Accounting and Financial Statements

Maestro* is an enterprise resource planning software (ERP) that ensures very precise financial management. Indeed, PAGs are linked to general ledger accounts and allow various levels of drilling. They thus act as matrices and filter the information to be generated. The result is the creation and generation of financial statements that meet the multiple needs of the main stakeholders. Even though financial report templates such as the balance sheet and income statements are predefined and provided from the outset with maestro*, users have the possibility to customize and configure these reports, as well as create new ones and adapt them to their needs, as particular as they may be.

This document presents some good practices for the development of a chart of accounts for maestro* and gives an overview of the software's possibilities for the production of financial statements.

SUMMARY

 

Maestro*: A Project Management... and Financial Management Software

Maestro* is a project management software that has the advantage of being characterized as an Enterprise Resource Planning (ERP) software, which allows to manage and monitor a company's financial and operational data on a daily basis. Some modules are dedicated to operational data while others allow the management of financial data. Finally, some modules are used to establish a link between both.

The project structure allows to complement and therefore reduce the need to have various general ledger accounts. Maestro* uses masks to filter data and, if necessary, display only data specific to a prefix, project, activity, group, department, master project, or category. As all transactions are linked to a project - activity - group, they are therefore linked to a general ledger account. Users authorized to do so will therefore be allowed to generate income statements per project or category, for example. It is therefore not necessary to have a separate account number for materials from two different projects.

 

Coding Strategy, Groups, and Chart of Accounts

Like in any software that offers accounting management, account numbers are associated to each type of account. A user can take advantage of the standard chart of accounts provided by Maestro, or create their own chart – that can also be imported from an Excel file.

Type of Account

Recommended Numbers

Assets

1000...

Liabilities

2000...

Equity

3000...

Income

4000...

Expenses

5000

Internal Accounts

8000... for internal incomes

9000... for internal expenses

 

In maestro* 3.05, account numbers can only be composed of numbers, up to nine consecutive digits. When defining the chart of accounts, it is recommended to provide for the potential creation of additional accounts that may be required later on. The account numbering must therefore make allowances for this situation within the structure. For instance, some users decide to add 00 at the end of the numbers that were originally set, in order to have more flexibility.

The charts of accounts included in maestro* are generally less elaborate than those found in other ERP systems. Why? Because using a project structure and having the possibility to filter information by project - activity - group and/or using project groupings per type, category, or department eliminates the need to create an account for each project. For example, salary accounts can be limited to one account for administration salaries and another one for all other employees’ salaries. Though simplified, with this type of chart, it will always be possible to limit the display of these accounts values to one or several projects. In short, the chart of accounts of organizations managed with maestro* only include two to three pages as it doesn’t require duplicating the same account for each project. This makes managing this type of chart easier, thanks to its simplified structure.

 

The chart of accounts included in this document’s appendix can be used as a default chart or as a starting point to build a new one.

 

Account Groups

To facilitate, and more importantly, to simplify the display of financial statements, maestro* suggests creating account groups.1 These account groups are used to organize accounts and determine which groups appear in the financial statements. Once created, the groups are linked to general ledger accounts.

The most basic use of account groups consists in having a group for each type of account (assets, liabilities, equity, revenue, expenses). However, after creating the chart of accounts, it becomes easier to identify which additional groupings are needed. It is important to keep in mind that they will be used to structure financial statements and therefore, meet the needs of the organization’s managers. A security group can also be connected to an account group. A manager could decide to single out an account related to the reimbursement of their business expenses in a group and apply security specific to that group.

The recommended coding for account groups is to use the first letter of the account type and pair it with a number between 00 and 99. An organization’s asset accounts could be defined as follows:

Code

Account Groups

A00

Cash

A01

Current Assets

A02

Receivables

A03

Goods

A05

Fixed Assets

A07

Long-Term Assets

A08

Advances to Shareholders

 

 

For more examples, refer to the chart included in the appendix.

 

Bank Accounts and Currency Management

Of course, each company, each corporation even, must customize its chart of accounts to perfectly match its needs. That is why separate accounts must be created for each bank account. It is also to avoid having to make currency conversions that some, who use multiple currencies, decide to use separate bank accounts. In any case, whether it be to generate financial statements or to perform transactions in the software, maestro* renders possible the use of multiple currencies, for which the current rate and/or rate to use must have been specified.

