What is the Balance Sheet?

A Balance Sheet is a financial statement that shows a snapshot of a business's assets, liabilities, and equity at a specific moment in time. The Balance Sheet provides insight into the business’s financial health by showing what the business owns and owes, which helps determine the business's ability to pay its obligations.

The Balance Sheet lists a subset of the General Ledger (GL) accounts, grouped by account type (Asset, Liability, and Equity). It can be customized to view and compare the account balances at different dates. When viewing your Balance Sheet, you can also drill down into the report to see all of the transactions/journal entries contributing to the balance for each specific GL account.