How to Fill In Your Financials
Overview
The Financials section is one of the most impactful parts of your Optionality company profile. When you provide your financial data, Optionality's AI models can deliver significantly more accurate results for benchmarking, bankability analysis, potential acquirer matching, and your company valuation.
Don't worry — you do not need to be an accountant to fill this in. This guide explains every field in plain English, tells you exactly where to find each number, and gives you enough context to feel confident entering your data.
ℹ️ This section is optional — but highly recommended
If you skip the Financials section, Optionality will use its AI modelization tool to estimate your financials based on your company profile. These estimates are useful but less precise than your real numbers, especially for valuation and bankability scoring.
✅ Your data is safe
All financial information you enter is anonymized and treated with strict confidentiality. It is never shared with third parties in an identifiable form.
Jump to EBITDA
Before You Start: What to Have Ready
To fill in this section efficiently, have one or more of the following documents available:
- Your accountant-prepared financial statements (also called "year-end financials")
- Your bookkeeping software exports (QuickBooks, Xero, Sage, etc.) — typically called a Profit & Loss Report and Balance Sheet
- Your most recent tax return (T2 in Canada / Form 1120 in the US)
You will need data for your two most recently completed fiscal years (e.g., 2024 and 2023). If you only have one year, that's fine — enter what you have.
Step 1 — Choose Your Settings
Currency
Select either USD (US Dollar) or CAD (Canadian Dollar). Choose the currency your financial statements are prepared in. All values you enter should use this same currency.
Most Recently Completed Fiscal Year
Enter the year your most recent complete fiscal year ended. For example, if your books are closed through December 31, 2024, enter 2024. Optionality will label the two columns on the page with this year and the prior year automatically.
⚠️ Use completed years only
Do not enter the current year unless it is fully complete. Partial-year figures will skew your valuation and benchmarking results.
Managing Your Financials: AI Tools and Section Controls
The Financials page gives you a set of powerful buttons to fill in, reset, or refresh your data. Here is what each one does and when to use it.
🤖 Modelize Buttons — Let AI Fill in the Gaps
Not sure about a specific number, or want a quick starting point? Optionality offers two AI-powered shortcuts at the top of the page:
| Button | What it does | When to use it |
|---|---|---|
| Modelize Financials | Generates AI estimates for all financial fields across every section, based on your company profile, industry, and size benchmarks | When you don't have financials handy and want a complete starting point before refining with real numbers |
| Modelize Remaining | Fills in only the fields you have not yet entered, using Revenue and EBITDA as anchors to make the estimates as accurate as possible | When you've entered your key figures (at minimum Revenue and EBITDA) and want AI to complete the rest intelligently |
💡 Best practiceEnter your real Revenue and EBITDA first, then click Modelize Remaining to let the AI intelligently fill in the rest. This gives you the best of both worlds — your most important figures are accurate, and the secondary fields are estimated from a solid foundation. Entering your real numbers always produces more precise results than fully modeled financials.
🗑️ Clear Section — Start Fresh on a Specific Section
Each section of the Financials page (Key Metrics, Income Statement, Balance Sheet, Cash Flow) has its own Clear Section button. Clicking it erases all values currently entered in that section so you can start over cleanly.
When to use Clear Section:
- You entered incorrect figures and want to wipe the section and re-enter from scratch
- You used Modelize and want to replace AI estimates in one section with your own real numbers without affecting the others
- You're cleaning up a prior year's data to reflect a new fiscal year
⚠️ Clear Section cannot be undone
Once you clear a section, all values in it are permanently removed. Make sure you have your source documents handy before clearing so you can re-enter the correct figures. There is no "undo" button.
🔄 Regenerate — Refresh the AI Estimates for a Section
Each section also has a Regenerate button. This re-runs the AI modelization specifically for that section, replacing its current values (whether manually entered or previously modeled) with a fresh set of AI-generated estimates.
When to use Regenerate:
- You updated your company profile (e.g., changed your industry, employee count, or revenue) and want the AI to recalculate one section to reflect those changes
- The modeled figures in one section look off and you want the AI to take another pass
- You cleared a section and want AI to fill it back in rather than entering numbers manually
ℹ️ Regenerate vs. Modelize Remaining
Regenerate works on a single section and overwrites whatever is there (including your own numbers). Modelize Remaining works across the whole page but only fills in fields you haven't touched. Use Regenerate when you want to refresh one section specifically. Use Modelize Remaining when you want to complete partially filled fields across the whole page.