 

Financial Statements in maestro*

Maestro* makes it possible to elaborate its various financial reports. As previously mentionned, it offers the basic version of a balance sheet and income statement, from which can be created various other versions of these same report types, to meet various needs and customer preferences. It is also possible to create a report from scratch.

Desired lines and columns can be defined for each financial report. It is therefore important to think about the data to be displayed, compared, and... eventually printed (since the number of lines and columns is not limited, it is also important to consider this aspect)! The structure of projects and possible groupings, based on project types, project categories, and project departments, thus impact the possibilities for creating financial statements. It is important to take this into account when configuring projects in maestro*. How do we want to analyse the company's profitability? Do we wish to view results by project, department, administrative region, division, service, etc.? Do we plan on comparing the current data with last year's figures at this time? Do we wish to display certain ratios and percentages?

The financial structure and configurations are directly linked to the report we wish to generate. And the best time to think about it is beforehand, before starting the implementation!

There are many advantages to using maestro*'s financial statements instead of simply doing them in an Excel file:

  • The data used is available in real time;
  • Users can generate and work on reports without creating files external to maestro*;
  • Users can generate multiple income statements of different formats to meets various needs (i.e. a very detailed report for internal users vs a more summarized report for the accountant);
  • If needed, the currency conversion is performed in the software;
  • Income statements can be generated at any time, even if they are not final;
  • Users can drill into the data to understand the origin and source of certain amounts;
  • Reports can be saved under different formats and/or transferred by email;
  • When used in multidimensional mode, maestro* allows to generate consolidated financial reports;
  • When resources are shared between different offices, companies, or divisions, or when using the maestro* multidimensional mode, masks can be used to filter the displayed information;
  • Etc.

As the composition and presentation of financial reports are configurable, it is possible to make comparisons between actual values and budget forecasts. Some variables and ratios can also be added and calculated in the financial statements.

Finally, it should be mentionned that maestro* allows the configuration of print queues, i.e. combinations of lists and different financial report formats, which a user can print, for example, at the end of each period. All financial reports generated in maestro* can be exported in an Excel file and/or transferred by email.

 

 

The amount of detail and parameters available in maestro* ensures the display and drilling of countless data, linked to as many transactions. This is not without affecting the performance of the software, when used excessively. It is therefore important to limit the number of fragmentation levels (for data drilling) and the number of lines and columns to what is really needed, in order to fully benefit from the flexibility and efficiency that maestro* offers.

 

Display and Layout

Various financial statement display details can also be managed in maestro*. Users can decide:

  • the font and font size;
  • whether they wish to round out displayed amounts or not;
  • whether they wish to display zeros;
  • whether they wish to display the account numbers as well as their description;
  • the account display order;
  • whether they wish to isolate certain accounts in the account group and/or perform account groupings;
  • whether or not to display subtotals and/or totals;
  • whether or not to display ratios;
  • to automatically reverse a debit or credit income or expense to allow them to be added together;
  • to mask certain information when printing;
  • to add, in the financial statements, the quantities sold in order to also display the average cost per sold unit;
  • etc.

 

Variables

In addition to ratios, variables can also be used in maestro*'s financial statements. Some basic variables, such as BUDMENSANPREC (for the monthly budget of the previous year) and more than thirty others are already configured for users, but they also have the possibility to create new ones from scratch.

 

 

Frequently Asked Questions

 

Is it possible to generate an income statement combining real incomes to date and projections made for the following month?

This type of functionality does not currently exist in maestro*. For most construction companies, near 90% of the budget is linked to projects. As data is highly variable and subject to change, obtaining financial statements generated by maestro* that combine real and fictitious values could generate misperceptions and/or false indicators to an uninformed user.

Can reports be generated for cash flow management analysis?

Maestro* has a specific option and tools for cash flow analysis. Functionalities and analysis tables are available but managed in options separate from those dedicated to the creation of financial statements.

That said, maestro* allows the almost unlimited creation of reports and other financial documents to address specific needs.

When multiple companies or divisions are managed using maestro*, is it possible to generate combined or consolidated financial statements? What is the difference between the two?

Consolidated Financial Statement

Consolidated financial statements are only available in multidimensional mode, meaning when more than one company of a corporation are managed by maestro*, that ressources are shared between these companies, and that intercompany entries are generated.

Consolidating the financial statements of two or more companies in maestro*, in multidimensional mode, ensures that the software applies the appropriate financial rules specific to the consolidation. In fact, when generating the consolidated income statement, a confirmation page is printed and displays the balance of intercompany accounts at 0. Internal incomes and expenses are therefore cancelled out. The data of all the companies in the corporation are compulsorily pooled.

