There are 2 accounting reports available in the Countingup app:
- Profit and loss
- Balance sheet
These are the category types shown in each:
Profit and loss
- Income
- Expense
Balance sheet
- Asset
- Equity
- Liability
Profit and loss
What is it?
A report that shows how much your business has generated in income and how much you’ve spent over a given period of time.
What does it show?
It shows a breakdown of your business income from sales, interest and any other income, and a breakdown of business expenses. Expenses might be directly linked to your sales, such as buying goods to sell to your customers, or they might be more general administrative expenses, such as buying stationery or paying your accountant.
Your operating profit is calculated by subtracting your total expenses from your total income.
Why is it important?
For limited companies:
You can use this information to help you prepare and file your annual accounts with Companies House if needed and to better understand your income and spending and how your tax is calculated. The report highlights the expenses that are not eligible for tax relief and adds this value to your operating profit to give you the amount you will pay tax on (taxable profit).
You won't find anything that your business owns or owes on the Profit and loss report. These are referred to as 'assets’ and ‘liabilities' and are shown on your Balance sheet report.
For sole traders:
You can use the Profit and loss report to better understand your income and spending and how your tax is calculated. It highlights the expenses that are not eligible for tax relief and adds this value to your operating profit to give you the amount you will pay tax on (taxable profit).
You won't find anything that your business owns or owes on the Profit and loss report. These are referred to as 'assets’ and ‘liabilities' and are shown on your Balance sheet.
Balance sheet
What is it?
A report that shows what your business owns (assets) and what your business owes (liabilities) at a given point in time.
What does it show?
It shows the breakdown of your business assets (such as equipment your business owns or the balance in your Countingup account), your business liabilities (such as any tax due to HMRC or loans you’ll need to pay back) and the value of your business (equity).
Why is it important?
For limited companies
You can use this information to help you prepare and file your annual accounts with Companies House. You can work out how much money you can take out of your business (e.g. cash, dividends or a salary). The amount your business is worth is used to help you secure funding (such as a loan or a mortgage), or when selling your business.
For sole traders
You can use this information to help you work out how much money you can take out of your business (e.g. cash or a salary). The amount your business is worth is used to help you secure funding (such as a loan or a mortgage), or when selling your business.
How to find accounting reports in the app?
- Open the Countingup app
- Tap the 'Accounting' tab at the bottom of the screen