Business Overview
The Business Overview section consists of the following reports:
- Profit and Loss
- Cash Flow Statement
- Cash Flow Forecasting
- Balance Sheet
- Business Performance Ratio
- Movement of Equity
Profit and Loss
This report is a comprehensive summary of all the profits and losses that you’ve made in your business during a specific period of time. It also contains the summary of your operating and non-operating expenses.
To view this report:
- Go to Reports > Profit and Loss.
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 buying 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’ll 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 expense are incurred by activities in an organization which are not part of its business operations.
For example, the dividends a business has received. Also, a non-operating expense would include loss in a currency exchange.
Note:
- You can click any account in the report to view it’s drill down summary.
- All the values are generated based on the time period that you’ve set.
To customize this report:
- Go to Reports > Profit and Loss.
- Click Customize Report in the top of the page.
You can customize the report based on the following filters:
Filters | Description |
---|---|
Date Options | Select the time period for which you want to generate the report. This can be for a current or previous period/year. You can even set a custom time period of your own. |
Compare With | Compare the report with previous period(s) or year(s). |
Report Basis | Accural: Values are generated when the transactions are created. Cash: Values are generated when they receive the cash. |
Year To Date | Compare this report with the report generated from the beginning of the financial year to this date. |
Reporting Tags | Filter your reports based on the reporting tags that you have created. |
- Click Run Report.
Cash Flow Statement
This report contains all the money that is flowing in and out of your organization from different sources like operations, investments and financing.
To view this report:
- Go to Reports > Cash Flow Statement.
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 that is coming in from such activities is recorded under accounts such as Net Income, Accounts Receivable and Inventory Asset.
Click any of the sub-fields to view a drill down of any account.
Cash Flow from Investing Activities
As a business, you would be looking to invest in various assets for its smooth functioning. Cash flow resulting from such activities will be displayed here.
For example, buying stationery, 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.
In Zoho Books, you can record such transactions in the Banking module under a bank.
Net Change in cash
Sum of the cash flow from operating, investing and financing activities.
Note:
You can click any account to view it’s drill down summary.
To customize this report:
- Go to Reports > Cash Flow Statement.
- Click Customize Report in the top of the page.
You can customize the report based on the following filters:
Filters | Description |
---|---|
Date Options | Select the time period for which you want to generate the report. This can be for a current or previous period/year. You can even set a custom time period of your own. |
Compare With | Compare the report with previous period(s) or year(s). |
Year To Date | Compare this report with the report generated from the beginning of the financial year to this date. |
Reporting Tags | Filter your reports based on the reporting tags that you have created. |
- Click Run Report.
Cash Flow Forecasting
You can now forecast the money coming in and going out of your organization 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 business decisions to grow your business.
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.
Zoho Books will forecast the cash flow for the period mentioned below the report name. You can change the period by clicking the dropdown on the top-left corner and selecting your preferred period.
Pro Tip: If you do not find the period you’re looking for, you can forecast the cash flow for a custom period by clicking Custom from the drop-down in the top left corner.
The dashboard helps you analyze the cash flowing in and out of your organization, the actual balance of the past and the projected balance for the future.
Section | Description |
---|---|
Total Money In | The cash earned through your sales transactions. |
Total Money Out | The cash spent on your purchase transactions. |
Beginning Actual Balance | The balance of your actuals at the start of the period. |
Ending Projected Balance | The forecasted balance at the end of the period. |
The graph will show your organization’s current cash flow (depicted in green) and 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 below the report name to update the report with the latest values.
Customize Forecast Inputs
You can choose to generate your cash flow forecast report based on:
- The recurring profiles you want to include or exclude
- By adding assumptions
Include Recurring Profiles
In this section, you can select the recurring profiles you want to consider while forecasting your cash flow.
- Click Customize Forecast Inputs in the top left corner.
- Click Configure under the recurring profile.
- Select the profile you want to include in this report to forecast the cash flow.
- Click Add Items.
- Click Apply.
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 transactions that you predict to happen in your organization. These assumptions will influence your cash flow report.
Let us understand how assumptions work with the help of a scenario.
Scenario: Peter runs an online tutoring business that invoices his clients for their courses. During the start of the academic year, he expects ten new students to enroll in his course. However, he also expects to incur new expenses while introducing new courses in demand. Peter wants to factor these predicted enrollments and expenses into his cash flow report. Peter adds two assumptions - one for the amount of the enrollments he expects to be credited and the other for the amount of expenses debited to his bank or cash account. This assumption will now be factored in when Zoho books generates the cash flow forecasting reports.
- Click Customize Forecast Inputs in the top left corner and click Assumptions.
- Click +Add 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.
The amount for the assumption will be credited to or debited from the Cash flow Assumption Adjustment account.
- Select Mark this as a recurring assumption if you want the assumption to repeat at regular intervals. Select the Frequency and enter the Assumption Period.
