How to analyze a debt report?

To help our clients monitor their company’s financial situation, we send debt reports at the end of each quarter.

When analyzing the report, please note the following :

1. The debt balance indicated as of the last day of the quarter (a specific date is stated in the letter). (See the picture below);
2. The debt balances have plus and minus signs:
2.1. Plus sign means debts owed to the company, advances paid to suppliers or missing purchase invoices in the accounting office; (see note 2.1 below)
2.2. Minus sign means debts owed by the company, advances received from customers or payment documents are missing in the accounting office (bank statements, transfers from personal accounts, cash orders or cash receipts). (see note 2.2 below)
3. The debt balance is shown in the last column, i.e. on the right. (see note 3 below)
4. The debit/credit columns show cash movements in accounts, i.e. the totals and payments on the last day of the quarter. (see note 4 below)
If you see that payment documents are missing in the accounting office, please provide them to your accountant.
If you want your accountant to comment on the report, we apply an additional hourly charge for it.