Prepare Your Income Statement in OpenGov
All governments need to prepare Income Statements, also commonly referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, earnings statement, or operating statement. And it’s easy to prepare these reports in OpenGov Intelligence.
Understanding Income Statements
This reporting shows revenue and expense activity for the entire organization as a whole or for some specific unit(s) such as individual funds, departments, or projects. Reports cover a specific period of time – often a month, quarter, or year. The goal is to show net financial activity’s effect on the government, fund, department or project’s financial position (i.e. did the unit make or lose money during the period? Did reserves grow or shrink?).
Finance staff often include the Income Statement in periodic reports to executives, legislators, and other interested parties. To help tell the financial story, reports often have subtotals to organize revenues and expenses into established categories, as defined in the Chart of Accounts.
Income Statements usually add information to contextualize the current numbers. Prior year and period totals help reveal developing trends. Variances to current budgets provide more information about the current situation and helps users extend trends into the future.
Easily Prepare Income Statements in OpenGov
Creating Income Statements takes just a few moments as long as your current GL data and budget are uploaded onto the OpenGov Platform and basic reporting is in place. The OpenGov Income Statement table function is built into reports, but is so simple to use that it is easily overlooked.
To get started:
1.Open any standard or monthly template report
2.Set the report to show “Revenues vs Expenses”
3.Scroll down from the graph to show the Summary Table
4.Note the Revenue, Expense and ‘Revenue less Expenses’ totals in each column
For example, here is how to create two frequently requested reports:
1. Fund Level Income Statement for the quarterly report to Council
- Show Revenues and Expenses
- Use the Filter to select the fund
- Expand the rows to the level of detail desired.
- Create a Saved View
2. Detailed Expense Report for your department managers
- Show Expenses
- Break data down by expense type
- Use the Filter to select a specific department or cost center
- Expand rows for desired detail
- Create a Saved View
A few tips and tricks will let you produce exactly the reports your team needs:
- Use the OpenGov Filter to select specific funds, departments or other units you want to include in the report.
- Control the level of detail on the report by using the carrots (little triangles) beside the Revenue and Expense lines to progressively open deeper detail lines as you drill into the table.
- Or, use the “Expand All” button to open up the first layer of sub-categories for the entire table at once.
- Use a Saved View to capture the report so you can use it to use again and again. This report also automatically updates as you import fresh data into OpenGov.
- Download the finished table as a PNG file to copy-paste into any report or agenda item.
- Download it as a spreadsheet in Excel to add your own touches.
This post was co-written by Vice President of Government Finance Solutions, Mike McCann, and Tom Zayan, a Product Manager at OpenGov.
Category: Product Advice