GoForma

In the world of finance, two essential documents provide a comprehensive snapshot of a company’s financial health: the Balance Sheet and the Profit and Loss Account. In the United Kingdom, these documents are very important for businesses of all sizes. This article will delve into the   Balance Sheet vs Profit and Loss Account , shedding light on their unique roles in financial reporting. What is a Balance Sheet? A Balance Sheet, often referred to as the Statement of Financial Position, is a crucial financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time. It is divided into two main sections: Assets:  This section includes all the resources owned by the company, such as cash, accounts receivable, inventory, and property. Assets are categorized into current and non-current assets, depending on their liquidity. Liabilities:  Liabilities encompass the company’s obligations, including loans, accounts payable, and accrued exp