Financial Health Reporting

Transcription

1 Financial Health Reporting Financial Health Reporting Table of Contents Recommended Reports and Accounts to Review 3 Standard List Tools 3 Order Lists 4 Booked Orders List 4 Booked Orders Compare List 5 Order Status List 6 Open Orders List 7 Sales List 8 Sales Compare List 9 Invoices 10 Balance Sheet Reports/Lists 11 Balance Sheet 11 Reconcile Bank and Credit Card Ledgers 12 Receivables 13 Ledger Reconcile 13 Open Receivables List 14 Payables 15 Ledger Reconcile 15 Where to dig deeper? 16 Vendor Payable List 17 Open Commission List 18 Sales Tax Payable List 19 Bill-Apply List 20 Order Costing List 21 Page 1

2 Financial Health Reporting Financial Health Reporting Table of Contents Order Costing List 21 Profit and Loss Reports 24 Profit and Loss Statement 24 Page 2

3 Financial Health Reporting Recommended Lists and Accounts to Review Although there is no required month or year end, there are certain Lists (reports) that are important for a business to review on a regular basis. These lists will help each business and their financial partners to determine the financial health of the company. It is recommended you run these lists routinely to make sure the financial health of your company is on track. When and how often these are run will be determined by your company. There are three types of lists to cover: 1. Those pertaining to Orders 2. Those pertaining to the Balance Sheet 3. Those pertaining to the Profit and Loss Statement Standard List Tools: The lists discussed in this document function in the same way. You can refer to the Navigation document on our website for full List details, but here are some helpful tips that are consistent for each list in this document. List Views are pre-set formatted lists. Review these before customizing your own list. Sort Arrow will indicate which column this list is sorted, and whether ascending or descending. Off On Filter icon will allow the filtering of information in the list based on what in formation is entered into the filter option. Some lists are already pre-filtered. Date filter: You can change the default date filter by selecting pre-set date Filters or clicking on the calendar to select a custom date. List Tool Option (wrench): You can add a column, group, or total footings. Expand Collapse Expand/Collapse: You can expand or collapse a group to see detail Print: You can print, , or export the list from the Print Icon. Page 3

4 Order Lists Booked Orders List Recommendation: Reviewing previously booked orders can show the value of the orders that were brought in during a given month. This list can also be used for financial forecasting. The booked orders list can be found on the ribbon menu under the customer tab. This list will show all the orders that have been booked (or entered). Defaults: Sorting: Descending Order number Filters: none Date: This Month List Options: Page 4

5 Order Lists Booked Compare List Create a Booked Orders Compare List to review by year and month to month how your company is progressing. Ribbon Menu: Order Group: Option: List Booked Compare Reviewing previously booked orders for this year and the previous two years shows the value of the orders that were entered during a given month and year. This list can also be used for financial forecasting. Page 5

6 Order Lists Orders Status List Recommendation: If the business is going to close orders, it is recommended that the business routinely review the list of open orders to determine which ones should be closed and which ones should remain open. Depending on what the business is using as a determining status to close an order, this list may represent future income and could be used for financial forecasting. Hints: The orders list shows all orders (defaults to open orders). You may choose to close the order once you physically remove the job jacket from the work in process area. You may also close orders once the order has been invoiced, or paid by the customer. You may decide an order is closed once all the vendor bills have been applied. Your definition of closed may be once all three things have occurred: customer invoice created, vendor bills have been applied and the customer has paid the invoice. Whatever the determining factors are for deciding when an order is closed, the list should be reviewed to make sure those orders that need to be closed are this will speed up multiple processes within the system if you limit the number of orders kept open. Defaults: Sorting: Descending Order number Filters: Status equals open Date: All List Options: Page 6

7 Order Lists Open Orders List Recommendation: Use the Orders Products list to show you a list of all information right down to the product level. This list will show all open orders sorted by order number. To show orders that have NOT been invoiced, you will need to filter the Complete column. Complete indicates the order HAS BEEN invoiced, therefore, the filter needs to be Complete is NOT checked to see orders that have not been invoiced. Click Apply Filter. NOTE: Based on the reason you need this report, you may want to view this report grouped differently (you will still need to filter the Complete column). The default Lists are: Page 7

