Bookkeeping & Accounts for the Small Practice Architect
BOOKKEEPING & ACCOUNTS FOR THE SMALL PRACTICE ARCHITECT All you ever wanted to know but were too frightened to ask! Purely a Guide and NOT a Solution!
Bob Morgan BA(Hons)Arch Dip Arch ARCHITECT IN2PRINT The Architect in Practice Series
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January 2017
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Bookkeeping & Accounts for the Small Practice Architect
PREFACE Firstly, I am not going to bombard you with a series of ‘Self-Improvement Lectures!’ Neither will you be pushed into buying to a piece of ‘Inappropriate Software,’ or subscribing to an ‘Underperforming Cloud-Service.’ Secondly, I do not belong to any Software Affiliate Programme, and will not receive any Commissions, Payments or other Inducements. Thirdly, the word ‘Awesome’ does not appear anywhere in this document! Some of you might be thinking “What an Odd Comment? – What is he talking about?” However, during my research, that is exactly what I found! – Even using subliminal inferences that if you do not use ‘CookBOOKS’ then you must be ‘Stupid!’ – No different to a ‘Spoof Research Article’ that appeared in 2011 stating that all those who still used MS Internet Explorer were ‘Stupid!’ – ‘Knocking Copy’ by Chrome, Firefox and Opera? In this document, I am making the case that ‘Architects are Different!’ Largely, our Bookkeeping and Accounting needs have been ‘Side-Stepped!’ – As we do not constitute either a Substantial or Viable Group to support, in terms of Software Authoring and Support. I chose to use a ‘Spreadsheet Format’ as it is both Graphic and Demonstrative, following Established and Accepted Principles of Practice Management. Quite simply, all Data Entries can be seen on the Screen, and will usually have the same Formatting when printed. However and just as above, there are those who espouse ‘Spreadsheets are for Dinosaurs!’ – Stating that they give rise to Formula Errors, Entry Mistakes, etc., and are also open the ‘Fraud!’ Leaving aside the latter for the moment, Formula Errors can be overcome with ‘Thorough User Road Testing’ and ‘Parallel Testing’ with Manual Books of Account. As the Spreadsheet Solutions are intended for the Small Practice Architect – “Why would I want to Defraud Myself?” Similarly, those who are ‘Peddling Bookkeeping Solutions’ have even suggested that the days of the basic ‘Single Entry Cash Book Approach’ are numbered! However and again, the argument is ‘Pitched’ on the back of ‘Something to Sell!’ Spreadsheets can also be operated at Two Levels. The First, will be by the Spreadsheet Author, who will use Formulas and other Functions, in order that the ‘Solution’ will ‘Report’ the information that is required. The Second Level is that of ‘The User.’ Here, the majority of a Worksheet can be ‘Protected.’ The Table (Below) shows the Protected Cells in Grey, and the Open Data Entry Cells in Blue. The Totals and Balances cannot be changed as they are Protected Cells.
TRANSOM & MULLION ACCOUNTS DATE 1 2 3 4 5 6
01-10-16 05-10-16 07-10-16 09-10-16 15-10-16 31-10-16
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OCTOBER 2016
DESCRIPTION
CREDIT
Rent Electricity Telephone & Internet Fees Received: Fairclough & Booth Fees Paid: Structural Engineer Fees Paid: Gus Pugin
£
DEBIT £ £ £
500.00 200.00 125.00
£ £
850.00 1,850.00
£
3,525.00
7,650.00
TOTAL:
£
7,650.00
TOTAL CREDITS: TOTAL DEBITS:
£ £
7,650.00 3,525.00
BALANCE:
£
4,125.00 Page 2 of 42
Bookkeeping & Accounts for the Small Practice Architect The alternative would be to adopt a ‘Database Application’ authored via MS Access rather than MS Excel. This is also the Basis for many Mainstream Accounts Solutions. Here, the ‘Graphic Nature’ of what is required is somewhat different. Databases operate firstly by ‘Collecting’ information and then secondly in ‘Reporting’ it. Following the Spreadsheet Example (Above), a Data Entry for MS Access would appear typically as follows. Viz., DATA ENTRY FORM Date: Transaction: Credit: Debit: Note:
01-10-16 Rent £500.00 October Rent
REPORTS FEE INCOME EXPENDITURE FULL STATEMENT
ENTER Data Entry is typically via a ‘Form’ with entries being made individually (Above Left). However, alternatively it may be entered as a Datasheet. The Database will have been structured to ‘Report’ in various ways. After the information has been gathered and input, a Report can be generated from a ‘Report Menu.’ (Above Right) With the Database Approach, information has to be handled in a far more ‘Structured’ manner. Additional Forms may be required that collect information on Clients and Employees, etc. Data Entry may require the use of several forms, before a complete entry becomes ‘Valid.’ Data then ‘Joins-Up’ via the Reporting Process. Unless ‘Planned Well’ the Database Approach can sometimes become a game of ‘Hide and Seek!’ – Having Completed a Form, and Clicking ENTER it ‘Disappears!’ I have no particular ‘Axe to Grind’ at all! There is some ‘Good’ Bookkeeping and Accounting Software. However, much can be regarded as ‘Overkill’ for the small Practitioner. Similarly, you can forget claims of “Get Paid 4 Days Faster by using CookBOOKS!” – Payment Periods are largely dependent upon how Diligent you are once an Invoice goes Live! Other claims espouse “Save 192 Hours a Year with CookBOOKS!” Mmmmm, 192 Hours is around Five Weeks! – If you are spending Five Weeks on Business Administration then there is something seriously wrong with your Business – And no Accounting Software can resolve that! For those on a Budget, or indeed ‘No Budget’ there are Free Open Source versions of MS Office. Apache Open Office and WPS Office are two such examples. The Companion Spreadsheets used with this document have been prepared in MS Excel. They are ‘Working Examples’ and NOT ‘Solutions!’ As we shall soon see, every Architect will operate differently – Therefore, a level of adaptation will be required.
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Bookkeeping & Accounts for the Small Practice Architect
INTRODUCTION If you had thoughts of Searching the Internet for ‘FREE ARCHITECT ACCOUNTS SOFTWARE’ then think again! – There is very little there! What there is, appears to fall at ‘Two Extremes!’ – There are the ‘Sledgehammers’ and the ‘Swiss Army Knives’ with very little in-between! None of it will be ‘Free!’ – And ‘CookBOOKS’ will be there at the Top of the List! (‘CookBOOKS’ have paid an SEO to make sure they are Top of the List!) The ‘Sledgehammers’ are Sophisticated Programmes, (allegedly) ‘Designed Specifically for Architects!’ They are often a ‘Suite of Modules’ that can run all of the Practice Administration (Correspondence, Instruction Orders, Payment Certificates, Time Sheets, Job Costing, Payroll, Financial Bookkeeping and even ‘Make the Tea!) Your first reaction might be “WOW! – Heaven Sent!” – But hold-on for a moment! Firstly, they are intended for the Larger Practice. In addition to a High Purchase Price, there are also Annual Fees! Secondly, you will need to have a ‘Trained HGV1 Driver!’ Thirdly, Office Procedures will need to change in order for the System to give Meaningful and Timely Reporting! – And, some of those changes will affect productivity! The ‘Swiss Army Knives,’ can be either Stand Alone or can be Internet Based ‘SaaS’ Programmes (Software as a Service) incurring a Monthly Fee. There are also Free Versions (Free Today! – But what is in store tomorrow, when you have uploaded all of your Financial Information and become a ‘CookBOOKS Addict’) However and just like the ‘Swiss Army Knife,’ they try to achieve everything, yet do none of it exceptionally well! – The Corkscrew on a Swiss Army Knife, will never be as good as a Dedicated Corkscrew, and why would you need something for ‘Getting Stones out of Horses Hooves?’ One Popular SaaS Programme can be considered as a ‘True Swiss Army Knife!’ It even has something for ‘Getting Stones out of Horses Hooves?’ – A Utility Programme that will allow ‘Team Members to Chat’ with each other! I regard that in the same way as Car Designers putting an Extra Set of Radio Controls in the Back Passenger Area! – Next to the ‘Child Seat!’
“Nothing meaningful is ever achieved through Compromise!” Mikhail Gorbachev Many Small Practices often resort to compromise! – Using one Application for Timekeeping, another for Bookkeeping, MS Word for Fee Accounts and possibly Spreadsheets for Job Costing. One Application cannot do all that we want! Even if it could, it would be out of reach financially, and still require ‘Workaround Solutions.’ The quotation (Above), was not accidental. Gorbachev graduated originally in Law. However, he found himself involved with Soviet Agriculture early in his career – He then earned a Second Degree as an Agricultural Economist, in order that he could address ‘Agriculture’ more competently. Here, we should also ‘Go Back to Basics!’ – WHAT is it that we want to achieve, and HOW can we achieve it? Our own Training and Education as Architects, enables us to address ‘Problems!’ Fundamental to the ProblemSolving Process is ‘The Brief!’ However, we can possibly identify two distinct sides to the Bookkeeping Function already. Firstly, we need to ‘Keep Account’ in terms of Statutory Accounts – However, this only gives a partial story! The second level of Bookkeeping relates to ‘Projects!’ – ‘Keeping Tabs’ on the Fee Spend, Anticipated Income, ‘Dead Dog’ Projects, and ‘Freeloaders!’ LEVEL 1: FINANCIAL ACCOUNTS Business Registration & Renewal Statutory Financial Accounts (Profit & Loss and Balance Sheet) Cash Management Taxation and VAT Bank Account Monitoring Payroll BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect LEVEL 2: MANAGEMENT ACCOUNTS Time Recording Printing, Travel, Expenses and Disbursements Job Costing and Reporting (Individual and Collective) Fee Bidding Fee Accounts (Scheduling, Issuing, Chasing and Collecting) Partnership Accounts From the above, it is relatively easy to define the Level, Frequency and Content of the ‘Reporting’ that is required by our Bookkeeping and Accounting System – “WHAT do we need to know, in order to keep the Business Running?” Equally as important, is “HOW do we need to see it?” Let us now revisit those earlier ‘Google Searches!’ Given what we now know, it seems that none of them will be 100% Effective! Setting aside the ‘Sledgehammers’ for a moment, we can now see that the ‘Lightweights’ tend to fall short of our requirements – Hence the level of compromise above! Most of the ‘Swiss Army Knives’ try to be a ‘One Size Fits All’ solution! – Attempting to cater for a variety of different Businesses. However and more importantly, we discovered (almost by accident) that the Architectural Profession is ‘Unique’ in terms of Bookkeeping and Accounting! – It ‘Crosses the Divide’ between Management Accounts and Financial Accounts – Many Bookkeepers and Accountants fall to one side of the fence or the other, and few deal with both aspects!
“Memo to Self: Bookkeeper and Accountant to have ‘Architect’ Experience!” The ‘Nature of the Business’ is a fundamental criterion in selecting Business Software. Many of the ‘One Size Fits All’ solutions are aligned to Retail and Manufacture. Software therefore revolves around Stock and/or Inventory! – As Architects our ‘Inventory’ is our ‘Work in Progress’ and has to be handled rather differently. Consequently, we cannot attribute instant value to ‘Cost of Sales’ in terms of a Financial Profit & Loss Account. More importantly the quotation above, ‘Speaks Volumes!’ Computer Software cannot really help you! – Yet a ‘Properly Aligned’ Bookkeeper and Accountant can! The Financial Crisis of 2007/8 had a dramatic effect on the Construction Industry. A decade on, and many Architects are waiting for their Salary Levels to return to 2006 Levels in real terms! However, much can be learned from the past decade. The Profession has undergone a ‘Sea Change!’ The Medium Sized Practice Sector has shrunk considerably. Some firms have been lucky in being absorbed into much larger organisations. However, the majority have ‘SlippedDown a League Division,’ and now fall into the category of Small Practices – Indeed, the majority of Architectural Practices now have 9 Permanent Staff (Including Principals) or less! (Source: RIBA and AIA) Employment Practice has also changed. Contract Work and Self-Employment are now more common for Architects and Technicians with ‘Staffing’ being varied according to Workload. Collaboration is also common between two or more smaller firms, in order to undertake large projects. However, as organisations have become smaller, their ability to ‘Carry Overhead’ has been reduced. Much here is due to Fees being driven-downwards by overly optimistic Clients! Today, and all too frequently the ‘Architect’ is regarded as a ‘Design Contractor!’ By being regarded as a ‘Contractor’ the Architect has to bear the cost of (Liquidated and Ascertained Damage) Penalties. Adding further ‘Insult’ will be the requirement for Bank Guarantees and Performance Bonds – All to be paid from Drastically Reduce Fees, which will inevitably be paid late. We cannot underestimate the ‘Back Office Function!’ – Do so at your Peril! However and commonly, its significance is not appreciated fully. Given the above, when being treated as a Contractor, we have to think like one too! Consequently, our decisions must have ‘Substance’ and be based upon Sound Financial Reporting.
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Bookkeeping & Accounts for the Small Practice Architect
BOOKKEEPING BASICS Cover Graphic! Is that you? – Someone who puts all of the Chits, Dockets, Invoices and Fee Account Copies into a ‘Shoebox?’ – Waiting for that ‘Nice Lady’ that will come around at the end of the month to put it all in order, while you ‘Concentrate on Real Work?’ – It can work for a while! – But then the ‘Nice Lady’ becomes more ‘Officious!’ Before long, she is joined by a few friends from the Tax Department and VAT Office who appear to ‘Speak in Tongues!’ They also drink all of your Coffee, eat all of your Biscuits, and invite themselves to the Christmas Party!
What’s it all about? Firstly, it is NOT Difficult! However, many Accountants and Bookkeepers have a penchant for making ‘Rocket Science’ out of ‘Simple Arithmetic!’ (Let’s be honest for a moment! – Most Architects can make ‘Bricklaying,’ sound like ‘Quantum Physics’ at times! – It’s part of our ‘Professional Largesse!’) Your Business generates INCOME by providing a Professional Service. In short, we sell our Skills and Knowledge! You have EXPENSES in the form of Rent and Salaries etc. – Very simply, Money comes IN (Fee Revenue), and Money goes OUT (Expenses)! Therefore, in order to ‘Make a PROFIT’ we must ensure that the gap between the two is as large as possible! – And, remains like that! Secondly, a Bookkeeper ‘Records and Classifies Financial Events!’ – The Accountant ‘Interprets those Results’ and will give Opinions and Advice to his Client. He may be responsible for ‘Presenting’ the Accounts for Statutory Submissions – There is really no ‘Mystery’ at all! You have a ‘Service Orientated Business,’ and you need to record Financial Events correctly. Not all Mainstream Software Programmes will be suitable, as they are often aligned to a Business that carries ‘Stock or Inventory!’ It should also be recognised that Bookkeepers and Accountants have their ‘Favourite Software too!’ – It can make life ‘Easy for Them’ – Yet might not be ‘Easy for YOU!’ In any event a considerable amount of time will be spent in ‘Front-End Initialising’ the Software in order that it ‘Fits’ YOUR Business (NOT the other way around! – Or ‘Moulded’ around another Time Related Profession!) There will be other considerations such as ‘Business Status’ – Whether you are a Sole Practitioner, Partnership, Limited Partnership or Limited Company, as there will be different Statutory Filing Procedures, and Accounting Conventions to follow. There are also Professional Codes to follow too. We then need to address the NATURE of the Business, WHAT we do, HOW we do it and WHERE we do it! This will reveal two distinct sides insofar as ‘Money’ is concerned for the Small Practice. On the one side there will be Money in the Bank and Cash in the ‘Biscuit Tin!’ On the other, we need the ability to ‘Monitor’ Projects and Fee Income. Cash and Money in the Bank will fall into the ambit of ‘Financial Accounting.’ Project Monitoring and Fees can be classified as ‘Management Accounting.’ Financial Accounting will NOT be able to tell you how well a Project is performing! – By the same token, Management Accounts will NOT give you a Bank Balance. However, the two can be regarded as ‘Different Busses, Travelling in the Same Direction!’ Financial Accounting will be within the realm of the Bookkeeper. Here, Financial Events are Recorded and Classified ‘Historically’ as they happen. Management Accounts will be able to achieve a level of ‘Forecasting’ in terms of Fee Revenue and Resources – These activities will be within the domain of the Practitioner! – However, whilst we have ‘Different Busses’ there will be points at which they stop at the same time – We need to ‘Communicate, Collaborate and Coordinate’ using both sets of accounts. BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect
FINANCIAL ACCOUNTING Above, we defined that we have a ‘Service Orientated Business,’ and we need to record Income and Expense. This can be regarded as the ‘Business Model’ which will dictate HOW we record those events. Here it should be evident that the mechanisms of a Service Business are very different to those of Manufacture or Retail. We do not have to deal with Raw Materials or Supply Chains – Neither do we carry Stock or Inventory, or offer ‘Consumer Credit’ – And, ‘What the Hell is Cost of Goods Sold?’ The Starting Point for any Bookkeeping System (Manual or Computerised) is the ‘Chart of Accounts.’ However, the term ‘Chart’ is something of a ‘Misnomer!’ – In many instances, it is a ‘List of Account Addresses.’ In some respects such ‘Accounts’ can be regarded as ‘Letterboxes’ where items are ‘Posted.’ For the Architect in Practice, the ‘Chart’ will become more ‘Graphic.’ There will be information drawn from the Practice Organisation Chart and ‘Links’ can be established between the Financial Accounts and Management Accounts, to enable Reporting. A good example here would be the Calculation of ‘Book-Back Rates.’ Information will be required from the Financial Accounts in terms of Salary and Government Withholding, etc. In addition, an ‘Overhead Cost’ would need to be calculated for each Fee Earner – This information would include Rent and Utility Bills, etc. Here, ‘Raw Financial Information’ from the Financial Accounts, will be used as a Key Element in the Management Accounts. The process of establishing your Rate Tariff needs to be accurate, and based on ‘Real Performance.’ Many rely merely upon a ‘Multiplier’ of Gross Salary. However, this lacks the ability for any fine tuning, especially when ‘Bidding Hard!’ You will need to set aside Time with your Accountant and Bookkeeper in order to develop the ‘Chart of Accounts,’ as this will ‘Save Time’ further along the line. The Schedule of Accounts will NOT be ‘Set in Stone!’ Therefore, sufficient ‘Capacity’ should be given to the ‘Numbering Bands’ used. In any event, the ‘Individual Accounts’ will fall under the following headings. Viz., 1. 2. 3. 4. 5.
Assets Liabilities Equity Income Expenses
From the above Headings, the ‘Chart’ is then developed, with subsidiary Accounts being created. This process is more aligned to the larger organisation that will use Double-Entry Bookkeeping. Whilst ‘Double-Entry’ has the assurance of Arithmetic Checking, it also tracks ‘Financial Movements’ from one category to another. However, the Single Entry ‘Cash Based’ System should recognise this, as it will make life much easier for an Accountant in terms of Statutory Reporting from a Single Entry System. This presumes that the Practitioner will merely carry out the job of Bookkeeper, leaving Analysis, Submissions and Presentation to an Accountant. Much here will be dependent upon the ‘Business Style’ and the ‘Volume of Transactions.’ There is also a ‘Balance’ to be made in terms of ‘Time Expenditure’ – We are Architects and NOT Accountants! Therefore, time spent in ‘Learning Accountancy’ is time that is NOT Fee Earning as an Architect. Indeed, if we had wanted to be Accountants, then surely that would have been our Career Path!
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Bookkeeping & Accounts for the Small Practice Architect
EXPENSES
35000 Summation of All Below
Rent: Office Rent: Accommodation Salaries: Permanent Staff Salaries: Contract Staff Consultants Utilities: Office Utilities: Accommodation Vehicles: Fuel Maintenance: Office Maintenance: Accommodation Maintenance: Vehicles Maintenance: Computer Hardware
35100 35150 35200 35250 35300 35400 35450 35000 35550 35600 35650 35700
Single Entry or Double Entry? – A Nation Yawns! This is probably the point where many will ‘Switch-Off and Stop Reading!’ However and again, it is nothing more than ‘Simple Arithmetic!’ There are no ‘Black Arts’ whatsoever! – And most can be done on the ‘Back of a Cigarette Packet!’ – But, they do NOT want you to know that! SINGLE ENTRY Single Entry is Simple! – For each Financial Event, an ‘Entry’ is made in the Books of Account – End of Story! Single Entry Bookkeeping is suited to the Small Practitioner, with records being kept in the format of a Simple Cashbook (Again, recording Money IN and Money OUT!) The number of Monthly Transactions will be ‘Relatively Low,’ extending no further than a Single Page – “What you see is What you Get!” – So there is little need for being overly sophisticated. Even if carried out Manually, Columns of Figures can be added with a Calculator. A more efficient procedure would be to use a Simple Spreadsheet, where Columns can be totalled automatically using the =SUM Function in MS Excel. Adding a further Level of Information would be to add a Final Column, which Reports a ‘Rolling Balance’ following each Transaction.
ACCOUNTS RECORDS DATE 1 2
October 2016 DESCRIPTION
09-10-16 Fees Received: Fairclough & Booth 15-10-16 Fees Paid: Structural Engineer
CREDIT £
DEBIT
7,650.00 £
850.00
All Entries are considered as ‘Cash’ (Even though they might be paid by Cheque or Electronic Transfer). Entries are also made ‘At the Time’ a Transaction occurs – A Bill for Printing of £100.00 will not show on the Books until it is paid. Similarly, Invoices for Fee Revenue, have no ‘Value’ until they are paid! DOUBLE ENTRY The Double Entry System can be considered in the same way as Newton’s Third Law of Motion “For every Action there is an Equal and Opposite Reaction!” In Bookkeeping Terms this can be defined as “For every Credit, there is an Equal and Opposite Debit!” However, at the Heart of the System is the ‘Accounting Equation!’ Assets = Liabilities + Equity BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect In Plain English it presumes that the ‘Assets’ of a Business are all ‘Owned’ by someone. Here, you either ‘Borrow’ to ‘Aquire’ those Assets (Increasing Liability), or you ‘Own them Outright!’ Thus, increasing Equity. Note how the terms ‘Assets, Liabilities and Equity’ mimic the First Three Categories from the Chart of Accounts. Income and Expenditure reflect the ‘Nature of the Business’ which is ‘Service Orientated!’ In the first instance, an Entry is made to the Books of Account in the same way as Single Entry. However, it will also be ‘Posted’ to an ‘Account Address.’ Here, we can see the importance of the Chart of Accounts, which defines all of the Subsidiary Accounts and Collection Accounts, related to Assets, Liabilities, Equity, Income and Expenditure! – More importantly it provides a ‘Road Map’ of how to get from one to the other!
