These two terms are used intermittently on a daily basis.
The balance sheet is a statement of your financial position at a point in time. It should list everything you own and everything you owe (including the terms under which you will repay your loans). When providing a balance sheet to your lender, the more detail you can put on the balance sheet, the faster you will get an answer on a new loan. A well prepared and complete balance sheet is a good indication of your management ability. Likewise, a poorly prepared balance sheet can reflect negatively on you and your business.