Beruflich Dokumente
Kultur Dokumente
Instructions www.excel-skills.com
This template enables users to compile comprehensive monthly management accounts from any trial balance regardless of the structure of the accounts that are included in the trial balance. The management accounts are compiled by linking each account in the trial balance to a pre-defined reporting class code and all the amounts that are included in the management accounts are automatically calculated based on the linked class codes. The template includes an income statement, cash flow statement and balance sheet and compares the actual results to a forecast on a monthly and yearto-date basis. Prior year results are also included on all the financial reports. The following sheets are included in the template: Set-up - enter your business name, enter the current reporting year, select the appropriate financial year end period and select the current reporting period. The business name is used as a heading on all the sheets and the reporting period selections are used to determine the monthly periods that need to be included on the trial balance & forecast sheets and the periods on which the monthly and year-to-date calculations on the income statement, cash flow statement and balance sheet reports need to be based. Classes - this sheet contains all the pre-defined reporting classes that should be used to link the trial balance accounts on the Key sheet to the calculations on the income statement, cash flow statement and balance sheet. The classes on this sheet are provided in order to simplify the linking of accounts and are not linked to any of the other sheets. Changes that are made to the pre-defined classes on this sheet will therefore have no effect on the template calculations. Key - all the individual accounts that are included on the trial balance needs to be copied or entered onto this sheet and each account number then needs to be linked to the appropriate reporting class. All the calculations on the income statement, cash flow statement and balance sheet are automatically updated based on the reporting class that is linked to each account on this sheet. TBPY - all the account numbers and appropriate monthly account balances that are included in the trial balance for the prior year reporting period needs to be included on this sheet. The reporting classes in column A can be added to each account by simply copying the formula into all the rows that contain an account number. Note that the balance sheet balances for the year before the prior year reporting period also need to be specified in order to facilitate accurate cash flow calculations for the prior year financial period. TBCY - all the account numbers and appropriate monthly account balances that are included in the trial balance for the current reporting period need to be included on this sheet. The reporting classes in column A can be added to each account by simply copying the formula into all the rows that contain an account number. Forecast - a cumulative monthly forecast balance needs to be specified for each account that is included in the current period trial balance on the TBCY sheet. Note that all the forecasted balances need to be entered on a cumulative basis (the same basis which is used in order to compile any trial balance) in order for the forecast balances to be included correctly on the income statement, cash flow statement and balance sheet reports. Income, equity & liability account balances should be represented by negative values while expenses & asset balances should be represented by positive values. IS - this sheet contains an income statement which is automatically calculated based on the reporting classes that have been linked to the accounts on the Key sheet. No user input is required on this sheet but you can customize the report if necessary. The monthly & year-to-date periods for which the income statement is compiled is determined based on the period selections on the Set-up sheet. CFS - this sheet contains a cash flow statement which is automatically calculated based on the reporting classes that have been linked to the accounts on the Key sheet. No user input is required on this sheet but you can customize the report if necessary. The monthly & year-to-date periods for which the cash flow statement is compiled is determined based on the period selections on the Set-up sheet. BS - this sheet contains a balance sheet which is automatically calculated based on the reporting classes that have been linked to the accounts on the Key sheet. No user input is required on this sheet but you can customize the report if necessary. The monthly & year-to-date periods for which the balance sheet is compiled is determined based on the period selections on the Set-up sheet. ISMonth - this sheet contains a monthly income statement which is automatically calculated based on the reporting classes that have been linked to the accounts on the Key sheet. No user input is required on this sheet but you can customize the report if necessary. The monthly income statement is based on the actual results that are represented by the account balances on the TBCY sheet and the monthly periods for which the income statement is compiled is determined based on the period selections on the Set-up sheet.
Page 1 of 36
Page 2 of 36
The default reporting classes on which the management accounts are based have been included on the Classes sheet. These reporting class codes and descriptions have been provided for information purposes only and are not linked to any of the other sheets. We have only included this list of reporting classes in order to make it easier to understand to which income statement and balance sheet categories the default reporting classes that are used in this template refers to. Note: The default reporting classes that are used in this template are consistent with the default reporting classes which are used in the Financial Statements template. This consistency therefore makes it easy to use the Management Accounts template in conjunction with the Financial Statements template. When users initially link each trial balance account to a reporting class on the Key sheet, users should therefore refer to the Classes sheet in order to determine which reporting class code relates to which income statement or balance sheet category.
Page 3 of 36
Page 4 of 36
It is important to note that all the accounts that are included in the trial balance should be linked to a valid reporting class otherwise the template calculations may not be accurate and the management accounts may therefore not balance. We have added a formula in column D which should be copied for all the new rows that are added to the Key sheet. The formula in the Status column displays a nil value if the class code in column C is included on the income statement, cash flow statement or balance sheet and displays a value of 1 if the class code is not included on any of these reports (in column A on the IS, CFS or BS sheets). If a reporting code is not included on any of these sheets, it probably means that the code that has been specified in column C is invalid. Note: The column heading of the Status column will also be highlighted in red if an invalid status code is present in this column. All invalid status codes (with values of 1) should be investigated and amended if necessary in order to ensure that all accounts are linked to valid reporting class codes.