LEDGER ACCOUNT: STRUCTURAL ENGINEER DATE 1 2
38211
DESCRIPTION
15-10-16 TRANSFER From Revenue 15-10-16 Fees Paid: Structural Engineer
CREDIT
DEBIT £
£
(850.00)
850.00
Above, we can see that we are dealing with the Structural Engineer’s Account (38211). We need to Pay the Engineer £850.00, yet we need to ‘Draw’ the same amount from the Revenue Account (The Revenue Account will show the Transfer too). Double-Entry also requires some getting used to in terms of Credits and Debits. In the Books of Prime Entry, they behave as we would expect – Credits ADD and Debits SUBTRACT. However, once ‘Posted’ to a Subsidiary Account, the Complete Opposite occurs! Money coming in is a DEBIT and a Payment is a CREDIT. Double-Entry has been an accepted method of Bookkeeping for Centuries! – As such, it also relied upon Manual Addition and Subtraction, long before Calculators and Spreadsheets. Therefore, it can be regarded as having its own level of ‘Error Checking.’ Upon final analysis, the Credits and Debits in the Subsidiary Accounts should Balance with the Books of Prime Entry. Some might regard it as requiring a Duplicate Level of Input, as a Spreadsheet will calculate things automatically. However, by following the Chart of Accounts, it makes the preparation of Statutory Reports (Profit & Loss and Balance Sheet) far easier, as it follows the Accounting Equation, and Tracks the movement of Money from Assets, Liabilities, Equity, Revenue and Expenditure. Above, we can see that £850.00 has been taken from the Revenue Account, and placed into the Structural Engineer’s Account (38211) Thus giving ‘Sufficient Funds’ to Pay the Bill! This of course, has to be ‘Verified’ against the Bank Account in order to determine ‘Liquidity!’ – Sufficient Cash in the Bank Account! Double-Entry is suited to the Larger Organisation, where there is a Large Volume of Transactions requiring a Second Level of Checking, and greater continuity when addressing Assets, Liabilities and Equity. In some instances companies may separate various Bookkeeping Functions, such as ‘Accounts Payable’ and ‘Accounts Receivable.’ Larger Companies will also have different ‘Gearing.’ Banks, Insurance Companies and Pension Funds for instance will have large Assets of ‘Available Cash.’ They will also have extensive Assets in terms of Property. Here, converting a Property Asset into ‘Liquid Cash’ cannot ‘Happen Overnight!’ Therefore, they have to achieve ‘Balance’ between Cash and Property. Double Entry and the Results it produces in terms of Statutory Accounts (Profit & Loss and Balance Sheet) place all Businesses on a ‘Level Playing Field!’ – Permitting comparisons to be made with regard to Company Performance.
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Single Entry –v– Double Entry Some have suggested that ‘Single Entry Bookkeeping’ will be ‘Dead in the Water’ within a few Years! My only response is to ask “WHY!” – It is Simple, Unobtrusive, and does NOT require Bookkeepers or Accountants! – Is this possibly the reason for its ‘Suggested Demise?’ – By the same token, could we also look-forward to receiving Monthly Bank Statements in Double Entry (Accrual Based) Format? (More on the ‘Cruel Format’ later!)
MANAGEMENT ACCOUNTING The Management Accounting for a Small Practice, will be separate from the Financial Accounts. However, the same Bookkeeper could be responsible for Data Entry and Reporting. The Management Accounts will Report ALL Project Activity. As we know all too well, there can be a large amount of ‘Real Work’ carried out, before a Fee is received. Practitioners constantly have to ‘Juggle’ several Projects at any one time, in order to ensure ‘Cash Flow’ (Both to the Projects and the Practice). Dependent upon the Project, Client and Programme, monitoring will be Daily, Weekly or Monthly. The ‘Hub’ of the Management Accounts will be the ‘Job Cost Sheet.’ Every Project will have one, irrespective of whether or not the Project is Fee Earning or Non-Fee Earning (More Below). The Job Cost Sheet will record the following. A detailed example of a Small Practice Job Cost Sheet, is given later in the Document. Viz., 1. 2. 3. 4. 5. 6. 7.
Cost of Time (Booking Rates & Time Sheet Information) Printing & Reprographics (Tariff Sheet & Requisition Dockets) Travelling (Tariff Sheet & Private Vehicle Log) Expenses (Costs attributable directly to a Project) Disbursements (Payments made on behalf of a Client) Client Fee Payments Rolling Balance
The Job Cost Sheet will give a ‘Snapshot’ of the Financial Performance of each Project. Both individually and collectively! Job Cost Sheets will become the equivalent of ‘Radar!’ – Thus providing valuable ‘Intelligence’ that will be used in order to plan Workload and Resources.
Naked Booking Rates So far we have not mentioned the word ‘Profit!’ – We all need to make a Profit! ‘Turning a Profit’ is what will enable the Business to both Develop and Grow. It will pay for New Equipment. Profit will also be what the Partners/Principals will ‘Draw’ from the Business in the form of a Salary – Albeit relatively intermittently. However, on the other side of the coin, we have to be ‘Competitive in Winning Projects!’ Here we must ask a very fundamental question, “How can we Bid for Work, without Knowing the Cost!” Unbelievably, some 40% of Practices ‘Fly by the Seat of Their Pants!’ No Timekeeping and No Job Costing! – Running Purely upon ‘Gut Feeling’ and a Bank Balance! – If nothing else, this is ‘Planning in order to Fail!’ – With no ‘Radar’ a Delayed or Defaulted Fee Payment can then have disastrous consequences! – “Beam me up Scottie!” Our ‘Benchmark Booking Rates’ need to be considered WITHOUT Profit! – They represent Cost Only! A ‘Variable Profit Percentage’ should then be applied. The variability of the ‘Profit Element’ will address such issues as Client, Location, Programme, Payment Terms, Degree of Difficulty, Programme and also Practice Status. It will also take account of Staff Performance given the Project Stage and Tasks required. In this way a Fee Bid can be ‘Fine Tuned’ to a high degree.
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Bookkeeping & Accounts for the Small Practice Architect Keep in mind that some Mainstream Software does NOT accommodate Variable Tariffs for individual Fee Earners. Tariffs for Time (Charge-Out and Booking-Back), Printing, Travel and Expenses should also be reviewed on a regular basis. There is also some merit in keeping ‘Ahead!’ Here, potential ‘Salary Increments’ should already be included in your Rates! – Otherwise you can find yourself ‘Running Behind the Field’ for a substantial part of the year. The same applies to ‘Projected Rent Increases’ when calculating ‘Overheads.’ Extending from the Domestic and Local Level, we also need to address Regional, and National ‘Trends’ regarding their future effect on the Business. A good example here would be potential changes in the Annual Government Budget Statement. In the UK greater pressure has been applied upon Employers in terms of Employer Contributions, and Pensions. In the Middle East, the UAE reduced the 3 Year Residency Visa to 2 Years (Increasing Overhead). In The Philippines, Legislation is on the horizon, which will give ‘Contract Staff’ the same Employment Rights as Permanent Employees. In all three instances ‘Planning in Advance’ is required, in order that any ‘Uplift in Rates’ does not become a ‘Belated Knee-Jerk Reaction!’ – Clients do not ‘Enjoy Surprises!’ For the Small Practice, there will also be ‘Opportunity Costs.’ These can be considered in several ways. For instance, by taking a ‘Lower Profit,’ could ‘Win a Project’ that will put the Practice into a ‘Different League!’ It could also lead to a ‘Long Term Client Relationship’ and the prospect of ‘Regular Commissions!’ By the same token, a ‘Capital Purchase’ such as a CAD Workstation could be aligned to a ‘Project Win’ and an Advance Fee! However, there will also be times when ‘Margins’ have to be ‘Pared Back to the Bone’ in order to ‘Keep Afloat!’ – Although lacking ‘Fiscal Sensibility’ sometimes we do have to accept Commissions, purely for ‘Turnover!’ – ‘When needs must, the Devil Drives!’
Book-Back, Charge-Out, Fee Earners and Non-Fee Earners? Here, we need to add a ‘Level of Sensibility!’ The references above, will be attributable almost exclusively to the Management Accounts. Although the terminology might sound ‘Similar’ there are some fundamental differences in how the expressions operate. Viz., BOOK-BACK RATE This is the Rate Per Hour that is ‘Booked Back’ against a Project in terms of Job Costing. For every Hour Worked on a Project, there will be a Cost Incurred, which has to be Recorded – Irrespective of Fee Income! The Rate will include Gross Salary for the Employee, Overheads, and a ‘Predetermined Level of Profit.’ The ‘Hours Worked’ will be gathered from Time Sheets, and the Rate should have been established long before we get to Fee Bidding or the Fee Agreement! CHARGE-OUT RATE If you are lucky enough to be paid Hourly during the initial stages of a Project this will be the Amount Charged Directly to a Fee Account or Invoice (Multiplied by the Hours Logged). Again, Gross Salary for the Employee, Overheads, and a ‘Predetermined Level of Profit’ will have been Agreed with the Client. Alternatively a ‘Cost Plus Arrangement’ may have been negotiated. Here, Monthly Billing will be on the basis of ‘Cost!’ (Gross Salary and Overheads) The ‘Profit Level’ will have been agreed beforehand, and will then be applied as a ‘Nominal Fixed Percentage.’ FEE EARNER A ‘Fee Earner’ can be regarded as a ‘Coal-Face Worker!’ – Usually an Architect, Engineer or Technician who is directly involved with a Project. However, whilst having ‘Project Related Responsibilities’ there are also ‘Overheads’ in terms of ‘Management Time.’ (More Later) NON-FEE EARNER A member of the Support Staff having little or no involvement at the ‘Coal-Face!’ Here we can include Messengers, Administration Support, Drivers, and Secretarial Staff, etc. However, there are times when Non-Fee Earners may become ‘Partial Fee Earners.’ (More Later)
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Bookkeeping & Accounts for the Small Practice Architect
CASE STUDY: TRANSOM & MULLION Transom & Mullion is a Small Architects’ Practice in the UK. There are two Equity Partners (Art Transom and Gilbert Mullion). They employ Gus Pugin as a Sub-Contract CAD Technician, when required. The number of Financial Transactions is very low (6 Per Month). Therefore, Bookkeeping for this Business will follow Single Entry and Cash Based Rules (Money IN and Money OUT!) – Why get into ‘Quantum Physics?’ In the Example (Below) we will explore the two distinct areas of Financial Accounts and Management Accounts. We shall also examine ‘Points of Confluence!’ – Very simply, where the two sides of the Business ‘Meet’ in order to give Meaningful Reporting. Irrespective of Practice Size and Staffing Level, the same ‘Rules’ operate throughout the Profession! – Just worry about the ‘Zeros on the End, and the Decimal Points!’
TRANSOM & MULLION ACCOUNTS DATE 1 2 3 4 5 6
01-10-16 05-10-16 07-10-16 09-10-16 15-10-16 31-10-16
OCTOBER 2016
DESCRIPTION
CREDIT
Rent Electricity Telephone & Internet Fees Received: Fairclough & Booth Fees Paid: Structural Engineer Fees Paid: Gus Pugin
£
DEBIT £ £ £
500.00 200.00 125.00
£ £
850.00 1,850.00
£
3,525.00
7,650.00
TOTAL:
£
7,650.00
TOTAL CREDITS: TOTAL DEBITS:
£ £
7,650.00 3,525.00
BALANCE:
£
4,125.00
All Outgoing Payments are made by Cheque. Therefore, the Bank Statement will ‘Mimic’ the Office Bookkeeping, and act as a level of Reassurance – Albeit a few days behind. Note that the Dates in the Bank Statement (Below) represent the ‘Clearance Date’ for Cheques. The Dates above (Accounts) represent the Date of Transaction. However, the Cheque issued to Gus Pugin (31-10-16) was an ‘Uncrossed Cheque’ enabling Immediate Encashment upon Presentation – Otherwise known as a ‘Bearer Cheque.’
MARTINS BANK
STATEMENT
Walmington-on-Sea Branch
October 2016
DATE 01-10-16 04-10-16 09-10-16 09-10-16 14-10-16 18-10-16 31-10-16
BK3-INS.DOCX
TR
DESCRIPTION
CHQ CHQ BGC CHQ CHQ CHQ
OPENING BALANCE 25466591 25466592 Fairclough & Booth 25466593 25466594 25466595
CREDIT
£
DEBIT £ £
500.00 200.00
£ £ £
125.00 850.00 1,850.00
7,650.00
BALANCE £ £ £ £ £ £ £
3,275.00 2,775.00 2,575.00 10,225.00 10,100.00 9,250.00 7,400.00
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Bookkeeping & Accounts for the Small Practice Architect Reconciling the Accounts against the Bank Statement is relatively straightforward. They both span the same Period of Time, and there are no ‘Outstanding Effects’ (Uncleared Credits and Debits together with ‘Unbanked’ Items). By Subtracting the Opening Balance from the Closing Balance (Bank Statement) we achieve £4,125.00 This matches exactly the Monthly Accounts. Here we can see that everything ‘Balances,’ AND that there is Money in the Bank. Where this does not occur, we have to ‘Take Account of Uncleared Effects,’ via a Bank Reconciliation. The same happens for Bank Charges, and Interest – Where sums of money will have been deducted automatically by the Bank, and will only show on a Bank Statement! – The Bank can ‘Help Itself’ and does not require a ‘Purchase Order!’ Transom & Mullion has one Large Project for a Local Contractor (Fairclough and Booth). Whilst the Financial Accounts look ‘Reasonably Healthy’ (Cash in the Account), let us take a look at the Management Accounts for the Project. The ‘Information Source’ for the Job Cost Sheet is derived from Timesheets, and a record of any other Expenses such as Travel Costs and Printing etc. Note that Management Forms are displayed in Blue and Financial Forms in Black. Here we can define a ‘Point of Convergence’ between the Financial Accounts and the Management Accounts. Information held on one side, can be used in order to make decisions on the other.
1225
Fairclough & Booth
DATE 01-10-16 08-10-16 08-10-16 09-10-16 15-10-16 15-10-16 16-10-16 22-10-16 22-10-16 22-10-16 22-10-16 24-10-16
JOB COST
DESCRIPTION OPENING BALANCE Gus Pugin (Time Charge) Art Transom (Time Charge) Fees Received Gus Pugin (Time Charge) Art Transom (Time Charge) Printing Gus Pugin (Time Charge) Art Transom (Time Charge) Gus Pugin (Time Charge) Art Transom (Time Charge) Printing
CREDIT
£
DEBIT £ £
1,125.00 80.00
£ £ £ £ £ £ £ £
975.00 60.00 225.00 1,350.00 140.00 1,125.00 50.00 325.00
7,650.00
BALANCE £ -£ -£ £ £ £ £ £ £ £ £ £
1,125.00 1,205.00 6,445.00 5,470.00 5,410.00 5,185.00 3,835.00 3,695.00 2,570.00 2,520.00 2,195.00
No Advance Fee was received so the Project ran in Deficit until a Fee Payment on 09-10-16 albeit for a few days. That is fine, as there were no ‘Substantial Payables’ from the Financial Accounts at that time. The Time Charges for Gus Pugin and Art Transom are calculated to include Salary Paid, Government Payroll Contributions, Overheads and Profit. Rates also include a level of ‘Non Productive Time.’ This will be the Rate for the Project or Project Stage! (Calculating Rate ‘Build-Ups’ is discussed later in the Document.) Several Items also ‘Cross the Divide’ between Management Accounts and Financial Accounts. As of 31-10-16 the Bill for Printing (£225.00) had not been received from the Printer. However, this should be entered ‘Routinely’ in the Job Cost Record, as the Cost has already been incurred. The Printing Bill will appear in the Financial Accounts for November 2016 (Following Month). It could also be the case that Printing is in ‘Addition’ to the Fee, generating further Revenue.
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Bookkeeping & Accounts for the Small Practice Architect Here, a Separate Invoice will be required to Fairclough and Booth, in order to cover Printing Costs. A Payment to Gus Pugin will also appear on the Financial Accounts. Therefore, both the Bank Account and Job Costs should have sufficient ‘Capacity’ or ‘Liquidity’ in order to cope. Looking back at the ‘Chart of Accounts,’ each Project will require an Account, in order to judge ‘Fee Performance’ and ‘Debt Ageing!’ – Job Numbers are usually adequate in order to analyse this. All entries in the Financial and Management Accounts are made on a ‘Cash Basis.’ Very simply, this assumes all Income and Expenditure to be ‘Cash!’ – Even though it has been paid through the Bank. Each Transaction is recorded ‘On the Day!’ With the Job Cost Sheet, Time Entries are made ‘Weekly’ – Yet they are entered as though the Expense has been incurred – Which it indeed was! Where Projects are running in a more critical state, consider Updating and Monitoring the Job Cost Sheet on a Daily Basis. Note that Job Cost Entries are made Net of VAT (No VAT Added). By 24-10-16 a Balance of £2,195.00 CR Remains on the Job Cost Sheet. This will enable ‘Management Decisions’ to be made with regard to Resources and/or Fees. Very simply, ‘Is there enough FEE left, to FINISH the Job?’ The example above shows only one Job Cost Record. However, the Practice will need to see the ‘Bigger Picture’ of ALL PROJECTS when put together, in order to decide whether they can ‘Borrow from Peter, to Pay Paul!’ The ‘Global Picture’ will be achieved by gathering all of the Current Project Job Cost Sheets, and displaying them as a Single Entity. A ‘Project Review’ (Below) or ‘Project Master’ will bring together Fee Earning and Non-Fee Earning Projects together for the first time. Here, there are important ‘Ratios’ to define in terms of the Practice’s capability to undertake Non-Fee Earning Work.
PROJECT REVIEW START
END
PROJECT
01-06-16 01-07-16 01-08-16 01-10-16
30-06-16 31-07-16 30-09-16 15-11-16
1220: Timothy Whites Chemist 1221: Novelty Rock Emporium 1223: Dante's Inferno 1225: Fairclough & Booth
FEE
COSTS
BALANCE
£ £ £ £
8,575.00 12,275.00 10,250.00 7,650.00
£ £ £ £
9,500.00 13,665.00 8,925.00 5,455.00
-£ -£ £ £
925.00 1,390.00 1,325.00 2,195.00
£
38,750.00
£
37,545.00
£
1,205.00
As with most things in life, we can see ‘Swings and Roundabouts!’ Timothy Whites and The Novelty Rock Emporium achieved a Deficit that will either ‘Erode or Cancel’ the Profit Margin. Indeed, it could even ‘Eat into the Meat’ of the Fee (Negative Profit). However, the Practice remained in Credit, when ALL Projects are considered over a 4 Month Period. Therefore, a level of ‘Balancing’ was achieved, and this is no exception! Dayto-Day ‘Balancing’ is required for all Practices, irrespective of size. Upon final analysis the Practice has £7,400.00 CR in the Bank, and a Balance of £1,205.00 CR ‘Remaining’ on its ‘Work in Progress.’ Here we can see that more Projects will be required to become ‘Live’ during November and December, should the Partners choose to ‘Draw Cash’ from the Business – Which they undoubtedly will during December! Whilst the example above is quite simple, it demonstrates the importance of Management Accounts within an Architects’ Office. This is especially so where Projects remain ‘Uncompensated’ for long periods of time. Ordinarily a Studio will have a Minimum of 80% Fee Earning Projects to support 20% Non-Fee Earning, without eroding Profit. From the example above, we can see that Transom & Mullion has only a 3% Capacity for Non-Fee Earning Projects =SUM(1205/38750) (Formatted as a Percentage). However, the ability to undertake Non-Fee Earning Projects will grow proportionately with Practice Size. Indeed, in some Large Firms, whole Teams can be employed on Non-Fee Earning Work. BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect Some might ask ‘Why do you work Uncompensated?’ It is a ‘Good Question!’ – As a Plumber or Garage Mechanic certainly would NOT! However, Architects often have to deal with Clients who have ‘Problem Property’ that is NOT Performing, and could well be ‘Damned’ by Local Planning Policy. Consequently, ‘Discussions’ may have to take place with Statutory Authorities, and Feasibility Studies undertaken, before any Formal Design takes place. In simple terms, Architects frequently have to ‘Engineer their own Work!’ This is no different to Lawyers, who might work for long periods ‘Pro-Bono’ having ‘Judgement’ and a Subsequent Fee in sight. However, there is ‘Risk’ to be carried – Hence, the ‘Limiting Percentages’ above! – Not all Projects are ‘Winners!’ By adding further Rows to the table above, we can consider the effect of ‘New Projects.’ Transom & Mullion have two ‘Pipeline Projects’ due to be Commissioned in November 2016. The Fees (Below) of £6,500 and £8,275 represent ‘Advance Fees.’ A detailed assessment of ‘Cash Flow’ will have been prepared for each Project as part of the ‘Fee Bid.’ However, the ‘Big Picture’ of Cash Flow needs to be undertaken for the Financial Accounts.
PIPELINE PROJECTS 01-11-16 01-11-16
30-11-16 P5083: Newton & Ridley 31-12-16 P5084: Gordon Ramsay House
£ £
6,500.00 8,275.00
£ £
-
£ £
6,500.00 8,275.00
£
14,775.00
£
-
£
14,775.00
CASH PAYMENTS Not all Payments will be made by Cheque, or through the Bank. There will still be a need for ‘Cash!’ Here, a Cheque (Payable to CASH) will be used to provide a ‘Cash Float’ to the Cash Account or ‘Petty Cash Tin.’ It will show on the Monthly Accounts as a Transfer. The ‘Cash’ will then be used for a variety of Minor Payments – Stationery, Staff Expenses, etc. The Cash Account will itemise each Payment in Detail. At Month End, the Cash Account is Closed and Balanced. Any Surplus is effectively returned to the Main Account, and the cycle begins again, for the following month. This also creates an Automatic Level of Audit – The Cash Account has to ‘Balance’ before Reconciliation.
