[M/S 14] Populating the Balance Sheet is not required for fully utilizing all the functionality features in the software. If the balance sheet software segment is populated; the accounts will appear in [M/S -15]; the Trial Balance. All account balances in the trial balance statement of accounts must total to zero. If the Trial Balance does not total to zero, there is a mistake, and a balance sheet account must be adjusted. If [SS -14] is not populated; the trial balance will then reflect only the revenue and expense accounts. In [M/S -14[ the cell [D59] will reflect the current period Y-T-D Ordinary Business Income (Loss) Income Statement position. Left click on the image above to open an enlarged image in a new tab.
[M/S -14] -The Balance Sheet
There are no federal tax requirements for maintaining a Balance Sheet. It is a good general business practice to create a Balance Sheet at the end of each fiscal year. Believe it or not, it’s very easy to create a balance sheet that would result in the same exact Trial Balance positions if generating monthly financial statements in QuickBooks. Unlike the income statement, which is a “period statement,” the balance sheet is a “perpetual statement.” There are only two financial statements that consume all the accounts within the accounts included in the trial balance. You may have seen references to a third statement called the cash flow statement which only represents a calculation formatted to display the utilization of cash utilizing every account included in the trial balance.