Profit Loss Statements

							Designing Starbuilder

 Custom Financials

        Brian Bixby
 Bixby Consulting Services, Inc.
                  OBJECTIVES
• Review the design of customized Financials Statements

• Discuss Parameter Review report and actual set up

• Understand column selections for financials

• Learn how to create financial statement budgets
                PREREQUISITES
• The following procedures and records are recommended:

     Printed General Ledger Chart of Accounts.

     Printed Trial Balance Report (Period and Year-To-Date)

     Printed Financial Statement Parameter Review reports

     Create a worksheet for initial design
                        OPTIONS
• OPTIONS available for producing financials statements:

     Auto Generate Parameters: This option allows you to
      automatically generate the parameters for the Balance Sheet and
      Profit and Loss Statements. Standard Financial Statements will be
      generated based on the chart of accounts and control types.

     Auto Generate the standard financial statements, then use
      Add/Modify Parameters to modify the standard statements.

     Create customized financial statements using the Add/Modify
      parameters option.
AUTO REGENERATE AND CHART OF
         ACCOUNTS
 Chart of Accounts – modifications to chart of accounts will cause the
  following informational error to appear:

                          CONCEPTS
•    There are three types of lines or concepts used in the financial
    statement parameters:

       HEADERS – Used to print long description lines on financial
        statements.
       DETAIL – These lines have the chart of account number
        referenced (ACCT SEL) and will show the dollar amount for the
        account number. You can have 1 or more account numbers
        referenced on a detail line. The detail line also has the TOTL SEL
        which is the total line number that the detail line will add into.
        Budgets can be added to detail lines.
       TOTAL – Used to provide a place to add detail lines and show
        totals. Total lines can also add into other total lines. Budgets can
        be added to total lines.
    STEP ONE – UP FRONT PLANNING
• Planning is KEY to CUSTOMIZED financial statements

• Decide how you want the completed financial statement to look

• Create the financial statement starting with totaling and work up to
  individual details

•   CREATE A WORKSHEET
     Use a worksheet to conceptualize and plan
     Use a worksheet to layout the statement prior to input
     Use a worksheet to determine subtotals and totals, details and
      summaries
     Use Auto generated parameter review report as guideline
     PARAMETER REVIEW REPORT

• Auto generate parameter review report

     Use as a guideline
     Illustrates how Standard report is created
         Based on account type/control type
     Use Standard system generated financial parameter review report
      as aide to set up and audit
         PARAMETER REVIEW REPORT
•   Parameter Review Report: Based on account type/control type
                     “AS” - Asset Account Control Types
•   105 Cash accounts for Payroll, General Account, savings and all other
          cash accounts.
    110 Accounts Receivable for all construction related work.
•   115 Accounts Receivable for non-construction related items. This
    would         include notes receivable, deposits, and other like accounts.
    120 Retainage being held on construction billings.
    125 All accounts that are set up for bad debt allowances.
•   130 Accounts that are established for the cost of jobs in progress under
    the completed contract method of accounting.
•   140 Accounts established for the posting of earned revenue under-
    billings amounts under the percentage of completion basis of
    accounting.
   PARAMETER REVIEW REPORT

• Parameter review report
   PARAMETER REVIEW REPORT


• Parameter Review Report
                WORKSHEET
2.0000   100 CASH-GENERAL                      D
2.0010   102 CASH- PAYROLL                     D
2.0020   105 PETTY CASH               CASH     D
2.0095                                             TOT AS
2.0030   110 ACCOUNTS REC.                     D
2.0040   115 ACCOUNTS REC RET         CUR/AS   D
2.0095                                             TOT AS
2.0050   120   NOTES RECEIVABLE                D
2.0060   140   MATERIAL INVENTORY              D
2.0070   145   OTHER INVENTORY                 D
2.0080   165   FURNITURE & FIXTURES            D
2.0090   166   ACC DEP- F & F         OTH/AS   D
2.0095                                             TOT AS
2.0100   200 ACCOUNTS PAYABLE                  D
2.0110   205 SUB PAYABLE                       D
2.0120   210 SUB RETAINAGE PAYABLE    CUR LI   D
2.0145                                             TOT LI
2.0130   215 NOTES PAYABLE                     D
2.0140   220 TAXES PAYABLE            OTH LI   D
2.0145                                             TOT LI
2.0150   300 CAPITOL STOCK                     D
2.0160   310 RETAINED EARNINGS                 D
2.0170   350 C/YPROFIT AND LOSS                D
2.0200                                             TOTLI/EQ
                      TOTALING
                                TRIAL BALANCE 03/31/2006

