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Thanks for stopping by. As a Virtual Bookkeeper, I help businesses stay organized, accurate, and financially confident. Please pick a suitable time.
As the Virtual Bookkeeper for JiduffKelv Digital World (Mock Company), I go beyond preparing financial statements — I interpret the numbers to reveal meaningful insights that guide better business decisions.
This section showcases my ability to analyze financial data inside Xero, evaluate performance through key performance indicators (KPIs), identify trends, forecast future outcomes, and translate raw figures into actionable business intelligence.
Through these analyses, I demonstrate real-world bookkeeping skills, analytical thinking, and the ability to communicate financial performance in a way that supports strategic planning, cost control, and business growth.
As a virtual bookkeeper, these are the standard reports I prepare, analyze, and interpret for clients.
Financial Reports: Reports that show the financial performance and position of the business.
✔ Profit & Loss (Income Statement)
Tracks business performance over time
Identifies revenue trends and major expense drivers
Evaluates profitability and operational efficiency
✔ Balance Sheet
Shows the financial health of the business
Analyzes liquidity, solvency, and asset structure
Supports investor or loan readiness
✔ Cash Flow Statement
Monitors inflow/outflow of cash
Helps prevent cash shortages
Essential for budgeting and forecasting
✔ Aged Receivables & Payables
Tracks overdue customer and vendor invoices
Helps strengthen cash management
Improves collection and payment cycles
✔ Inventory Report
Tracks stock quantities, valuation, and movement
Identifies fast/slow-moving items
Supports accurate COGS and profitability
✔ Fixed Asset Report
Shows asset cost, accumulated depreciation, and NBV
Monitors asset lifecycle and depreciation schedules
Required for year-end adjustments and compliance
✔ Project Summary Report
Tracks project income, expenses, and performance
Assesses project profitability
Helps guide pricing and resource decisions
Accounting Reports: Reports used for internal control, audit trail, reconciliation, compliance, and detailed accounting processes.
✔ Trial Balance
Ensures ledger accuracy
Detects mispostings and discrepancies
Foundation for producing financial statements
✔ Journal Report
Lists all manual journal entries
Supports adjustment verification
Enhances audit readiness
✔ General Ledger Summary
Full breakdown of activity in each account
Supports transaction tracing and reconciliations
Critical for audits and financial reviews
✔ Tax Reconciliation Report
Ensures tax outputs match actual tax liability
Detects tax differences from sales/purchases
Supports compliance and accurate tax filing
✔ Bank Reconciliation Summary
Compares system balances with bank statements
Identifies missing, duplicated, or erroneous entries
Ensures accuracy of cash accounts
✔ Audit Trail / Activity Log
Tracks all user actions and changes made in the system
Helps detect errors, fraud, or unauthorized modifications
Provides accountability and transparency in bookkeeping
Including: Sales by Item / Product Performance, Budget vs Actual, Account Transactions (key GL accounts), Fixed Asset Depreciation Schedule, Payroll Summary, Payable/Receivable Invoice Detail Reports, Supplier & Customer Activity Reports, Expense Claims Report, Purchase by Item Report, Cash Summary Report, Equity Statement.
Key Performance Indicators (KPIs) I Track for Clients
These KPIs help clients understand the true performance of their business:
Financial Health KPIs
Gross Profit Margin: Measures product/service profitability
Net Profit Margin: Helps assess long-term sustainability
Operating Margin: Helps identify operational efficiency
Working Capital: Determines ability to meet short-term obligations
Cash Flow & Liquidity KPIs
Current Ratio: Can the business pay short-term debts?
Quick Ratio: Liquidity without inventory
Cash Conversion Cycle: How fast a business turns investment into cash
Burn Rate: For startups: how fast cash is being spent
Sales & Revenue KPIs
Revenue Growth Rate: How fast the business is growing.
Customer Lifetime Value (CLV): Total revenue from one customer.
