IN THIS SECTION

• Financials
  • Trial Balance
  • Balance Sheet
  • Profit and Loss
  • Cashflow
  • KPI
    • Built in KPI's Explained
    • Customising the KPI Report
• Sales & Purchasing
  • Sales by Customer Report
  • Purchases By Supplier Report
  • A/R Ageing Report
  • A/P Ageing Report

Joiin has a number of reports, grouped into two main categories: Financials and Sales & Purchasing.  For more information on how to run reports see the Running Reports section.

Financials

The key financial reports are reports that are fundamental to financial reporting in any company.  They are used as either official financial statements or critical to the day-to-day financial accounting processes in a company.

Trial Balance

The Trial Balance report shows the YTD (Year-to-Date) balance at a particular point in time of all the Accounts from the General Ledger.  The balances can either be displayed in Debit and Credit columns or in a single column.  Use the Show as debit and credit toggle to switch between the two view.

In the two-column view, Expense, Cost and Asset accounts will show balances in the Debit column and Income, Revenue, Liabilities and Equity will show balances in the Credit column.  In a double-entry bookkeeping the Debit and Credit column totals should match. See this article for more information on the Joiin Account types.

In the single column view the Credit and Debit balances are added together - as per the accounting norm, all debit balances are treated as positive and all credit balances are treated as negative.

Use the Account Type toggle to add an Account Type column showing each account's Joiin account type, for example Cash & Equivalent, Fixed Asset or Overheads.

You can sort the Trial Balance by clicking the column headings:

• Account Type: sorts balance sheet accounts first, then profit and loss accounts, grouped by account type and then by account. Click again to reverse the order.
• Account: sorts by account, as displayed (code and/or name). Click again to reverse the order.

Until you click a heading, accounts are sorted using the Sort By setting in Report Settings. The Account Type column is included when you download the report to Excel.

A message will display if the report does not balance. For more information on this see the Balancing Indicator section.

NOTE: On the Trial Balance report, a message will be displayed if the report does not balance. For more information on this see the Balancing Indicator section.

Balance Sheet

The Balance Sheet report shows a company's assets, liabilities and shareholders' equity at a specific point in time, in Joiin, that is the month-end amount of the 'end date' month. It is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders.

The balance sheet adheres to the following equation (for US GAAP):

Assets = Liabilities + Shareholders' Equity (A = L + E)

i.e. a company has to pay for all the things it owns (assets) by either borrowing money (taking on liabilities) or taking it from investors (issuing shareholders' equity).

The accounts that appear on the Balance Sheet are defined by the account classifications - see this article for more information.

You can select from two different Layouts using the Layouts icon:

Balance Sheet (GAAP)

Follows US GAAP standard format for a Balance Sheet which is A = L + E.

Balance Sheet (IFRS)

Follows IFRS standard format of a Balance Sheet which is A - L = E. NOTE: This is also the format for UK GAAP.

NOTE: On the Balance Sheet report, a message will be displayed if the report does not balance. For more information on this see the Balancing Indicator section.

Profit and Loss

The Profit and Loss report (P&L) summarizes the revenues, costs and expenses incurred during a specific period of time. You can select from two different Layouts using the Layouts icon:

Profit & Loss

Standard Profit & Loss (Income) Statement layout out sales, cost of sales and expenses.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization format - layout sales and expenses and then adding in Interest, Tax etc. afterwards.

The accounts that appear on the P&L are defined by the account classifications - see this article for more information.

Cashflow

For more information on the Cashflow Report see this article.

KPI

The Key Performance Indicator (KPI) report contains a number of key financial performance measures for a particular period which help to identify how well the company is performing.  It also includes a chart showing Revenue vs Expenses.

The KPI report will also include any Non-Financial Data items that you have imported and any KPIs you have created through the KPI Library page.

Like all financial reports, the KPI report can be customised - you can hide KPI's you don't want to see and create new KPI's - see below for more information.

The KPI's appearing on this report are available when building Custom Layout formulas.

Built in KPI's Explained

A full description of each part of the report follows.

Total Revenue

The total of the Revenue accounts on the Profit & Loss Report for the period, net of tax. It does not include Other Income.

NOTE: Total Revenue comes from your ledger accounts, so it includes cash sales, accrued and deferred income adjustments and any other journals posted to Revenue accounts. It will not necessarily match the total on the Sales by 
Customer report, which only includes approved invoices and credit notes.

Total Expenses

Total expenses is the total of all the Expenses that appear on the Profit & Losss Report (Income Statement).

Gross Profit Margin

The gross profit margin looks at cost of goods sold as a percentage of sales.   This ratio looks at how well a company controls the cost of its inventory and the manufacturing of its products and subsequently pass on the costs to its customers.  The larger the gross profit margin, the better for the company.

