This article covers four key financial statements that summarize your company's financial activity and status prescribed by Generally Accepted Accounting Principles (GAAP) and Financial Accounting Standards Board (FASB). See Closing books as part of year end procedures and Year end procedures for additional resources to help you organize your year end tasks.
Profit & Loss also known as Income Statement summarizes your income and expenses so you know if the business is operating at a profit or a loss. It shows subtotals for each income and expense account and the last line shows your net income or loss.
Run Profit & Loss report:
Balance Sheet summarizes your company's financial position. It shows the value of the company's assets less its liabilities and equity. It is called balance sheet because the assets should stay equal (or balanced) to the sum of the liabilities and equities.
Run Balance Sheet report:
Statement of Cash Flows also known as The Statement of Changes in Financial Position or The Statement of Sources and Uses utilizes accrual based P&L and accrual based B/S to show how and why your cash position has changed over a period of time.
It calculates Ending Cash from:
Run Statement of Cash flows report:
Statement of Changes in Retained Earnings shows changes in Retained Earnings from one period to another.
QuickBooks Desktop do not produce this statement, but you can run a similar report: