The Reports tab is the most critical tool for a deep-dive review. While the dashboard provides a summary, these reports provide the granular detail needed for accuracy.
Accessing Drillable Reports (P&L and Balance Sheet)
A "drillable" report allows you to see the individual transactions that make up a specific total. The Profit and Loss (P&L) and the Balance Sheet are two distinct reports, but they can be accessed and navigated using the same steps:
- Navigate to Accounting in the left sidebar.
- Select the Reports tab and stay on the All sub-tab.
- Scroll down to the Accounting Reports section.
- Select either Profit and Loss or Balance Sheet.
- In the top left, use the dropdown to set your preferred date range.
- Drill Down: Click into any number on the report to see the specific transactions that make up that total.
Verifying Your Data
- Profit and Loss: This report shows your revenue versus expenses over a specific period. Click into Services Income to see individual transactions. If you find money you personally put into the business, update it to Shareholder Contribution.
- Balance Sheet: This report provides a "snapshot" of your business's health at a specific point in time, showing Assets, Liabilities, and Equity. Review this to ensure your Shareholder Contributions (money you put in) and Shareholder Distributions (money you took out) are accurately reported.
How Collective Supports Your Accounting
Collective provides the platform and specialized expertise to keep your books tax-ready year-round.
- Automated Bookkeeping: We run monthly bookkeeping that captures your activity for your specific tax filing requirements.
- Expert Guidance: Our team organizes your information according to standard bookkeeping practices based on the transactions you provide.
- Member Responsibility: While we handle the heavy lifting, your role is to ensure all business accounts are linked and to provide clarification on "Ask Member" transactions when prompted.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate and/or licensed adviser, or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.