Financial Statements

Two of the six tabs on Sales → Books of Accounts are financial statements rather than books: an Income Statement for a period and a Balance Sheet as at a date.

Both are worked out from the same journal entries as the books of accounts, which is why they always agree with the trial balance for the same dates. There is no separate set of figures.

Who can open them	Owner and Manager. A Cashier is refused
What they cost	Nothing. Not behind an add-on
When the menu item appears	Only once your store is marked BIR-accredited. See BIR compliance

Income Statement

Pick a from/to range. It defaults to the 1st of the month up to today, and it is the same range the General Journal, General Ledger and Cash Disbursements tabs use.

The statement reads top to bottom in this order:

Section	What is in it
REVENUE	One line per revenue account with activity — Sales - Vatable, Sales - VAT-Exempt, Sales - Zero-Rated, Other Income
Total Gross Revenue	Those lines added up
LESS: CONTRA-REVENUE	Sales Discounts, Sales Returns and Allowances, Voided Sales — shown in brackets
Total Contra-Revenue	Those added up
NET REVENUE	Gross revenue less contra-revenue
LESS: COST OF GOODS SOLD	One line, in brackets
GROSS PROFIT	Net revenue less cost of goods sold
LESS: OPERATING EXPENSES	One line per expense account other than COGS — Operating Expenses, Commission Expense, Tips Expense, Cash Over/Short, the two payroll expense accounts, Interest Expense
Total Operating Expenses	Those added up
NET INCOME	Gross profit less operating expenses

The contra-revenue and operating-expenses sections are only printed when there is something in them, and any account whose movement for the period comes to less than one centavo is left off entirely. So a quiet week produces a short statement rather than a page of zeroes.

Five things about these figures

• Revenue excludes VAT. Output VAT is a liability, not income, so a ₱112 vatable sale contributes ₱100 to Sales - Vatable and ₱12 to Output VAT Payable.
• Senior citizen and PWD sales are shown gross, with the discount below. The full pre-discount amount is in Sales - VAT-Exempt and the discount is in Sales Discounts. It nets to what you actually collected, but the two halves are deliberately visible. See Discounts.
• Service charge is not revenue and is not on this statement. Under RA 11360 it belongs to your staff, so it sits as a liability instead. If your revenue looks lower than your takings, this is usually why.
• Voids land in the period they were voided in. A January sale voided in February leaves January untouched and appears in February under Voided Sales. That keeps a sealed month from being restated after the fact.
• A drawer overage reduces expenses. Cash Over/Short is an expense account, so a shortage is a cost and an overage shows as a negative one. See Cash over and short.

This is not the same as the Profit & Loss report

Kassly has two profit figures, and they are built for different questions.

	Income Statement	Profit & Loss report
Where	Sales → Books of Accounts	Sales → Profit & Loss
Built for	Your accountant and the BIR	Running the business
Cost	Free	Needs the Business Reports add-on (₱400 per branch each month)
Branch filter	No — whole store only	Yes
Presentation	By account code, in books-of-accounts form	Grouped for reading, with extra figures like service charge shown for information

They are designed to tie to each other on the same dates. If they disagree by more than rounding, that is worth a support ticket rather than a workaround.

Balance Sheet

Pick a single As of date. It defaults to today, and it has its own date independent of the from/to range.

Section	What is in it
ASSETS	One row per asset account with a balance — code, name, amount
TOTAL ASSETS	Those added up
LIABILITIES	One row per liability account with a balance
TOTAL LIABILITIES	Those added up
EQUITY	Two lines: Owner's Equity and Retained Earnings
TOTAL EQUITY	The two added up
TOTAL LIABILITIES & EQUITY	Liabilities plus equity

Underneath is a verdict:

BALANCED — Assets equal Liabilities + Equity.

or, if the two sides differ by more than a centavo, NOT BALANCED with the peso difference. On screen it is a green Balanced or a red Not balanced badge. A section with nothing in it says No asset balances. or No liability balances.

How the two equity lines are arrived at

This is the part people ask about.

Owner's Equity is the balance of account 3000. It moves when cash goes into or out of the drawer outside of trading — opening floats, Cash In classified as Owner's Capital, and Cash Out withdrawals. It is not a figure you set.

Retained Earnings is not stored either. It is computed on the spot as all revenue, less all contra-revenue, less all expenses, from your very first recorded transaction up to the as-of date.

There is no year-end close. Retained earnings run cumulatively from the beginning of your Kassly data and are never rolled over into a new year. If your accountant expects prior-year profit to sit separately from current-year profit, they will have to split it themselves using two income statements.

Downloading and printing

Both statements have Download CSV and Download PDF, using whichever dates you have set.

The CSV writes a Section column — Revenue, Contra-Revenue, COGS, Operating Expenses, or Assets, Liabilities, Equity — next to the account code, name and amount, with the subtotal and total rows in line. Filenames carry the period: income-statement-2026-09-01_to_2026-09-10.csv, balance-sheet-2026-09-10.pdf.

Each PDF opens with your store name, address, TIN, the statement title, the period, and the time it was generated. A blank TIN in your store profile means that line simply does not print, so fill it in before printing for anyone official. See Store settings.

What these statements do not include

Read this section before handing either statement to a bank, a lender, or the BIR as a finished financial statement. Both are honest summaries of what Kassly has recorded. Neither is a full set of audited financial statements.

Missing	What it means for you
No fixed assets	There is no account for equipment, vehicles, furniture, leasehold improvements or accumulated depreciation. Your ₱80,000 oven is not on the balance sheet, and no depreciation is charged against profit
No prepayments or accruals	Rent paid in advance is expensed the day it is approved. Nothing is spread across the months it covers
No current versus non-current split	Assets and liabilities are listed flat, in code order. There is no working-capital presentation
No cash flow statement	Only these two statements are produced. There is no statement of cash flows and no statement of changes in equity
No input VAT	Purchases are capitalised at their full value, VAT included, so there is no creditable input VAT on the balance sheet. Your VAT position has to come from your supplier invoices
No opening balances	The statements start at your first Kassly transaction. Stock, cash, debts and capital that existed before then are absent
Whole store only	Neither statement can be filtered to one branch
Nothing is audited or certified	Kassly generates the documents. It does not sign them, and it is not an accountant

If you need audited financial statements for a filing, a loan or a permit, these are the inputs your accountant works from, not the output they submit. Export the CSVs and let them take it from there.