The Ratio is a measure of your company's short-term liquidity, or in other words, your ability to meet your short term liabilities using your most liquid assets, that is, cash or near cash assets. It compares the debit and credit balances, and shows the net balance.

To help you make business decisions, it's important to know how easily you can meet your current obligations without selling other company assets.

You can easily edit the Ratio report to include the nominal accounts you want to compare, making it more relevant to your individual business. Let's do this now.

To amend and run the Ratio report

1. On the navigation bar click Nominal codes, then click Ratio.
2. To change any of the nominal codes, in the N/C Ref column select the code you want to change, then enter the new nominal code or choose it from the drop-down.
   
   

    TIP: To delete a nominal code from the report, select the nominal code then click Delete.

3. To print your ratio report, click Print.
4. To save your report settings, click Save.
5. To return to the Nominal codes window, click Close.