--- title: "Balance sheet: Definition and Sources | Tax Glossary" description: "A balance sheet is a statement of what a business owns, what it owes and what the owners have left, shown as of one date." url: https://wallacecpa.multisites.ai/glossary/balance-sheet publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- Bookkeeping and payroll # Balance sheet A balance sheet is a statement of what a business owns, what it owes and what the owners have left, shown as of one date. A balance sheet is a snapshot. The IRS says it shows the assets, liabilities and your equity in the business on a given date. The SBA calls it the foundation of managing business finances. Assets are things the business owns, such as cash and equipment. Liabilities are debts and bills. Equity is what is left for the owners. A balance sheet is not the same as a [profit and loss statement](https://wallacecpa.multisites.ai/glossary/profit-and-loss-statement), which covers a period of time. Equipment on the sheet usually loses value through [depreciation](https://wallacecpa.multisites.ai/glossary/depreciation). Banks ask for it when you apply for a loan. See the [business advisory page](https://wallacecpa.multisites.ai/services/business-advisory#cash-flow) for cash flow planning. [Wallace CPA can helpBusiness advisory](https://wallacecpa.multisites.ai/services/business-advisory) ## Related terms - [Profit and loss statement](https://wallacecpa.multisites.ai/glossary/profit-and-loss-statement) - [Chart of accounts](https://wallacecpa.multisites.ai/glossary/chart-of-accounts) - [Depreciation](https://wallacecpa.multisites.ai/glossary/depreciation) - [Business valuation](https://wallacecpa.multisites.ai/glossary/business-valuation) ## Sources 1. [IRS: Publication 583, Starting a business and keeping records](https://www.irs.gov/publications/p583) 2. [SBA: Manage your finances](https://www.sba.gov/business-guide/manage-your-business/manage-your-finances) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092