Profit and Loss / Income Summary
The Profit and Loss Report is linked to all the monthly sheets.
The rows with the "Account 1" etc are the account headings and are linked to the Accounts|Headers sheet
The 0.00 amounts under the months are the totals from each monthly worksheet. The 0.00 amount means no transactions have been entered into those months for the Cash Book.
This is the same throughout the profit and loss report for each section Income, COGS and Expenses.
This report is not in the Excel Cash Book Easy Start
The Balance Sheet Report is also linked to all the monthly sheets.
The rows with the Bank and Asset Purchases etc are the account headings and are linked to the Accounts|Headers sheet
The 0.00 amounts under the month are the totals from the January worksheet. The 0.00 amount means no transactions have been entered into January in the Cash Book.
This is the same throughout the Balance Sheet Report for each section Assets, Liabilities and Equity.
If you traded in a previous tax year and have an opening bank balance then you must enter the balance sheet balances from your previous tax year into the Opening Balances column on the Balance Sheet tab, otherwise it will not balance.
And enter the same amount next to Retained Earnings so this report balances.
If you do not have a Balance Sheet from the previous tax year, but were in business and have an opening bank balance this tax year, simply enter the opening bank balance and retained earnings amount (as mentioned in step 1 above) until you get a Balance Sheet for last year.
If you are not going to get a Balance Sheet for last year, it’s fine, you can keep working but remember that the Balance Sheet isn’t a true picture of the business data.
It will only be true for this year that you are working in.
The Balance Sheet Accounts in this Cash Book are:
- Owner's Deposit also known as Capital, or Funds Introduced
- Loans Received
- Loan Repayments
- Asset Purchases
- Petty Cash
- Credit Card Repayments
- Owner's Personal Expenses (Drawings)
- Inter-bank transfers
- Income Tax
- Payroll Tax
- Inventory on Hand value
The above type of payments have to be reported on the Balance Sheet not the Profit & Loss Report.