• BALANCE SHEET
                        100   CASH-GENERAL       \
                        102   CASH-PAYROLL        \ CASH & EQV.
• TOTAL ASSETS          105   PETTY CASH          /
                        110   ACCTS REC \
                        115   AR RET       / CURRENT A/R
                        120   NOTES REC      \                  TOT.
• TOTAL LIABILITIES     125   OTHER REC      / OTHER A/R        CUR.
                        130   EMPLY LOANS                      ASSETS
                        132   RESERVE BAD DEBT
• TOTAL EQUITY          135   PREPAID EXPENSES
                        140   MATERIAL INV
                        150   LAND
                        155   AUTO & TRUCKS
• TOTAL LIABILITIES     160   MACH & EQUIP
   AND EQUITY           161   ACC.DEP-MACH/EQUIP
        SUMMARY VERSUS DETAILS
    • BALANCE SHEET    TRIAL BALANCE 01/31/2006


• DETAILS:             100      CASH-GENERAL

 SUMMARY               102      CASH-PAYROLL
                       105      PETTY CASH
     VERSUS
                                         TOTAL CASH
       DETAILS
                       OR
• LINE ITEM DETAILS
   OR                  CASH     REFLECT SINGLE LINE
                                AMOUNT FOR ALL CASH
   SINGLE LINE TOTAL
                                ACCOUNTS COMBINED
       LINE NUMBERING
      BALANCE SHEET or INCOME STATEMENT

• ESTABLISH LINE NUMBERS
 Line numbering
     Balance Sheet = .0100 - .4700
     Income Statement = 1.0100 – 1.5600
 LEAVE ROOM FOR “GROWTH”
 LINE NUMBERING
 MUST ENTER ALL APPROPRIATE ZEROS
 LIMITS
      PARAMETERS ADD/CHANGE
          • BALANCE SHEET OR INCOME STATEMENT

• TOTALS
      ADD OR SUBTRACT
      DEBIT OR CREDIT

• DETAIL LINES
      EVERYTHING IS “POSITIVE”
      SYSTEM TAKES NATURAL SIGN AND CONVERTS
            TO A POSITIVE FIGURE
      TOTAL LINES PLUS OR MINUS
         ADD/MODIFY PARAMETERS
• Select TYPE – Balance Sheet or Income Statement

• Select FORMAT – Single Company or Consolidated

• Line Details:
        Select the line number you desire, hit tab key and the
          description will display and the action button will light up.
• Select the line type:
        Header
        Detail
        Total
ADD/MODIFY PARAMETERS
       ADD/MODIFY PARAMETERS


•   Additional Parameters

          Left margin – header lines only

          Start this line on a new page

          Skip lines – cosmetic spacing

          Divide by – total lines only – Percentage of
ADD/MODIFY PARAMETERS
        ADD/MODIFY PARAMETERS -
               DETAILS

• Accounts Detail – enter account(s) for this line.

