Simplifying Financial Reporting

Simplifying Financial Reporting

Step-by-Step Financial Reporting: Trial Balance, P&L, and Balance Sheet in SwilERP


Overview:

SwilERP offers important financial reports to help businesses keep accurate records and understand their finances. These reports include Trial Balance, Profit and Loss Account, and Balance Sheet. Each report is designed to make bookkeeping, performance analysis, and financial tracking easy. This article explains their features, requirements, and steps to create them in SwilERP for smooth financial management.

1. Trial Balance (Ledger Summary)

Description: The Trial Balance is a report that ensures all ledger balances are correct and match. It shows the total debits and credits, helping you verify accurate bookkeeping before creating financial statements.

Steps to Generate the Trial Balance Report:

  • Post all transactions in the ledger.

  • Verify ledger balances.

  • Generate the Trial Balance report in SwilERP.


Form Name: Trial Balance

Prerequisite:

  • Ledger accounts must have accurate debit and credit balances.

  • Ensure all entries are correctly posted in the ledger.


For detailed guidance, refer to: View Trial Balance in SwilERP  

 

Ledger Account Classification

Ledger Account

Account Group

Master

Cash-in-Hand

Cash

Current Assets

Accounts Receivable

Sundry Debtors

Current Assets

Sales Revenue

Revenue

Income

Cost of Goods Sold

Direct Expenses

Expenses

 

 

 

Trial Balance Example

Particulars

Debit (₹)

Credit (₹)

Assets:

 

 

Cash-in-Hand

30,000

 

Accounts Receivable

50,000

 

 

 

 

Liabilities & Equity:

 

 

Sales Revenue

 

1,00,000

 

 

 

Expenses:

 

 

Cost of Goods Sold

50,000

 

 

 

 

Totals

1,30,000

1,30,000

Notes:

  • Date: Use the current date or the end of the financial period.

  • Narration: "Verified ledger balances for the period ending [date]."

  • Reference No: Automatically generated by SwilERP.

 

2. Profit and Loss Account   (Income Statement)

Description: The Profit and Loss Account shows the company’s income and expenses during a specific period. It calculates the net profit or loss, helping you understand business performance.

Steps to Generate the Profit and Loss Report:

  • Finalize the trial balance.

  • Post income and expense entries.

  • Generate the Profit and Loss report in SwilERP.


Form Name: Profit and Loss Account

Prerequisite:

  • Trial balance must be accurate.

  • Ensure proper categorization of income and expense ledger accounts.


For detailed guidance, refer to:  View Profit & Loss Account in SwilERP 

 

Ledger Account Classification


Ledger Account

Account Group

Master

Sales Revenue

Revenue

Income

Other Income

Revenue

Income

Cost of Goods Sold

Direct Expenses

Expenses

Indirect Expenses

Indirect Expenses

Expenses

Net Profit

Profit & Loss

Reserves & Surplus

 

 

Profit and Loss Account Example

Dr. (Expenses and Losses)

Amount (₹)

Cr. (Income and Gains)

Amount (₹)

To Cost of Goods Sold

50,000

By Sales Revenue

1,00,000

To Indirect Expenses

20,000

By Other Income

10,000

To Net Profit (Transferred to Capital Account)

40,000

 

 

Total

1,10,000

Total

1,10,000

Notes:

  • Date: Specify the financial period covered.

  • Narration: "Summary of income and expenses for [period]."

  • Reference No: Automatically generated by SwilERP.

 

3. Balance Sheet   (Statement of Financial Position)

Description: The Balance Sheet gives a snapshot of the company’s financial position. It lists assets, liabilities, and equity, ensuring they balance and reflect the business's financial health.

Steps to Generate the Balance Sheet Report:

  • Finalize the Profit and Loss Account.

  • Verify ledger balances for assets, liabilities, and equity.

  • Generate the Balance Sheet report in SwilERP.


Form Name: Balance Sheet

Prerequisite:

  • Profit and Loss Account must be finalized.

  • Assets, liabilities, and equity ledger accounts must be categorized properly.

For detailed guidance, refer to: View Balance Sheet in SwilERP


Ledger Account Classification

Ledger Account

Account Group

Master

Sales Revenue

Revenue

Income

Other Income

Revenue

Income

Cost of Goods Sold

Direct Expenses

Expenses

Indirect Expenses

Indirect Expenses

Expenses

Net Profit

Profit & Loss

Reserves & Surplus


Balance Sheet Example

ASSETS

Amount (₹)

LIABILITIES & EQUITY

Amount (₹)

Current Assets

 

Current Liabilities

 

Cash-in-Hand

30,000

Creditors

40,000

Accounts Receivable

50,000

 

 

Total Current Assets

80,000

Total Current Liabilities

40,000

 

 

 

 

Non-Current Assets

 

Non-Current Liabilities

 

Machinery

1,00,000

Long-term Loan

20,000

Total Non-Current Assets

1,00,000

Total Non-Current Liabilities

20,000

 

 

 

 

Total Assets

1,80,000

Equity

 

 

 

Capital

1,20,000

 

 

Total Equity

1,20,000

 

 

 

 

Total Assets

1,80,000

Total Liabilities & Equity

1,80,000

 

Notes:

  • Date: As of the reporting date.

  • Narration: "Balance sheet as of [date], summarizing the company's financial position."

  • Reference No: Automatically generated by SwilERP.

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