TRANSOM & MULLION DATE 1 2 3 4 5 6
01-10-16 02-10-16 07-10-16 09-10-16 15-10-16 31-10-16
BK3-INS.DOCX
CASH ACCOUNT DESCRIPTION
CREDIT
CASH RECEIVED Stationery (Staples) Expenses to Gus Pugin Expenses to Art Transom Stationery (Staples) Window Cleaner
£
DEBIT
500.00
£
500.00
TOTAL CREDITS:
£
500.00
TOTAL DEBITS:
£
163.50
BALANCE:
£
336.50
£ £ £ £ £
25.65 16.50 43.50 52.85 25.00
£
163.50
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Bookkeeping & Accounts for the Small Practice Architect
DOUBLE BOOKING As can be seen above, there are instances where ‘Financial Events’ need to be recorded both in the Financial Accounts AND the Management Accounts. Any Accounting System should have ‘Procedures’ in order to prevent things from ‘Falling through the Cracks!’ – Avoiding a situation where Project Expenses can either be Booked TWICE, or NOT at all! This can be achieved with a simple ‘Handwritten Docket System’ which follows each ‘Piece of Information.’ (Bill/Invoice) As we saw (Above) the Printing Bill to Transom & Mullion has not yet been received – Yet, Cost has been incurred (Although not Billed). The Procedures at Transom & Mullion should record ‘Printing’ WHEN it happens! Often, this can be forgotten in the rush to make an Important Submission. Yet, in this instance it would have been £225.00 that would have been forfeited against a marginal level of Profit, if it were missed. Indeed ‘Printing’ could become another Source of Income. In addition to the Printer’s Retail Costs, there will be further costs incurred. Document Control, Folding & Binding, Signing & Stamping, Collection and Delivery etc. By adding a ‘Mark-Up Percentage’ the Cost of Support Functions can at least ‘Cover its Cost.’ Tariffs of Charges will then be included within the Schedule of the Fee Agreement with the Client. Time spent in preparing Simple Templates, will save both Time and Money in the future. Some forms will be completed on the Computer such as Correspondence, and Fee Accounts, etc. Others can be filled-out by hand. The Print Docket below can be filled by hand, and ‘Posted’ immediately to the Job Cost Sheet.
PRINT DOCKET JOB: 1225 PROJECT: FAIRCLOUGH & BOOTH NUMBER ORIGINALS
SIZE
10 65 70
A1 A3 A4
DESCRIPTION
Laser Prints Laser Prints Photocopies
DATE: 15 OCT 2016 REQUESTED: ART NUMBER COPIES 10 10 10
ITEM COST £ £ £
EXTENSION
1.25 0.10 0.05
£ £ £
125.00 65.00 35.00
£
225.00
TOP TIP Before the popularity of Internet Communications, Hotels and Serviced Accommodation Landlords made Substantial and Discrete Profits from Telephone Calls. Outgoing Calls from Hotel Guests and Tenants would be routed via a Management Computer. This recorded Telephone Numbers Dialled and Call Duration. Systems were ‘Uploaded’ with ‘Extortionate Tariffs,’ and Bills produced automatically. Frequently, Architects are accused of ‘Giving Money Away!’ – To an extent, that is true, as we often forget ‘In the Heat of the Moment’ to Log Incidental Printing. In my own case our Document Controller is responsible for all Print Production and Billing. We have a ‘Retired and Refurbished PC’ which runs Freeware EPOS Software. The System has been loaded with a Database of Products and Tariffs. As Documents are Issued, a ‘Bill’ is produced. This then passes to the Practice Manager, for inclusion on the Client Fee Account.
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Bookkeeping & Accounts for the Small Practice Architect
VALUE ADDED TAX (VAT) Let us now add a further ‘Degree of Difficulty!’ – Value Added Tax! (Which is not for the Faint of Heart!) Indeed, it should be a step made after much thought and consideration. Once registered for VAT the Business becomes an ‘Unpaid Government Tax Collector!’ Yet, for the Small Practice, there are always questions with regard to ‘Credibility’ – Some Larger Clients, will not entertain Non-VAT Registered Architects! However, there can be distinct advantages in Voluntary Registration, especially when dealing with Overseas Clients, as we shall see below. Most Territories around the world operate in a similar manner (VAT is also known as Sales Tax or GST). The only differences being the Goods and Services that incur VAT and the Rates Charged. There are also ‘Income Thresholds’ that might require VAT Registration almost by ‘Default.’ Currently, the UK Threshold is £83,000 (US$ 63,846) The Philippines is PHP 1,919,500 (US$ 42,655). The UAE is in the process of initiating Income Tax, Corporation Tax and VAT by 2018 VAT is ‘Charged’ by the Business on its Goods and Services at 20% (UK) and 12% (Philippines). This is known as ‘OUTPUT Tax.’ The intention being that it is ‘Collected’ by the Business when its Invoices or Fee Accounts are Paid by Clients. The VAT is then ‘Returned’ to the Government, at set times (Monthly or Quarterly). However, any VAT incurred by the Business (INPUT Tax), can be ‘Offset.’ This would include VAT on Printing from a Printing Company etc., as above. VAT MUST be Paid when due! This can effectively ‘Destroy’ a Business where a ‘Substantial Invoice’ remains Unpaid! – The VAT is still due at the end of the Monthly or Quarterly Accounting Period! The UK has legislation limiting Financial Settlement of Commercial Invoices to 1 Month. However, 60 Days, 90 Days, ‘Paid when Paid,’ and Multiple Post-Dated Cheques are still the norm Internationally. Here ‘Cash Based Schemes’ operate requiring that VAT is only due, when an Invoice has been paid, and Cleared Funds Received. Again, the Thresholds for Cash Based VAT Schemes vary tremendously, and will require extensive research! In addition to ‘Standard Rates’ there are also VAT Exempt Items, and Zero Rated VAT. Let us take the case of Transom & Mullion in the UK ‘Outsourcing’ the Structural Engineering of a Project to Martinez & Partners in Manila (Philippines). In terms of Philippines Tax Law, the work will be ‘Zero Rated.’ Although no VAT will be charged, it must show as ‘Zero Rated’ on the Martinez Invoices to Transom & Mullion. In order for this to happen, Martinez will need to obtain ‘Approval’ from the Bureau of Internal Revenue (BIR) in Manila. He will need to have an ‘Original, Signed and Notarised Purchase Order’ from Transom & Mullion. Should he fail to obtain approval he will be liable for the 12% VAT on the Value of Invoices PLUS Penalties! Whilst many such Commissions are ‘Under Contract’ a Purchase Order is still required. In effect this becomes a ‘Faux Document’ as the Contract or Fee Agreement will override it. This is very similar to the UK Process regarding Architects’ Certificates. At certain points during the Construction Process (Usually Monthly), the Architect carries out a ‘Valuation’ of Work Executed by the Contractor. He then issues a ‘Payment Certificate’ to the Client. This is in effect an ‘Order’ for the Client to Pay the Contractor for work completed, and is a requirement of the Building Contract. However, the Contractor still has to issue a VAT Invoice to the Client in order to obtain Payment. VAT Rules are indeed ‘Complex’ in terms of the Construction Industry; as different principles operate for New Build, Refurbishment and Self-Build. International Treaties exist for VAT and should be monitored closely. Although the Rules and Procedures vary greatly, it should be seen that Martinez & Partners instantly achieve a 20% Cost Advantage over Transom & Mullion using a UK Company for the Structural Engineering. Although this is NOT ‘Direct Profit’ or a ‘Cost Reduction’ it can have the effect of ‘Easing’ Cash Flow.
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Bookkeeping & Accounts for the Small Practice Architect VAT is a complex area of Tax Law. Although much Precedent exists, there are also many ‘Local Interpretations.’ It is recommended that all and any dealings with the VAT Authorities are directed to the Accountant. This is especially so with VAT Inspections (Philippines). Such ‘Visits’ should be scheduled well in advance, as the meeting will involve the Business Owners, Bookkeeper, and Accountant. Accounting for VAT is relatively simple. For the Small Practice, Credits and Debits to the ‘Books of Account’ will be INCLUSIVE OF VAT! However, at some point it will need to be separated in order to make the VAT Return. Calculating the VAT to add to an Invoice is shown below, and uses Basic Excel Formulas. COST
VAT
VAT CHARGED
TOTAL
OF SERVICES
RATE
(OUTPUT TAX)
INC VAT
£
1,000.00
20.00%
£
200.00 £
1,200.00
VATCHARGED =SUM(COSTOFSERVICES*VATRATE) TOTALINCVAT =SUM(COSTOFSERVICES+VATCHARGED) However, what happens when you only have the TOTAL (Inclusive of VAT) and the Rate of VAT to work with? Firstly, DIVIDE the VAT Rate by 100 (20.00% Becomes 0.2) Then ADD 1 (Giving 1.2) Now DIVIDE The Total by 1.2 (Giving 1,000) Finally SUBTRACT 1000 From 1200 to achieve the VAT Paid (200) VATCHARGED =SUM(TOTALINCVAT/(1+VATRATE)) COSTOFGOODS =SUM(TOTALINCVAT-VATCHARGED)
KEEPING TRACK It should now be obvious that ‘Information Sources’ (Bills, Invoices and Fee Accounts) require adequate ‘Tracking.’ Here a simple Duplicate Book can be used. When a Bill (Debt) arrives it should be recorded in the Duplicate Book AND the Books of Account. In the case of Incoming Fee Payments, ‘Double Booking’ will be required to the Financial Accounts and the Management Accounts. The Retained Copy in the Duplicate Book will act as an ‘Aide Memoire’ in order to determine whether all procedures have been followed.
TRANSACTION DOCKET Type: Against: TO: Address: FROM: Address: DETAILS
BK3-INS.DOCX
Date: Job Number: Account: Entered: Instructions:
AMOUNT
VAT
TOTAL
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Bookkeeping & Accounts for the Small Practice Architect Simple Manual Forms, such as above, can be used to Record Financial Events, and to ensure the Correct Routing of all Transactions (Income and Expenditure). There is also need for a Bookkeeping Schedule reflecting the administration of the Financial Accounts and Management Accounts, Daily, Weekly, Monthly, Quarterly and Annually. In addition, it is recommended that a Practice Calendar be used. This should list each Working Day, Weekend, Public Holidays, and Planned/Mandatory Financial Events. The Chart can then be extended in order to include Planned Annual Leave, together with any significant Project Activity.
TRANSOM & MULLION
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
52 52 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3
Working Day
01 January 2016 02 January 2016 03 January 2016 04 January 2016 05 January 2016 06 January 2016 07 January 2016 08 January 2016 09 January 2016 10 January 2016 11 January 2016 12 January 2016 13 January 2016 14 January 2016 15 January 2016 16 January 2016 17 January 2016
Week Number
Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday
DATE
Calendar Day
WEEKDAY
ANNUAL CALENDAR 2016
EVENT
New Year’s Day (Regular Holiday) Additional Special Non-Working Day Weekend 1 DECEMBER 2015 VAT RETURN 2 3 4 5 Weekend Weekend 6 7 8 9 10 SALARIES Weekend Weekend
In our own instance, the Practice Calendar is on permanent display in several locations around the Studio. In certain instances it will also form part of a Fee Agreement – Merely to advise Clients with regard to NonWorking Days. This is particularly relevant in The Philippines, with regard to Christmas and Easter, where we effectively ‘Close’ for a week – Set Days are taken as Annual Leave around Public Holidays. The same applies to the Middle East, where ‘Reduced Working Hours’ apply during Ramadan for ALL Staff. However, this is usually one of the ‘Busiest Periods’ of the Year!
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Bookkeeping & Accounts for the Small Practice Architect
A MINEFIELD OF ACCOUNTS PACKAGES It’s a Jungle Out There! Above we determined several basic principles with regard to Bookkeeping, Accounting and the manner in which we record Financial Information, aligned to the Small Practitioner. Much here, depends upon your Primary Needs. For the Small Practitioner, the Number of Transactions will be small, and Events will be recorded as if they were Cash. Bookkeeping will therefore, be relatively straightforward. This can be carried out as a Support Function of the Practice, with someone delegated to the task, or an Independent Part-Time Bookkeeper can be employed. Note here that there could be a greater commitment for Data Entry on the Management Accounts. In order that Fee Earners, remain as Fee Earners it may be prudent to consider Part-Time Support. There also needs to be an assessment made as to levels of Confidentiality. At Month End, Quarterly, and Year End, Income Statements will be required. Dependent upon Territory, these will form part of Statutory Submissions for Corporation Tax and VAT. These will be in the form of a Profit & Loss Account and Balance Sheet. Best advice would be to reserve these as a function of the Accountant, who will act effectively as an Agent or Proxy. However, it is the Business Owner who will be liable for any Errors and Penalty Charges! Very simply, the Accountant will take the Books of Account, and ‘Present’ them for Statutory Submissions. This could require a Level of Adjustment, especially at Year-End. There are distinct benefits to having a ‘Cold Handover’ to the Accountant from In-House Staff, as it provides a level of Checking and Audit. This then leads us to ask “Do we require Bookkeeping Software or Accounting Software?” Purchase Costs can be considerable, and in many instances there will be a need for someone to be Trained, in order to use it. For the Small Practice, this can be a Prohibitive Cost. Alternatively, Software can also be used over the Internet (Software as a Service), for a Monthly Fee. Whatever the choice, you should be aware that it will NOT be Perfect! – Most Software requires ‘Workarounds’ to achieve Full Functionality! – Architects are Unique! Much Software is also ‘Modular’ in terms of Purchase (Payables, Receivables, Payroll, etc.) However, some quite basic functions cross several modules – Requiring more Software to be bought! This is purely a ‘Marketing Ploy’ on the part of the Software House! – Again, thorough Research and ‘Road Testing’ will be required. Other ‘Basics’ such as Invoice Content, Date Formats and Currency Handling should also be on the ‘Shopping List!’ Payroll for the Small Practitioner, can place further demands on Time and Resources. PAYE is Complex to Calculate, and places further financial burdens on the Practice. For instance, in the UK Employers effectively pay a Tax on each member of staff, through National Insurance (13.8%). A Basic Pension might also be required, which again will require Employer Contributions. Statutory Sick and Maternity Pay also has to be paid by the Employer, and then Reclaimed. PAYE Withholding (Tax and National Insurance) is also onerous upon the Employer. Just like VAT it MUST be paid! The alternative is for the Small Practice to use a network of Self-Employed or Contract Staff as and when required. Although Rates per Hour will be marginally higher than Employed Staff, there is the benefit of being able to ‘Stop and Start’ as the Workload Permits, with no long term commitments with regard to Payroll. As an alternative to Mainstream Software, most Practices will have at least one PC installed with MS Office. If not, WPS Office and Apache Open Office are available free from the Internet, and work in the same way as MS Office –The files are also ‘Cross Platform.’ Most of us know the ‘Basics’ of MS Excel, can Enter Data, and Calculate Totals. In many instances Spreadsheets Templates for Support Documents can be downloaded from the Internet, and adapted to suit.
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Bookkeeping & Accounts for the Small Practice Architect However, keep in mind that ‘Books of Account’ can be kept Manually, and there are several distinct advantages. Firstly, for the Non-Bookkeeper on a ‘Learning Curve’ the approach is quite ‘Visual!’ – We can see where every Entry lives! – Data entered into Computerised Accounting Packages, has a tendency to ‘Disappear into the Ether,’ and re-emerge in the most unlikely places! The ‘Books’ are also ‘Portable’ and can be handed-over for Checking. Any Errors or Omissions should then be apparent immediately. We also determined that Bookkeeping should be ‘Simple’ and NOT ‘Rocket Science!’ – Working from a Simple Cashbook Spreadsheet can easily track Income and Expenditure, which will be reconciled against a Bank Statement, at the end of each Month. Throughout, we have also erred towards ‘Cash Accounting’ and ‘Single Entry’ for Financial Accounts, Management Accounts and VAT. This allows ‘Transparency’ between the Financial Accounts and Management Accounts, related to Projects. Here it is worthwhile mentioning that apart from ‘Cash Basis’ there is also ‘Accrual Basis!’ For the Small Practitioner, it would be wise NOT to consider ‘Accrual Basis’ as an option, as will become clear! ‘Accounting Gymnastics’ under the Accrual Basis would treat an Invoice as having ‘Full Value’ as soon as it is produced! This can lead ultimately to a situation where the Accountant reports ‘A Fantastic Month!’ – Yet the ATM says ‘Refer to Bank!’ Accrual Basis is more aligned to Large Organisations who have distinct Supply, Manufacture and Distribution Chains – They could also be offering a level of ‘Consumer Credit.’ More importantly the Large Manufacturer or Supplier, will be attempting to Receive Income (Over the Counter), before he has to pay for the Product!
Homespun MS Excel or MS Access? My own preference is for Excel Spreadsheets, as they are truely ‘What you See is What you Get’ products. Just like AutoCAD in its ‘Native Guise,’ Spreadsheets can be regarded as a ‘Foundation Stone!’ They can also be operated on Two Distinct Levels. Level One, will relate to Design, Function and Calculations, and will be in the domain of the Spreadsheet Author. Level Two can be defined as the ‘User Level.’ The Author will have ‘Protected’ the Worksheets leaving only Data Entry Tasks to be permitted. The Table (Below) show Protected Cells in Grey, and Data Entry in Blue.
TRANSOM & MULLION ACCOUNTS DATE 1 2 3 4 5 6
01-10-16 05-10-16 07-10-16 09-10-16 15-10-16 31-10-16
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OCTOBER 2016
DESCRIPTION
CREDIT
Rent Electricity Telephone & Internet Fees Received: Fairclough & Booth Fees Paid: Structural Engineer Fees Paid: Gus Pugin
£
DEBIT £ £ £
500.00 200.00 125.00
£ £
850.00 1,850.00
£
3,525.00
7,650.00
TOTAL:
£
7,650.00
TOTAL CREDITS: TOTAL DEBITS:
£ £
7,650.00 3,525.00
BALANCE:
£
4,125.00
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Bookkeeping & Accounts for the Small Practice Architect On the other hand, MS Access is a Powerful Building Block – Yet is more in the domain of a Specialist. Unlike Excel, a large degree of ‘Planning’ is required when working in MS Access. Information is both Collected and Stored in a number of ‘Data Tables,’ before being ‘Reported.’ Therefore, the ‘Structure’ of the Information needs to be established at a very early stage. Unless this is done, problems will occur later – Reports can have vital information missing.
The example (Above) is a Freeware Time and Billing Application, using MS Access. Data Entry on the Pink Form, requires that ‘Contact IDs’ have already been defined in another Data Table. The same is true of the ‘Category Field.’ A ‘Rate’ is then returned in the ‘Rate Field,’ and a ‘Company’ is displayed under the ‘Contact ID Field.’ Any attempt to ‘Shortcut the System’ will not be Validated, and the Entry will be ‘Void.’ Although it is possible to Edit and Add Tables, any changes must recognise the original Data Structure. Very simply, this ensures that Data is ‘Stored’ in one area, and is then ‘Revealed’ in another, together with other ‘Related Information.’ Poor Editing will cause MS Access to ‘Stall’ and could possibly require inordinately long periods of “Recompiling Database . . . . “
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Bookkeeping & Accounts for the Small Practice Architect
HR-BUILD: BUILDING AN HOURLY RATE Again, the Spreadsheet can be of great benefit, if only to bring everything together. However, a level of research and information gathering will be required beforehand. The first section of the Rate Build-Up (Below) investigates some basic assumptions with regard to Working Days, Hours and Time. We know that there are 365 Days in a Year, and 52 Weekends. However, we also have to take account of Public Holidays. In some Territories these can be substantial, and will vary considerably from one year to the next due to where Public Holidays align to Weekends. Certain Historical Information can also be used in terms of Annual Leave, and Incapacity. This will be gathered from Time Sheet and HR Records. Other absences for Calamity Leave (Philippines Typhoons) can be gathered from Historical Data (Official Gazette). The same applies to Continuing Professional Development (CPD) and Training, etc. Historical Analysis of Rhonnie’s Time Sheets for a given Year, will also highlight his Personal Pattern of Work. His ‘Contracted Hours’ are 7.5 Daily or 37.5 Weekly. However, he frequently exceeds this with a maximum of 45 Hours. Dependent upon the frequency of the excess, a judgement will be made as to whether to accept either the Median, Average, or other ‘Adjusted Value.’ Alternatively, in order to provide a level of ‘Insurance’ 37.5 Weekly Hours can remain unadjusted. The Excess Hours above Contacted Hours, is known as ‘Y Time’ and in Rhonnie’s case it is 10.77% (Calculated Annually). Effectively, this is time that Rhonnie ‘Donates.’ His Time Sheet Profile will also reveal his ‘Productive Time’ – The number of Hours ‘Booked-Back’ to Live Projects compared with Attendance. Rhonnie’s ‘Utilisation Rate’ is 82.50% (Drawn from Historic Time Sheet Data). However, for more Senior Staff, the rate will be much less, given a higher degree of Management Functions. In the case of Principals, Utilisation Rates can be as low as 30% However and this is not to say, that ‘Principals are Lead-Swingers!’ A large amount of Principals’ Time will be spent in ‘Generating Work!’ Much time will be spent outside of the Studio, with Clients, and there will be other costs incurred in terms of Travel and Meetings, etc. Here, we can regard much of the Principals’ Costs as ‘Opportunity Costs!’ As Principals still need to receive a ‘Salary’ or make ‘Drawings’ from the Business, ‘Opportunity Costs’ need to be distributed across ALL Fee Earners. The Second Section of the Build-Up relates to Direct and Indirect Costs. These include Salary, Bonuses and Commissions, together will Employer Payroll Costs. Costs are also added for Incapacity Leave, as this is Paid by the Employer, and is also reflected as Non-Fee Earning Time – A ‘Double-Edged Sword!’ In some Territories, ‘Some’ Incapacity Leave is Reimbursed by the Government – Yet, will not be instant! Philippines Employment Law also provides for a ‘Month 13 Bonus’ in December of each year. In addition, the ‘Balance’ of any Statutory Annual Leave (5 Days) is also convertible to Cash. Many Employers limit Annual Leave and Sickness to 5 Days (Statutory Annual Minimum). However, our Policy is for 20 Days Minimum, with the Statutory Leave being ‘Consumed First.’ Accommodation Costs are almost Unique to The Philippines. Due to Manila Traffic, most staff are ‘Resident’ during the week, and return home only at Weekends. Accommodation, is either ‘Included’ in terms of a Salary Package, or it is charged at ‘Cost Price’ against Gross Salary. Therefore, it is either Included or Excluded from the Cost Calculation. The ‘Cost of Accommodation’ is monitored from the Financial Accounts, and defined as an Element of the Practice Overhead. The Final Section of the Build-Up deals with ‘Overheads.’ Here, there will be ‘Direct Overheads’ attributable to Rent, Utilities, etc. However, there will be ‘Indirect Overheads’ such as Support Staff, together with an element of ‘Opportunity Costs’ related to Principals. The Problem here is that it becomes difficult to apportion the ‘Total Overhead’ on an Equitable Basis, to each Fee Earner. This can make the Bid Process difficult, where disproportionately high rates occur. The alternative is to use a Multiplier of Gross Salary. BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect However, rather than relying upon a ‘Raw Multiplier,’ the Practice Overheads (Direct and Indirect) can be defined relatively quickly. These are then ‘Apportioned’ on the basis of a Ratio between the Fee Earner’s Gross Salary, against the Total Gross Salary Bill for Fee Earners. The Total Overhead is PHP 3,638,845.00 and Rhonnie’s Basic Gross Salary represents 8.80% of the Total Salaries for Fee Earners. Therefore, Rhonnie will ‘Carry’ that as an ‘Overhead Element’ in his Annual Rate BuildUp. By Dividing Rhonnie’s Total Costs, by the Annual Hours, the resulting Basic Rate can be determined. In this way, the Low Utilisation Rates of Principals can be distributed across the Studio. If this were not done, the Rates for Principals would be Prohibitive and Uncompetitive. Here again, there has to be a ‘Balance’ requiring a level of ‘Gut Feeling.’ However, not all of a Principal’s Non-Fee Earning Time can be accounted for in this way. Therefore, it is common for a Principal’s ‘Management Time’ to be taken out of the Equation, as this will commonly be carried out in his own time. Remember that here, there is no ‘Profit Element!’ This is added incrementally, from 5% to 25% in order to achieve a ‘Rate Range.’ Rhonnie’s rate can then vary during the course of a Project, and it will also provide the basis for a Fee Bid. Profit Margins will be set according to Client, Project, Programme, and Degree of Difficulty, together with a variety of other criteria. Dependent upon the Practice, Territory and Fee Agreement different rules will operate in terms of Printing, Travel, Expenses and Disbursements – Which can be considerable on certain projects. In my own case, we Charge Separately for Printing and Travel, according to Tariffs contained within the Schedule of Fees. These rates reflect the ‘True Value’ of the Expense, rather than applying a Nominal Percentage to the Fee. Where Fees are based on a Lump Sum, an amount will be included (At Tariff) for Printing and Travel, etc. However, this will be ‘Capped’ with a ‘Not to Exceed Figure,’ related to the Schedule of Deliverables – After which, Costs will accrue at Tariff Rates. In all instances, Billing for Additional Costs is removed from Contracted Works, and invoiced separately.