Combined Financial Statement

The production of combined income statement is possible for all companies managing more than one company or division in maestro*, including those managed using the multidimensional mode. However, the account balances are only added; the intercompany income and expense accounts are not eliminated. The user determines, using the prefixes linked to the companies, which values will be added. They can therefore decide, for example, to combine the revenues and expenses of two out of five companies. If they decide to combine the data of all companies, the latter will add-up, but the internal incomes and expenses will not cancel out, as is the case when generating consolidated financial statements.

 

Please refer to the document concerning the maestro* multidimensional mode for more information on this subject and to decide, with your implementation specialist, on the best strategy for your company.

 

REMINDER

  • Maestro*'s project structure allows to complement and therefore reduce the need to have various general ledger accounts.
  • Using this project structure and the possibility to filter information by project - activity - group and/or use project groupings by type, category, or department eliminates the need to create an equivalent account for each project.
  • The projects - activities - groups are linked to general ledger accounts and allow for different drilling levels. They thus act as matrices and filter the information to be generated.
  • Each general ledger account created must be assigned a groupe identification code, such as the account type (assets, liabilities, equity, income, or expenses).
  • Maestro* allows the grouping of general ledger accounts; these account groups are therefore used to determine the groups used for financial statement presentation and to group accounts.
  • Maestro* offers a basic version of a balance sheet and income statement, from which can be created various other versions of these same report types, to meet a variety of needs.
  • With maestro*, it is possible to customize financial statements:
    • Every line in a financial statement can be configured;
    • It is possible to manage the displayed columns in financial statements, in order to perform calculations between data, use variables, and view ratios.
  • The presentation and display of financial reports can also be customized.
  • All financial reports generated with maestro* can be exported to an Excel file and/or shared through email.
  • Maestro* allows the configuration of print queues, i.e. combinations of lists and different financial report formats, which a user can print, for example, at the end of each period.
  • When a balance sheet, income statement, or trial balance are displayed on the screen, it is possible to drill on each of the accounts to view the transactions and find out what generated the account balance.
  • During the maestro* implementation, it is possible to import the company's chart of accounts using an Excel file containing the necessary information.

 

 

ACCOUNTING AND FINANCIAL STATEMENTS IN MAESTRO* - FOOD FOR THOUGHT

o

What is the size of your chart of accounts? How many accounts does it hold: 200, 1000, etc.?

o

Do you have equivalent accounts for each project?

o

Which account groupings would you like to make?

o

Do any of these account groupings require special security?

o

Do you use customized financial statements or statements other than the balance sheet and income statement? What is their composition? Do you wish to modify or add to the displayed data?

o

What do you want to compare and evaluate (ratios) on these reports?

o

What is the start date of your fiscal year? When do your periods close?

o

What cheque format(s) do you use?

o

What are the cheque statuses that should be set up in maestro*?

o

How many bank accounts do you have?

o

Do you need to manage foreign currencies?

 

Last modification: December 21, 2024

 

