Financial statements are the output of controlled accounting
Under the SCF, the financial statements include the balance sheet, income statement, cash flow statement, statement of changes in equity and notes, depending on the entity concerned. They are not isolated forms. They are the result of a complete accounting process.
If the journal, ledger and trial balance are weak, the statements will also be weak.
What each statement should explain
The balance sheet explains financial position. The income statement explains performance. The cash flow statement explains movements of cash. The statement of changes in equity explains capital and reserves. The notes explain methods, risks and details that cannot be understood from numbers alone.
DZ Compta should help keep these links visible instead of producing disconnected exports.
Closing controls
Before issuing statements, review depreciation, inventory valuation, payroll liabilities, tax balances, VAT accounts, provisions, receivables, supplier balances and bank reconciliation. The statements must reflect a file that has been reviewed, not only generated.
Weak statements usually fail in explanation, not in layout. Inventory value, CNAS balance, receivables and annual profit should be traceable back to accounts and supporting entries. The software should preserve this link between daily accounting and final reporting.
Official references
- SCF order on financial statement content and presentation
- Law 07-11 on financial information and faithful view
Close before issuing statements
A financial statement is credible when the team can go from each figure back to the account, entry and supporting document.