Landscaping Balance Sheet Template (+Free PDF Download)

A balance sheet is necessary for any landscaping business to track its financials and make informed decisions about resource allocation, job pricing, and growth strategies.

In this article, you’ll learn what a balance sheet includes, how to use it to track your assets, liabilities, and equity, and why it’s important for your business. Then, download your balance sheet template designed for landscaping companies.

Introducing your landscaping balance sheet template

Our landscaping balance sheet template allows landscaping business owners to track their financials. It’s customizable for businesses of all sizes, from small business LLCs and start-up entrepreneurs to established enterprise-level companies.

Download the template and go through it step-by-step, entering:

• Your business’s assets: cash, equipment, inventory.

• All liabilities: loans, credit card balances, etc.

• Your equity information is for owner investments and retained earnings.

Update the balance sheet monthly or quarterly to track net profit and growth over time. Regular updates will also show trends in profit margins and market analysis and prepare you for growth.

Updated balance sheets empower business owners to make data-driven decisions for their landscaping business. 

What is a balance sheet?

A balance sheet is a financial statement that gives a snapshot of a business’s financial position.

Data analysis will help landscaping businesses understand their financials better by showing what they own and owe. A balance sheet is divided into three main sections: assets, liabilities, and equity.

• Assets are the resources owned by the business: cash, equipment, inventory, and accounts receivable. These assets are used to run daily operations and future growth.

• Liabilities are the business’s debts: loans, credit card balances, and accounts payable. Tracking liabilities will help you understand what the company owes and manage cash flow.

• Equity is the owner’s investment in the business and retained earnings. It’s the portion of the business’s assets minus liabilities, the company's actual value.

A balance sheet compares assets, liabilities, and equity to show whether the business is stable and can meet its obligations. It’s a powerful tool for making decisions and planning for growth.

Now that you understand the components, we’ll discuss why your landscaping business must have a balance sheet.

Why does your landscaping company need a balance sheet?

Managing cash flow, tracking expenses, and planning for future investments are all important tasks for landscaping business owners. 

Many businesses struggle to cope with financial challenges like inconsistent revenue, high operating expenses, and difficulty getting financing to scale. A balance sheet will give you a clear view of your business’s financials, helping you plan for growth, manage start-up costs, and ensure long-term financial stability.

This will help you make informed decisions about:

• Investing in new equipment

• Hiring more staff or adjusting pricing

• Securing addition funding

Now, let’s examine the key metrics to track using your balance sheet template and how they impact your landscaping business.

What are the key financial metrics to track using your balance sheet?

These metrics will give you insight into your ability to meet short-term obligations and manage debt and cash flow. 

Understanding these numbers will help you make better financial decisions, from adjusting pricing to managing expenses. You can integrate with your favorite apps to track and manage these metrics. 

Here are three to focus on:

1. Current Ratio

The current ratio measures your business’s ability to repay its short-term liabilities with its assets.

Calculation: Current Ratio = Total Current Assets / Total Current Liabilities.

A ratio above 1 means you have enough assets to cover your debts. For example, a ratio of 1.5 means you have $1.50 in assets for every $1 in liabilities.

2. Debt-to-Equity Ratio

The debt-to-equity ratio shows the proportion of debt used to finance your business compared to the owner’s equity.

Calculation: Debt-to-Equity Ratio = Total Liabilities / Total Equity.

A lower ratio means less debt, which is generally good. A high ratio means you’re using too much debt, which could impact your ability to get future financing.

3. Working Capital

Working capital is the difference between current assets and liabilities, a measure of your business’s short-term financial health.

Calculation: Working Capital = Current Assets - Current Liabilities.

Positive working capital means you have enough resources to cover short-term obligations and invest in new equipment or marketing strategies. Negative working capital means cash flow problems must be addressed quickly.

These metrics will help you evaluate your financial situation and adjust your landscaping business plan for more significant business growth. 

Learn how Aspire can simplify your financials and integrate them with your balance sheet template.

Beyond templates: How Aspire simplifies financial management

Aspire is a comprehensive software platform for landscaping and lawn care businesses that want to streamline and integrate their financial processes. 

It tracks real-time data and provides tools to compare it to historical job performance, empowering better cash flow and simplified financial processes. 

You’ll have all your financials in one place, reducing errors and ensuring data accuracy. Aspire integrates with popular bookkeeping software, such as QuickBooks and Acumatica, with a one-way data push. Your financial data and bookkeeping are always accurate and up to date to make better decisions.

Aspire’s financial management features cover everything from invoicing to reporting for landscaping businesses.

Streamlined invoicing

• Aspire’s invoicing feature has flexible billing options for maintenance services, landscaping projects, or niche services like snow removal.

• Select immediate invoicing or progress billing to accommodate customer preferences and cash flow.

• Customers can access and pay invoices online with a credit card or ACH bank transfer through the customer portal, making transactions faster and easier.

• Reduces time spent on manual billing and smooths cash flow, which is critical to net profit.

Real-time data access

• Aspire gives you live data in customizable dashboards for an at-a-glance understanding of your business’s financial situation.

• No more pulling data from multiple sources; Aspire consolidates everything for you.

• Profit and loss reporting allows you to filter by property, division, or service type to drill down into financial metrics.

• Live data helps with planning and allows you to adjust profit margins and operating expenses proactively.

Powerful reporting and data analysis tools

• Aspire’s reporting capabilities make it easy to analyze your financial statements with robust data visualizers.

• Create custom reports that track cash flow, depreciation, and operating expenses, all essential to a balance sheet. Aspire has data analysis tools for creating custom reports and analyzing financials like profit and loss statements.

• Use pivot tables to drill down into sales, work tickets, and hours. This will give you insights into optimizing landscaping services and improving efficiency. These reports will track financials and help you adjust for growth and profitability.

Aspire allows landscaping business owners to move beyond the limited functionality of templates, Excel, or Google Sheets for more accurate and nuanced real-time financials.

It’s your turn now

Using a balance sheet is crucial in the landscaping industry. Download our free balance sheet template and track assets, liabilities, and equity. Aspire’s financial management tools take it to the next level with live data and integration, helping you produce a financial plan to ensure your cash flow statements are always positive.

Book a free demo with Aspire and see how their platform can simplify your financial management.