UPDATE 2: Thanks to everyone who sent in their feedback to help make this new tool even better. Today we’ve released an update to the Balance Sheet tool which has added support for invoices with multi-currencies. FreshBooks will convert the values to the system-currency using the “As Of” balance sheet date, sum together all values, and populate the Accounts Receivable (from FreshBooks) amount. Note: FreshBooks will use the closest date in the past that we have an exchange rate for and if the date is in the future, today’s exchange rate will be applied. To see a breakdown of the value, hover over the currency breakdown below the accounts receivable field.
UPDATE: We love receiving your feedback and your responses have been great so far. We’ve seen the comments about the multi-currency functionality for the balance sheet and have responded directly but we also wanted to add: As a software company that likes to push updates frequently, we take pains to ship even the simplest release. We believe the new balance sheet tool is great for small business owners even though it doesn’t populate automatically. It’s also free of the complexities that make it hard for small business owners to run their business day-to-day. We’re listening to your feedback in order to continue making FreshBooks better.
You’ll be ready for tax time (or those important discussions with your bank) with the new Balance Sheet tool in FreshBooks. Balance sheets aren’t a report that you need to create every day but for the times that you do (like when you’re applying for bank financing or digging deep into your accounting to count up all the pennies), this report will be an essential tool. As of today, FreshBooks lets you generate a formatted balance sheet that captures a summary of your company’s assets, liabilities, and equity and determine the health of your business.
Small businesses owners need a simple, reliable tool to easily understand the status of their business and to help get ready for tax time. The new Balance Sheet in FreshBooks allows you to do just this. Find them by clicking on the Reports tab when you’re logged into your FreshBooks account or read on to find out when you need balance sheets and how they work:
Hold on, what IS a Balance Sheet exactly?
A balance sheet is a picture of your business as of a specific date, and typically calculated at the end of the quarter or year. Gain a detailed picture of your business and a summary of your company’s assets, liabilities, and equity or to get a detailed account capture for end of quarter reporting or for those important discussions with your accountant.
When do I use a Balance Sheet?
A business will generally need a balance sheet when applying for loans or grants, submitting taxes, or even seeking investors.
How do I create a Balance Sheet in FreshBooks?
The FreshBooks Balance Sheet guides you through a simple process to create a balance sheet and show you how to calculate the line items that you need. Your information will be used to generate a balance sheet that can be printed and shared with your accountant, the bank or even the taxman. Plus, even if you don’t have all the information available, you can save the balance sheet and continue editing it at a later date.
What line items do I need on my balance sheet?
Double check with your accountant or bookkeeper for their recommendation on what line items are essential for the report you’re trying to build (you can choose from lots of fields). The list of line items shown when you first create a balance sheet are a great starting point on what you need on your balance sheet. If you don’t see a line item you need, just click on the “Add more line items” link.
Need more info on what is considered “equipment” or a simple definition of “Accounts Receivable”?
Fear not, the plain English version of financial speak is available right where you create your report: simply hover over each field for a pop-up definition. For in-depth examples, visit the FAQ help page on Balance Sheets.