Common Rates In some US Firms a ‘Common Rate’ is used for All Staff, irrespective of Grade or Seniority. Here, Juniors are Charged at the same rate as Seniors! This reflects the ‘Nature of the Practice’ and also the Clients it has. Undoubtedly, the Firm will be a Larger Practice, where the effect of a Common Rate will become ‘Balanced’ over a Range of Projects and the Staff Contingent. A ‘Balancing Duration’ also has to be considered. This method is NOT considered appropriate for the Smaller Practice!
Gross Salary Multipliers Reference was made above to ‘Salary Multipliers.’ Here, this practice is best suited to the Larger Organisation. Very simply, a ‘Multiplier’ is applied to a Fee Earner’s Gross Salary, Divided by Potential Annual Productive Hours. The Multiplier, will allow for Salary, Overheads and Profit. Generally, the Multiplier will be in the range of 2.50 to 3.00 The Lower Figure is applicable to Larger Organisations, being able to operate more effectively, due to ‘Economy of Scale.’ However, (This is a Big BUT!) some ‘Sledgehammer’ Architectural Accounts Packages can only operate using an ‘Inflexible Single Multiplier!’ Furthermore, there are also ‘Territorial Factors’ to be accounted for. In ‘Low Cost Centre Locations,’ such as The Philippines, Multipliers can be well in excess of 3.0 given an ‘Imbalance’ between Gross Salary and Overheads. In such locations, Gross Salaries are relatively low, yet Overheads can be the equivalent of more expensive locations.
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Bookkeeping & Accounts for the Small Practice Architect
RHONNIE SAMPANG (MANILA STUDIO) GRADE: PT-03 SENIOR ARCHITECTURAL TECHNICIAN ASSUMPTIONS Maximum Days Per Annum
365.00
100.00%
Maximum Balanced Calendar Days Per Month: Maximum Working Days Per Month: Weekends: Paid Public Holidays: Paid Annual Leave: Assumed Paid Incapacity Leave: Non-Working Days (Calamity): CPD/White Paper/Study:
30.00 20.00 104.00 12.00 20.00 5.00 3.00 5.00
100.00% 66.67% 28.49% 3.29% 5.48% 1.37% 0.82% 1.37%
Total Non-Working Days:
149.00
40.82%
Net Working Days:
216.00
59.18%
Min Hours Per Week: Median Hours Per Week: Max Hours Per Week:
37.50 41.25 45.00
Potential Fee Earning Hours Per Annum:
1,782.00
Employee's Y TIME:
192.00
Total Fee Earning Staff:
11.00
Adjusted Fee Earning Hours Per Annum: Adjusted Hours Including Y Time:
1,470.15 1,662.15
Official Gazette Drawn Historically Drawn Historically Official Gazette Drawn Historically
Contracted Hours Drawn Historically 100.00% 10.77% Drawn Historically
82.50% Lower Limit Upper Limit
DIRECT SALARY COSTS
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Gross Monthly Salary: Employer SSS Contribution: Employer HDMF Contribution: Employer PhilHealth Contribution:
PHP PHP PHP PHP
27,500.00 500.00 750.00 550.00
Net Monthly Cost to Employer:
PHP
29,300.00
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Bookkeeping & Accounts for the Small Practice Architect
RHONNIE SAMPANG (MANILA STUDIO) GRADE: PT-03 SENIOR ARCHITECTURAL TECHNICIAN ADDITIONAL COSTS Thirteenth Month: Paid Annual Leave: Paid Incapacity Leave: Discretionary Bonus: Potential Regrade/Salary Increment:
PHP PHP PHP PHP PHP
29,300.00 29,300.00 7,325.00 2,750.00
Gross Annual Salary to Employee: Net Annual Cost to Employer:
PHP PHP
357,500.00 420,275.00
ACCOMMODATION COSTS Annual Days of Occupancy:
216.00
Per Diem Accommodation (Bahay Tuko): Per Diem Meals/Meal Allowances (Bahay Tuko):
200.00 150.00
Cost Per Annum:
PHP
75,600.00
Cost Per Month:
PHP
6,300.00
Total Branch Overhead: Aggregated Annual Salaries of NFE Staff:
PHP PHP
2,918,845.00 720,000.00
TOTAL:
PHP
3,638,845.00
TOTAL Basic Fee Earners' Salary Bill: Employee's Proportion of Fee Earners:
PHP
312,500.00 8.80%
Employee's Direct Salary Costs: Employee's Accommodation Costs: Employee's Overhead Carriage:
PHP PHP PHP
420,275.00 75,600.00 320,218.36
TOTAL:
PHP
816,093.36
Calculated Charge Back Rate (BT-00) Rounded Rate for Quotations: BT-00 Fee Earning Potential PA:
PHP PHP PHP
555.11 560.00 823,284.00
Mandatory Bonus 20 Working Days Provision Applied to 6 Months
OVERHEADS
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Bookkeeping & Accounts for the Small Practice Architect
ROUNDED LOCAL PESO RATE (BOOK BACK) BASE TARIFF: 5.00% 10.00% 12.50% 15.00% 17.50%
PHP PHP PHP PHP PHP PHP
560.00 590.00 620.00 630.00 650.00 660.00
It should go without saying that the same calculation will be prepared for each Fee Earner. This might appear a ‘Tedious Exercise’ yet it is essential that the Rate Build-Ups are reviewed several times each year. The table (Below) shows how the analysis (Above) can generate an Equitable Grading System. Whilst there is ‘Diversity’ within the Salary Ranges to accommodate ‘Increments and Skillsets,’ there are also ‘Overlaps’ from one grade to the next. GRADES
SALARY RANGE MINIMUM MAXIMUM
PRINCIPAL OFFICERS PO-01 Principal PO-02 Principal
PHP PHP
80,000.00 60,000.00
PHP PHP
120,000.00 80,000.00
PROFESSIONAL & TECHNICAL PT-04 Senior Architect PT-03 Architect PT-02 Site Superintendent PT-02 Senior Technician PT-01 Technician
PHP PHP PHP PHP PHP
30,000.00 25,000.00 25,000.00 25,000.00 20,000.00
PHP PHP PHP PHP PHP
45,000.00 35,000.00 45,000.00 45,000.00 30,000.00
ADMINISTRATIVE & PROFESSIONAL AP-01 Practice Manager PHP AP-02 Document Controller PHP
25,000.00 15,000.00
PHP PHP
35,000.00 20,000.00
ADMINISTRATIVE & SUPPORT AS-03 Admin Support AS-02 Driver AS-02 Intern AS-01 Housekeeping
12,500.00 10,000.00 10,000.00 8,000.00
PHP PHP PHP PHP
16,000.00 12,500.00 12,500.00 10,000.00
PHP PHP PHP PHP
By extending the Table (Above) a range of Rate Tariffs can be added, which will be used for Fee Bidding. In addition, assumptions can be made where Support Staff can become ‘Partial Fee Earners.’ This occurs where Substantial Project Variations will incur Fees, that are levied in addition to Contracted Works. Commonly, these include the Practice Manager and Document Controller. Here, the argument is that (Although a True Overhead, or Non-Fee Earner) they are being removed from other Scheduled Roles within the Studio, and will frequently require an element of Overtime or the introduction of Part-Time Support Staff, in order to be compensated. By the same token, ‘Account Management Fees’ are levied in the case of ‘Outstanding Accounts,’ and are also Invoiced separately. Outstanding and Delinquent Accounts can cause large amounts of time to be spent in terms of Monitoring and Recovery. Therefore, a Fixed Tariff is declared in the Schedule of Fees, and is applied Weekly. BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect
BOOKKEEP4: FINANCIAL ACCOUNTS GENERALLY This Worksheet is Checked and Updated on a Daily Basis. It records all ‘Headline Transactions,’ and will follow closely the operation of the Current Account. Transfers are made (Gross Terms) both TO and FROM the Cash Journal, Salary Account and Fixed Deposits. These Accounts (in turn) record each Subsequent (Minor) Transaction. Balances are ‘Returned Gross’ in the same way at Month End, and the Cycle begins again with a New Month. The Sheet Format is A3 Landscape. The Worksheet has a Functional Life of One Month. However, a ‘Rolling Copy’ is maintained to assess Annual Performance. After the Month End Procedures for Reconciliation, VAT and Corporation Tax, files are Printed (PDF and Hard Copy). Our Accountant then prepares any Reconciliations, VAT Returns and Corporation Tax Returns. Month End Copies are made (Statutory Submissions), and a ‘Continuous Journal’ operates for our own purposes. Record Copies (‘Signed as Accepted’ by BIR) are also saved as ‘Hard Copy Files.’ It should be recognised that processes in The Philippines are both Bureaucratic and Inflexible!
DATES I am quite pedantic when using Date and Time Formats. Generally, The Philippines uses ‘Americanised Dates’ (MM/DD/YY). However, many Government Documents including LTO (Land Transportation Office) for Driving Licences follow an International Format (DD/MM/YY). This not only creates confusion, but it often becomes a ‘Delaying Tactic’ where a Date will be ‘Queried Unnecessarily!’ For the avoidance of doubt, our Policy is to use a ‘Verbose Format’ DD/MMM/YYYY –Sometimes including a DDDD Field in the ‘Custom Format’ merely for Clarity. Time Formats always follow Manila Time (GMT+8:00) and use the 24 Hour Clock. Times are always entered as HH:MM and NOT as Decimal Hours. It is worthwhile ‘Reading-Up’ on Date and Time Formats in order that they report ‘Correctly!’ – This is especially so, where a Time or Date Duration is required and =SUM has been used in order to calculate intervals. (Research the use of [H]:MM rather than HH:MM) Many Mainstream Accounting Applications ‘Fail’ at this point! – The same applies to Dates! Some of the most popular applications can only display ‘Americanised Dates!’ TO BE DISPLAYED
CUSTOM FORMAT LINE
DATA ENTRY
01 Jan 2016 01 January 2016 Friday 01 January 2016
DD MMM YYYY DD MMMM YYYY DDDD DD MMMM YYYY
1/1/16 1/1/16 1/1/16
07:35 (24 Hour Clock) 19:35 (24 Hour Clock)
HH:MM HH:MM
07:35 19:35
7:35 AM 7:35 PM
Use Standard Excel Format Use Standard Excel Format
07:35 19:35
CURRENCIES & ACCOUNTING CONVENTIONS Whilst Excel has a wide variety of Currency and Accounting Formats, there are times when ‘Local Convention’ will predominate. We work in Four Currencies – UAE Dirhams, Philippines Pesos, British Pounds, and US Dollars. Accounting Convention in the UAE disregards the derivative ‘Fils’ (100 Fils = 1 Dirham). Instead of using Dhs 1,275.00 the Notation of Dhs 1,275/- is used. However, in The Philippines, the Centavo (100 Centavos = 1 Peso) MUST be shown, despite its insignificance! (1 Centavo = 0.025 US Cents! And 1 Centavo Coins are NOT Minted!) ‘PHP’ is used as the Currency Symbol or a ‘Struck-Through-P’ ₱ Which only appears to be available in Arial! Still entrenched in Manual Bookkeeping and Typewriters, ALL Statutory Submissions must show Negative Amounts in RED. BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect This can become a ‘Fag’ when having to change the Font Colour manually – However, there are several benefits in using a ‘Custom Cell Format’ in MS Excel that will achieve the Local Convention, and give ‘Red Debits’ together with Custom Currencies! For the Bureau of Internal Revenue (BIR) we have to use US Dollars (Dollar Bank Account) and Philippine Pesos (The Peso is ‘Inextricably Linked’ to the US Dollar!) The ‘Bangko Sentral ng Pilipinas’ (BSP – Central Bank) issues Historical Data on Exchange Rates which are used to Reconcile Transactions with differing Currencies. As with most Accounting Practice this is ‘Cash Based’ – Occurring on ‘The Day’ of the Transaction. Custom Currency Formats are shown below (Cut and Paste the Text into the Custom Format Field) UAE Dirhams (AED) _("Dhs" * #,##0"/-";[Red]_(("Dhs" * #,##0"/-");_("Dhs" * "-"??_);_(@_) CREDIT Dhs
1,275/-
DEBIT (Dhs
1,275/-)
BALANCE Dhs
-
Philippines Pesos (PHP) _("PHP" * #,##0.00;[Red]_(("PHP" * #,##0.00);_("PHP" * "-"??_);_(@_) CREDIT PHP
1,275.00
DEBIT (PHP
1,275.00)
BALANCE PHP
-
British Pounds (GBP) _("£" * #,##0.00";[Red]_(("£" * #,##0.00);_("£" * "-"??_);_(@_) To obtain the £ Sign on a Non UK Keyboard: Hold Down ALT and Type 0163 on the Numeric Key Pad. However, the Pound Sign is available in most Fonts. For Dollar Debits in Red, just type in the $ Sign instead of the £! CREDIT £
1,275.00
DEBIT (£
CREDIT $
1,275.00
1,275.00)
BALANCE £
DEBIT ($
1,275.00)
BALANCE
$
-
FONTS & SHEET SIZES We use Two Typefaces for all Documentation, whether it be Drawings, Signage or a Text Document, in order to achieve ‘Consistency!’ Both Typefaces were chosen in order to save Ink, Toner and Paper, as well as being ‘Readable!’ Some Applications (AutoCAD in Particular) do not ‘Like’ certain Windows Truetype Fonts (Arial in Particular!) I have included the Font Files in order that the Spreadsheets work as intended, and will not require any adjustment.
CELL SETTINGS
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Bookkeeping & Accounts for the Small Practice Architect The Coloured Alternating Lines occur on most of the Spreadsheets. It seemed to be a ‘Good Idea at the Time!’ However, with ‘Filtering’ and ‘Inserting’ they become inconsistent. They do help ‘Clarity’ on the Landscape A3 Sheets (Unfiltered) such as BOOKKEEP4. The Fill Colour can always be removed for Printing, or Underscore Lines added.
COMPLIANT FORMATS Formats for the Accounts, Invoices, and other Documentation will be dictated by Local Convention (As with ‘Red Debits’ Above). However, there are also other Mandatory Requirements. If ‘Missing’ these can in effect invalidate an Invoice. Irrespective of the Software (Bespoke, Spreadsheet or Database), adequate research needs to be carried out in order to determine the ‘Legal Requirements.’ Here it is worthy of noting that many ‘Online SaaS Solutions’ do NOT address this, and can be found sadly lacking! – Some in some quite basic ways. One popular SaaS Programme does not have the ability to enter Company Registration Numbers and Tax/VAT Numbers. It also Numbers each Invoice from 0000001 and does not permit any Override. Date Formats are also fixed as MM/DD/YYYY Invoice Formats to not permit ‘Verbose Entries’ instead relying upon ‘Fixed Line Fields’ displaying DATE/DESCRIPTION/HOURS/RATE/TOTAL
TAB 3: DAY JOURNAL Saturday 17 December 2016 This Date (Top Right) is the ‘Reporting Date’ and uses the =NOW() Function with a DDDD DD MMMM YYYY Custom Format. It can be changed by Clearing =NOW() to produce the ‘Statement’ for Month End. OR just enter the Date in DD/MM/YY Format, and it will appear in Extended Format. FROM: 16 November 2011 TO: 01 December 2011 These dates are generated automatically by applying =MAX and =MIN on the ‘Date Column’ (B14:B26) and use a DD MMMM YYYY Custom Format. ENTRY NUMBER 110001 110002 ‘Entry Number’ is a Serial Number. For the Day Journal, Entries begin from 11#### The Cash Journal uses 12#### By Using the Formula =SUM(A14+1) in Cell A15 and Copy Down subsequent Entries will be Numbered Automatically. A ‘Filter’ has been added to R13 in order to search the Data Entries. Filtered Results return the True Entry Number, rather than Consecutive Numbers after Filtering. DATE
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Bookkeeping & Accounts for the Small Practice Architect The ‘Date’ is the Actual Transaction Date (Money Physically Paid or Money Physically Received) Data Entries are made using DD/MM/YY A Custom Format DD MMM YYYY Clarifies the Date. A ‘Filter’ has been added to R13 in order to search the Data Entries. CREDIT DEBIT CR The Transaction Type is selected from a ‘Drop-Down List’ – Either CR for Receipts or DR for Payments. A ‘Filter’ has been added to R13 in order to search the Data Entries.
RECEIVED FROM PAYABLE TO Scott Wilson The ‘Standard Client Name’ or ‘Standard Company Trading Name’ is Entered (Payment and Receipts). Other ‘Memoranda Entries’ can be added for Adjustments or other Transactions. Standard ‘Name Formats’ are listed on a Laminated Desktop Card. A ‘Filter’ has been added to R13 in order to search the Data Entries, which proves useful for ‘Client Fee Performance.’ LEDGER CLASSIFICATION Internal Adjustment 30001 Fee Income Entries are made from a ‘Drop-Down List.’ The Numbering follows Assets, Liabilities, Equity, Income and Expenses, with all Account Numbers following a 3#### Sequence. This follows the same format as Job Numbers, and Administration Filing within the office. Account Numbers OVERHEAD are a ‘Named Range’ A42:A217 Which is used throughout the Workbook – They are also listed on a Laminated Desktop Card, for Data Entry. A ‘Filter’ has been added to R13 in order to search the Data Entries, which provides easy access to Headline Items such as Fee Income, and Salary Payments, etc. With few Monthly Transactions, Single Entry, and Cash Basis we do not maintain separate accounts for each and every Overhead. The level of filtering on the Worksheet provides the Reporting we require. However, the Account Numbers are used by our Accountant and Month End and Year End, in order to ‘Group’ Expenditure.
