The turnover sheet systematizes the balances and turnovers of Assets, Liabilities, Capital, Income and Expenses in separate accounts for a certain period. Some colleagues believe that it is not necessary for the turnover sheet to meet 100% of the four reporting forms. It is more important that the reporting forms are “honestly and faithfully” compiled. That is why it is not important for them, for example, that the short-term part of a bank loan is posted to an account for short-term liabilities to banking institutions, as long as this short-term part is separated “by hand” in the balance sheet. I do not want to argue with these colleagues, because from the point of view of the reporting form considered by itself, this is exactly so. My point of view, however, is different. For me, the turnover list of an enterprise should be a “mirror” of its activity. The accounts of his chart of accounts must be coded in an appropriate way that can correctly reflect the types: Assets, Liabilities, Capital, Income and Expenses. Each group of transactions should be clear to which accounts and how they are recorded. This is a prior process of making sense of the activity and the “honest and true” presentation subsequently in the report. The reporting forms themselves are “extracted” from the current accounting database, and each accounting account must be clear in advance where it will be reflected in the report. Some accounting systems offer automated compilation of the four reporting forms. In order for this to happen, the chart of accounts must be constructed in a manner suitable for the respective enterprise and all transactions must be accounted for, including those for reporting the short-term part of a liability, write-downs, revaluations, reclassifications, etc.
Although some of the accounting systems offer the preparation of Balance Sheet, OPR, OPP and OSK, many accountants also use MS Excel as a software with which to complete the work on the preparation of the report. This is because MS Excel offers the possibility to attach the “notes” to each of the articles in the Balance Sheet and ODR and, accordingly, to build a suitable “control” for comparison between the individual items and the corresponding notes. Most accountants have template files built for the respective enterprise and work directly with the turnover sheet and general ledger in MS Excel to prepare the report. And this is where the trouble begins!
If we want to save effort and use the form of the statements from the previous year, we have made formulas for connection with the turnover sheet, but unfortunately for us, in the current year we have several new accounts that reflect information on a new type of transactions that the enterprise carries out and such , which we no longer use. What about our formulas and templates? A saga of readjustment begins, which very often takes quite a long time, absolutely unjustifiably. This is the place to present our innovative solution. We decided to combine the convenience of MS Excel with an additional feature that was developed to the add-in for MS Excel – Adasoft.Office.Analytics .
What is this functionality?
This functionality enables you to prepare a Balance Sheet and Income Statement from a turnover sheet by “building” into MS Excel an “accounting language” for preparing reporting forms. The add-on makes it possible to describe in the “accounting language” from which accounts to take the information. For example: we assume that for the accounting of material costs the enterprise has several accounts that start with code 601: 6011, 6012, 60112, etc. In the OPR we write: “Take debit turnover for accounts 601%”, which will take the debit turnover of all accounts that begin with 601. What if next year we have 2 more accounts for materials 60123 and 60135, and we are not used for example 6012? The system will recognize the new accounts because they start with 601. A problem will arise if these new accounts do not have a material cost nature. Then the amount for material costs will not be correct, although this problem is also solvable. We just need to change: “Exclude 60123 and 60135” However, this is extra work and it is better to use a uniform methodology when encrypting accounts from the chart of accounts. This is what I meant in the first part when I said that accounts should very clearly reflect the specifics of the objects/transactions they report. This subsequently saves time in compiling the reports and automating this process. In some information systems, they do not work with the turnover of the expense and income accounts, and in practice the closing balances of the accounts are used. In this case, the entry will look like this: “Get Closing balance debit for accounts 601% .
How does the product work?
On initial installation, Adasoft.Office.Analytics is installed with the forms of the reports according to the NSS and the old mandatory chart of accounts configured.
Get the turnover sheet for the current year in MS Excel from your information system and put it in a sheet in the file in which you will prepare the report. In another sheet, put the turnover sheet from the previous year. Click the Analytics “tab” that appeared in the MS Excel menu and start “Generate Reports”. You can try topping up Balance. In the dialog box, select:
If you do not mark the option “Prepare the report in an existing sheet”, the system will create a new sheet for you with a filled-in “Balance” as in the template. If you already have a completed Balance sheet and you want to update it with the new values in the turnover sheet – “select fill in an existing sheet” and select the Balance sheet.
The option “Mark used accounts from the turnover sheet” is very convenient. When marking, the system copies the turnover sheet into a new sheet and colors all the accounts that have been used. When you press the “Process” key, you will fill in the corresponding form. This “processing” can be changed many times and it does not matter if there are new accounts in the turnover sheet or some of them are no longer used. If you are an accounting firm, you can easily and conveniently prepare reporting forms. When purchasing the module, you will receive a customized template according to the NSS, in which the reporting forms can be prepared in English or Bulgarian and automatically printed without zero lines. You can customize your templates according to your company’s needs. Such as a specialized report for the manager that monitors certain balances, turnovers and financial indicators. Our experience with various businesses shows that managers sometimes require statements that are a combination of parts of the income statement and the balance sheet. The new functionality is also convenient for setting various financial indicators to be calculated with the press of a key.
