Financial Statements

1. THE FOUR STATEMENTS

• Balance Sheet — your assets, liabilities, and equity as of a chosen date.
• Trial Balance — every account and its balance, the raw check that your books are in balance.
• Profit & Loss (Income Statement) — revenue, expenses, and net profit over a chosen period.
• Cash Flow Statement — how cash actually moved in and out over a period, distinct from profit on paper. Each one is generated on demand from the same posted ledger — there's no "refresh the report" delay or separate export/import step. Post a transaction, and it's already reflected the next time you open any of these.

2. ACCRUAL VS. CASH BASIS — YOUR CHOICE, PER VIEW

Every statement offers an Accrual/Cash toggle:

• Accrual basis shows your full financial position exactly as posted — revenue when earned, expenses when incurred, regardless of when cash actually changes hands. This is the standard method banks, investors, and most accountants expect.
• Cash basis shows only money that's actually been received or paid — timing-only items like outstanding receivables/payables and prepayments are excluded, so the report reflects real cash movement rather than promises. Your business sets a default method once in Settings, but you can override it for any individual report view without changing that saved default — so you can glance at a cash-basis P&L for your own planning while your official reports stay on accrual. This follows the same "modified cash basis" convention used by QuickBooks and Xero, applied consistently across every statement rather than each report inventing its own rules.

3. HOW IT CONNECTS TO THE REST OF THE SYSTEM

• Chart of Accounts / General Ledger — every number on every statement traces back to a specific posted, balanced journal entry — nothing here is a rounded estimate or an approximation.
• Budgeting — your P&L and Balance Sheet actuals are the exact same live numbers used in budget-vs-actual comparisons.
• Dashboard — the Accounting dashboard's headline KPIs (Net Profit, Total Assets, etc.) are summarized directly from these same statements.

4. WHY IT SCALES FROM SMB TO ENTERPRISE

Quick Reference

  Balance Sheet ............................ Reports > Balance Sheet
  Trial Balance ............................ Reports > Trial Balance
  Profit & Loss ............................ Reports > Profit & Loss
  Cash Flow Statement ...................... Reports > Cash Flow Statement
  Set your default method .................. Settings > Accounting