Often Income Statements are more useful when the various different types of income and expenses are separated out into sections (e.g., Operating vs Non-operating expenses). This also applies to Cash Flow Statements and the asset and liability accounts.

Financial Navigator allows for this separation through our “Sections” column in the Chart of Accounts.

The section title choices are:

• Gross Margin
• Operating
• Investing
• Financing
• Non-operating
• Draw
• Taxes

In order to have accounts separated into these sections:

1. Select the Chart of Accounts from the appropriate entity.
2. Select Options | Show Columns | Section so “Section” has a check mark next to it.
3. Highlight the account to be separated in the Chart of Accounts.
4. Go to the “Section” column on the Account Properties side of the Chart of Accounts (usually the last column).
5. Click on the blank box in the section column for the appropriate account to activate the drop down menu.
6. Select the section title choice for that account from the drop down menu.
7. Repeat steps 3 – 5 until all accounts to be separated have the appropriate section designation.

Once that is complete, run an Income Statement to see the newly separated sections.

This same separation can also be accomplished with asset and liability accounts for Cash Flow reports.