A balance sheet sets out assets, liabilities and equity at a specific date. Its accounting equation is assets equals liabilities plus equity. Unlike a profit and loss statement, which covers a period, it is a snapshot of the business’s financial position. Source: Xero: Balance sheets

Read the detail behind each balance

Ask the finance lead to explain large receivables, supplier balances and amounts connected with future travel. Note the supporting records and any restrictions on funds. This helps the team understand what a headline balance represents before using it in a decision.

Use matching reporting dates

When comparing two balance sheets, confirm that the accounts have been prepared on the same basis and that outstanding transactions have been reviewed. Keep a cash forecast beside the comparison to show when payments are expected, rather than relying on the snapshot alone.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.