Forecasting your balance sheet
For an idea of what position your balance sheet will be in by the end of the year, download our balance sheet forecaster to estimate your assets and liabilities at a future date.
Once you've downloaded the spreadsheet, first enter the date of your estimation.
Input the dollar values of your current assets – these are assets that can be converted into cash within 12 months. Only fill in the boxes that are applicable to your business. The template will calculate your total current assets.
Next, input each of your fixed assets – those that can’t easily be changed into cash. Again, the template will automatically calculate your total fixed assets and your total assets.
Enter each of the current liabilities you have. Current liabilities need to be settled in cash by your business within the next 12 months. Ignore the fields that aren’t relevant. Do the same with yourlong term liabilities - those liabilities due after 12 months. The template will total both these columns and calculate your total liabilities figure.
Lastly, enter any goodwill and owners equity you have in your business, plus any retained earnings from your previous year’s operations if applicable. Goodwill is an intangible asset that relates to the perceived value of such assets as your brand, the quality of your business relationships, your reputation, etc. Retained earnings relates to the portion of net income from your business that is retained by the business and not distributed as dividends.
The template will automatically calculate your total equity as well as your current asset and quick asset ratios.