Accounting Reports

Let’s now understand the basics of Financial Reports and learn how to make use of the available reports in Frappe Books.

General Ledger

The General Ledger is a detailed report for all transactions posted to each account and for every transaction there is a Credit and Debit account so it lists them all up.

The report is based on Ledger Entries created from each accounting transaction.

You can use the following filters in the General Ledger to filter and view a specific entry:

  • Reference Type (Invoice or Bill)
  • Reference Name (the specific Invoice or Bill)
  • Account
  • Party (Customer or Supplier)
  • Date range

This helps you to get a full update for all entries posted in a period against any account.

To view the General Ledger, go to Reports > General Ledger

General Ledger

Profit and Loss Statement

All of the money that your business earned from when it started minus the expenses that it incurred will be the total profit (or loss) the business has generated. But we aren’t interested in the total amount, but the amount that is generated last month or last quarter or last year. Hence, Profit and Loss statement is always viewed for a specific time period.

Here are some insights you can gain from this report:

  1. Compare this month’s profit with last month.
  2. Compare quarter wise or year wise profits or losses.
  3. Find out the total profit or loss for a specific time window.

The P&L statement for any period reflects all the income minus all the expenses in that period. At the end of the period, (a fiscal year) the total profit (or loss) goes into Owner’s Equity because the profit in the business belongs to the owners. The owner’s account is a liability to the company since the company has to pay out the profits/losses.

To check your P&L statement, go to Reports > Profit and Loss.

Here the default period is set to the current Fiscal Year and is split monthly. You can change the period as well as change the way the period is split in the report.

Profit and Loss

As you can clearly see, we have the total Income in the first part which also shows the income coming from each Income account split Monthly so you have a better understanding of your income. The same is done with the Expense section. The report is concluded by the total profit (or loss) incurred which is also split Monthly.

Balance Sheet

A Balance Sheet is the financial statement of a company which states assets, liabilities and equity at a particular point in time. In Frappe Books, you can view the balance sheet for your accounts based on monthly, quarterly, half-yearly, and yearly periods.

To view this report, go to Reports > Balance Sheet.

Balance Sheet

Trial Balance

A Trial Balance is an accounting report which lists account balances for all your Accounts (“Ledger” and “Group”) for any given reporting period.

A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct. The totals of Debit and Credit columns must be the same for any given period, to ensure the entries are correct.

To view this report, go to Reports > Trial Balance.

Trial Balance