Business Overview
Business overview reports provide a comprehensive summary of a company’s performance and health over a specific period. These reports summarize the revenue, expenses, profits, and cash flow of an organization.
Let’s take a look at the various business overview reports you can generate to assess the financial health of your organization.
IN THIS PAGE…
Profit and Loss
This report provides a comprehensive summary of all the profits and losses your business has incurred during a specific period. It also includes a summary of your operating and non-operating expenses.
To view this report:
- Go to Reports on the left sidebar.
- Navigate to Business Overview reports and select the Profit and Loss report from the list.
Let us take a look at the different sections that this report contains:
Operating Income
Money that you’ve received from all the sales transactions between your customers and your organization.
Cost of Goods Sold
All the costs incurred in purchasing or manufacturing the goods that you sell to your customers.
Operating Expense
These are the expenses incurred in your business. While recording any of your expenses, if you’ve selected an Expense account to track them, it will be displayed here. Some expense accounts in Zoho Books include Advertising & Marketing, Meals and Entertainment, Automobile Expense, and Lodging.
Non Operating Income/Expense
These are income or expenses incurred from activities in an organization that are not part of its business operations. For instance, dividends received by a business and losses from currency exchange are considered non-operating expenses.
Note: You can click on any account in the report to view its detailed summary.
To customize this report:
- Click the Customize icon on the top right of the page.
You will be able to find two sections:
- General
- Show / Hide Columns
General
Under General, you will be able to customize the report based on the following filters:
| Filters | Description |
|---|---|
| Date Range | Select the time period for generating the report. This can be for the current or previous period/year, or you can specify a custom time period of your choice. |
| Report Basis | Select the accounting method for the report. Accrual: Values are generated when the transactions are created. Cash: Values are generated when the cash is received. |
| Filter Accounts | Filter the accounts to be displayed in the report. |
| Compare | You can compare the report with a specific period/year, reporting tags, or projects. |
| Advanced Filters | You can further filter your reports based on additional filters like projects and so on. |
Show/ Hide Columns
In this section, you can choose the columns to be displayed in the report.
- In the Available Columns section, hover over the column you want to add and click the + icon next to it.
- In the Selected Columns section, you can view the existing columns of your report. You can change the order of the selected columns by dragging and dropping.
- Click Run Report to view the report. Click Save as Custom Report to save and view the report later.
Cash Flow Statement
A Cash Flow Statement report is a financial document that provides a detailed overview of a company’s cash inflows and outflows over a specific period. It highlights how cash is generated and used in operating, investing, and financing activities, offering valuable insights into the company’s liquidity and financial health.
To view this report:
- Go to Reports on the left sidebar.
- Navigate to Business Overview reports and select the Cash Flow Statement report from the list.
Let us take a look at the different sections that this report contains:
Cash Flow from Operating Activities
The business activities carried out by an organization are called operating activities. Money generated from these activities is recorded under accounts such as Net Income, Accounts Receivable, and Inventory Asset.
Cash Flow from Investing Activities
As a business, you would look to invest in various assets for smooth functioning. Cash flow resulting from these activities will be displayed here. For example, this includes purchasing stationery and furniture for a new branch of your office.
Cash Flow from Financing Activities
Sometimes, you might want to raise funds for your organization or clear up any pending debts or loans. You can create transactions for any such activities in Zoho Books for them to reflect in your accounts.
Net Change in cash
Total cash flow from operating, investing, and financing activities.
Note: You can click on any account in the report to view its detailed summary.
To customize this report:
- Click the Customize icon on the top right of the page.
You will be able to find two sections:
- General
- Show / Hide Columns
General
Under General, you can customize the report based on the following filters:
| Filters | Description |
|---|---|
| Date Range | Select the time period for generating the report. This can be for the current or previous period/year, or you can specify a custom time period of your choice. |
| Compare | You can compare the report with a specific period/year, reporting tags or projects |
Show/ Hide Columns
In this section, you can choose the columns to be displayed in the report.
- In the Available Columns section, hover over the column you want to add and click the + icon next to it.
- In the Selected Columns section, you can view the existing columns of your report. You can change the order of the selected columns by dragging and dropping.
- Click Run Report to view the report. Click Save as Custom Report to save and view the report later.
