How to treat the accumulated losses of enterprises

Financial statements are an important tool to provide financial information, so how can enterprises see losses from financial statements?

Tools/raw materials

Accounting software

balance sheet

profit statement

Methods/steps

Open and log in the accounting software.

Select and view the income statement.

Find out the "net profit" item in the income statement.

A negative net profit indicates a loss. The current period represents the loss of this month; The number of this year indicates the accumulated loss of this year.

Go back to the home page and select the balance sheet.

Find the "undistributed profit" item in the balance sheet.

The ending balance of undistributed profits represents the total profit and loss of the enterprise up to now. If it is negative, it means the total loss of the enterprise since its opening.

Matters needing attention

The balance sheet shows the accumulated profits and losses of the enterprise since its opening.

The income statement shows the profit and loss of the enterprise this month and the accumulated profit and loss this year.

Both the balance sheet and the income statement can show whether the enterprise is losing money, but the statistical caliber of the loss is different.