A balance sheet template is a spreadsheet that lists a company's assets, liabilities and equity on a given date and checks that assets equal liabilities plus equity. ORM's free version for Excel and Google Sheets is built for SaaS: monthly columns, deferred revenue, deferred commissions, a balance check, ratios and a tie-out to the P&L.
Get the balance sheet template
Standard .xlsx, six tabs, an opening balance plus 12 month ends, no macros. Opens in Excel, and in Google Sheets through Drive (Open with > Google Sheets) or File > Import. Yellow cells are inputs. Everything else is a formula.
Quick check: does your balance sheet balance?
Enter one month-end balance sheet in seven lines. Defaults are the December 31, 2026 column of the worked example (illustrative). You get the balance check, liquidity ratios with and without deferred revenue, and deferred revenue against ARR.
| Measure | Result |
|---|---|
| Total assets | $17,246,400 |
| Total liabilities and equity | $17,246,400 |
| Balance check (assets minus liabilities and equity) | $0, balances |
| Working capital | $7,040,400 |
| Current ratio | 1.96x |
| Quick ratio (cash and receivables) | 1.84x |
| Current ratio without deferred revenue | 8.31x |
| Deferred revenue as % of current liabilities | 76.4% |
| Current deferred revenue / ARR | 43.8% |
The balance sheet balances: assets and liabilities plus equity are both $17,246,400. The current ratio is 1.96x, and 8.31x without deferred revenue, because deferred revenue is 76.4% of current liabilities. That liability is settled by delivering service, not by paying cash. Current deferred revenue equals 43.8% of ARR, so a large part of next year's recurring revenue is already billed.
Get The Forecast Brief
You just checked whether your balance sheet balances. The Forecast Brief is a short email from Pete Furseth, ORM's COO, built on what ORM sees in its customers' forecasts.
What is in the template, tab by tab
Most balance sheet templates that rank for this search are one column of generic lines: cash, inventory, equipment, a loan, owner's equity. That works for a coffee shop. A subscription software company carries its largest liability in deferred revenue, holds commissions and software as assets, and needs the balance sheet every month, next to the month before.
| Tab | What it does | What you enter |
|---|---|---|
| Start here | Steps, the formulas in words, two SaaS rules, links to the rest of the set | Nothing |
| Balance Sheet | Opening balance plus 12 month-end columns, totals, a balance check and an OK or CHECK status on every column, the latest month and the change since the opening balance | Company, first month of the fiscal year, and 22 balances per month |
| P&L link | Rolls retained earnings and paid-in capital forward, builds the cash flow statement implied by the balance sheet changes, checks it against the change in cash, and derives free cash flow and billings | Net income, depreciation, amortization, stock-based compensation, equity raised, dividends, revenue and ARR per month |
| Ratios | Working capital, current and quick ratio, both with and without deferred revenue, deferred revenue against ARR, deferred commissions as a share of assets, debt to equity, monthly burn and runway | Nothing |
| Simple balance sheet | A one-date balance sheet for a small business, next to a prior date, with its own check, working capital, current ratio and debt to equity | Up to 16 balances per date |
| Line guide | What goes on each line, the accounting standard behind the SaaS lines, and the mistake that most often distorts it | Nothing |
The lines follow the order of a SaaS balance sheet in a public filing: current assets first, then long-term assets, current and long-term liabilities, and stockholders' equity. Deferred revenue and deferred commissions each appear twice, split into the part due within 12 months and the part beyond it.
The SaaS balance sheet, line by line
Each line answers one question about the company on one date. The table shows the lines that make a software balance sheet different and the mistake that most often distorts each one.
| Line | What goes in it | Common mistake |
|---|---|---|
| Cash and short-term investments | Bank balances, money market funds, Treasury bills | Using cash as the plug that makes the sheet balance, which hides every other error |
| Accounts receivable | Invoices sent and not yet paid, net of an allowance for bad debt | Booking the whole annual contract as a receivable before the invoice goes out |
| Unbilled receivables | Revenue earned but not yet invoiced, often on services milestones | Mixing them into receivables, which inflates DSO |
| Deferred commissions | Commissions capitalized as a cost of obtaining a contract, current and non-current | Leaving them out, so commission expense on the P&L equals cash paid |
| Capitalized software, net | Qualifying development cost, less amortization | Capitalizing in one month and expensing the same kind of work the next |
| Deferred revenue | Invoiced or collected amounts for service not yet delivered, current and non-current | Recording contracts signed but not yet invoiced, which belong in RPO, not on the balance sheet |
| Accrued payroll and commissions | Wages, bonuses and commissions earned and not yet paid | Expensing bonuses only in the month they are paid |
| Current portion of debt | Principal due in the next 12 months | Leaving all debt as long-term, which overstates the current ratio |
| Retained earnings (accumulated deficit) | All net income since founding, minus dividends | Typing a number instead of rolling last month plus this month's net income |
The difference between deferred revenue and the larger number investors ask about is covered in ORM's guide to deferred revenue vs RPO: deferred revenue is what you have billed and not earned, RPO adds what is contracted and not yet billed.
