How to Create a Classified Balance Sheet

A classified balance sheet groups accounts into sub-categories to provide more useful information to readers.

Current vs. Long-Term

The main classification is between current and long-term items. Current assets are expected to be converted to cash within a year, while long-term assets are held for longer periods.

Steps to Create

1. List all current assets and calculate the total.
2. List all fixed (long-term) assets and calculate the total.
3. Add current and fixed assets to get Total Assets.
4. List current and long-term liabilities and calculate the total.
5. List equity accounts and calculate the total.
6. Ensure Total Assets equals Total Liabilities plus Equity.

You can easily create one using our free Balance Sheet Generator.