Monthly - Management Accounts
- Pre-prep
- Capture changes to RR tracker: cancellations, contraction, expansion, new orders, PO receipts, invoicing, payments, revised start and end dates, changes to contracted periods
- Check that for all rows where Invoice Raised = “Y”, there is an actual invoice raised date (i.e. it is NOT empty)
- Capture changes to NR tracker: changes to current orders, new orders, expected invoice timing
- Capture % completion on each non-recurring revenue line item (perpetual licensing, implementation, training)
- Update people cost forecasts in the C&B tracker
- Update cost forecasts in the OH tracker
- Update PP tracker - rent, advance payments to IT subscriptions/systems/licenses, advance payments to COS suppliers
- Ensure all customer and supplier invoices received for the relevant period end are in the accounting system
- Ensure all cash is reconciled for the relevant period end i.e. cash on B/S matches the bank as of period end.
- Ensure management has updated CRM with the latest information (customer, NR value, RR value, sales stage, expected close date, comments, next steps)
- Ensure VC tracker is up to date on the PM tool by all relevant members of the management team
- P&L Actuals vs Budget - YTD
- Extract Trial Balance (BS and YTD P&L) into Google Sheets
- Add the following adjustments manually on Google Sheets (NOT in the accounting system)
- RR Deferred income - invoiced customer but service not rendered as of period end (Dr/Cr Deferred Income, Dr/CR RR Revenue). Based on input from 1a.
- RR Accrued income - RR completed but not invoiced to customers as of period end. Based on input from 1a.
- NR Deferred income - invoiced customer but work not completed as of period end (Dr/Cr Deferred Income, Dr/CR relevant NR Revenue line). Based on input from 1b+c.
- NR Accrued income - NR revenue work completed but not invoiced to customers as of period end. Based on input from 1b+c.
- Prepayments adjustment - cost invoiced or paid but the service has not been rendered by the supplier
- Accrued liabilities - costs incurred but invoices not received from the supplier as of period end
- Split out one-off costs incurred in period to date (e.g. Tern costs, NED costs, one-off legal fees)
- Compare against Budget YTD
- P&L (re)Forecast vs Budget - Full Year
- Ingest all the updated forecasts for the rest of the financial year (1a-1f above)
- Compared against Full Year Budget
- Cash flow
- Update opening balance (equal to closing cash balance for the period)
- Extract sales pipeline from CRM into Google Sheets. Ensure any orders won or lost or reflected in the CRM before extracting data.
- Verify inputs from RR tracker (1a)
- Verify inputs from the NR tracker (1b)
- Verify inputs from sales pipeline (2b). We need a toggle for CF forecasts with and without sales pipeline.
- Verify inputs from C&B tracker (2c)
- Verify inputs from OH tracker (2d)
- Sales pipeline
- Extract data from the CRM into Google Sheets
- Transform pipeline data into presentable format for the board meeting
- Overdue POs/invoicing
- Extract data from RR tracker and NR tracker
- Transform data into the following buckets
- NR outstanding - we have invoiced but payment is still outstanding and overdue
- NR to invoice - typically driven by project milestones awaiting completion OR we have reached the required milestone but we don’t have a PO to invoice
- RR outstanding - we have invoiced but payment is still outstanding and overdue
- RR to invoice - renewal start date is upcoming in the next 60 days (or worse, the start date has passed) and we don’t have a PO from the customer
Yearly - Audits
- All the activities under Monthly Management Accounts
- Add new sheets for each balance sheet accounts - to show supporting backup
- Cash - screenshot from the bank showing the bank balances
- Trade debtors - split by customer and shows aging
- Accrued income - split by customer and by RR+NR
- Prepayments - split by supplier
- Trade creditors - split by supplier
- Accrued liabilities - split by supplier
- Deferred income - split by customer and by RR+NR
- R&D spreadsheet
- R&D capitalised for the purposes of capitalisation and amortisation on the balance sheet. Only include R&D work completed by the developers.
- R&D claim - R&D capitalised + other amounts allowable under the local R&D tax credit regime
- Share the following with the auditors within 20 calendar days of year-end closing
- Signed bank authority letters
- Signed engagement letters
- Google Sheet with the TB with all the adjustments (Monthly Mgmt Accounts, 2b) and the supporting backup (point 2 above)
- Share the following within 45 calendar days of year-end closing
- R&D analysis
- Share the following within 60 calendar days of year-end closing
- R&D report