8 октября, 2021 Автор: Соня Крапива

30 Free Financial Statement Templates Excel

Statement of Financial Position

Madhuri Thakur

Statement of Financial Position also known as the Balance sheet gives the understanding to its users about the financial status of the business at the particular point of time by showing the details of the assets of the company along with its liabilities and owner’s capital.

It is one of the most important financial statements which reports the firm’s financial position at a point in time. In other words, it summaries’ business financial position and acts as a snapshot of events at one point in time. It comprises of three important elements (explained in detail later) namely:

  • Assets are the resources owned and controlled by the business. Assets are further classified into Current Assets and Non-Current Assets.
  • Liabilities are the amount of business owed to its Lenders and Other Creditors. Liabilities are further classified into Current Liabilities Classified Into Current LiabilitiesCurrent Liabilities are the payables which are likely to settled within twelve months of reporting. They’re usually salaries payable, expense payable, short term loans etc.read more and Long Term Liabilities Long Term LiabilitiesLong Term Liabilities, also known as Non-Current Liabilities, refer to a Company’s financial obligations that are due for over a year (from its operating cycle or the Balance Sheet Date).read more .
  • Shareholder’s Equity which is the residual interest in the Net Assets of a business that remains after deducting its liabilities

Financial Position Statement Example

Let’s take a look at an example of Starbucks as on September 30, 2018

Statement of Financial Position Example 1

Effectively the above example consists of two lists:

  • A list of everything owned by the Business collectively called Assets
  • A list of the various sources of finance used to fund these acquisitions which can be either in the form of Liabilities or Shareholders’ Equity.

Thus, it is a statement showing the nature and amount of a business’s assets on one side and liabilities and Share Capital on the other side. In other words, the Balance Sheet shows the financial position on a particular date, which is usually at the end of a year period.

The Statement of Financial Position shows how the money has been made available to the business of the company and how the money is employed in the business.

The format of the Financial Position Statement

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For eg:
Source: Statement of Financial Position (wallstreetmojo.com)

Let’s understand the format of the Statement of Financial Position in more detail

#1 – Current Asset

Current Assets are those cash and items which will be converted into cash in the normal course of business within one year and includes Inventory, Trade Receivables, Bill receivable, etc. The Total Current Assets are referred to as the Gross Working Capital and also known as the qualitative or circulating capital.

#2 – Current Liabilities

Current includes all liabilities which are due within one year and includes Trade Payables, Creditors, short term borrowings such as Bills Payable, Deferred Tax Liabilities, Current Portion of Long term Borrowings, which are payable within the year, etc.

#2 – Long Term Asset

Non-Current Assets, also known as Fixed Assets are those assets which are bought to use them in the business and usually have long lives. They may include tangible assets such as Land, Property, Machines, and Vehicles, etc. Tangible Non-Current Assets are generally valued at Cost less Accumulated Depreciation. However, it is pertinent to note that not all Tangible Assets depreciate, such as Land, etc.

  • Intangible Non-Current Assets are noncurrent assets that cannot be touched. The most common type of Intangible Assets is Goodwill, Patents, and Trademarks. Goodwill is subject to an Annual Impairment Test Goodwill Is Subject To An Annual Impairment TestGoodwill impairment is the process of writing off the accounting charge amounting to the excess of the acquired asset’s book value as recorded in the financial statements over its fair value. A higher impairment charge reflects the company’s irrational investment decisions.read more .
  • Non-Current Assets include investment in other companies in the form of Shares, Debentures, and loans, etc. and the business intends to hold the same for a reasonable period, say more than a year.
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#4 – Long Term Liabilities

#5 – Shareholders Equity

Shareholders Equity is the amount contributed by the shareholders/owners of the business in the form of shares. Alternatively, Shareholders Equity is the Net value of the business, which is derived by subtracting Assets from Liabilities.

Briefly Equity comprises of:

  • Common Stock which includes the number of profits retained by the business;


We saw how a Statement of Financial Position depicts the position of the business on a particular date. However, despite so many benefits that it offers to various stakeholders of the business, it suffers from certain limitations which are as enumerated below:

  • This statement is prepared based on going concern assumption and, as such, represents neither the realizable Value nor replacement value of Assets.
  • Valuation of Assets is substantially impacted by the judgment of Management and various accounting policies Accounting PoliciesAccounting policies refer to the framework or procedure followed by the management for bookkeeping and preparation of the financial statements. It involves accounting methods and practices determined at the corporate level.read more adopted by them.
  • It takes into consideration only financial factors and fails to quantity non-financial factors that have considerable bearing on the operating results and financial condition of an Enterprise.
  • It shows the historical costs and does not disclose the current worth of the business.

