Using MYOB Accounting Software

Performance reporting and analysis - or, how to get decision-making information

The example below is the recognisable format output from an MYOB generated Profit and Loss report, exported into Microsoft Excel.  The raw numbers appear are as they are generated by the MYOB system, however, performance ratios (in purple and green) have been added to the Excel spreadsheet to produce meaningful ratios to compare monthly performance. 

Key points to note about the performance of this company are:

  1. Although there has been an erratic Gross Margin swing (12% to 21% over six months), gross profit dollar growth has been through a more extensive 'swing' (51% to 145%)

  2. Expenses (apart from two major reversals in April) are in line with sales income.

  3. The erratic gross profit dollars have flowed through to deliver a worsening and unacceptable trading profit result for the last four months - the company is in trading profit difficulty which it must reverse

These performance ratios demonstrate that this company, while not fatally 'financially wounded' is struggling to maintain performance consistency AND has lost money for four consecutive months at a rate of 4% of sales income.  The report detailing the next six months performance will definitely be interesting reading!!!

Similar performance reports, including balance sheet information from MYOB, can be created to deliver an even clearer and in depth picture of trading profitability and underlying financial health.

 

Remember, profit is not cash AND cash is not profit!

 

Example MYOB Report: -

Dan Byrd Manufacturing

           

P O BOX  5134

 

           

Temora, NSW

 

           

Profit & Loss Statement

         

April 2003 through Sept 2003

           
               

 

April

May

June

July

August

September

Total

Income

 

Sales

$97,941.47 $103,627.37 $92,517.48 $109,259.32 $92,391.86 $98,335.84 $594,073.34

Total Income

$97,941.47 $103,627.37 $92,517.48 $109,259.32 $92,391.86 $98,335.84 $594,073.34

             

Cost Of Sales

             

Purchases & Freight

$68,535.69 $61,900.53 $62,579.89 $70,621.04 $61,092.43 $60,874.08 $385,603.66

Purchase Rebate

($143.85) ($221.12) ($234.16) ($214.63) ($144.46) ($174.40) ($1,132.62)

Wages - Workshop

$6,499.64 $13,854.58 $12,804.44 $14,955.31 $13,854.58 $16,434.83 $78,403.38

Wages - Directors

$5,248.98 $6,261.60 $6,261.60 $7,827.00 $6,261.60 $7,427.67 $39,288.45

Total Cost Of Sales

$80,140.46 $81,795.59 $81,411.77 $93,188.72 $81,064.15 $84,562.18 $502,162.87

             

Gross Profit

$17,801.01 $21,831.78 $11,105.71 $16,070.60 $11,327.71 $13,773.66 $91,910.47

Gross Margin

18.18% 21.07% 12.00% 14.71% 12.26% 14.01% 15.47%

Gross Profit Growth

  122.64% 50.87% 144.71% 70.49% 121.59%  

Expenses

             

ACC Levies

($3,127.99) $284.13 $284.13 $2,745.80 $284.11 $351.72 $821.90

Accounting Fees

$0.00 $0.00 ($354.55) ($85.00) $783.33 $0.00 $343.78

Advertising-Promo

$1,037.62 $1,339.22 $2,482.39 $3,757.96 $1,222.89 $1,806.19 $11,646.27

Bad Debts

($3,135.20) $96.00 $0.00 $2.86 $0.00 $0.00 ($3,036.34)

Bank  Charges

$41.60 $91.20 $170.19 $58.80 $168.45 $207.13 $737.37

Bartercard Charges

$22.28 $82.12 $27.17 $37.50 $28.33 $103.53 $300.93

Computer Services

$97.50 $0.00 $500.00 $525.00 $0.00 $0.00 $1,122.50

Cleaning

$142.40 $123.60 $290.43 $164.50 $3,354.65 $313.00 $4,388.58

Credit Card Charges

$560.83 $796.16 $737.39 $862.70 $1,017.55 $557.10 $4,531.73

Commission

$99.87 $219.13 $128.13 $93.73 $117.68 $93.40 $751.94

Donations

$0.00 $0.00 $0.00 $265.00 $185.00 $0.00 $450.00

Equipment Hire

$111.12 $111.12 $111.12 $111.12 $111.12 $111.12 $666.72

Training Fees

$0.00 $600.00 $0.00 $0.00 $0.00 $0.00 $600.00

General Expenses

$80.00 $400.00 $40.31 $204.53 $133.33 $920.92 $1,779.09

Insurance

$304.66 $304.66 $2,234.16 $379.75 $379.75 $3,023.13 $6,626.11

Interest Paid

             

