Financial statements

Trial balance, profit & loss and balance sheet — how to run them, read them, and drill into the journals behind them.

Finance → Accounting → Statements

StatementRouteAnswers
Trial Balance/reports/trial-balanceDo the books balance, and what is each account's position?
Profit & Loss/reports/profit-lossDid we make money over a period?
Balance Sheet/reports/balance-sheetWhat do we own and owe as at a date?

Trial balance

The trial balance lists every account with its debit or credit balance as at a date. Total debits must equal total credits.

ColumnMeaning
AccountName and code.
Account type / classGrouping.
Debit / CreditThe balance and its side.
Balance statusWhether the account carries a debit or credit balance.

Include zero-balance adds accounts with no movement. Leave it off for a working review; turn it on when checking that the chart itself is complete.

The trial balance is run as at a date, not for a range — it is a position, not a flow.

Profit and loss

Income less expenses over a date range.

The statement groups by account class, so its usefulness depends directly on how the chart of accounts is designed. Total expenses include non-operating expenses and tax, so the bottom line is the actual result rather than an operating subtotal.

Read it with:

  • Comparatives — this period against the last, or against budget. See Budgets.
  • Attention on the unusual — a category that moved sharply, or one that did not move at all when it should have.

Balance sheet

Assets, liabilities and equity as at a date.

Things to check every period:

CheckWhy
Receivables agree with the aging reportA gap means invoices or allocations are not posting.
Deposits held agree with the deposits moduleDeposits in an income account is a classic mapping error.
Bank balances agree with reconciled bank statementsThe most direct test that cash postings are complete.
Payables agree with unpaid expensesA gap means expenses recorded but not posted, or paid without settling.

Drill-down

Statement lines are not dead ends. From a line you can drill into the journal lines that produced it, and from a journal line to the source invoice, payment or expense. The journal detail shows the journal id, the posting key and, where applicable, the reversal journal.

Use Open in Journal entries to move from a summarised figure to the underlying entries.

This is the fastest way to answer "why is this number what it is" — far faster than exporting to a spreadsheet and re-deriving it.

Supporting ledger reports

ReportRouteUse
General ledger/reports/general-ledgerEvery movement on an account, with a category filter.
Journal lines/reports/journal-linesThe raw line-level journal, filterable by block, unit, lease and owner.
AR aging ledger/reports/ar-aging-ledgerReceivables by age at ledger level.
Customer statement ledger/reports/customer-statement-ledgerA customer's ledger position.
Transactions report/reports/transactions-reportTransaction-level detail across the branch.

See Reports for the full catalogue.

Running statements correctly

  1. Confirm the branch

    Statements are branch-scoped. An unexpectedly small profit is usually one branch, not a bad month.

  2. Choose the right basis

    Trial balance and balance sheet are as at a date; profit & loss is over a range.

  3. Close the period first for final numbers

    Statements over an open period can still change. See Accounting periods.

  4. Reconcile before you circulate

    Receivables to aging, cash to bank, deposits to the deposits module.

Common problems

SymptomCause
Revenue lower than billing suggestsInvoices issued but not posted — check posting status on the invoices list.
Receivables higher than agingCredit notes or write-offs not posted, or allocations missing.
An account is missing from a statementIt is inactive, has a zero balance with the toggle off, or its account type is wrong.
Figures change between two runs of the same reportThe period is still open.