There are many factors that go into operating a successful business. Marketing, service, inventory control, human resources and general management are but a few.
First of all, we will presume that your business has an accounting and/or bookkeeping system. From these internal systems the business should be producing financial statements on at least a monthly basis.
Expenses would include items such as: rent; loan payments; utilities; purchase of inventory; office and operating supplies; payroll; advertising; vehicle/fuel/mileage; and insurance.
The basis of a balance sheet is simple. In order to acquire assets, a business must pay for them either with further debt (liabilities) or with the owner's money (owner's equity).
Liabilities are debts owed to outside parties. Examples include bank loans, debts to suppliers, accounts payable, interest on long-term debt, taxes and dividends payable.
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