How to Make a Balance Sheet (Without Panicking When Your CPA Asks)
“Dr. Raya… my CPA just asked me for a balance sheet... what do I do!?”
If I had a dollar for every time I’ve heard that question from a stressed-out entrepreneur, I could probably retire—and still keep cleaning up balance sheets for fun.
So, if you’ve ever been blindsided by a bank, CPA, or even a grant application asking for one, let me walk you through what a balance sheet is—and how to create one without spiraling into an existential business crisis.
What Is a Balance Sheet?
A balance sheet is simply a snapshot of your business’s financial health on a specific day—usually December 31 for taxes or the end of any given month for reporting.
It tells a simple story:
What you own, what you owe, and what’s left over.
What’s Inside a Balance Sheet?
Let’s break it into three parts:
Assets – What your business owns
(Cash, checking accounts, outstanding invoices, equipment, etc.)Liabilities – What your business owes
(Credit cards, loans, unpaid bills)Equity – What’s left for the owner(s)
(Owner’s capital, retained earnings)
It follows a simple formula:
Assets = Liabilities + Equity
That’s why it needs to balance—otherwise, something's off and you might need to check your categorization (yes, even that Venmo charge).
How to Create a Balance Sheet
Pick a Date – Usually month-end or year-end (e.g. Dec 31).
Add Up Your Assets – Bank balances, receivables, equipment.
List Liabilities – Credit cards, loans, bills due.
Calculate Equity – What’s left after you subtract liabilities from assets.
Double Check It Balances – Because if it doesn’t, your CPA might start sending you passive-aggressive follow-up emails.
Real Talk
Most entrepreneurs never learned this stuff. That’s okay—no shame.
I’ve worked with tons of business owners (especially service-based and digital entrepreneurs) who crush it in their niche but break into a cold sweat when a lender asks for a basic financial report.
The good news? You don’t have to do it alone.
FAQs I Get All the Time
Q: Can I just make a balance sheet in Excel?
A: Yes—but if you use QuickBooks Online (QBO), it will generate one for you automatically. (And we can clean it up if it looks like spaghetti.)
Q: What if mine doesn’t balance?
A: Something's probably miscategorized. That’s fixable—don’t panic.
Q: Do I need one if I’m not applying for anything?
A: Yes! It helps you know your financial health. Don’t wait for someone to ask.
Want to skip the stress and let a pro handle it?
📞 Book a free 30-minute call with me, Dr. Bryan Raya—Certified QuickBooks ProAdvisor and founder of DBR Bookkeeping.
Let’s clean up your books, build your reports, and get you confidently prepared for anything your CPA (or banker) throws your way.
Let’s start Doing Business Right.