The presented Balance Sheet will summarise Assets and Liabilities at each Year End:
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The Balance Sheet should show the Assets and Liabilities at each Year End.
Your Net Assets are your Assets less your Laibilities, and these will equal the owner's Share Capital and Retained Profits.
This is the standard presentation.
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The summarised Balanced Sheet above is calculated from more detailed month by month calculations.
The balances at December 07 are the Year End balances in the summary here on the right - and all the previous months are shown in the detailed calculations. |
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Timing Issues
When you prepare the month by month plan, you begin to appreciate timing issues. For example you may make a sale in May, but not receive the money until June. So in the Profit and Loss Account, the sale appears in May, but in the Cash Flow the sale appears in June. These timing differences also occur with expenses: some expenses, eg. salaries are paid in the month, whilst your rent may only be paid quarterly – but would need to be spread across 3 months in the Profit and Loss Account.
OX SYSTEMS has pre-prepared Business Plans which will speed up this process for you. Please contact us for this service.
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