why is this so complicated? how to achieve timely...

© 2016 Epicor Software Corporation

Why is This So Complicated? How to Achieve Timely Financials Kelli Gonzalez Professional Services Business Consultant

© 2015 Epicor Software Corporation © 2015 Epicor Software Corporation

2 © 2016 Epicor Software Corporation │ Eagle Online Academy #EpicorEOA

Kelli Gonzalez ― Professional Services Business Consultant

► Prior to joining Epicor: Management position at a large hardware and lumber retailer in Florida

► Facilitated the improvement of processes across the business including moving towards paperless processes

► Facilitated more effective procedures in the accounting area to increase accuracy and timeliness in AR, AP & GL

► Kelli’s Goal: To help Eagle customers manage by exception and make their businesses run more efficiently and effectively

© 2016 Epicor Software Corporation │ Eagle Online Academy

© 2016 Epicor Software Corporation

Why is This So Complicated? How to Achieve Timely Financials Kelli Gonzalez Professional Services Business Consultant



The contents of this document are for informational purposes only and are subject to change without notice. Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically disclaims, to the full extent of the law, any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of its date of publication, April 2016. The usage of any Epicor products or services is subject to Epicor’s standard terms and conditions then in effect. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Epicor, the EPICOR logo, Eagle, Grow Business, Not Software, are trademarks or registered trademarks of Epicor Software Corporation in the United States, and in certain other countries and/or the EU. Copyright © 2016 Epicor Software Corporation. All rights reserved.



► Do you find yourself anxiously awaiting your financial statement for days, weeks, even months?

► Is it too late once you get it?

► Do you question if the figures are accurate?

Why is this so complicated?



Agenda

1. Steps to close month and produce financials

2. Tasks that should be done daily, weekly and monthly

3. Reports to audit to ensure integrity of your numbers

4. Eagle applications to help you achieve timely and accurate financials

5. Format your financial statements to work for your business



Why is it important to get timely financials?

► Actionable information to make decisions/adjust business practices

► Measurable feedback on all the work you’re doing every day

► If you don’t get that measurable data, you can’t react to it; you’re not looking at the whole picture



On average, how long does it take for you to receive completed Financial Statements? A. Within the first week of the

following month

B. Within the first 3 weeks of the following month

C. We produce financials quarterly now



Why is it so difficult?

► Not using the automated tools Eagle can offer

► Waiting until the month is over to start reconciling, balancing

► Keeping accounts accurate – what reports can I use in Eagle to audit my figures?

► Manual journal entries



Are you currently using Eagle Accounts Payable and General Ledger?

A. I’m using AP, but not G/L or I’m using both but not using the automatic pass off.

B. I’m not using either.

C. Yes! And I can’t imagine my life without them!



Tools & Options to Make Production of Financials More Efficient & Accurate



General Ledger Pass off

► What information can be passed off?

► Control it with GLSET

► Save time and create audit trail

● Sales, Cash, Accounts Receivable charges and payments

● Accounts Payable vouchers

● Payroll if you use Eagle’s payroll application

● Cash Drawer information including over/short

● Gift Card transactions

● ITR – Inventory Transaction Register (including shrinkage)



System Audit Reporting Tools (SART)

► Doesn’t help to pass things off automatically if they aren’t accurate

► Maintenance Changes • Customer Maintenance (MCR) • Vendor Maintenance (MVR) • Inventory Maintenance (IMU) – enables you to see cost changes,

deletion of SKUs, etc.

► Archived Purchase Orders ► Spooled Report Archive ► Posted Accounts Payable Archive & Accounts Receivable Archive ► Inventory Transaction Register (ITR)



Accounts Payable



Accounts Payable

► Let Eagle create temporary vouchers in AP when a PO is received

► Accrued Accounts Payable and Accrued Inventory

► Received purchase orders awaiting vendor invoice

► Accurate AP total and no need to hold up closing the month



Purchase Variances

► How often does the vendor invoice not match the receiving?

► Are these variances being tracked?

