Financial Statements

Generally accepted accounting practice requires that a company periodically compile its financial information in two financial statements: a balance sheet and an income statement. The balance sheet provides a summary of a company’s resources, liabilities, and equity at a given point in time. The income statement shows profit or loss for a given time period. The amount of detail presented in these statements often varies according to the audience.

Most companies print a trial balance summary or detail report before printing statements. The trial balance lists the title and amount for all accounts, making it easier to spot errors and make adjusting entries before printing formal statements.

The Balance Sheet report calculates the balance of all profit and loss GL accounts from the start of the GL calendar year up to the end of the selected time frame. You can run the report for either actuals or budgets.

Typically, Balance Sheets are constructed from the following information:

• Balances of all asset accounts, such cash accounts, accounts receivable, and prepaid expenses

• Balances of all liability accounts, such as accounts payable, and unmatched invoices accounts, bank loans, and income tax liabilities

The system compiles the balance sheet for the most recent GL calendar year that is not closed to transactions. The balance sheet always contains data from the first day of the GL calendar year up to the end date you specify.

Create Balance Sheet reports using Financial Report Writer, which provides you with the flexibility to create financial statements tailored to the presentation needs of your organization. Financial Report Writer is QAD’s recommended approach for creating financial statements. See Financial Report Writer.

The Income Statement report is used to track revenues and expenses so that you can determine the operating performance of your organization over a specific period.

Income statements help investors and suppliers determine the past performance of the organization and predict future performance. The Income Statement typically includes figures from income and expense accounts, such as sales and rent revenue, and cost of goods sold, selling expenses, and overhead expenses.

Create Income Statement reports using Financial Report Writer, which provides you with the flexibility to create financial statements tailored to the presentation needs of your organization. Financial Report Writer is QAD’s recommended approach for creating financial statements. See Financial Report Writer.