Profit Loss Statements
Profit Loss Statements document sample
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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 ???