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accounting_ch_13-financial_reporting [2019/01/30 09:22]
127.0.0.1 external edit
accounting_ch_13-financial_reporting [2019/01/30 13:04] (current)
kcifreo
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-  +===== Key Reports ​=====
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-Key Reports ​ +
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-Income Statement/​Profit and Loss Statement  +
  
 +**Income Statement/​Profit and Loss Statement**
  
 This report will show the net income of the company in a chosen date range by taking the income account totals and subtracting the expense account totals. This report will show the net income of the company in a chosen date range by taking the income account totals and subtracting the expense account totals.
  
 +{{:​incomestatement.jpg?​nolink&​}}
  
- 
-{{::​incomestatement.jpg?​nolink&​|}} 
   * Heading - Company information such as logo, address, phone, etc.   * Heading - Company information such as logo, address, phone, etc.
   * Report Name - Name of the report currently being viewed   * Report Name - Name of the report currently being viewed
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   * Net Income - Total of all income less all expenses   * Net Income - Total of all income less all expenses
  
 +**Balance Sheet**
  
- +The purpose of this section is to explain the financial treatment of Earnings in Control. Cyrious uses two system accounts, **Current Earnings** ​ and **Retained Earnings**. Current earnings reflect the earnings in Control since the last yearly closeout. Retained Earnings reflect all earnings in Control //​prior// ​ to the last yearly closeout.
-Balance Sheet  +
- +
- +
- +
-The purpose of this section is to explain the financial treatment of Earnings in Control. Cyrious uses two system accounts, **Current Earnings** and **Retained Earnings**. Current earnings reflect the earnings in Control since the last yearly closeout. Retained Earnings reflect all earnings in Control //prior// to the last yearly closeout. +
- +
  
 Before explaining how Control manages these accounts, let us briefly review a simple earnings example. Before explaining how Control manages these accounts, let us briefly review a simple earnings example.
- 
- 
  
 Example #1: Example #1:
  
 +You sold a widget for $100. The customer paid cash in full. The widget cost $60 to buy, and was pulled in inventory.
  
 +The accounting transactions will look like this:
  
-You sold a widget for $100. The customer paid cash in full. The widget cost $60 to buy, and was pulled in inventory.+|   ​||__Debit__ ||__Credit__ || 
 +|**Income** ||   ||100|| 
 +|**Cash** ||100|| ​  || 
 +|**Expense** ||60|| ​  || 
 +|**Inventory** ||   ||60||
  
 +If this were the only transaction for the day, our (simplified) Income Statement would look like:
  
 +|**Income** ||$100||
 +|**Expenses** ||$60||
 +|   ​|| ​  ||
 +|**Net Profit** ||$40||
  
-The accounting transactions will look like this:+The net profit on this particular day would be $40. \\ A sample of the balance changes would be:
  
 +| ||__Debit__ ||__Credit__ ​  ||
 +|**Cash** ||$100|| ​  ||
 +|**Inventory** ||   ​||$60||
 +|   ​|| ​  ​|| ​  ||
 +|**Current Earnings** ||   ​||$40||
  
- 
-||   || __Debit__ || __Credit__ || 
-|| **Income** ||   || 100 || 
-|| **Cash** || 100 ||   || 
-|| **Expense** || 60 ||   || 
-|| **Inventory** ||   || 60 || 
-If this were the only transaction for the day, our (simplified) Income Statement would look like: \\ || **Income** || $100 || 
-|| **Expenses** || $60 || 
-||   ​|| ​  || 
-|| **Net Profit** || $40 || 
-The net profit on this particular day would be $40. \\ A sample of the balance changes would be: \\ ||   || __Debit__ || __Credit__ || 
-|| **Cash** || $100 ||   || 
-|| **Inventory** ||   || $60 || 
-||   ​|| ​  ​|| ​  || 
-|| **Current Earnings** ||   || $40 || 
 From this example we see that each transaction we will have an equal impact on net profit and earnings. Whether the impact is on Current earnings (meaning in this closeout year) or Retained earnings is just a matter of when we look at the balance sheet. From this example we see that each transaction we will have an equal impact on net profit and earnings. Whether the impact is on Current earnings (meaning in this closeout year) or Retained earnings is just a matter of when we look at the balance sheet.
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 In many accounting systems, closing the year records the year's current earnings into a Retained Earnings account and purges the Income and Expense history. This latter action results in the loss of historical information,​ and the inability to post any historical entries. In many accounting systems, closing the year records the year's current earnings into a Retained Earnings account and purges the Income and Expense history. This latter action results in the loss of historical information,​ and the inability to post any historical entries.
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- 
  
