What is included in the balance sheet of the enterprise

Under the intricate term "enterprise balance sheet" the form under number 1 is hidden, or only one of the reports on the financial state of this enterprise itself. In other words, the balance sheet contains the assets of the organization and its sources of income, expressed in monetary terms. These two components are also called assets and liabilities. With the competent management of financial affairs, they must be equal in total.

Why is the balance sheet of the company compiled? To ensure that each user receives timely, complete and objective information, valid for the time being.

Let's talk about assets and liabilities. They, in turn, also divide, each into several subsections. Assets are composed of fixed and circulating assets (or non- current and current assets). The difference between them is this: the first take part in production for one year or more, that is, a fairly 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. Turning funds are those means of labor that are completely spent during one production cycle, and depreciation occurs immediately.

The balance sheet of the enterprise classifies its non- core assets as its fixed assets, real estate, as well as investments with a long-term perspective. For negotiable - short-term investments, financial reserves and VAT on purchased values.

Now consider the classification of liabilities. They consist of the capital of the enterprise, its reserves, as well as arrears - both short-term and long-term. At each of these points, we will dwell separately.

With own capital nothing difficult. This is money, invested by the owners and received by them in the form of profits. The balance sheet of the enterprise LLC includes in its own capital both statutory and supplementary finances, and reserve. Another item of the balance sheet is retained earnings.

Short-term debts are those that the company is obliged to pay off in a relatively short time - no more than a year. This section of the balance sheet includes loans, loans, 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.

Analyze the balance sheet of the enterprise can be in several ways - horizontal, vertical and mixed.

Horizontal analysis: the basic unit is a specific time interval. In relation to it, the relative and absolute values of the changes in the balance sections are calculated.

Vertical analysis: the structure of balance sheets is analyzed, taking into account a certain date. As a result, you can reduce several sections to the total or calculate the coefficient of financial stability of the enterprise.

The company's balance sheet is an integral and effective element of any company's activity.