Business finance

Business finance keeps the books of your whole business in one place: where every kyat is (cash drawers, the safe, each QR account, the bank), what the business is worth, the real profit after running costs, loans, equipment, and who owns how much of the business. LiteShop fills most of it in by itself from your sales, refunds, expenses, purchases, supplier and customer payments and cash drawers.

It is on the Ultra plan and only the owner sees it (not managers or cashiers). The words are explained in the glossary.

#What you see

Open Business finance in the menu (on phones: More → Business finance). The tabs:

• Overview — the business value, the money in all accounts, this month's profit, and Needs attention (costs to confirm, loan payments due, profit ready to share, money not sorted yet, a money account below zero).
• Money accounts — every place your money is, with its balance and history.
• Profit & costs — profit month by month, after running costs.
• Business value — what the business owns minus what it owes.
• Loans and Equipment.
• Owners & investors — people, their money in the business, their share and the profit split.

Tap Refresh to count today's newest sales at once (they are also counted every few minutes).

#Set up

1. Open Business finance and tap Set up Business finance.
2. Start date: from which day LiteShop should keep the books. The default is the 1st of this month: sales and costs from that day are counted automatically. You can also pick today, the 1st of the year or another day (up to about a year back).
3. Money accounts and opening balances: LiteShop suggests a cash drawer for each shop, Safe / owner's hand and one account for each QR code. Add your bank accounts and wallets. For each, type how much money was in it at the start of the start date.
4. You, the owner: your name and, if you like, how much money you have put into the business so far.
5. Tap Start. LiteShop now counts the past days from the start date. It can take a few minutes; you can leave the page.

#Money accounts

A money account is a place where money is: Cash drawer · {shop}, Safe / owner's hand, each QR account (by the name you gave it in Settings → Payments), bank accounts, wallets and other places.

• Tap an account to see its statement: every money in and out, by month, with the balance after each line.
• Add account adds a bank account, a wallet or another place.
• A money account can't really be below zero. When one is, Needs attention says so: check its opening balance (Enter the real balance), or which account the expenses were paid from (Paid from on the expense).
• Not sorted yet holds money LiteShop could not put into an account (for example card payments when you have not said which bank they go to). Open it and choose where that money belongs. To fix it for the future, set where each payment method goes in Settings → Business finance.

#What is filled in automatically

You don't type these again. LiteShop takes them from what you already do:

Layaway payments and repair deposits go into their account (cash → the shop's drawer, QR → that QR account) as a customer deposit: money in, but not a sale and not profit. Money given back comes out of the account; layaway cancellation fees count as other income. See Layaway and Repairs.

Sales on credit, gift card and store credit payments are not money in yet, so they don't go into any account. The money comes in when the customer pays.

#Cash drawers and the safe

Each shop's drawer is a money account. When you take cash out of the drawer between shifts (the next drawer starts with less money than the last one counted), LiteShop moves that money to Safe / owner's hand for you. You can switch this off in Settings → Business finance.

#Move money

Use Move money when money goes from one account to another: a bank deposit (drawer → bank), cash taken from the bank, a QR account emptied into the bank.

1. Tap Move money.
2. Choose From and To, type the amount and the day.
3. If the bank took a fee, type it in Fee — it becomes a cost.
4. Tap Save.

A move is not a sale and not a cost: the money just changes place.

#Enter the real balance

Count the cash or look at the bank app, then make LiteShop agree with it.

1. Open the account and tap Enter the real balance.
2. Type the amount that is really there. LiteShop shows the difference.
3. Choose why: a bank fee, interest, cash lost or found, a sale or cost that was not recorded, or a wrong opening balance.
4. Tap Save. The balance is now the real one, and the difference is counted in profit (except a wrong opening balance).

#Business value

Business value = what the business owns − what it owes.

• Owns (assets): money in all accounts, stock at cost, what customers and others owe you (receivables), and equipment at the price you paid.
• Owes (liabilities): what you owe suppliers and others (payables), loans still to pay back, money customers paid in advance (gift card balances, store credit, and Customer deposits: money paid on open layaways and repair jobs), and profit you promised owners but have not paid yet.

Choose Today or the end of an earlier month. The chart shows the last 12 months.

#Profit and running costs

Profit & costs shows, month by month:

1. Net sales (after discounts and refunds) plus delivery fees and tips the customers paid.
2. minus Cost of goods (what the items you sold cost you) = Gross profit.
3. minus Running costs: rent, salaries and wages, utilities, marketing, delivery fees, courier costs, QR and bank fees, maintenance, loan interest, cash over / short, stock losses, cashback and your own categories.
4. = Net profit — what the business really earned.

Sales follow Reports → Sales (refunds on the day they were given), so a month that has ended doesn't change by surprise.

Staff commission is not counted until you pay it. When staff earned commission this month, the page shows it with Record as expense.

#Recurring costs

Rent and salaries come every month. Add them once under Recurring costs: name, category, amount, the day of the month and the account they are paid from. On that day LiteShop puts them in Costs to confirm. Tap Confirm when you have paid (change the amount if it was different) or Skip if not this time.

#Loans

Record money you borrowed from a bank, a person or an investor.

1. Loans → Add loan: who lent it, the amount, the day, the account the money went into.
2. Optional: interest (simple, % per month or per year) and when to pay back (once on a date, or every month).
3. When you pay, tap Record repayment and split it into principal (the loan itself) and interest. Interest is a running cost; principal is not.

