General Ledger Reports

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General Ledger Reports

The General Ledger reports provide a complete financial picture of your business.

These reports help you:

•Monitor profitability

•Review expenses

•Verify accounting accuracy

•Evaluate financial stability

•Identify trends and problems early

Many businesses review selected reports:

•Weekly

•Monthly

•Quarterly

•Yearly

The more consistently these reports are reviewed, the easier it becomes to make informed business decisions.


Chart of Accounts

What it shows

The Chart of Accounts report provides a complete sequential listing of all General Ledger accounts established in the system.

The report includes:

•Section headings

•Account titles

•Subtotals

•Grand totals

•Account structure


Report Structure

If configured correctly:

•Main sections print in bold capital letters

•Accounts appear beneath each section

•Subtotals appear indented below grouped accounts

•Grand totals appear at the end of each section

This formatting helps visually organize the accounting structure.


Why it matters

The Chart of Accounts is:

•The foundation of the accounting system

•A reference for all account numbers

•A valuable planning and troubleshooting tool

It is recommended that businesses:

•Print a copy periodically

•Keep a reference copy available


G/L Account Summary

What it shows

The Account Summary report displays:

•Account number

•Account title

•Year-to-date totals

•Current period totals

•Budget comparisons

•Percentage of budget used

•Prior-year comparisons


Why it matters

This report is extremely useful for:

•Monitoring financial trends

•Comparing performance over time

•Evaluating budget effectiveness


Typical Analysis

Management often reviews:

•Whether income is increasing

•Whether expenses are rising

•Whether budgets are being exceeded

Examples:

•Falling income may indicate declining business activity

•Rising expenses may suggest operational inefficiency

This report helps identify those problems early.


Trial Balance

What it shows

The Trial Balance verifies the integrity of the General Ledger.

It includes:

•Beginning balances

•Debit totals

•Credit totals

•Ending balances

Optional detail listings may also include:

•Individual transactions


Why it matters

The Trial Balance is one of the most important accounting verification reports.

It is commonly run:

•Before closings

•During audits

•When troubleshooting balancing issues


Important Principle

The Trial Balance helps verify:

Total Debits=Total CreditsTotal\ Debits = Total\ CreditsTotal Debits=Total Credits

If the totals do not match:

👉 the ledger is out of balance.


Recommended Practice

Many businesses:

•Run Trial Balances weekly

•Perform smaller, more frequent closings

This makes troubleshooting dramatically easier because:

•fewer transactions must be reviewed


G/L Transactions Listing

What it shows

This report lists all General Ledger transactions within a specified date range.

Each transaction includes:

•Account number

•Date

•Debit amount

•Credit amount

•Reference information


Why it matters

This report is especially valuable for:

•Troubleshooting

•Locating unclosed transactions

•Identifying invalid accounts

•Reviewing posting activity


Common Troubleshooting Use

A wide date range such as:

01/01/1980 – 12/31/2099

can be used to display:

•all remaining transactions

•uncleared activity

•orphaned postings


Profit & Loss Statement

What it shows

The Profit & Loss Statement summarizes:

•Income

•Cost of Goods Sold

•Operating Expenses

•Net Profit or Loss

The report also displays percentages showing how much each category contributes to the overall totals.


Why it matters

This report helps management understand:

•Where money is earned

•Where money is spent

•Which areas are profitable

•Which expenses may be excessive


Core Profit Formula

Profit=Income−ExpensesProfit = Income - ExpensesProfit=Income−Expenses


Using the Report Effectively

The Profit & Loss Statement is one of the best management tools in the system.

It can help identify:

•Excessive expenses

•Weak sales areas

•Improving profit opportunities

•Operational inefficiencies

Even small expense reductions can significantly improve profitability over time.


Balance Sheet

What it shows

The Balance Sheet summarizes:

•Assets

•Liabilities

•Owner’s Equity

It also displays percentages showing how each account contributes to the section totals.


Why it matters

The Balance Sheet is the primary report used to evaluate:

•Financial stability

•Debt levels

•Available cash

•Overall business health


Important Financial Concept

The Balance Sheet reflects:

Assets=Liabilities+Owner′s EquityAssets = Liabilities + Owner's\ EquityAssets=Liabilities+Owner′s Equity


Cash Flow Importance

One of the most important areas to monitor is:

👉 liquid assets (cash availability).

Strong cash flow:

•reduces stress

•improves purchasing flexibility

•helps avoid excessive debt


G/L Account Auditor

What it shows

The Account Auditor creates a detailed transaction listing for a single General Ledger account.

The report includes:

•All transactions

•Date ranges

•Debit and Credit activity

•Reference information


Why it matters

This report is extremely useful when:

•Researching discrepancies

•Reviewing account history

•Verifying adjustments

•Investigating unusual activity


General Ledger Formulas

What it shows

The Formula reports automatically calculate common accounting ratios using General Ledger data.

Reports may be generated for:

•Monthly

•Quarterly

•Year-to-date periods


Included Financial Ratios

MLS 2026 calculates:

•Current Ratio

•Quick Ratio

•Average Collection Period

•Return on Equity

•Gross Profit Margin

•Net Profit on Sales

•Return on Assets

•Debt to Net Worth


Why Ratios Matter

Financial ratios help evaluate:

•Profitability

•Liquidity

•Debt levels

•Operational efficiency

•Financial strength

These ratios are often used by:

•Accountants

•Banks

•Investors

•Business managers


Examples

Current Ratio

Measures the ability to pay current liabilities using current assets.

Desired guideline:

Current Ratio≥2:1Current\ Ratio \geq 2:1Current Ratio≥2:1


Quick Ratio

Measures immediate debt-paying ability using:

•Cash

•Securities

•Accounts Receivable

Desired guideline:

Quick Ratio≥1:1Quick\ Ratio \geq 1:1Quick Ratio≥1:1


Debt to Net Worth

Measures the relationship between:

•Borrowed funds

•Owner investment

Desired guideline:

Debt to Net Worth≤1.0Debt\ to\ Net\ Worth \leq 1.0Debt to Net Worth≤1.0


Previous-Year Reports

What it shows

This report prints General Ledger summaries from archived prior years.

MLS 2026 stores historical yearly data files automatically.

Example file names:

MLSGL2010.dbf
MLSGL2025.dbf


Why it matters

Historical reporting allows businesses to:

•Compare yearly performance

•Analyze long-term trends

•Review prior financial conditions

•Prepare tax and audit information


Best Practices

•Review financial reports regularly

•Run Trial Balances before closings

•Monitor trends, not just totals

•Investigate unusual changes immediately

•Maintain archived reports for historical comparison


Important Perspective

Financial reports are not just accounting paperwork.

They are management tools that help business owners:

•Understand profitability

•Control expenses

•Improve operations

•Protect long-term financial stability

The more consistently these reports are reviewed, the more valuable they become.


Why this version works better