FAQ on excel templates for balance sheet management | LUZ Templates

FAQ on excel templates for balance sheet management

What are the balance sheet essentials?

The accounting equation lies at the core of the balance sheet. The formula used in balance sheet Excel templates from LUZ Templates is the same as in any other Excel balance sheet: Assets = Liabilities + Owner’s Equity. It makes up the basis of three sections of a simple balance sheet template:


The section considers three separate sub-categories that are summed up at the bottom.

Current Assets

Short-term or current assets usually include: 

  • Cash, including balances in savings accounts 
  • Accounts receivables or what a business must get within 60 days maximum.
  • Inventory
  • Prepaid expenses like insurance

Fixed Assets

Typically, fixed assets are represented in balance sheet Excel templates by:

  • Property
  • Land
  • Equipment
  • Intangible assets – patents, copyrights
  • Any long-term investments
  • Accumulated depreciation (in negative value)

Other Assets

This section implies any other assets to be included in a balance sheet to assess the financial state of the business.

Liabilities and Owner's Equity

The section is also divided into three categories that are totaled at the bottom of the balance sheet.

Current Liabilities

Current liabilities include common liabilities like:

  • Accrued salaries, compensations
  • Short-term loans
  • Payable income tax
  • The current scope of the long-term liabilities

Long-Term Liabilities

Typically, the section is represented by long-term debt. There is a spare line in any simple balance sheet template for other long-term liabilities

Owner's Equity

It shows the amount of money a business owner invested in the company. It’s essential to assess the financial state of a business and, therefore, must be recorded in a balance sheet.

Financial Ratios

This is the section of a balance sheet where the final calculations are shown. Typically, there are five ratios:

  • Working capital
  • Quick ratio
  • Current ratio
  • Debt-to-equity ratio
  • Long-term debt-to-equity ratio.

In an Excel balance sheet template for a small business by LUZ Templates, all the formulas are pre-arranged. It means you just need to fill in the data while the calculations will be performed automatically. 

How do I gain insight into my company’s financial position?

To understand the financial position of a business, you need to plan, record, manage, and report your finance. A balance sheet is an ideal accounting solution. You can assess key metrics with the help of the pre-arranged formulas to evaluate your financial health.

Do I need any other sheets besides a balance sheet?

Typically, a business needs general ledgers as a complement to a balance sheet. Moreover, a cash-flow or income statement can also be useful.

How do I customize my balance sheet template?

After the download of a blank balance sheet from LUZ Templates is completed, you can open it and start customizing any field. You can specify your business name and other data, modify the lines, and add or delete the categories. 

What types of balance sheet layouts exist?

No matter whether a business uses a yearly or monthly balance sheet template, there can be two layout options. They differ in terms of data presentation in balance sheet Excel templates:

Equation Layout

In an equation layout, the categories in a balance sheet are presented under the same sequence as in an equation: one below another. It means that assets are followed by liabilities and then equity. 

Side by Side Layout

This type implies that assets are placed on the left-hand side of the balance sheet, while liabilities and equity – on the right-hand side. Such a layout can be more convenient for comparison and comprehension.