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The interim balance sheet is part of the 3 financial statements that are always found in a financial plan . Along with the provisional balance sheet, we frequently find two other tables, corresponding to the provisional income statement and the provisional budget.
But it's even better if your financial plan contains additional tables . In addition to the 3 financial statements mentioned above, bankers and investors will appreciate seeing, in their financial business plan, a financing plan , a detail of the calculation of the working capital requirement, graphs and financial ratios, the detail of the intermediary balances of management (GIS) and a break-even analysis.
You will, of course, find all of these elements in our business plan templates .
An interim balance sheet is a "photograph" of your business . Unlike the interim budget or interim income statement, an interim balance sheet does not analyze movements. This takes stock of what a company owns but also of what it owes to its customers, shareholders and other creditors.
The interim balance sheet represents what the company will own (its assets) . A company's assets are everything the company owns. It is, for example, a premises, a vehicle, computer equipment, raw material in a warehouse, etc.
It also represents what the company owes (its liabilities).In order to own all this asset, the company had to resort to money. This money can come from banks, shareholders or other sources. All of this appears in the liability column of the interim balance sheet.
UNDERSTANDING THE ASSET OF AN INTERIM BALANCE SHEET
Fixed assets . Also called non-current assets : they are all the assets that a company owns and that will serve to generate economic activity. As a general rule, they are considered to be the assets that the company will own for a period of more than 12 months.
These assets are not necessarily physical or tangible. For example, computer software or patents may be part of a company's list of fixed assets. One speaks then of intangible fixed assets. Tangible fixed assets are items such as materials, equipment, vehicles, or even furniture. Fixed assets are generally subject to depreciation allowances, as we have explained in our article on the provisional income statement.
Current assets. They are accounts receivable, inventories, investment securities as well as liquid funds that are immediately available to the company. Contrary to fixed assets, current assets will not remain for a long time (less than 12 months) in the company's assets. They include, for example, raw materials that are used for production, merchandise, and accounts receivable (that is, amounts of money that customers will owe you).
The asset, what a company owns . It can be fixed (the company owns it for more than 12 months, such as premises or a vehicle) or current (the company holds it for less than 12 months, such as an inventory or an account receivable).
UNDERSTANDING THE LIABILITY OF THE INTERIM BALANCE SHEET
net worth . They are all the sums of money that will be contributed by the partners of the company and that will then form part of the capital of the company. We can also include contributions in kind (such as material goods). Generally, these contributions of money have served to finance elements that we will find in the asset column of the balance sheet of the provisional situation. It should be noted that, in the net worth, there is a line that corresponds to the accumulated result (the last line of the provisional income statement) of the company, even if the latter is a profit or a loss.
The debts.If being in debt as an individual can sometimes be seen as a negative, it is far from it in the case of companies. There are different types of debts that concern a company.
In the first place, there are financial debts : they are, for example, the loans that you have received from banking establishments.
Likewise, there are debts with suppliers , which represent the money that you owe to your suppliers and that you will not have paid by the time the "photo" of the balance sheet is taken (generally at the end of the accounting year).
Finally, there are the fiscal and social debtswhich are, among others, VAT and social contributions that you owe to the State (these payments are always made out of date and that is why, technically speaking, you have debts).
SUCCEED WITH YOUR INTERIM BALANCE SHEET THANKS TO OUR BUSINESS PLAN TEMPLATES!
Our business plan templates contain an interim balance sheet, in addition to other tables mentioned above . Along with the financial plan, you will also find: a provisional income statement, a provisional budget, a financing plan, details of intermediary management balances, an analysis of the break-even point for each year, graphs and financial ratios, as well as a working capital requirement calculation detail. A more than complete toolbox to analyze the finances of your future company!
No calculations or financial knowledge is necessary: you only have to enter figures (your hypotheses) in the cells provided for this. We hope that you have understood how the balance of the provisional situation is articulated. However, we are not going to force you to build it from scratch. With our Excel business plan templates , you have a provisional balance sheet already prepared. To fill it out, you only have to indicate certain hypotheses (in the tab provided for this) and the formulas will be calculated automatically.
A tab to verify that your financial plan is done correctly. All our Excel financial plan templates contain a tab that allows you to quickly and easily check if your assumptions are relevant. Reading a balance of the provisional situation and the other tables mentioned is difficult. So, we've created a tab that tells you, in simple, understandable language, whether your financial plan makes sense. For example, this tab will tell you if your revenue forecasts are realistic given the type of business you run (we remind you that the models are specific to each industry), if, for example, you have set a reasonable budget for marketing and advertising or if your treasury balance remains positive during the three years of the financial plan.
Each model is adapted for a specific sector.Gym, e-commerce, cafeteria: all our models are adapted to a specific type of project. For example, in the sample financial plan for a cafeteria, you will find all the lists of possible expenses that this type of establishment can have. In the same way, the verification tab tells you what the main financial ratios should be (for example, the cost of labor based on income) for this type of trade.
Our team is here to serve you. We understand that making a provisional balance will always be a delicate task, even if you have received many explanations. For this reason, our team supports you 24 hours a day (or almost) in case of questions. We can even reread and correct your financial plan for free once you've completed it.
Download a free sample financial plan (which contains an interim balance sheet). It's the best way to see what the financial plan template looks like. Do you just want an interim balance sheet? Here is our provisional balance sheet for 3 years (free of charge).
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