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Finance

Balance Sheet

A snapshot of what the business owns and owes on a single date. What you own minus what you owe is what the business is worth on paper.

Example

On 31 March your balance sheet might show ₹12L in the bank, ₹3L owed by customers and ₹4L owed to suppliers.

Related terms

P&L
A summary of your income and expenses over a period that shows whether you made a profit or a loss. Also called the income statement.
Cash Flow
The actual money moving in and out of your business. You can be profitable on paper but still run out of cash if money comes in late.
Working Capital
The short-term money available to run day-to-day operations — what you own that can quickly become cash, minus what you owe soon.

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