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Finance → Accounting → Statements

Trial balance

The trial balance lists every account with its debit or credit balance as at a date. Total debits must equal total credits. 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.
Read the trial balance before every close. An account with a balance on the wrong side — a liability in debit, an income account in debit — is almost always a mapping error, and it is far cheaper to catch before you close than after.

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:

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

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