► Are the corrected costs and quantities being corrected in inventory?



Advanced Receiving

► Creates two way street between Purchasing & Receiving and Accounts Payable

► Enables AP to correct SKU, quantity and cost errors

► Creates COGS adjustments as necessary

Purchasing & Receiving Advanced

Receiving

Accounts Payable



Store Use Expenses

► Store use items that you received on a purchase order and must relieve from inventory

► Option 1: use a unique shrinkage type

► Option 2: create customer account(s) and write off balance each month

► Cycle count these store use items to ensure timely write off



What should your team be doing… Daily? Weekly? Monthly?



Daily

► Cash

• Reconcile cash drawers to daily sales reports

• Clear bank deposits using online access

• Clear credit card deposits and customer payments

► Check reconciliation

► Create G/L entries for bank fees



Daily – Sub Ledger Audit Worksheet ► Audit your G/L Account balances to the Eagle sub ledger reports

G/L Account Eagle Report

Accounts Receivable Customer Aging (RAG)

Accounts Payable Vendor Open Items (RAOI)

Accrued Inventory Temp Voucher Listing (RATL)

Deposit Liability Open Orders (ROO)

Gift Card Liability Gift Card Viewer (GCV)

Inventory Inventory Valuation (RIV)

Accrued Inventory Accrued Payables

Temp Voucher Listing (RATL) Advanced Receiving (RRA)*

* Less vouchers that have begun being processed in sessions. See help documents or contact the advice line for more.

► Other items to audit:



What do I do if there is an imbalance?

► Review Daily Journal (DJ) and daily sales reports

► Contact the advice line ASAP if you cannot find the cause

► Give them details when you call

► Advice line is the medic and needs all your symptoms to resolve the imbalance quickly and accurately

► Record resolution in audit worksheet to create audit trail

► Review worksheet daily and weekly to ensure imbalances are resolved before month end



What your team should be doing…WEEKLY

► Review of sub ledger audit worksheet by controller

► Expenses

► Credit card charges



What your team should be doing … MONTHLY

► Payroll entries if using 3rd party system

• Use GGMU import from a saved Excel template file

► Store Use Expenses if using customer accounts

► Bank reconciliation

• Eagle Bank Reconciliation Viewer

• Eagle Check Reconciliation

• Auto create G/L transactions for cash drawer over/short



What your team should be doing … MONTHLY (continued)

► Review of Sub Ledger Audit Worksheet • Ensure all imbalances have been resolved

► Expenses – is it worth the wait to hold up financials? • Option to accrue expenses that invoices are received mid-month

• Or change the month it is booked in

► Journal Entries from the Accountant • Give them solid numbers to work off of sooner

• Ensure the entries don’t cause imbalances to the sub ledgers



Which strategy for creating more timely and accurate financials are you taking away today? A. For us, it’s about the tools! I plan to create my daily sub

ledger audit worksheet today and discuss with leadership what tools we aren’t using in Eagle to gather more information on if they’re a good fit for us.

B. Commitment! We’re already using a lot of these tools, but I plan to write up a commitment to start shaving back the number of days it takes us to produce a financial and stick with it.

C. I’ll be sending a copy of this PowerPoint to our accountant’s office with both a pre-written “I’m Sorry” and “Thank You” card. Both will have the number to the Eagle Advice Line included.



Financial Statement Formatting in Eagle

► Customize to fit your business’ needs

► Create different layouts as needed

► 3 columns to include: • PTD and YTD actuals

• Comparative data from prior years

• Compare to budgeted amounts

• Variances between actual and budget

• Ratios can be added



Summary

► Producing financial statements is a DAILY task, not a once a month responsibility

► AR and AP clerks affect the financials every day

► Don’t wait until month-end • Balance your accounts EVERY DAY to catch

the problem ASAP

• Clear your deposits and post your expenses throughout the month

► Set up a clear (and reasonable) plan to produce more timely financials



For more information on products featured in today’s presentation, or to find out how Epicor Professional Services can help you grow your business, please contact your Account Manager at 800.538.8597.

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