Note: If you create new main or sub reporting codes and you don't include the new codes on either the income statement, cash flow statement or balance sheet, the new reporting codes will be flagged as invalid on the Key sheet. We therefore recommend that you only create new reporting codes if a new line item is required on one of these reports. New Reporting Class Codes If you require additional lines to be included on the income statement, cash flow statement or balance sheet, you may need to create additional reporting codes as main income statement or balance sheet categories or as sub codes below the existing reporting class codes.
Page 5 of 36
Page 6 of 36
If the account category that you want to create forms part of the income statement or balance sheet and it is not provided for on the Classes sheet, you can create a new reporting code and link it to the appropriate accounts on the Key sheet. All new income statement codes should however start with "I-" and all new balance sheet codes should start with "B-". You should also ensure that the new code that you create does not clash with any of the existing reporting class codes.
Example: If we want to create a new reporting class code for short term loans, we would assign a code of "B-SLOANS" to this balance sheet category. The new code does not clash with any of the existing reporting class codes because there is no shorter class code which contains essentially the same characters. A new code of "B-LOANSH" will however clash with the long term loans reporting class ("B-LOAN") because the first 6 characters are the same (reporting classes which clash may lead to inaccuracies in the template calculations). We therefore recommend that you ensure that at least the first four characters of a new reporting class are unique when compared to the default reporting classes. Note: New reporting classes are essentially created when the appropriate classes are entered in column C on the Key sheet thereby linking the new code to the appropriate account number. It is not required to add the new reporting class to the Classes sheet but it may be a good idea to do so if you want other users to be able to easily understand to which income statement or balance sheet category each reporting class refers to. An unlimited number of new reporting class sub codes can also be created by simply linking the relevant accounts to the appropriate sub code. In terms of the standard template design, new sub codes may be required in order to increase the number of individual expense accounts which are included on the income statement or to add an additional line item to the cash flow statement. Example: The standard template provides for 21 individual expense accounts on the income statement which have been linked to 21 sub reporting classes - 19 accounts which have been linked to the "I-ADM" income statement class, 1 account which has been linked to the "I-ADV" income statement class and 1 account which has been linked to the "IOTX" income statement class. These sub codes have been created by simply adding a two digit number to the main reporting class code and the individual sub codes have then been included in column A on the IS sheet (which contains the income statement). We can therefore add 10 additional expense accounts to the income statement by simply linking sub codes "I-ADM20" to "I-ADM29" to the appropriate accounts on the Key sheet, inserting 10 new rows on the income statement, entering the new sub codes in column A and copying the formulas in all the other columns from one of the existing expense account rows.
Example: If we wanted to add an additional line item to the cash flow statement, the same principle would essentially be followed but the sub code that we would create would not necessarily be included as an individual item on the income statement. If we wanted to add back a profit on a revaluation which has been included in the "Other income" income statement category (with a main class code of "I-REVO"), we can simply link the appropriate account on the Key sheet to a sub class of "I-REVO01", insert the appropriate new row on the cash flow statement, enter the new sub code in column A and copy the formulas from one of the existing rows for a similar item. The individual account balance will then be included on the cash flow statement but the account will still form part of the Other Income line on the income statement.
Page 7 of 36
Page 8 of 36
You may notice that the TBPY sheet includes an additional column that has a column heading which has been formatted with an orange cell background and contains the date of the year end month which precedes the prior financial year. This column is required in order to produce accurate cash flow statement calculations for the prior financial year. It is not necessary to include a complete trial balance for this period in column D - you can only include the appropriate balance sheet account balances as at the end of this period (income statement accounts can be omitted). The trial balance will however only balance if the retained earnings balance as at the end of this period is included in the account which is linked to the retained earnings reporting class. Note: A trial balance usually only includes the retained earnings balance at the beginning of the appropriate financial period because the profit or loss for the current financial period is in effect included in the individual income statement account balances but because we are not including the income statement accounts in this column, the retained earnings account balance needs to be adjusted in order to reflect the retained earnings balance at the end of the financial period. This adjustment is therefore only required in this column - no adjustments are required for any of the other trial balances which form part of this template. Note: You can check the adjusted retained earnings balance by comparing it to the retained earnings account balance for the subsequent months on the TBPY sheet - the retained earnings balance in column D should be the same as the retained earnings account balances in columns E to P. This is because these columns include the retained earnings balance at the beginning of the prior financial year which will be the same balance as at the end of the month in column C.
A complete trial balance for the current financial period should be copied or entered onto the TBCY sheet. The account balances that are included on this sheet are used to update the "Actual" columns on the income statement, cash flow statement and balance sheet.