8 Profit and Loss Customer Sales List Recommended: The customer sales report can be used to balance the Sales, Cost of Goods and Commission Expense both on a customer basis and on an order/invoice bases. All three of these ledger accounts have a column representing their totals on this report. This report can be used to verify how profitable the orders/invoices are for the business. The most common period is This Month. You can choose from one of the pre-determined time periods under the date selector or choose a custom set of dates to show the income and expenses for that time period. Tip: Additional columns are available so the report will be based on products only instead of products and freight. Use the Wrench Tool to make the following changes: Amount replace with Product Sales Cost replace with Product Cost Gross Margin replace with Product Gross Margin Gross Margin % replace with Product Gross Margin % Page 8

9 Sales Compare List Sales Compare List Ribbon Menu: Order Group: Option: List Sales Compare The Sales Compare List allows you to view at a glance the total number of Invoices by year and by month. This list includes the total of the Invoice, the cost and the gross margin percentage for three years. Remember: Add/remove and arrange columns to give you the best report possible! Use the Wrench to Save and name your view, if you want to retrieve it later. Be certain to give your list view a unique name! Page 9

10 Order Lists Invoices Recommendation: It is recommended that the business routinely review the list of open invoices and determine which ones should be closed and which ones should remain open. Depending on what the business is using as a determining status to close an invoice, this list may represent future income and could be used for financial forecasting. The invoice list shows all open invoices. Closed invoices can still be accessed by changing the status filter. Hints: You may choose to close the invoice once you physically remove the job jacket from the work in process area. You may also close invoices once it has been paid by the customer (in this case the list would contain all the invoices found on a Receivables list), you may close the invoice once all the vendor bills have been applied, or you may choose to close the invoice once vendor bills have been applied and the customer has paid the invoice. Whatever the determining factors are for deciding when an invoice is closed, the list should be reviewed to make sure those invoices that need to be closed are this will speed up multiple processes within the system if you limit the number of invoices kept open. Defaults: Filter Options: Sorting: Descending Invoice number Filters: Status equal open Date: All Page 10

11 Balance Sheet Reports/Lists Balance Sheet Recommendation: We recommend you review the balance sheet on a regular basis. This report totals assets (tangible or intangible things that have value that the company owns), liabilities (legal debts that the company owes others) and equity (net worth). Tip: From the Lists View, you can select either the Standard List or the Previous year Comparison. Defaults: Date: This Fiscal Year Page 11

12 Balance Sheet Reports/Lists Reconcile Bank and Credit Card Ledgers Recommendation: It is recommended you reconcile each Bank/Cash and Credit Card ledger listed on the Balance Sheet. This will verify the amounts showing on your financial statements are correct. In reconciliation, compare the transactions listed in each bank account with the transactions listed on the bank statements. This will allow the business to make sure that a payment or deposit has not been recorded twice or missed being recorded. Full instructions for Reconcile are found in the FAQ Knowledgebase document on our website. Defaults: Date: This Fiscal year Page 12

13 Balance Sheet Reports/Lists Receivables Ledger Reconcile Recommendation: You can do a quick review of the Receivables total by using the Ledger Reconcile List. This is found in the ribbon menu under the Accounting tab. The balance on this list can be compared to the balance of Accounts Receivable on the Balance Sheet. If they match, you are good to go. If they do not, you ll need to dig down to the detail level in the Open Receivable s Report. Balance Sheet: Page 13

14 Balance Sheet Reports/Lists Receivables - Open Receivables List Recommendation: You can verify your receivables showing on your balance sheet using the Customer Receivable List. The TYPES of receivables are: Accounts Receivable, Finance Charge Receivable, Customer Deposits, and Unallocated Receipts. These together should total the total balance of your receivables report. You will need to group the list by TYPE. How to: 1. Open your List views options and click the grouping box. 2. Click and Drag the header for Type into the green Grouped by area. The header will then look as follows: Continued... Page 14

15 Balance Sheet Reports/Lists Receivables - Open Receivables List continued... You can now see a break down by type to match the balance sheet. (If you have receivables on your books that were converted from your previous system- you will need to add together the Receivables and Invoice groups to match your total accounts receivable.) Balance Sheet: Page 15

16 Balance Sheet Reports/Lists Payables Ledger Reconcile Recommendation: You can do a quick review of the Payables and Accrued Commissions Payable totals by using the Ledger Reconcile List. This is found in the ribbon menu under the Accounting tab. The balances on this list can be compared to the balance of Accounts Payables and Accrued Commissions on the Balance Sheet. If they match, you are good to go. If they do not, you ll need to dig down to the detail level in the Open Receivable s Report. Balance Sheet: Page 16

