I'm using double entry with Assets, Expenses, Income, Liabilities, and Equity.
To illustrate my question with easy round numbers: Income one month is 10k; 5k goes into an asset like a 401k account (or to reduce a Liability, like a mortgage principal), and Expenses are 8k. (Doh!)
I'm looking for a report that shows me that I have a cash flow problem.
"Cash Flow", "Profit & Loss", "Balance Sheet", "Net Worth", etc. all don't show me that I have a problem (they say I'm spending 2k less than I'm making, and my net worth is going up by 2k/month, etc.).
Is there a standard report that should show me what I'm looking for? Or is there a typical adjustment made to some report that will show what I'm looking for?
Tabular concrete (very exaggerated and simplified of course) example:
Starting Balances (years ago) Withdraw Deposit
Asset: Checking 100
Liability: Loan 50
Equity 50
Make Money (today)
Asset: Checking 10
Income: Sell Stuff 10
Pay Loan (today)
Asset: Checking 13
Liability: Loan 5
Expenses: Interest Paid 8
Do I just need to "close the books" frequently so that I can see this isn't sustainable?
$5K + $8K - $10K = $3K
) must be accounted for on your balance sheet and net worth statement. It's debt (either in the form of unpaid bills or unpaid CC charges). – RonJohn Feb 6 '18 at 8:48