A balance sheet is a financial statement showing what a company owns (assets), what it owes (liabilities), and the difference between the two (equity) at a single point in time.
The name comes from the fact that it always balances: assets always equal liabilities plus equity, by definition. A cash balance, accounts receivable, and equipment are typical assets; accounts payable, loans, and deferred revenue are typical liabilities.
Unlike an income statement, which covers a period of time (a month, a quarter, a year), a balance sheet is a snapshot of one specific day. Investors and acquirers read it alongside the income statement to see not just whether a company is profitable, but what it actually owns and owes underneath that number.
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