Make the reporting definitions explicit
A production project may need direct contribution, a manufacturer inventory and work in progress, and a retailer results by outlet. Each view depends on consistent coding and a clear treatment of shared costs. We establish those definitions before building the reports.
The package can include financial statements, working-capital schedules and an operating commentary. Forecasts remain separate from actuals, with assumptions attributed to the manager responsible for them.
Explain commitments behind the cash
Customer advances, annual subscriptions, unpaid suppliers and equipment financing can make cash behave differently from profit. We identify the significant balances and connect them to a schedule. The owner can then see which funds relate to future delivery or upcoming payments.
Illustrative example: a studio’s apparent surplus
A Burnaby studio holds $52,000 after receiving project advances. Its schedule identifies $19,000 relating to unfinished work and $14,000 of approved unpaid commitments. The owner reviews those obligations with payroll and taxes before deciding whether the bank balance can support another equipment purchase.
Questions about this work
Do the reports provide assurance?
No. Bookkeeping and management reporting do not constitute an audit or review engagement.
Can forecasts be updated during a project?
Yes. We retain dated assumptions and significant changes so the owner can understand why the expected outcome moved.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review