To provide weekly accounting tips for entrepreneurs, Kahuna Accounting has launched the first video in the “Accounting Clarity for Entrepreneurs” series. In the first lesson, Kahuna’s Micky Deming shares how to view yearly financials on Xero cloud accounting software. Each week, we’ll feature a how-to video and description based on the questions we get from the many entrepreneurs we work with. Here is the “How to View Yearly Financials on Xero Cloud Software” lesson.
See below for a full transcript of this first tutorial along with large versions of the images used by Micky Deming in the video.
“Hello, thank you for joining me. This is Micky Deming from Kahuna Accounting, and we are starting a series where we answer questions that we receive from our clients.
We get a lot of questions. People want to know “How do I see more?” “How do I understand my numbers better?”
So we are on a mission to simplify accounting for entrepreneurs. The first question we want to tackle is one that has come up a lot recently, and that is “How do I see my entire year of financial information with my income statement?”
So, here’s how you do that!
Inside Xero, with Kahuna Accounting we create financial reports every single month. One of those is the income statement, also known as a P&L (Profit and Loss). The way to find that is to go to the “Reports” tab and click on “Income Statement.”
What we’re looking at right now is a demo company. These are not real financials.
Click on the “Income Statement,” and then you’ll see your income statement, and what that gives you is your income statement for a month. What we’re seeing here is January 2016, but what a lot of people want to know is “how do I see the whole year?” Especially now when you can look at one entire year of 2015. The way to do that is to click on “Compare Periods” of the tab.
Once you do that, then you have the opportunity to pick a date range. Start with December 2015 and compare that with the previous 11 periods. That gives you January through December of 2015, and there you have your entire year right there at a glance of an income statement.
So what does that do? What’s the point of that? How does that help?
There are a million different things that can come from that. The key here is that you’re able to have a summary of the financial performance of your business in a one-year period. Most people don’t take the chance to take that in, or if they do, they only look at one number like revenue for the year.
This gives you a chance to just soak in your entire year of financials and see what stands out. Where did things grow, where did things drop off, where did things spike? Was there a three-month period where things absolutely took off?
Just look at it and see what stands out to you. I think you’ll be blown away by how much value you can have just by taking in something like this.
Hopefully that’s helpful to you. I would love to hear other questions that you have. If you have more, you can email me at Micky@KahunaAccounting.com and we would be happy to help. If you are not in a bookkeeping system and you’ve never seen a report like that in your life, that’s what we do here at Kahuna Accounting, we can make it very, very simple. If you’re interested in that, check out our website KahunaAccounting.com and if that’s something you’d need help with, reach out! We’d love to chat and see how we can help. Thanks for joining us today and have an awesome day. Thank you so much.”