I'm a sole proprietor of a construction business. How do I complete a balance sheet?

I'm a sole proprietor of a construction business. How do I complete a balance sheet? A bank is asking that I do this before they offer my client a construction loan. I don't know if I am allowed to separate my personal liabilities from my business liabilities or if I should list everything since I'm not incorporated. Also not sure if I should list the amount I owe on my work truck as a current liability or a long term liability. Hoping someone can help.



So you need a Balance Sheet. This should be business only, no personal assets or liabilities included.

If your truck is in the business name, or used solely for business (or almost) than it can be an asset, and any loan would be a Long-Term Liability. Generally, Current Liabilities are things that will be paid off within a year, and Long-Term Liabilities are things that will take more than a year to pay off.

Here's how you create a quick Balance Sheet.

List any cash your business has (hopefully you have a separate checking account for the business), and Receivables (clients that owe you for work done), and any Inventory (materials that you've purchased for a job but haven't used yet), those would be your Assets.

Liabilities would be any vendors you owe for supplies or materials, any loans due, etc.

The difference, or Assets minus Liabilities, would be your Owners' Equity amount.

So you would have:

Total Assets

Owners Equity
Total Liabilities & Equity

Check out my page on Balance Sheets, see the navigation panel to the left, and click on Financial Statements, then scroll down to Balance Sheets.

Hope that helps!


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