Checklist for Good Management Reporting in MYOB
It did not take long to find out that the primary objective in capturing the information in MYOB was to ensure that the transactions were allocated to the right GL accounts which enabled tax compliance. What did this really mean?
- No customer cards were set up
- No supplier cards were set up
- All Transactions were processed via Money spent or Money Received
- All transactions for the entire year were captured on the same date (one single day in the year)
- No Items were set up, thus all income was identified as a single type of income
As much as this satisfied the tax compliance requirements (in that all transactions were allocated to the correct GL account and could be verified for compliance), there was no room for further discussion. Discussion as to how the financial year progressed through analysis of customers, suppliers, sales, monthly analysis, top items, GP by item, referral sources, etc.
So what is the MYOB checklist that facilitates good management reporting?
- All customers including inter-company and cash sales customers have a customer card.
- All suppliers including inter-company and cash purchases have a supplier card.
- At least one item is set up for each income type/classification.
- Set up your sales agents, so you can track who sold what and when.
- Set up your referral sources. This allows you to track where your sales are coming from and gives you the ability to tweak certain “levers’ for sales generation.
- Set up your jobs, with start dates, budgets and establish a good accounts process that ensures that all income and expense line items are allocated to a job.
- Set up Categories for Cost Centres, especially if you have a multi-division organisation. Determine if your Cost Centres will reflect your various product groups or if they will reflect your divisions in the company (e.g. Sales Division, Marketing, Support, Accounts & Admin, etc.)
Once you have established what is important in using the accounting software to manage your company, it is important to establish an accounting process that supports these objectives. This process will bring consistency, accuracy and insight. However, for this to happen, accountability and discipline is imperative.
RubiHawk is a great tool that illuminates the progress or shortfalls at the click of a button, and makes your accounting process easier to control and manage with the assistance of scheduled reports. For instance, email a daily/weekly report to the stakeholder/s that shows any unallocated [to jobs] sales or purchase line items.
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