Run and Decipher a Balance Sheet Report in QuickBooks
HOW? Reports – Company & Financial – Balance Sheet Standard
Date = last day of prior month (assuming current month isn’t completed yet)
WHY? The balance sheet gives you a snapshot of the health of your business. It will also identify potential issues that would affect the P&L
WHAT TO LOOK FOR:
Negative balances in the asset and liability sections.
Accounts that should have a negative balance include:
Accumulated Depreciation and/or Amortization
Owner’s Draw (in the Equity section)
Review credit cards closely
Credit card accounts should NOT have a negative balance unless you truly have a credit balance (which means you overpaid on the credit card). If there is a negative balance in a credit card account, expenses have not been entered against the credit card liability account. Find your credit card statements and make sure all transactions are entered and then make sure the account is reconciled.