Appendix - Default Account List Suggested by Maestro

Account Description Group Description
10000 Bank A00 CASH
10005 Bank Revenue A00 CASH
10010 Bank Wages A00 CASH
10020 Bank Direct Payment A00 CASH
10050 Petty Cash A00 CASH
11000 Prepaid Expenses A01 CURRENT
11100 Employee Advances A01 CURRENT
11200 Supplier Advances A01 CURRENT
12000 Accounts Receivable A02 ACCOUNTS RECEIVABLE
12100 Withholding on Sales A02 ACCOUNTS RECEIVABLE
12800 Allowance for Doubtful Accounts A02 ACCOUNTS RECEIVABLE
13000 Inventory A03 INVENTORY
13100 Work in Progress A03 INVENTORY
15000 Land A05 FIXED ASSETS
15100 Building A05 FIXED ASSETS
15150 Cumulative Depreciation Building A05 FIXED ASSETS
15200 Computer Hardware and Software A05 FIXED ASSETS
15250 Cumulative Depreciation Hardware and Software A05 FIXED ASSETS
15300 Office Furniture and Fixtures A05 FIXED ASSETS
15350 Cumulative Depreciation Office Furniture and Fixtures A05 FIXED ASSETS
15400 Equipment and Tools A05 FIXED ASSETS
15450 Cumulative Depreciation Equipment and Tools A05 FIXED ASSETS
15500 Rolling Stock A05 FIXED ASSETS
15550 Cumulative Depreciation Rolling Stock A05 FIXED ASSETS
17000 Instal. Payment Provincial A07 LONG-TERM ASSETS
17500 Instal. Payment Federal A07 LONG-TERM ASSETS
18000 Advances to Shareholders A08 ADVANCES TO SHAREHOLDERS
20000 Bank Overdraft P00 CURRENT LIABILITIES
20100 Line of Credit P00 CURRENT LIABILITIES
21000 Accounts Payable P01 ACCOUNTS PAYABLE
21100 Withholding on Purchase P01 ACCOUNTS PAYABLE
21200 Customer Advances P01 ACCOUNTS PAYABLE
22000 Salaries Payable P02 SALARIES
22100 Accrued Salaries P02 SALARIES
22101 Accrued Fringe Benefits P02 SALARIES
22102 Accrued Expenses P02 SALARIES
22150 Vacation Payable P02 SALARIES
22200 CCQ Payable P02 SALARIES
22210 QRBHCA Payable P02 SALARIES
22300 Payroll Deductions Federal P02 SALARIES
22350 Payroll Deductions Provincial P02 SALARIES
22360 Alimony Garnishing Payable P02 SALARIES
22370 Pension Fund Payable P02 SALARIES
22380 CNESST Payable P02 SALARIES
22390 P02 SALARIES
22395 Group Insurance P02 SALARIES
22400 Union Payable P02 SALARIES
23000 Accrued Liabilities P03 PAYABLES
23005 Accrued Liabilities Subcontractors P03 PAYABLES
25000 GST Payable P05 TAXES
25100 QST Payable P05 TAXES
25200 GST and QST on Purchase P05 TAXES
25300 GST Receivable P05 TAXES
25400 QST Receivable P05 TAXES
25500 GST and QST on Receivable P05 TAXES
26000 Income Tax Payable Federal P05 TAXES
26100 Income Tax Payable Provincial P05 TAXES
27000 Long-term Loans P07 LONG-TERM LIABILITIES
28000 Shareholders Advances P08 SHAREHOLDER LIABILITIES
28100 Dividends Payable P08 SHAREHOLDER LIABILITIES
29999 Machinery Accrued P99 INTERCEPTION GROUP
30000 Share Capital C01 EQUITY
32000 Dividends C01 EQUITY
35000 Retained Earnings C01 EQUITY
40000 Revenues R00 REVENUES
41000 Sales Discounts R00 REVENUES
45000 Revenues Interests R05 INVESTMENT INCOME
49999 Revenues Internal R00 REVENUES
50000 Cost of Goods Sold D00 COGS
51000 Purchases D01 MATERIALPURCHASES
51150 Purchase Discounts D01 MATERIALPURCHASES
52000 Salaries Work Site D02 DIRECT LABOR
52500 Social Benefits D02 DIRECT LABOR
53000 Equipment D03 EQUIPMENT
54000 Subcontractors D04 SUBCONTRACTORS
55000 Other Costs D05 OVERHEAD COSTS
57000 Motor Vehicle Costs D05 OVERHEAD COSTS
58000 Depreciation D05 OVERHEAD COSTS
59999 Expenses Internal D05 OVERHEAD COSTS
60000 Sales Costs D06 SALES COSTS
70000 Salaries Administration D07 ADMINISTRATIVE COSTS
70100 Administration Social Benefits D07 ADMINISTRATIVE COSTS
71000 Rent D07 ADMINISTRATIVE COSTS
71100 Electricity D07 ADMINISTRATIVE COSTS
71200 Heating D07 ADMINISTRATIVE COSTS
71300 Maintenance D07 ADMINISTRATIVE COSTS
72000 Office Costs D07 ADMINISTRATIVE COSTS
72100 Computer Supplies D07 ADMINISTRATIVE COSTS
72200 Hospitality Costs D07 ADMINISTRATIVE COSTS
72300 Phone D07 ADMINISTRATIVE COSTS
72400 Internet D07 ADMINISTRATIVE COSTS
73000 Taxes, Licences and Permits D07 ADMINISTRATIVE COSTS
75000 Depreciation D07 ADMINISTRATIVE COSTS
80000 Interest and Bank Costs D08 FINANCIAL COSTS
90000 Income Tax D09 INCOME TAXES
91000 Deferred Income Tax D09 INCOME TAXES
99999 Interception Account P99 INTERCEPTION GROUP