 Like many newer accounting systems, Cyrious Control works on a dynamic retained earnings system. Cyrious does not purge historical income, expense, or other GL data. The calculation of Current and Retained Earnings are done in real time on demand. Whenever the Income Statement is viewed, Net Income for the period is calculated. Whenever the Balance Sheet is viewed, current and retained earnings at the specified time are calculated. Like many newer accounting systems, Cyrious Control works on a dynamic retained earnings system. Cyrious does not purge historical income, expense, or other GL data. The calculation of Current and Retained Earnings are done in real time on demand. Whenever the Income Statement is viewed, Net Income for the period is calculated. Whenever the Balance Sheet is viewed, current and retained earnings at the specified time are calculated.
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 The effect of yearly closeout in Control is therefore simply to mark the point at which to move consider everything past as Retained Earnings and everything from then on as Current Earnings. The effect of yearly closeout in Control is therefore simply to mark the point at which to move consider everything past as Retained Earnings and everything from then on as Current Earnings.
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- 
  
 This report shows a summary of the company'​s assets, liabilities,​ and equity in a chosen date range. This report shows a summary of the company'​s assets, liabilities,​ and equity in a chosen date range.
  
 +{{:​balancesheetreport.jpg?​nolink&​}}
  
- 
-{{::​balancesheetreport.jpg?​nolink&​|}} 
   * Heading - Company information,​ such as logo, address, phone, etc.   * Heading - Company information,​ such as logo, address, phone, etc.
   * Report Name - Name of the report currently being viewed   * Report Name - Name of the report currently being viewed
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   * Balance - Balance of each account as of the date of the report   * Balance - Balance of each account as of the date of the report
  
- +**Trial Balance Report**
- +
-Trial Balance Report ​ +
- +
  
 This will show a detailed listing of all income and expenses by category of chart of accounts. This will show a detailed listing of all income and expenses by category of chart of accounts.
  
 +{{:​trialbalancereport.jpg?​nolink&​}}
  
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-{{::​trialbalancereport.jpg?​nolink&​|}} 
   * Heading - Company information such as logo, address, phone, etc.   * Heading - Company information such as logo, address, phone, etc.
   * Report Name - Name of the report currently being viewed   * Report Name - Name of the report currently being viewed
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   * Credit - The transaction is considered a Credit   * Credit - The transaction is considered a Credit
  
- +**Statement of Cash Flows Report**
- +
-Statement of Cash Flows Report ​ +
- +
  
 This report will show the company'​s cash position over a period of time, by taking the net income and subtracting the changes in assets (operating activities) and changes in liabilities and equity (financing activities). This report will show the company'​s cash position over a period of time, by taking the net income and subtracting the changes in assets (operating activities) and changes in liabilities and equity (financing activities).
  
 +{{:​statementofcashflowsreport.jpg?​nolink&​}}
  
- 
-{{::​statementofcashflowsreport.jpg?​nolink&​|}} 
   * Heading - Company information such as logo, address, phone, etc.   * Heading - Company information such as logo, address, phone, etc.
   * Report Name - Name of the report currently being viewed   * Report Name - Name of the report currently being viewed
   * Date Range - Start and end date of the report   * Date Range - Start and end date of the report
  
- +**GL Account Listing**
- +
-GL Account Listing ​ +
- +
  
 This will show a summarized list of all GL accounts used by your company. This will show a summarized list of all GL accounts used by your company.
  
 +{{:​gllistingsummaryreport.jpg?​nolink&​}}
  
- 
-{{::​gllistingsummaryreport.jpg?​nolink&​|}} 
   * Heading - Company information such as logo, address, phone, etc.   * Heading - Company information such as logo, address, phone, etc.
   * Report Name - Name of the report currently being viewed   * Report Name - Name of the report currently being viewed
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   * Export Name - Alternate name used for mapping this account into another accounting program   * Export Name - Alternate name used for mapping this account into another accounting program
  
- +**Print Journal Entry Detail Report**
- +
-Print Journal Entry Detail Report ​ +
- +
  
 This will show a detailed list of all GL accounts used by your company in a chosen date range. This will show a detailed list of all GL accounts used by your company in a chosen date range.
  
 +{{:​gllistingdetailreport.jpg?​nolink&​}}
  
 +This report'​s information is grouped by account type.
  
