When discussing the financial performance of any company, it is not possible to rely solely on sales or operating profits to form a clear picture. There is a more comprehensive tool that allows managers, investors, and decision-makers to assess the company's complete financial position at a given moment. This tool is known as the balance sheet.
The balance sheet provides an accurate snapshot of a company's assets, liabilities, and equity. Through it, one can measure financial stability, assess liquidity, and understand a company's ability to meet its short- and long-term obligations.
In this article, we provide you with a comprehensive guide to understanding the balance sheet: its components, types, importance, and how to prepare and analyze it using professional accounting tools such as the Wazen platform.
When discussing the financial performance of any company, it is not possible to rely solely on sales or operating profits to form a clear picture. There is a more comprehensive tool that allows managers, investors, and decision-makers to assess the company's complete financial position at a given moment. This tool is known as the balance sheet.
The balance sheet provides an accurate snapshot of a company's assets, liabilities, and equity. Through it, one can measure financial stability, assess liquidity, and understand a company's ability to meet its short- and long-term obligations.
In this article, we provide you with a comprehensive guide to understanding the balance sheet: its components, types, importance, and how to prepare and analyze it using professional accounting tools such as the Wazen platform.
How to prepare a financial statement using Wazen
The Wazen platform provides advanced tools for automatically preparing financial statements, including:
Automatic classification of accounts receivable and accounts payable
Instant updating of equity based on changes
Visual display of financial structure
Ability to export the statement in PDF or Excel format
All you need to do is link your bank and accounting accounts, and Wazen will prepare the entire statement based on your financial data.
Key indicators extracted from the financial position statement
Current liquidity ratio = current assets ÷ current liabilities
Debt to equity ratio = Total liabilities ÷ Equity
Quick ratio = (Current assets – Inventory) ÷ Current liabilities
These indicators are used to assess a company's ability to manage its resources and liabilities.
When is the balance sheet prepared?
At the end of each fiscal year (mandatory)
Every quarter (for joint stock companies or companies interested in reporting)
Before applying for bank financing
When applying for tenders or investment contracts
How does Wazen help you prepare and analyze your balance sheet?
Wazen is not just an accounting system but an integrated financial management system that offers:
Instant view of assets and liabilities
Financial indicators ready for analysis
Comparison between previous and current financial periods
Alerts in case of financial statement imbalances
Key features:
Full support in Arabic
Reports compliant with international accounting standards
Easy user experience
Live technical support
Conclusion
The financial position statement is not just a traditional financial document, but a powerful analytical tool that helps business owners see the full picture of their companies. By understanding its components and using smart tools such as Wazen, you can make strategic decisions based on real data and achieve financial sustainability for your business.
Try the Wazen platform today and start preparing your financial statements professionally.
