The purpose of a Sample Balance Sheet Reconciliation Template is to prepare financial documents for use in an audit or review of your company. In other words, it would be used to give the auditors and the review board a hand as they examine your company’s finances. No doubt, a good balance sheet is a must for any financial reporting purposes. But not everyone knows how to write a balance sheet which would serve as a base document in creating a Reconciliation Template.
The basic idea behind a Balance Sheet is to compare the net assets and liabilities of a company. They are commonly written on different charts depending on the accounting system used by your company. One such example would be the balance sheet of a firm that uses the current accounting systems and another one that uses the book value accounting method.
All companies have a common element; that is a business and how the company does is a direct result of how the business is being conducted. The first step in any financial statement analysis would be identifying these business entities. Some good examples would be as follows:
What is the nature of the business entity? What business interests does it have? Is there a management team that controls it? Does the management team have shareholders, or are its shares owned by the company?
You could also start by looking at the operations and the business activity that takes place within the company. This would also help you find out more about the nature of the business and what kind of business financing they are using.
While a small business can be operated without any debt, larger companies may have a series of loans and leases that they will need to monitor every day, so you will need to take into account these types of costs as well. It is important to put these into the Reconciliation Template as well, especially if you have several loans and leases.
Finally, the Balance Sheet is supposed to provide the auditors and the review board with the information that they will need when they are analyzing the finances of your company. It should also include detailed data and accurate information so that the review board can analyze it easily. You may want to provide a different template for each business category, but for your small business Reconciliation Template, you will likely be able to combine a few of the previous two.
If you have any doubts as to how to write a Balance Sheet, take some time to understand the basics of financial statements before you write one for your small business. Once you understand the concepts, the next step is to start creating a few examples of what you intend to write in the Reconciliation Template. It is not too hard and will only take a little time, so don’t procrastinate and start today!