What is a real estate balance sheet? Real estate is basically a property consisting of the buildings and land on it and its accompanying assets. For the purpose of this article “real estate” will mean a piece of real estate owned by a commercial or investment property and not necessarily the actual property itself. A real estate balance sheet is an accounting statement that list a business’s assets, liabilities, ownership funds and stake in a certain real estate property, and provides a basis for calculating the net worth and comparing it to its capital structure. Usually the balance sheet is prepared by an accountant or real estate lawyer.
An accountant preparing a real estate balance sheet template normally follows the same format as that of a corporation’s income statement. This includes listing the income source, gain and loss before tax, current income, expenses, net assets, equity, and liability. The balance sheet then lists the equity and liability components separately and adds any long-term investments that the owner is currently holding. The owner usually provides a balance sheet template that has all this information already filled out.
However, there are several variations in real estate balance sheets used by companies and even for individuals, so the actual file format may be slightly different from what you see here. One thing to notice is that if the balance sheets for corporations are to be used as references, the owners must sign in the blank on their individual forms. The reason for this is that corporations cannot sign their own checks and must have their owners sign for them in order to pass any tax regulations.
Most small real estate businesses use a simple balance sheet template that can be easily prepared in Microsoft Excel. To prepare this file format, just copy and paste the following information into the cells A1 to D4 of the template: Company Name, Address, Street, City, State, Postcode, Property Size, Loan Amount, Current Market Value, Prod. Owners, Other shareholders, Number of Employees, Net Worth, Advisor Name, and Actual Expense for each property being traded. Depending on the size of the company, you should also enter in the balance of several other categories such as: current assets, accounts receivable, inventory, short-term financing, and capital expenditures. For the purpose of preparing this document in Excel, make sure to always include the current and estimated sales figures unless otherwise stated.
Now it’s time to print the template to the desired length of the document in Excel. You can do this by right-clicking the document in Excel and then clicking “Print.” Or you can copy and paste the entire contents of the real estate balance sheet template to your personal printer in the usual manner. If you want to print the document in plain text format (not an Excel document), select “print” from the main menu, and then choose the appropriate option from the pop-up menu.
Creating financial statements in Excel can be a little bit complicated, especially for beginners. But this is actually one of the simplest methods you can follow for creating a simple but reliable financial statement. Just keep in mind that you should always refer to the real estate balance sheet templates when making changes in any of the fields. The formulas and information are always clearly explained in these templates, so you won’t have a hard time understanding them. And because they are mostly based on common real estate accounting data, you won’t find any difficult calculations in these real estate financial statements.