Create 5-Year projections with the Pro Forma Metrics dashboard. The dashboard is named a dashboard because the metrics are the data stored by BalanceWare, not the Pro Forma itself. Metrics can be applied to any year for which there is history data, plus the current accounting year.
There are 27 categories of metrics and a given model can contain an unlimited number of specific metrics, chosen from the 27 categories. Some metrics are global; that is they apply to the entire Pro Forma model. Other metrics are account based, and a third type of metric is event driven.
The 27 categories are also referred to as steps, by BalanceWare. The metrics tabs all contain numbered steps. The generation of the Pro Forma occurs in step-order, and these steps are clearly annotated on the dashboard, for easy reference. The step-order annotations provide a clear insight into the various methods different metrics can be employed efficiently.
The dashboard is divided into 6-tabs. Metrics are maintained on the first 3-tabs, Default Metrics, Account Metrics and Events.
The fourth tab is a Summary tab for quick reference of key Pro forma accounts and categories of accounts. The fifth tab is the ProForma itself, and the sixth tab is available for Variance reporting.
Variance reports can be printed for any year in which there is actual data to compare the pro forma with, and compute variances. Makes sense!
Always Active Function Keys
The following function keys are available on all pro forma forms:
- F1 - Help
- F4 - Cycle form windows
- F5 - First record
- F6 - Last record
- F7 - New record
- F8 - Toggle field selection
- F9 - Delete current record
See Navigation and Editing for additional keyboard tips.
Financial Ratios are an integral metric included in the pro forma model. Therefore, please configure the
Financial Ratios dashboard before using the Pro Forma Dashboard.
A video on this Help Topic is available on our Video Page.
Default Metrics Tab
Name, Title, Creation Date, First Year
The working name is an internal name, and does not appear on reports. You may have different versions of a model, and the working name is useful for noting the version. The title prints on the Notes report (see below).
The first year is referencing the first projection year. Since a projection requires history data as a starting point, the available first year values will always be the current year, the year after the current year, and the three most recent history years. A projection cannot start with the fourth history year, because there is no data on which to make a projection.
A change in the First Year will also change event dates.
Global Defaults
As discussed above, are applied to a single year of client data. Global metrics are applied to all years and growth rates are applied to ordinary income and expense accounts.
The Global default metrics are:
- Growth rate
- Days inventory
- Days receivable
- Days payable
- Cost of Goods Sold Percentage
In addition to global defaults, the same metrics can be specified for each pro forma year. Since this step, #2, is performed after the default global growth rate, step #1, the yearly metrics will override the global metrics.
Default Metrics Tab
Notes & Attachments (Collapsible)
Use the Engagement Documentation dashboard to associate client s and notes with objects in BalanceWare.
Notes and documents can be linked to the following items (on a per client basis):
- Any journal entry (no icon, double click on preparer notes instead)
- Any cash disbursement batch (no icon, double click on preparer notes instead)
- Any other (using the Documents button from the Client tab)
- Any BalanceWare form (using the icon, below)
Look for the Engagement Documentation icon on BalanceWare forms.
Clicking the icon will open the Engagement Documentation dashboard. In the case of journal entries and cash disbursement batches, double-clicking on the Preparer Notes field accomplishes the same. Once open, click on any attachment to open the document.
Engagement Documentation Dashboard (with callouts)
See the Review Notes button on the Client Tab for reviewing notes from all sources within BalanceWare.
Note: to maintain link integrity, do not manage documents from Windows Explorer. Moving or deleting client documents may break links. Documents can be edited and documents can be added using Windows Explorer, but do not delete or move documents or folders. Broken links will be placed in a special folder in the Documents treeview called "Orphans" and can be relinked from this special folder.
Adjustment Accounts
Adjustment accounts are for posting the results of calculations. For instance, the days inventory calculation requires an inventory account for posting the result. Regardless of the metrics applied to any given model, two adjustment accounts are required, retained earnings and cash. The following adjustments accounts are available.
- Cash (required)
- Inventory
- Accounts receivable
- Accounts payable
- Cost of goods sold
- Accumulated depreciation
- Retained earnings (required)
Some clients may not actually have all of these accounts, in which case the field can remain blank. Both the Cash and Retained Earnings must be completed to balance the pro forma.
For all metrics: that are blank are not calculated. (To indicate a -0- amount, enter "0".)
Navigation
Pro forma model controls can be found In the upper right corner of the Default Metrics tab. These clickable controls allow for scrolling through models, adding a model and deleting the current model. There is no limit to the number of models.
The models can also be scrolled using the controls found below the footer. A model can be copied to a new model using the Copy Model button found in the footer.
Pro Forma Accounts
A client's projection may require accounts not found in the client's current chart of accounts. In many cases, you may not want these special-use pro forma accounts in the client's chart.
The ability to add an account for pro forma purposes only is provided by the Add/Edit Accts button, which also resides in the footer of the Pro Forma Metrics form.
When adding and editing accounts, additional metrics are assigned to the account. The metrics allow the account to be included in appropriate calculations. See below for further information on pro forma accounts.
Account Metrics Tab
Account metrics, as the name implies, are applied to individual accounts. All metrics can be applied to ordinary income and expense accounts.
