What is a Balance Sheet?

A balance sheet is a statement or overview of a company's finances. The balance sheet is used to communicate the financial situation of the company or organization to the board of directors, investors, and others.

How to Make a Balance Sheet

1. List the company's assets
2. List the company's liabilities
3. List stakeholder equity

Further Reading

• What is the Difference Between a Board of Directors and a Board of Trustees?
• What is a Board of Directors, Its Structure, Roles, and Responsibilities
• Board Management Software Buyer's Guide