Financial Reports for Sugariffic using Xero Software

This report provides financial reports for Sugariffic using Xero software including profit and loss, balance sheet, trial balance, aged payables and receivables, and inventory item summary. It also discusses other reports that can be extracted using Xero software.

Finance Assignment

1
By student name
Professor
University
Date: 25 April 2018.
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Executive Summary
A report has been prepared using the Xero software for owners of the company Sugariffic, Oliver
and Sydney. This is one of the start up wholesaler in the city. All the transactions for the month
August 2018 have been entered in the software Xero and several business reports has been
extracted which will be used for decision making. Some of these reports are profit and loss
account, the balance sheet, the trial balance, the inventory item summary, the payable ageing
summary and the receivables ageing summary as was asked in the question. There are many
other business and analytical reports and dashboards which can be extracted through this
accounting utility tool, Xero some of which are cash flow statement, the GST reconciliation
statement, overall outstanding report, the monthly and quarterly variance analysis. All of these
are used in business decision making and the use of Xero also ensures correct use of the GLs and
correct accounting treatment in books. A recommendation has also been given towards the end
on the use of these reports.
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Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Part A: Financial Reports of the client.........................................................................................................5
Profit & Loss............................................................................................................................................5
Balance Sheet..........................................................................................................................................6
Trial Balance............................................................................................................................................7
Aged Payables (detail).............................................................................................................................9
Aged Receivables (detail).......................................................................................................................10
Inventory Item Summary.......................................................................................................................11
Part B: Other Reports in Xero....................................................................................................................12
Cash Summary.......................................................................................................................................12
GST Reconciliation Report.....................................................................................................................13
References.................................................................................................................................................15
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Introduction
The financial statements has been prepared using Xero software for the client Oliver and Sydney
who are the owners of the start up in the city. The start up is called by the name Sugariffic.Xero
is a cloud computing tool which helps in the preparation of many accounting reports and
preparing regular books of accounts which includes cash and credit sales, cash transactions,
credit and debit notes, fixed assets accounting, payment account and receipts from customers.
The interactive dashboards on payables, receivables and inventory has been prepared using the
above mentioned software and shown below (Jefferson, 2017).
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Part A: Financial Reports of the client
Profit & Loss
Account Aug 2018
Sales – Chocolates 55,105.00
Sales – Drinks 4,320.00
Sales – Lollies 15,025.00
Total Trading Income 74,450.00
Cost of Sales – Chocolates 13,700.00
Cost of Sales – Drinks 1,440.00
Cost of Sales – Lollies 12,020.00
Total Cost of Sales 27,160.00
Gross Profit 47,290.00
Advertising 4,180.00
Printing & Stationery 480.00
Rent 2,200.00
Wages and Salaries 4,400.00
Total Operating Expenses 11,260.00
Net Profit 36,030.00
Profit and Loss
Operating Expenses
Cost of Sales
For the month ended 31 August 2018
Sugariffic
Trading Income
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Balance Sheet
Account 31 Aug 2018
Cash at Bank 72,570.50
