Welcome to Management Analysis. This unique feature of the Sirius GT Construction Management Accounting System for Windows polls data directly from your accounting records. Using the most current information available, it performs a series of programmed evaluations and analysis of specific Balance Sheet, P&L and Job Cost information.
Management Analysis is divided into five (5) sections:
Balance Sheet Information
|Current Assets||total of all accounts marked, during Chart of Accounts Maintenance, as Cash, Current Asset and Inventory/Work in Process. Long Term Assets and Other Assets are the totals of all accounts marked as such.|
|Current Debts||total of all Current Liability Accounts. Long Term Debts is the total of all accounts marked as Long-Term Liabilities and Other Liabilities, while Owner Equity consists of all Equity Accounts.|
|w/Ret & Inv||Ratio of Current Assets (includes AR Retainage and Inventory) divided by Current Debts (includes AP Retainage). This is a standard liquidity ratio which measures a firm's Current Assets (cash, accounts receivable, etc.) in relation to it's Current Debts (accounts payable, PR accruals, etc.) stated as a numeric value (e.g. 1.75:1). This means there are 1.75 times more current assets than current debts.|
|w/o Ret & Inv||Similar to the above valuation except that Current Assets excludes AR retainage and inventory while Current Debts excludes AP retainage. For contractors this is often a more meaningful valuation, since AR retainage and inventory are not easily convertible to cash, while AP retainage may not be due for many months. Depending on circumstances, a valuation between 1.0 to 1.25 may signify a possible short-term cash flow problem. A value less than 1.0 would generally require some immediate attention.|
The MA balance sheet consists of all information POSTED to the General Ledger within the current year fiscal period. Unposted data within the current month general ledger or other modules is not included.
|Select Current Fiscal Period||Specifies a range of fiscal periods for printing financial statements to a printer or on-screen. Changing fiscal periods DOES NOT alter the values in the Balance Sheet of MA, which uses only the most currently posted data.|
|Update Statement Specifications||easily modify financial formats to include budgets, comparatives, ratios and variances for Balance Sheet, P&L and Departmental (consolidated) statements.|
|Print General Ledger Statements||automatically prints all financial statements within the fiscal periods and statement specifications selected.|
Profit & Loss Information
|Sales||total of all accounts marked as sales posted directly from the Item (AIA) Billing, T&M Billing, Order Entry, Service Manager and AR modules.|
|Over/Under Adj.||calculated from a detailed evaluation of all job cost information related to billings, projected costs, projected profits, percentages complete, costs-to-date and profits-to-date in accordance with generally accepted accounting principles for the construction industry. It is a primary component of WIP (work in process) schedules used by CPA's, bonding agencies and banks when evaluating financial information. It is often referred to as Over or Under Billings.|
|Earned Sales||total of all sales (less) any over billings or (plus) any under billings. Within construction accounting principles, job billings are not considered earned revenue unless they meet specific criteria. Generally speaking, earned revenue is valued as costs-to-date plus a proportional amount (percent complete) of the projected profit. Accurate valuations are required for projected cost, profit and percent complete. MA performs these calculations on a phase by phase, job by job basis and summarizes the result as an Over/Under Adj. to Sales.|
|Cost of Goods||a section of the P&L statement also referred to as Direct Job Costs. This is the total of all job costs posted from AP, PR, etc. as of the stated fiscal period.|
|Gross Profit||sum of Earned Sales (less) Cost of Goods. This is the adjusted earned profit after subtracting direct job costs from an adjusted billings value.|
|Other Expenses||total of all costs (advertising, rent, utilities, etc.), often referred to as General & Administrative, that are not directly related to job costs.|
|Net Profit||sum of Gross Profit (less) Other Expenses. This figure can generally be considered a more accurate and reliable value of financial performance than one derived from standard P&L statements that do not contain accurate projection and billing adjustments.|
A - B = C - D = E Percentages:
This basic formula displays the primary totals of the P&L statement as percentages to total earned sales. Earned Sales (A), always shown as 100%, less Cost of Goods (B) equals Gross Profit (C) less Other Expense (D) equals Net Profit (E).
