# Financials Overview

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### How to Access and Navigate Financials

Start by opening **Financials** from the left navigation menu. This brings you to your reporting dashboard: your central hub for reviewing Profit & Loss, Balance Sheet, Cash Flow, AR/AP Aging, and more.

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From here, you can:

* **Switch between report types** using the selector at the top (e.g., P\&L, Balance Sheet, etc.)
* **Filter by date range** (like This Month, Last Quarter, or Custom)
* **Drill into details** by hovering over lines or clicking into totals
* **Download any report** to share with your team, tax professional, or auditors

{% hint style="info" %}
**Tip:** All reports are real-time and customizable—no need to export to Excel.&#x20;
{% endhint %}

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### Reports You’ll Find in Financials

<details>

<summary>Profit &#x26; Loss</summary>

The **Profit & Loss (P\&L)** view shows how your business performed over time by summarizing revenue, expenses, and profit for each month. This helps you quickly understand what’s driving financial changes and identify trends without diving into spreadsheets.

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### What You’ll See on the P\&L Page

Quick Insights:

* **Expenses Analysis** – Biggest increases/decreases by vendor or category.
* **Revenue Analysis** – Month-over-month revenue changes and top contributors.\
  These callouts help you spot variances instantly.

<figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/CdaehhORvWgOyETa8TED" alt=""><figcaption></figcaption></figure>

**Interactive P\&L Table -** Use filters to switch between **1, 3, 6, or 12 months, expanded/collapsed views.** Click the **Options** button to open additional settings, such as Drill down, number format, monthly breakdown, month-over-month, year-over-year, and more.

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**Hover over a line to see:**

* Overview
* YTD totals
* Top Vendors
* Top transactions

Click **View Details** (when available) to open all related transactions.

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/W0O66rPNiYYUDPR1nZMA" alt="" width="375"><figcaption></figcaption></figure></div>

Click **Download** to export the P\&L for review, tax prep, or sharing.&#x20;

***

### When to Use the P\&L

The P\&L is especially useful when you need to:

* Diagnose unusual changes in revenue or expenses
* Prepare for meetings or the month-end close
* Understand cash vs. accrual impact (depending on your accounting method)
* Identify top-performing customers or high-cost vendors
* Track year-over-year or month-over-month performance

</details>

<details>

<summary>Balance Sheet</summary>

The **Balance Sheet** shows what the business **owns**, **owes**, and **retains** at a specific point in time. It helps you understand financial health, liquidity, and long-term stability—without digging through raw ledgers.

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***

### What You’ll See on the Balance Sheet Page

Quick Insights:

* **Assets** – Month-over-month changes in cash, receivables, prepaid balances, and other asset accounts.
* **Liabilities** – Shifts in payables, credit cards, loans, and liabilities.

<figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/jNMSvH7cSFpzPzQA5DK3" alt=""><figcaption></figcaption></figure>

**Interactive Balance Sheet Table -** Use filters to switch between **1, 3, 6, or 12 months**, and switch between **expanded/collapsed views.** Click the **Options** button to open additional settings, such as Number format, monthly breakdown, month-over-month, year-over-year, and more.

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/j7GUPMEdDkiZCEcKDzFr" alt=""><figcaption></figcaption></figure></div>

**Hover over an account to view:**

* Overview
* Top transactions&#x20;

Click **View Details** (when available) to open all underlying transactions.

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Click **Download** to export the Balance Sheet for auditors, tax teams, or internal reporting.&#x20;

***

### When to Use the Balance Sheet

The Balance Sheet is especially helpful when you need to:

* Evaluate liquidity and solvency
* Review loan balances or debt changes
* Check the accuracy of asset capitalization or amortization
* Validate period-end balances during close
* Analyze MoM or YoY financial health

</details>

<details>

<summary>Cash Flow</summary>

The Cash Flow report shows how money **moves in and out of the business**, helping you understand runway, operational health, and true cash performance—beyond accounting profit.

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### What You’ll See on the Cash Flow Page

Quick Insights:

* **Gross Income** – Total cash coming *in* that month (customer payments, refunds reversed, loan deposits, etc.).
* **Gross Burn** – Total cash going *out* (vendor payments, payroll, loan repayments, and other operating expenses).
* **Net Cash** – The month’s overall cash change (Gross Income minus Gross Burn).

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**Interactive Cash Flow Table -** Use filters to switch between **1, 3, 6, or 12 months**, and switch between **expanded/collapsed views.** Click the **Options** button to open additional settings, such as Number format, monthly breakdown, month-over-month, year-over-year, and more.

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/1Hg9sYjXiaVFRmDsLDpI" alt=""><figcaption></figcaption></figure></div>

**Hover over any category to view:**

* Overview
* Top transactions contributing to inflows/outflows

Click **View Details** to drill into all related transactions.

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/nPvhGTzR1e01DUX54TMr" alt="" width="563"><figcaption></figcaption></figure></div>

Click **Download** to export Cash Flow for forecasting, planning, or investor reporting.&#x20;

***

### When to Use the Cash Flow Report

This report is ideal when you want to:

* Understand the month-to-month cash runway
* Identify spending spikes or collection delays
* Compare accounting profit vs. real cash
* Support cash-based budgeting or forecasting
* Prepare for investor or board updates

</details>

<details>

<summary>AR Aging</summary>

{% hint style="info" %}
**Notes:**

* AR/AP Aging Reports only include activity recorded in Digits after the entity’s **cutover date** (found in **Settings → Accounting**).&#x20;
* Digits does *not* import legacy bills from **QuickBooks Online (QBO)**.
  {% endhint %}

The **Accounts Receivable (AR) Aging** report shows all unpaid customer invoices, grouped by how long they’ve been outstanding. It gives you a clear, time-based view of what customers owe and helps you stay ahead of collections and cash-flow risks.

