Two documents, two questions
The income statement answers a simple question: is your business making money over a given period? It sets your income against your expenses. The balance sheet answers another question: on a specific date, what does your business own and what does it owe? It describes its position rather than its activity.
m2m.ma presents these two statements from your entries, with no retyping. You can open them whenever you like, without waiting for someone to prepare them for you.
How to use them to run your business
Choose the period to analyse: a month, a quarter or the year. Compare your expenses from one quarter to the next, see whether a rise in sales really shows up in the result, or check what you still have to pay your suppliers. A business can quite easily sell more and earn less: these statements let you notice in time.
The result shown depends on what has been recorded. As long as supplier invoices are missing, your expenses are understated and the result looks better than it is. That is one of the reasons it is useful to enter or scan your expenses as you go.
- Income statement: income, expenses and result for the period
- Balance sheet: assets and liabilities at a given date
- Figures taken from your entries, with no retyping
- Seven classes of accounts followed under the Moroccan chart
A management view, not your official statements
These presentations are for making decisions. They do not replace the statutory financial statements or the tax return package, which remain to be prepared with your chartered accountant. Some items, such as depreciation charges, also require their involvement: the depreciation schedule gives you a basis for tracking, but charges are not posted automatically, and your accountant confirms the useful lives before making the entries.
So do not present these figures to a third party as official accounts without having them reviewed.
Prepare the year-end close with your accountant
Invite your accountant into your workspace: they then work on the same figures as you, not on a copy several weeks old. They can also collect the income statement and fixed assets from your data export, then load them into their own tools to prepare your year-end documents.