Recommended Articles

This article has been a guide to What is Statement of Financial Position. Here we discuss the format of Financial Position Statement along with practical examples and limitations. You may also have a look at the related articles:


30 Free Financial Statement Templates (Excel)

A financial statement template refers to an official record of an entity’s financial activities, either an organization or an individual. These written reports quantify your company’s performance, financial strength, and liquidity. It also reflects the financial impacts of events and business transactions of your company.

Financial Statement Templates

What is a financial statement?

You can also describe a financial statement template as a snapshot of your financial position at a certain point in time. It defines your assets, your net worth, and your liabilities. Ideally, your net worth should be the difference between your assets and liabilities.

If you come up with a positive net worth, this means that you have more assets liabilities. But if you get a negative result, you have more liabilities than assets.

Financial Report Templates

What are the types of financial statements?

Generally speaking, a financial statement template comes in different types. Before making a financial report template of your own, determine what type you need first:

  • Income Statement
    This is the most well-known type of statement that contains your financial information for a specified period of time – expenses, revenues, and loss or profit. This is also known as the Statement of Financial Performance as it allows you to evaluate and measure your financial performance from one period to another.
    Also called the Statement of Financial Position, this statement shows you the balance of your liabilities, assets, and equity by the end of a certain time period. It also shows you the values of your net worth. You can determine your net worth by subtracting your liabilities from your total assets.
  • Statement of Change in Equity
    This shows your company’s shareholder contributions, equity movements, and equity balances by the end of a certain accounting period. The information contained in this statement includes the classification of share capitals, total share capitals, retain earnings, dividend payments, and other state reserves.
  • Statement of Cash Flow
    This statement shows the movement of your cash during a certain period of time. You can use it to help you understand your cash movement. This statement has three sections – cash flow from your operation, cash flow from your investments, cash flow from your financing activities.
  • Note to Financial Statements
    Although this important statement is often overlooked, it is a requirement by the IFRS. Through this statement, you disclose all of the information that matters so that you can have a deeper understanding of such. Use it to detail your financial information associated with certain accounts.
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How do I write a financial statement?

You would also use the financial statement template to report your financial activities and health to your potential creditors and investors. In this regard, it becomes essential that your personal financial statement or business financial statement should include the following elements:


Statement of Financial Position

The statement of financial position, often called the balance sheet, is a financial statement that reports the assets, liabilities, and equity of a company on a given date. In other words, it lists the resources, obligations, and ownership details of a company on a specific day. You can think of this like a snapshot of what the company looked like at a certain time in history.

This definition is true in the sense that this statement is a historical report. It only shows the items that were present on the day of the report. This is in contrast with other financial reports like the income statement that presents company activities over a period of time. The statement of financial position only records the company account information on the last day of an accounting period.

In this sense, investors and creditors can go back in time to see what the financial position of a company was on a given date by looking at the balance sheet.


Let’s take a look at a statement of financial position example.

Statement of Financial Position

As you can see from our example template, each balance sheet account is listed in the accounting equation order. This organization gives investors and creditors a clean and easy view of the company’s resources, debts, and economic position that can be used for financial analysis purposes.

Investors use this information to compare the company’s current performance with past performance to gauge the growth and health of the business. They also compare this information with other companies’ reports to decide where the opportune place is to invest their money.

Creditors, on the other hand, are not typically concerned with comparing companies in the sense of investment decision-making. They are more concerned with the health of a business and the company’s ability to pay its loan payments. Analyzing the leverage ratios, debt levels, and overall risk of the company gives creditors a good understanding of the risk involving in loaning a company money.

Obviously, internal management also uses the financial position statement to track and improve operations over time.

Now that we know what the purpose of this financial statement is, let’s analyze how this report is formatted in a little more detail.


The statement of financial position is formatted like the accounting equation (assets = liabilities + owner’s equity). Thus, the assets are always listed first.

Assets Section

Assets are resources that the company can use to create goods or provide services and generate revenues. There are many ways to format the assets section, but the most common size balance sheet divides the assets into two sub-categories: current and non-current. The current assets include cash, accounts receivable, and inventory. These resources are typically consumed in the current period or within the next 12 months.

The non-current assets section includes resources with useful lives of more than 12 months. In other words, these assets last longer than one year and can be used to benefit the company beyond the current period. The most common non-current assets include property, plant, and equipment.

