Financial Analysis for Executives and Managers

Financial Analysis for Executives and Managers Cindy Bishop cbishop@commandalkon.com 205-879-3282

This session will focus on the tools Executives and Managers using COMMANDseries can rely on to measure and analyze the financial performance of your business and keep more in tune to the bottom line. Topics include: determining your problem customers and customers “on the edge”; understanding and utilizing reports for credit limit, sales, cost, and profit analysis; and identifying your top customers. (Intermediate/Advanced)

Analyzing Your Customers Analyzing Your Business MGT-013 Financial Analysis for Executives and Managers

Analyzing Your Customers • Topics include: • Aging Reports • Credit Limit Report • Credit Status Changes MGT-013 Financial Analysis for Executives and Managers

Aged Trial Balance • Identifies customer balances and how each balance is aged. • Can be run in Detail or Summary • Can also be run for specific minimum aging amounts, aging buckets or run with reference information. MGT-013 Financial Analysis for Executives and Managers

Detail Aged Trial Balance MGT-013 Financial Analysis for Executives and Managers

Summary Aged Trial Balance Can be run to include Last Payment, Contact Person, and Phone Number information. MGT-013 Financial Analysis for Executives and Managers

System configuration allows for spaces between the entries for hand written notes. Summary Aged Trial Balance Last payment & contact info. MGT-013 Financial Analysis for Executives and Managers

Enter report name if needed Run Report in Summary Format Click on “Other Options” Over 120 Days with $7500 Min. Balance Click on “Save Settings on Accept” MGT-013 Financial Analysis for Executives and Managers

Choose desired Aging Category for report. Enter Minimum Aging Amount. Over 120 Days with $7500 Min. Balance MGT-013 Financial Analysis for Executives and Managers

Only two customers in the Over 120 Day Aging Category with a Minimum Aging of $7500.00. Over 120 Days with $7500 Min. Balance MGT-013 Financial Analysis for Executives and Managers

Enter report name if needed Run Report using Summarized Detail Line Item Aging Click on “Other Options” Summarized Detail Line Item Aging With Reference Information Click on “Save Settings on Accept” MGT-013 Financial Analysis for Executives and Managers

Choose reference information to print on the report – one option or all three can be chosen. Summarized Detail Line Item Aging With Reference Information • Choose Appropriate Options for the Report MGT-013 Financial Analysis for Executives and Managers

Corresponding reference information for invoice item Each line item aged in corresponding aging category Summarized Detail Line Item Aging With Reference Information MGT-013 Financial Analysis for Executives and Managers

Enter report name if needed Run Report using Summarized Detail Line Item Aging (Lien) Summarized Detail Line Item Aging With Lien Timing MGT-013 Financial Analysis for Executives and Managers

PreLien and Lien Timing Shown Lien location tracking number Summarized Detail Line Item Aging With Lien Timing MGT-013 Financial Analysis for Executives and Managers

Credit Reports • Credit Limit Report • Credit Status Change Report MGT-013 Financial Analysis for Executives and Managers

Credit Limit Report • Displays information regarding credit limits, work in progress and total exposure whether over or under the defined credit limit. • Provides credit managers with a means of identifying potential credit problems before they occur. • Can be run for a percentage of credit limit such as for customers who are at or above their credit limit. MGT-013 Financial Analysis for Executives and Managers

Entered but not shipped Shipped but not invoiced Current A/R Balance Credit limit Total exposure and amount over or under the limit Credit Limit Report Must have Credit Checking in your license for these columns to show. MGT-013 Financial Analysis for Executives and Managers

Report could also be run for specific credit codes. To report on customers who have used 15 % + overtheir allowed credit, enter the percentages as shown here. Credit Limit Report Setup MGT-013 Financial Analysis for Executives and Managers

Credit Limit Report - 15% + Over Credit Limit 15 % + over credit limit MGT-013 Financial Analysis for Executives and Managers

Credit Status Change Report • Shows any changes in credit status for a specific date or range of dates. • Can be generated for a specific customer or range or customers. • Can be run for a specific current and previous credit code. MGT-013 Financial Analysis for Executives and Managers

Previous to current credit code shown along with credit effective date. Credit Status Change Report MGT-013 Financial Analysis for Executives and Managers

Analyzing Your Business • Topics include: • Sales Analysis • Top Customers • Cost and Profit Analysis MGT-013 Financial Analysis for Executives and Managers

Sales Analysis • Sales by Customer/Project • Quarterly Sales • Top Customer Report • By Sales • By Quantity • By Profit MGT-013 Financial Analysis for Executives and Managers

Sales by Customer/Project • Sales by Customer/Project • COMMANDexecutive>Reporting>Reports>Sales Reports MGT-013 Financial Analysis for Executives and Managers

Sales by Customer/Project • Sales by Customer/Project MGT-013 Financial Analysis for Executives and Managers

Quarterly Sales by Shipping Plant MGT-013 Financial Analysis for Executives and Managers

Quarterly Sales MGT-013 Financial Analysis for Executives and Managers

Top Customer Report • Top Customer Report MGT-013 Financial Analysis for Executives and Managers

Top Customer Report MGT-013 Financial Analysis for Executives and Managers

Cost and Profit Analysis • Cost Factors • Profit/Contribution Analysis • Average Cost and Profit per Customer • Average Cost and Profit per Plant/Project • Average Cost and Profit per Truck/Driver • Total Cost and Profit per Plant MGT-013 Financial Analysis for Executives and Managers

Cost Factors • Delivery Costs • Material Costs • Overhead Costs MGT-013 Financial Analysis for Executives and Managers

Cost Factors • Delivery Costs • Total Delivery Cost = Variable Delivery Cost + Fixed Delivery Cost (Detailed calculations at end of slide presentation) • Material Costs • Individual single item cost • Sum of cost of each constituent • Overhead Costs • “Other” Costs Other costs Delivery costs MGT-013 Financial Analysis for Executives and Managers

Profit/Contribution Reports • Provides detailed information for average cost and the quantity for delivery and material • Provides average profit per load, per hour, and per quantity • Reports available through COMMANDexecutive MGT-013 Financial Analysis for Executives and Managers

Contribution Averages by Customer • Capture Profit/Hour data from the Contribution Report • COMMANDexecutive>Reporting>Reports> Contribution Report • Report Format – Contribution Averages • Select Records by Customer Code • Analyze troublesome customers • Customers with excessive wait time on the job? • How does the average delivery cost and average profit per load/hour on these customers compare with other customers? • Am I really making a profit on these customers? MGT-013 Financial Analysis for Executives and Managers

Average round trip time Average revenue per cy or m3 Average quantity/ trip hour Total number of trips Contribution Averages by Customer by Project MGT-012 Financial Analysis for Executives and Managers

Average Profit per Load Average delivery cost Average Material cost Average Profit per unit Average Profit per Hour Contribution Averages by Customer MGT-012 Financial Analysis for Executives and Managers

Financial Analysis for Executives and Managers