When to use it
- Producing balance sheet and income statement figures for the period.
- Reconciling Lago’s revenue, receivables, deferred revenue, and tax balances against your general ledger.
- Reviewing period activity before exporting to your accounting system.
Who uses it
Finance and accounting teams closing the books.What each statement shows
The cash flow statement is out of scope.
How to read it
- Balance sheet lines are balances: snapshots at the period end. Deferred revenue, for example, is what remains unearned at that moment.
- Income statement lines are activity: how much was earned or reduced during the period.
- Recognized revenue on the income statement ties to the Recognized Revenue report. Deferred revenue on the balance sheet ties to the Deferred Revenue report.
How to read positive and negative values
On the income statement, recognized revenue is positive and contra-revenue (credit notes, voids, coupons, free credits, lost disputes) is negative, so net revenue is gross minus those reductions. On the balance sheet, liabilities like deferred revenue and tax grow as you invoice in advance and shrink as you earn or remit.Relationship to other reports
- The income statement summarizes the Recognized Revenue report.
- The balance sheet summarizes the Deferred Revenue report and the receivable, cash, and tax positions.
- Every figure traces down to the Journal Entry Details.
Limitations to keep in mind
- Statements cover what Lago can see from your billing data. Activity outside Lago isn’t included.
- Once a month is closed, its figures are fixed; late events are handled through a manual adjustment in a later period.