How Financial Statements Are Created

• The Dashboard shows any transactions that are out of balance on the left, and all the accrual accounts on the right. It opens by default.
• The Statement of Profit or Loss provides an overview of an organisation’s profitability during a selected period. Data can be viewed monthly, annually or for custom dates.
• The Statement of Financial Position provides a snapshot of an organisation’s financial position on a specific date.
• The Trial Balance lists all the accounts that have balances during a selected period.
• The Chart of Accounts determines the structure of these reports.

The QuickEasy BOS Process#

The financial reports in QuickEasy BOS show whether your business is making money, what it owns (Assets), and what it owes (Liabilities).

Every time you record a transaction (e.g. a sale, supplier payment or bank deposit), it is stored with details about what account it affects (e.g. Sales or Cash), how much money moved, and when it happened. The system uses this transaction information to build your reports by sorting and adding it up.

Step-by-Step Process#

1. Collects the information from each transaction:
   1. Selects the accounts that are involved (e.g. Rent or Cash).
   2. Checks whether the entry is a sale (credit) or an expense (debit).
   3. Checks the date it happened.
   4. Checks which part of your business it belongs to (if you track multiple entities).
2. Sorts the information into the applicable format:
   1. Statement of Profit or Loss: Covers a specific period (e.g. January to December), to show a profit or loss. It adds all the debits and credits from transactions relating to Income and Expenses within that time.
   2. Statement of Financial Position: Provides a snapshot of the business on a specific day (e.g. 31 December). It shows the closing balances of Assets, Liabilities and Equity on that date. The ending balances represent the sum of all the debits and credits.
3. Rolls up account totals to groups and sections:
   1. The balances from sub-accounts are added to create a balance for the main account.
   2. The accounts in each section are added to create a subtotal for the section.
4. Calculates summary lines:
   1. Statement of Profit or Loss: Calculates and shows summaries such as Gross Profit (Revenue less Cost of Sales) or Net Profit (all the credits (income) less all the debits (expenses)).
   2. Statement of Financial Position: Shows totals for Assets (everything you own), Liabilities (what you owe) and Equity (Shares, and Retained Earnings or Retained Income).