Financial Statements                        

Accounting or Reports menu.

The Financial Statements are user-definable reports. You define the how the GL accounts should be summarized, the text for each line, and the columns to print.

You can create reports such as an Income Statement (sometimes referred to as a Profit and Loss) showing sales, expenses and profit. Or a Balance Sheet showing assets, liabilities, and equity (see notes on retained earnings).

Financial statements can be run for selected subaccounts without having to set up separate statement formats. For example an income statement for product group "Frozen Pies", and/or division "West", etc. Or select no subs to get a summary consolidated report.

If “Validate” is selected, a warning shows any missing accounts, duplicate accounts, or account type discrepancies such as assets or liabilities included on an income statement.

To set up a new statement automatically click on the “AutoCreate” button at the bottom left. Select statement type: either Income Statement or Balance Sheet. This will create a statement with appropriate headings, detail and totals for the selected type. For an income statement, there will be a detail line for every revenue and expense account. For a balance sheet, there will be a detail line for every asset, liability, and equity account. Click OK to finish or you can make changes if desired. For example you could change the title, select a different format from the default, change the text on the heading, detail or total lines, modify detail lines to combine multiple accounts on one line, delete or add lines, etc.

Tip: For income statements only “Net Change” type formats are appropriate, and for balance sheet statements only “Balance” type formats are appropriate.

To set up a new statement manually you should first enter the title, select a format from the list (to select which columns to show), and enter the line heading and type for each line. Line types can be Heading, Detail, Detail Revenue, Total or Total Revenue. Tip: If you type the 1st letter of line type, the rest will be filled in. For example: press “d” for Detail, press “d” again for Detail Revenue.

Detail Revenue and Total Revenue line types show revenues as debits on Income Statements. Use these line types for revenue lines (Gross Sales, Net Sales, Net Income, etc.) if you prefer these to be shown as debits (“layman” style) or use Detail and Total lines to show revenues as credits (“traditional accounting” style).

After entering the total lines you can update the detail lines to specify which total lines are to receive the detail line data.

You can change the sequence of the lines by using the arrow buttons. To insert a line, first add a new line (Ctrl+Insert or right-click), then move the line to the desired position with the “up” button (or Ctrl+U or right-click).

Example 1.

Title: Income Statement

Format: Net Change Simple (or Net Change Compare Month, or Compare Year, or Budget)

Lines:

Sales (type = Heading)

Gross Sales (type = Detail Revenue)

Less: Cost of Goods Sold (type = Detail)

Net Sales (type = Total Revenue)

Blank (type = Heading)

Operating Expenses (type = Heading)

etc.

Example 2.

Title: Balance Sheet

Format: Balance Simple (or Balance Compare Year, or Budget)

Lines:

ASSETS (type = Heading)

Current Assets (type = Heading)

Banks (type = Detail)

Accounts Receivable (type = Detail)

Inventory (type = Detail)

Total Current Assets (type = Total)

Blank (type = Heading)

Fixed Assets (type = Detail)

Less: Accum Depreciation (type = Detail)

Total Fixed Assets (type = Total)

Blank (type = Heading)

Blank (type = Heading)

LIABILITIES & EQUITY (type = Heading)

etc.

Detail Line Properties for the detail lines (such as accounts to include).

The Detail Line Properties section has 2 tabs: Accounts and Totals. (Note: Since this section only applies to lines of type “detail” it is blank if a heading or total line is selected).

Accounts Tab: Accounts to include in this line are specified via ranges from/to. For example: if you had 4 sales accounts 4001, 4002, 4003, 4004 to be included in the line “Gross Sales” you could specify 4001 to 4004. Or 4001 to 4010 so that future accounts could be included without you having to update the range. To insert or delete a range, use the pop-up menu (right-click on the Accounts grid).

Tip: To specify a single account you only need to specify the From Account. The To Account is optional.

Tip: On a Balance Sheet statement, for Retained Earnings Current Year include all the revenue and expense accounts. Ideally the account numbers would be in a range so you could include them all by just specifying one range (from/to).

Totals Tab: Here you specify which (previously entered) total lines are to receive data from this detail line. For example: on an income statement “Gross Sales” might be added to total lines “Net Sales” and “Net Income”. To insert or delete a total line (from this list), use the pop-up menu (right-click on the Totals grid).