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Bookkeeping & Accounts for the Small Practice Architect PAYMENT METHOD
DXB
EFT
Both Entries are made from ‘Drop-Down Lists.’ Column F denotes the Source of the Transaction. We work in The Philippines, UK and UAE. Therefore, MNL LON and DXB are used as a ‘Locator.’ Column G represents the ‘Mode of the Transaction’ Electronic Funds Transfer, Cheque, Bank Giro Credit, or Direct Debit. A ‘Filter’ has been added to R13 in order to search the Data Entries. JOB OVERHEAD CODE 90157 This provides an important ‘Indicator Link’ between the Financial Accounts and Management Accounts. Some Transactions, such as Fee Receipts will be entered against both. Overhead Codes follow a 3#### Format, Live Projects in Manila use a 9#### Sequence, and Manila Non-Fee Earning Projects begin 8#### A Complete List of Project and Overhead Codes is listed on Weekly Timesheets, and also ON THE STUDIO WALL! INVOICE RECEIPT DOCKET 90157-F01 A Fee Account or Invoice (Issued from Manila) will have a 9####-F## Format (Representing the Job Number and Invoice Sequential Number). Payments by Cheque or EFT will be made against a ‘Cheque Requisition’ – This is essentially an ‘Order’ for a Payment to be made, and will be Authorised by the Principals. Duplicate ‘Transaction Dockets’ also accompany each ‘Source of Specific Information.’ INVOICE DATE 13 Oct 2011 All Outbound Fee Accounts or Invoices are ‘Logged and Monitored’ in a Separate File. The Date Entry here acts as an ‘Aide-Memoire’ to Update the Fee Account Records, and also the Management Accounts ‘JobCOST.’ A JobCOST Sheet is made for each Project, and records Time Expended, Costs Incurred, and Fee Payments Received. The Fee Accounts Tab, operates in the same way as ‘Accounts Receivable.’ BK3-INS.DOCX
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Bookkeeping & Accounts for the Small Practice Architect PAYMENT REFERENCE BDO-4665578 Cleared Payments are recorded with a Reference from the Current Account Statement. These will be Cheques and Electronic Transfers (Incoming and Outgoing). Entry here acts as a Reminder, to Update the Current Account Monitoring. RECEIVED
PAID
GROSS
GROSS
(INC VAT)
(INC VAT)
PHP
100,274.00
PHP
-
All Payments and Receipts are recorded ‘Gross’ (Including VAT) Row 28 contains Totals of all Transactions, which is used the ‘Balance’ the Worksheet. The =SUBTOTAL Function is used rather than =SUM in order to reflect the Total of ‘Filtered Items.’ VAT
VAT
VAT
RATE
OUTPUT
INPUT
(VAT CHARGED)
(VAT PAID)
PHP
-
PHP
-
VAT is Recorded and Returned to the Bureau of Infernal Revenue (BIR) on a ‘Cash Basis’ following a Monthly Cycle. The Maximum VAT Rate is 12% and there is also Zero Rated and Exempt Goods and Services. At Month End the Cash Journal is ‘Closed’ with all Balances returned to the Day Journal. The Totals for Input and Output VAT on the Cash Book are then ‘Reconciled’ with the Day Journal to achieve a Net Balance of VAT Liability. This information is then used on the VAT Return. Balances and ‘Float’ are the returned, for the beginning of the following month. ROLLING
COMMENTARY
BALANCE (INC VAT) PHP PHP
1,475,227.00 1,575,501.00
OPENING BALANCE MA! Post to 90157 JOBCOST
A Gross Rolling Balance is maintained, which will mimic the Current Account Statement – Subject to Bank Charges and Uncleared Effects. The Commentary allows a more ‘Verbose Description’ of a Transaction and gives reminders to adjust Management Account Items.
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Bookkeeping & Accounts for the Small Practice Architect
CHECKS AND BALANCES The ‘Rolling Balance’ and R28 Totals provide a Continuous Arithmetic Check. Cell R34 contains the Formula =IF(Q34=Q28,"BALANCE AGREES","ERROR") as a final check – As it ‘ADDS Horizontally’ rather than Vertically with the ‘Rolling Balance.’ Similarly for VAT the Formula =IF(Q36>0,"RECONCILE WITH OFFICIAL RECEIPTS","RECONCILE WITH REBATE") Philippines VAT Practice works upon the issue of an ‘Official Receipt.’ Essentially, this ‘Triggers’ the ‘Return’ of VAT to the Bureau of Internal Revenue. Consequently, Official Receipts are only issued upon Cleared Funds (Tax Collected). Copies of Official Receipts also form part of the VAT Return. As a Temporary Measure, ‘Provisional Receipts’ are issued in order to record the acceptance of an Uncleared Cheque. Receipts (Provisional and Official) are made by Letter ‘Signed’ by a Principal. VAT is then removed from the ‘Gross Balance’ in order to achieve Net Income (for Corporation Tax). This is Levied at 3% Monthly on GROSS INCOME ONLY, with a Final Reconciliation being performed at Year End. Adding further ‘Woe’ is the fact that all Small Companies, and Partnerships have a Compulsory Year End on 31 December. In Practice, this means “Wait until June of the Following Year,” for any Reconciliation to take place.
TAB 4: CASH JOURNAL This is almost identical to the Day Journal. A ‘Cash Float’ is Transferred to the Cash Journal, from the Day Journal. The Day Journal merely defines this as a Transfer, and the amount appears ‘Gross’ as a Debit. In the Cash Account, it appears ‘Gross’ as a Credit. Individual items of expenditure are then recorded in detail in the Cash Journal. At Month End the Cash Account is Closed, and Returned to the Day Journal. Local Custom also dictates a propensity for a large number of Cash Transactions. Some Support Staff do not have Bank Accounts, and are Paid in Cash. The use of Credit Cards is also unpopular, as ‘Discounts’ can often be obtained for ‘Cash!’ By ‘Returning’ the Cash a thorough Audit can take place, in addition to the reconciliation of VAT. Once reconciled and ‘SignedOff’ a Cash Float is returned, and the cycle begins again.
TAB 5: CURRENT ACCOUNT Here the Practice Current (Checking) Account is monitored on a Daily Basis, and reconciled against a Monthly Bank Statement. Bank Charges and Transaction Fees are then entered on the Day Journal and attributed as an Expense. In this instance the Sequence of Events can be seen as ‘Acting in Reverse!’ – An Automatic Debit being made by the Bank on the Bank Statement (Creating a Balance Shortfall), which is then recorded on the Day Journal, as in the case of Bank Charges. Fees incurred for ‘Dishonoured Cheques’ on the part of Clients are recorded in the same way, and also transferred to the Client Fee Account with Penalty Tariffs.
TAB 6: SALARY ACCOUNT A separate Current (Checking) Account is maintained for the Payment of Staff Salaries, and Government Payroll Levies/Withholding. This is purely to maintain Practice Confidentiality. For The Philippines, a Monthly Return has to made to the Department of Labour and Employment (DOLE), in confirmation that all Permanent Staff were paid. Part of the Submission Documentation requires a copy of the Bank Statement. Without a separate account, a copy of the Practice Current Account would have to be submitted. Quite Remarkably such information has an ‘Intrinsic Value’ and is often Sold by Corrupt DOLE Staff.
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Bookkeeping & Accounts for the Small Practice Architect
TAB 7: FIXED DEPOSITS Whilst a ‘Maintaining Balance’ is kept on the Practice Current Account, any Substantial Excess is transferred periodically to an Interest Bearing Account. Transfers back to the Current Account occur, as and when required.
TAB 8: FEE ACCOUNTS Rather than rely upon the Day Journal for monitoring ‘Receivables’ our Practice Manager maintains a separate Fee Account File. This tracks (With Commentaries and Correspondence) the Preparation, Issue, Client Receipt, Processing and Payment of all Fee Accounts. This can be useful where Clients remit only a Partial Payment – Whether accidentally, or by intent. Payment Shortfalls are then addressed on the Client Statement. Note the Inclusion of ‘Projected Fees.’ These will have been ‘Scheduled’ by the Principals and Practice Manager, and will enable a wider perspective to be given in terms of Practice Cash Flow.
TAB 9: CLIENT STATEMENTS Again, these records are maintained separately in the Fee Account File. In this instance the Form is a Template Only, and not a Contemporaneous Record. Whilst the whole Fee Accounting process might appear ‘Ponderous,’ it has to cover many instances of Late Payments, and instances where Invoices have been ‘Discounted Unilaterally’ by a Client. There are also instances of Payment Default. As Fee Income, is regulated by a Fee Agreement of Contract, such instances represent a clear ‘Breach of Contract.’ The Fee File (Managed by the Practice Manager), is then handed to a Principal where decisions will be made as to how to proceed further.
TAB 10: CHEQUE REGISTER The Cheque Register is actually a record of Payment Requisitions – Whether by Cheque, Electronic Transfer, or Cash. All Payments are ‘Signed-Off’ by the Practice Manager and a Principal. Grouped Payments such as Payroll etc., show the Gross Amount paid to the Salary Account. A ‘Schedule’ is then attached of individual disbursements to Employee Accounts.
TAB 11: OVERHEAD CODES This is the Master Chart of Accounts used as the ‘Overhead Codes’ within the Day and Cash Journals. It follows the basis of Assets, Equities, Liabilities, Income and Expense.
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Bookkeeping & Accounts for the Small Practice Architect
TIMESHEET7: TIME TRACKING The humble ‘Time Sheet’ is grossly underestimated in many Architects’ Studios. Yet, it is quite possibly one of the most important documents. Often, problems arise in ‘Collecting’ accurate information from staff. Some staff are diligent, yet others prevaricate and then ‘Rush’ to record several weeks of activity. Here, errors are likely and the information loses tremendous value! – Not to mention ‘Fee Revenue’ for the Practice! One way to overcome problems is for Timesheet Information to be gathered ‘By Proxy!’ This done at a ‘Morning Briefing,’ when Fee Earners will impart information regarding Project Activity the previous day. A member of the Support Team records this on the Time Sheet. At the beginning of the following week, the Timesheets are handed back to Fee Earners and Team Leaders, for ‘Sign-Off.’ The ‘Morning Briefing’ also acts as an opportunity to collect other information such as Printing, Travel and Expenses. All of the Primary Job Cost Information is collected within a few minutes, and has not intruded into ‘Productive Time!’ – Unlike ‘Legal Billing!’ The alternative is to use ‘Aggressive Software’ that is more aligned to a Law Firm. Here, staff are ‘Nagged by the System’ to make a Timesheet Entry every 6 Minutes. However, such systems fail to address the effect of interruptions, in a Creative Environment.
Attendance Time and Productive Time Dependent upon the ‘Basis of Fee’ it is common for Larger Clients and Project Managers to request a ‘Timesheet Audit’ from time to time. This can also be used as a ‘Delaying Tactic’ when a Fee Payment is due! It can have the effect of turning the Studio ‘Upside-Down’ as Time Sheet Data is frantically collected! However, the Timesheet7 Workbook, permits this to be obtained immediately. (Client/Project Filtering on Tab 3)
TAB 2: ST-TIMESHEET This Worksheet is for Salaried Staff. The Top Section records Attendance Time. Four ‘Arrive and Depart’ Events are included. This caters for occasions where Staff will align their hours with an Overseas Client. Teams also work Flexible Hours. Attendance is recorded on a Trust Basis rather than a Biometric Device. Times are entered as HH:MM and Totals are Calculated Automatically. Time Credits are ‘Banked’ and added to Annual Leave. Timesheets, Flexible Working Hours and Leave Credits are covered by separate Policy Documents, and managed by the Practice Manager. The Lower Section of the Form deals with Project Related Activity. Error Checking also takes place in order that Daily Attendance matches Daily Project Entries. The Memorandum Field permits a ‘Verbose Description’ of a Task, together with the ability to record the Drawings or Documents that were worked on. However, the full extent of this field is not displayed on the Basic Timesheet. Instead, all Project Time Entries and Memoranda are copied automatically onto the following Tab (STDETAIL) This Sheet will be used in the event of a Timesheet Audit. The Client and/or Project Fields can be Filtered in order to maintain the Confidentiality of other Clients. Note the Account or Job Numbers for Non-Productive Time, such as Annual Leave and Incapacity, etc. Reports from these Accounts are reviewed regularly in order to assess its more ‘Global Effect.’ Results are also a Fundamental Part of Rate Calculations.
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Bookkeeping & Accounts for the Small Practice Architect OVERHEAD COST CODES 30210 30220 30230 30240
Public Holidays & Reduced Hours Incapacity Leave Annual Leave Special Leave
Preloaded by Practice Manager Form SM-HR-2040 To be Attached Form SM-HR-2042 To be Attached Form SM-HR-2043 To be Attached
31010
Training & Education
Form SM-TR-2010 To be Attached
32010 32020
Library & Practice Resources CAD & Computer Administration
To be Authorised by Associate/Team Leader To be Authorised by Associate/Team Leader
34220
Technical Memoranda
To be Authorised by Associate/Team Leader
35010 35020 35030
Marketing & Promotions General Office Management Recruitment & HR
To be Logged by Associate/Team Leaders Only To be Logged by Associate/Team Leaders Only To be Logged by Associate/Team Leaders Only
Information is also gathered from the Project Phase and Task Fields, together with Time related to Change Orders and Variations, which might require separate Billing.
TAB 3: ST-DETAIL This is really the ‘Get out of Jail Card’ for any Practitioner working for large International Clients and Project Managers! Quite often a Project Manager will be given the responsibility of ‘Checking and Auditing’ both the Fee Accounts and Timesheet Entries on behalf of a Client. There is a propensity for this to occur on the ‘Cusp of Payment!’ – Should there be a 60 Day Payment Period, Representations will be made on Day 59! Fundamental to this is the Architect’s Contractual Relationship with his Client – Often, the Project Manager will not be part of that Agreement. Adding ‘Caveats’ to an Invoice such as “CLAIMS: All and Any Matters, Queries or Claims relating to this Invoice shall be made In Writing, and within Seven Days (Calendar) of Service” can help to an extent. However, the Client is still ‘Sitting on the Money!’ – The Architect has little choice, other than to comply with the request. It should go without saying that any response should be made as quickly as possible! In the past, and purely as an expedient I have used ‘Photocopied Time Sheets’ with irrelevant Projects and Clients being Redacted Manually. This might appease an ‘Inquisitive Client’ – Yet frequently the Project Manager will request more detailed information, thinking that it is either ‘Unavailable’ or will take ‘More Time’ to produce! However, Filtered Data from ST-DETAIL will satisfy all concerns. The ‘Task Descriptions’ appear in full, and will disclose Drawings and Documents that have been worked on. Other Clients and Projects can be ‘Filtered-Out’ before being printed. QED a response can be made quickly! – “Show me the Money!”
OTHER TIMESHEET TABS There is another Timesheet Tab available for Staff Overtime (OT-TIMESHEET). A further format exists for ‘Contract Staff’ (CN-TIMESHEET) This also acts as a ‘Payment Statement’ at the end of each week, where ‘Hours Worked’ are multiplied by an ‘Agreed Hourly Rate.’
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Bookkeeping & Accounts for the Small Practice Architect Site Supervision Staff often have to work ‘Fixed Hours’ dictated by the Contractor. Unlike Studio Staff, their Attendance is required under the Building Contract. Fees for Supervision Stages are calculated differently from Design Stages. Commonly ‘Supervision Attendance’ will be for a fixed number of hours each day. Alternatively on Smaller Projects, it will take the form of ‘Progress Checking,’ which will be for a Set Duration, at Specific Stages.
FLEXIBLE WORKING HOURS We have operated ‘Flexitime’ since 2010 and it follows accepted convention. Firstly, it helps overcome problems with Local Traffic and Late Arrivals, etc. ‘Core Times’ (10:00 to 12:00 and 14:00 to 16:00) also provide an Attendance Basis for Part-Time Staff. Commonly ‘Teams’ will agree their hours and work accordingly. One further requirement was that the Flexitime System could accommodate a ‘Shit of Hours.’ Here, Hours Worked in Manila, will be aligned to those of Clients in the Middle East or UK. Frequently, this does not require the entire ‘Team,’ and ensures a greater level of Operational Coverage. FLEX2 provides ‘Sample Working Regimes’ that can be adopted by ‘Project Teams.’ FLEX1 is the ‘Recording Method.’ The ‘Flexitime Sheets’ have been largely overtaken by the more comprehensive forms for Studio Staff. However, they are still used for recording attendance by Part-Time and Support Staff.
DIARYSHEET & PLANNERS This is a Manual Form, which is printed on the Reverse of the Studio Timesheet. It assists in recording Project Events and Activities. Staff are encouraged to leave the DIARYSHEET on their desks when away from the office. Daily Plans are used when Projects reach Critical Stages, and are used in order to ‘Plan Time.’
JOB NUMBERS A Master Job List is both Managed and Owned by the Practice Manager. This is updated on the Weekly Timesheets. It will disclose ALL Projects. Current Billable Projects are provided as information on the Main Timesheets, together with Discontinued or Defaulted ones.
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Bookkeeping & Accounts for the Small Practice Architect
JOBCOST: Project Costs TAB 1: Full Report JOBCOST is the ‘Hub’ of the Management Accounts. One is prepared for each Project, whether Fee Earning or not. It is used to record all Project Related Costs, together with Fees Received, effectively giving a ‘Running Balance’ in terms of Financial Performance. The JOBCOST will record the following information. Viz., 1. 2. 3. 4. 5. 6. 7.
Cost of Time (Booking Rates & Time Sheet Information) Printing & Reprographics (Tariff Sheet & Requisition Dockets) Travelling (Tariff Sheet & Private Vehicle Log) Expenses (Costs attributable directly to a Project) Disbursements (Payments made on behalf of a Client) Client Fee Payments Rolling Balance
JOB NO 80160 The first Cell to complete is the Job Number. This is taken from the Time Sheet Information, and acts as confirmation that the Correct Information is being ‘Booked’ to the Correct Job! Note that a Non-Fee Earning Project (Manila) carries an 8#### Number. Once ‘Live’ and Fee Earning the Sequence changes to 9#### In this instance, ‘Front End Cost of Work’ can be recovered from the Fee. Here, 4:00 Hours of Time needs to be recovered. SUB PROJECT CW Sub-Project Information is again gathered from Time Sheet Information. ‘CW’ will represent ‘Contracted Works’ for which Fees have been agreed. Codes of V## will represent Variations to the Scope of Work. Again, Fees will have been agreed via the ‘Change Order Process.’ Filtering can also separate Sub-Projects. PHASE
TASK
07
15
The Phase and Task will also be taken from Time Sheet Information. These can then be filtered separately, in order to determine ‘Actual Performance’ against ‘Planned Performance.’ Filtering can take place in order to generate a list of Phases and/or Tasks.
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Bookkeeping & Accounts for the Small Practice Architect DATE
STAFF
06 May 2011
RJM
The Date Cell will be the Date when the Work was carried out (NOT the Entry Date). Simple Initials are used in order to Log who was responsible for carrying out the Work. This can be ‘Revealed’ if required, or can become a ‘Hidden Range.’ Filtering is available on both Columns. GRADE PO1 Principal The Grade Cell will correspond with the Staff Cell. In some Fee Agreements Staff Grades are used rather than Initials, as a Staff Grade has been used for a Fee Bid. Filtering can take place, in order to review Staff Involvement and Input. DISCIPLINE Architecture Projects will be undertaken as ‘Architecture Only’ or will involve other Disciplines. Fee Arrangements with Structural, Mechanical and Electrical Consultants are negotiated separately. However, Time Sheets from SubConsultants are taken and entered into the Job Cost Sheet. These can then be either Filtered In or Out. HOURS 4.00 Hours are Entered directly from the Time Sheet. Here, hours are entered as ‘Decimal Hours’ with Billing Increments of 15 Minutes or 0.25 Hours. All ‘Real Time’ Logging (Time Sheets) is recorded as 4:00 as an Excel Time Format. Filtering can also take place. BOOKING RATE PHP
1,275.00
Dependent upon the Fee Agreement, the Booking Rate can be ‘Revealed’ or not. However, it will always be used ‘Internally.’ The Rate ‘Logged’ here is the Fee Earner Book-Back Rate, reflecting what was Quoted within the Bid, and Fee Agreement, as appropriate. The Rate will be inclusive of Salary, Overhead, and Profit.
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Bookkeeping & Accounts for the Small Practice Architect TIME CHARGE PHP
5,100.00
The Time Charge is merely the Product of the Hours and Rate BOOKING REFERENCE 90160-110513-01 A Booking Reference is made purely in order so that ‘Specific Tasks’ can be referred to in Client Correspondence at a later date. The Reference carries the Job Number 90160 The next Sequence is a ‘Reverse Date’ YYMMDD with 01 being the ‘Entry’ made. CHARGEABLE PRINTS
NON CHARGEABLE PRINTS
PHP
-
CHARGEABLE EXPENSES
PHP
-
NON CHARGEABLE EXPENSES
PHP
-
PHP
-
Here ‘Costs’ attributable to the Project will be recorded. However, these will largely be related to Printing and Travelling. Dependent upon the Fee Agreement, such Costs will be either ‘Recoverable’ or will be ‘Absorbed’ as part of a Lump Sum. Such Lump Sum Agreements are ‘Capped’ in terms of Printing and Expenses. Therefore, ‘Monitoring’ can take place in order to determine whether Cost Ceiling are within limits, or have been exceeded. CLIENT DISBURSEMENTS PHP
-
‘Client Disbursements’ differ from ‘Expenses’ as they are amounts which are paid by the Architect on the Client’s Behalf, and then Recovered Later. Although included in the Job Cost, ‘Disbursements’ are the ‘Exception’ rather than the ‘Rule.’ Usually a Client Expense and Potential Debt will be required in Advance. Other Columns then record Totals, Fee Payments and Commentaries. Note that the Job Cost Sheet records all Financial Amounts Net of VAT (NOT Including VAT). VAT is only recorded on the Financial Accounts.
TAB 2: TIME-SUMMARY Here, Contemporaneous Entries have been made using the =SUM Function to the FULL-REPORT Tab. This permits a Filtered Summarised List of Fee Earners and Hours (Without Costs), which is used frequently as Support Information appended to Fee Accounts. This is merely a demonstration of Project/Client Commitment.
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Bookkeeping & Accounts for the Small Practice Architect
PROJECTMASTER: Project Costs TAB 1: LIVE The PROJECTMASTER can be regarded as a ‘Global JOBCOST!’ It brings together ALL Projects (Fee Earning and Non-Fee Earning). In this instance it also addresses Workload in Three Studios. However, PROJECTMASTER Sheets can be created relative to each location. Similarly, information can also be ‘Cascaded’ to a Project Team, who may be involved with a number of Live Projects at any one time.
