Under the intricate term "enterprise balance sheet" is hidden the form at number 1, or just one of the reports on the financial condition of this enterprise itself. In other words, the balance sheet contains the property of the organization and its sources of receipt of funds, expressed in cash. These two components are also called assets and liabilities. With proper financial management, they should be equal in total.
Why is the balance sheet of the company? So that each user receives timely, complete and objective information that is valid at this time.
Let's talk about
assets and liabilities. They, in turn, are also divided, each into several subsections. Assets consist of fixed and current assets (or non-
current and
current assets). The difference between them is as follows: the former take part in production for one year or more, that is, a sufficiently long period of time. And their cost, as they wear out, affects the cost of finished products. By the way, this process is called depreciation. Revolving funds are those
means of labor that are completely spent during one production cycle, and depreciation occurs immediately.
The balance sheet of the enterprise relates to fixed assets its fixed capital, real estate, and also investments with a long-term perspective. Working capital - short-term investments, financial reserves and VAT on acquired values.
Now consider the classification of liabilities. They consist of the capital of the enterprise, its reserves, as well as debts - both short- and long-term. We will dwell on each of these points separately.
With equity, nothing complicated. This is the money invested by the owners and received by them in the form of profit. The balance sheet of the company LLC includes in its own capital as authorized and additional finance, and reserve. Another balance sheet item is retained earnings.
Short-term debt is considered to be those obligations that the company is obliged to repay in a relatively short time - no more than a year. This section of the balance sheet includes loans, borrowings, obligations to suppliers. In turn, long-term debt is more loyal - the maturity of obligations is much longer. In addition to loans and borrowings, it also includes deferred liabilities to the tax authorities.
You can analyze the balance sheet of an enterprise in several ways - horizontal, vertical and mixed.
Horizontal analysis: the basic unit is a specific period of time. In relation to it, the relative and absolute values of the changes in the balance sections are calculated.
Vertical analysis: the structure of balance sheet items is analyzed, taking into account a specific date. As a result, you can reduce several sections to the total or calculate the coefficient of financial stability of the enterprise.
The balance sheet of an enterprise is an integral and effective element of the activity of any company.