• Summary presentation – multiple account numbers

• Account Details: Account Number
       CREDIT OR DEBIT
       Add or Subtract
ADD/MODIFY PARAMETERS -
       DETAILS
ADD/MODIFY PARAMETER -
       DETAILS
         ADD/MODIFY PARAMETERS –
                TOTALS

• Each detail screen requires Total Lines Detail

• Total Lines Detail
         CREDIT OR DEBIT
         Add or Subtract
TOTAL LINES DETAIL
        ADDING LINES TO EXISTING
              STATEMENT
• You can add additional lines to an existing financial statement
• Create line number between two lines already created

         Type in a new line number
         Finish filling in the related information on Add/Modify screen
          and then click “Add”
         Add Total Line
         Add Account(s) Detail
         Exit
PRINTING FINANCIAL STATEMENTS
• Inquiries and Reports - Print Financial Statements
• Select type of financial
        Balance Sheet
        Income Statement – Monthly
        Income Statement – YTD
        Ratio Analysis
        Source and Use Analysis

• Select Print Standard Columns or Create your own Columns

• Print All Lines
        • Parameter Review Report
        • Multiple Financial Statements
PRINTING FINANCIAL STATEMENTS
    PRINTING FINANCIAL STATEMENTS
•   Action Codes
             A = TIME FRAME
             B = CURRENT BUDGET
             C = MONTHLY TRANSACTIONS
             D = PERCENT OF
             E = VARIANCE DOLLARS
             F = VARIANCE PERCENT
             G = BLANK

•   TIMES: ONE through FOUR (Up to 4 time periods)

•   COL1 and COL 2
           D Percent of
           E Variance Dollars
           F Variance Percent
PRINT FINANCIAL STATEMENTS
     NON-STANDARD COLUMNS

• Identify Col1 and Col2

   Action Code D Percent of – Col1 divided by Col2


   Action Code E Variance Dollars – Col2 less Col 1

   Action Code F – Variance % - Col2 less Col1
    divided by Col2
PRINT FINANCIAL STATEMENTS
      MORE CUSTOMIZED
• DIVISIONALIZED OR DEPARTMENTALIZED
  FINANCIAL STATEMENTS

• CONSOLIDATED FINANCIAL STATEMENTS
   – Activate Company number field
                            BUDGETING
•   Budget Details
      No Budget
      Monthly Budget
      % Budget
      Annual Budget

•   Budget Details screen
      Select budget type
      Hit Details

•   Budget screen dependent upon budget selection
      Monthly – month by month input – amount or percent
      % - Enter desired % (not allowed for total lines) Percent of line or Percent
       of amount
      Annual – Amount entered will be divided by 12
BUDGETING
BUDGETING
                       EXPORT
• Export to Excel
                         Print to Screen then
• Export to PDF file     select Export icon
• Export to Excel
                       EXPORT   Select Export type
• Export to PDF file
    FINANCIAL RATIO REPORT

The Print Financial Statements:
·       Balance Sheet
·       Profit & Loss - Monthly
·       Profit & Loss - YTD
·       Ratio Analysis
·       Source & Use Analysis
FINANCIAL RATIO REPORT
                    FINANCIAL RATIO REPORT
•Current Ratio: Current Assets (control types 100 to 154) divided by Current
Liabilities (control types 200 to 259)
•Acid Test: Cash + Accounts Receivable (control types 100 to 114) divided by Current
Liabilities (control types 200 to 259)
•Working Capital: Current Assets (control types 100 to 154) minus Current Liabilities
(control types 200 to 259)
•Fixed Asset Newness: Net Book Value of Fixed Assets (control types (160 to 164) less
(165 to 169)) divided by Fixed Asset Cost Basis (control types 160 to 164)
•Current Assets to Total Assets: Current Assets (control types 100 to 154) divided by
Total Assets (control types 100 to 199)
•Total Liabilities to Net Worth: Total Liabilities (control types 200 to 299) divided by
Net Worth (control types 300 to 399 + Net Profit ((400 to 499) – (500 to 599))
             SOURCE AND USE ANALYSIS REPORT
•The Source And Use Analysis report provides you with a review of significant changes that have occurred in your
financial position during a selected time period. The analysis is based on a comparison of balance sheets at the
beginning and end of the accounting period. Increases and decreases are arranged to present the sources and uses of
funds during the time period.
QUESTIONS
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