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Wednesday 18 January 2017
BDO CURRENT ACCOUNT MONITORING FROM: TO: ACCOUNT: SWIFT: BRANCH: ENTRY NUMBER 130001 130002 130003 130004 130005 130006 130007 130008 130009 130010 130011 130012 130013
SAMANIEGOMORGAN
16 November 2011 01 December 2011 0280925549 BNORPHMMXXX 028: SM MEGA MALL B DATE
16 Nov 2011 16 Nov 2011 17 Nov 2011 18 Nov 2011 19 Nov 2011 19 Nov 2011 20 Nov 2011 21 Nov 2011 26 Nov 2011 30 Nov 2011 01 Dec 2011 01 Dec 2011 01 Dec 2011
CREDIT DEBIT
CR CR CR DR DR DR DR DR CR DR DR
ARCHITECTS & ENGINEERS B9L13 Narcissus Street Barangay San Luis ANTIPOLO CITY Republic of The Philippines
EFT CHQ BGC DDB REFERENCE
DESCRIPTION
Internal Adjustment Scott Wilson (Fees Received) Scott Wilson (Fees Received) RailTRACK (Fees Received) ADVANCE: Rhonnie Sampang ADVANCE: Raul Paz Colotek Printers (Antipolo) TFR TO CASH ACCOUNT TFR TO SALARY ACCOUNT Peabody Trust BDO (Bank Reconciliation) TFR TO FIXED DEPOSIT Internal Adjustment
EFT EFT EFT CHQ CHQ CHQ CHQ EFT EFT BGC CHQ
90157-F01 90157-F02 90165-F01 37215-202-1008 37216-201-1007 30153-11112006
60170-F01
CREDIT
BD0-4665578 BD0-4665578 BD0-4665578 CHQ-BDO-0211522 CHQ-BDO-0211523 CHQ-BDO-0211523 CHQ-BDO-0211524 BD0-4665578 BD0-4665578 Bank Statement CHQ-BDO-0211525
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
TOTALS: PHP
DEBIT
ROLLING BALANCE PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
1,475,227.00 1,575,501.00 1,578,361.00 1,703,361.00 1,683,361.00 1,661,361.00 1,650,919.00 1,640,919.00 1,315,919.00 1,416,157.22 1,415,870.02 415,870.02 415,870.02
OPENING BALANCE: PHP CREDITS: PHP DEBITS: PHP
1,475,227.00 328,372.22 (1,387,729.20)
100,274.00 2,860.00 125,000.00 -
PHP PHP PHP PHP PHP PHP PHP PHP 100,238.22 PHP PHP PHP
(20,000.00) (22,000.00) (10,442.00) (10,000.00) (325,000.00) (287.20) (1,000,000.00)
328,372.22 PHP
(1,387,729.20)
CLOSING BALANCE: PHP
COMMENTARY
OPENING BALANCE Scott Wilson (Fees Received) Scott Wilson (Fees Received) RailTRACK (Fees Received) SALARY: Rhonnie Sampang SALARY: Raul Paz Colotek Printers (Antipolo) TFR TO PETTY CASH TFR TO SALARY ACCOUNT Peabody Trust BDO (Bank Reconciliation) TFR TO FIXED DEPOSIT CLOSING BALANCE
415,870.02 BALANCE AGREES
Wednesday 18 January 2017
DAY JOURNAL (CASH BASIS)
SAMANIEGOMORGAN
FROM: 16 November 2011 TO: 01 December 2011
MNL EFT DXB CHQ LON BGC DDB
CR DR ENTRY NUMBER
110001 110002 110003 110004 110005 110006 110007 110008 110009 110010 110011 110012 110013 110014 110015
DATE
16 Nov 2011 16 Nov 2011 18 Nov 2011 18 Nov 2011 19 Nov 2011 19 Nov 2011 20 Nov 2011 21 Nov 2011 30 Nov 2011 01 Dec 2011 01 Dec 2011 01 Dec 2011 01 Dec 2011 15 Dec 2011 15 Dec 2011
15 Dec 2011
CREDIT DEBIT
CR CR CR DR DR DR DR CR DR DR CR DR DR DR
RECEIVED FROM PAYABLE TO
Scott Wilson Scott Wilson RailTRACK ADVANCE: Ronnie Sampang ADVANCE: Raul Paz Colotek Printers (Antipolo) TFR TO CASH ACCOUNT Peabody Trust BDO (Bank Reconciliation) TFR TO SALARY ACCOUNT Mr & Mrs Esperanza TFR TO FIXED DEPOSIT Fawkes Group: Rent Fawkes Group: Rent
LEDGER CLASSIFICATION
Internal Adjustment 30001 Fee Income 30002 Fee Expense Income 30001 Fee Income 37111 Direct Salary Costs 37111 Direct Salary Costs 34113 Printing Internal Adjustment 30001 Fee Income 36111 Bank Charges 37111 Direct Salary Costs 30001 Fee Income Internal Adjustment 30021 Office Rent 30022 Accommodation Rent
ARCHITECTS & ENGINEERS B9L13 Narcissus Street Barangay San Luis ANTIPOLO CITY Republic of The Philippines
PAYMENT JOB METHOD OVERHEAD CODE
DXB DXB LON MNL MNL MNL MNL LON MNL MNL MNL MNL MNL MNL
EFT EFT EFT CHQ CHQ CHQ CHQ EFT BGC EFT BGC CHQ CHQ CHQ
90157 90157 90165 37111 37111 34113 60170 36111 37210 90153 30021 30022
INVOICE RECEIPT DOCKET
90157-F01 90157-F02 90165-F01 CHR-11111901 CHR-11111902 CHR-11112001 CHR-11112102 60170-F01 36111-111201-E01 37111-111201-E02 90153-F04 CHR-11120101 CHR-11121501 CHR-11121501
INVOICE DATE
PAYMENT REFERENCE
13 Oct 2011 13 Oct 2011 16 Sep 2011
BD0-4665578 BD0-4665578 BD0-4665578 CHQ-BDO-0211522 CHQ-BDO-0211523 CHQ-BDO-0211524 CHQ-BDO-0211525 BD0-4665578 Bank Statement Bank Statement CHQ-BDO-0211526 CHQ-BDO-0211527 CHQ-BDO-0211528 CHQ-BDO-0211529
19 Nov 2011 31 Oct 2011
05 Nov 2011 30 Nov 2011 30 Nov 2011
RECEIVED GROSS (INC VAT)
PAID GROSS (INC VAT)
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
100,274.00 2,860.00 125,000.00 100,238.22 164,275.00 -
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
PHP
492,647.22 PHP
(20,000.00) (22,000.00) (10,442.00) (10,000.00) (287.20) (325,000.00) (1,000,000.00) (16,850.00) (15,225.00)
(1,419,804.20)
VAT RATE
VAT OUTPUT (VAT CHARGED)
PHP PHP PHP PHP PHP 12.00% PHP PHP PHP PHP PHP 12.00% PHP PHP PHP PHP
PHP
17,600.89 -
VAT INPUT (VAT PAID)
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
17,600.89 PHP
(1,118.79) -
ROLLING BALANCE (INC VAT) PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
(1,118.79) PHP
OPENING BALANCE: PHP TOTAL RECEIPTS: PHP TOTAL PAYMENTS: PHP CLOSING BALANCE: PHP LIABILITY FOR VAT: PHP SUM FOR CORPORATION TAX UPON RECEIPTS: PHP MONTHLY LIABILITY FOR CORPORATION TAX: PHP
BOOKKEEP4.xlsx: DAY JOURNAL
1,475,227.00 1,575,501.00 1,578,361.00 1,703,361.00 1,683,361.00 1,661,361.00 1,650,919.00 1,640,919.00 1,741,157.22 1,740,870.02 1,415,870.02 1,580,145.02 580,145.02 563,295.02 548,070.02
COMMENTARY
OPENING BALANCE MA! Post to 90157 JOBCOST MA! Post to 90157 JOBCOST MA! Post to 90165 JOBCOST Post to 37215 (Recover from Salary) Post to 37216 (Recover from Salary) Post to 34113 Internal Adjustment MA! Post to 60170 JOBCOST Post to 36111 Post to 37111 MA! Post to 90153 JOBCOST Internal Adjustment 30021 Office Rent 30022 Accommodation Rent
548,070.02 BALANCE 1,475,227.00 492,647.22 (1,419,804.20) 548,070.02 BALANCE AGREES 16,482.11 RECONCILE WITH OFFICIAL RECEIPTS 473,927.54 EXCLUDING VAT 14,217.83 3.00%
PAGE: 1 OF 1
PERSONAL CASHFLOW
Personal Savings
Monthly January
Monthly February
Monthly March
Monthly April
Monthly May
Monthly June
Monthly July
Monthly August
Monthly September
Monthly October
Monthly November
Monthly December
Net Primary Income: Net Secondary Income: Net Tertiary Income:
PHP PHP PHP
59,490.00 30,000.00 5,000.00
Total Income:
PHP
94,490.00 PHP
102,090.00 PHP
92,240.00 PHP
101,750.00 PHP
96,700.00 PHP
96,150.00 PHP
101,850.00 PHP
96,125.00 PHP
95,530.00 PHP
98,465.00 PHP
108,890.00 PHP
WHAT IF INCOME IS NOT AS PLANNED Monthly Credit/Debit: Rolling Balance: PHP
PHP PHP 256,750.00 PHP
PHP (59,490.00) PHP 197,260.00 PHP
PHP (67,090.00) PHP 130,170.00 PHP
45,000.00 PHP (12,240.00) PHP 117,930.00 PHP
25,000.00 PHP (41,750.00) PHP 76,180.00 PHP
PHP (61,700.00) PHP 14,480.00 PHP
75,000.00 PHP 13,850.00 PHP 28,330.00 PHP
75,000.00 PHP 8,150.00 PHP 36,480.00 PHP
75,000.00 PHP 13,875.00 PHP 50,355.00 PHP
75,000.00 PHP 14,470.00 PHP 64,825.00 PHP
75,000.00 PHP 11,535.00 PHP 76,360.00 PHP
75,000.00 PHP 1,110.00 PHP 77,470.00 PHP
75,000.00 (20,345.00) 57,125.00
PERFECT WORLD SCENARIO Rolling Balance: PHP Monthly Credit/Debit:
256,750.00 PHP PHP
291,750.00 PHP 35,000.00 PHP
326,750.00 PHP 35,000.00 PHP
361,750.00 PHP 35,000.00 PHP
396,750.00 PHP 35,000.00 PHP
431,750.00 PHP 35,000.00 PHP
466,750.00 PHP 35,000.00 PHP
501,750.00 PHP 35,000.00 PHP
536,750.00 PHP 35,000.00 PHP
571,750.00 PHP 35,000.00 PHP
606,750.00 PHP 35,000.00 PHP
641,750.00 PHP 35,000.00 PHP
676,750.00 35,000.00
Total Expenditure:
PHP
59,490.00 PHP
67,090.00 PHP
57,240.00 PHP
66,750.00 PHP
61,700.00 PHP
61,150.00 PHP
66,850.00 PHP
61,125.00 PHP
60,530.00 PHP
63,465.00 PHP
73,890.00 PHP
Rent: Meralco (Electricity): Manila Water: Property Tax: PLDT & Globe Telecom: Cable TV: LPG: Visas: Medical Insurance: Property Insurance: Medical Bills & Pharmaceuticals: Petrol: Bank Charges & Card Fees: Part-Time Housemaid/Houseboy:
PHP PHP PHP
7,650.00 4,100.00 1,025.00
PHP PHP PHP
7,650.00 3,850.00 1,025.00
PHP PHP PHP
7,650.00 3,825.00 1,050.00
PHP PHP PHP PHP PHP
3,525.00 150.00 825.00 2,000.00
PHP PHP PHP PHP PHP
3,525.00 PHP 150.00 PHP 825.00 PHP 4,275.00 PHP 2,000.00 PHP
3,525.00 150.00 825.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00 5,575.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP
2,000.00
Gym or Health Club: Charitable Donations: Magazines & Newspapers: Out of Pocket & CasuaL Expenses:
PHP
450.00
PHP
450.00
PHP
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
Planned Expenditure (TFR to S/A): Contingencies (TFR to S/A):
PHP PHP
2,500.00 4,250.00
PHP PHP
Savings Account Opening Balance: Planned Expenditure (TFR from C/A): Contingencies (TFR from C/A):
PHP PHP PHP
250,000.00 2,500.00 4,250.00
PHP PHP PHP
Savings Account Closing Balance:
PHP
256,750.00 PHP
Groceries: Fresh Foodstuffs: Fresh Water: Booze: Cigarettes: Entertainment: Pets: Veterinary Bills: Car Registration & Insurance: Car Maintenance:
PHP PHP PHP
67,090.00 30,000.00 5,000.00
PHP PHP PHP
57,240.00 30,000.00 5,000.00
PHP PHP PHP
66,750.00 30,000.00 5,000.00
PHP PHP PHP
61,700.00 30,000.00 5,000.00
PHP PHP PHP
61,150.00 30,000.00 5,000.00
PHP PHP PHP
66,850.00 30,000.00 5,000.00
PHP PHP PHP
61,125.00 30,000.00 5,000.00
PHP PHP PHP
60,530.00 30,000.00 5,000.00
PHP PHP PHP
63,465.00 30,000.00 5,000.00
PHP PHP PHP
73,890.00 30,000.00 5,000.00
PHP PHP PHP
7,650.00 3,460.00 1,075.00
PHP PHP PHP
7,650.00 3,460.00 1,050.00
PHP PHP PHP
7,650.00 3,460.00 1,025.00
PHP PHP PHP
7,650.00 3,460.00 1,025.00
PHP PHP PHP
7,650.00 3,460.00 1,025.00
PHP PHP PHP
7,650.00 3,800.00 1,025.00
PHP PHP PHP
7,650.00 3,950.00 1,025.00
PHP PHP PHP
3,525.00 150.00 825.00 2,000.00 4,800.00 3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP PHP
3,525.00 PHP 150.00 PHP 825.00 PHP 4,275.00 PHP 2,000.00 PHP
3,525.00 150.00 825.00 2,000.00
PHP PHP PHP PHP PHP
3,525.00 PHP 150.00 PHP 825.00 PHP 4,275.00 PHP 2,000.00 PHP
3,525.00 150.00 825.00 2,000.00
PHP PHP PHP PHP PHP
3,525.00 PHP 150.00 PHP 825.00 PHP 4,275.00 PHP 2,000.00 PHP
3,525.00 150.00 825.00 2,000.00
PHP PHP PHP PHP
7,650.00 PHP 3,460.00 PHP 1,075.00 PHP 3,575.00 3,525.00 PHP 150.00 PHP 825.00 PHP 4,275.00 PHP 2,000.00 PHP PHP 3,565.00 PHP 2,000.00 PHP 225.00 PHP 1,000.00 PHP
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,000.00
PHP PHP PHP PHP
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
6,275.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
PHP
3,680.00
PHP
2,000.00
PHP
10,000.00
PHP
2,000.00
450.00
PHP
450.00
PHP
450.00
PHP
450.00
PHP
450.00
PHP
450.00
PHP
450.00
PHP
450.00
PHP
450.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
1,200.00 2,500.00
PHP PHP
8,500.00 8,500.00
PHP PHP PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
2,500.00 4,250.00
PHP PHP
256,750.00 2,500.00 4,250.00
PHP PHP PHP
263,500.00 2,500.00 4,250.00
PHP PHP PHP
270,250.00 2,500.00 4,250.00
PHP PHP PHP
277,000.00 2,500.00 4,250.00
PHP PHP PHP
283,750.00 2,500.00 4,250.00
PHP PHP PHP
290,500.00 2,500.00 4,250.00
PHP PHP PHP
297,250.00 2,500.00 4,250.00
PHP PHP PHP
304,000.00 2,500.00 4,250.00
PHP PHP PHP
310,750.00 2,500.00 4,250.00
PHP PHP PHP
317,500.00 2,500.00 4,250.00
PHP PHP PHP
263,500.00 PHP
270,250.00 PHP
PHP PHP PHP PHP PHP PHP PHP
277,000.00 PHP
283,750.00 PHP
290,500.00 PHP
297,250.00 PHP
304,000.00 PHP
310,750.00 PHP
PHP PHP PHP
130,345.00 PHP
95,345.00 PHP
794,625.00 360,000.00 60,000.00
AVERAGE PHP PHP PHP PHP
66,218.75 30,000.00 5,000.00
794,625.00 PHP
101,218.75
794,625.00 PHP
66,218.75
PHP PHP PHP PHP PHP
7,650.00 PHP 4,050.00 PHP 1,025.00 PHP PHP 3,850.00 PHP 150.00 PHP 825.00 PHP 4,275.00 PHP 2,000.00 PHP
91,800.00 44,335.00 12,450.00 3,575.00 42,625.00 1,800.00 9,900.00 25,650.00 24,000.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP
7,650.00 3,694.58 1,037.50 297.92 3,552.08 150.00 825.00 2,137.50 2,000.00
3,565.00 2,000.00 225.00 2,275.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 2,250.00
PHP PHP PHP PHP
42,780.00 24,000.00 2,700.00 14,525.00
PHP PHP PHP PHP
3,565.00 2,000.00 225.00 1,210.42
8,250.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP
10,475.00 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00
PHP PHP PHP PHP PHP PHP PHP PHP
81,475.00 53,400.00 3,600.00 15,000.00 15,000.00 60,000.00 24,000.00 5,575.00
PHP PHP PHP PHP PHP PHP PHP PHP
6,789.58 4,450.00 300.00 1,250.00 1,250.00 5,000.00 2,000.00 464.58
PHP 1,555.00 PHP
3,680.00 17,555.00
PHP PHP
306.67 1,462.92
PHP PHP PHP PHP
5,400.00 10,000.00 30,500.00 43,500.00
PHP PHP PHP PHP
450.00 833.33 2,541.67 3,625.00
2,500.00 PHP 4,250.00 PHP
30,000.00 51,000.00
PHP PHP
2,500.00 4,250.00
PHP
317,500.00 PHP
95,345.00 30,000.00 5,000.00
Annually PHP
324,250.00 PHP
450.00 10,000.00 10,000.00 10,000.00
324,250.00 2,500.00 4,250.00 331,000.00 PHP
293,875.00 Average Balance
PRACTICE CASHFLOW
Startup Capitalisation
Monthly January
Monthly February
Monthly March
Monthly April
Monthly May
Monthly June
Monthly July
Monthly August
Monthly September
Monthly October
Monthly November
Monthly December
Annually PHP
Net Primary Fee Income: Net Secondary Fee Income: Net Tertiary Fee Income:
PHP PHP PHP
912,283.33 27,368.50 10,000.00
Total Income:
PHP
949,651.83 PHP
866,071.83 PHP
943,021.83 PHP
979,521.83 PHP
861,071.83 PHP
928,021.83 PHP
853,861.83 PHP
871,371.83 PHP
928,021.83 PHP
928,021.83 PHP
861,071.83 PHP
WHAT IF INCOME IS NOT AS PLANNED Monthly Credit/Debit: Rolling Balance: PHP
PHP PHP 1,000,000.00 PHP
100,000.00 PHP (812,283.33) PHP 187,716.67 PHP
1,500,000.00 PHP 673,716.67 PHP 861,433.33 PHP
825,000.00 PHP (66,283.33) PHP 795,150.00 PHP
725,000.00 PHP (216,283.33) PHP 578,866.67 PHP
950,000.00 PHP 123,716.67 PHP 702,583.33 PHP
1,025,000.00 PHP 133,716.67 PHP 836,300.00 PHP
750,000.00 PHP (69,283.33) PHP 767,016.67 PHP
975,000.00 PHP 138,716.67 PHP 905,733.33 PHP
1,500,000.00 PHP 608,716.67 PHP 1,514,450.00 PHP
800,000.00 PHP (91,283.33) PHP 1,423,166.67 PHP
485,000.00 PHP (341,283.33) PHP 1,081,883.33 PHP
365,000.00 (817,283.33) 264,600.00
PERFECT WORLD SCENARIO Rolling Balance: PHP Monthly Credit/Debit:
1,000,000.00 PHP PHP
1,037,368.50 PHP 37,368.50 PHP
1,077,157.00 PHP 39,788.50 PHP
1,128,895.50 PHP 51,738.50 PHP
1,167,134.00 PHP 38,238.50 PHP
1,201,922.50 PHP 34,788.50 PHP
1,238,661.00 PHP 36,738.50 PHP
1,273,239.50 PHP 34,578.50 PHP
1,308,328.00 PHP 35,088.50 PHP
1,345,066.50 PHP 36,738.50 PHP
1,381,805.00 PHP 36,738.50 PHP
1,416,593.50 PHP 34,788.50 PHP
1,462,062.00 45,468.50
PHP
912,283.33 PHP
826,283.33 PHP
891,283.33 PHP
941,283.33 PHP
826,283.33 PHP
891,283.33 PHP
819,283.33 PHP
836,283.33 PHP
891,283.33 PHP
891,283.33 PHP
826,283.33 PHP
1,182,283.33 PHP
Staff Salaries: Partner Drawings: Accountant: Auditor: Lawyer:
PHP PHP PHP PHP PHP
285,000.00 PHP 140,000.00 PHP 65,000.00 PHP 25,000.00 10,000.00
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
285,000.00 PHP 140,000.00 PHP 5,000.00 PHP
Soft Loan Repayments: Bank Loan Capital Repayments: Bank Loan Interest Repayments:
PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
20,000.00 PHP
BIR Tax BIR VAT Pag Ibig SSS Philhealth:
PHP PHP PHP PHP PHP
IT Support:
PHP
5,000.00 PHP
1,000.00 PHP
1,000.00 PHP
5,000.00 PHP
1,000.00 PHP
1,000.00 PHP
5,000.00 PHP
1,000.00 PHP
1,000.00 PHP
5,000.00 PHP
1,000.00 PHP
570,000.00 PHP 140,000.00 PHP 5,000.00 PHP PHP PHP PHP 20,000.00 PHP PHP PHP PHP 30,000.00 PHP 120,000.00 PHP 10,000.00 PHP 24,000.00 PHP 10,000.00 PHP PHP 1,000.00 PHP
Staff Accommodation:
PHP
28,000.00 PHP
36,000.00 PHP
36,000.00 PHP
28,000.00 PHP
36,000.00 PHP
36,000.00 PHP
30,000.00 PHP
36,000.00 PHP
36,000.00 PHP
36,000.00 PHP
36,000.00 PHP
20,000.00
PHP
25,000.00
Total Expenditure:
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
