A balance sheet, or statement of financial position, shows what a company owns and owes on a given date: assets on one side, liabilities and equity on the other. In the template above you enter each account balance and pick its class; the sections are totalled, the balance check updates at once, and you download the statement as Excel with formulas or as a PDF. The example is a supplies company in Jeddah as at 31 December 2026.
In the example, total assets are SAR 300,000 and liabilities SAR 120,000, so equity is SAR 180,000 and the difference is zero: the balance sheet balances.
How to use the balance sheet template
- Enter account balances at the statement date, from the post-closing trial balance or your ledgers.
- Pick each account's class: current or non-current assets, accumulated depreciation, current or non-current liabilities, or equity.
- Watch the Balance check card: green with "Balanced" when the difference is zero, red with "Not balanced" when it is not.
- To compare with last year, open the Two-year comparison tab.
- Open Print format, add the company name and date, and download a PDF or Word file.
What goes in each column
| Column | What to enter |
|---|---|
| Account | The account name from your chart of accounts. |
| Class | One of six. An account with no class is shaded and left out of the totals. |
| Balance | The balance on the statement date, always positive. |
| Value in statement | Calculated: the same balance, with accumulated depreciation shown negative because it is deducted from cost. |
What is a balance sheet?
A balance sheet is a snapshot of a company at the close of one day. It lists the resources the company controls (assets) and how they are financed, by outsiders (liabilities) and by the owners (equity). "Statement of financial position" is the term used under IFRS as endorsed in Saudi Arabia; "balance sheet" is the older and more common name. Banks ask for it when assessing financing, partners read the value of their stake from it, and accountants prepare it at year-end.
The balance sheet equation and how to check it
Assets = liabilities + equity. In the example, 300,000 = 120,000 + 180,000, so the difference is zero. Every transaction moves two sides by the same amount: buying SAR 10,000 of stock on credit raises inventory and trade payables together; paying a supplier SAR 5,000 lowers cash and payables together; a partner depositing SAR 20,000 raises cash and share capital together. That is double entry at work. If the template shows a difference, the cause is in the input: a missing account, a wrong class, or net profit for the year left out of equity.
Balance sheet format: elements and classes
| Element | Examples | Example (SAR) |
|---|---|---|
| Current assets | Cash and bank, receivables, inventory, prepaid expenses | 194,000 |
| Non-current assets | Furniture, equipment and vehicles at cost 140,000 less accumulated depreciation 34,000 | 106,000 |
| Current liabilities | Payables, accruals, VAT and zakat payable | 65,000 |
| Non-current liabilities | Long-term loans, end-of-service benefits provision | 55,000 |
| Equity | Share capital, reserves, retained earnings, net profit for the year | 180,000 |
The line between current and non-current is twelve months. The current ratio (current assets / current liabilities) is 2.98 in the example and appears in advanced mode with the current assets share of total assets (64.7%). In the comparison, assets rise from SAR 272,000 to SAR 300,000 and equity grows by SAR 35,500, which is the year's net profit.
Steps to prepare a balance sheet from a trial balance
- Close revenue and expense accounts into the income statement and take net profit for the year.
- Bring asset, liability and equity balances over from the trial balance, each in its class.
- Add net profit for the year as an equity line, or add it to retained earnings less dividends.
- Check that the difference is zero, then add the date and signatures.
Net profit comes from the income statement, and the cash figure here matches the last line of the cash flow statement; each has its own template.
Common mistakes
- Leaving net profit for the year out of equity, so assets exceed the other side by exactly that profit.
- Keeping the loan instalment due this year under non-current liabilities instead of current.
- Entering accumulated depreciation as a negative balance, so it is deducted twice.
- Putting revenue and expense accounts on the balance sheet; they belong in the income statement.
Accounting and regulatory notes
The template follows the general balance sheet format and does not replace statements prepared under the standards endorsed in Saudi Arabia by SOCPA. Enter reserves as they stand in your books; any statutory reserve percentage is set by the Companies Law and your articles of association [verify]. Statements filed with authorities or banks may need an external auditor's report.
When year-end goes into hunting a balance sheet difference
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Frequently asked questions
Is a balance sheet the same as a statement of financial position?
Yes, they are two names for one statement. Statement of financial position is the IFRS term; balance sheet is the older name that most people still search for.
Why does my balance sheet not balance?
The usual causes are net profit for the year missing from equity, an account with no class, accumulated depreciation entered as negative, or a revenue or expense account on the sheet. Start with the Difference card, then review the shaded lines.
Does the balance sheet include this year's net profit?
Yes, within equity, as its own line or added to retained earnings. In the example net profit for the year is SAR 35,500, which brings equity to SAR 180,000.
What is the difference between current and non-current assets?
Current assets turn into cash within a year, such as receivables and inventory. Non-current assets serve for years, such as equipment and vehicles, and appear at cost less accumulated depreciation.
How do I prepare a balance sheet from a trial balance?
Take the asset, liability and equity balances from the trial balance after closing revenue and expenses, add net profit for the year to equity, and check that the difference is zero.