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Balance Sheet Explained

A complete overview of the layouts, location, and methodology of the Balance Sheet within Fathom

Updated over 2 years ago

Contents:


How Balance Sheet values are calculated

The Balance Sheet is one of the three main financial statements and is typically presented alongside a Profit & Loss and Statement of Cash Flows. A balance sheet provides a ‘snapshot’ view of your company's Assets, Liabilities and Equity at any given point in time. 

The Balance Sheet lists each asset, liability and equity account with the corresponding balance at the close of a selected period. The statement provides you with an overall indication of a businesses position and can provide quick insights with regards to working capital and liquidity. 

Fathom will automatically pull in your summary Balance sheet data from the source accounting system on initial import.


Layouts

Fathom enables you to present your balance sheet data in four different ways.

A= L+ E: A popular layout under GAAP accounting principles. The logic is that a company has to pay for all the things it owns (assets) by either borrowing money (taking on liabilities) or taking it from investors (issuing shareholders' equity).

A - L = E: A popular layout to align the balance sheet with International Financial Reporting Standards (IFRS). This borrows from the same logic, that net assets (assets - liabilities), are equal to shareholders' equity.

There are two options for this layout. (Current, Non-current) lists the Current Assets before the Non-current Assets while (Non-current, Current) lists the Non-current Assets first.

Separation of Operations, Investing, Financing: Provides an operational view of the assets and liabilities in your company. Can provide an indication of how the company has positioned itself and how the company is investing its operating income.

Due to the static nature of a balance sheet, many financial ratios draw on data included in both the balance sheet and the more dynamic income statement and statement of cash flows to provide a more holistic approach to business intelligence.


Location

You are able to access your Balance Sheet from the following locations within Fathom:

Analysis tools

You’re able to dynamically view your Balance Sheet from the Financials Analysis tool

Report Editor 

You’re able to add a Balance Sheet financial table to your customisable Fathom reports

Excel reports

You can download Financial Results for your Balance Sheet from Fathom’s Excel reports


Additional knowledge & common questions:

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