17 Balance Sheet Reports/Lists Payables continued... Where to look to dig deeper: Balance Sheet Ledger Accounts Payable Accrued Commission Sales Tax Payable Unapplied Bills List Vendor Payables List Open Commission List Vendor Payables List change view to Sales Tax Payable Bill-Apply List Vendor Payable List Recommended: This is a listing of vendors and the details regarding how much and to whom you have a liability to. The total should match the Payables Ledger. To see totals on the screen, click the List views options (wrench) and select Footer box. Compare the total balance to the ledger balance on your Balance Sheet. Page 17

18 Balance Sheet Reports/Lists Payables continued... Open Commission List Recommended: This is a listing of open commissions due to all sales people. The total should match the Accrued Commission Payable Ledger. Compare the total balance to the ledger balance on your Balance Sheet. Page 18

19 Balance Sheet Reports/Lists Payables continued... Sales Tax Filing List Recommended: The Sales Tax Payable Ledger should balance with the Sales Tax Filing List. Filter the list by invoice date to match against your Balance Sheet. Compare the total balance to the ledger balance on your Balance Sheet. Page 19

20 Balance Sheet Reports/Lists Payables continued... Bill-Apply Recommended: This is a listing of new bills entered, but have not been applied to an order or account. To see totals on the screen, click the List views options (wrench) and select Footer box Compare the total balance to the ledger balance on your Balance Sheet. Page 20

21 Balance Sheet Reports/Lists Order Costing List From the Ribbon Menu: Tab: Order Control Group: List Option: Costs Explanation: This list is a managing tool that contains the order costing list and a view of the product details. It will provide you with a list of orders and their related costs broken down into Merchandise and Freight portions in order to balance the what you have billed your customer compared to what your vendor has billed you. Use this report to: * Reconcile your Merchandise Asset Ledger * Reconcile your Prepaid Freight Ledger * Analyze cost variances that may have impacted commissions * Determine orders that are ready to be billed. Recommended: If the business chooses to use the Merchandise and Prepaid Freight ledgers it is recommended that each be balanced or reconciled on a regular basis to ensure that the proper amount is posted to the expense ledgers. In general, these ledgers are used to hold funds between the time the vendor bill is applied and the time the customer invoice is processed. Funds are applied to the order and placed into these prepaid holding ledgers based on the actual vendor bill. Funds are then pulled from these accounts and posted to cost of goods ledgers on the Profit and Loss Statement at the time of processing the customers invoices based on the cost listed on the invoice at the time it is processed. It is important to verify that actual costs were accounted for on the customer s invoice so that the funds flow thru these ledgers appropriately. If balancing and researching these ledgers are a problem, it is strongly recommended that the business not use these ledgers for posting. As long as all of the invoices have been processed the invoice variance on this report should balance to the combination of the Merchandise and Prepaid Freight ledger accounts. Any variances shown should be researched and verified that there are orders still waiting on a vendor bill. Variances in cost should be adjusted in the customer s invoice and reprocessed. This report can also be used to determine which orders are ready to be invoiced. Continued... Page 21

22 Balance Sheet Reports/Lists Click for Order resource Click for Customer resource Click for Order Status Cost information input on the Order. Cost included on invoice to Customer. Cost vendor has billed you. A drill down view of the costs on the order and it s associated products is available by clicking anywhere on the detail line that is not a hyperlink. The List is then Grouped by Product and will show Product Costing. NOTE: If the Invoice Products (cost applied on invoice) does not match the Billed Products (cost your vendor billed you), something did not get posted properly. The above list is the perfect place to narrow down the error. Any variances shown should be researched. First verify all vendor bills have been received and applied. If still variances, the cost should be adjusted in the customer s invoice and re-processed. See next page. Continued... Page 22

23 Balance Sheet Reports/Lists Order Costing List continued... Research Variance cost on Invoice: 1. Review the products that have variances on the list above that is Grouped by Product. 2. In Invoice Manager, open the Invoice that has the variance. 3. Correct the Product s cost. 4. Process Invoice. Verify against Balance Sheet: Use the totals to balance back to Drop Ship Merchandise on the Balance Sheet. Balance sheet: Page 23

24 Profit and Loss Profit and Loss Statement Recommendation: It is recommended that the business review the Profit and Loss Statement on a regular basis. This report shows the income (money earned) and expenses (money spent or charged) for a given time period. The most common period is the current fiscal year. You can choose from one of the pre-determined time periods under the As of date selector or choose a custom set of dates to show the income and expenses for that time period. Page 24

25 Profit and Loss Profit and Loss Statement.continued Under the List, you can view your P & L using one of the following options: Standard: Standard is the default List which displays the P & L based on This Fiscal Year, the default date filter. Page 25

26 Financial Health Reporting This page intentionally left blank Page 26