How to make a balance sheet in Excel or Google Sheets
Pick the date, take balances from the trial balance, sort each account into one line, total the sections and check that the two sides match. With the template, that is six steps a month.
- Close the month. Book revenue, accrue unbilled costs and bonuses, record depreciation and amortization, and run the trial balance. The order of a SaaS close is in the month-end close checklist.
- Enter the opening balance sheet. In column B, enter the last closed month of the prior year. Its check must read 0 before you go further.
- Enter the month-end balances. Type each account's balance into the yellow cells of that month. Assets and liabilities go in as positive numbers; an accumulated deficit goes in as a negative.
- Read the check. The green row must show 0 and the status OK. If it does not, the troubleshooting table below finds the cause.
- Enter the P&L lines. On the P&L link tab, enter net income, depreciation, amortization, stock-based compensation and revenue for the month. If you use the ORM P&L template, they come straight from its Monthly P&L tab.
- Read the ratios. The Ratios tab updates every month. Look at the trend before the level, and at the current ratio with and without deferred revenue side by side.
The balance sheet formulas, in Excel and Google Sheets
Every formula uses functions both apps share. Cell references are from the Balance Sheet tab, January column (C). Examples are from the December 31, 2026 column of the worked example, which is illustrative.
| Measure | Formula | Excel or Sheets | Example (illustrative) |
|---|---|---|---|
| Total current assets | Cash + investments + receivables + unbilled + prepaid + current deferred commissions | =C9+C10+C11+C12+C13+C14 | $14,370,400 |
| Total assets | Current + non-current assets | =C15+C22 | $14,370,400 + $2,876,000 = $17,246,400 |
| Total liabilities | Current + non-current liabilities | =C33+C38 | $7,330,000 + $1,066,000 = $8,396,000 |
| Total equity | Paid-in capital + retained earnings | =C42+C43 | $28,225,000 - $19,374,600 = $8,850,400 |
| Balance check | Total assets - (liabilities + equity) | =ROUND(C23-C45,2) | $17,246,400 - $17,246,400 = 0 |
| Working capital | Current assets - current liabilities | =C15-C33 (Ratios tab) | $14,370,400 - $7,330,000 = $7,040,400 |
| Current ratio | Current assets / current liabilities | =IFERROR(C15/C33,0) | 1.96x |
| Current ratio without deferred revenue | Current assets / (current liabilities - current deferred revenue) | =IFERROR(C15/(C33-C30),0) | $14,370,400 / $1,730,000 = 8.31x |
| Retained earnings roll | Last month + net income - dividends | Checked on the P&L link tab | -$18,400,000 - $974,600 = -$19,374,600 for the year |
Divisions are wrapped in IFERROR so the blank file shows zeros instead of errors. The Latest month column uses COUNT on the cash row to find the last month entered, so a half-finished year still reads correctly. The working capital calculator runs the same liquidity math on one balance sheet if you only need the ratios.
Balance sheet example: a SaaS company with $12.8M of ARR
This is the worked example inside the example file. The company and every number are illustrative, made up to show the mechanics. It is the same company as the P&L template's example: it sells mostly annual subscriptions billed upfront, lost $974,600 in fiscal 2026 and ended the year with $12,777,000 of ARR. Amounts are in thousands of dollars.
