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How the reports connect

Learning objective: Explain how the five reports connect and track the key indicators that summarize financial health, including the Iron Triangle.

VIDEO PLACEHOLDER: How the Reports Connect

To be built in Animaker. Replace this block with the video embed. Length: 90–120 seconds. Format: Animated infographic (Animaker infographic/timeline template).

Script points:

  1. Harbor Oak’s monthly net income on the P&L flows into equity on the balance sheet.
  2. The family and CCS aging totals drop into the receivable lines on the balance sheet; the AP aging total drops into Accounts Payable.
  3. The Budget v. Actual uses the same actual numbers as the P&L.
  4. January–March: the P&L shows a surplus each month while the CCS receivable climbs and operating cash falls, showing that profit is not cash.

Each report answers one question. Together they tell the whole story. These connections hold for every program on accrual books:

  • Net income on the P&L flows into equity (net assets) on the balance sheet.
  • Aging report totals equal the receivable and payable lines on the balance sheet.
  • The Budget v. Actual report uses the same actual numbers as the P&L.
  • Profit and cash are different. A program can show a profit while cash falls, if receivables grow, if it buys equipment, or if it repays a loan.