This is a comprehensive workflow guiding the creation, review, approval, and distribution of a company's balance sheet, ensuring accuracy and compliance.
1
Compile financial data for the given period
2
Calculate the total assets
3
Calculate the total liabilities
4
Compute company's equity
5
Draft initial balance sheet with these results
6
Check initial balance sheet for calculation errors
7
Correction of any calculation errors
8
Financial Analyst review of initial balance sheet
9
Approval: Financial Analyst
10
Revise balance sheet based on approval feedback
11
Prepare final draft of balance sheet
12
Check the final draft for compliance with financial reporting standards
13
Approval: Compliance Officer
14
Incorporate any required changes for compliance
15
Prepare final balance sheet
16
Secure digital signatures from authorised company representatives
17
Scan and upload signed balance sheet for record keeping
18
Distribution of final balance sheet to stakeholders
Compile financial data for the given period
Gather all relevant financial data for the specified period. This task is crucial to accurately calculate the company's assets, liabilities, and equity. Ensure to collect information such as revenue, expenses, cash flow, and any account balances. Consider using accounting software or financial statements for easier data compilation.
Calculate the total assets
Determine the total value of the company's assets by adding up all its current and non-current assets. Include cash, accounts receivable, inventory, property, equipment, and investments. This calculation helps in assessing the financial health and value of the business.
Calculate the total liabilities
Calculate the sum of all the company's debts and financial obligations. Include accounts payable, loans, accrued expenses, and any outstanding liabilities. This calculation provides insight into the company's financial obligations and its ability to meet them.
Compute company's equity
Compute the company's equity by subtracting the total liabilities from the total assets. This calculation represents the value of the business to its owners or shareholders. It reflects the financial stake or ownership interest that the shareholders hold in the company.
Draft initial balance sheet with these results
Create the initial balance sheet using the calculated values of total assets, total liabilities, and company's equity. Organize the balance sheet in accordance with the standard format, including assets on the left side and liabilities and equity on the right side. This document will serve as a starting point for further review and analysis.
Check initial balance sheet for calculation errors
Thoroughly review the initial balance sheet for any potential calculation errors or discrepancies. Double-check the accuracy of the values entered, ensure proper labeling, and verify the overall balance sheet structure. It is essential to identify and correct any mistakes early on to maintain data integrity.
Correction of any calculation errors
Address and rectify any calculation errors identified during the initial balance sheet review. Carefully analyze the discrepancies, make necessary adjustments to the numbers, and update the balance sheet accordingly. This step ensures accuracy and reliability in the financial reporting process.
Financial Analyst review of initial balance sheet
Request a financial analyst to review the initial balance sheet. Their expertise will help identify any potential issues or areas for improvement. Collaborate with the analyst to ensure a comprehensive review and analysis, leading to an accurate and reliable balance sheet.
Approval: Financial Analyst
Will be submitted for approval:
Financial Analyst review of initial balance sheet
Will be submitted
Revise balance sheet based on approval feedback
Incorporate the feedback provided by the financial analyst to revise and improve the initial balance sheet. Address any concerns, make necessary adjustments, and ensure alignment with financial reporting standards and best practices. This collaborative process will help develop a more accurate and comprehensive balance sheet.
Prepare final draft of balance sheet
Create the final draft of the balance sheet incorporating all approved revisions. Review the balance sheet structure, formatting, and labeling to ensure clarity and ease of comprehension. This document will serve as the foundation for subsequent steps, including compliance and record-keeping.
Check the final draft for compliance with financial reporting standards
Thoroughly evaluate the final draft of the balance sheet to ensure compliance with relevant financial reporting standards and regulations. Verify that all required information is included, accurately calculated, and properly presented. This step ensures the reliability and credibility of the financial statements.
1
GAAP
2
IFRS
3
FASB
Approval: Compliance Officer
Will be submitted for approval:
Prepare final draft of balance sheet
Will be submitted
Incorporate any required changes for compliance
Incorporate any necessary changes or adjustments to the balance sheet based on compliance requirements. Review the regulatory guidelines and implement modifications to ensure accurate reporting. Consult with accounting or compliance professionals if needed to ensure adherence to industry-specific standards.
Prepare final balance sheet
Prepare the final balance sheet incorporating all necessary revisions and ensuring compliance with financial reporting standards. Double-check the calculations, formatting, and labeling to present an accurate and reliable financial statement. This document provides stakeholders with a clear summary of the company's financial position.
Secure digital signatures from authorised company representatives
Obtain digital signatures from authorized company representatives to validate the authenticity and approval of the final balance sheet. Use secure digital signature tools or platforms for reliable signature capture and verification. This step ensures the integrity and legal validity of the financial statements.
Scan and upload signed balance sheet for record keeping
Scan the signed final balance sheet and upload it to the designated record-keeping system or repository. Ensure proper naming conventions and organization for easy retrieval and future reference. This step contributes to the maintenance of accurate financial records and facilitates audits or reviews.
Distribution of final balance sheet to stakeholders
Distribute the final balance sheet to relevant stakeholders, such as management, investors, lenders, or regulatory bodies. Choose appropriate communication channels, ensure proper confidentiality, and consider using secure document sharing platforms. Timely distribution of the balance sheet provides transparency and facilitates informed decision-making.
