Thread by @WoleOluyemiCo

Lets look at how to prepate a balance sheet today.
Most business owners choose one of three options to create balance sheets:

Hiring an accountant or CPA
Drawing up a balance sheet by hand
Using accounting software

Using an accountant costs the most but comes with the least amount of risk because an accountant is much less likely to make a balance sheet mistake.

Drawing up your own balance sheet is free unless you make a costly mistake.

But balance sheets are simple enough that you can catch errors quickly, if not on the current sheet then on the next one you draw up.

You can create your own two-column balance sheet using spreadsheet software or download am Excel balance sheet template.

Accounting software has a safe landing between cost and ease. There are good free accounting software, but there are paid ones too.

The advantage for using accounting software is; as long as you’ve entered your numbers correctly, you can generate balance sheets without stress.

The next question should be; how can I draw up a balance sheet by hand?

1. List your assets
On the left half of your sheet, list your assets, starting with the most liquid assets and moving to least.

Liquid assets are assets you can easily convert to cash, so you’ll want to start with your cash balance, then list the easiest items to cash out on, then the hardest items to cash out.

Another way to think about liquidity is in terms of time

Current assets include everything you can turn into cash within a year or less. For example; unsold bags from your boutique, or equipment,like your industrial bread maker.
Long-term assets are things you can't liquidate within a year like; long-term investments, intangible assets

To keep things organized, split up your list of assets by current vs. long term. At the end of each category, list the total; then at the very bottom of the assets column, list the sum total of all the assets.

We shall continue on the steps, watch out.
#woleoluyemi