Section: Key Metrics
These two fields are the most important numbers on the page. They power the most calculations across the platform, so enter them first and as accurately as possible.
📊 Revenue
What it is: The total amount of money your business earned from selling its products or services during the year — before subtracting any expenses. This is sometimes called Total Sales, Top Line, or Gross Revenue.
Where to find it:
- Bookkeeping software: Run a "Profit & Loss" (P&L) or "Income Statement" report → look for the top line labeled Total Income, Total Revenue, or Sales
- Tax return (Canada T2): Schedule 125, line "Sales and other revenues" → Total revenue
- Tax return (US Form 1120): Line 1c "Total receipts"
- Year-end financials: Top of the Income Statement / Statement of Operations
GAAP note: Under GAAP (ASC 606), revenue is recognized when it is earned, not necessarily when cash is received. If you use accrual accounting (which most accountant-prepared statements do), use the figure from your financial statements, not your bank deposits.
📈 EBITDA
What it is: Earnings Before Interest, Taxes, Depreciation, and Amortization. This is the most widely used measure of a company's operating profitability — essentially, how much cash profit the business generates from its core operations, ignoring financing and accounting effects.
EBITDA is the single most important number for business valuation. Buyers and investors use it to compare companies across different tax situations, debt structures, and accounting policies.
How to calculate it:
Or alternatively: Operating Income + Depreciation & Amortization
Where to find it:
- Bookkeeping software: Many tools (QuickBooks, Xero) can generate an EBITDA report, or you can calculate it from the P&L
- Accountant-prepared statements: Often shown as a sub-total on the Income Statement; if not shown explicitly, calculate it using the formula above
- Your accountant: Simply ask "What was our EBITDA for 2024?" — they will know
Example: Your business had: Net Income $100K + Interest Expense $15K + Taxes $20K + Depreciation $25K = EBITDA $160K
Tip: If your EBITDA is negative (you're not yet profitable), enter a negative number using a minus sign, e.g., -45000.
Section: Income Statement
The Income Statement (also called the Profit & Loss Statement or P&L) shows how your business performed over the year — what you earned and what you spent. These fields follow the standard GAAP income statement structure from top to bottom.
💰 Gross Profit
What it is: Your Revenue minus the direct costs of delivering your product or service (called Cost of Goods Sold or Cost of Revenue). It represents how much money is left over after paying for what it directly cost to make or deliver what you sold.
What counts as Cost of Goods Sold (COGS)?
- Product business: Raw materials, manufacturing labor, packaging, shipping costs
- Software/SaaS: Hosting costs, third-party licenses, customer success directly tied to delivery
- Service business: Direct labor costs for delivering the service (contractor fees, direct employee wages)
- Retail: Wholesale cost of the inventory you sold
Where to find it: On your P&L report, look for the line "Gross Profit" or "Gross Margin." It appears after Revenue and after the COGS section.
🔬 Research and Development (R&D)
What it is: Money spent on creating new products, improving existing products, or developing new technology. For many companies — especially software, biotech, and manufacturing — this is a significant expense. If your business doesn't do formal R&D, enter 0.
What counts as R&D?
- Salaries for engineers or scientists working on new product development
- Software development costs (if expensed, not capitalized)
- Lab supplies, prototype materials
- SR&ED (Scientific Research & Experimental Development) expenditures in Canada
- Any amounts claimed on IRS Form 6765 (US R&D tax credit)
Where to find it: On your P&L under "Operating Expenses," look for lines labeled Research & Development, Product Development, or Engineering.
Note: Under GAAP (ASC 730), most R&D costs are expensed as incurred, not capitalized. Use the expensed amount from your P&L, not any capitalized software costs from your balance sheet.
What it is: A non-cash accounting charge that spreads the cost of a long-term asset over its useful life. Think of it this way: if you buy a $50,000 piece of equipment that will last 10 years, GAAP says you can't deduct the full $50K in year one — instead, you recognize $5,000 per year as an expense (straight-line depreciation).