Balance Sheet
The balance sheet is a statement that summarizes the total amounts in all accounts, categorized into assets, liabilities, and equity in your organization.
To view this report:
- Go to Reports on the left sidebar.
- Select the Balance Sheet report under the Business Overview section.
Let us take a look at the different accounts that this report contains:
Assets
The total value of all assets in your organization. Some of the asset accounts in Zoho Books include:
- Current Assets
- Cash
- Other Current Assets
Liabilities & Equities
All the liabilities and equities that are recorded in your organization. Some of these accounts include:
- Current Liabilities
- Equities
Note: You can click on any account in the report to view its detailed summary.
To customize this report:
- Click the Customize icon in the top right of the page.
You will be able to find two sections:
- General
- Show / Hide Columns
General
Under General, you can customize the report based on the following filters:
| Filters | Description |
|---|---|
| Date Range | Select the time period for generating the report. This can be for the current or previous period/year, or you can specify a custom time period of your choice. |
| Report Basis | Select the accounting method for the report. Accrual: Values are generated when the transactions are created. Cash: Values are generated when the cash is received. |
| Filter Accounts | Filter the accounts to be displayed in the report. |
| Compare | You can compare the report with a specific period/year, projects or reporting tags. |
Show/ Hide Columns
In this section, you can choose the columns to be displayed in the report.
- In the Available Columns section, hover over the column you want to add and click the + icon next to it.
- In the Selected Columns section, you can view the existing columns of your report. You can change the order of the selected columns by dragging and dropping.
- Click Run Report to view the report. Click Save as Custom Report to save and view the report later.
Business Performance Ratio
The Business Performance Ratio report helps you to evaluate the performance of your business by comparing its different aspects. It helps you gain insights into your company’s financial structure and analyze its financial health.
The Business Performance Ratio report provides you with these eight dedicated ratio analyses to assess your business:
| Ratio | Description |
|---|---|
| Current Ratio | A liquidity ratio that helps a business understand if they will be able to pay their short-term obligations or those due within one year. |
| Gross Profit Ratio | A profitability ratio that helps you understand the operational performance of your business. |
| Debt Ratio | The ratio of total debts to total sales. It shows if a business will be able to pay off its liabilities with its assets. |
| Net Profit Ratio | The remaining profit after all costs have been deducted from sales and taxes. |
| Acid Test Ratio | Helps a business understand if it has sufficient short-term assets to pay off short-term liabilities. |
| Receivable Turnover Ratio | A measure of the efficiency of a business to collect its dues from its customers. |
| Debt To Equity Ratio | A ratio that helps businesses understand the weight of total liabilities and debts against the shareholders’ equity. |
| Operating Cost Ratio | A measure of business management’s efficiency at keeping costs low while generating revenue. |
To view this report:
- Go to Reports on the left sidebar and click the Business Performance Ratio report under the Business Overview section.
- Select a ratio analysis from the dropdown below the organization’s name.
Each of these eight ratio analysis comes with a dedicated dashboard that illustrates the performance of your business over time.
To customize this report:
- Click the Customize icon in the top right of the page.
| Field | Description |
|---|---|
| As of Month/Month Range | An effective date up to which you want to generate the report. |
| Date Range | Select the period for which you want to generate the report. |
- Click Run Report.
Cash Flow Forecasting
You can now predict or estimate the future cash inflows and outflows of a business over a specific period in Zoho Books. Zoho Books forecasts your cash flow based on recurring actuals, such as recurring invoices, bills, journals, and expenses. By forecasting cash flow for your business, you can make informed decisions that support growth.
Note: This feature is available only for certain plans of Zoho Books. Visit the pricing page to check if it’s available in your current plan.
To forecast the cash flow for your organization:
- Go to Reports on the left sidebar.
- Click Cash Flow Forecasting in the Business Overview section.
Note: Zoho Books will forecast the cash flow for the selected Date Range. You can also create a custom Date Range. To do this, click the dropdown next to the Date Range and select Custom.
