QuickBooks Tip: How to Run a Balance Sheet (and Why It Matters for Small Business Owners)
One of the most overlooked—but essential—financial reports in business is the balance sheet. It gives you a snapshot of your business's financial position at a specific point in time, showing what you own, what you owe, and what’s left over (your equity). Reviewing this report regularly can help you make smarter financial decisions and stay ahead of potential problems.
Luckily, if you use QuickBooks Online (QBO), running a balance sheet is simple and fast.
What Is a Balance Sheet?
A balance sheet consists of three main sections:
Assets – What your business owns (cash, inventory, equipment, etc.)
Liabilities – What your business owes (loans, credit cards, unpaid bills)
Equity – The net value of your business (Assets – Liabilities)
Together, these show the true financial health of your business and how well you’re managing your resources.
How to Run a Balance Sheet in QuickBooks Online
Log in to QuickBooks Online.
From the left-hand menu, click on “Reports.”
Search for “Balance Sheet.”
Choose your date range to Today or Last month (it shows the balance as of a specific date)
Click “Run Report.”
Use the filters to customize by class, location, or customer if needed.
Why This Matters
✅ Helps you understand your debt-to-asset ratio
✅ Essential for applying for business loans or grants
✅ Shows if you're building real business value over time
✅ Aids in financial planning and investment decisions
Common Mistakes to Avoid
❌ Ignoring the balance sheet and only reviewing the Profit & Loss report
❌ Not reconciling bank accounts before running reports
❌ Misclassifying liabilities as income or expenses
❌ Forgetting to update fixed assets and depreciation
FAQ
Q: How often should I review my balance sheet?
A: Monthly is best, especially when paired with your Profit & Loss report.
Q: What if my balance sheet doesn’t balance?
A: You likely have a categorization error or an unreconciled account. Book a call with a ProAdvisor for help.
Q: Can I share this report with my CPA or lender?
A: Yes, QuickBooks lets you export reports as PDF or Excel files.
Q: Is the balance sheet useful for tax planning?
A: Absolutely. It provides crucial context to your financial activity and helps your CPA understand your full picture.
📞 Need help understanding or cleaning up your balance sheet?
Book a free call with Dr. Bryan Raya, QuickBooks ProAdvisor:
👉 https://calendly.com/dbr_bookkeeping/book-a-free-call-with-dbr
Let’s start Doing Business Right.
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