Financial Statements present accounting information, in a formal report, that tells interested groups how a business is doing.  Financial Statements are prepared at least once a year.  Interim statements can also be prepared for a six, three or one month period.  Typically, Financial Statements are prepared once an accounting period.

The two Financial Statements available on the EZZ system are the Income Statement and the Balance Sheet.

The Income Statement is a report that presents the revenue, expenses, and net income, or net loss, for a business for a period of time.  A net income is represented if the total revenues exceed the total expenses.  A net loss is represented if the total expenses exceed the total revenues.

The Balance Sheet is simply a detailed listing of the assets of a business and the claims against those assets by creditors and the owners.  The claims against the assets are known as liabilities (claims by creditors) and owner's equity (claims by owners).  The Balance Sheet is so named because, upon completion, it must be in balance.  The claims against the assets must be equal to the assets.  This is the basic accounting equation A=L+OE, assets equal liabilities plus owner's equity.  The Balance Sheet is cumulative in nature in that it reports the results of all financial activity of a business since the formation of that business.

The Balance Sheet and the Income Statement are generally printed every accounting period.

Statement Setup

Accounting Period. Enter the accounting period for which the Financial Statements are to print.

Print Income Statement (Y/N). If an Income Statement is needed, enter "Y".  The cursor will continue on to the next prompt.  If only the Balance Sheet is needed, enter "N".  The cursor will move to the Balance Sheet section of the statement setup.

Print P-T-D & Y-T-D data. The prompt will read Enter data selection (Y=Year to date, P=Period to date, B=Both).  If only Year to Date data is needed, enter "Y".  If only Period to Date data is needed, enter "P".  If both Year to Date and Period to Date data is needed, enter "B".

Print Balance Sheet (Y/N). If a Balance Sheet is needed, enter "Y".  The cursor will move to the remaining prompts.  If a Balance Sheet is not needed, enter "N".  The cursor will move to the Print accounts with zero balance (Y/N) prompt.

Print P-T-D & Y-T-D data. The prompt will read, and the responses will be, identical to the prompt in the Income Statement section.

Print Liabilities on a new page (Y/N). The Balance Sheet can run as a continuous report, showing assets and liabilities on the same page, or as a split report, showing assets on one page and liabilities on another.  If the continuous report is needed, enter "N".  If a split report is needed, enter "Y".

Print accounts with zero balance (Y/N). The Income Statements and Balance Sheet can be printed to include accounts with a zero balance.  If zero balance accounts are to print on the Financial Statements, enter "Y".  If zero balance accounts are to be omitted from the Financial Statements, enter "N".

The system will gather the information required for the report(s) and print them from the printer selected.

The Income Statement will display the account names, divided by the Account Breaks, the Period to Date activity, the percentage of revenue (% REV), the Year to Date activity and the percentage of revenue.  Each Account Break is subtotaled and the Income Statement is totals to display the gain or (loss) and the percentage of revenue the gain or (loss) represents.

The Balance Sheet will display the account names, divided by the Account Breaks, the Period to Date account activity and the Year to Date account balances.  The Account Breaks are further divided by Assets and Liabilities, if the liabilities break was selected. Assets and Liabilities are totaled for comparison.