Overview

Financial statements show your company’s financial health and support informed decisions. iVendNext helps generate key reports like Trial Balance, Balance Sheet, Cash Flow, and P&L. This guide explains how to create and use them for analysis.

1. Overview of Financial Statements in iVendNext

Financial statements in iVendNext are designed to provide flexibility and detailed insights into your company’s financial performance. Here’s a brief overview of the key financial statements available:

• Trial Balance: A summary of all ledger accounts, showing debit and credit balances.

• Balance Sheet: A snapshot of the company’s assets, liabilities, and equity at a specific point in time.

• Cash Flow Statement: A report showing the inflows and outflows of cash over a period.

• Profit and Loss Statement: A summary of revenues, expenses, and net income over a period.

2. Generating Financial Statements in iVendNext

2.1 Trial Balance

To generate a Trial Balance in iVendNext:

1. Navigate to Accounts > Accounting Statements > Trial Balance.

2. Select the Reporting Period: Choose the start and end dates for the report.

3. Apply Filters: You can include or exclude period closing entries, show/hide accounts with zero balances, and display unclosed previous fiscal year balances.

The Trial Balance report shows:

• Opening Balances: Debit and credit balances at the start of the period.

• Debit and Credit Totals: Total debits and credits during the period.

• Closing Balances: Debit and credit balances at the end of the period.

2.2 Balance Sheet

To generate a Balance Sheet in iVendNext:

1. Navigate to Accounts > Accounting Statements > Balance Sheet.

2. Select the Reporting Period: Choose the date for which you want to generate the report.

3. Apply Filters: You can compare values across multiple years, check values for specific finance books or cost centers, and display balances in different currencies.

The Balance Sheet provides a detailed view of your company’s financial position, including assets, liabilities, and equity.

2.3 Cash Flow Statement

To generate a Cash Flow Statement in iVendNext:

1. Navigate to Accounts > Accounting Statements > Cash Flow.

2. Select the Reporting Period: Choose the start and end dates for the report.

3. Apply Filters: You can analyze cash flow for specific projects, cost centers, or finance books.

The Cash Flow Statement helps you analyze the liquidity position of your company by showing cash inflows and outflows.

2.4 Profit and Loss Statement

To generate a Profit and Loss Statement in iVendNext:

1. Navigate to Accounts > Accounting Statements > Profit and Loss Statement.

2. Select the Reporting Period: Choose the start and end dates for the report.

3. Apply Filters: You can compare values across multiple years, check values for specific finance books, projects, or cost centers, and display balances in different currencies.

The Profit and Loss Statement summarizes revenues and expenses, providing insights into your company’s profitability.

3. Analyzing Financial Statements in iVendNext

Once you’ve generated the financial statements, the next step is to analyze them to gain insights into your company’s financial performance. Here’s how you can use each report:

3.1 Trial Balance Analysis

• Reconciling Accounts: Use the Trial Balance to ensure that the total debits equal total credits, which helps in identifying any discrepancies.

• Identifying Errors: Any imbalance in the Trial Balance indicates errors in the ledger entries that need to be corrected.

3.2 Balance Sheet Analysis

• Assessing Financial Position: The Balance Sheet helps you assess your company’s financial position by showing the value of assets, liabilities, and equity.

• Liquidity Analysis: Analyze current assets and liabilities to assess your company’s ability to meet short-term obligations.

3.3 Cash Flow Statement Analysis

• Cash Flow Management: Use the Cash Flow Statement to monitor cash inflows and outflows, ensuring that your company maintains sufficient liquidity.

• Identifying Cash Flow Trends: Analyze trends in operating, investing, and financing activities to identify areas for improvement.

3.4 Profit and Loss Statement Analysis

• Profitability Analysis: The Profit and Loss Statement helps you assess your company’s profitability by comparing revenues and expenses.

• Cost Management: Identify areas where expenses can be reduced to improve net income.

4. Important Points To Remember

To make the most of the financial statements in iVendNext, follow the below points:

4.1 Regularly Generate Financial Statements

Generate financial statements on a regular basis (monthly, quarterly, or annually) to keep track of your company’s financial performance.

4.2 Use Filters for Detailed Analysis

Take advantage of the filtering options in iVendNext to analyze financial data for specific periods, projects, cost centers, or finance books.

4.3 Compare Across Multiple Periods

Use the multi-year comparison feature to analyze trends and identify areas for improvement.

4.4 Leverage Multi-Currency Features

If your business operates in multiple currencies, use the multi-currency features to generate financial statements in different currencies and manage foreign exchange risks.