Reporting - Monthly & Yearly

• Monthly - Management Accounts
• Yearly - Audits

Monthly - Management Accounts

1. Pre-prep
1. Capture changes to RR tracker: cancellations, contraction, expansion, new orders, PO receipts, invoicing, payments, revised start and end dates, changes to contracted periods
1. Check that for all rows where Invoice Raised = “Y”, there is an actual invoice raised date (i.e. it is NOT empty)
2. Capture changes to NR tracker: changes to current orders, new orders, expected invoice timing
3. Capture % completion on each non-recurring revenue line item (perpetual licensing, implementation, training)
4. Update people cost forecasts in the C&B tracker
5. Update cost forecasts in the OH tracker
6. Update PP tracker - rent, advance payments to IT subscriptions/systems/licenses, advance payments to COS suppliers
7. Ensure all customer and supplier invoices received for the relevant period end are in the accounting system
8. Ensure all cash is reconciled for the relevant period end i.e. cash on B/S matches the bank as of period end.
9. Ensure management has updated CRM with the latest information (customer, NR value, RR value, sales stage, expected close date, comments, next steps)
10. Ensure VC tracker is up to date on the PM tool by all relevant members of the management team
2. P&L Actuals vs Budget - YTD
1. Extract Trial Balance (BS and YTD P&L) into Google Sheets
2. Add the following adjustments manually on Google Sheets (NOT in the accounting system)
1. 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.
2. RR Accrued income - RR completed but not invoiced to customers as of period end. Based on input from 1a.
3. 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.
4. NR Accrued income - NR revenue work completed but not invoiced to customers as of period end. Based on input from 1b+c.
5. Prepayments adjustment - cost invoiced or paid but the service has not been rendered by the supplier
6. Accrued liabilities - costs incurred but invoices not received from the supplier as of period end
3. Split out one-off costs incurred in period to date (e.g. Tern costs, NED costs, one-off legal fees)
4. Compare against Budget YTD
3. P&L (re)Forecast vs Budget - Full Year
1. Ingest all the updated forecasts for the rest of the financial year (1a-1f above)
2. Compared against Full Year Budget
4. Cash flow
1. Update opening balance (equal to closing cash balance for the period)
2. Extract sales pipeline from CRM into Google Sheets. Ensure any orders won or lost or reflected in the CRM before extracting data.
3. Verify inputs from RR tracker (1a)
4. Verify inputs from the NR tracker (1b)
5. Verify inputs from sales pipeline (2b). We need a toggle for CF forecasts with and without sales pipeline.
6. Verify inputs from C&B tracker (2c)
7. Verify inputs from OH tracker (2d)
5. Sales pipeline
1. Extract data from the CRM into Google Sheets
2. Transform pipeline data into presentable format for the board meeting
6. Overdue POs/invoicing
1. Extract data from RR tracker and NR tracker
2. Transform data into the following buckets
1. NR outstanding - we have invoiced but payment is still outstanding and overdue
2. 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
3. RR outstanding - we have invoiced but payment is still outstanding and overdue
4. 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

1. All the activities under Monthly Management Accounts
2. Add new sheets for each balance sheet accounts - to show supporting backup
1. Cash - screenshot from the bank showing the bank balances
2. Trade debtors - split by customer and shows aging
3. Accrued income - split by customer and by RR+NR
4. Prepayments - split by supplier
5. Trade creditors - split by supplier
6. Accrued liabilities - split by supplier
7. Deferred income - split by customer and by RR+NR
3. R&D spreadsheet
1. R&D capitalised for the purposes of capitalisation and amortisation on the balance sheet. Only include R&D work completed by the developers.
2. R&D claim - R&D capitalised + other amounts allowable under the local R&D tax credit regime
4. Share the following with the auditors within 20 calendar days of year-end closing
1. Signed bank authority letters
2. Signed engagement letters
3. Google Sheet with the TB with all the adjustments (Monthly Mgmt Accounts, 2b) and the supporting backup (point 2 above)
5. Share the following within 45 calendar days of year-end closing
1. R&D analysis
6. Share the following within 60 calendar days of year-end closing
1. R&D report