- Depreciation: Applies to physical (tangible) assets — equipment, vehicles, computers, furniture, leasehold improvements
- Amortization: Applies to intangible assets — patents, trademarks, acquired customer lists, software licenses, goodwill
Where to find it:
- P&L report: Look for "Depreciation," "Amortization," or "Depreciation & Amortization" under Operating Expenses
- Cash Flow Statement: D&A is always listed as an add-back under "Cash from Operations" — this is often the easiest place to find the total
- Tax return: CCA (Capital Cost Allowance) on Canada Schedule 8, or depreciation schedules on US Form 4562
🏭 Operating Income
What it is: Also called EBIT (Earnings Before Interest and Taxes) or Operating Profit. This is your profit from core business operations after all operating expenses — but before accounting for how the business is financed (interest) or taxed.
Operating Income = Gross Profit − Operating Expenses (SG&A, R&D, D&A, etc.)
Where to find it: On your P&L, it typically appears as a subtotal after all operating expenses and before "Other Income/Expense" items like interest. It may be labeled Operating Income, Income from Operations, or EBIT.
Example: Gross Profit $650K − Salaries $300K − Rent $50K − Marketing $80K − D&A $22K = Operating Income $198K
🏦 Interest Income
What it is: Money your company earned from having cash sitting in interest-bearing accounts (savings accounts, money market accounts, GICs, bonds). For most small businesses, this is a small number or zero.
Where to find it: On your P&L under "Other Income" or "Non-Operating Income" — labeled as Interest Income, Investment Income, or Bank Interest Earned. Also visible on your bank or investment account statements.
Note: If your company had no interest-bearing savings or investments, enter 0.
💳 Interest Expense
What it is: The cost of borrowing money — interest paid on loans, lines of credit, mortgages, bonds, or other debt. This is the opposite of Interest Income.
Where to find it:
- P&L report: Under "Other Expenses" or "Non-Operating Expenses" → Interest Expense or Finance Costs
- Loan statements: Your bank or lender annual statements show total interest paid
- Tax return: Interest paid is deductible and often listed separately
-15000) since it is a cost, not income. The app uses negative numbers to represent expenses in this field.📋 Income Before Taxes
What it is: Also called Pre-Tax Income or EBT (Earnings Before Tax). This is your profit after all revenues and expenses — including interest — but before you subtract your income tax bill.
Where to find it: On your P&L, look for the subtotal just above your income tax expense line. It may be labeled Income Before Income Taxes, Pre-Tax Profit, or Net Income Before Taxes.
🏆 Net Income
What it is: Also called Net Profit, Bottom Line, or Net Earnings. This is the final profit (or loss) after everything — all revenues minus all expenses, including income taxes. If this number is negative, your business ran at a loss for the year.
Where to find it:
- P&L report: Very last line, labeled Net Income, Net Profit/Loss, or Net Earnings
- Tax return (Canada T2): Schedule 125, line "Net income (loss) for income tax purposes"
- Tax return (US Form 1120): Line 28 "Taxable income"
-32000). This is completely normal for early-stage or growth-phase companies and will be treated appropriately in the platform's analysis.Section: Balance Sheet
The Balance Sheet is a snapshot of your company's financial position at a specific point in time — usually the last day of your fiscal year. It follows the fundamental accounting equation:
Optionality captures the key components of the Balance Sheet to help assess your company's financial health and borrowing capacity.
🗂️ Total Current Assets
What it is: The total value of everything your company owns or is owed that could be converted to cash within the next 12 months. "Current" means short-term — you expect to use it up or convert it to cash within a year.
What's included in Current Assets?
- Cash and cash equivalents: Money in your bank accounts, petty cash
- Accounts receivable: Money customers owe you for invoices you've sent but haven't been paid yet
- Inventory: Products you have in stock, ready to sell
- Prepaid expenses: Things you've paid for in advance (e.g., insurance premiums, prepaid software subscriptions)
- Short-term investments: GICs or bonds maturing within a year
Where to find it: On your Balance Sheet, look for the section labeled "Current Assets" — find the subtotal at the bottom of that section: Total Current Assets.
🏢 Total Non-Current Assets
What it is: The total value of everything your company owns that is long-term in nature — not expected to be converted to cash within a year. These are the durable assets that help you operate over the long run.
What's included in Non-Current Assets?
