When you enable financing, changes in your balance are not a good indicator of things going well or badly. Ideally I would like to be able to switch the bottom bar to show the current balance and the accounting profit. (Instead of balance and the delta since last month)
Accounting profit is:
Alternatively it can be described as:
That way you get a number that shows you how your company is doing over the long term, ignoring things that cause big swings in your balance like: Customer financing, taking out bonds, buying or selling stock, IPOs, etc
Accounting profit is:
- + all revenue except: Customer financing, Sold stocks
- - all expenses except: Tax payment, Loan repayment, Bond payback, Credit payments, Dividend payo
- - Tax expected to be paid over the cars sold last month
Alternatively it can be described as:
- + Cashflow
- + Tax payment
- + Loan repayment
- + Bond payback
- + Credit payments
- + Dividend payout
- + Customer loans funded
- - Customer loan payments
- - Customer loan early payoffs
- - Sold stocks
- - Tax expected to be paid over cars sold last month
That way you get a number that shows you how your company is doing over the long term, ignoring things that cause big swings in your balance like: Customer financing, taking out bonds, buying or selling stock, IPOs, etc
