Step by step
Read your profit and loss
The profit and loss says what the business earned and spent over a period, and the balance sheet what it owns and owes. Both come straight from the books, and every figure opens to its postings.
Kila keeps the books for you as it goes: every sale, payment, expense and stock movement posts a journal. Books turns them into “Statements from the double-entry ledger. Every figure comes from posted journals and links to its source.” You do not need to be an accountant to read them.
Open Books
Go to Money › Books. It opens on Statements, at the Profit and loss.
Steps 2 to 4. Choose the period
Tap This month, Last month, 90 days, This year or Custom. The All branches box shows one branch instead.
Choose what to compare with
Compare: previous period puts last month beside this month, with the Change: “Change is this period minus the comparison.” You can compare with last year, both, or nothing.
Read the top half: what you sold and what it cost
Revenue is what you sold, less returns: Total revenue. Cost of sales is what the goods you sold cost you. What is left is Gross profit, with its margin, such as Gross profit (42.6% margin): out of every KES 100 of sales, KES 42.60 is left to run the business.
Read the bottom half: what it cost to run
Expenses are rent, power, salaries, fuel, repairs and the rest: Total expenses. Gross profit less expenses is the Net profit. Beside it, Net profit and Gross margin show the change from the period before, and Where the money went draws it.
Open a line to see what is in it
Tap a line, such as 6060 Repairs and maintenance. Kila opens the account, with its Opening balance, Debits, Credits, Closing balance and Balance today, and every journal that posted to it.
Tap Balance sheet
The balance sheet is a picture of one day, As at today unless you choose another: what the business owns (Total assets), what it owes (Total liabilities) and what is left for the owner (Total equity).
Steps 7 and 8. Read your net worth
Net worth is the “Equity including this year’s earnings”: what would be left if everything owned paid everything owed.
Good to know
Money the owner puts in or takes out is not in profit: see Record owner money. A month’s salaries are in the books once its payroll is approved: see Run payroll.
A figure looks wrong
Link to this section: A figure looks wrongOpen the line and look at its journals: Money › Books › Journals lists each journal with its Source, such as a sale, an expense or a card settlement. If something was posted to the wrong account, your accountant corrects it with a journal: see Post a journal.
You need it on paper
Link to this section: You need it on paperExport CSV saves the statement for a spreadsheet, and Print prints it.
- Post a journal: corrections, for accountants.
- Close a month: so a month’s figures stop changing.
- Prepare the VAT return: VAT on sales and purchases.
- Books: the feature and its plans.
Next: once the month is checked, close it.