For your CA
Updated 22 Jul 2026

Budgets & ratio analysis

Read your books like an analyst: standard financial ratios (profitability, liquidity, leverage, efficiency) and a budget-vs-actual comparison, both from your double-entry books.

Two reports let you read your books like an analyst: standard financial ratios (profitability, liquidity, leverage, efficiency) and a budget-vs-actual comparison with variance. Both compute live from your double-entry books — current the moment you open them.

The ratios Finocket computes

Open Reports → Ratio analysis, pick a date range, and Finocket works out the standard ratios accountants use, grouped into:

  • Profitability — net profit margin, return on equity, return on assets.
  • Liquidity — current ratio and quick ratio (can you cover what you owe?).
  • Leverage — debt-to-equity and debt ratio.
  • Efficiency — expense ratio and asset turnover.

Each ratio shows its value and the formula behind it, so nothing is a black box — and reads NA when there isn't enough data to compute (for example, a ratio that would divide by zero). No spreadsheet gymnastics; the inputs come from your trial balance.

Budgets and variance

Open Reports → Budgets & variance to set a budget — for the whole business, a specific ledger account, or an expense category — for a month or a year. Finocket then compares budget to actual from your books and shows the variance, flagging where you're over or under. Set a fuel budget per month, a marketing budget for the year, or an overall spend ceiling, and check the screen before committing to new spending.

What does the Exception report catch?

Everything that looks wrong in your books, on one screen: negative balances, long-overdue bills, cancelled invoices with activity, unadjusted advances and drifting invoice statuses — each row linking to the record so month-end review starts from the problems, not the printouts.

Access & control

Owners and assistants set budgets; an invited accountant reads both reports read-only — the ratio sheet is a natural page for your CA's quarterly review. Both live under Reports with your core books; no separate module.

Frequently asked questions

How do I track budget vs actual for my business?

Set a budget per category, ledger or for the whole business (monthly or yearly) in Budgets & variance; Finocket fills in actuals from your recorded expenses and income and shows the variance, flagged over/under.

What is a good current ratio for a small business?

Around 1.5–2 is commonly considered comfortable — enough current assets to cover current liabilities without hoarding idle cash. Finocket computes yours live and shows the formula so you can see what's driving it.

Why does a ratio show NA?

There isn't enough data to compute it — usually a zero denominator (e.g. no debt for debt-to-equity, or no assets recorded yet). Record the relevant entries and it fills in.

Can my CA use these instead of building them in Excel?

Yes — invite them read-only; the ratios and variance report compute from the same trial balance they'd otherwise export, with formulas shown.

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