With the dashboard, you can analyze the cash inflows and outflows of your organization. It displays both the actual balance from the past and the projected balance for the future.
| Field | Description |
|---|---|
| Total Money In | Total amount of cash received by a business over a specific period. |
| Total Money Out | Total amount of cash that a business spends over a specific period. |
| Beginning Actual Balance | The amount of money in an account at the beginning of a specific period. |
| Ending Projected Balance | The forecasted balance at the end of the period. |
The graph in the report will display your organization’s current cash flow (depicted in green) alongside the forecasted cash flow (depicted in orange).
Note: Any change you make to the recurring profiles may not reflect immediately. You will have to click Refresh Report in the top right of the report.
Customize Forecast Inputs
You can choose to generate your cash flow forecast report based on:
- The recurring profiles you want to include or exclude
- Assumptions
Include or Exclude Recurring Profiles
You can include or exclude the recurring profiles that are used to generate the cash flow forecasting report. Here’s how:
- Click Customize Forecast Inputs in the top left corner.
- Click Configure below the recurring profile you wish to include or exclude in your report.
- Select the profile you wish to include in your report from the pop-up that appears. If you don’t want to include it, simply deselect it.
- Click Add Items.
- Click Apply in the Customize Report section.
Your cash flow forecast report will now be generated based on the selected profiles.
Assumptions
In this section, you can add assumptions based on the anticipated transactions in your organization. These assumptions will impact your cash flow report. Let us understand how assumptions work with the help of a scenario.
Scenario: Peter runs an online tutoring business and expects ten new students to enroll at the start of the academic year. He also anticipates new expenses from launching in-demand courses. To account for these, he adds two assumptions: one for the expected enrolment credits and another for the expenses debited from his account. These assumptions will be included in the cash flow forecasting report generated by Zoho Books.
- Click Customize Forecast Inputs in the top left corner.
- Navigate to the Assumptions tab.
- Click + New Assumption.
- Enter the Name and Description for the assumption.
- Select the Account that will be credited or debited for the assumption.
- Enter the Amount and select an option from the dropdown before it, as the amount will be credited or debited based on your choice.
- Select the Mark this as a recurring assumption option if you want the assumption to repeat at regular intervals.
- Select the Assumption Period.
- If it is not a recurring assumption, select the date on which you want to consider the assumption.
- Select the Include this assumption in the cash flow forecast option if you want this assumption to be included in the report.
- Click Save.
Your cash flow forecast report will now be generated based on the assumptions.
Movement of Equity
Equity or net worth is the difference between the value of assets and liabilities in a business, and it follows the accounting equation, Equity = Assets - Liabilities. The Movement of Equity report is a comparative statement that shows the changes in equity of a business for a particular period.
To generate this report:
- Go to Reports on the left sidebar.
- Select the Movement of Equity report under the Business overview section.
The report will consist of the following:
Opening Balance
Money or value of assets recorded at the beginning of a financial period.
Changes in Equity
Changes in equity consist of various components, including Capital Stock, Current Year Earnings, Distributions, Dividends Paid, Drawings, Investments, Opening Balance Offset, Owner’s Equity, and Retained Earnings. These elements collectively determine the Net Changes in Equity.
Note: Clicking Current Year Earnings will take you to the profit and loss report for the selected period, while clicking any other item will take you to the respective transaction report for a detailed view.
Closing Balance
Money or value of assets recorded at the end of a financial period.
To customize this report:
- Click the Customize icon in the top right.
You will be able to find two sections:
- General
- Show / Hide Columns
General
Under General, you will be able to customize the report based on the following filters:
| Filter | Description |
|---|---|
| Date Range | Select the time period for generating the report. This can be for the current or previous period/year, or you can specify a custom time period of your choice. |
| Compare With | You can compare the report with a specific period/year, reporting tags or projects. |
| Report Basis | Set the basis of report. This can be: Accrual: Values generated when the transactions are created. Cash: Values generated when the organisation actually receives the cash. |
| Filter Accounts | Filter the accounts that will be displayed in the report. |
Note: Comparing based on reporting tags and branches allows you to generate equity statements for multiple reporting tags and branches created in the organization, while reporting tags and branches in advanced filters are used solely to filter the generated report.
Show/ Hide Columns
In this section, you can choose the columns to be displayed in the report.
- Click the + icon next to a column to include it in the report.
- Click Run Report to view the report. Click Save as Custom Report to save and view the report later.
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