Customer Acquisition Cost (CAC): Cost of getting one paying customer.
Average Revenue Per User (ARPU): Measures value per customer.
Inventory KPIs
Inventory Turnover Ratio: How fast inventory is sold
Days Inventory Outstanding (DIO): Days items stay before being sold
Stock-Out Rate: How often items go out of stock
Dead Stock Percentage: Inventory that isn’t selling
Expense & Cost KPIs
Expense-to-Revenue Ratio: Shows how much of your revenue is used to cover expenses
COGS Ratio (COGS%): Percentage of revenue spent on producing goods sold
Operating Expense Ratio: Measures how much operating costs take from total revenue
Advanced Analysis I Provide
Trend Analysis: Monthly/quarterly performance — detects growth, decline, or unusual movements
Variance Analysis: Actual vs Budget — highlights overspending and cost leakages
Break-Even Analysis: Shows minimum sales needed to avoid loss
Profitability by Product / Customer / Project: Measures profit by segment — great for Xero Projects
Forecasting — Revenue: Projected future sales based on trends and assumptions
Forecasting — Expense: Predicted future costs to plan budgets and cash needs
Forecasting — Cash Flow: Predicts future cash inflows/outflows to prevent shortfalls
How I Present Reports to Clients
✔Monthly Financial Report Pack
Executive Summary: Clear overview of business performance
Key KPIs at a Glance: Quick snapshot of the most important metrics
Profit & Loss (With Commentary): What changed and why
Balance Sheet (With Insights): Financial health and stability review
Cash Flow Analysis: Monthly inflow/outflow and liquidity position
Aged Receivables & Payables: Who owes, who is owed, and due dates
Inventory Performance: Stock movement, COGS impact, and valuation
Recommendations: Practical steps to improve performance
✔ Visual Dashboards
Graphs: Revenue, expenses, cash flow, and growth trends
KPI Tiles: Quick highlights of margins, liquidity, and efficiency
Trend Charts: Month-by-month patterns and movement
Cash Flow Forecast: Predicts future cash strength or shortfalls
✔ Strategic Recommendations
Reduce Expenses: Identify and cut unnecessary or inflated costs
Improve Cash Flow: Faster collections, better payment terms
Increase Profitability: Pricing, cost control, product/service analysis
Strengthen Internal Controls: Better processes, documentation, and accuracy.
Xero Advisor Certified
Xero Migration Specialist
A visual showcase of how i analyze business performance and track KPIs using my Mock Company in Xero.
Part 1: Core Financial Reports Analysis And KPIs
Core Financial Reports Analysis involves reviewing the Balance Sheet, Income Statement, Cash Flow Statement, and supporting reports to understand a business’s financial health. It helps evaluate liquidity, profitability, cash flow strength, asset efficiency, and overall performance.
Key Performance Indicators (KPIs) are essential financial metrics—such as Gross Profit Margin, Net Profit Margin, Current Ratio, Debt-to-Equity Ratio, Days Sales Outstanding, Inventory Turnover, and Cash Conversion Cycle—that measure how well a business is performing.
This provide insights for decision-making, highlight risks, identify growth opportunities, and ensure the business remains financially stable and efficient.
Budget Variance
This is the difference between the budgeted (planned) amounts and the actual amounts spent or earned over a specific period. It helps businesses identify areas of over- or under-spending and supports better financial planning and control.
Budget Variance KPIs (Actual vs Budget):
KPI Actual Budget
Gross % 34.05% 58.02%
Net % 28.20% 43.42%
OpEx Ratio 6.01% 15.75%
Op. Margin 28.03% 42.26%
EBITDA ₦20,046,526.82 ₦5,067,066.63
Key Takeaways:
Revenue exceeded budget (+555.18%), driven by product sales, which offset weaker service and project performance.
Operating expenses overshot the budget (+150.1%), mainly from events, professional fees, and rent.
Despite expense overruns, gross and net margins remain strong, and EBITDA demonstrates healthy profitability.