The loan shows what is still to pay, the next payment day and if a payment is late. LiteShop reminds you 3 days before a payment is due. A loan from an investor is separate from their share in the business.

#Equipment

Fridges, shelves, a motorbike, a computer: add them under Equipment with the day and the price you paid (and a photo if you like). Equipment counts in the business value at the price you paid — LiteShop doesn't lower the value over time.

When you sell it, tap Sold and type the sale price; when you throw it away, tap Disposed. The difference to the price you paid is counted in that month's profit.

#Owners and investors

Under Owners & investors you list everyone who put money into the business: you, partners and investors.

• Add investment: money a person puts into the business (from an account, or "not through an account" if it was before).
• Withdrawal: money a person takes out of their share.
• Each person's statement shows what they put in, took out, their profit shares, what was paid to them, their balance and their share (%).

How the shares are counted is set in Settings → Business finance: By money invested or Agreed %.

#Shares by money invested

This is the default. Each person's share is their money in the business divided by everybody's money in the business. When someone adds or takes out money, the shares change from that day.

Example. A puts in 6,000,000 and B puts in 4,000,000. Together 10,000,000.

• A: 6,000,000 ÷ 10,000,000 = 60 %
• B: 4,000,000 ÷ 10,000,000 = 40 %

If the profit to share is 1,000,000, A gets 600,000 and B gets 400,000.

#Agreed %

Use Agreed % when the owners agreed the shares themselves, whatever money each put in (for example one person works in the shop and the other gave the money). Type the % for each person; together they must be exactly 100 %. Choose the day the agreement starts. When the agreement changes, add a new one from its new day — the old days keep the old %.

#Worked examples

1. Money added in the middle of a quarter. Shares by money invested, profit split every quarter (1 July – 30 September, 92 days). A has 6,000,000 and B 4,000,000 in the business. On 15 August (day 46) B adds 2,000,000.

• Days 1–45: A 60 %, B 40 %.
• Days 46–92 (47 days): A 6,000,000 and B 6,000,000 → 50 % each.
• For the quarter LiteShop counts each day: A = (45 × 60 % + 47 × 50 %) ÷ 92 = 54.89 %, B = (45 × 40 % + 47 × 50 %) ÷ 92 = 45.11 %.

The quarter's net profit is 10,000,000. The business keeps 20 % (Retained in Settings) = 2,000,000. 8,000,000 is shared, rounded down to 1,000:

• A: 8,000,000 × 54.89 % = 4,391,304 → 4,391,000
• B: 8,000,000 × 45.11 % = 3,608,696 → 3,608,000
• The 1,000 left over from rounding stays in the business.

2. The agreed % changes. Agreed 70 % / 30 % from 1 July, changed to 60 % / 40 % from 16 August. In the 92-day quarter, 46 days are 70/30 and 46 days are 60/40, so the quarter's shares are A 65 %, B 35 %. With a profit of 4,000,000: A 2,600,000, B 1,400,000.

3. A loss. The first quarter has a net loss of 500,000: nothing is shared and the loss is carried forward. The next quarter makes 2,000,000: 2,000,000 − 500,000 = 1,500,000 is shared.

#Profit split

In Settings → Business finance → Profit split choose:

• How often: every month, quarter, half year or year.
• Keep in the business (retained %): a part of the profit the business keeps before sharing, for example 20 %.
• Round to: amounts are rounded down (for example to 1,000); what is left over stays in the business.
• Losses: carry forward to the next periods (default) or share them.

After a period ends, Owners & investors shows it under Profit periods. Tap Calculate to see each person's share, then Finalize to fix it. A finalized period doesn't change any more; if old sales or costs change later, the next period shows Changes to earlier periods.

#Pay out or keep in the business

After you finalize, each person has Profit to pay.

• Pay out: choose the amount and the account the money is paid from.
• Keep in business: the person leaves the profit in the business; it is added to their money in the business (and, with shares by money invested, raises their share from that day).

You can do both in parts. You can't pay more than the profit to pay. You can only reopen the last period while nothing has been paid out or kept.

#Investor login

Let an investor follow their money without seeing your shop:

1. Open their person under Owners & investors and tap Invite to see.
2. Type their email and choose what they may see: Business value, Profit summary, Their own statement, Money account totals. Tap Preview to see exactly what they will see.
3. They sign in to LiteShop with that email (Google or Facebook; the email must be verified) and tap Accept. Their numbers show a moment later ("Getting your view ready…" until then).

Investors are not team members: they can't sell, can't open the POS, and never see customers, staff, salaries or other people's amounts. They don't count as staff on your plan. You can stop their access at any time (Stop access).

#What investors see

An investor opens LiteShop and sees My investments (people who also work in a shop find it in the account menu). It shows only what the owner shared:

• Your share: their %, their balance, profit to be paid to them, and the value of their share.
• Business value with its chart, and a profit summary by month (no details).
• Your statement: money put in and taken out, profit shares, payouts and how their % changed.

The numbers are updated by LiteShop. "Numbers as of {date}" shows when.

#Exports

Owners with Business finance get extra files in Reports → Export and the Accountant pack: the ledger, money accounts, profit and loss, business value, owners' capital, loans and equipment. See Exports.

#Plans

Business finance is on Ultra. If your plan changes, nothing is deleted: the books keep counting your sales and costs, you can still look at everything, and investors keep seeing the last numbers (with the date). Adding or changing things needs Ultra again.