Page 10 of 36
Page 11 of 36
Page 12 of 36
Income Statement
The income statement on the IS sheet is automatically compiled based on the trial balances that are included on the TBCY, TBPY and Forecast sheets and the financial reporting periods that have been specified on the Set-up sheet. All the amounts in the Forecast columns are calculated from the Forecast sheet, all the amounts in the Actual columns are calculated from the TBCY sheet and all the amounts in the Prior Year columns are calculated from the TBPY sheet. The income statement is calculated automatically and no user input is required on this sheet. If you want to change the period for which the monthly and year-to-date balances are calculated, you need to select a new current reporting period from the list box in cell B12 on the Set-up sheet. The monthly section is based on the appropriate month which has been selected and the year-to-date section is based on all the months from the beginning of the financial year up to the selected period. Note that the financial year end month is also specified on the Set-up sheet. The calculated amounts for each individual line item on the income statement are based on the reporting classes that have been entered in column A. Most of these line items are based on main reporting classes but we have provided for sub classes to be included in the Expenses section in order to include expense items individually on the income statement. Expense Accounts The standard template provides for 21 individual expense accounts to be included on the income statement. All of the appropriate expense accounts have therefore been linked to 21 sub reporting classes on the Key sheet - 19 accounts have been linked to the "I-ADM" income statement class, 1 account has been linked to the "I-ADV" income statement class and 1 account has been linked to the "I-OTX" income statement class.
Page 13 of 36
Page 14 of 36
You can add an unlimited number of additional expense accounts to the income statement quite easily - simply insert the appropriate number of additional rows, enter a new reporting class sub code in column A, link the new reporting class to the appropriate expense account on the Key sheet and copy the formulas in columns B to M from one of the other rows in the expenses section. All the income statement calculations will be updated automatically and the description of the expense will be updated based on the expense account description which has been included on the Key sheet. Note: If you don't require all 21 expense line items which have been included in the standard template, you can delete the items that you do not require by simply deleting the appropriate rows on the IS sheet.
Page 15 of 36
Page 16 of 36
Page 17 of 36
Page 18 of 36
Roll Forward
The following steps need to be completed in order to roll the management accounts template forward for the next financial period: Save the workbook under a new file name in order to create an exact copy of the template which can be used for the next financial period (use the File Save As feature) . Open the TBPY sheet and copy the account balances in column P into column C. This step effectively transfers the prior financial period account balances into the period which precedes the prior financial period.
Page 19 of 36
Page 20 of 36
Troubleshooting
The following troubleshooting steps need to be completed if any of the balance sheets that are included on the BS sheet are not in balance: Check whether the total for the appropriate trial balance is nil (refer to the totals above the column heading row on the appropriate sheet). If the balance sheet in the Prior column does not balance, refer to the trial balance on the TBPY sheet; if the balance sheet in the Forecast sheet does not balance, refer to the Forecast sheet and if the balance sheet in the Actual column does not balance, refer to the TBCY sheet. Open the Key sheet and check whether there are any rows which do not contain a nil value in the Status column. If the status for any account number is 1, it means that the account has been linked to a reporting class which does not form part of the income statement, cash flow statement or balance sheet reports. This may therefore mean that the appropriate account has been linked to an invalid reporting class. All invalid reporting classes need to be amended and there should be no accounts on the Key sheet which contain a status of 1. Review all three trial balance sheets (TBPY, TBCY and Forecast sheets) and ensure that there are no "no key!" error messages in column A. If the Code column heading is highlighted in red, it indicates that a "no key!" message is present in the column. These error messages indicate that the appropriate account has not been included on the Key sheet and is therefore not linked to a valid reporting class. The errors can be fixed by adding the account to the Key sheet and linking it to a valid reporting class. Open the IS sheet and check whether all your expense accounts have been added to the Expenses section on the income statement. If an expense account is omitted, the appropriate balance sheet will not balance. Also make sure that all the expense accounts on the IS sheet have been added to the ISMonth sheet. If you encounter a #REF! error in the management accounts, it means that you've deleted a row which is used in the formulas that have been included in another row. As we stated earlier on in these instructions, you should rather hide a row instead of deleting it in order to remove the appropriate row from the management accounts. If you've deleted a row which you shouldn't have, you may have to revert back to the downloaded copy of the template or contact our support function for assistance. If your balance sheets all balance but your cash balance at the end of the period does not agree to the cash balance on the balance sheet, check that the retained earnings balance in the first column on the TBPY sheet equals the retained earnings for the other monthly periods on this sheet. If these balances are not equal, you may encounter an imbalance on the cash flow statement. If you've added new reporting classes to the template, check whether all of your new reporting classes have been included on the income statement, cash flow statement and balance sheet reports. All reporting classes that have been linked to accounts on the Key sheet should form part of the management accounts. Once you have completed the above steps and you still have an imbalance on any of your balance sheets, contact our Support function for assistance.
Page 22 of 36
Page 23 of 36
Page 24 of 25
Page 25 of 25