| Balance sheet (illustrative, $000) | Dec 31, 2025 | Dec 31, 2026 | Change |
|---|---|---|---|
| Cash and short-term investments | $10,900 | $11,116 | +$216 |
| Accounts receivable and unbilled | $1,510 | $2,370 | +$860 |
| Prepaid and current deferred commissions | $700 | $884 | +$184 |
| Total current assets | $13,110 | $14,370 | +$1,260 |
| Equipment and capitalized software, net | $930 | $1,281 | +$351 |
| Deferred commissions, non-current | $610 | $826 | +$216 |
| Lease right-of-use and other assets | $985 | $769 | -$216 |
| Total assets | $15,635 | $17,246 | +$1,611 |
| Payables, accruals and accrued pay | $970 | $1,400 | +$430 |
| Deferred revenue, current | $4,050 | $5,600 | +$1,550 |
| Lease liabilities and debt, current | $230 | $330 | +$100 |
| Total current liabilities | $5,250 | $7,330 | +$2,080 |
| Deferred revenue, non-current | $150 | $270 | +$120 |
| Long-term debt and lease liabilities | $1,100 | $796 | -$304 |
| Total liabilities | $6,500 | $8,396 | +$1,896 |
| Paid-in capital | $27,535 | $28,225 | +$690 |
| Accumulated deficit | -$18,400 | -$19,375 | -$975 |
| Total liabilities and equity | $15,635 | $17,246 | +$1,611 |
| Current ratio (without deferred revenue) | 2.50x (10.93x) | 1.96x (8.31x) |
Four things this balance sheet shows that a one-column template would hide:
- The company lost money and cash went up. Net loss for the year was $974,600, yet cash rose $216,400. The P&L link tab shows why: operating cash flow was $768,400, mostly because deferred revenue grew $1,670,000 as customers prepaid annual contracts. After $132,000 of equipment and $420,000 of capitalized software, free cash flow was $216,400, the whole change in cash.
- The current ratio fell while liquidity did not. The current ratio dropped from 2.50x to 1.96x. Of the $2,080,000 rise in current liabilities, $1,550,000 was more current deferred revenue, which the company settles by running the service. Without deferred revenue the ratio is 8.31x.
- Commissions sit on the balance sheet. Deferred commissions grew from $990,000 to $1,350,000, 7.8% of total assets. That asset is not cash and cannot pay a bill, which is why the quick ratio leaves it out.
- A reclass moved the current ratio, not cash. In December, $100,000 of the venture loan became due within 12 months and moved from long-term to current debt. Current liabilities rose, the current ratio dipped, and the cash flow statement shows nothing, because no cash moved.
Billings implied by the two balance sheets were $13,747,400 for the year against $12,137,400 of revenue. The gap is the growth in deferred revenue net of unbilled receivables, and it is the reason a SaaS company with annual billing can fund part of its growth from customers' prepayments.
Deferred revenue, the biggest SaaS liability
Deferred revenue is the amount customers have been invoiced or have paid for service the company has not delivered yet. ASC 606 calls it a contract liability. In annual-prepay SaaS it is usually the largest liability on the balance sheet, and it changes how every liquidity ratio reads.
Okta's balance sheet at January 31, 2026 shows it at scale. All figures are from Okta's Form 10-K for fiscal 2026 (XBRL data from the same filing); the ratios are ORM's arithmetic on those figures.
| Okta, January 31, 2026 | $ millions | What it tells you |
|---|---|---|
| Total current assets | $3,644 | |
| Total current liabilities | $2,554 | Current ratio 1.43x |
| Deferred revenue, current | $1,875 | 73.4% of current liabilities |
| Current liabilities without deferred revenue | $679 | Current ratio without deferred revenue 5.37x |
| Deferred revenue, non-current | $30 | Multi-year prepaid service beyond 12 months |
| Deferred commissions, current and non-current | $171 + $332 = $503 | 5.2% of total assets of $9,710 |
| Remaining performance obligations | $4,827 | 2.5 times total deferred revenue of $1,905 |
| Revenue, fiscal 2026 | $2,919 | Current deferred revenue equals 64.2% of a year's revenue |
Read only the headline current ratio and Okta looks like a company with modest liquidity. Take out the liability that is settled by delivering service and the ratio is 5.37x. That is why the template shows both, and why a lender or acquirer will ask for both. ORM's deferred revenue glossary entry covers how the balance builds and releases month by month.
Capitalized commissions and software: assets, not expenses
Two SaaS costs often reach the balance sheet before the P&L. Both affect how assets, EBITDA and cash flow compare with peers, so the template gives each its own line.
- Deferred commissions (ASC 340-40). Commissions that are incremental costs of obtaining a contract are capitalized as an asset and amortized to commission expense over the period the contract's benefit is expected to last. A company may expense them as incurred when that amortization period would be one year or less, under a practical expedient (PwC Viewpoint, 11.2 Incremental costs of obtaining a contract). In the template the asset appears only on the balance sheet; the P&L carries the amortized expense, and the P&L link tab treats the change in the balance as an operating cash flow.
