Financial statements are the foundation of business decision-making - they summarize performance, position, and cash flow so you can run your company with clarity. Ratals ERP's Admin area provides a set of integrated reports designed for small and mid-sized businesses: an Income Statement (P&L), Balance Sheet, Statement of Owner's Equity, Cash Flow Statement, and Inventory Assets report. Each report is generated from the same journal entries and inventory records, ensuring consistency across statements. This page introduces each report and links you to full tutorials for setup and interpretation.
Table of Contents
The Income Statement (P&L) shows revenue, cost of goods sold, expenses, and net income for a selected period. In Ratals ERP, it's driven by sales, returns, and expense journal entries - clearly showing how sales translate into profit. Use it to track margins, expenses, and profitability trends.
Read the Income Statement details.
The Balance Sheet provides a snapshot of assets, liabilities, and equity at a point in time. Ratals compiles balances from journal entries and inventory valuation, ensuring assets equal liabilities plus equity. Use it to assess liquidity, solvency, and working capital.
Read the Balance Sheet details.
This report tracks changes in equity: contributions, withdrawals, and net income flowing into retained earnings. In Ratals ERP, it pulls directly from equity-related journal entries and links seamlessly to the P&L. Use it to document owner transactions and year-end reconciliations.
Read the Owner's Equity details.
The Cash Flow Statement explains changes in cash by categorizing activities into Operating, Investing, and Financing. Ratals builds the report using the indirect method, starting with net income and adjusting for non-cash items and working capital changes. This provides visibility into liquidity beyond profit.
The Inventory Assets report shows the value of stock on the Balance Sheet, calculated using methods like FIFO or average cost. Ratals breaks down on-hand, allocated, and available quantities, while linking each item's carrying value to receipts, shipments, and landed costs.
Read the Inventory Assets details.
Each of these reports is integrated in Ratals ERP, ensuring figures reconcile across statements. For deeper analysis, follow the links above to individual tutorials.