.
There are three main sections that comprise the balance sheet report:
Fixed assets: these are non current assets such as property, land, plant and machinery or vehicles. The net written down value (after depreciation) is usually shown on the balance sheet. Thus, the value of the asset (except property, land etc) will reduce it's value on a year on year basis.
Current assets: current assets are usually defined as those that can be easily converted to cash. These typically include cash in the bank (or hand), debtors - such as money owed by customers, and stock.
Current liabilities: similar to current assets, current liabilities are those liabilities of the business that are to be settled in cash within the financial year. These typically can include overdrafts at a bank, credit cards, money owed to suppliers or other short term loans.
Capital & reserves: usually includes the share capital of the business (if limited) or cumulative profits in the business that have not been taken out via dividends,