Download California Balance Sheet Form

When filling out the California Balance Sheet form, there are important guidelines to follow. Below is a list of things you should and shouldn't do.

• Do include the current date at the top of the form.
• Do accurately report all assets and liabilities, including those unrelated to the facility.
• Do attach the LIC 403a, which provides detailed information supporting your Balance Sheet.
• Do ensure that the totals from the LIC 403a are transferred correctly to the LIC 403.
• Don't omit any required information, such as entity name and application/license number.
• Don't forget to sign and date the form, as failure to do so may result in non-compliance.

Here are 10 common misconceptions about the California Balance Sheet form:

1. Only financial assets need to be reported. Many believe that only financial assets related to the care facility should be included. In reality, all assets and liabilities of the entity must be disclosed, regardless of their relation to the facility.
2. Personal debts do not need to be included. Some think personal debts are irrelevant. However, for sole proprietorships, personal credit card balances and other debts must be reported if they relate to the owners.
3. The form is optional for partnerships. It’s a misconception that partnerships can skip the form. Each general partner must file a personal Balance Sheet along with the partnership’s financial statements.
4. Only current assets are counted. Many assume that only current assets matter. Both current and long-term assets must be reported to give a complete picture of the entity's financial status.
5. Submitting the form is a one-time task. Some believe they only need to submit the form once. In fact, it must be updated and submitted regularly as financial conditions change.
6. The Balance Sheet is the same as a profit and loss statement. This is incorrect. The Balance Sheet provides a snapshot of assets and liabilities, while a profit and loss statement shows income and expenses over a specific period.
7. All liabilities are equal. There is a misconception that all liabilities are treated the same. They are categorized as current or long-term, which affects how they are reported.
8. Only licensed facilities need to file. Some think that only licensed facilities must submit the form. In fact, any applicant, including those in the process of obtaining a license, must complete it.
9. The form can be filled out without prior documentation. It’s often assumed that the form can be completed without supporting documents. However, additional documentation may be required to verify the amounts reported.
10. Signing the form is a mere formality. Some view the signature as a simple formality. In truth, signing the form attests to the accuracy of the information and is a legal declaration.

When completing the California Balance Sheet form, several other documents may be required to provide a comprehensive financial overview. These forms help clarify the financial situation of the entity and ensure compliance with regulations.

• LIC 403a - Balance Sheet Supplemental Schedule: This is a worksheet that gathers detailed financial information. It helps in compiling data that will be transferred to the Balance Sheet (LIC 403). It must be attached to the Balance Sheet when submitted.
• Personal Balance Sheet (for General Partners): Each general partner in a partnership must submit their own Balance Sheet. This document reflects the individual financial position of each partner and must accompany the LIC 403 and LIC 403a.
• Financial Statements: These include income statements and cash flow statements. They provide a broader picture of the financial health of the entity, covering revenue, expenses, and cash management.
• Tax Returns: Recent tax returns may be requested to verify income and financial standing. They provide a clear record of the entity’s earnings and tax obligations.
• Supporting Documentation: Additional documents such as bank statements, loan agreements, and asset valuations may be required. These documents support the figures reported on the Balance Sheet and provide further verification.

Gathering these documents ensures that you have a complete and accurate financial picture. This helps in meeting regulatory requirements and supports the credibility of your financial reporting.