A balance sheet should always balance. The name "balance sheet" is based on the fact that assets will equal liabilities and shareholders' equity every time. The assets on the balance sheet consist of what a company owns or will receive in the future and which are measurable. The major reason that a balance sheet balances is the accounting principle of double entry. This accounting system records all transactions in at least two different accounts, and therefore also acts as a check to make sure the entries are consistent. If the balance sheet you're working on does not balance, it's an indication that there's a problem with one or more of the accounting entries.