With Spotlight, you can always be sure of reporting like the professional that you are. Having been developed by a team of qualified accountants, one wouldn’t expect anything less.
So, what’s new?
Loan Recording when Forecasting
Correct loan recording when forecasting could be a daunting exercise that’s more often than not, prone to errors. With Spotlight forecasting, however, you can now use the Loan Amortization Rule to properly record a new or existing loan—both the principal and interest amounts.
The recording process is utterly straightforward.
Open the Balance Sheet tab then the current or non-current liabilities section in your forecast or scenario.
Hit the Add Rule button—key in a name for the rule. It may be the name of the loan or one you’ll easily recognize it with.
Choose Loan Amortization under the Rule Type drop-down menu.
The next section will lead you to the following process:
- Apply Rule to—choose the correct account you wish to record the loan to.
- Journal to Account—the bank account to which payments are taken and the loan repayments.
- Interest Account—this account records interest expense arising from the loan.
Click on the ‘Next’ button and key in the following:
- Loan amount—this is the amount of the loan.
- Start Date—it reflects the date the loan was acquired
- Interest rate—the rate of interest of the loan.
- Loan period—the loan repayment duration.
- Repayment frequency—this records the repayment timings.
If there are additional payments other than the standard ones, click on the ‘Additional Payments’ icon and record the payment.
But then, what If it’s an existing loan and not a new one?
In this case, the loan must have been recorded earlier on either in your accounting system or the Fixed Asset rule. Simply proceed by selecting the loan already recorded in the accounts check box.
If you click ‘Next’, you will view the loan details, the monthly payments and interest on the Amortization Schedule Screen.
The schedule can be downloaded in PDF or Excel if need be.
You can then view the loan summary if you click ‘Next’. You can also show the loan summary on your report by checking the ‘Include in Assumptions Page of Report’ box.
Click ‘Next’ and if you don’t need to add any notes thereafter, click ‘Save Rule’.
The loan will now appear correctly in your Profit and Loss, Balance Sheet, and Cashflow forecasts.
QuickBooks desktop and Spotlight have taken the power of integration to a whole new level.
You can now seamlessly import data from your QuickBooks desktop into Spotlight. The data can then be used create powerful reports, forecasts, and dashboards.
The data can also be layered with info from Excel, Google Docs, and analytics to give you a better view of the organization.
Spotlight reporting is designed to deliver deeper insights and clarity to enable users to make more informed decisions.
Dynamic Rule enables you to set up essential rules that will keep numbers in your business up.
You can create rules that will link the profit and loss account to other values in the database. This will adequately adjust other relevant figures in your financial records.
If, for instance, the cost of a product is 30% of the revenue generated, add a dynamic rule and key in the formula to execute the rule. The formula can be (Product Revenue x 0.30) click ‘Next’ then ‘Save’ to have it set up. The product cost will be updated as the revenue changes.
Dynamic rules contribute immensely to having a more realistic forecast.
WhichAddOn is committed to supporting your advisory journey because your success matters to us.
If you experience any technical difficulties that require our intervention, don’t hesitate to get in touch with us today.
Till then, happy forecasting!