Learn how Jirav produces your integrated 3 way financial statements, Income Statement, Balance Sheet & Cash Flow
Jirav automatically generates 3-way financial statements for historical and future periods from your model, including Income Statement, Balance Sheet, and Statement of Cash Flows.
Generating all 3 statements provides the most insight into where your business is heading and also provides you with confidence in your cash position.
The Income Statement illustrates the profitability of your company by detailing the operating revenue & expenses for a period of time period. While the Income Statement provides you with an analysis of periodic profit or less, it does not take into account the investment required to generate that profit.
The Balance Sheet provides a holistic view of your company's financial position as of a specific point in time. In addition to profits and/or losses, the balance sheet includes all of the company's assets, liabilities and equity with assets always being equal to liabilities+equity.
The Cash Flow reflects the actual cash inflows and outflows of the company. In Jirav the Cash Flow is calculated indirectly from the Income Statement & Balance Sheet.
For example, let's say you sell $100,000 in January, but you don't expect to collect that until the following month (net 30 collection). On the Income Statement, you would just see the $100,000 sale in January. On the Balance Sheet you would see an increase in Accounts Receivable in January of $100,000, then a decrease of $100,000 in February when the sale is collected. Finally, on the Cash Flow, we would see a $100,000 increase in Cash in February due to the AR collection.