Financial Statements Guide | Accounting & Closing

Overview

These reports answer two different financial questions. The Profit and Loss family shows performance over a period. The Balance Sheet family shows financial position at a point in time.

Profit And LossIncome, cost of sales, expenses, and net income.

Balance SheetAssets, liabilities, and equity.

Comparison ReportsHelp explain changes between dates, periods, or locations.

Tip: Use Trial Balance first when you need a control check, then move to financial statements when you want business interpretation.

Reports Covered

Report	Menu Path	Main Purpose
Profit and Loss	Reports > Accounts > Profit and Loss	Shows operating performance for the selected period.
Profit and Loss Comparison	Reports > Accounts > Profit and Loss Comparison	Compares one period or location against another.
Monthly Profit and Loss	Reports > Accounts > Monthly Profit and Loss	Shows a full year month by month.
Profit and Loss by Locations	Reports > Accounts > Profit and Loss by Locations	Compares profitability across branches, stores, or locations.
COGS Detail	Reports > Accounts > COGS Detail	Reviews cost-of-goods-sold detail when gross profit needs deeper explanation.
Net Income Detail	Reports > Accounts > Net Income Detail	Provides supporting detail behind final net income.
Balance Sheet	Reports > Accounts > Balance Sheet	Shows assets, liabilities, and equity for the selected date.
Balance Sheet Comparison	Reports > Accounts > Balance Sheet Comparison	Compares financial position between two dates or locations.
Monthly Balance Sheet	Reports > Accounts > Monthly Balance Sheet	Shows monthly balance sheet movement through a full year.
Retained Earnings Detail	Reports > Accounts > Retained Earnings Detail	Reviews the detail behind retained earnings movements and year-end carrying balances.
Financial Ratios	Reports > Accounts > Financial Ratios	Summarizes key ratios that help management interpret liquidity, leverage, and performance.

Common Filters

Field Or Option	What It Means
Date / Date Range	Selects the statement period or statement date you want to review.
Year	Used in monthly reports to show all 12 months of the selected year.
Location / Store	Limits the report to one branch or compares performance across locations where supported.
Currency	Shows results in the selected reporting currency when the business uses multi-currency reporting.
Display Type	Choose List for traditional report reading or Graph for visual presentation.
Graph Type	Monthly and aging-style visuals may allow vertical, line, or pie views depending on the report.
Sort By Number / Name	Controls whether accounts appear in chart order or alphabetical order.

Profit And Loss Family

Profit and Loss

Use this as the standard income statement for the selected period. It helps management review revenue, cost of goods sold, gross profit, expenses, other income or expense, and final net income.

Best for regular monthly review, branch review, and management reporting.
Use List when you need a formal statement and Graph for meetings or presentation.

Profit and Loss Comparison

Use this when you want to compare one period against another, or one location against another, to explain change.

Useful for month-on-month, quarter-on-quarter, or this year versus last year review.
Helpful for explaining why income, gross profit, or expenses moved.

Monthly Profit and Loss

Use this when you want the full year in one report. QBM shows the selected year month by month so you can identify seasonality and timing changes.

Profit and Loss by Locations

Use this when the same business operates across multiple stores, branches, or locations and management wants to compare location performance for the same period.

COGS Detail

Use this when gross profit needs further explanation. It helps finance users review the cost detail that sits behind cost of goods sold.

Net Income Detail

Use this when the final net income result is correct at summary level but management or audit needs supporting detail.

Balance Sheet Family

Balance Sheet

Use this as the standard statement of financial position for a selected date. It shows assets, liabilities, and equity at that point in time.

Best for month-end, quarter-end, year-end, and bank or management review.
Sorting by account number is usually better when management follows the chart structure.

Balance Sheet Comparison

Use this to compare the business position between two dates or two location views. It is useful for understanding movement in cash, receivables, inventory, payables, and equity.

Monthly Balance Sheet

Use this to review how balance sheet accounts changed through the selected year month by month. It is especially useful for cash, receivables, inventory, and payables trend analysis.

Retained Earnings Detail

Use this when retained earnings needs supporting detail, especially around year-end review and balance carry-forward checks.

Financial Ratios

Use this when management wants interpretation rather than only raw balances. Ratios help explain liquidity, financial strength, and performance trends.

How they work together: Profit and Loss explains performance over time. Balance Sheet explains what the business owns, owes, and has invested at a date.

How To Use Them Together

Run Profit and Loss for the current period to review business performance.
Run Balance Sheet for the same date to review financial position.
If something changed more than expected, use the comparison version of the same report.
Use monthly versions when management wants a full-year trend view in one place.
Use the location version when branch-level performance matters.

Best Practice

Keep the period consistent when comparing reports.
Use the same currency and location logic across related reviews.
Run comparison reports after unusual results, not before.
Use monthly reports for trend analysis and standard reports for formal review and printing.

Important: If the statements do not look right, review the Trial Balance, source transactions, and account setup before finalizing management reports.