Total Bank 72,570.50
Accounts Receivable 42,427.00
Inventory – Chocolates 3,575.00
Inventory – Drinks 360.00
Inventory – Lollies 8,580.00
Total Current Assets 54,942.00
Furniture and Fittings 16,200.00
Office Equipment 11,770.00
Total Fixed Assets 27,970.00
Total Assets 155,482.50
Accounts Payable 29,238.00
GST 214.50
Total Current Liabilities 29,452.50
New Business Bank Loan 35,000.00
Total Non-current Liabilities 35,000.00
Total Liabilities 64,452.50
Net Assets 91,030.00
Current Year Earnings 36,030.00
Ow ners Contribution 55,000.00
Total Equity 91,030.00
Equity
Bank
Balance Sheet
As at 31 August 2018
Current Assets
Fixed Assets
Current Liabilities
Non-current Liabilities
Sugariffic
Liabilities
Assets
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Trial Balance
Account Code Account Account Type Debit Credit 31 Aug 2017
230 Sales – Chocolates Sales 55,105.00 0.00
240 Sales – Lollies Sales 15,025.00 0.00
250 Sales – Drinks Sales 4,320.00 0.00
330 Cost of Sales – Chocolates Direct Costs 13,700.00 0.00
340 Cost of Sales – Lollies Direct Costs 12,020.00 0.00
350 Cost of Sales – Drinks Direct Costs 1,440.00 0.00
400 Advertising Expense 4,180.00 0.00
461 Printing & Stationery Expense 480.00 0.00
469 Rent Expense 2,200.00 0.00
477 Wages and Salaries Expense 4,400.00 0.00
600 Cash at Bank Bank 72,570.50 0.00
610 Accounts Receivable Current Asset 42,427.00 0.00
640 Inventory – Chocolates Current Asset 3,575.00 0.00
650 Inventory – Lollies Current Asset 8,580.00 0.00
660 Inventory – Drinks Current Asset 360.00 0.00
710 Office Equipment Fixed Asset 11,770.00 0.00
730 Furniture and Fittings Fixed Asset 16,200.00 0.00
800 Accounts Payable Current Liability 29,238.00 0.00
820 GST Current Liability 214.50 0.00
910 New Business Bank Loan Non-current Liability 35,000.00 0.00
970 Ow ners Contribution Equity 55,000.00 0.00
Total 193,902.50 193,902.50 0.00
Sugariffic
As at 31 August 2018
Trial Balance
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Aged Payables (detail)
Invoice Date Due Date Invoice Reference Current < 1 Month 1 Month 2 Months 3 Months Older
03 Aug 2018 30 Sep 2018 1,980.00 0.00 0.00 0.00 0.00 0.00
Total Fixxy Drinx 1,980.00 0.00 0.00 0.00 0.00 0.00
29 Aug 2018 30 Oct 2018 4,598.00 0.00 0.00 0.00 0.00 0.00
Total Parental Consent Required 4,598.00 0.00 0.00 0.00 0.00 0.00
03 Aug 2018 30 Sep 2018 4,730.00 0.00 0.00 0.00 0.00 0.00
03 Aug 2018 30 Sep 2018 7,700.00 0.00 0.00 0.00 0.00 0.00
14 Aug 2018 30 Sep 2018 10,230.00 0.00 0.00 0.00 0.00 0.00
Total Sw eet Treats 22,660.00 0.00 0.00 0.00 0.00 0.00
Total 29,238.00 0.00 0.00 0.00 0.00 0.00
Aged Payables Detail
Fixxy Drinx
Parental Consent Required
Sweet Treats
As at 31 August 2018
Sugariffic
-
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Aged Receivables (detail)
Invoice Date Due Date Invoice Number Invoice Reference Current < 1 Month 1 Month 2 Months 3 Months Older
20 Aug 2018 19 Sep 2018 SI-1000007 23,925.00 0.00 0.00 0.00 0.00 0.00
28 Aug 2018 27 Sep 2018 SI-1000011 3,382.50 0.00 0.00 0.00 0.00 0.00
Total Decadent D'Quay 27,307.50 0.00 0.00 0.00 0.00 0.00
27 Aug 2018 26 Sep 2018 SI-1000010 1,837.00 0.00 0.00 0.00 0.00 0.00
Total Lollies Online 1,837.00 0.00 0.00 0.00 0.00 0.00
21 Aug 2018 20 Sep 2018 SI-1000008 2,898.50 0.00 0.00 0.00 0.00 0.00
30 Aug 2018 29 Sep 2018 SI-1000013 10,384.00 0.00 0.00 0.00 0.00 0.00
Total Tactix 13,282.50 0.00 0.00 0.00 0.00 0.00
Total 42,427.00 0.00 0.00 0.00 0.00 0.00
Sugariffic
Tactix
Decadent D'Quay
Aged Receivables Detail
As at 31 August 2018
Lollies Online
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Inventory Item Summary
Item Code Item Name Opening Balance Purchases COGS Adjustm ents Closing Balance Sales
C1001 Milk Frogs 1kg box 0.00 7,750.00 7,625.00 0.00 125.00 30,805.00
L1003 Snakes 1.3kg bag 0.00 3,600.00 3,600.00 0.00 0.00 4,500.00
C1003 Clinkers 1kg bag 0.00 3,885.00 3,255.00 0.00 630.00 13,020.00
C1002 White Frog 1kg box 0.00 5,640.00 2,820.00 0.00 2,820.00 11,280.00
D1001 Lime Spider Fizzz 10 Lt case 0.00 1,800.00 1,440.00 0.00 360.00 4,320.00
L1001 Bananas 1.2kg bag 0.00 6,000.00 4,900.00 0.00 1,100.00 6,125.00
L1002 Jelly Beans 1.2kg bag 0.00 5,500.00 1,980.00 0.00 3,520.00 2,475.00
L1004 Sour Straps 1.5kg bag 0.00 5,500.00 1,540.00 0.00 3,960.00 1,925.00
Total Tracked 0.00 39,675.00 27,160.00 0.00 12,515.00 74,450.00
Total 0.00 39,675.00 27,160.00 0.00 12,515.00 74,450.00
Inventory Item Summary
For the period 1 August 2018 to 31 August 2018
Tracked
Sugariffic
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Part B: Other Reports in Xero
This software can be used to extract many other reports which can be useful for the management
of the company in tracking the performance on a daily basis. Two of these are shown below.
