Statement line items

Every line on the bluprnts profit and loss, balance sheet and cash flow statement, what drives it, and what it's called under each reporting standard.

Every line across the three statements, and the driver behind it. Line names change with the view and the reporting standard — see The financial statements.

Every line in the app also carries its own explanation: select the (i) beside it.

Profit and loss#

Line	Driven by
Revenue / Sales / Revenue (US GAAP)	Sales, on their invoice date
Cost of Sales / Cost of those sales / Cost of revenue	Production, storage & distribution and shipping costs on the products sold
Gross Profit	Revenue less cost of sales
Operating Expenses / Running costs	Costs, plus payroll and its on-costs
EBITDA	Gross profit less operating expenses. Not presented under US GAAP
Depreciation / Depreciation and amortization	Capital expenditure written down over its life
Operating Profit / Operating income	EBITDA less depreciation
Net Interest / Interest income (expense), net	Interest earned on cash, less interest paid on loans and overdraft
Profit before Tax / Income before income taxes	Operating profit after interest
Tax / Provision for income taxes	Corporation tax on the profit
Profit after Tax / Net income	The bottom line

Balance sheet#

Line	Driven by
Cash at bank / Cash in the bank / Cash and cash equivalents	The closing bank balance. The one figure the balance sheet and cash flow must agree on
Trade debtors / Money owed to you / Accounts receivable	Invoiced sales not yet paid, per your debtor terms
VAT receivable	VAT reclaimable
Fixed assets / Equipment and property / Property, plant and equipment, net	Capital expenditure, less depreciation to date
Trade creditors / Money you owe / Accounts payable	Costs incurred and not yet paid, per your creditor terms
Other creditors / Accrued liabilities	Everything else falling due short-term
VAT payable, Duty payable	Collected and not yet remitted
Corporation tax / Income taxes payable	Tax owed and not yet paid
Loans / Loans to repay	Financing of type Loan, split by when it falls due
Share capital / Common stock	Financing of type Investment
Retained earnings / Money put in and kept	Every year of profit after tax the business has kept. This is what ties the profit and loss to the balance sheet
Balance check	Assets less liabilities and equity. Must read zero

Cash flow statement#

Line	Driven by
Receipts from customers / Money in from customers	Sales, on the date the money arrives
Paid to suppliers and employees / Money out to suppliers and staff	Costs and payroll, on the date they're paid
Duty paid	Duty remitted, on its schedule
VAT	VAT collected and reclaimed, net, on its schedule
Cash generated from operations	Subtotal, FRS 102 and IFRS
Corporation tax paid / Tax paid	Tax, on the date it's paid
Net cash from operating activities	Subtotal
Purchase of equipment / Equipment bought	Capital expenditure, as cash
Net cash used in investing activities	Subtotal
Borrowings drawn / Money borrowed	Loans received
Borrowings repaid	Capital repayments
Interest received, Interest paid / Interest	Interest on cash, loans and overdraft. Under US GAAP these sit in operating, not financing
Share capital introduced / Money invested	Equity investment
Net cash from financing activities	Subtotal
Change in cash	The Simple view's single subtotal

Bank balance band#

Opening Balance · Incoming · Outgoing · Closing Balance — see Bank balance & cash position.

The financial statements — the views and standards.
Metrics & formulas — the figures derived from these lines.
Where a number comes from — tracing a line to its drivers.