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Why my balance sheet does not balance - Small Business Accountants Sydney

Whether your business does financial reports monthly, bi-monthly or quarterly, one of the most important aspects is to ensure that your balance sheet correctly balances. As your small business accountants in Sydney, we have the ability to find where this error is in all of the business’ reporting (it might have just been one figure that was missed!).

Keep in mind that balance sheets should reflect the following: Assets are to equal your Liabilities plus Owner Equity at that current time of the financial year!

There are a range of factors that may tie into your balance sheets being uneven – our small business accountant in Zetland will give some things to look for if they are not balancing:

• Not recording or monitoring the amount of “Paid in Capital” – which is the money you and your investors have put into the business
• Loan monitoring done incorrectly – be sure to not include the amount of interest you pay on your loan! Only document the principal amount you owe and pay back
• Not monitoring a major or a slight change in your inventory
• Your total for retained earnings is not correct – this is the total amount of net profit your business has made since day one

It is important that you get your balance sheet correct as soon as possible – if you are having troubles with sorting it out, then you should be getting in contact with one of our business accountants in Sydney to help solve this problem.

Feel free to send our small business accountants in Sydney an enquiry or you can browse through our services here!