Presidents Report

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Presidents Report

• Bill Bryan Advanced Business Methods
• March 14th, 2006

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Based on the Profinance Model

• The report is intended to be used in conjunction
  with the Profinance Course taught by John Hey and
  John Hanson through sources such as BTA.
• The program teaches the importance of monitoring
  key financial relationships and comparing your
  results to the model.

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How the report works.

• Your financial data from the e-automate system is
  Mapped into the Model.
• For example all revenue and cost of goods sold
  are reported by groups such as B/W, Color, Print,
  Fax, and Duplicators.
• Expenses are listed into basic categories like
  Sales expenses or Admin expenses.

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Notes and definitions - Revenue Detail

• BW includes multifunction machines, Business
  color, and printers doing more than 20 ppm
• The allocation of service and supply revenue is
  65 Service and 35 supplies for BW
• The allocation of service and supply revenue for
  Graphic Color is 50 - 50

• Equipment Rev Hardware, MAP / Nap Commissions,
  Interterritorials, Over funding of leases, and
  lease buyouts.
• Supplies Rev Toner, Developer, Paper, Serv /
  Supply allocation is 65/35 BW and Duplicators,
  Color 50/50, Fax/Printers 20/80.
• Service Rev Contracts less deferred, TM,
  allocation of bundled serv / supply contracts
  (see Supplies for details).
• Rentals All revenue for equipment put out on
  rent or in-house lease.

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Notes and definitions - Cost of goods sold details

• Equip COS Actual cost, less all discounts (incl
  cash and rebates), plus in-bound freight.
• Supply COS Actual cost less all discounts (incl
  cash and rebates), plus in-bound freight.
• Rental COS Depreciation of equip in rental pool.

• Service COS
• Service Salaries
• Parts used in service
• Travel Auto exp.
• Other Training costs, bulletins, tech supplies,
  cell phones / pagers, ADS / BEI fees

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Notes and definitions - Sales Expenses

• Sales Expense Direct cost of the sales
  organization divided by equipment revenue.
• Total Sales Expense Should be 25 of equipment
  revenue or less.
• Sales dept comp is a Subset of sales expense. We
  will use this to calculate Eq Rev / Sales dept
  comp. It is all sales dept comp except delivery
  and supplies.

• Mgrs Total Compensation for sales management.
  Does not include their commissions.
• Rep Compensation All salary / draw / commissions
  / bonuses paid to the reps.
• Other sales expense Sales travel
  entertainment, demo exp, telemkting, delivery,
  supply comp, and training expense

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Notes and definitions - Admin Expenses

• Admin salaries Pres is adm, all owners comp
  capped at 150K each.
• Payroll tax for the entire company is in admin
  expense..
• Employee Benefits for the entire company are in
  admin expense.

• Occupancy includes rent, utilities, leasehold
  improvements, taxes for all facilities.
• Corp Travel Entertainment
• Advertising All radio, TV, print, billboards,
  etc. expense, net of advertising coop.
• Other Adm exp all postage, office supplies,
  forms, printing, recruiting fees, depreciation,
  bad debt, MIS, legal fees.

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Lets get started . Configuring the report

• On the standard report Console

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Configuration page - where the real work begins
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Configuration Sections

• Allocate Accounts Used to map your GL accounts
  into the Presidents report Accounts
• Map Models Used to map revenue and cost into
  the report sections which are B/W, Color, Fax,
  Printers and Duplicators.
• Additional Information Used to record head
  count for revenue group benchmarks

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Allocate Accounts-

• First start with your current chart of accounts.
• Each one needs to be mapped into one of the 42
  preset President Report account types.

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• Map each account, one at a time until all of your
  GL accts corresponds to a President Report
  account types.

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• Some of your accounts may need special
  distribution applied to them.

• Above shows how to split Inventory Cost/Qty Adj.
  account among Equipment Sales, Service and Supply
  by Departments.

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Distributing based on a fixed amount
The report allows for a lot of flexibility in
mapping your accounts.
If necessary, you can create a customdistribution
table. . . . . . . .
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Map Models

• In this section, each model will need to be
  assigned to one of the five types B/W, Color,
  Printer, Fax, Duplicator.

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Additional Head count section

• Sales headcount Sales mgrs, reps, secretaries,
  support reps, and trainer. - Delivery, supply
  reps and telemarketing, are not included
• Service dept headcount Dispatch is not included
  in the calculation of Serv Rev per Serv Employee.
• Supply telemkting reps are not incl in Eq rev
  per Sales employee. This number is needed for
  supply benchmark.
• Admin headcount Pres is always Adm. Dispatch
  exp is in Adm.

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Your results compared to the Model.
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Going forward

• Are the results telling you something loud and
  clear. - What section? - Focus on that.
• Share the report with your managers dont keep
  it a secret.
• Run the report at least annually. Track your
  results over time.
• Can this make a difference?

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