Manage Your Practice and Maximise Your Efficiency with the help of Sol-Est Accounts
Part 9: Income & Expenditure and Balance Sheet
Your Sol-Est program, when used correctly and to its full potential, is a very powerful accounting tool.
When the postings and reconciliations are completed properly, your reports & manual reconciliations will provide your accountant with everything they need to quickly and easily prepare your accounts for tax and submit your end of year audit to the Law Society. As an office manager or practitioner, the reporting facility in Sol-Est should be used to maximise the usefulness of the program and ensure the smooth running of the office.
This series of blog posts highlight a selection of the most important reports, which you should make a habit of running regularly.
The Income & Expenditure and Balance Sheet reports can be found here:
- Reports > Account Reports > Nominal Ledger > Balance Sheet / Income and Expenditure – enter a date up to which you wish to view the report
These are important accounting reports and together provide a full summary of your office’s financial position.
The Income and Expenditure shows your turnover, expenses and net surplus or deficit for the accounting period. Things to keep an eye out for include expenses that look too high or too low, the level of wages compared to income and whether your profit for the period can sustain your level of drawings.
The Balance Sheet will show the up to date position on your assets, liabilities and capital. Some basic accounting ratios can be applied to these figures and used to monitor cash flow and solvency.
CBS Ltd provide clients with a set of management reports every 2 months that include a summary of the information gleaned from these reports. If you would like to avail of this service, you can call CBS Ltd on 074 97 22918 to discuss your requirements.
We must stress that the usefulness of the reports is dependent upon the standard of posting to the system. Posting should be kept up to date, and manual reconciliations run each month to verify the accuracy of the data input to Sol-Est. Once your book-keeper has completed the monthly reconciliations, you should review those in conjunction with the reports below in order to keep your practice running efficiently.
If you do not use Sol-Est Accounts, you may be able to generate similar reports from your software. If you cannot, you should consider upgrading to Sol-Est to ensure you have can properly manage your practice and finances within the SAR.