The balance sheet is the main source of information about the state of the enterprise

The balance sheet is one of the main forms(form number 1) of the annual accounts of enterprises. It must be composed of all organizations that are on a common taxation system. Visually, it is a table, which reflects the sources of the formation of funds: own and borrowed (passive), as well as directions of use (asset).

The balance sheet of the organization is not necessaryonly for tax authorities and external auditors, but, first of all, for the company itself. With its help, it is possible to assess the state of the enterprise and, based on the analysis of the information received, to develop measures to improve the state and determine the direction of development. The passive consists of three large sections:

balance sheet is
1. Capital and reserves. The amount of originally invested funds by the owners of the enterprise is the authorized capital. In the process of development, it can increase in size, thereby increasing the company's reliability levels for creditors and attractiveness for potential investors. The section also contains other sources of property formation (surplus and reserve capital) and the amount of retained earnings reflecting the financial independence of the enterprise.

2. Long-term financial liabilities. Contains information on long-term loans, which attracted the organization, as well as on deferred tax liabilities.

3. Short-term obligations are obligations that have been incurred in order to ensure stable and uninterrupted work, maintaining current solvency.

balance sheet of the organization
The balance sheet is a tool for determining the level of independence, independence of the enterprise. The higher the proportion in the balance of borrowed funds, the lower the coefficient of autonomy.

The balance sheet of the firm, more precisely its active part, shows how the company manages the available funds:

1. Non-current assets. The section contains information on long-term investments, the amount of fixed assets and available intellectual property.

2. Current assets. The section reflects the amount of available reserves, as well as cash (in the form of money in the cash register and on settlement accounts, as well as the debt of customers).

Thus, the balance sheet is the main source of information about the company's property stocks and its solvency, which is very important for potential lenders.

The structure of the active part of these statementsthe company allows you to assess the level of investment in fixed assets, prospects and the scale of technical and intellectual development. The structure of working capital shows how effective the firm's relationship with debtors is, its liquidity level, the degree of warehouse utilization and the efficiency of using free cash.

balance sheet of the firm

The balance sheet is the main sourceinformation for the analysis of the state of the enterprise. For a deeper evaluation and development strategy development, it is advisable to study the accounting analysis in dynamics to determine the main negative or positive trends. This will make it possible to clearly identify the sources of existing problems to the management of the enterprise and will help to manage the property in the future more efficiently.