Balance Sheet

The Balance Sheet is the first of LedgerBuk’s three financial pillars. It shows your business’s financial position on a specific date — a snapshot of what you own, what you owe, and what’s left.

Purpose

The Balance Sheet answers: “What’s my business worth right now?”

It breaks down into three parts:

• Assets — what your business owns (cash, equipment, money customers owe you)
• Liabilities — what your business owes (bills, loans, taxes)
• Equity — what’s left after subtracting liabilities from assets (your net worth)

These three always balance: Assets = Liabilities + Equity. If they don’t, something needs investigating.

Accessing the Balance Sheet

1. Navigate to Reports → Balance Sheet
2. Select the “As of” date
3. The report generates automatically

Note

The Balance Sheet is available on Pro and Enterprise plans.

Reading the Report

Assets (What You Own)

Account	Amount
Current Assets
Cash	KES 500,000
Accounts Receivable	KES 150,000
Inventory	KES 75,000
Total Current Assets	KES 725,000
Non-Current Assets
Equipment	KES 200,000
Less: Accumulated Depreciation	(KES 40,000)
Total Non-Current Assets	KES 160,000
Total Assets	KES 885,000

Current assets are things you can convert to cash quickly (within a year). Non-current assets are long-term items like equipment or vehicles.

Liabilities (What You Owe)

Account	Amount
Current Liabilities
Accounts Payable	KES 75,000
Accrued Expenses	KES 10,000
Total Current Liabilities	KES 85,000
Long-Term Liabilities
Bank Loan	KES 100,000
Total Long-Term Liabilities	KES 100,000
Total Liabilities	KES 185,000

Equity (Your Net Worth)

Account	Amount
Owner’s Capital	KES 400,000
Retained Earnings	KES 300,000
Total Equity	KES 700,000

The Balance Check

At the bottom, you’ll see whether things add up:

Total Assets:                    KES 885,000
Total Liabilities + Equity:      KES 885,000  ✓ Balanced

If these numbers match, your books are correct.

How Often to Review

When	Why
Monthly	Track your financial position over time
Before applying for a loan	Banks and lenders will ask for this
Before making big decisions	Buying equipment, hiring, expanding
At year-end	Required for tax filing and compliance

How It Connects to Other Reports

• Profit & Loss → Your profit for the period flows into Retained Earnings on the Balance Sheet when you close a period
• Cash Flow Statement → Your ending cash on the Cash Flow should match the cash balance on the Balance Sheet
• Trial Balance → Run this first to confirm your books are balanced before generating the Balance Sheet