Glossary
Balance sheet
A balance sheet is a snapshot on one day of what the shop owns and owes, listing assets, liabilities and the owner's equity.
What it means for a shop owner
The rule never changes: assets = liabilities + owner's equity. Assets are things like cash, stock and customer debts; liabilities are things like supplier debts and loans. What is left after liabilities is what the owner truly owns.
A worked example
Cash 300, stock 2000 and customer debts 500 make assets of 2800. You owe suppliers 900, so your equity = 2800 - 900 = 1900.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes