Learn how Jirav produces your integrated 3-way financial statements: the Income Statement, Balance Sheet, and Cash Flow Statement
Jirav seamlessly produces three-way financial statements for both past and future periods based on your model. These statements comprise the Income Statement, Balance Sheet, and Statement of Cash Flows.
By generating all three statements, you gain comprehensive insights into your business's trajectory, enhancing your confidence in cash management.
The Income Statement reflects your company's profitability by detailing operating revenues and expenses over a designated period. While it offers an analysis of profit or loss during that timeframe, it does not factor in the investments necessary to achieve that profit.
The Balance Sheet delivers a thorough overview of your company's financial standing at a specific moment in time. In addition to profits and losses, it encompasses all assets, liabilities, and equity, adhering to the fundamental equation that assets equal liabilities plus equity.
The Cash Flow Statement monitors the actual cash inflows and outflows. In Jirav, cash flow is derived indirectly from the Income Statement and Balance Sheet.
For example, if you record a sale of $100,000 in January but anticipate collection in the following month (net 30 collection), the $100,000 sale will appear on the Income Statement for January. On the Balance Sheet, Accounts Receivable (AR) will increase by $100,000 in January, followed by a decrease of the same amount in February upon collection. The Cash Flow Statement will reflect a $100,000 increase in cash in February due to the collection of AR.
Click here to learn more about which Jirav settings to configure to start forecasting Cash.