Finance and valuation
Balance sheet
A balance sheet is a report of what a practice owns, what it owes and what is left for the owners on a single date.
The SBA's financial glossary says a balance sheet, also called a statement of financial position, reports an entity's assets, liabilities and equity (net worth) at a specific time. Assets include cash, accounts receivable, inventory and equipment. Liabilities include loans, such as a practice loan, and bills due. The SEC's beginner guide makes the same point in plainer words: a balance sheet shows what a company owns and what it owes at a fixed point in time. Unlike a profit and loss statement, which covers a period, a balance sheet is a snapshot. Lenders and buyers use it with other statements.