- Property, Plant & Equipment (PP&E): Office buildings, manufacturing equipment, computers, vehicles — shown net of accumulated depreciation
- Intangible assets: Patents, trademarks, brand value, customer relationships (acquired)
- Goodwill: Recorded when your company acquired another business for more than its book value
- Long-term investments: Shares in other companies, bonds maturing in more than a year
- Right-of-use assets: The value of leases under GAAP ASC 842 (office leases, equipment leases)
Where to find it: On your Balance Sheet, below the "Current Assets" section — look for "Non-Current Assets" or "Long-Term Assets" and its subtotal: Total Non-Current Assets.
⏱️ Short Term Debt
What it is: Money your business owes to lenders that must be repaid within the next 12 months. This includes the current portion of any long-term loan (i.e., the installments due in the next year).
What's included?
- Bank line of credit balance outstanding
- Current portion of a term loan (the principal payments due within 12 months)
- Short-term loans from shareholders or related parties due within a year
- Credit card balances carried on business cards (if treated as debt)
Where to find it: On your Balance Sheet, under "Current Liabilities" — look for lines labeled Short-Term Borrowings, Current Portion of Long-Term Debt, Bank Loan, or Line of Credit.
📆 Total Current Liabilities
What it is: The total of everything your business owes that must be paid within the next 12 months. This is the broadest measure of your short-term obligations and includes Short Term Debt plus all other current liabilities.
What else is included (beyond Short Term Debt)?
- Accounts payable: Money you owe suppliers and vendors for goods/services already received
- Accrued liabilities: Expenses you've incurred but not yet paid (wages owed to employees, utilities, taxes payable)
- Deferred revenue: Money you've received from customers but haven't yet earned (e.g., annual subscriptions paid upfront)
- Sales tax payable, payroll taxes payable
Where to find it: On your Balance Sheet, the subtotal at the bottom of the "Current Liabilities" section: Total Current Liabilities.
🏦 Long Term Debt
What it is: Money your business owes to lenders that does not need to be repaid within the next 12 months. This is the remaining balance on loans that extend beyond one year.
What's included?
- Term loans with maturities of more than one year (net of the current portion)
- Commercial mortgages on business property
- Government loans (e.g., BDC loans, SBA loans) with multi-year terms
- Shareholder loans due in more than a year
- Bonds payable maturing beyond one year
Where to find it: On your Balance Sheet, under "Non-Current Liabilities" or "Long-Term Liabilities" — look for Long-Term Debt, Term Loan (non-current portion), or Mortgage Payable.
📊 Total Non-Current Liabilities
What it is: The total of all your company's obligations that are due in more than 12 months. This is the broadest measure of your long-term financial obligations and includes Long Term Debt plus any other non-current liabilities.
What else is included (beyond Long Term Debt)?
- Deferred tax liabilities: Taxes owed in the future due to timing differences (e.g., accelerated depreciation)
- Lease liabilities (long-term portion): Your remaining long-term lease obligations under ASC 842
- Pension obligations, post-retirement benefits
- Long-term deferred revenue
Where to find it: On your Balance Sheet, the subtotal at the bottom of the "Non-Current Liabilities" or "Long-Term Liabilities" section.
Section: Cash Flow Statement
The Cash Flow Statement tracks the actual movement of cash in and out of your business, separated into three categories: Operations, Investing, and Financing. Optionality captures the most critical investing activity item.
🔧 Additions to Property, Plant and Equipment (Capital Expenditures / CapEx)
What it is: Money your business spent to buy, build, or significantly improve long-term physical assets. This is often called CapEx (Capital Expenditures). Unlike operating expenses (which hit your P&L immediately), CapEx is capitalized on the Balance Sheet and depreciated over time.
What counts as CapEx?
- Purchasing new equipment, machinery, or tools
- Buying or renovating a commercial building
- Buying vehicles for business use
- Building out a new office (leasehold improvements)
- Purchasing or developing internal-use software (if capitalized under ASC 350-40)
Where to find it:
- Cash Flow Statement: Under "Investing Activities" — look for Purchase of Property, Plant & Equipment, Capital Expenditures, or Additions to PP&E
- Tax return (Canada): Schedule 8 — capital additions column
- Tax return (US): Form 4562 or asset schedules attached to the return
-25000). On the Cash Flow Statement, spending cash is always shown as a negative (cash outflow).⚡ Critical Step: Clicking "Next" to Apply Your Financials
🚨 Your financials will NOT be applied until you click the "Next" button at the bottom of the page.
This is the most important step in the entire Financials section. Entering your numbers alone is not enough — you must scroll to the bottom of the page and click the "Next" button to confirm your data and apply it across the platform.
