Overview - introduction to Visual Cash Focus

Visual Cash Focus is a budgeting and budget variance reporting program that is powerful, fast and flexible. Most of us write up the general ledger during the year to tell us what has happened in the past. Visual Cash Focus goes the next step and writes it up in advance. It takes each budgeted financial event and writes up a journal and general ledger as though the event actually occurs, using conventional double entry accounting standards.

 

You can take steps to change the balance sheet before the end of the financial year, as you are seeing what it will look like in advance. The accounting methods used to analyze a company's performance on an historical basis are available to analyze future performance.

All projected results are verifiable. Visual Cash Focus creates an "actual" general ledger written up in detail with clear narrations. Visual Cash Focus links the ledger directly to the cash flow statement, so you can quickly see why a figure changes by viewing the underlying transactions. You can view the general ledger for any account and see the transactions that comprise the result.

 

How Visual Cash Focus works Most of us write up the General Ledger during the year to tell us what has happened in the past. VISUAL CASH FOCUS goes the next step and writes it up in advance. It takes each budgeted financial event and writes up a journal and general ledger as though the event actually occurs, using conventional double entry accounting standards. The software is able to do its budgeting and reporting without the user having to enter formulae. It knows all the rules for each account type, so is able to process the appropriate transactions. Example: You budget to sell $10,000 in June. The software knows that the profit and loss / income statement should contain the revenue of $10,000 in June. Also, the cash will be collected over time, so on the balance sheet it knows that accounts receivable should increase by $10,000 plus GST or VAT or sales tax as appropriate. Thereafter the cash is collected so the accounts receivable decreases and the bank account increases until the entire amount for this budget period is collected. (Bad debts can also be automated if required). Furthermore, when the sale is made in June, inventory on the balance sheet is reduced appropriately. The cost of sales account in the profit and loss / income statement also reflects the sale. Finally, the software may also be called upon to ensure that the necessary inventory is purchased (or manufactured) in advance to be able to support this sale. The supplier is paid by appropriate use of the accounts payable and bank accounts. All these transactions are automatic and happen for each budgeted amount. The software uses all the appropriate transactions for each account type, so all you need to do is put in the budget amount expected. The software does the rest. It also adds interest on bank accounts and manages the GST, VAT or sales tax accounts and payments if appropriate.

 

How do you use the features of Visual Cash Focus in your business?

 

Visual Cash Focus is a computer program that simulates the trading of a business. You supply the starting balance sheet and an estimate of revenue, cost of sales, expenses, other income, tax and dividends if applicable. You can also apply fixed asset schedules, overdraft arrangements, lease and hire purchase payments, long term loans and inventory requirements. Visual Cash Focus uses your information to predict the expected cash flow, net income/ profit, bank balance, accounts receivable and payable, Inventory levels, balance sheet, income statement / profit and loss account and financial ratios at the end of each period.

 

You will find that

 

1. You get an accurate result quickly & easily. Visual Cash Focus can get you to an answer in perhaps an hour or less from start to finish for a new forecast.

2. Periods are not restricted to monthly; they can be weekly, fortnightly, daily, quarterly, annually, etc. Results are shown in detail, individually for every period regardless of the length of the forecast. Results for the entire forecast, per period, are visible in a single view.

3. Profit centers are incorporated.

4. Budgets can be based on financial and non-financial items e.g. number of hotel rooms.

5. The inclusion of User journals extends the capability of the program almost infinitely.

6. Any number of models can be consolidated.

7. Results can be reported in any currency. Fixed and variable exchange rates are catered for.

8. All figures are verifiable; In the balance sheet, income statement / profit and loss account, or cash flow statement the underlying general ledger for any figure is readily available to verify the amount.

 

Example: the verification for the bank balance in May will narrate all the transactions that will occur in May and thus you can clearly see why the closing balance is what it is. Visual Cash Focus accomplishes this by using conventional double entry accounting standards during the simulation. You are able to specify the business in as much detail as you need to get a realistic result.

It is unlikely that there is another method you can use which will give you such an accurate, verifiable picture of what your company will look like each period into the future. Stringent accounting standards have been in place for many years for preparing historic data for tax returns etc. Visual Cash Focus now gives you the ability to prepare next year's data in advance using similar accurate techniques.

Visual Cash Focus is the software solution for budget creation and management. Suitable for corporate and business. Reports include budgeted cash flow statement, balance sheet, income statement (profit and loss), source and application of funds, ratios and graphs.

After the budget is constructed, enter or import actual results and the software creates professional management variance reports. Incorporates budget audit trails.

Visual Cash Focus will make your budget creation and management easier, quicker and more accurate. It will save you money and time. "Visual Cash Focus is the best single solution for budgeting, forecasting, management and financial reporting."

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