-{{::​gllistingdetailreport.jpg?​nolink&​|}} 
- 
- 
- 
-This report'​s information is grouped by account type. 
   * Heading - Company information such as logo, address, phone, etc.   * Heading - Company information such as logo, address, phone, etc.
   * Report Name - Name of the report currently being viewed   * Report Name - Name of the report currently being viewed
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   * Company - Customer if from an order, Vendor if from a bill   * Company - Customer if from an order, Vendor if from a bill
  
- +===== Closeouts ​=====
- +
-Closeouts ​ +
- +
  
 Closeouts are "​report actions",​ which is a fancy way of saying they are not really reports at all. Closing Out a period, and Backing up, and a few other features, frequently occur when you are printing reports. For this reasons, the creators of Control allow you to treat certain features like reports and add them into you report groups. Closeouts are "​report actions",​ which is a fancy way of saying they are not really reports at all. Closing Out a period, and Backing up, and a few other features, frequently occur when you are printing reports. For this reasons, the creators of Control allow you to treat certain features like reports and add them into you report groups.
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- 
  
 Closing the period is an important part of the financial tracking associated with Control. Because Cyrious is being used throughout the business, transactions often happen after the accounting day is through. Using the calendar day, month, and year can be fraught with problems when items are happening in the system outside of accountings control. Closing the period is an important part of the financial tracking associated with Control. Because Cyrious is being used throughout the business, transactions often happen after the accounting day is through. Using the calendar day, month, and year can be fraught with problems when items are happening in the system outside of accountings control.
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- 
  
 Closing the period provides an easy way to "​mark"​ the time when you are starting a new day, month, etc. Closing the period provides an easy way to "​mark"​ the time when you are starting a new day, month, etc.
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- 
  
 At a minimum, Cyrious recommends you perform a financial close out every day (called a Daily Closeout), every month (called a Monthly Closeout), and every year (you guessed it, called a Yearly Closeout). Additionally,​ most franchises require a Royalty Closeout, and you may wish to use the Weekly or Export Closeouts to track additional "​markers in time". At a minimum, Cyrious recommends you perform a financial close out every day (called a Daily Closeout), every month (called a Monthly Closeout), and every year (you guessed it, called a Yearly Closeout). Additionally,​ most franchises require a Royalty Closeout, and you may wish to use the Weekly or Export Closeouts to track additional "​markers in time".
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- 
  
 It is important to note, that closing a period does nothing to the underlying data. It just records the date and time, so Control (and you) know when to start counting from. There is no firm requirement to close any periods in Control, but the experience of most users is that it is easier to use the feature and then wonder if you have to reprint those reports for fear that something might have changed. It is important to note, that closing a period does nothing to the underlying data. It just records the date and time, so Control (and you) know when to start counting from. There is no firm requirement to close any periods in Control, but the experience of most users is that it is easier to use the feature and then wonder if you have to reprint those reports for fear that something might have changed.
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- 
  
 For more detail on why you will want to Closeout, see the Control Users Manual. For more detail on why you will want to Closeout, see the Control Users Manual.
  
 +===== Periodic Tasks =====
  
- +**Backup**
-Periodic Tasks  +
- +
- +
- +
-Backup ​ +
- +
  
 A not-so old proverb says, "In the long run there are two types of computer users in the world; those who back up and those who wished they did." Cyrious Control provides an easy mechanism to backup your data on a daily, weekly, or monthly basis. A not-so old proverb says, "In the long run there are two types of computer users in the world; those who back up and those who wished they did." Cyrious Control provides an easy mechanism to backup your data on a daily, weekly, or monthly basis.
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- 
  
 You can include a back up in your daily, weekly, or monthly closeout by adding it as a "​Report Action"​ under reporting setup. This will cause the backup to run in the background whenever you close the corresponding period. You can include a back up in your daily, weekly, or monthly closeout by adding it as a "​Report Action"​ under reporting setup. This will cause the backup to run in the background whenever you close the corresponding period.
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- 
  
 To setup the backup, including where the backup database is stored and how many copies of the backup to keep, navigate to Backup Options under System Setup. It's easy to do, and keep in mind that no amount of regret will fix that crashed hard-drive. To setup the backup, including where the backup database is stored and how many copies of the backup to keep, navigate to Backup Options under System Setup. It's easy to do, and keep in mind that no amount of regret will fix that crashed hard-drive.
  
 +\\