CONSOLIDATING COMPANIES AND GENERAL LEDGERS Presented by: Joe Petrich Activar, Inc.

1. CONSOLIDATING COMPANIES AND GENERAL LEDGERS Presented by: Joe Petrich Activar, Inc.

2. Overview Chart of Accounts Random Impossible to memorize chart of accounts Mapping Confusing Troubleshooting difficult

3. Overview Financial statements Overall layouts inconsistent Categorizing accounts were inconsistent (expenses above or below the gross margin line) Difficult to compare across companies Difficult and time-consuming to consolidate companies

4. Considerations Servers Chart of Accounts layout/configuration Merging accounts – while maintaining history Companies to Branches

5. Considerations Companies to Branches General ledger history Accounts receivable Accounts payable Inventory Documents (i.e. quotes, invoices, statements, etc.)

6. Results and Benefits Structured Chart of Accounts Consistent procedures – writing and training Cross-training accounting staff simplified Communication improved Accounting staff Non-accountants (i.e. IT staff, managers, etc)

7. Results and Benefits Consistent Chart of Accounts Meaningful Consistent Easy to memorize Improved controls regarding modifications

8. Results and Benefits Mapping Ease of set up Troubleshooting Easier Change can be duplicated across all companies Corporate Acquisition – set up is quick and easy

9. Results and Benefits Financial Statements Layouts consistent Ease of reviewing Compare Companies - “apples to apples” Ease of creating financial reports Utilize ranges Copy and modify header

10. Results and Benefits Financial Statements Roll up (consolidate) financials automatically Timely financial statements Simplified Year-End Audit Time to perform audit reduced Saved on audit fees

11. Chart of Accounts Layout

12. Chart of Accounts Layout

13. Chart of Accounts Layout

14. Chart of Accounts Layout

15. Chart of Accounts Layout

24. ACTIVAR, INC. Joe Petrich japetrich@activar.com 952-944-3533