Zumzum Financials Knowledge Base
Overview:
In Zumzum Financials, the Trial Balance provides essential, real-time, data-driven financial reporting. A key advantage of the system is its date-driven architecture, which eliminates the need for manual transfer or closing entries for previous period balances.
Key Benefits and Calculation
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Real-Time Balances: The system automatically calculates all nominal account balances dynamically, starting from the system’s go-live date right up to the specified End Month and End Year in your report criteria.
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Retained Earnings Calculation: The Retained Earnings/Profit account balance is a cumulative value. It is automatically derived from all recorded revenue and expense transactions across all periods, plus any direct postings made to the nominal account (e.g., via manual journals).
Generating the Trial Balance Report
To generate the Trial Balance Report and view these real-time figures, simply navigate to the Financial Reports tab, select the Trial Balance option, and specify the reporting period. You can then Run the Report to view the results immediately online or Export it to Excel for further analysis and manipulation.
How Are The Balance Calculated on The Zumzum Financials Trial Balance Report?
Zumzum Financials is a date-driven system, with real-time reporting so does not require any specific procedure to transfer the previous period balances to the current period.
The system automatically calculates all nominal account balances based on the transactions posted in the system from the very first day, to the End Month/End Year selected in the report page.
How is The Retained Earnings/Profit Calculated on The Zumzum Financials Trial Balance Report?
The Retained Earnings/Profit value displayed on the Trial Balance Report represents the cumulative total profit or loss the company has generated from its inception up to the report’s End Month/End Year.
Zumzum Financials calculates this balance automatically and dynamically, combining three key components:
1. Prior Period Retained Earnings
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Starts with the Balance in the Retained Earnings/Profit Nominal Account: This is the opening balance, reflecting the total cumulative retained earnings/profit from all fiscal years prior to the current one.
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This also includes any manual adjustments or direct postings (e.g., dividends, prior period adjustments) made directly to the Retained Earnings/Profit nominal account via journals.
2. Current Period Performance
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Adds the Profit/Loss for the Current Fiscal Year: The system dynamically calculates the Net Income/Loss for the current financial year up to the report’s End Date. This value is derived by totaling all revenue and expense transactions recorded in the system for the current fiscal year.
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Formulaically:
(Sum Revenue Accounts – Sum Expense Accounts) = Current Year P\&L
The Cumulative Calculation
The final figure on the Trial Balance Report is the sum of these components, representing the continuous, up-to-date position:
Generate The Trial Balance Report in Zumzum Financials
- Navigate to Financial Reports tab in Zumzum Financials.
- Select Trial Balance option on the Financial Reports Tab.
- Enter the End Month, the report will include all transaction records to the last day of the month you select.
- enter End Year, the report will use this value in order to generate the report based on a date.
- Select Run Report, to run the report and display the results in the web interface.
- Select Export to Excel, to download the report as a spreadsheet
Learn more about running financial reports in Zumzum Financials.