Lesson 4 – Statement of Financial Position

 

Statement of Financial Position – Balance Sheet

  • Summarizes all assets and liabilities
  • Net Assets listed by net asset class

Reflects the overall financial position of your organization at a fixed point in time. It totals all your assets and subtracts all your liabilities to compute your overall net worth (or net loss). This statement is referenced when applying for funding.

Assets are your cash accounts, receivables, prepaid expenses, security deposits, fixed assets and other long-term assets, such as mortgages or notes receivable.

Liabilities are your accounts payable, accrued expenses, payroll tax liabilities and loans payable.