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.

Revenue, Costs, and Net Profit Over a Period

Go to Accounting > Reporting > Profit and Loss. Unlike the Balance Sheet, this report always covers a date range (default: this fiscal year to date).

The Waterfall

1. Revenue – all income accounts.
2. Less Cost of Revenue – direct costs of what you sold.
3. = Gross Profit
4. Less Operating Expenses – overhead, salaries, rent, etc.
5. = Operating Income (or Loss)
6. Plus Other Income / Less Other Expenses – non-operating items (interest, one-off gains/losses).
7. = Net Profit

This Net Profit figure — scoped to the current fiscal year — is exactly what the Balance Sheet's "Net Income (Current Year)" line pulls in live.

Comparing Periods

Use the comparison filter to add columns for prior months/quarters/years side by side — the fastest way to spot a cost that's crept up or a revenue line that's slipping, rather than staring at one period in isolation.

Budgets on the P&L

If budgets are configured (see the Budgets course), enable "Show Budgets" to add a Budget column and variance alongside Actuals directly on this report.

The Detail Behind Every Summary Report

General Ledger

Go to Accounting > Reporting > General Ledger. Lists every journal item, grouped by account, for the selected period — the complete, unabridged audit trail. Use this when a summary report's number needs full line-by-line justification (for an auditor, or your own sanity check).

• Filter by account, journal, or partner.
• Each line shows date, journal, reference/description, debit, credit, and running balance.
• Click through to the originating invoice/bill/journal entry.

Trial Balance

Go to Accounting > Reporting > Trial Balance. One row per account: opening balance, total debit movement, total credit movement, and closing balance for the period.

• The classic checkpoint before closing a period: total debits must equal total credits across every account.
• Often exported to hand to an external accountant/auditor as the starting point for their own workpapers.

When to Use Which

Trial Balance answers "what's the balance of every account" at a glance; General Ledger answers "show me every transaction that built up to that balance" for one or a few accounts. Start with Trial Balance to spot which account looks wrong, then drill into General Ledger for that specific account.