Hi I have to (by close of business Monday) provide a copy of Management Accounts for the 12 month period to end showing the trading positions for both bars on 2 seperate documents.
Having never prepared Management Accounts I do not know what I am doing and I don't understand the trading positions bit.
Can anyone help as I am at a real loss, I am under the impression that sage will run all this for me, but I don't have a clue what I am doing
They expect me to know what I need to without having been shown
Using Sage Accounts.
Sorry I know I keep asking you guys really stupid questions, but I dont know who else to ask.... I am learning I promise, I will leave you in peace....eventually
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Sage will produce P&L and BS but not man accounts. It does depend on what they want to show, if simple P&L then you'd be ok but I think they would want more than that.
I do management accounts and use the TB from Sage to gather the info plus other stuff, so not all that easy, especially if you do not know what the client is expecting to see - they should atleast be against a forecast of some sort etc etc
This is a bit of a guess, but by 'both bars' I guess your client/employer runs a couple of pubs or something. In which case, they probably just need a separate P&L for each. Sales, COGS and expenses.
It is the bare minimum, but as a business owner it would be the first report you would want to see as it answers the questions: 1. Are they profitable? 2. Is one more profitable than the other? 3. Why?
I agree with Kris (well, and Philip). It depends on the business and what the management want to see really.
I used to do management reports for a company and as well as printing off P & L and BS, I inherited a spreadsheet on which was shown by month:- Turnover, and turnover for the same month the prior year (for comparison), gross profit and gross profit as a percentage of turnover and the same with net profit, number of invoices per month and the average value, outstanding debtors and creditors and a few other things that were relevant to the particular business. I never did a cash flow forecast, but would be a good idea if it doesn't take too long to prepare. Graphs are always a good idea, easy to see things at a glance.
You say they needed to see details for 2 bars? Are they accounted for separately in Sage? I would have a word with management and see exactly what it is they need to know, might be easier!
Pauline
Oh, and I agree with Quentin as well (he got there before me as I had to eat dinner in the middle of typing this!
-- Edited by Stardoe on Friday 15th of October 2010 06:38:11 PM
It depends a bit on what the clients actually requires, normally as other people have said you would have a Profit & Loss, Balance Sheet etc but also a cash-flow, details of debtor/creditors Accruals/Prepayment.
If you can it would be worth asking what sort of information they would like to include in the Management Accounts as it does depend on each business. Further breakdown of sales and expenditure would be a good idea. If you are using Sage then you would be able export the main nominal ledger balances to excel and produce further information using this information.
I cant help but feel ever so slightly wound up by this...apparently it previously has been done but they lost it!
Ok, So I can print off the aged debtors and creditors report (although there are MULTIPLE payments not been allocated for the last financial year )
Balance Sheet - sage will do this for me, although I am sure that there was an error with the balance brought forward from last year....fun!
Trading, Profit and Loss Account... I can pull this off sage (correct?) would I do one for the company and then one for each bar they are asking about (the bars are coded by department) - would the P&L count as the trading position for both bars, or would I need to give them more do you think.
Bank Reconciliation Statement - is this all the statements for that financial year?
There is no forcast/cash flow information passed over to me with regards to forcasting, so I am hoping that will make me exempt from doing anything like that?
The year end still hasnt been done (ended in Feb this year) i have been putting off doing it as i have never done one before and have been wanting to speak to the accountant, but he doesnt seem to want to talk to me and isnt answering my calls/emails.
Should I run the Year End before doing all this? What does running the year end actually do (I'm guessing it finalises everything and I know I can't enter anything in that year after that.......)
....Prepayments and accruals.....I am actually scared with this as the month end has never been done so none of the payments would have made their way across to the account? and there is no paperwork?
They are asking this info as they are trying to buy the building one of the bars is in, so I'm guessing they want the business and bars to look profitable....probably a good idea for me to sort out the creditors hay? I'm guessing I'll just take all the money out the I/C transfers and directors account (mentioned in a previous post) and allocate it against the invoices I know have been paid. I also have £7k or so in payments posted to accounts with no invoices against them.... Is it going to cause massive problems if i refund these to the bank account and then post them to the correct nominal code e.g. advertising, or shall i just leave well alone?
Thanks for all your help guys...if anyone wants to do it for me.... i'll buy you a cake
-- Edited by Nicola27 on Saturday 16th of October 2010 02:41:51 AM
I am facing similar problems with a client but at least their accountant is very helpful and he is doing the year end I really only have to tidy up the accounts. When you run year end in sage it will post everything what needed to p&l,to retained earnings, etc. Is it the accountant who will do depreciation,etc or is it you? I would think you will need these to get the correct figures on your BS. Balance sheet is the statement of financial position and their P&l is their income statement with other words... If you have payments to wrong accounts I would think you can just do corrections in sage.
Sounds a bit of a muddle! Do they know that the accounts are in such a muddle? If so, they can't possibly hope to get information from them that makes any sense. With regard to running the year end, I think you will have to do this before you can run BS & P&L for the current period, otherwise you don't get the date options. I would persevere with trying to talk to the accountant with regard to year end as they'll have to make adjustments which you will have to input before running the year end procedure.
I don't normally worry about accruals and prepayments on a monthly basis, only if they are likely to be large. You say you have payments posted to accounts (I assume you mean supplier or customer accounts) with no invoices against them. If there are a lot (and £7k sounds like a lot), there really should be the paperwork to back these up and you should try and get hold of these to enter.
Personally, if they know the accounts are in a bit of a pickle they are being unreasonable asking you for management accounts before everything is sorted. And if they don't know the accounts are in a pickle, then it's up to you to tell them. If the accounts aren't right, they aren't going to get a fair view of the company.
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