Financial Planning Template II

The Balance Sheet is essentially the financial snapshot of your business at a specific point in time. It clearly and systematically shows everything the company owns (Assets) and how those assets have been financed—either with shareholders’ equity (Equity) or with debts owed to third parties (Liabilities). It answers two key questions: What do we have? and How did we pay for it?

Use it to present your project to investors and banks, who will want to see the solvency and structure of your business. It’s also a valuable tool for internal strategic decisions, such as planning a major investment, assessing your capacity to take on more debt, or deciding whether it’s the right time to distribute dividends.

The goal is to give you a clear view of your company’s stability and solvency, enabling you to make informed decisions and demonstrate the strength of your project to investors, shareholders, and financial institutions.

Template Sections Explained in Detail

The template is structured around the fundamental accounting equation: 𝐴𝑠𝑠𝑒𝑡𝑠 = 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠+𝐸𝑞𝑢𝑖𝑡𝑦.  This means that the total value of what you own must always equal the total value of how it has been financed.

Assets represent how the company’s investments are allocated: everything it owns and uses to generate income. They are classified according to liquidity—that is, how easily they can be converted into cash:

• Non-current assets form the stable, long-term foundation of the business. They include items that remain for more than one year, such as software and patents (intangible assets), IT equipment and furniture (tangible assets), or long-term financial investments.
• Current assets drive day-to-day operations. These are resources expected to be converted into cash within a year, such as inventory, outstanding invoices from clients (trade receivables), and cash on hand or in bank accounts (treasury).

On the other side of the equation, Equity and Liabilities explain where the money came from to finance those assets.

Equity represents the company’s own financing. It mainly consists of subscribed capital (shareholders’ contributions) and retained earnings, i.e., profits or losses generated during the financial year.

Liabilities represent external financing, or debts owed to third parties. These are divided by maturity:

• Non-current liabilities: debts due in more than one year, such as large bank loans or investor financing.
• Current liabilities: short-term debts, such as invoices from suppliers (trade payables), which are essential for managing day-to-day liquidity.

Why Use This Template
Download and start using this template now to maintain rigorous and professional financial control of your business.

This tool is part of our Financial Planning Kit and has been designed to complement the analysis of your Profit and Loss Statement (P&L). By using them together, you’ll gain a deeper and more comprehensive understanding of your company’s financial situation. Soon, this kit will be completed with a Key Financial Ratios Tool, enabling you to achieve a truly integrated analysis.

Remember, you can find all available templates in the Tools and Templates section of the ONE Platform.