Prepare GAAP style Income Statement and Balance Sheet reports
To prepare GAAP style Income Statements and Balance Sheet reports, ensure account types are correct, then customize the report layouts to suit the GAAP format.
Change some account types in your chart of accounts
You'll need to change the account types of some accounts so that they are GAAP compliant.
- Go to Settings, then click General Settings.
- Under Reports, click Chart of Accounts.
Review all accounts with the account type Expense.
- Where the account represents an overhead, edit the account to change the account type to Overhead.
- For the following accounts, if they don't already have this account type, edit the account to change the account type to Other Income:
- Interest Income
- Other Revenue
Customize Income Statement and Balance Sheet report layouts
Customize the Income Statement and Balance Sheet reports to suit the GAAP format:
- Move tax accounts to the Income Tax group
- Move accounts that should be classified as Other Comprehensive Income into the Other Comprehensive Income group.