Financial Statements

Financial statements provide a structured view of your business health. Versoll Books generates these core reports automatically from your transaction data, giving you real-time visibility into assets, liabilities, income, and expenses.

Reports covered

Balance Sheet, Profit and Loss, Trial Balance, and General Ledger. Each report can be filtered by date range and exported for external use.

Balance Sheet

The Balance Sheet shows what your business owns (assets), what it owes (liabilities), and the remaining value (equity) at a specific point in time. This is the primary report for understanding financial position.

Step 1

Access the Balance Sheet

Navigate to Reports > Balance Sheet. The report loads with the current fiscal year by default.

Step 2

Set Date Range

Adjust the reporting period using the date filters:

  • From Date: Start of the period.
  • To Date: End of the period (balance as of this date).
Step 3

Read the Report Structure

The Balance Sheet organizes accounts into three sections:

  • Assets: Cash, bank accounts, receivables, inventory, fixed assets.
  • Liabilities: Payables, loans, duties and taxes payable.
  • Equity: Capital, retained earnings, reserves.

The Balance Sheet must always balance: Total Assets = Total Liabilities + Total Equity. If it does not, there may be unposted transactions or data entry errors.

Step 4

Expand Account Groups

Click on any account group to expand it and see individual account balances. This helps identify which specific accounts contribute to the totals.

Use Case: Month-End Review

Generate a Balance Sheet at the end of each month. Compare it to the previous month to track how assets and liabilities have changed. Growing receivables may indicate collection issues; growing payables may signal cash flow concerns.

Profit and Loss

The Profit and Loss statement (also called Income Statement) shows revenue earned and expenses incurred over a period. The difference is your net profit or loss.

Step 5

Access Profit and Loss

Navigate to Reports > Profit and Loss. Select your desired date range.

Step 6

Understand the Structure

The report displays two main sections:

  • Income: Sales revenue, service income, other income.
  • Expenses: Cost of goods sold, operating expenses, administrative costs.
Step 7

Analyze Profitability

Key metrics to review:

  • Gross Profit: Income minus cost of goods sold.
  • Operating Profit: Gross profit minus operating expenses.
  • Net Profit: Final profit after all expenses.

A positive net profit (shown in green) indicates the business is earning more than it spends. A negative value (shown in red) indicates a loss for that period.

Use Case: Quarterly Review

Compare Profit and Loss reports across quarters to identify seasonal patterns. If expenses spike in certain months, investigate the cause and plan accordingly.

Trial Balance

The Trial Balance lists all accounts with their debit and credit balances. It serves as a verification tool to ensure that total debits equal total credits before preparing final statements.

Step 8

Access Trial Balance

Navigate to Reports > Trial Balance. Set the date range for the period you want to verify.

Step 9

Review Column Structure

The Trial Balance shows multiple columns for each account:

  • Opening (Dr/Cr): Balance at the start of the period.
  • Debit/Credit: Transactions during the period.
  • Closing (Dr/Cr): Balance at the end of the period.
Step 10

Check for Balance

Total debits must equal total credits. If they do not match, investigate recent journal entries or invoice postings for errors.

Use the Hide Group Amounts option to see only individual account balances without group subtotals. This simplifies the view for detailed analysis.

General Ledger

The General Ledger provides a complete transaction history for all accounts. It shows every debit and credit posting with references to the source documents.

Step 11

Access General Ledger

Navigate to Reports > General Ledger. The report loads transactions from the past year by default.

Step 12

Apply Filters

Narrow down the data using available filters:

  • Ref Type: Filter by Sales Invoice, Purchase Invoice, Payment, or Journal Entry.
  • Ref Name: Search for a specific document number.
  • Account: View transactions for a single account.
  • Party: Filter by customer or supplier.
  • Date Range: Set from and to dates.
Step 13

Group Transactions

Use the Group By option to organize transactions:

  • None: Show all transactions in chronological order.
  • Party: Group by customer or supplier.
  • Account: Group by account name.
  • Reference: Group by document number.
Step 14

Include Cancelled Entries

Enable the Include Cancelled checkbox to see reverted transactions. This helps when auditing changes or investigating discrepancies.

Use Case: Audit Preparation

Export the General Ledger for a specific account (e.g., Bank Account) and date range. Provide this to auditors as evidence of transaction history.

Exporting Reports

All financial statements can be exported for external analysis or record-keeping.

Step 15

Export to PDF or Excel

Click the Export button on any report page. Choose your format:

  • PDF: Formatted for printing and sharing.
  • Excel: Editable spreadsheet for further analysis.

Best Practices

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