Running reports in Easy Books is very straightforward. Two main financial reports are shown in the Easy Books Sidebar.
Profit & Loss
The purpose of the report is to show the total revenue, total expenses (outgoings) and how much profit the business made over a period of time. All income and expense accounts are used to produce the report. The resulting profit figure is normally used as a basis for calculating any corporation tax due.
Each financial period in your business should be consolidated once you have entered all the transactions. This transfers the overall profit figure into your "Profit and loss" account and resets all your income and expense accounts to zero at the start of the new financial period.
If you see the line Opening Balances in your report, this indicates an error in your opening balances.
Balance Sheet
The balance sheet is a financial statement that lists the assets, liabilities and shareholders' equity for your business at a specific date. The intention is to show what the business owns and owes, as well as the amount invested by the business owners.
The balance sheet follows the formula:
Assets = Liabilities + Shareholders' Equity
Easy Books splits assets into current and fixed assets. Current assets are the more financially liquid or the two, such as cash in the bank, money owed to you by your customers and any stock. Fixed assets are more long-term, such as buildings, fixtures and fittings, IT equipment and so on.
The Net current assets (liabilities) figure (sometimes called working capital and current capital) shows the difference between the more liquid assets and liabilities and is a good indication of how much money the business has to finance it's day to day operations.