Reading Financial Statements

How do I

Financial statements in Sage 50 always show the expected or most-common balance. Therefore, if an amount is normally a negative (as Accumulated Depreciation on a Balance Sheet), Sage 50 shows it as a positive (multiplies by -1). Therefore, when you read your financial statements, you can look for negative numbers as warning signs.

Negative numbers on Sage 50's financial statements mean one of two things:

  • there was a posting error
  • something is wrong (you had a bad month)

To catch a posting error, print the general ledger, and study it for possible mistakes.

Related topics

Ratio analysis of financial Statements

List of Sage 50 financial statements

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