- If it is not a recurring assumption, select the date on which you want to consider the assumption.
- Select Include this assumption in the cash flow forecast 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.
Balance Sheet
The balance sheet is a statement that summarizes the balance of money in all the accounts under various categories like assets, liabilities and equities in your organization.
To view this report:
- Go to Reports > Balance Sheet.
Let us take a look at the different accounts that this report contains:
Assets
Value of all the 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 any account to view its drill-down summary.
To customize this report:
- Go to Reports > Balance Sheet.
- Click Customize Report in the top of the page.
You can customize the report based on the following flters:
Filters | Description |
---|---|
Date Options | Generate a report for ever month year and other time intervals or set a custom time period of your own. |
Compare With | Compare the report with previous period(s) or year(s). |
Report Basis | Accural: Values are generated when the transactions are created. Cash: Values are generated when they receive the cash. |
Reporting Tags | Filter your reports based on the reporting tags that you have created. |
- Click Run Report.
Business Performance Ratio
The Business Performance Ratio report helps you to evaluate the performance of your business by comparing different aspects of a business. These reports help you to 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/Quick 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 the business performance ratio report:
- Go to Reports in the left sidebar and click 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:
- Go to Reports in the left sidebar and click the Business Performance Ratio report under the Business Overview section.
- Select a ratio analysis from the dropdown below your organization name.
- Click Customize Report in the top bar.
Field | Description |
---|---|
Date Range | Select the period for which you want to generate the report. |
As of date | An effective date until when you want to generate the report. |
- Click Run Report.
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. Also, you can customize the report and compare the changes in equity based on reporting tags, branches, period, or year. To view the report:
- Go to the Reports module.
- Select Movement of Equity report under Business Overview reports**.**
- Select the period for which you want to view the report.
The report will consist:
- Opening Balance
- Changes in Equity which further comprises of the Capital Stock**,** Current Year Earnings, Distributions, Dividends Paid, Drawings, Investments, Opening Balance Offset, Owner’s Equity and Retained Earnings which will give the Net Changes in Equity.
Note: Clicking Current Year Earnings will take you to the Profit and Loss report of the particular period and clicking any other item will take you to the respective transaction report to view a drill down.
- Closing Balance
You will then be able to customize and perform other actions on the report.
Customize Report
You can customize the report based on various fields and filters. To customize:
- Go to the Movement of Equity report.
- Click Customise Report in the top bar.
Here, you will be able to find two options,
General
Under General, you will be able to customize based on the following:
Basic Filters
Filter | Description |
---|---|
Date Range | Set a date range for which you would like to customize the report. |
Report Basis | Set the basis of report. This can be: Accrual: Values generated when the transactions are created. Cash: Values generated when the organization actually receives the cash. |
Filter Accounts | Filter accounts that you’d like to include. This can be: 1. All accounts 2. Accounts with transactions 3. Accounts without zero balance |
Compare Filters
-
Compare Based on Period/Year
Compare the report with Previous Years’ or Previous Periods’values.
The **Previous Year** option will let you view the report as a comparative statement between multiple years. The **Previous Period** option will let you view the report as a comparative statement for multiple periods based on the Date Range you've chosen above.
-
Compare Based on Reporting Tags
Compare the movement of equity based on various reporting tags you have created in your organization.
-
Compare Based on Branches
Compare the movement of equity based on various branches you have created in your organization.
Advanced Filters
Filter the report based on projects, branches and reporting tags using Advanced Filters. To do this:
-
Click Add Filters.
-
Select a Field such as a project or branch or reporting tag or all of it
-
Select a Comparator.
-
Select name of the field accordingly.
Note: Comparing based on reporting tags and comparing based on branches will let you compare and generate the equity statements between multiple reporting tags and multiple branches created in the organization, whereas reporting tag and branches in advanced filters are used just to filter the generated report.
Show/ Hide Columns
This option will allow you to choose the columns to be displayed in the report. Click the + icon near a column name to include it in the report.
- Click Run Report to view the report or Save as Custom Report. Learn more about Custom Reports.
Other Actions
Schedule report
You can schedule your Movement of Equity report to be generated on a provided Frequency. The generated report can be sent to an email address of your choice. Learn more about Scheduling Reports.
Add Temporary Notes
Click the + Add Temporary Note option to enter notes that appear at the footer of your report.
Note: The temporary note that has been added will not be available when the report has been customized and saved as a custom report.
Share Report
To share the report:
- Click the Share icon in the top right corner.
- Select the User and the Permissions you want to provide.
- Click Share.
The report will be shared with the user. Read more about configuring role based access and sharing reports.
Print Report
Print your report by clicking the Print icon at the top right corner and configure the Print Preference for this report, if required.
Insight: You can either configure the print preference for each report or configure the report layout that will apply to all the reports in your organization.
Export Report
Download this report by clicking the Export As option and selecting the file format in which you want to download.