Budget Controller FAQ's - Frequently Asked Questions

My chart of accounts layout is different to Budget Controller's. Can it be changed?

Budget Controller was designed to be as generic as possible, but different countries and companies have different ways of presenting what is basically the same information. Of course, we can adapt Budget Controller to your specific needs but its very simple to create your own reports in Excel and link them to Budget Controller to rearrange the information in your own format.

What is the difference between a Profit & Loss account and an Income statement?

None. Income Statement is widely used internationally, Profit & Loss is more common in the United Kingdom.

How to I account for VAT or other sales taxes?

Sales taxes generally have little impact on strategic medium to long-term forecasts. It is often collected by companies and paid to the government within a month. With the aim of keeping Budget Controller as simple to use as possible, no specific way of forecasting sales tax has been included. However, if you include sales taxes payable in your opening balance of Other Liabilities in the Balance Sheet, this value will change proportionally with sales over time.

How do I account for payroll taxes?

The total cost of a company's workforce, including taxes should be accounted for under Labour Costs in the appropriate worksheet. The actual payment of those costs can be scheduled in the Collections & Payments worksheet along with the other costs incurred.

How do I account for waste, scrap and unsaleable goods?

A percentage should included in your cost of sales for waste and scrap incurred during the manufacturing process. If, you need to make additional write-downs of inventories for a specific reason you can use the Other Decreases field in the Inventories & W.I.P. worksheet.

How do I account for the sales of fixed assets?

Sales of fixed assets can be accounted for as follows:

  • Enter the acquisition value of the assets as a negative number in the appropriate month under Fixed Assets: Investments & Sales in the Capital Investments worksheet.
  • Enter the difference between the book value of the asset (its remaining un-depreciated residual value) and its sales value under Unadjusted Income or Expenses in the Other Operating Items worksheet. If the sales value is greater than the book value it will be Income (capital gain on sale of fixed assets) and the opposite will be an Expense (capital loss on sale of fixed assets).

How do I account for advances from customers or to suppliers?

You can use the Collection & Payments Schedule to account for both advances from customers and advances to suppliers by entering negative values in the Collect in/Pay in fields:

For example, -2 indicates the cash will be collected two months in advance of the sale, i.e. the sale is recognised in the current month in the Income Statement but two months earlier in the Cash Flow Statement.

Note:

If an advance was received from a customer before the start of the forecast, you should do the following:

  • Included it in your Balance Sheet by subtracting it from your Accounts Receivables (A/R) opening balance (advances are netted with Receivables to avoid unnecessary complication).
  • A negative value should be entered in the "Collect in" field which takes the advance to before the start of the forecast (as reflected in your A/R opening balance).
  • The amount of the advance entered in the "Amount" field.
  • The advance should also be included in your sales forecast in the respective month.

An advance to a supplier made before the start of the forecast would function in a similar way.