Financial Reports

Assets = Liabilities + Equity

Go to Accounting > Reporting > Balance Sheet. This report is always "as of" a single date, not a period — it shows what the business owns, owes, and is worth at that instant.

Assets

• Current Assets – Bank and Cash Accounts, Receivables, other Current Assets, Prepayments.
• Fixed Assets – Equipment, property, and similar (see the Fixed Assets course for the depreciation side).
• Non-current Assets – Long-term assets not classified as fixed.

Liabilities

• Current Liabilities – Payables and other short-term obligations.
• Non-current Liabilities – Long-term loans and obligations.

Equity: Retained Earnings & Net Income

The Equity section has exactly two top-level lines:

• Retained Earnings – every prior fiscal year's earnings rolled up, plus your real equity accounts (Share Capital, Reserves, Owner's Drawings, etc.). Click to expand and see each contributing account.
• Net Income (Current Year) – this fiscal year's profit or loss to date, computed live from the Profit and Loss report — not a number you ever have to manually close or post a journal entry for. It automatically becomes part of Retained Earnings once the new fiscal year starts.

Because Net Income is computed dynamically rather than posted via a year-end closing entry, the split between "this year" and "prior years" depends entirely on your Fiscal Year setting (previous article) being correct — this is the single most common cause of a Balance Sheet that doesn't balance or a "Net Income" figure that looks too large or too small.

Verifying It Balances

The report itself shows ASSETS and LIABILITIES + EQUITY as two separate totals — they must always be equal. If they aren't, check the fiscal year setting first, then look for a manual journal entry that posted directly against an equity account in an unusual way.

Off Balance Sheet Accounts

A final section lists accounts that don't belong in the main equation (e.g. guarantees, commitments) — shown separately and only when non-zero, so they're visible without distorting the core Assets/Liabilities/Equity totals.

Where the Cash Actually Went

Profit and cash are not the same thing — a business can be profitable on paper while running out of cash (e.g. if customers are slow to pay). The Cash Flow Statement (Accounting > Reporting > Cash Flow) explains the difference.

The Three Activity Groups

• Operating Activities – cash from normal business operations, starting from Net Profit and adjusting for non-cash items and changes in receivables/payables/inventory.
• Investing Activities – cash spent on or received from fixed assets and investments.
• Financing Activities – cash from loans, owner contributions, or distributions.

Opening Cash + Net Cash from all three groups = Closing Cash, which should tie exactly to your actual bank balances at the report date.

Executive Summary

Go to Accounting > Reporting > Executive Summary for a single condensed page aimed at non-accountants: revenue, profitability, cash, and a handful of key ratios, each with a period-over-period comparison — the report to hand an owner or board member who doesn't need (or want) the full Balance Sheet/P&L detail.

Who Owes You, Who You Owe

Partner Ledger

Go to Accounting > Reporting > Partner Ledger. Every transaction for one or more selected customers/vendors — invoices, payments, credit notes — with a running balance. This is the report you send a customer when they ask "what's my current balance and history with you."

Aged Receivable

Go to Accounting > Reporting > Aged Receivable. Outstanding customer invoices bucketed by how overdue they are:

• Not Due / Current
• 1–30 days overdue
• 31–60 days overdue
• 61–90 days overdue
• 90+ days overdue

This is the standard collections tool — work the far-right (most overdue) buckets first, and watch for customers who consistently drift further right over time.

Aged Payable

The mirror image for vendor bills you owe — same aging buckets, used for cash-outflow planning: which bills are due soon, and which are already overdue on your side.

Reconciling to the Balance Sheet

The total of Aged Receivable should tie to the Balance Sheet's Receivables line, and Aged Payable to Payables — if they don't match, something was posted directly to the receivable/payable account outside the normal invoice/bill workflow and needs investigating.