- Capitalized internal-use software (ASC 350-40). Qualifying development cost becomes an asset and is amortized below EBITDA. ASU 2025-06 replaces the project-stage model with a probable-to-complete threshold and is effective for annual periods beginning after December 15, 2027, with early adoption permitted (RSM summary of ASU 2025-06). In the template, additions are the change in the net balance plus amortization, shown on the P&L link tab as an investing cash flow.
This template is a reporting tool, not tax or accounting advice. Confirm the treatment of commissions, software and leases with your accountant or auditor.
Balance sheet ratios that matter for SaaS
The Ratios tab computes each one every month. The December 31, 2026 values come from the worked example (illustrative).
| Ratio | Formula | Example, Dec 2026 | How to read it |
|---|---|---|---|
| Working capital | Current assets - current liabilities | $7,040,400 | Positive means near-term assets cover near-term obligations |
| Current ratio | Current assets / current liabilities | 1.96x | The covenant number; dragged down by deferred revenue |
| Quick ratio | (Cash + investments + receivables) / current liabilities | 1.84x | Leaves out prepaid costs and deferred commissions |
| Current ratio without deferred revenue | Current assets / (current liabilities - current deferred revenue) | 8.31x | Cash obligations only |
| Deferred revenue / current liabilities | Current deferred revenue / current liabilities | 76.4% | How much of the liability side is prepaid service |
| Current deferred revenue / ARR | Current deferred revenue / ending ARR | 43.8% | Share of a year of recurring revenue already billed |
| Deferred commissions / total assets | (Current + non-current deferred commissions) / total assets | 7.8% | Assets that are not cash |
| Debt to equity | Total debt / total equity | 0.05x | Debt only, not deferred revenue or leases |
| Cash runway | Cash and investments / average monthly burn, last 3 months | Not burning | Months of cash at the recent burn rate |
The deferred revenue to ARR ratio needs context. If every customer paid annually upfront and renewals were spread evenly through the year, about half of a year's subscription value would sit unearned at any month end, so the ratio would run near 50%. Monthly or quarterly billing pushes it down; a heavy fourth-quarter renewal season pushes December up. A ratio that falls while ARR grows usually means billing terms got shorter. Watch it next to receivables aging: when annual invoices go out and are not paid, receivables and deferred revenue rise together and cash does not.
How the balance sheet ties to the P&L and the cash flow
The three statements describe one company. The P&L covers a period, the balance sheet a date, and the cash flow statement explains the change in cash between two balance sheets. The P&L link tab runs the three tie-outs every month:
- Retained earnings. This month's balance equals last month's plus net income minus dividends. In the example, the accumulated deficit grows by exactly the $974,600 net loss.
- Paid-in capital. This month's balance equals last month's plus stock-based compensation plus equity raised. In the example, $690,000 of stock comp is the whole change.
- Cash. Net income, plus non-cash charges, plus the change in every other balance sheet line, must equal the change in cash. The tab builds that cash flow statement by the indirect method and shows the difference, which must be zero.
This file reports closed months. To project them, ORM has a matching set: the P&L template for the income statement, the cash flow forecast template for 24 months of billings and collections, the 13-week cash flow template for the next quarter week by week, and the three statement model guide and template, which forecasts all three statements together and balances them every month.
| Report | Question it answers | ORM tool |
|---|---|---|
| Balance sheet | What do we own and owe at month end, and do the two sides match? | This template |
| Profit and loss statement | What did we earn and spend, and at what margin? | P&L template |
| Cash flow forecast | Where will cash be in 24 months, given billing terms and hiring? | Cash flow forecast template |
| Three statement model | Do the forecast P&L, balance sheet and cash flow agree? | Three statement model |
Simple balance sheet template for a small business
Not every reader runs a SaaS company. The Simple balance sheet tab is a one-date version with 16 lines: cash, receivables, inventory, prepaid expenses, equipment, payables, accrued costs, customer prepayments, short-term and long-term loans, owner's capital and retained earnings. It puts one date next to a prior date, totals each section, checks that assets equal liabilities plus equity, and shows working capital, the current ratio and debt to equity.
In the example file it holds an illustrative small studio: $115,000 of assets at September 30, 2026 against $55,000 of liabilities and $60,000 of equity, a current ratio of 2.25x. Use it for a loan application, a year-end snapshot, or the first balance sheet of a business that has never had one.
Why doesn't my balance sheet balance?