826,283.33 24,788.50 15,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
891,283.33 26,738.50 25,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
941,283.33 28,238.50 10,000.00
45,000.00 145,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
826,283.33 24,788.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
891,283.33 26,738.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
819,283.33 24,578.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
836,283.33 25,088.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
891,283.33 26,738.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
891,283.33 26,738.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
826,283.33 24,788.50 10,000.00
30,000.00 120,000.00 5,000.00 12,000.00 5,000.00
PHP PHP PHP
PHP PHP PHP PHP PHP
1,182,283.33 35,468.50 10,000.00
PHP PHP PHP
1,227,751.83 PHP
PHP LRO: Sub-Consultant (Structure & Civils): Sub-Consultant (Electrical): Sub-Consultant (Mechanical): Sub-Consultant (Public Health): Sub-Consultant (Landscape): Sub-Consultant (Others): Marketing:
PHP PHP PHP PHP
25,000.00
PHP
25,000.00
PHP
10,000.00 5,000.00
PHP PHP PHP
PHP PHP
5,000.00 5,000.00 PHP
5,000.00 PHP
Rent: Meralco (Electricity): Manila Water: Property Tax: Globe Telecom: Website & Mail Server Fees:
PHP PHP PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
PHP PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
LPG: Visas: Medical Insurance: Property Insurance: Third Party Liability Insurance: Professional Indemnity Insurance: Diesel/Petrol: Bank Charges & Card Fees:
PHP PHP PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
PHP PHP
10,000.00 PHP 1,250.00 PHP
Contingencies:
PHP
Planned Budget (Office Interior): Planned Budget (IT Hardware): Planned Budget (IT Software): Planned Budget (Office FF&E):
PHP
25,000.00
PHP
10,000.00 5,000.00
PHP PHP
5,000.00
PHP
PHP PHP 5,000.00 PHP
25,000.00
10,000.00 5,000.00 5,000.00 PHP
25,000.00
25,000.00
PHP
10,000.00 5,000.00
PHP PHP
5,000.00
PHP PHP
25,000.00
10,000.00 5,000.00
5,000.00
PHP
5,000.00
10,000.00
5,000.00 PHP
PHP 5,000.00 PHP
5,000.00 5,000.00 PHP
5,000.00 PHP
PHP 5,000.00 PHP
5,000.00 5,000.00 PHP
5,000.00 PHP
5,000.00
PHP PHP PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP
20,000.00 11,000.00 3,000.00
20,000.00 PHP 11,000.00 PHP 3,000.00 PHP PHP 5,000.00 PHP 1,000.00 PHP
20,000.00 11,000.00 3,000.00 8,000.00 5,000.00 1,000.00
PHP PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 PHP 1,000.00 PHP
5,000.00 1,000.00
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP 18,000.00 48,000.00
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP
1,700.00 4,500.00 4,000.00
10,000.00 PHP 1,250.00 PHP
PHP 10,000.00 PHP 1,250.00 PHP
60,000.00 10,000.00 PHP 1,250.00 PHP
10,000.00 PHP 1,250.00 PHP
PHP 10,000.00 PHP 1,250.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP PHP PHP 60,000.00 10,000.00 PHP 1,250.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP 18,000.00 48,000.00
PHP 10,000.00 PHP 1,250.00 PHP
1,700.00 PHP 4,500.00 PHP 4,000.00 PHP PHP PHP 60,000.00 10,000.00 PHP 1,250.00 PHP
10,000.00 PHP 1,250.00 PHP
PHP 10,000.00 PHP 1,250.00 PHP
60,000.00 10,000.00 1,250.00
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00 PHP
30,000.00
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
PHP PHP PHP PHP
8,333.33 16,666.67 16,666.67 4,166.67
Savings Account Opening Balance: Planned Expenditure (TFR from C/A): Contingencies (TFR from C/A):
PHP PHP PHP
250,000.00 16,666.67 4,166.67
PHP PHP PHP
270,833.33 16,666.67 4,166.67
PHP PHP PHP
291,666.67 16,666.67 4,166.67
PHP PHP PHP
312,500.00 16,666.67 4,166.67
PHP PHP PHP
333,333.33 16,666.67 4,166.67
PHP PHP PHP
354,166.67 16,666.67 4,166.67
PHP PHP PHP
375,000.00 16,666.67 4,166.67
PHP PHP PHP
395,833.33 16,666.67 4,166.67
PHP PHP PHP
416,666.67 16,666.67 4,166.67
PHP PHP PHP
437,500.00 16,666.67 4,166.67
PHP PHP PHP
458,333.33 16,666.67 4,166.67
PHP PHP PHP
479,166.67 16,666.67 4,166.67
Savings Account Closing Balance:
PhP
270,833/- PhP
291,667/- PhP
312,500/- PhP
333,333/- PhP
354,167/- PhP
375,000/- PhP
395,833/- PhP
416,667/- PhP
437,500/- PhP
458,333/- PhP
479,167/- PhP
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
500,000/- PhP
AVERAGE PHP
10,735,400.00 322,062.00 140,000.00
PHP PHP PHP
894,616.67 26,838.50 11,666.67
11,197,462.00 PHP
933,121.83
10,735,400.00 PHP
894,616.67
3,705,000.00 1,680,000.00 120,000.00 25,000.00 10,000.00 240,000.00 375,000.00 1,465,000.00 65,000.00 156,000.00 65,000.00 28,000.00
100,000.00 40,000.00 20,000.00 20,000.00 20,000.00 20,000.00 60,000.00 240,000.00 132,000.00 36,000.00 8,000.00 60,000.00 12,000.00 20,400.00 54,000.00 48,000.00 36,000.00 96,000.00 240,000.00 120,000.00 15,000.00 360,000.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
308,750.00 140,000.00 10,000.00 2,083.33 833.33 20,000.00 31,250.00 122,083.33 5,416.67 13,000.00 5,416.67 2,333.33
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
8,333.33 3,333.33 1,666.67 1,666.67 1,666.67 1,666.67 5,000.00 20,000.00 11,000.00 3,000.00 666.67 5,000.00 1,000.00 1,700.00 4,500.00 4,000.00 3,000.00 8,000.00 20,000.00 10,000.00 1,250.00 30,000.00
385,417/- Average Balance
SAMANIEGOMORGAN Architects & Engineers
MESSENGER DOCKET Docket Number: Project/Client: Date: Vehicle: Purpose: Driver: JOURNEY DETAILS Location DEPART: Odometer DEPART: Time DEPART: Location ARRIVE: Odometer ARRIVE: Time ARRIVE: BASIC CHARGES Tariff: Service Charge: Kilometre Charge: Time Charge: OTHER CHARGES Pre-Booking: Metro Manila Entry: Tolls: Delivery/Collection: Waiting: Stop: Parking: Other: TOTAL: 12% VAT: GRAND TOTAL: Created By:
30227-MESDOK-P01
Checked &Entered By:
SAMANIEGOMORGAN Architects & Engineers
REPROGRAPHICS DOCKET Docket Number: Project/Client: Date: In-House: Outsource: Requisitioned By: Issue To: ORDER DETAILS Originals: Size: Product: Copies: Originals: Size: Product: Copies: Originals: Size: Product: Copies: Originals: Size: Product: Copies: PRINTING INSTRUCTIONS
TOTAL: 12% VAT: GRAND TOTAL: Created By:
30227-REPRODOK-P01
Checked & Entered By:
SAMANIEGOMORGAN Architects & Engineers
EXPENSE DISBURSEMENT Docket Number: Project/Client: Date: In-House: Supplier: Requisitioned By: Required For: DETAILS Item: Gross Cost: Receipt Attachment: Net Cost: Item: Gross Cost: Receipt Attachment: Net Cost: Item: Gross Cost: Receipt Attachment: Net Cost: Item: Gross Cost: Receipt Attachment: Net Cost: BILLING INSTRUCTIONS
TOTAL: 12% VAT: GRAND TOTAL: Created By:
30227-REPRODOK-P01
Checked & Entered By:
SAMANIEGOMORGAN Architects & Engineers
TRANSACTION DOCKET Docket Number: Project/Client: Overhead Code: Date: Transfer: Requisitioned By: Required For: DETAILS Item: Debit/Credit: Attachment: Net Cost: Item: Debit/Credit: Attachment: Net Cost: Item: Debit/Credit: Attachment: Net Cost: Item: Debit/Credit:: Attachment: Net Cost: COMMENTARY THIS DOCUMENT IS NOT AN OFFICIAL RECEIPT
TOTAL: VAT: GRAND TOTAL: Created By:
30227-REPRODOK-P01
Checked & Entered By:
SAMANIEGOMORGAN Architects & Engineers
FILE MEMORANDUM Docket Number: Project/Client: Overhead Code: Date: DETAILS
COMMENT
Created By:
30227-REPRODOK-P01
SAMANIEGOMORGAN Architects & Engineers
CASH AUDIT Docket Number: Location: Date: Petty Cash Owner: Pervious Balance: INPUT CASH: OUTPUT CASH: BALANCE: CASH DETAILS PHP 1,000 Notes: PHP 500 Notes: PHP 200 Notes: PHP 100 Notes: PHP 50 Notes: PHP 20 Notes: IOUs: PHP 10 Coins: PHP 5 Coins: PHP 1 Coins: PHP 0.50 Coins: PHP 0.25 Coins: PHP 0.10 Coins: PHP 0.05 Coins: TOTAL CASH: RECONCILIATION COMMENTS BANKNOTE SERIAL NUMBERS TO BE PROVIDED ON THE BACK OF THIS FORM
CREDIT: DEBIT: BALANCE: Created By:
30227-REPRODOK-P01
Checked & Entered By:
RHONNIE SAMPANG (MANILA STUDIO) PT-03 SENIOR ARCHITECTURAL TECHNICIAN ASSUMPTIONS Maximum Days Per Annum
HRBUILD 29 June 2016 CURRENCY EXCHANGE RATES
Calendar Days Per Month: Working Days Per Month: Weekends: Paid Public Holidays: Paid Annual Leave: Assumed Paid Incapacity Leave: Non-Working Days (Calamity): CPD/White Paper/Study:
30.00 100.00% Based Monthly 20.00 66.67% Based Monthly 104.00 28.49% Based Annually 12.00 3.29% Based Annually 20.00 5.48% Based Annually 5.00 1.37% Based Annually 3.00 0.82% Based Annually 5.00 1.37% Based Annually
Total Non-Working Days:
149.00 40.82% Based Annually
Net Working Days:
216.00 59.18% Based Annually
Min Hours Per Week: Median Hours Per Week: Max Hours Per Week:
37.50 41.25 45.00
Potential Fee Earning Hours Per Annum:
11.00
Adjusted Fee Earning Hours Per Annum:
27,500.00 500.00 750.00 550.00
Payable Monthly Payable Monthly Payable Monthly Payable Monthly
Net Monthly Salary to Employer: PHP
29,300.00
Payable Monthly
Thirteenth Month: Paid Annual Leave: Paid Incapacity Leave: Discretionary Bonus: Potential Regrade/Salary Increment:
29,300.00 29,300.00 7,325.00 2,750.00
PHP PHP PHP PHP PHP
Gross Annual Salary to Employee: PHP Net Annual Cost to Employer: PHP
216.00
Per Diem Accommodation (Bahay Tuko): Per Diem Meals/Meal Allowances (Bahay Tuko):
200.00 150.00
Cost Per Annum: PHP
75,600.00
Cost Per Month: PHP
6,300.00
29 Jun 2016 29 Jun 2016 29 Jun 2016
NOTE 6 Corroborate from Timesheets & Practice Planner 7.50 8.25 9.00
NOTE 9 Based on Median Hours Hrs PW 4.00
NOTE 10 Obtained from Historical Timesheet Data (Comment) Included as Float (No Adjustment to Annual Hours)
Weeks PA 48.00
NOTE 12 Obtained from Historical Timesheet Data Should be Approximately 1,500 Including YTIME
NOTE NOTE NOTE NOTE
13 14 15 16
98.01% 82.50%
Contracted BASIC Salary The Equivalent of NHI The National Building Society Additional to SSS (NHI)
NOTE 17 Paid by 15 December Annually NOTE 18 VSL Balanced with Month 13 NOTE 19 VSL Balanced with Month 13
357,500.00 420,275.00
ACCOMMODATION COSTS Annual Days of Occupancy:
Banko Sentral ng Pilipinas Banko Sentral ng Pilipinas Banko Sentral ng Pilipinas
NOTE 11 Fee Earning Studio Staff
1,470.15 82.50% Based Annually 1,662.15 Includes YTIME
PHP PHP PHP PHP
1 2 3 4 5
1.00 50.00 /USD 61.00 /GBP 11.00 /AED
NOTE 8 5 Day 9.0 Hours (Depending on Workload)
192.00 10.77% Based Annually
Total Fee Earning Staff:
NOTE NOTE NOTE NOTE NOTE
BASE CURRENCY PHP USD GBP AED Taken from Official Gazette (05 Apl 2013) VSL Balanced with Month 13 VSL Balanced with Month 13 Historical for 2013 (Declared by Government) Offsetting due to NOTE 4
NOTE 7 5 Day 7.5 Hours (Depending on Workload)
1,782.00 100.00% Based Annually
Employee's YTIME:
DIRECT SALARY COSTS Gross Monthly Salary: Employer SSS Contribution: Employer Pag Ibig Contribution: Employer PhilHealth Contribution:
USE OFFICIAL EXCHANGE RATES AND SOURCE! (WITH DATE)
365.00 100.00%
NOTE 20 First Multiplier Level Based on Basic Monthly Salary
1.18
NOTE 21 Some Staff have Accommodation Provided Discretionally Deducted from Salary
NOTE 22 (Accumulated) Second Multiplier Level Based on Basic Monthly Salary NOTE 23 Adjustment Made to Net Salary for Accommodation
1.39 22.91% Of Gross Salary
OVERHEADS Total Branch Overhead: PHP Aggregated Annual Salaries of NFE Staff: PHP
2,918,845.00 720,000.00
NOTE 24 Put together from OVERHEAD Worksheet NOTE 25 Put together from NFE COSTS Worksheet
TOTAL: PHP 3,638,845.00 TOTAL Basic Fee Earners' Salary Bill: PHP Employee's Proportion of Fee Earners:
312,500.00 8.80%
Employee's Direct Salary Costs: PHP Employee's Accommodation Costs: PHP Employee's Overhead Carriage: PHP
420,275.00 75,600.00 320,218.36
£ £ £
TOTAL: PHP
816,093.36
£
Calculated Charge Back Rate (BT-00) PHP Rounded Rate for Quotations: PHP BT Fee Earning Potential PA: PHP
555.11 560.00 823,284.00
£ £ £
TARIFF LEVEL
ROUNDED LOCAL PESO RATE BASE TARIFF: 5.00% 10.00% 12.50% 15.00% 17.50% 20.00% 25.00% 30.00% 40.00%
PER HOUR
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
560.00 590.00 620.00 630.00 650.00 660.00 680.00 700.00 730.00 790.00
NOTE 26 Basic Salary/Total Basic Salary (Proportional) Apportioned to Salary Level 7,100.00 NOTE 27 Within the RIBA Upper Limit on Old Formula Rule 1,239.34 5,249.48 13,378.58 NOTE 28 (Accumulated) Third Multiplier Level Based on Basic Monthly Salary 9.10 NOTE 29 Base Booking Rate (NO PROFIT INCLUDED) 9.18 NOTE 30 Rounded Figure 13,496.46 Discrepancy due to Rounding POTENTIAL PER ANNUM
PHP 823,284.00 NOTE 31 PHP 867,388.50 PHP 911,493.00 NOTE 32 PHP 926,194.50 PHP 955,597.50 NOTE 33 PHP 970,299.00 PHP 999,702.00 NOTE 34 PHP 1,029,105.00 PHP 1,073,209.50 NOTE 35 PHP 1,161,418.50 NOTE 36
NOTES & COMMENTS
Base Booking Rate (NO PROFIT INCLUDED) MINIMUM PROFIT LEVEL DISCOUNTED PITCH PROFIT LEVEL OPTIMUM PROFIT LEVEL EXCEPTIONAL PROFIT LEVEL EXTRA-TERRITORIAL PROJECTS (DEFAULT)
2.28 2.85 0.57
RESULTANT MULTIPLIER
2.28 2.40 2.51 2.57 2.63 2.68 2.74 2.85 2.97 3.20
RATE
BT-00 BT-05 BT-10 BT-13 BT-15 BT-18 BT-20 BT25 BT-30 BT-40
GBP EQUIV RATE
£ £ £ £ £ £ £ £ £ £
9.18 9.67 10.16 10.33 10.66 10.82 11.15 11.48 11.97 12.95
UK BOOKING PROPORTION RATE PH/UK
£ £ £ £ £ £ £ £ £ £
62.50 65.63 69.06 71.13 73.17 75.30 77.56 81.89 87.07 97.33
14.69% 14.74% 14.72% 14.52% 14.56% 14.37% 14.37% 14.01% 13.74% 13.31%
FACTOR PHx
6.81 6.78 6.79 6.89 6.87 6.96 6.96 7.14 7.28 7.52
14/01/2017
FreshBooks Invoice 0000001
SAMANIEGOMORGAN
Billed To SMA
Date of Issue 01/13/17
Invoice Number 0000001
B9L13 Narcissus Street ANTIPOLO, Rizal 1870 Philippines
Amount Due (PHP)
P3,150.00
Due Date 02/12/17
Description Time for Dante's Inferno
https://my.freshbooks.com/#/invoice/YaMPr62650
Rate
Qty
Line Total
P1,250.00
2.25
P2,812.50
+VAT
Subtotal Tax
2,812.50 337.50
Total Amount Paid
3,150.00 0.00
Amount Due (PHP)
P3,150.00
1/1
SERVICE INVOICE
SAMANIEGOMORGAN
90177-F06
ARCHITECTS & ENGINEERS
Invoice Date: UK Tax Point: Payee TIN: Invoice Number: Our Ref: Your Ref/LPO: VAT Exemption Cert: Payment Due:
28 October 2013 28 October 2013
Estudyo Bahay Tuko B9L13 Narcissus Street Barangay San Luis ANTIPOLO Republic of The Philippines Email: samaniegomorgan@mail.com Tel: 00 63 2 3974613 TIN: 142 85543 33789
90177-F06 90177/RJM/CORP/13102801 13-624492-SA PHBIRVAT13 128 9944 301 28 November 2013
INTERIM FEE ACCOUNT: 90177-F06
Remittance Details
Contracted Works EMPLOYER:
Project:
Network Rail Plc 90 York Road LONDON N1 2NG United Kingdom
SWIFT Transfer to: Branch: Account Number: SWIFT Transfer Code: Account Name: Currency: Advice Comment:
WOKINGHAM RAILWAY STATION Project Documentation
TO:
Contract of Services dated 14 May 2013 Section 2.1.8 Contracted Fees Incurred in the Execution of Work Schedule 1: Schedule of Fees
TO:
Contract of Services dated 14 May 2013 Section 2.1.8 Contracted Fees Incurred in the Execution of Work Schedule 1: Schedule of Fees. Viz., From 29 September 2013 Until 28 October 2013 Timesheet Summary Attached (Dated 28 October 2013) VAT Exempt: Zero Rated VAT: Liability for 12% VAT:
Amount in Words:
Banco de Oro 028: SM MEGA MALL B MANILA 0280925549 PHBDOMXXX SAMANIEGO MORGAN PHP (Philippines Pesos) 90177-F06
PHP 0.00 PHP 90,000.00 PHP 0.00
PHP 90 ,000.00 PHP 0.00 PHP 0.00 PHP 0.00
OUTPUT VAT TOTAL:
PHP 0.00
GRAND TOTAL:
PHP 90,000.00
Ninety Thousand, Philippines Pesos Only (PHP)
SAMANIEGOMORGAN
TERMS: Strictly Net 30 Calendar Days. This Invoice does NOT Constitute an Official Receipt. All Charges, Fees and Commissions incurred for Transfer shall be at the Cost of the Payee. CLAIMS: All and Any Matters, Queries or Claims relating to this Invoice shall be made In Writing, and within Seven Days (Calendar) of Service.
R J Morgan BA(Hons)Arch Dip Arch PRACTICE PRINCIPAL
VALIDITY: This Invoice shall remain Valid in Perpetuity as an Item of Record. CERTIFICATION: The Signatory Certifies that the Invoice is Correct and Just; and that Payment (in either Whole or Part) has NOT been made.
