Step-by-step plan drawing up a balance sheet

ASSETS (debit)
1A

• Have you bought a studio/workspace/office? Determine its value.
• What machines/equipment do you have? Determine its current market value.
• What is your inventory comprised of? Determine the current market value.
  Add up these amounts.

1B

• Do you have work/products in stock? Determine their value.
• Do you have any outstanding invoices to customers? To what amount?
• Do you have VAT to receive? To what amount?
  Add up these amounts.

1C

• Do you have money on one or more business bank accounts? How much?
• Do you have any cash? How much?
  Add up these amounts.

LIABILITY (credit)
1D

• Do you currently hold a mortgage on your studio? What is the balance that remains to be paid?
• Do you have any current loans for a period of longer than a year? What is the total amount?
  Add up these amounts.

1E

• Do you have any overdrafts at the bank? To what amount?
• Do you still need to pay invoices from suppliers? To what amount?
• Do you still need to pay VAT to the Tax authorities? To what amount?
  Add up these amounts.

1F

• Add up the amounts under A, B and C.
• Do the same with the amounts under D and E.
  Subtract the total amount of D and E from the total amount of A, B and C. The result represents your owner’s equity.

Name of the business or artist: .......
Balance sheet as per: .......