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### What You’ll See on the AR Aging Page

Quick Insights:

* **Total Outstanding AR**
* **Invoices by aging bucket** (Current, 1–30 days, 31–60 days, 61–90 days, 90+ days)

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/axUWjeeYluoRzkvipn38" alt="" width="563"><figcaption></figcaption></figure></div>

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**Detailed AR Aging Table**

Scroll down to see every outstanding invoice, grouped by customer:

For each invoice, you’ll see:

* Customer name
* Invoice number
* Due date
* Days outstanding
* Amount owed
* Aging bucket

**Hover over any customer row to see more details.**&#x20;

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/CkXlLTuquA5ZOFsOfEMp" alt="" width="563"><figcaption></figcaption></figure></div>

Click **Download** to export AR Aging for forecasting, planning, or investor reporting.&#x20;

***

### Where the Data Comes From

Digits automatically includes:

* **All invoices created in Digits Invoicing**
* **Invoices flowing in through Digits Connectors** (e.g., Ramp)

If an invoice was **already paid outside Digits**, use **Mark as Paid** to keep aging accurate.

If you need to add a missing invoice manually, create it via **Invoicing** and it will appear immediately.

***

### When to Use AR Aging

AR Aging is most helpful when you want to:

* Prioritize customer follow-ups
* Identify cash flow risks
* Prepare for end-of-month or year-end reporting
* Track overall collection performance

</details>

<details>

<summary>AP Aging</summary>

{% hint style="info" %}
**Notes:**&#x20;

* AR/AP Aging Reports only include activity recorded in Digits after the entity’s **cutover date** (found in **Settings → Accounting**).&#x20;
* Digits does *not* import legacy bills from **QuickBooks Online (QBO)**.
  {% endhint %}

The **Accounts Payable (AP) Aging** report shows all unpaid vendor bills, grouped by how long they’ve been outstanding. It's your go-to view for managing cash outflows and preventing late payments.

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/jNJHznWak3KSe2kiCuhp" alt="" width="563"><figcaption></figcaption></figure></div>

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### What You’ll See on the AP Aging Page

Quick Insights:

* **Total Outstanding AP**
* **Bills by aging bucket** (Current, 1–30 days, 31–60 days, 61–90 days, 90+ days)

<figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/ltaDaWxQb4WMu1Kc4Ddo" alt=""><figcaption></figcaption></figure>

**Detailed AP Aging Table**

Each row includes:

* Vendor name
* Bill date
* Due date
* Bill number
* Amount per aging bucket
* Total owed

<div align="left"><figure><img src="/spaces/Qp6kVxx1FJYsPtDHusNl/files/yWNteJHSEWrr4lDk80uv" alt="" width="563"><figcaption></figcaption></figure></div>

Click **Options** to change the number format from rounded to decimal.

Click **Download** to export AP Aging for forecasting, planning, or investor reporting.&#x20;

***

### Where the Data Comes From

Digits automatically includes:

* Bills uploaded or created through **Digits Bill Pay**
* Bills coming from **Digits Connectors** (e.g., Ramp)

Bills paid outside Digits should be closed using **Mark as Paid** to keep aging accurate.

Need to add a missing bill? Upload it through **Bills,** and it appears immediately.

***

### When to Use AP Aging

Use AP Aging when you need to:

* Plan for upcoming vendor payments
* Identify overdue bills
* Reduce late fees
* Support weekly cash flow planning

</details>

***

### Frequently Asked Questions

<details>

<summary>What is Financials in Digits?</summary>

Financials gives you a centralized, audit-ready view of performance across your books. Review standard statements, explore category-level details, customize client-ready reports, and automate recurring reporting.

</details>

<details>

<summary>Why are my AR/AP Aging reports empty?</summary>

Two common reasons:

* **Cutover Date** — AR/AP reports only include activity recorded after the entity’s cutover date. You can find this in **Settings → Accounting**.

1. **QBO Connections** — Digits does **not** import legacy bills or invoices from QuickBooks Online. QBO-connected users may see empty reports until items are recreated in Digits.

</details>

<details>

<summary>How do I switch between different financial reports?</summary>

Use the report selector at the top of the Financials page to move between P\&L, Balance Sheet, Cash Flow, AR Aging, and AP Aging.

</details>

<details>

<summary>What is Net Burn, and why does it show accrual adjustments?</summary>

Net Burn is a cash-basis metric that calculates total spend minus income for a specific period. You may notice accrual adjustments in the report — these appear because the Total Spend and Income components initially include accrual-based transactions. The adjustments ensure the final Net Burn figure reflects only actual cash movement. For example, credit card charges or accounts payable transactions may appear in the accrual adjustments section so they can be excluded until the cash actually moves. The Cash Flow report in Financials is the best place to review overall cash inflows and outflows, along with Net Burn.

</details>

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