SMA-FEE01.DOCX Page 1 of 2 SAMANIEGOMORGAN (A Partnership) Registered Office Address: B9L13 Narcissus Street Barangay San Luis ANTIPOLO Republic of The Philippines SEC Registration: 2010-05-14225 BIR TIN: 142 85543 33789 BIR PTP: 124 85 22119 84 Please Consider The Environment Before Printing This Document
BILLING SUMMARY
SAMANIEGOMORGAN
CONTRACTED WORKS Invoice Date: UK Tax Point: Payee TIN: Invoice Number: Our Ref: Your Ref/LPO: VAT Exemption Cert: Payment Due:
ARCHITECTS & ENGINEERS
28 October 2013 28 October 2013
Estudyo Bahay Tuko B9L13 Narcissus Street Barangay San Luis ANTIPOLO Republic of The Philippines Email: samaniegomorgan@mail.com Tel: 00 63 2 3974613 TIN: 142 85543 33789
90177-F06 90177/RJM/CORP/13102801 13-624492-SA PHBIRVAT13 128 9944 301 28 November 2013
HISTORIC BILLING AGAINST CONTRACT SUM NET BILLING CONTRACT SUM: ADDITIONS: OMISSIONS: REVISED CONTRACT SUM: INVOICE
90177-F01 90177-F02 90177-F03 90177-F04 90177-F05
DATE
GROSS BILLING
CUMULATIVE PERCENTAGE
RETENTION SUM
PHP 1,000,000.00 PHP 1,000,000.00 NET BILLING
31 May 2013 30 June 2013 29 July 2013 31 August 2013 30 September 2013
PHP 100,000.00 PHP 100,000.00 PHP 100,000.00 PHP 100,000.00 PHP 100,000.00
10% 20% 30% 40% 50%
PHP 10,000.00 PHP 10,000.00 PHP 10,000.00 PHP 10,000.00 PHP 10,000.00
PHP 90,000.00 PHP 90,000.00 PHP 90,000.00 PHP 90,000.00 PHP 90,000.00
BILLED TO DATE: Excluding this Invoice
PHP 500,000.00
50%
PHP 50,000.00
PHP 450,000.00
SMA-FEE01.DOCX Page 2 of 2 SAMANIEGOMORGAN Registered Office Address: B9L13 Narcissus Street Barangay San Luis ANTIPOLO Republic of The Philippines SEC Registration: 2010-05-14225 BIR TIN: 142 85543 33789 Please Consider The Environment Before Printing This Document
JobCOST2: PROJECT FEE COST ANALYSIS
90160-DXB
SAMANIEGOMORGAN Printing: Travel: Expenses: Currency:
B9L13 Narcissus Street Barangay San Luis ANTIPOLO CITY Republic of The Philippines JOB NO
SUB PROJECT
PHASE
TASK
80160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160 90160
DATE
06 May 2011
CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW CW
07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07 07
15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15
CW CW CW CW CW CW CW CW CW CW
07 07 07 07 07 07 07 07 07 07
15 15 15 15 15 15 15 15 15 15
CW
07
15
BALANCE
06 May 2011 06 May 2011 13 May 2011 17 May 2011 18 May 2011 19 May 2011 20 May 2011 21 May 2011 22 May 2011 22 May 2011 22 May 2011 23 May 2011 23 May 2011 24 May 2011 24 May 2011 24 May 2011 24 May 2011 24 May 2011 26 May 2011 27 May 2011 28 May 2011 28 May 2011 29 May 2011 29 May 2011 30 May 2011 30 May 2011 30 May 2011 31 May 2011 31 May 2011 01 Jun 2011 01 Jun 2011 02 Jun 2011 02 Jun 2011 03 Jun 2011 04 Jun 2011 04 Jun 2011 05 Jun 2011 05 Jun 2011 06 Jun 2011 06 Jun 2011 07 Jun 2011 08 Jun 2011 08 Jun 2011 09 Jun 2011 09 Jun 2011 09 Jun 2011 12 Jul 2011 14 Jul 2011
14 Jul 2011
STAFF
GRADE
DISCIPLINE
HOURS
TIME CHARGE
BOOKING RATE
BOOKING REFERENCE
RJM
PO1 Principal
Architecture
4.00 PHP
1,275.00 PHP
5,100.00
RJM RJM RJM RJM RJM RQP RQP RJM RQP RSS RQP RSS RQP RSS RQP RJM RSS RJM RJM ORS RJM RSS RQP RJM RSS RQP RQP RSS RQP RSS RQP RSS RJM ORS
PO1 Principal PO1 Principal PO1 Principal PO1 Principal PO1 Principal AP1 Team Leader AP1 Team Leader PO1 Principal AP1 Team Leader AP2: Senior Technican AP1 Team Leader AP2: Senior Technican AP1 Team Leader AP2: Senior Technican AP1 Team Leader PO1 Principal AP2: Senior Technician PO1 Principal PO1 Principal PO1 Principal PO1 Principal AP2: Senior Technican AP1 Team Leader PO1 Principal AP2: Senior Technican AP1 Team Leader AP1 Team Leader AP2: Senior Technican AP1 Team Leader AP2: Senior Technican AP1 Team Leader AP2: Senior Technican PO1 Principal PO1 Principal
Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Practice Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Practice
2.00 2.00 9.00 9.00 9.00 4.00 3.00 3.00 6.00 6.00 9.00 9.00 9.00 9.00 2.00 0.00 0.00 3.00 3.00 0.00 3.00 8.00 8.00 3.00 8.00 8.00 5.00 8.00 7.50 7.00 7.50 8.00 6.00 1.50
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
1,275.00 1,275.00 1,275.00 1,275.00 1,275.00 850.00 850.00 1,275.00 850.00 665.00 850.00 665.00 850.00 665.00 850.00 1,275.00 1,275.00 1,275.00 665.00 850.00 1,275.00 665.00 850.00 850.00 665.00 850.00 665.00 850.00 665.00 1,275.00 1,275.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
2,550.00 2,550.00 11,475.00 11,475.00 11,475.00 3,400.00 2,550.00 3,825.00 5,100.00 3,990.00 7,650.00 5,985.00 7,650.00 5,985.00 1,700.00 3,825.00 3,825.00 3,825.00 5,320.00 6,800.00 3,825.00 5,320.00 6,800.00 4,250.00 5,320.00 6,375.00 4,655.00 6,375.00 5,320.00 7,650.00 1,912.50
RJM RSS RJM RSS RSS RJM RSS RJM RSS RSS
PO1 Principal AP2: Senior Technican PO1 Principal AP2: Senior Technican AP2: Senior Technican PO1 Principal AP2: Senior Technican PO1 Principal AP2: Senior Technican AP2: Senior Technican
Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture Architecture
4.00 6.00 2.00 6.00 9.00 9.00 6.00 9.00 8.00 0.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
1,275.00 665.00 1,275.00 665.00 665.00 1,275.00 665.00 1,275.00 665.00 665.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
5,100.00 3,990.00 2,550.00 3,990.00 5,985.00 11,475.00 3,990.00 11,475.00 5,320.00 -
ORS
PO1 Principal
Practice
1.00 PHP
1,275.00 PHP
1,275.00
245.50
PHP
Tariff A1 Tariff DT2 Tariff A1 PHP
90160-110506-01 90160-110513-01 90160-110517-01 90160-110518-01 90160-110519-01 90160-110520-02 90160-110521-02 90160-110522-01 90160-110522-03 90160-110522-04 90160-110523-03 90160-110523-04 90160-110524-03 90160-110524-04 90160-110524-02 90160-110524-RP 90160-110524-RP 90160-110526-01 90160-110527-01 90160-110528-RP 90160-110528-01 90160-110529-04 90160-110529-03 90160-110528-01 90160-110529-04 90160-110529-03 90160-110531-03 90160-110531-04 90160-110601-03 90160-110601-04 90160-110602-03 90160-110602-04 90160-110603-01 90160-110604-01 90160-110604-FP 90160-110605-01 90160-110605-04 90160-110606-01 90160-110606-04 90160-110607-04 90160-110608-01 90160-110608-04 90160-110609-01 90160-110609-01 90160-110609-RP 90160-110612-FP 90160-110714-RP
223,907.50
Agreed Fee: PHP Charge Back Rate: Agreement: Document Ref: CHARGEABLE PRINTS PRINTS
NON CHARGEABLE PRINTS
375,000.00 BT-20 20 May 2011 90160-11052001
CHARGEABLE PRINTS EXPENSES
Project: Nilavali White Rock Beach Resort Sri Lanka Issued By: SM-MNL Report Date: Wednesday 04 January 2017
Client: Chinthaka Wedage PO Box 74894 DUBAI United Arab Emirates NON CHARGEABLE EXPENSES
CLIENT DISBURSEMENTS
TOTAL
PHP
-
PHP
-
PHP
-
PHP
-
PHP
-
PHP
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
108.00 65.00 50.00 50.00 50.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
PHP
323.00 PHP
-
PHP
-
PHP
-
PHP
-
PHP
FEES RECEIVED
5,100.00 PHP 2,550.00 2,550.00 11,475.00 11,475.00 11,475.00 3,400.00 2,550.00 3,825.00 5,100.00 3,990.00 7,650.00 5,985.00 7,650.00 5,985.00 1,700.00 108.00 65.00 3,825.00 3,825.00 50.00 3,825.00 5,320.00 6,800.00 3,825.00 5,320.00 6,800.00 4,250.00 5,320.00 6,375.00 4,655.00 6,375.00 5,320.00 7,650.00 1,912.50 5,100.00 3,990.00 2,550.00 3,990.00 5,985.00 11,475.00 3,990.00 11,475.00 5,320.00 50.00 1,325.00
PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
229,330.50 PHP
100,000.00 275,000.00 -
RUNNNING BALANCE PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP PHP
375,000.00 PHP
COMMENTARY
(5,100.00) FRONT END COSTS (5,100.00) (7,650.00) (10,200.00) (21,675.00) (33,150.00) (44,625.00) (48,025.00) (50,575.00) (54,400.00) (59,500.00) (63,490.00) (71,140.00) (77,125.00) (84,775.00) (90,760.00) (92,460.00) (92,568.00) (92,633.00) (96,458.00) (100,283.00) (100,333.00) (104,158.00) (109,478.00) (116,278.00) (120,103.00) (125,423.00) (132,223.00) (136,473.00) (141,793.00) (148,168.00) (152,823.00) (159,198.00) (164,518.00) (172,168.00) (174,080.50) (74,080.50) (79,180.50) (83,170.50) (85,720.50) (89,710.50) (95,695.50) (107,170.50) (111,160.50) (122,635.50) (127,955.50) (128,005.50) 146,994.50 145,669.50
OPENING BALANCE P01-T05 Briefing Meeting P01-T05 Briefing Meeting P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T65 Reprographics P04-T65 Reprographics P04-T15 Time (Charge Back) P04-T15 Time (Charge Back) P04-T65 Reprographics P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) Cleared Payment P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Time (Charge Back) P07-T15 Reprographics Cleared Payment P07-T15 Reprographics
145,669.50 Net Credit
FEE VARIATIONS 90160 BALANCE
CO-01
07
15
13 Jun 2011 04 Jan 2017
Dhs
2,295/-
90160-110613-FV
PHP
23,500.00
PHP
122,169.50 P07-T15 Absorbed in Contracted Works
PHP
122,169.50 Net Credit
PROJECTMASTER: LIVE PROJECTS
13 January 2017 SAMANIEGOMORGAN B9L13 Narcissus Street Barangay San Luis ANTIPOLO CITY Republic of The Philippines
JOB NUMBER 57254 57275 57280 57285
CLIENT
Scott Wilson/DP World Scott Wilson/DP World Scott Wilson/DP World Scott Wilson/DP World
PROJECT
Jebel Ali Port - Phase 2 Khalifa Port - Onshore Buildings Khalifa Port - Offshore Buildings Dubai World - Onshore Terminals
INCEPTION DATE 05 May 2010 10 April 2012 11 June 2015 14 June 2016
WEEKS ACTIVE
GROSS FEE
349 249 83 31
BALANCE: 70284 70285 70286 70287 70288
ACA Alliance ACA Alliance ACA Alliance ACA Alliance ACA Alliance
Rasafa Hospital Baqubah Hospital Diwaniyah Hospital Ramadi Military Camp Rasafa Engineer's Accommodation
05 May 2010 10 April 2010 10 April 2012 11 June 2015 14 June 2016
349 353 249 83 31
BALANCE: 80155 Dante Quines 80156 Gerry Buchanan
Bahay Quines Bahay Buchanan
28 April 2016 01 May 2016
90155 90157 90158 90162 90163
Banaue Hotel Corregidor Hotel Davao Squadron Model Aircraft Club Chan Properties: Davao Villas Bahay Tuko
05 May 2010 10 April 2010 10 April 2012 11 June 2015 14 June 2016
Philippines DOT Philippines DOT Chan Holdings Chan Holdings Ollie Samaniego
BALANCE: 34227 In House 34230 In House 34235 In House
SWIFT Furniture Corporate Graphics QA/QC Standards
05 May 2010 10 April 2010 11 June 2010
PHP PHP PHP PHP
8,500,000.00 30,527,500.00 8,500,000.00 12,550,225.00
PHP
60,077,725.00 PHP
3,015,775.00
PHP PHP PHP PHP PHP
8,500,000.00 30,527,500.00 8,500,000.00 12,550,225.00 12,550,225.00
480,000.00 760,000.00 1,625,550.00 150,225.00 150,225.00
PHP
64,127,950.00 PHP
37 PHP 37 PHP 349 353 249 83 31
TIME LOGGED
-
PHP PHP PHP PHP
PHP PHP PHP PHP PHP
2,686,000.00
PHP PHP
24,500.00 68,500.00
PHP PHP PHP PHP PHP
480,000.00 760,000.00 1,625,550.00 150,225.00 150,225.00
PHP PHP PHP PHP PHP
8,500,000.00 30,527,500.00 8,500,000.00 12,550,225.00 12,550,225.00
PHP
64,127,950.00 PHP
349 PHP 353 PHP 344 PHP
480,000.00 760,000.00 1,625,550.00 150,225.00
2,686,000.00
TIME BILLED 5.65% 2.49% 19.12% 1.20%
PHP PHP PHP PHP
5.02% PHP 5.65% 2.49% 19.12% 1.20% 1.20%
PHP PHP PHP PHP PHP
4.19% PHP PHP PHP 5.65% 2.49% 19.12% 1.20% 1.20%
PHP PHP PHP PHP PHP
4.19% PHP
TIME RECOVERED
450,000.00 540,000.00 1,250,000.00 150,000.00
93.75% 71.05% 76.90% 99.85%
2,390,000.00
450,000.00 540,000.00 1,250,000.00 150,000.00
100.00% 100.00% 100.00% 100.00%
79.25% PHP
2,390,000.00
450,000.00 540,000.00 1,250,000.00 150,000.00 150,000.00
93.75% 71.05% 76.90% 99.85% 99.85%
2,090,000.00
77.81% PHP
-
PHP PHP PHP PHP
AGEING GERIATRIC
PHP PHP PHP PHP PHP
PHP PHP
450,000.00 540,000.00 1,250,000.00 150,000.00 150,000.00
93.75% 71.05% 76.90% 99.85% 99.85%
PHP PHP PHP PHP PHP
2,090,000.00
77.81% PHP
AGEING 1-2 MONTHS
AGEING <1 MONTH
PRINTING D&E BILLED
PRINTING D&E RECOVERED
PHP PHP PHP PHP
-
PHP PHP PHP PHP
-
PHP PHP PHP PHP
-
PHP PHP PHP PHP
50,000.00 10,000.00 27,500.00 -
100.00% PHP
-
PHP
-
PHP
-
PHP
-
PHP
87,500.00 PHP
87,500.00
450,000.00 540,000.00 1,250,000.00 150,000.00 150,000.00
100.00% 100.00% 100.00% 100.00% 100.00%
-
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
50,000.00 10,000.00 27,500.00 -
50,000.00 10,000.00 27,500.00 -
2,090,000.00
100.00% PHP
-
PHP
-
PHP
-
PHP
-
PHP
37,500.00 PHP
PHP PHP
-
PHP PHP
-
PHP PHP
-
PHP PHP
-
PHP PHP
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
-
PHP PHP PHP PHP PHP
50,000.00 10,000.00 27,500.00 -
37,500.00 PHP
PHP PHP PHP PHP PHP
450,000.00 540,000.00 1,250,000.00 150,000.00 150,000.00
100.00% 100.00% 100.00% 100.00% 100.00%
2,090,000.00
100.00% PHP
-
PHP
-
PHP
-
PHP
-
PHP
-
PHP PHP PHP PHP
COMMENTS
-
-
PHP PHP PHP PHP
AGEING 2-3 MONTHS
PHP PHP PHP PHP PHP
PHP PHP PHP PHP PHP PHP PHP
50,000.00 10,000.00 27,500.00 -
37,500.00 50,000.00 10,000.00 27,500.00 37,500.00
250,000.00 PHP 100,000.00 PHP 50,000.00 PHP
125,000.00 45,000.00 10,000.00
50.00% PHP 45.00% PHP 20.00% PHP
125,000.00 45,000.00 10,000.00
100.00% PHP 100.00% PHP 100.00% PHP
125,000.00 45,000.00 10,000.00
100.00% PHP 100.00% PHP 100.00% PHP
-
PHP PHP PHP
-
PHP PHP PHP
-
PHP PHP PHP
-
PHP PHP PHP
-
PHP PHP PHP
-
-
PHP
-
BALANCE:
PHP
150,000.00 PHP
55,000.00
36.67% PHP
55,000.00
100.00% PHP
55,000.00
100.00% PHP
-
PHP
-
PHP
-
PHP
-
PHP
TOTAL:
PHP
188,483,625.00 PHP
8,442,775.00
PHP
6,625,000.00
PHP
6,625,000.00
PHP
-
PHP
-
PHP
-
PHP
-
PHP
162,500.00 PHP
162,500.00
Non Fee Earning Non Fee Earning
SALARIED STAFF ONLY
WEEKLY STUDIO TIMESHEET
CURRENT LIVE PROJECTS: DXB
OVERHEAD COST CODES
77254 77275 77280 77285
Jebel Ali Port - Phase 2 Khalifa Port - Onshore Buildings Khalifa Port - Offshore Buildings Dubai World - Onshore Terminals
CURRENT LIVE PROJECTS: MNL 90164 90166 90168 90169 90204
Preloaded by Practice Manager Form SM-HR-2040 To be Attached Form SM-HR-2042 To be Attached Form SM-HR-2043 To be Attached
31010
Training & Education
Form SM-TR-2010 To be Attached
Library & Practice Resources CAD & Computer Administration
ARRIVE: DEPART: HRS: ARRIVE: DEPART: HRS:
To be Authorised by Associate/Team Leader To be Authorised by Associate/Team Leader
9:00 14:30 5:30 17:00 18:00 1:00
8:00 12:30 4:30 13:30 18:00 4:30
01 Mar 2016
02 Mar 2016
9:00 13:00 4:00 14:00 17:30 3:30
03 Mar 2016
9:00 13:00 4:00 14:00 17:30 3:30
8:00 13:00 5:00 14:00 18:00 4:00
04 Mar 2016
05 Mar 2016
8:00 13:00 5:00 14:00 18:30 4:30
TOTAL
SUB PROJECTS Contracted Works 1: Client Change Order 1 2: Client Change Order 2 3: Client Change Order 3
10:00 13:15 3:15 13:45 16:00 2:15 20:15 20:45 0:30
HRS:
34220
Technical Memoranda
To be Authorised by Associate/Team Leader
35010 35020 35030
Marketing & Promotions General Office Management Recruitment & HR
To be Logged by Associate/Team Leaders Only To be Logged by Associate/Team Leaders Only To be Logged by Associate/Team Leaders Only
NUMBER
SWIFT Furniture Corporate Graphics Corporate Standards
PROJECT
SUB PROJECT
PHASE
TASK
90204 90204
Camella Homes Camella Homes
Contracted Works Contracted Works
04 04
15 05
50171
Clock Chambers
Contracted Works
05
20
Time Logged to NFE Projects (80K Series) is to be Authorised by Associates and Principals. Specific Project Numbers can be obtained from the Practice Manager.
80157 80157
Dante's Inferno (Sampoloc) Dante's Inferno (Sampoloc)
Pipeline Works Pipeline Works
01 01
05 05
35001
Practice Administration
Weekly Bookkeeping
BLOCKED PROJECTS BSA Tower (Fees Unpaid)
ATTENDANCE DAILY TOTAL:
6:30
9:00
7:30
7:30
9:00
9:30
6:00
55:00
CREDIT/DEBIT: To Align with Flexitime Sheet
6:30
1:30
-0:00
-0:00
1:30
2:00
6:00
17:30
MEMORANDUM
Enter the SATURDAY Week Ending Date CELL R3 (This Automatically Updates the Weekdays in ALL SHEETS) Determine Project Number (Based on Region, Department and Number) Enter Sub-Project, Phase and Task Numbers (These Must Be Filled-In) Enter ACTUAL Hours Spent on Each Task (15 Minute Minimum Billing Interval ENTERED AS HH:MM) Overtime to be Recorded on Authorised Overtime Timesheet Check Automatic Summary - It is Intended to Make YOU Check! Update Timesheets Daily (With Team Secretary at POD Meeting) Complete Timesheet Each Week and Pass to your Team Leader or Associate by 09.00 Each Monday Timesheet to be Submitted as XLSX PDF & Signed Hardcopy Formats (Document Control Responsibility) ALL DATES ENTERED AS DD/MM/YYYY ALL TIMES ENTERED AS HH:MM (24 Hour Clock)
9.00 9.00 MONDAY D2
BASEPLAN MODEL (Et Seq Generated); GA ST DRAWINGS Base Drawings 2B3B Proposals 3:15 Telephone Conference Call ST 3:00 ST PRESENTATION DOCUMENT; 3D MODELST 2:45 ST CLIENT MEETING: 10:30 Sampaloc with Client ST 2:45 Meeting Notes & Minutes ST 1:00 ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST ST 2:45 Daily Total: Daily Total:
1 2 3 4 5 6 7 8 9 10
6.00 30.00 6.50 0.50 SUNDAY D1
ST YT
6:30 6:30
9:00 1:30
7.00 30.00 7.50 0.50 TUESDAY D3
7.00 30.00 7.50 0.50 WEDNESDAY D4
9.00 9.00 THURSDAY D5
9.00 30.00 9.50 0.50 FRIDAY D6
6.00 6.00 SATURDAY D7
2.00 TOTAL
4:30
29:15 07:30
3:00
05:45
7:30
9:00
9:30
02:45 01:00
7:30
7:30
9:00 1:30
6:00
08:45
6:00 6:00
55:00 17:30
RECORDABLE HOURS TOTAL:
55:00
YT:ST
31.82%
9:30 2:00
Saturday 05 March 2016 Descriptors
ARRIVE: DEPART:
NFE PROJECTS
90196
29 Feb 2016
ARRIVE: DEPART:
Clock Chambers
INHOUSE PROJECTS & DOCUMENTATION 86227 86230 86235
Public Holidays & Reduced Hours Incapacity Leave Annual Leave Special Leave
28 Feb 2016
HRS:
CURRENT LIVE PROJECTS: WVX 50171
ATTENDANCE LOG
30210 30220 30230 30240
32010 32020
Banaue Hotel Corregidor Hotel Davao Squadron Model Aircraft Club Chan Properties: Davao Villas Camella Homes Homes
Bob MORGAN
PHASES 01: Inception 02: Outline Studies 03: Feasibility 04: Sketch Design 05: Schematic Design 06: Design Development 07: Documentation 08: Tender 09: Contract Administration 10: Post Occupancy 50: Reimbursables TASKS 05: Meetings 10: Reports 15: Drawings 20: Presentations 25: Specifications 30: Model Making & 3D Visualisations 35: Site Visits 40: Scheduling 45: Authorities & Statutory Undertakers 50: Consultant Coordination 55: Rework (Chargeable) 60: Rework (Non-Chargeable) 65: Administration (PROJECT RELATED) 70: Review 90: Especially Allocated
Employee Signature:
Approver's Signature:
INTERNAL DOCUMENT
Office:
SM-PM-2045-14030801
Week Number:
MNL: Antipolo Studio 2016/09
Bob MORGAN PROJECT NUMBER
Saturday 05 March 2016 PROJECT
SUB PROJECT
PHASE
TASK
90204
Camella Homes
Contracted Works
04
15
90204
Camella Homes
Contracted Works
04
05
MEMORANDUM
BASEPLAN MODEL (Et Seq Generated); GA DRAWINGS Base Drawings 2B3B Proposals Telephone Conference Call
SUN 28
MON 29 3:15 3:00
TUE 01
WED 02
7:30
THU 03 9:00
4:30
FRI 04 9:30
SAT 05
TOTAL
29:15 7:30