finance-balance-sheet

> **Templates and analytical tools only - not personalized financial, tax, accounting, or legal advice.** Balance-sheet line classification, owner-equity sectioning, and basis (GAAP vs tax-basis vs cash-basis) materially change figures and how lenders / investors / IRS read them. Review with a CPA before sharing externally.

# Finance - Balance Sheet

Generate a Balance Sheet (Statement of Financial Position) as of a single date. Lenders, M&A buyers, and reasonable-salary defenses all require a B/S.

## Required inputs

- **As-of date** (end-of-period snapshot)
- **Jurisdiction** (US default; UK / EU / CA / AU / other use locally accepted formats - IFRS or local GAAP)
- **Reporting basis**: **GAAP**, **tax basis**, **cash basis**, or **modified cash** - REQUIRED. Same business produces different B/S under each basis.
- **Entity type**: sole proprietor, partnership, single-member LLC, multi-member LLC, S-corp, C-corp - equity section structure differs.
- **Asset and liability balances** (see structure below)
- **Owner contribution / draw / distribution history** for the period (impacts equity section)
- **Prior-period comparison** (optional but recommended for variance flags)

## Reporting-basis distinction (CRITICAL)

| Basis | Revenue / AR | Expense / AP | Inventory | Long-lived assets |
|---|---|---|---|---|
| **GAAP (accrual)** | AR recognized when earned | AP when incurred | At lower of cost or market; ASC 330 | Capitalized + depreciated; ASC 360 |
| **Tax basis** | Per IRC; AR/AP recognized per cash vs accrual election | Per IRC | UNICAP §263A may apply | Per IRC §168 / §179 / §168(k); MACRS |
| **Cash basis** | Recognized when cash received | Recognized when cash paid | Often capitalized only at sale | Capitalized; depreciated |
| **Modified cash** | Mix - typically cash for services + accrual for inventory / AR | Mix | Accrual on inventory | Capitalized + depreciated |

Lenders and SBA loans generally want GAAP or close-to-GAAP. Tax preparers want tax-basis. Buyers / DD typically request both.

The B/S header MUST display `reporting_basis: <selected>`.

## Output structure (US GAAP / typical SMB layout)

```
BALANCE SHEET                                            Jurisdiction: [SELECTED]
[Entity legal name]                                      reporting_basis: [SELECTED]
As of: YYYY-MM-DD                                        Generated: YYYY-MM-DD
(in dollars, unless otherwise noted)

──────────────────────────────────────────────────────────────────
ASSETS
──────────────────────────────────────────────────────────────────
CURRENT ASSETS
  Cash and cash equivalents                          $XX,XXX
  Marketable securities                              $X,XXX
  Accounts receivable, net of allowance              $XX,XXX
  Inventory                                          $X,XXX
  Prepaid expenses                                   $X,XXX
  Other current assets                               $X,XXX
                                                    --------
TOTAL CURRENT ASSETS                                 $XX,XXX

NON-CURRENT ASSETS
  Property, plant & equipment (PP&E), at cost        $XX,XXX
    Less: accumulated depreciation                  ($X,XXX)
                                                    --------
  Net PP&E                                           $XX,XXX
  Intangible assets, net                             $X,XXX
  Goodwill                                           $X,XXX
  Right-of-use lease assets (ASC 842)                $X,XXX
  Other non-current assets                           $X,XXX
                                                    --------
TOTAL NON-CURRENT ASSETS                             $XX,XXX
──────────────────────────────────────────────────────────────────
TOTAL ASSETS                                         $XXX,XXX
══════════════════════════════════════════════════════════════════

──────────────────────────────────────────────────────────────────
LIABILITIES
──────────────────────────────────────────────────────────────────
CURRENT LIABILITIES
  Accounts payable                                   $XX,XXX
  Accrued liabilities (wages, taxes, interest)       $X,XXX
  Short-term debt and current portion of LTD         $X,XXX
  Deferred revenue (current)                         $XX,XXX  ← SaaS / annual prepay
  Sales tax payable                                  $X,XXX
  Payroll taxes payable                              $X,XXX
  Operating lease liability (current, ASC 842)       $X,XXX
  Other current liabilities                          $X,XXX
                                                    --------
TOTAL CURRENT LIABILITIES                            $XX,XXX

NON-CURRENT LIABILITIES
  Long-term debt                                     $XX,XXX
  Deferred revenue (non-current)                     $X,XXX
  Operating lease liability (non-current)            $X,XXX
  Deferred tax liabilities                           $X,XXX
  Other non-current liabilities                      $X,XXX
                                                    --------
TOTAL NON-CURRENT LIABILITIES                        $XX,XXX
──────────────────────────────────────────────────────────────────
TOTAL LIABILITIES                                    $XXX,XXX
══════════════════════════════════════════════════════════════════

EQUITY (entity-specific - see below)
──────────────────────────────────────────────────────────────────
Total equity (entity-specific structure)             $XX,XXX
══════════════════════════════════════════════════════════════════
TOTAL LIABILITIES AND EQUITY                         $XXX,XXX
══════════════════════════════════════════════════════════════════

CHECK: Assets = Liabilities + Equity                 ✅ / ⚠ DIFF $X,XXX
```

## Entity-specific equity structure

### Sole proprietor / single-member LLC (disregarded entity)

```
OWNER'S EQUITY
  Owner's capital, beginning of period               $XX,XXX
  + Net income (loss) for the period