Because a balance was entered on the wrong side, entered twice, left out, or retained earnings did not roll. Find the first column where the check is not zero, then compare the size of the gap with that month's balances.
| What you see | Likely cause | Fix |
|---|---|---|
| Gap in the opening column | The opening balance sheet was copied from an unclosed month | Re-run the trial balance for the last closed month |
| Gap equals one line's balance | That account was left out or mapped to no line | Map every trial balance account to one line |
| Gap equals twice one line's balance | A liability entered as an asset, or a deficit entered as positive | Check signs: the accumulated deficit is negative |
| Gap equals the month's net income | Retained earnings typed from last month without this month's result | Roll retained earnings; the P&L link tab flags it |
| Balances, but the cash tie-out does not | P&L inputs do not match the books (often depreciation or stock comp) | Compare the P&L link inputs with the closed P&L |
| Always balances, whatever you enter | Cash or equity is a plug formula | Type cash from the bank reconciliation |
What Pete Furseth checks before a balance sheet goes to the board
Pete Furseth, ORM's COO, works with B2B SaaS revenue and finance teams on forecasts and board reporting. Two of his rules shaped this template.
- The same number on every slide. "If you show one number on one slide, that number better show up on the next, or there should be a clear explanation for why it changed." Net income on the P&L, the change in retained earnings and the start of the cash flow statement are the same number. The P&L link tab proves it every month instead of leaving it for an auditor.
- Traceable to the source. Pete wants every figure in a board pack to drill down to how it was built. Every total in the template is a formula over balances you can see, and every cash flow line is a visible change between two balance sheet columns.
Pete's favorite single chart for a SaaS CFO is the monthly ARR waterfall, from beginning ARR through churn, contraction, expansion and new to ending ARR. The ending ARR from that waterfall is the one input the Ratios tab borrows to put deferred revenue in context.
ORM's take on balance sheets and bookings
In a SaaS company the two biggest moving parts of the balance sheet, receivables and deferred revenue, both start with a booking and an invoice. How much is booked, when, and on what billing terms decides most of next quarter's current section and most of its cash. A clean balance sheet tells you where those lines ended last month. It cannot tell you where they will be at quarter end.
ORM forecasts new, expansion and renewal revenue from your CRM data and updates it as the quarter moves, so finance sees the bookings that will drive receivables, deferred revenue and cash before the month closes. ORM targets 95% forecast accuracy on the forecasts it builds. See how it works for CFOs.
Common questions
How do I create a simple balance sheet?
List what the business owns on one date (cash, receivables, prepaid costs, equipment), then what it owes (payables, accrued costs, loans, customer prepayments), then the owner's equity (capital put in plus retained earnings). Total each section. Assets must equal liabilities plus equity. The Simple balance sheet tab in this template does the totals and the check for one date next to the one before.
Does Excel have a balance sheet template?
Excel's template gallery has generic balance sheets, and this page offers a free .xlsx built for subscription software companies. It has 12 monthly columns plus an opening balance, deferred revenue and deferred commissions lines, a balance check on every column, ratios, and a tab that ties retained earnings and cash to the P&L. It also opens in Google Sheets.
What is the basic formula of a balance sheet?
Assets equal liabilities plus equity. Everything a company owns was paid for either by borrowing (liabilities, including money customers prepaid) or by owners (paid-in capital plus profits kept in the business). If the two sides differ, something was entered twice, left out, or given the wrong sign.
How do I make a balance sheet in Google Sheets?
Download the .xlsx from this page, upload it to Google Drive and open it with Google Sheets, or use File, then Import, in a blank sheet. The template only uses functions both apps share, such as SUM, IF, INDEX, COUNT, EOMONTH and IFERROR, so the totals, checks and ratios keep working. Enter balances in the yellow cells.
What is the difference between a balance sheet and an income statement?
A balance sheet is a snapshot on one date: what the company owns, owes and has left for owners. An income statement, or P&L, covers a period: revenue, costs and profit for a month, quarter or year. They connect through retained earnings, which grow by each period's net income, and through cash, whose change the cash flow statement explains.
How often should a SaaS company prepare a balance sheet?
Every month, at the same close as the P&L. Monthly balance sheets show receivables building in heavy renewal months, deferred revenue moving with billing terms, and cash runway, which a year-end balance sheet only shows after the fact. Lenders with covenants and most boards expect monthly or at least quarterly balance sheets.
Know next quarter's deferred revenue before you bill it
This template reports last month. ORM shows, week by week, where this quarter's bookings and revenue are heading.
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