|Contracts||total of all original contract values (selling price) for all jobs marked as Active.|
|Change Orders||total of all Approved change orders (selling price) from all jobs marked as Active.|
|Total Contracts||total of all original job contracts plus all Approved change orders for Active jobs.|
|Projected Costs||an important job cost valuation derived from a category based phase-by-phase, job-by-job analysis of the most currently available information. Labor projections are based on careful evaluations of original budgets, costs-to-date figures and estimates of percentages complete from field report entries. Material, Subcontractor, Equipment, General and other types of cost projections are calculated differently, utilizing the most current estimates, costs-to-date and committed values from Purchase Orders.|
|Projected Profit||value of all Total Contracts less Projected Costs.|
|Completion %||Costs-to-Date divided by the Projected Costs yields Percent Complete.|
|Profit-to-Date||total Projected Profit (all active jobs) times the Completion % equals the profit-to-Date. This is the proportionate value of the all Active job profits that you have earned to date.|
|Active %||total Projected Profits divided by Total Contracts, displayed as a percentage of Total Contracts, for Active jobs only. Also referred to as a gross profit rate.|
|Closed %||total actual profits divided by the Total Contracts, displayed as a percentage of Total Contracts, for all jobs marked as Closed.|
This is a useful comparison of current vs. past job profitability.
Closed Job Analysis
Compares Estimated vs. Actual costs for various Closed job cost categories.
|Labor $||actual total gross wages (e.g. 40 hrs. X $10 hr. rate = $ 400) plus all related payroll fringes (FICA, FUTA, SUTA, Workman's Comp, Employer paid union benefits, etc.) posted to jobs that are now Closed.|
|Labor Hrs||total of all regular, time and a half and double time or premium hours posted to jobs now Closed.|
|Avg. Man Hr||value of Labor $ divided by Labor Hrs displayed as an average cost per each man hour for Closed jobs only.|
|Material $||Since all cost code category descriptions within Sirius GT are user definable, with the exception of labor, this is the total value of all costs posted to User Cost 1 (usually defined as material) for Closed jobs.|
|Lab $ / Mat $||total Labor $ divided by total Mat $ displayed as a percentage of labor to material for Closed jobs (e.g. - a value of 85.10 means that labor costs were approximately 85% of material costs. This also means that for every dollar of material, it takes 85 cents of labor to install it. While this value can and often does fluctuate for various types of jobs, tracking it as an average, on a monthly basis, can serve as a useful labor productivity tool.|
Assuming the average mix of labor vs material for most completed jobs has remained fairly standard: an Actual increasing value, month to month, may signify a loss of labor productivity, while a decreasing value depicts a productivity increase. This is especially noteworthy if the Estimated value, on a monthly basis, remains relatively constant.
Monthly Job Info
Sirius GT maintains costs and billing information, for all jobs, on a cost-to-date, month-to-date and current (usually defined as weekly) basis. Once posted, these values are immediately available to MA, regardless of any month end financial statement preparations.
|Monthly Billings||total of all job related billings, for the current monthly period, from AR, T&M Billing, Item (AIA) Billing, Order Entry and Service Manager.|
|Monthly Costs||total job costs posted, for the current monthly period, from all cost categories.|
|Reg. Labor Hrs||total of all monthly regular job related labor hours posted from PR or Job Detail Input (PR adjustments or 3rd party PR input).|
|O/T Labor Hrs||total of any premium monthly labor hours posted.|
|Labor Cost||total of all gross wages, regular and premium, plus all PR fringe costs posted for the current month. This value does not include any additional labor overhead costs, assigned through the job cost feature of allocating an additional percentage of gross labor as overhead, above and beyond actual fringe costs.|
|Labor Fringe %||actual monthly labor fringe costs divided by the actual monthly labor gross wages displayed as a percentage to monthly gross wages. Often referred to as the labor burden percentage.|
|Act Avg Man Hr||actual monthly Labor Cost divided by the total monthly Reg. and O/T Labor Hrs. displayed as an average cost per hour.|
|Est Avg Man Hr||all Active jobs estimated regular, half and double time hours divided by the estimated total gross and fringe labor costs. This is not a monthly value, but one based on active jobs only and used as a basis for comparison to actual.|