Balance Sheet
Overview
Balance Sheet – Business Overview
What Business Information This Report Provides
The Balance Sheet presents a snapshot of your organization’s financial position at a specific point in time. It shows what the business owns, what it owes, and the net value for owners or shareholders.
In Dafater, this report summarizes all financial activity recorded in the general ledger into three core sections: - Assets – Resources owned by the business - Liabilities – Obligations the business must settle - Equity – Owner’s or shareholder’s interest in the business
The Balance Sheet answers a critical question:
“How financially strong is the business right now?”
When and Why to Use This Report
Use the Balance Sheet whenever you need to: - Review overall financial health - Understand liquidity and solvency - Support management decisions - Share financial position with investors, lenders, or auditors - Meet statutory and compliance requirements
Common timings include: - Month-end or year-end closing - Before applying for financing or credit - During audits or board reviews - While planning expansions or major investments
Key Columns and What They Mean for Business
Account Name
Shows the financial category (for example, Cash, Accounts Receivable, Loans Payable). This helps identify where resources are invested and where obligations exist.Account Balance
Displays the net value of each account as of the selected date.- Positive balances typically indicate resources or retained earnings.
- Negative balances usually represent liabilities or reductions in value.
Group / Parent Account (if applicable)
Aggregates related accounts to give a summarized view, useful for high-level analysis.Total (per section)
Summarizes Assets, Liabilities, and Equity.
The fundamental rule applies:
Assets = Liabilities + Equity
Available Filters and Their Business Purpose
Company
Selects which legal entity’s financial position you want to review. Useful for businesses with multiple companies.As on Date
Defines the exact date for the snapshot. This allows comparison between different periods.Accounting Book (if used)
Helps view financials under different accounting perspectives, such as statutory vs. management reporting.Cost Center / Project (optional)
Allows analysis of financial position related to a specific department, location, or project.Currency
Ensures the report reflects balances in the desired reporting currency.
How to Interpret the Results for Business Decisions
Strong Asset Position
Indicates the business has sufficient resources to operate and grow.High Current Assets vs. Current Liabilities
Suggests good short-term liquidity and ability to meet immediate obligations.Rising Liabilities
May signal increased borrowing or pending obligations that require cash planning.Equity Growth
Reflects retained profits and long-term business value creation.Imbalance or Unusual Changes
May highlight accounting issues, unexpected expenses, or financial risks needing investigation.
Common Use Cases and Scenarios
Management Review Meetings
To assess financial stability and make strategic decisions.Loan or Investment Discussions
To demonstrate financial strength and creditworthiness.Year-End Financial Statements
As a core financial report for compliance and audits.Business Expansion Planning
To evaluate whether the company can fund growth internally or needs external financing.Risk Assessment
To identify over-dependence on debt or insufficient working capital.
Summary
The Balance Sheet in Dafater is a vital decision-making report that provides a clear, structured view of your business’s financial standing at a given moment. Used regularly, it helps leadership maintain control, plan confidently, and communicate financial strength to all stakeholders.
Report Information
- Module: Accounts
- Related DocType: GL Entry
- Report Type: Script Report
- Standard: Yes