Balance sheet accounts can be overridden or adjusted, only. All metrics can be applied to other income and expense accounts, except annual growth rates.
The account metrics:
- Percentage of another account
- Incremental cost based upon a change in sales volume (This metric also has an on/off switch.)
- Annual growth rates
- Annual overrides
- Annual adjustments
- Percentage of an income statement component
- Sales
- Cost of Goods Sold
- Gross Profit
- Operating Expenses
- Net Income Before Tax (assumes the account is the income tax expense account)
- Exclude account
- No calculations - static
Account Metrics Tab
Navigation
Account controls can be found at the top of the Account Metrics tab. These clickable controls allow for scrolling through the active metrics and deleting the current metrics from the selected account.
Metrics can also be selected from the Account combo-box, located in the top left of the form. The accounts with active metrics will have an asterisk next to the account name in the drop-down box.
Models can also be scrolled using the controls found below the footer. A model can be copied to a new model using the Copy Model button found in the footer, and pro forma accounts can be added and edited as required, using the Add/Edit Accts button. See below for further information about pro forma accounts.
Always Active Function Keys
The following function keys are available on all pro forma forms:
- F1 - Help
- F4 - Cycle form windows
- F5 - First record
- F6 - Last record
- F7 - New record
- F8 - Toggle field selection
- F9 - Delete current record
See Navigation and Editing for additional keyboard tips.
Events Tab
An unlimited number of events can be added to each pro forma model.
The event date should be on or after the beginning of the first pro forma year, to be included in the calculations. The event date should be the date of the event, or if retiring existing loans, the event date should be the last payment date.
When the First pro forma year is changed on the Default Metrics tab, all events dates are adjusted as well.
Event Types
- Purchase of fixed assets with associated depreciation using MACRS, S/L or None, over 3, 5. 10. 15, 27.5 and 39 years with bonus and/or section 179.
- Debt retirement accommodating a lump-sum pay down in the amount specified, for the account(s ) selected. The source of the retirement funds is the cash account.
- New financing in the amount, interest rate and term specified occurring on the event date, with payments commencing 30-days later.
- Existing debt identification with monthly payment amount and last payment date specified, as the event date.
For the loan amortization metrics, a short-term and/or long-term account may be specified, along with an interest expense account.
For new debt, the base-year-balance (the year before the first pro forma year) must have a zero balance.
A short-term and/or long-term base year balance must exist in the accounts selected for existing loans. Only one account needs a balance, if two accounts are selected.
Events Tab
Navigation
Event controls can be found at the top of the Events tab. These clickable controls allow for scrolling through the events, adding events, and deleting the current event.
Models can also be scrolled using the controls found below the footer. A model can be copied to a new model using the Copy Model button found in the footer, and pro forma accounts can be added and edited as required, using the Add/Edit Accts button. See below for further information about pro forma accounts.
Summary Tab
The summary tab is most useful when building a model. The tab provides key balances for each pro forma year. Use the summary tab to monitory the impact of various metrics, as they are applied.
The key balances provided are:
- Cash
- Accounts Receivable
- Inventory
- Other Assets
- Accounts Payable
- Other Liabilities
- Equity
- Sales
- Cost of Goods Sold
- Operating Expenses
- Other Income
- Other Expense
- Net Income
Summary Tab
Pro Forma Tab
The completed pro forma is displayed in and can be printed from the Pro Forma tab. The pro forma can also be exported to Excel.
Extensive notes are prepared for printing as well, These notes detail all of the applied to the current model. These notes can also be exported to your word processing application. To complete the process, a cover sheet can be printed from the Pro Forma tab.
The pro forma is clickable! Click on a pro forma account balance and a pop-up window opens providing an audit trail. The individual steps taken to arrive at the final balance are displayed in the pop-up window, in the order in which they were taken.
Pro Forma Tab
Variance Tab
Variance reporting is available on the Variance tab, for any year in which there is both actual and pro forma data.
Variance Tab
Pro Forma Accounts
A client's projection may require accounts not found in the client's current chart of accounts. In many cases, you may not want these special-use pro forma accounts in the client's chart.
The ability to add an account for pro forma purposes only is provided by the Add/Edit Accts button, which resides in the footer of the Pro Forma Metrics form, and is visible whenever a metrics tab is selected.
When adding and editing accounts, additional metrics are assigned to the account. The metrics allow the account to be included in appropriate calculations.
Pro Forma Account Specific Metrics
- Account Number
- Account Description
- Account Type (Financial statement section)
- Financial Statement Sequence (optional)
- One of the following
- Accounts Receivable
- Inventory
- Fixed Assets
- Accounts Payable
- Cost of Goods Sold
- Non-Cash
- None of the Above
There is no limit to the number of pro forma accounts and accounts added are available to all existing and future models.
Pro Forma Account Metrics
Support Ticket
Submitting a support ticket is the best way to expedite your issue. The support ticket automatically includes information we need to service your installation properly. By submitting a support ticket, we won't have to ask you all the preliminaries and, if you add a brief description, we will be better prepared to get to the heart of the matter ! We receive your ticket immediately upon submission and will respond ASAP; usually within minutes. Submit your support ticket from the About form on the Help tab.
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