> ## Documentation Index
> Fetch the complete documentation index at: https://docs.getasset.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Balance Sheet

## **Overview**

The **Balance Sheet** provides a snapshot of a [Business’s](/getstarted/CoreConcepts#businesses-your-smb-customers) financial position at **a given point in time**, summarizing what the Business owns (assets), what it owes (liabilities), and the owner’s interest in the company (equity).

The Balance Sheet is based on the **fundamental accounting equation**:

$\textit{Assets} = \textit{Liabilities} + \textit{Equity}$

Key components:

* **Assets** – Resources owned by the Business, such as cash, receivables, and equipment.
* **Liabilities** – Obligations owed to others, such as loans and unpaid bills.
* **Equity** – The Business’s net worth after liabilities are deducted from assets.

The Balance Sheet helps Businesses assess financial stability and creditworthiness.

## **How to Generate a Balance Sheet**

1. Call the [Retrieve the Balance Sheet Report](/api-reference/reports/retrieve-the-balance-sheet-report) endpoint with:
   * Business ID
   * Simple Date or Timestamp
2. Display the data using the following structure (backed by customer research for clarity):
   * **Assets**
     * Current Assets (e.g., cash, accounts receivable, inventory)
     * Non-Current Assets (e.g., equipment, long-term investments)
     * **Total Assets**

   * **Liabilities**
     * Current Liabilities (e.g., accounts payable, short-term loans)
     * Non-Current Liabilities (e.g., long-term loans, deferred revenue)
     * **Total Liabilities**

   * **Equity**
     * Retained Earnings
     * Owner’s Equity / Shareholder Equity
     * **Total Equity**

Since the Balance Sheet is a snapshot in time, all values should reflect the financial position at the specified report date

## **Balance Sheet Best Practices**

* **Handling Report Dates Accurately –** The Balance Sheet reflects a **single moment in time**, which can cause confusion if not communicated properly. When requesting a Balance Sheet, you can pass either:
  * **A date →** Asset will return the Balance Sheet as of 23:59:59 EST on that date.
  * **A full timestamp →** Recommended for high-transaction-volume Businesses to align reporting with local time zones. Clearly indicate to users that the Balance Sheet represents a fixed point in time.

* **Enable Ledger Drill-Downs** – Users may need to investigate specific balances. Use the [Ledger Statement](/bookkeeping/reports/ledgerstatement) report to provide transaction-level details.

* **Set Opening Balances Correctly** – When creating an [External Account](/getstarted/CoreConcepts#accounts), ensure the **Opening Balance** is accurate. Asset uses this as the starting point for running balances in the Balance Sheet. An incorrect Opening Balance will lead to misstated financials.
  <Note> Questions? Reach out via our [Contact form](https://www.getasset.com/get-in-touch). </Note>