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Balance Sheets are important aspects of business. They record all the business transactions and take into account all the finances handled within a business. They keep a record of all the assets owned by a business. There are two basic ways in which the Balance Sheets can be analyzed. These include the Simplicity Analysis and the Complicated Analysis. However, what is the difference between the simplicity and the Complicated Analysis of the Balance Sheets? Keep reading to find out more about the comparison between the two. Below is a more detailed discussion of the comparison between simplicity vs. Complicated Analysis of Balance Sheets.

Simplicity Analysis

Simplicity Analysis of a balance sheet refers to the common analysis where only numerical values are used. In Simplicity Analysis, anybody can do it by themselves. This is because it does not involve complex calculations as in the case of Complicated Analysis. Simplicity Analysis is the one that is most preferred by many since it has been broken down to bits which can be easily understood by everyone. It is also good because it does not really require a machine to operate and do the calculations. On top of that, most cases make use of simple calculations which can be done by an ordinary person.

Complicated Analysis

Complicated Analysis of a balance sheet is just as the name sounds. It involves complex calculations such as percentages and other complexities. It cannot be done by a regular person, and it requires skilled personnel to carry out. This is because Complicated Analysis of Balance Sheets deals with large numbers. In some instances, they require the use of a computer to perform the calculations. The Complicated Analysis involves more than just the typical addition and subtraction. It deals with more complex calculations, and you would require a trained professional to do the Complicated Analysis on your behalf.

Simplicity vs. Complicated Analysis

Simplicity Analysis has several advantages over Complicated Analysis. This is why most people prefer the Simplicity Analysis as compared to the complexity analysis. Simplicity Analysis involves simple calculations which can be carried out by anyone. On the other hand, complexity analysis involves complicated calculations that are not easy to understand or comprehend. Most people prefer the Simplicity Analysis because the results obtained can be easily comprehended as opposed to the results obtained from Complicated Analysis of the Balance Sheets. However, depending on what you want to achieve both methods of analysis can be useful to you.

In conclusion, Simplicity Analysis and Complicated Analysis of Balance Sheets are equally effective. It’s only that most people prefer Simplicity Analysis since it saves time. However, complexity analysis is an exhaustive exercise and it covers all the aspects of the balance sheet. Even though one is more common than the other, they are equally important in their own unique way. Simplicity Analysis of a balance sheet is preferred by most people who like to do it on their own and who are not in a position to hire a professional to do the analysis on their behalf.

Here is our collection of 41 Free Balance Sheet Templates & Examples,

balance-sheet-template-01

Download Balance Sheet Template 01 created using MS Excel,

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balance-sheet-template-02

Download Balance Sheet Template 02 created using MS Excel,

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balance-sheet-template-03

Download Balance Sheet Template 03 created using MS Excel,

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balance-sheet-template-04

Download Balance Sheet Template 04 created using MS Excel,

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balance-sheet-template-05

Download Balance Sheet Template 05 created using MS Excel,

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balance-sheet-template-06

Download Balance Sheet Template 06 created using MS Excel,

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balance-sheet-template-07

Download Balance Sheet Template 07 created using MS Excel,

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balance-sheet-template-08

Download Balance Sheet Template 08 created using MS Excel,

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balance-sheet-template-09

Download Balance Sheet Template 09 created using MS Excel,

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 balance-sheet-template-10

Download Balance Sheet Template 10 created using MS Excel,

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balance-sheet-template-11

Download Balance Sheet Template 11 created using MS Excel,

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balance-sheet-template-12

Download Balance Sheet Template 12 created using MS Excel,

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balance-sheet-template-13

Download Balance Sheet Template 13 created using MS Excel,

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balance-sheet-template-14

Download Balance Sheet Template 14 created using MS Excel,

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balance-sheet-template-15

Download Balance Sheet Template 15 created using MS Excel,

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balance-sheet-template-16

Download Balance Sheet Template 16 created using MS Excel,

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balance-sheet-template-17

Download Balance Sheet Template 17 created using MS Excel,

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 balance-sheet-template-18

Download Balance Sheet Template 18 created using MS Excel,

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balance-sheet-template-19

Download Balance Sheet Template 19 created using MS Excel,

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balance-sheet-template-21

Download Balance Sheet Template 21 created using MS Excel,

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balance-sheet-template-22

Download Balance Sheet Template 22 created using MS Excel,

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balance-sheet-template-23

Download Balance Sheet Template 23 created using MS Excel,

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balance-sheet-template-24

Download Balance Sheet Template 24 created using MS Excel,

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balance-sheet-template-25

Download Balance Sheet Template 25 created using MS Excel,

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balance-sheet-template-26

Download Balance Sheet Template 26 created using MS Excel,

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balance-sheet-template-27

Download Balance Sheet Template 27 created using MS Excel,

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balance-sheet-template-28

Download Balance Sheet Template 28 created using MS Excel,

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balance-sheet-template-29

Download Balance Sheet Template 29 created using MS Excel,

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balance-sheet-template-30

Download Balance Sheet Template 30 created using MS Excel,

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balance-sheet-template-31

Download Balance Sheet Template 31 created using MS Excel,

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balance-sheet-template-32

Download Balance Sheet Template 32 created using MS Excel,

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balance-sheet-template-33

Download Balance Sheet Template 33 created using MS Excel,

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balance-sheet-template-34

Download Balance Sheet Template 34 created using MS Excel,

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balance-sheet-template-35

Download Balance Sheet Template 35 created using MS Excel,

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balance-sheet-template-36

Download Balance Sheet Template 36 created using MS Excel,

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balance-sheet-template-37

Download Balance Sheet Template 37 created using MS Excel,

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balance-sheet-template-38

Download Balance Sheet Template 38 created using MS Excel,

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