The quick read
Key points
- A balance sheet describes balances at a selected date.
- Assets equal liabilities plus equity in balanced books.
- An equation that balances does not prove that every record is complete or correctly classified.
Choose the reporting date
Open the balance sheet and choose the date and available scope you want to review. Compare the same date across exports. An income report covers activity during a period, while a balance sheet carries the accumulated balances through the selected date.
Read the three groups
Assets include recorded resources such as bank balances and asset cost. Liabilities include obligations such as loans and refundable deposits. Equity reflects the owner's recorded interest, including contributions, distributions and retained results. Review the actual account names and entries instead of assuming a familiar label proves its balance is right.
Compare supporting records
Check bank balances against reconciled statements and loan balances against lender records. Review asset schedules, deposit records and opening entries. Book value is an accounting amount from the recorded cost and adjustments; it is not a current property valuation.
Investigate differences with context
Use available detail links and the general ledger to inspect unexpected balances. Check dates, account types, opening balances and omitted activity. For linked books, review the sync scope because bank setup, loans, capital purchases and some other balances need separate accounting records.
Example to review
Illustrative bookkeeping records. Confirm the treatment of your own transactions with your accountant.
| Assets | Liabilities | Equity |
|---|---|---|
| $180,000 | $120,000 | $60,000 |
Common questions
Why is property value different from the balance sheet?
A market estimate and the recorded book balance measure different things. Review recorded cost, depreciation and adjustments with your accountant.
Can the books balance and still have mistakes?
Yes. An omitted transaction or a balanced entry in the wrong accounts can leave the equation intact.
Keep your next step simple.
Use the product guide for the app workflow, or contact support with your question. Bookkeeping reports are not tax advice; review filing decisions with a qualified professional.