Reading your books

# Reading your books

Every statement is built from the posted entries in the books. Drafts are not included. Choose a period or a date, then read the statement. The Plain view uses the names in the first column. The Accountant view uses the names in the second.

The main statements

| Plain name | Accountant name | Answers | Period or date | | --- | --- | --- | --- | | Profit and loss | Income statement | Did the business make money in the period? | From and to dates | | Balance sheet | Balance sheet | What do you own and owe on a given day? | As at a date | | Trial balance | Trial balance | Do the debits and credits agree, and what is each account's balance? | As at a date or period | | General ledger | General ledger | What went into and out of each account, entry by entry? | From and to dates, by account |

The balance sheet includes the profit to date in the equity section. Read it with the profit and loss for the same period.

Money owed

| Plain name | Accountant name | Answers | | --- | --- | --- | | Who owes you | Receivables aging | What customers owe you, grouped by how long it has been outstanding | | What you owe | Payables aging | What you owe suppliers, grouped the same way | | Statement | Customer or supplier statement | Everything for one contact over a period, with the balance |

See customers-and-suppliers for statements.

Tax reports

| Plain name | Accountant name | Answers | | --- | --- | --- | | Tax totals by rate | Tax summary | Sales and purchases by tax rate for a period. The source for the sales tax, GST and GST summary worksheets (see return-worksheet). | | Totals by tax line | Tax-line report | Income and expenses grouped by tax line. Accounts with no tax line are listed apart (see tax-lines). |

Reading a statement

1. Check the period or date at the top.
2. Check the totals against what you expect from the bank.
3. Use the general ledger to see the entries behind a figure.
4. Print or copy the statement if your accountant needs a copy.

If a figure looks wrong, check the month-end checklist for the period first. Unposted drafts and accounts without a tax line are the most common reasons.