Here is what happens when you click Next:
- All the financial values you entered (or modeled) are saved and locked in for your company profile
- The platform immediately uses your financials to recalculate your valuation, benchmarks, bankability score, and all other analyses
- The rest of the platform reflects your real data — not the placeholder estimates from an empty profile
If you need to step away before finishing, enter what you have, click Next to save your progress, and come back later to fill in the remaining fields. Clicking Next with partial data is always better than leaving the page without clicking it — at least your entered figures will be preserved and applied.
You will be moved forward in the profile workflow. You can always return to the Financials section from the sidebar under Company Profile → Financials to make edits. Each time you update your figures, remember to scroll down and click Next again to apply the changes.
Quick Reference: All Fields at a Glance
| Field | Section | Where to find it | Negative? |
|---|---|---|---|
| Revenue | Key Metrics | P&L — top line | No |
| EBITDA | Key Metrics | P&L subtotal or calculate from Net Income | Only if negative/loss |
| Gross Profit | Income Statement | P&L — after Revenue minus COGS | Only if negative |
| R&D | Income Statement | P&L — Operating Expenses | No (enter as positive) |
| Depreciation & Amortization | Income Statement | P&L or Cash Flow Statement | No (enter as positive) |
| Operating Income | Income Statement | P&L — subtotal after Operating Expenses | Only if negative/loss |
| Interest Income | Income Statement | P&L — Other Income section | No |
| Interest Expense | Income Statement | P&L — Other Expenses section / loan statements | Yes — enter negative |
| Income Before Taxes | Income Statement | P&L — above income tax line | Only if negative/loss |
| Net Income | Income Statement | P&L — very last (bottom) line | Only if negative/loss |
| Total Current Assets | Balance Sheet | Balance Sheet — Current Assets subtotal | No |
| Total Non-Current Assets | Balance Sheet | Balance Sheet — Non-Current Assets subtotal | No |
| Short Term Debt | Balance Sheet | Balance Sheet — Current Liabilities (debt lines) | No |
| Total Current Liabilities | Balance Sheet | Balance Sheet — Current Liabilities subtotal | No |
| Long Term Debt | Balance Sheet | Balance Sheet — Non-Current Liabilities (debt lines) | No |
| Total Non-Current Liabilities | Balance Sheet | Balance Sheet — Non-Current Liabilities subtotal | No |
| Additions to PP&E (CapEx) | Cash Flow | Cash Flow Statement — Investing Activities | Yes — enter negative |
Frequently Asked Questions
❓ I'm a sole proprietor. Where do I find these numbers?
If you file as a sole proprietor (Schedule C in the US, T1 Business schedule in Canada), you'll find your revenue and expense figures there. Your bank's business account year-end summary is also a helpful cross-reference. If you use bookkeeping software, run a Profit & Loss report for the calendar year.
❓ My fiscal year doesn't end on December 31. What do I do?
No problem. Use your actual fiscal year-end figures. If your fiscal year ends March 31, 2024, enter "2024" (or "FY2024") as your most recently completed fiscal year, and use the numbers from your March 2024 financial statements.
❓ I only have one year of financials. Is that okay?
Yes. Enter your available year and leave the prior year column blank (or use the Modelize Remaining feature to estimate prior year figures). One year of real data is still more accurate than fully modeled financials.
❓ Should I use cash-basis or accrual-basis numbers?
Optionality uses accrual-basis accounting (GAAP standard). If your bookkeeping is on a cash basis, your accountant-prepared tax return will typically have accrual adjustments. Use those figures. If you only have cash-basis records, enter those — it's better than nothing, and note the difference if asked.
❓ What if some fields don't apply to my business?
Enter 0 for any field that genuinely doesn't apply. For example, if you have no R&D spending, no interest income, and no debt — enter 0 for those fields. Do not leave them blank, as this can affect the platform's calculations.
❓ My EBITDA and Revenue are the only numbers I'm confident about. What should I do?
Enter Revenue and EBITDA, then click "Modelize Remaining". The AI will use your two anchor figures plus your industry and company size to estimate the remaining fields. This is the recommended approach when you have partial information.
❓ Can I update my financials later?
Absolutely. Return to Company Profile → Financials at any time to update your figures. We recommend refreshing your financials annually once your year-end books are closed.