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Small business balance sheets are typically structured on the traditional asset/liability basis, using physical transactions as the core data. The balance sheet is created using a straightforward series of fundamental business records as its source:
- Invoices
- Receipts
- Sales
- Payments
- Cash book
- Loan information
- Drawings
- Assets
- Liabilities
It will be noted that each of these records provides a current value for these transactions. The balance sheet therefore has access to working figures whatever the stage of the transaction. An invoice will reflect money payable to the business but not yet received, at the time of issue, for example, and provide a cross check function for each amount. (Receipts should reconcile with invoices, etc.)
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Business Letters 
