 zero accounting software balance sheet vertical analysis reports get ready to be an office hero with zero here we are in our custom zero homepage we set up in a prior presentation zooming in a bit holding down control scrolling up on the mouse wheel currently at 175 percent scroll in opening the demo file but doing so by resetting the data so this will reset the data and open the demo once the demo is open we're gonna open a couple tabs to be putting our reports in I'm gonna hide this icon here right click on the tab up top duplicate it right click on the duplicated tab and duplicate it again back to the tab to the middle we're gonna hit the accounting drop down go down to that balance sheet report tab to the right and we're gonna go to the accounting drop down and open up the income statement or profit and loss report back to the tab in the middle changing the date customizing it up to 2022 and the 31st and that's the setup process that we have been doing every time so now we're gonna do another kind of customization to the balance sheet remembering that the customizations we do can often be done to other reports as well the techniques can be used in other reports noting the two major reports are the balance sheet and the income statement so whenever you're applying these techniques to other reports you might want to think of them as either balance sheet type reports those that report something as of a point in time or profit and loss income statement type reports performance reports reports that report data over a time frame so let's go back to the balance sheet so last time we did a horizontal analysis and remember we're just looking at the balance sheet and the income statement and noting that we have a huge variation of reports we can do once we add things like comparing one period to the prior period as we looked at last time current month the prior year month last three months of data as where we stood in the last three months quarter to quarter data so we want to be able to kind of organize when we're going to be giving this data to our client or our supervisor and batch the data in such a way that would be most useful and nice you know for presentation purposes when doing so now we're going to add another one which is vertical analysis and that's going to give us more information about our data here in terms of a comparison of that data to its total in this case the total assets and the total liabilities this is a common technique so that we can make comparisons with other companies oftentimes benchmarking comparing to in other words larger companies in our industry we can't use the dollar amount to do so because the dollar amounts will change if we can compare using percentages that's often a useful tool so to do that we're going to go back into the edit layout tab over here and we're going to use this fancy editing tool to to create this so i'm going to make a new column and i highly recommend playing around with this in zero it's a tool that we don't see in a lot of in some other accounting software like a quick books it's more flexible in a lot of ways and and we're just kind of rushing the surface of it so i'm going to add a column over here i'm going to add a column and i'm going to say that the column is going to be a percent column this time so i'm not going to write in the formula it's going to be a percent formula kind of automatically hitting the dropdown 2022 on the data so and then i'm going to say it's going to be a percent of the assets current assets cash fixed assets i'm going to go with the assets now because assets equal liabilities plus equity we also should be comparing everything to total liabilities and equity on the liabilities and equity side of things and we're calling it december percent of assets that's fine we'll keep it that that looks like a good title let's go ahead and update it and check it out see what happens kpa so por favor i'm going to open up a calculator here and so we could do some calculations while we're here okay so then what did it do so now we've got our percentages on the right hand side so we're comparing everything to the total assets so in this case we've got the 9172.63 divided by the 11971.67 and that gives us our 67% if i move the decimal two places over so note what that does for us if i'm trying to say what does another company in my industry look like i could say well i can't compare my dollar amounts of receivables but i could say what percentage of their total assets is receivable what percentage of their total assets is going to fixed assets for example and that could help me to kind of benchmark with other companies and and make comparisons in such a way now this is a comparable kind of concept as you might do for individual investing in say stocks and bonds when you're saying how much of my investment should be in stocks versus bonds you know 60 40 and what not you know kind of comparison same kind of idea here but now we're in specific industries and seeing what those investments might be now on the liabilities and equity side same kind of concept here we know that total assets right there is the same as liabilities and equity so i can compare this number here to total assets or total liabilities and equities the same thing so i'm going to take that divided by total liabilities and equity which is the same as total assets divided by 11971.67 and we get the 85.97 so now we can compare our liabilities to the total liabilities and equity and we can think about remember the two halves of our financial statement first half is what the company has in order to help us generate revenue in the future second half who has claimed to those how are we financing those assets either third party loans and things like that liabilities or we us equity which represents earnings that have accumulated we have not yet distributed and and distributions that we've made into the company so now we can say okay we're we're basically comparing each of our liability and equity accounts to the total assets or total liabilities and equity so that's going to be the concept of these two let's go ahead and hit the formatting down here i'm going to i'm going to say let's remove the decimals and that might clean it up a bit so now we've got no decimals we might want to call it something a little different we might want to call it like a a vertical analysis which i'll probably spell wrong vertical analysis vertical analysis something like that if it's wrong i apologize but we we've renamed it here so so now we've got a nice vertical analysis so this is another nice report to make now note that if you're trying to mix and match reports that you're going to provide to somebody else you probably want to start off with simplified reports and then get into more detailed reports but that can lead to a whole lot of different reports or the other your other strategies to try to put as much information on one report so you have less a number of reports but just realize that now if i add a vertical analysis item to it i can now do uh comparative reports with multiple periods that has a vertical analysis next to it as well for this period versus the prior month or the prior year or whatever so again that just adds you know almost twice as many like a whole the whole lot almost infinite number of reports that we can do between different dates comparing quarters comparing months comparing to the prior year and having vertical analysis or not vertical analysis and horizontal analysis or not horizontal analysis so you have a you want to think about your standard package of reports that you might give to someone possibly monthly possibly quarterly possibly yearly possibly those three being a bit different and and then include some of your fancy tools in here to do so to stand out so then we can of course export this if we wanted to pdf excel google sheets you could save it as a custom report i'll do that now so custom report i'll misspell vertical analysis again vertical analysis now this is something like that goes like that i'm not going to make it the default and if i go back to the first tab and check out my uh reports then we can then hide this thing eding and then go in let's go in there again because it did something funny go into the reports and then on the drop down or the tabs up top depending on how screwed in you are we're going to then go to the custom and now we've got our reports right there you can make it your favorite a memorized report or favorite reports it'll show up in the drop down as well if you want to do it that way too so great tool we'll go into some more reports in future presentations