{"id":111632,"date":"2023-05-29t11:57:56","date_gmt":"2023-05-29t15:57:56","guid":{"rendered":"\/\/www.g005e.com\/?p=111632"},"modified":"2024-08-27t17:02:18","modified_gmt":"2024-08-27t21:02:18","slug":"wow-clients-with-trend-analysis","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/05\/29\/wow-clients-with-trend-analysis\/","title":{"rendered":"wow clients with trend analysis"},"content":{"rendered":"
<\/a>comparing the statement of operations with the balance sheet. bonus: the five numbers needed to run a better business.<\/strong><\/p>\n by ed mendlowitz<\/i> the sample statement of operations report below was created using excel to better illustrate and highlight the differences. this also enabled entering selected percentages, which cannot be done on most computer-generated financial statements. most computerized reports can be exported to excel with a couple of clicks.<\/p>\n more: <\/b>trends are all around us<\/a> | six kinds of loan covenants<\/a> | what\u2019s more profitable, raising or lowering prices?<\/a> | solos need plans for death, disability<\/a> | five ways to ward off fraud in not-for-profits<\/a> besides the percentages included below, a helpful percentage would be increase or (decrease) in monthly sales, or any other item you want to track. in the illustration, monthly purchases to sales and cost of goods sold percentages were tracked. <\/a><\/p>\n <\/p>\n <\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n details of the differences in the statement of operations and balance sheets shown above:<\/p>\n statement of operations<\/strong><\/p>\n month 3<\/strong><\/p>\n purchases: an extra $50,000 of purchases was received.<\/p>\n month 4<\/strong><\/p>\n purchases: $50,000 was received in prior month correcting the differences.<\/p>\n month 5<\/strong><\/p>\n general and administrative: a $12,000 payment was not made.<\/p>\n month 6<\/strong><\/p>\n overhead \u2013 fixed: a $25,000 payment for a flood damage repair was paid.<\/p>\n interest: the payment was not taken out of the bank account by the bank and was not corrected as of end of month 9.<\/p>\n month 7<\/strong><\/p>\n purchases: $50,000 was erroneously posted to inventory.<\/p>\n selling expenses \u2013 fixed: a $50,000 payment was made for an advertising program.<\/p>\n general and administrative: the $12,000 not paid in month 5 was paid.<\/p>\n month 8<\/strong><\/p>\n a $20,000 loan was made to a salesperson \u2013 this was posted incorrectly and not corrected as of end of next month.<\/p>\n balance sheet<\/strong><\/p>\n month 7<\/strong><\/p>\n cash: the $50,000 for the advertising program was paid.<\/p>\n inventory: $50,000 of purchases was posted to inventory rather than purchases.<\/p>\n month 8<\/strong><\/p>\n cash: $100,000 of accounts payable was not paid.<\/p>\n accounts payable: $100,000 of accounts payable was not paid.<\/p>\n month 9<\/strong><\/p>\n cash: $50,000 of accounts payable was still not paid.<\/p>\n accounts payable: $50,000 of accounts payable was still not paid.<\/p>\n for those whose software cannot transfer financial reports to excel<\/strong><\/p>\n a trend analysis can be prepared by many accounting programs. for those without that ability, excel and other spreadsheet programs can be used. what is required is to enter the balance sheet and profit and loss or trial balance amounts each month and then configure the spreadsheet program to transfer the monthly numbers into the trend format.<\/p>\n the trend format has each month side by side. we have found that setting up the spreadsheet with a section to enter the cumulative monthly information in consecutive columns, and a second section with the monthly data obtained by subtracting the previous month\u2019s cumulative amounts from the current month\u2019s amounts, will provide the monthly data in a neat column-by-column format.<\/p>\n just two minutes a month<\/strong><\/p>\n using spreadsheet output software creatively, deliberately and with focus for about two minutes a month can provide myriad data about the business or organization that can help the manager detect and react to incipient trends so they can lead the business rather than react to what has occurred after some damage has been done.<\/p>\n graphic demonstration of trends<\/strong><\/p>\n following is a graph that quickly illustrates the entire story: a retail business moved from a high-rent district to a lower-rent area. notice how the gross profit dropped. and after taking into account other costs, such as payroll and fixed expenses, the business is no longer viable.<\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n spending three minutes a day looking at five numbers can provide needed controls, insights and overviews.<\/p>\n every business is different, but all have similar concerns \u2013 controlling cash, sales, payroll, purchases, and understanding the break-even sales point.<\/p>\n comparing the statement of operations with the balance sheet. bonus: the five numbers needed to run a better business.<\/strong>
\n77 ways to wow!<\/i><\/a><\/p>\n
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n
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\nnote that inventory was not adjusted on a monthly basis and was typically changed annually when the annual financial reports and tax returns were prepared. this report is for an interim period.<\/p>\nsample: balance sheet<\/h3>\n
key to differences in trends<\/h3>\n
the quick way to review and analyze the p&l<\/h3>\n
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the quick way to review and analyze the balance sheet<\/h3>\n
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purpose of trend analysis<\/h3>\n
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the five numbers needed to run a better business<\/h3>\n
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\n<\/a>
\nby ed mendlowitz<\/i>
\n77 ways to wow!<\/i><\/a><\/p>\n","protected":false},"author":1341,"featured_media":99998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[3184,1905,1908,3120,3002],"tags":[],"class_list":["post-111632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisory","category-clients-and-service","category-management","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\n