Balance sheet account

A balance sheet account is a General ledger account that constitutes part of your balance sheet. A balance sheet account will have a General ledger category of Asset, Liability or Equity.

The value of a balance sheet account represents something that your business owns or an amount that is owed to another person or business. At any one time, the difference between your assets and your liabilities (which includes equity owed to shareholders) represents the net assets of your business.

The value of a balance sheet account at the end of one financial year is carried over to be the opening balance of the same account at the start of the next financial year.