Loan Interest

$1,300.40 $1,300.40 $1,300.40 $1,300.40 $1,300.40 $1,300.40 $7,802.40

M V Expenses

$244.01 $881.79 $506.06 $1,292.17 $326.32 $392.93 $3,643.28

Postage & Freight

$0.00 $71.11 $71.11 $106.67 $71.11 $71.11 $391.11

Power

$325.32 $237.62 $305.50 $312.84 $336.04 $320.92 $1,838.24

Printing & Stnry

$70.96 $310.78 $73.84 $65.79 $174.91 $133.95 $830.23

Prot. Clthg & Equip

$113.96 $0.00 $0.00 $0.00 $0.00 ($32.00) $81.96

Rent & Rates

$4,087.08 $4,087.08 $4,087.08 $4,087.08 $4,087.08 $4,087.08 $24,522.48

Repairs & Maint.

$427.19 $376.81 $539.10 $264.91 $0.00 $193.70 $1,801.71

Waste Disposal

$758.50 $660.00 $660.00 $660.00 $695.25 $824.00 $4,257.75

Security Services

$33.67 $88.67 $33.67 $33.67 $33.67 $33.67 $257.02

Shop Supplies

$560.56 $848.16 $723.41 $790.52 $562.40 $1,187.37 $4,672.42

Staff Expenses

$227.33 $218.70 $110.35 $169.25 $108.93 $280.93 $1,115.49

Subs & Licences

$0.00 $0.00 $106.67 $155.00 $155.56 $0.00 $417.23

Phone & Fax

$594.56 $649.10 $810.71 $770.94 $455.61 $252.49 $3,533.41

Bus Travel/Accom

$0.00 $213.33 $0.00 $1,068.69 $159.11 $344.44 $1,785.57

Total Expenses

$4,978.23 $14,390.89 $15,978.77 $20,202.18 $16,252.58 $16,878.23 $88,680.88

% to Income

5.08% 13.89% 17.27% 18.49% 17.59% 17.16% 14.93%

Expense Growth

  289.08% 111.03% 126.43% 80.45% 103.85%  

Trading Profit

$12,822.78 $7,440.89 ($4,873.06) ($4,131.58) ($4,924.87) ($3,104.57) $3,229.59

13.09% 7.18% -5.27% -3.78% -5.33% -3.16% 0.54%

NOP growth

  58.03% -65.49% 84.78% 119.20% 63.04%  

Other Income

             

Suspense Acct.

$0.00 ($20.00) $20.00 $0.00 ($264.11) $264.11 $0.00

Rent

$1,512.22 $1,512.22 $1,512.22 $1,512.22 $1,512.22 $1,512.22 $9,073.32

Total Other Income

$1,512.22 $1,492.22 $1,532.22 $1,512.22 $1,248.11 $1,776.33 $9,073.32

             

Other Expenses

             

             

Net Profit/(Loss)

$14,335.00 $8,933.11 ($3,340.84) ($2,619.36) ($3,676.76) ($1,328.24) $12,302.91
14.64% 8.62% -3.61% -2.40% -3.98% -1.35% 2.07%

Performance Graph Creation

Major P & L data (copied from the table above)

 

April

May

June

July

August

September

Total Income $97,941 $103,627 $92,517 $109,259 $92,392 $98,336
Gross Profit $17,801 $21,832 $11,106 $16,071 $11,328 $13,774
Total Expenses $4,978 $14,391 $15,979 $20,202 $16,253 $16,878
Operating Profit $12,823 $7,441 ($4,873) ($4,132) ($4,925) ($3,105)

 

The Business Solutions Shop Pty Ltd 2005.