An opening day balance sheet shows the financial balances at the start of a reporting period, or in this case, perhaps at the launch of your business. Here are a few of the areas that'll be covered in SCORE's Opening Day Balance Sheet template:
Prepaid Expenses are items like insurance premiums you have already paid but have not yet "used."
Other Assets are intangible items like patents and trademarks presumed to have economic value. You may not have significant Other Assets as a new business; however, you should include items like lease and utility deposits.
Current Liabilities are any debts due within twelve months.
Trade payables and bank lines of credit are current liabilities. If you have a Long Term (multi-year) Debt, then that portion of it payable over the next twelve months goes into the "Current Portion of Long-Term Debt." The remaining portion of that debt then goes into the "Bank Loans Payable (greater than 12 months)" section under Long-Term Debt.
Owner's Equity is what is left when you subtract Liabilities from Assets. It will be less than you have spent on starting your business. That is because many of your pre-opening expenses do not result in ownership of assets that show on a balance sheet. For example, advertising, travel and legal fees may be necessary but do not generate balance sheet assets.
Have a question about this balance sheet? Connect with a SCORE mentor online or in your community today.
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