You can also view the financial balance in the Company > Balance tab. In this report, the system groups the company’s funds by different currencies and shows the total amount in the main currency across all accounts. The Balance report displays the company’s Assets, Liabilities, and Equity status, providing a detailed understanding of the financial position.

This means that everything a business owns (assets) is funded either through debt (liabilities) or through owner contributions and earned profits (equity).

• Assets

These are all the things the company owns: cash and bank accounts, current inventory, equipment, real estate, etc. In the list, assets are organized by how easily they can be converted into cash — from the quickest (cash) to the slowest (e.g., real estate).

• Liabilities

These are the company’s debts: bills to be paid, loans, or other financial obligations. They are listed in order of repayment terms — from the shortest (current liabilities) to the longest (long-term loans).

• Equity

This is the portion of the business that belongs to its owners. Equity can include money invested by the owners, earned profits, as well as common stock or other forms of investment.

The rules for preparing the balance sheet are as follows:

• All assets must be recorded on the debit side.

• All liabilities must be recorded on the credit side.

• All revenues or profits must be recorded on the credit side.

• All expenses must be recorded on the debit side.

The sum of Assets and Liabilities should match.

Based on the Chart of Accounts, the system automates and creates all journal entries independently using the P&L accounts.

Therefore, it is essential to first check whether the Chart of Accounts is filled in.