These acknowledged facts show that a large amount of labor is expended to obtain something of comparatively small value, or, rather, something of which little practical use is made. This condition prevails in so many well-conducted offices as to indicate an ignorance of the proper use to be made of the figures furnished in a trial balance, and hence a waste of labor in this connection - labor which brings together quantities of material from which valuable and helpful statements might be constructed, but which is left unused.
The remedy for this condition may be found in the form of statement described in the present chapter, which is now coming into general use. It calls for no more labor than the trial balance but yields results which are often invaluable. Such a statement differs from a mere trial balance in two essentials:
1. The accounts, instead of forming one long list in the order of ledger folios, are classified and grouped into "profit-yielding" accounts, "sales" accounts, "expense" accounts, etc., each particular group of accounts carrying its own totals.
2. In addition to the balance of each account on the date of the statement, there are shown in two separate columns the total debits and the total credits which have been posted to each account during the month, or other period, covered by the statement.
The grouping enables the management to get a systematic and comprehensive idea of the entire business, while the entry of debits and credits shows in brief the business transacted since the last trial balance.