5 Ways to Make Simple SME Financial Statements

Having a good financial statement, is not only a big business monopoly with a more complex financial system, but also very much needed by all levels of business, even SMEs . Making SME financial reports is expected so that SMEs can operate their business properly so that the profits and losses can be analyzed. Having a good financial report, and getting used to it from the start of the business, will facilitate the assessment of other parties and the company’s internal performance of the business.

Easy Ways to Make Financial Statements.

Collecting and recording transactions in journals

Proof of transaction is very important in accounting so it cannot be lost. Proof of transaction is the basis for recording in making financial statements in the form of notes, receipts, invoices or other types of evidence. The first step in making financial statements is to record the transactions made by the company in a journal in detail.

Gathering the Data Needed to Make a Adjusting Journal

Some transactions may be unrecorded or transactions take place at the end of the financial reporting stage and some are still incompatible with the situation at the end of the period, so the data needs to be collected to keep an adjusting entry.

Making financial reporting

Reports that have been prepared can be neatly written according to the provisions or financial reporting standards. The information presented in the financial statements is very important because it reflects the company’s performance and can be used to make decisions.

Simple Financial Reports that SMEs Must Have

a. Cash Flow Book

Cash flow is used to record the real flow of money in a period. The purpose of making this cash flow report is to provide an overview of management activities in operations, investment and funding.

b. Supplies Book

There are two methods in making inventory reports, namely using physical methods that require the calculation of goods that still exist on the date of preparation of the financial statements and the perpetual method (books) where each type of inventory is made of its own account which is a subsidiary ledger.

c. Purchase Book

In this book, you only need to record purchases that are not paid in cash. This bookkeeping is filled in regularly according to the orderly time of purchase invoices.

d. Sales Book

In this book, you only need to record the sale of goods that have been done in a certain period. This report usually includes a copy of the invoices that have been made. It aims to match the prices and deductions given to each product.

e. Cost Book

In this book, you should note the costs incurred during the production and marketing processes, or commonly called overhead costs during production, such as paying employees, electricity, telephone costs, rental premises, and others.

f. Debt Book

This bookkeeping contains the company’s debt reports that must be paid in a certain period to another person, institution, or company. This bookkeeping debt is very necessary to find out how much the company has not paid to its clients.

g. Book Receivables

Contains payment reports that have not been paid. With this report, you can monitor how long the receivables are not collectible so that you can speed up the collection period.

Also read: Know the Cloud Model SMEs Can Use to Face Crisis

Example of Making SME Financial Reports

A company called PT Maju Jaya sells cassava cheese and balado potatoes with an initial cash balance of Rp5,500,000. In January the company managed to sell 30 pcs of cassava cheese and 50 pcs of balado potatoes with total cash sales of Rp 4,000,000. And in that month PT Maju Jaya had to pay expenses to pay electricity, telephone, and transportation in the amount of Rp 2,000,000. With this transaction, the following books must be recorded.

a. Cash book

Date

Information

Debit

Credit

Balance

Jan 1, 2017

Initial Cash Balance

Rp.5,500,000

Rp.5,500,000

Jan 2, 2017

Cash sale

Rp.4,000,000

Rp.5,500,000

b. Sales Book

Date

Information

Debit

Credit

Balance

Jan 2, 2017

Cash sale

Rp.4,000,000

Rp.4,000,000

c. Inventory Book

Date

Name of goods

Unit

Bought

On sale

Jan 2, 2017

Cassava cheese

Balado potatoes

Wrap

Wrap

30 pcs

50 pcs

Meanwhile, to write an expense report issued below is how to fill in the cash books and expense books.

a. Cash book

Date

Information

Debit

Credit

Balance

Jan 1, 2017

Initial Cash Balance

Rp.5,500,000

Rp.5,500,000

Jan 2, 2017

Cash sale

Rp.4,000,000

Rp.5,500,000

Jan 3, 2017

Electricity cost

Telephone and internet

Transportation

Rp900,000

 

Rp.600,000

IDR 500,000

IDR 7,500,000

b. Cost Book

Date

Information

Cost

Total

Jan 3, 2017

Electricity cost

Telephone and Internet

Transportation

Rp900,000

 

Rp.600,000

IDR 500,000

Rp.2,000,000

Furthermore, to calculate the income is very easy, the first step is to determine the Cost of Goods Sold. What is the cost of goods sold? HPP is all direct costs incurred to obtain goods or services sold. How to calculate COGS is the formula:

COGS = Initial inventory balance + purchase of goods – inventory

After that, you can only calculate the gross profit and net profit obtained by the formula:

Gross Profit = Sales – Cost of Sales

Net Profit = Gross Profit – Cost

Although making these financial statements requires time and effort, every SME entrepreneur is required to have them, because with a good financial report, you can find out how much tax to pay, how much profit or loss to anticipate. More importantly, it will be easier for you to get a loan to expand your business if you have good and regular financial reports. To facilitate a professional financial report that is in accordance with Indonesian accounting standards, you can use an online accounting journal as your business partner.

Journals have a number of interesting features that can be used as a solution to facilitate the recording of SME business finances such as inventory reports, cost features that can calculate all total business expenses and invoicing with 11 design choices that will certainly make your business look more professional

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