Balance sheet

The Balance Sheet report shows what a company owns and owes on a date: its assets on one side, its liabilities and equity on the other, with the profit or loss of the year so far. Run as of the last day of a financial year, after the FX revaluation on the Journal entries page and the year-end closing, it is the company’s balance sheet for the year.

To open it, select Finance > Balance Sheet.

Run the report

If you have access to more than one company, choose the company. TrakIT remembers your choice for next time.
Choose the financial year. The report starts on the open year that includes today, or on the latest open year if none does.
Check the date in the box next to the year. It starts on the last day of the year, and must fall within it: a date outside the year is set back to the year’s last day.
To see the sub-accounts under each account, select Show accounts.

The report updates as soon as you change one of them. All figures are in the company’s base currency, shown under the year.

What the report shows

The left side lists the account groups that carry debit balances: the assets. The right side lists the groups that carry credit balances: the liabilities, then the equity.

On each side, under each category, every account group lists its top-level accounts, by code, with their balances, and ends with a Total. With Show accounts, each account’s sub-accounts follow it in smaller grey text; inactive sub-accounts with no balance are left out.

At the bottom of the right side, Net Income (P/L) shows the profit or loss of the year so far. Each side ends with its TOTAL. The two totals are equal when the books are in order.

How the figures are worked out

An account’s balance is the sum of all the journal lines dated on or before the date, on the account and on all its sub-accounts, from the first entry in the books: not only the entries of the selected year.
On the right side, credit balances are shown as positive amounts.
Net Income (P/L) is the revenue minus the expenses from the first day of the selected year to the date. Until the year is closed, the year’s profit or loss sits in the revenue and expense accounts, which are not on the balance sheet: this line brings it in, so the two sides agree.
When a year is closed, the year-end closing entry, dated the year’s last day, moves its profit or loss to the retained earnings account. As of that day, Net Income is zero and the result is part of equity. See Financial years.

Warnings

Red warnings can appear below the report:

The ledger does not balance as of this date, with the difference: the debit and credit balances of all the company’s accounts do not cancel out. Every journal entry balances when it is posted, so this points to a problem in the data. Check the Trial balance and report it to your TrakIT administrator.
One or more earlier Financial Years are still open: the profit or loss of those years is still in the revenue and expense accounts. It is not in retained earnings and not in Net Income, which counts only the selected year, so the two sides differ until you close those years. See Financial years.

Who can use this page

Your role needs Read in the Financial Reports section. The company list shows the companies you have access to.