Operating Profit Margin

Operating profit is a company's profit after subtracting operating expenses and the costs of running the business from total revenue. The operating profit margin looks at operating profit as a percentage of sales. The operating profit margin ratio is a measure of overall operating efficiency, incorporating all of the expenses of ordinary, daily business activity.

Net Profit Margin

Net profit margin, or net margin, is equal to net income or profits divided by total revenue, and represents how much profit each dollar of sales generates.

Return on Equity

Return on equity (ROE) is a measure of financial performance calculated by dividing annualised* net profit by shareholders' equity.  Because shareholders' equity is equal to a company’s assets minus its debt, ROE could be thought of as the return on net assets.

Activity Ratio

Activity ratios measure a firm's ability to convert different accounts within its balance sheets into cash or sales. Activity ratios measure the relative efficiency of a firm based on its use of its assets, leverage or other such balance sheet items and are important in determining whether a company's management is doing a good enough job of generating revenues and cash from its resources.

AP/AR Outstanding

The AP Outstanding and AR Outstanding figures reflect the amounts shown on the Balance Sheet accounts 'Accounts Payable' and 'Accounts Receivable' respectively, ensure these account names are used for accounts you would like to map to these KPIs. 

NOTE: These are the balances of the ledger accounts on the Balance Sheet. They may not match the totals on the A/R and A/P Ageing reports, which are built from individual unpaid invoices and bills - for example because of journals posted directly to these accounts, or differences in how FX is converted (see Managing FX).

Days Sales Outstanding

Days Sales Outstanding (also called DSO and Days Receivables) estimates the average number of days it takes to collect payment from customers. Joiin calculates it as:

DSO = AR Outstanding x Number of days in the period / Total Revenue

NOTE: Joiin's DSO divides by Total Revenue from the Profit & Loss, not by invoiced credit sales. This can give a different result from a DSO calculated by your accounting software or from the Sales by Customer report, because:


• Total Revenue includes cash sales and accrued and deferred income, which are not part of AR Outstanding.
• Total Revenue is net of tax, while AR Outstanding is usually the gross amount owed, including VAT/GST/sales tax. In countries with sales tax this makes DSO higher.


If you need DSO on a different basis, you can create your own KPI in the KPI Library or a Custom Layout formula - for example by dividing by a group that contains only the revenue accounts you invoice through.

Working Capital

Working capital is a basic measure of liquidity that shows the ability of a company to meet its current financial obligations and remain solvent. You calculate it by taking the company’s current assets and subtracting its current liabilities.

Working Capital Ratio

The working capital ratio is simply the company’s current assets divided by its current liabilities (this is also know as the current ratio).  Working capital ratios lower than 1 mean that the company has negative working capital. In other words, the company has more current liabilities than current assets. This signals that the company will likely experience liquidity problems in the near future. A working capital ratio of about 1.5 to 2 is considered good. It shows that the company is financially healthy and efficiently managing its resources. A value higher than 2 is not necessarily better. This demonstrates that the company is likely not generating as much revenue as possible by intelligently employing all of its assets.

Net Working Capital to Total Assets

Net Working Capital to Total Asset ratio is a liquidity ratio that expresses the net current assets or working capital of a company as a percentage of its total assets.`,

* Annualised profit is calculated by taking the profit for the reporting period, dividing it by the number of days in the reporting period, and multiplying that by the number of days in the year.

Customising the KPI Report

The KPI Report, like all other financial reports can be customised. For more information on this see the Layouts article.

The KPIs that appear on the report are created from custom layout formulas and group totals - these formulas and totals combine various different account totals and perform calculations to get the KPI result. When you create a custom version of the KPI report you will see all the groups and formulas that make it up - some of them will be hidden. By creating new groups and formulas you can create your own KPIs.

You can also create KPIs directly through the KPI Library page.

Sales & Purchasing

The Sales and Purchasing reports are reports that use Invoice and Bill/Purchase Order data from Xero/QuickBooks/Sage.

NOTE: Because these reports are built from invoices and bills rather than ledger accounts, their totals may not match the Financial reports. See the Sales by Customer Report and Managing FX articles for the reasons.

Sales by Customer Report

The Sales by Customer Report shows Sales (from invoices and credit notes) grouped by customer. For more information see the Sales by Customer Report article.

Purchases By Supplier Report

The Purchases by Supplier Report shows Purchases (from bills and credit notes) grouped by supplier. For more information see the Purchases by Supplier Report article.

A/R Ageing Report

Accounts Receivable Ageing Report shows the total of invoice amounts due by customer broken down by age (which is based on the invoice due date).  For more information see the A/R Ageing Report section.

A/P Ageing Report

Accounts Payable Ageing Report shows the total of bills due by supplier broken down by age (which is based on the bill due date).  For more information see the A/P Ageing Report section.