# Trial balance, profit and loss, balance sheet, tax

> The four statements built from your ledger: what each adds up, and what to check before you hand them to your accountant.

*Section: Accounting · Updated: 2026-10-19 · Needs the plan feature: accounting*

By the end you will know the four statements under **Accounting**: what each one adds up, and what to check before you hand them to your accountant.

> **Note:** These statements are built from the ledger's posted journal entries only. See [The chart of accounts and journal entries](/app/help/chart-of-accounts-and-journal) for what reaches the ledger and what doesn't. For your shop's everyday profit, **Reports › Profit and Loss** works from your sales, purchases and expenses directly.

All four are under **Accounting** in the sidebar. Each has a date range: pick **From** and **To**, then **Apply** or **Refresh**.

## Trial Balance

**[Trial Balance](/app/accounting-v2/reports/trial-balance)** lists each ledger account with the total of its **Debit** and **Credit** lines in the period. The two totals at the bottom must be equal. **Type** shows one kind of account only.

![Trial Balance for 16/10/2026 to 19/10/2026: Code, Name, Type, Debit and Credit for Cash, Accounts Receivable, Inventory, Accounts Payable, Owner's capital, Sales Revenue, Sales Returns and Expenses, a first row without a code, and a Total of 1,357.36 on both sides.](https://armpos.online/storage/help/a1493e38d2-financial-statements-1-trial-balance.webp)
*Equal totals mean every entry balanced. The row without a code holds expenses paid from no account.*

An expense recorded without an account has nowhere to take the money from, so its other half shows in a row without a code. Choose an account on expenses to avoid it. The Total row adds up the page you see: show **All** rows if you have more than 10 accounts.

## Profit & Loss

**[Profit & Loss](/app/accounting-v2/reports/profit-and-loss)** sets your **Income** accounts against your **Expense** accounts for the period and gives the **Net Profit**.

![Profit & Loss for 16/10/2026 to 19/10/2026: Income 421.05, Expense 35.00 and Net Profit 386.05, then Sales Revenue 421.05, Sales Returns -17.98 and Expenses 35.00, Total Income, Total Expense and Net Profit.](https://armpos.online/storage/help/f98884acf0-financial-statements-2-profit-and-loss.webp)
*Check the Sales Returns line: today the totals leave it out, so take it off yourself.*

Two things to know before you rely on it:

- **Sales Returns** shows as a minus line but isn't taken off **Total Income** and **Net Profit** yet. Subtract it yourself.
- The cost of the goods you sold isn't in the ledger, so this net profit is before that cost. **Reports › Profit and Loss** takes it off.

## Balance Sheet

**[Balance Sheet](/app/accounting-v2/reports/balance-sheet)** adds up your **Assets**, **Liabilities** and **Equity** on a day: pick it in **As of** and click **Refresh**. **Check** shows Assets minus Liabilities and Equity.

![Balance Sheet: As of and Refresh, then Assets 1,390.84, Liabilities 430.16, Equity 100.00, and Check 860.68 in an orange box.](https://armpos.online/storage/help/32e3a6b2eb-financial-statements-3-balance-sheet.webp)
*Check isn't zero here: the profit made so far isn't added to equity on this page.*

This page doesn't add the profit made so far to equity, so **Check** shows roughly that profit rather than 0.

## Tax Summary Report

**[Tax Summary Report](/app/accounting-v2/reports/tax-report)** works from your sales and purchases themselves, not the ledger:

- **Sales Tax (Output Tax)**: **Total Sales**, minus **Sale Returns**, gives **Net Sales** and the **Output Tax** you charged.
- **Purchase Tax (Input Tax)**: the same for what you bought, with the **Input Tax** you paid.
- **Net Tax**: output tax minus input tax, either **Tax payable to authorities** or **Tax refund expected**.

![Tax Summary Report for 16/10/2026 to 19/10/2026: Sales Tax (Output Tax) with Total Sales 421.05, Sale Returns -17.98, Net Sales 403.07 and Output Tax 0.00; Purchase Tax (Input Tax) with Total Purchases 430.16, Purchase Returns -11.64, Net Purchases 418.52 and Input Tax 0.00; and Net Tax 0.00, Tax payable to authorities.](https://armpos.online/storage/help/431e2dc612-financial-statements-4-tax.webp)
*Tax comes from each sale's and purchase's order tax. Pending sales aren't counted.*

It opens on the current month. It counts the order tax on each sale and purchase, and leaves out pending ones.

## What's next

Correct the ledger with your own entries: [The chart of accounts and journal entries](/app/help/chart-of-accounts-and-journal).