GST Reconciliation Report
GST Collected
GST Period GST Collected Adjustments Filed Unfiled
Opening Balance $0.00
1 Jul 18 - 31 Aug 18 $7,445.00 $7,445.00
Total $7,445.00 $0.00 $0.00 $7,445.00
GST Paid
GST Period GST Paid GST On Imports Adjustments Filed Unfiled
Opening Balance $0.00
1 Jul 18 - 31 Aug 18 $7,230.50 $0.00 $7,230.50
Total $7,230.50 $0.00 $0.00 $0.00 $7,230.50
GST Account Transactions
Date Transaction Amount
Total $0.00
GST Owing
Opening Balance $0.00
Plus GST Collected and Filed $0.00
Less GST Paid and Filed $0.00
Less Payments Made $0.00
Closing Balance $0.00
GST Account Summary
GST Owing $0.00
Unfiled GST $214.50
Balance at 31 August 2018 $214.50
GST Account Balance $214.50
GST Reconciliation
Sugariffic
From 1 July 2018 to 31 August 2018
Accruals Basis
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Cash Summary
Aug 2018 Income % Monthly Avg Variance
Income
Sales – Chocolates $21,516.00 42.5992% $10,758.00 100.0%
Sales – Drinks $4,752.00 9.4084% $2,376.00 100.0%
Sales – Lollies $13,200.00 26.1345% $6,600.00 100.0%
Inventory – Drinks $1,440.00 2.851% $720.00 100.0%
Inventory – Lollies $9,600.00 19.0069% $4,800.00 100.0%
Total Income $50,508.00 100.0% $25,254.00 100.0%
Less Operating Expenses
Cost of Sales – Chocolates $4,875.00 9.6519% $2,437.50 100.0%
Cost of Sales – Drinks $1,440.00 2.851% $720.00 100.0%
Cost of Sales – Lollies $9,600.00 19.0069% $4,800.00 100.0%
Printing & Stationery $528.00 1.0454% $264.00 100.0%
Rent $2,200.00 4.3557% $1,100.00 100.0%
Wages and Salaries $4,400.00 8.7115% $2,200.00 100.0%
Inventory – Chocolates $14,127.50 27.9708% $7,063.75 100.0%
Total Operating Expenses $37,170.50 73.5933% $18,585.25 100.0%
Operating Surplus (Deficit) $13,337.50 26.4067% $6,668.75 100.0%
Plus Non Operating Movements
Furniture and Fittings -$17,820.00 -35.2815% -$8,910.00 -100.0%
Office Equipment -$12,947.00 -25.6336% -$6,473.50 -100.0%
New Business Bank Loan $0.00 0.0% $17,500.00 -100.0%
Total Non Operating Movements-$30,767.00 -60.9151% $2,116.50 -1553.6735%
Plus Movements in Equity
Owners Contribution $0.00 0.0% $27,500.00 -100.0%
Total Movements in Equity $0.00 0.0% $27,500.00 -100.0%
Net Cash Movement -$17,429.50 -34.5084% $36,285.25 -148.0347%
Summary
Opening Balance $90,000.00
Plus Net Cash Movement -$17,429.50
Closing Balance $72,570.50
Cash Summary
Sugariffic
For the month ended 31 August 2018
Including GST
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The 2 other reports that have bee extracted is the GST reconciliation report and the cash
summary report (Alexander, 2016). There are other reports as well like which shows bills
which are outstanding and the invoices which are pending to be received. These reports helps
in the planning and forecasting activities and preparation of the budget.
Due to the increasing stress on the tax compliance and ever increasing regulations in the
competitive world, it becomes necessary for the company to pay all the taxes in time and thus
maintain a clear report or else they will have to pay fines and penalties. GST reconciliation
report is one such report which gives the details of what is outstanding, what are the GST
collections throughout the month and what is the outstanding payment which needs to be
done at the end of the month (Choy, 2018).
The other report which has been extracted is the cash summary report which gives the bird’s
eye view of what was the opening cash balance, what is the closing cash balance, what were
the receipts and payments during the month. In the above mentioned report, it also shows
what is the variance as compared to the last month or quarter (Goldmann, 2016). This report
can therefore help in the effective management of the cash.
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References
Alexander, F. (2016). The Changing Face of Accountability. The Journal of Higher Education, 71(4), 411-
431.
Choy, Y. K. (2018). Cost-benefit Analysis, Values, Wellbeing and Ethics: An Indigenous Worldview
Analysis. Ecological Economics, 145. Retrieved from
https://doi.org/10.1016/j.ecolecon.2017.08.005
Goldmann, K. (2016). Financial Liquidity and Profitability Management in Practice of Polish Business.
Financial Environment and Business Development, 4, 103-112.
Jefferson, M. (2017). Energy, Complexity and Wealth Maximization, R. Ayres. Springer, Switzerland .
Technological Forecasting and Social Change, 353-354.
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