Liabilities Section

Liabilities are debt obligations that the company owes other companies, individuals, or institutions. These range from commercial loans, personal loans, or mortgages. This section is typically split into two main sub-categories to show the difference between obligations that are due in the next 12 months, current liabilities, and obligations that mature in future years, long-term liabilities.

Current debt usually includes accounts payable and accrued expenses. Both of these types of debts typically become due in less than 12 months. The long-term section includes all other debts that mature more than a year into the future like mortgages and long-term notes.

Equity Section

Equity consists of the ownership of the company. In other words, this measures their stake in the company and how much the shareholders or partners actually own. This section is displayed slightly different depending on the type of entity. For example a corporation would list the common stock, preferred stock, additional paid-in capital, treasury stock, and retained earnings. Meanwhile, a partnership would simply list the members’ capital account balances including the current earnings, contributions, and distributions.

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In the world of nonprofit accounting, this section of the statement of financial position is called the net assets section because it shows the assets that the organization actually owns after all the debts have been paid off. It’s easier to understand this concept by going back to an accounting equation example. If we rearrange the accounting equation to state equity = assets – liabilities, we can see that the equity of a non-profit is equal to the assets less any outstanding liabilities.

Does the Balance Sheet always balance?

Notice that the balance sheet is always in balance. Just like the accounting equation, the assets must always equal the sum of the liabilities and owner’s equity. This makes sense when you think about it because the company has only three ways of acquiring new assets.

It can use an asset to purchase and a new one (spend cash for something else). It can also take out a loan for a new purchase (take out a mortgage to purchase a building). Lastly, it can take money from the owners for a purchase (sell stock to raise cash for an expansion). All three of these business events follow the accounting equation and the double entry accounting system where both sides of the equation are always in balance.


Financial Statements

The Vertex42™ collection of financial spreadsheets includes templates designed specifically for small business owners. We hope that you will find them as useful as we have! The spreadsheets featured below also work with OpenOffice and Google Spreadsheets, so if you are operating your business on a very tight budget, hopefully you’ll be able to make these financial templates work for you.

Financial Statement Templates

Business Plan WorkbookBusiness Plan Workbook ▶

Create a business plan using Word with a companion Excel workbook for customizing financial statements.

Balance Sheet TemplateBalance Sheet Template ▶

Summarize what your company owns and owes. Compare to previous year(s).

Income Statement TemplateIncome Statement Template ▶

Provides a measure of economic performance for your company. Also called a Profit and Loss Statement

Cash Flow Statement TemplateCash Flow Statement Template ▶

Where does your company get and spend its cash?

Business Budget TemplateBusiness Budget Template ▶

Contains two worksheets for creating a yearly business budget — for service providers or companies producing and selling goods. Based on the Income Statement template, with similar categories and layout.

12-Month Business Budget12-Month Business Budget ▶

Create a 12-month breakdown of your sales and business expenses.

Business Budget and COGS AnalysisBusiness Budget and COGS Analysis ▶

Perform a detailed analysis of expenses and cost of goods sold (COGS) for multiple products.

Break Even Analysis CalculatorBreak Even Analysis Calculator ▶

Calculate the Break-Even Point or Payback Period for a new venture or product.

Profit and Loss Projection TemplateProfit and Loss Projection Template ▶

Based on the Business Budget template — helps you create a 3-year profit and loss projection.

Sales Forecast TemplateSales Forecast Template ▶

Create a sales forecast spreadsheet to use in your business plan, including estimated sales, COGS, and gross profit on a monthly basis over 3 years. Includes sample charts.

Business Startup Costs TemplateBusiness Startup Costs Template ▶

Estimate the startup costs for your new business. Essential for any business plan.

Depreciation Schedule TemplateDepreciation Schedule Template ▶

Calculate yearly depreciation for multiple assets using the straight-line or declining balance methods.

Billing Statement TemplateBilling Statement Template ▶

A billing statement can be used as an invoice as well as an accounts receivable ledger. This works well as a customer account statement. It can also be used to bill a customer.

Personal Financial StatementPersonal Financial Statement ▶

Create and maintain your own personal financial statements, including a balance sheet for calculating net worth and a cash flow statement for budgeting.

Net Worth Calculator for ExcelNet Worth Calculator for Excel ▶

Calculate your net worth based on the total of all your assets minus your liabilities.

Petty Cash Log TemplatePetty Cash Log Template ▶

Customize and print a petty cash form for your business. Includes a reconciliation section.

SWOT Analysis TemplateSWOT Analysis Template ▶

Use a SWOT Analysis to routinely evaluates the health or your business or personal finances and find ways to grow and improve.