<klink type="cncpt">Tell me about the balance sheet</klink>
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<p>The balance sheet shows the net worth of your business at a given point in time. It reports your <glossary tNum="288827">assets</glossary>, liabilities, and owner's <glossary>equity</glossary>. The balance sheet is a financial snapshot of your company<mdash/>what it owns, what it owes, and where it raised operating capital. Unlike an income statement, a balance sheet does not report business net profit. Instead, a balance sheet displays the financial health of a business on a certain date. A comparative balance sheet shows changes in the company's assets, liabilities, and equity over time.</p>
<p>By checking your balance sheet regularly, you can monitor important account balances, such as cash on hand and in the bank, <glossary>accounts receivable</glossary>, inventory, and <glossary>accounts payable</glossary>.</p>