KPIs highlight areas for tighter expense control and margin monitoring.
Commentary Snippet:
Budget Variance KPIs show revenue +555.18% above budget, while operating expenses were +150.1% over. Despite this, net margin and EBITDA remain strong, indicating effective revenue generation but emphasizing the need for better expense control.
Budget Variance Analysis
Period: 10 months ended 31 March 2026 (Accrual Basis)
Overview:
Total Trading Income: ₦69,448,598.62 (Actual) vs ₦10,600.000 (Budget) → +555.18% over budget.
Total Operating Expenses: ₦4,176,120.90 (Actual) vs ₦1,670,500.00 (Budget) → +150.07% over budget.
Net Profit: ₦19,582,460.16 (Actual) vs ₦4,603,000 (Budget) → +325.43% over budget.
This shows the company performed significantly above revenue expectations, but some expenses were also much higher than planned.
Key Takeaways:
Strong revenue driven by product sales, offsetting weaker service and project income
COGS increased due to higher sales — margin monitoring advised
Operating expenses overshot budget, mainly from events, professional fees, and rent
Net profit remained above budget, showing strong income generation despite expense overruns
Commentary Snippet:
The Budget Variance shows revenue +555.18% above budget, driven by product sales. Operating expenses were +150.1% over budget, yet net profit remained+325.43% above expectations, highlighting strong performance and the need for better expense control.
Profit and Loss Statement (P&L)
The Profit and Loss Statement shows a company’s financial performance over a period, detailing revenues, costs, and expenses to calculate net profit or loss. It helps assess profitability, cost management, and operational efficiency.
Profit & Loss KPIs (Current Month vs 4-Month Average):
KPI Nov 2025 Previous 4 Months
Gross % 31.24% 37.75%
Net % 27.19% 13.46%
OpEx Ratio 4.05% 24.76%
Op. Margin 27.19% 12.98%
EBITDA ₦15,267,826.63 ₦711,733.56
Key Takeaways:
Profitability remains strong despite minor variations in COGS and operating costs.
Operating efficiency is consistent, and revenue generation continues to support robust margins.
KPIs confirm that product sales are the primary driver of performance, while expenses are manageable.
Commentary Snippet:
November 2025 KPIs show strong gross and net margins, with operating expenses well-controlled relative to revenue. EBITDA remains robust, demonstrating consistent profitability compared to the previous 4 months.
Profit & Loss Analysis (Current vs Previous 4 Months)
Period: Month ended 30 November 2025 (Accrual Basis)
Comparison: Previous 4 months
Overview:
Trading Income: ₦56,151,432.58 vs ₦60,570,924.21 → strong revenue, driven by product sales
Cost of Sales: ₦38,607,683.28 vs ₦41,358,916.92 → aligns with sales volume
Gross Profit: ₦17,543,749.30 vs ₦19,212,007.29 → healthy profitability
Operating Expenses: ₦2,275,922.67 vs ₦3,370,313.76 → largely due to events, staff, and depreciation
Net Profit: ₦15,267,826.63 vs ₦15,862,893.53 → consistent profitability
The business generated strong revenue for the current month, with gross profit remaining healthy. While some expenses were slightly lower than previous months, net profit is slightly below the 4-month average.
Key Takeaways:
Product sales carried revenue growth; service/project income is minor
Gross profit remains strong despite high COGS
Operating expenses increased due to extraordinary items
Net profit remains stable, showing strong top-line performance
Commentary Snippet:
November 2025 P&L shows robust revenue driven by product sales. Despite higher operating expenses, net profit remains strong, demonstrating consistent performance compared to the previous 4 months.
Balance Sheet
The Balance Sheet provides a snapshot of a company’s financial position at a specific point in time. It shows what the business owns (assets), owes (liabilities), and the owner’s equity. This report is essential for understanding the company’s liquidity, solvency, and overall financial health.
Balance Sheet KPIs (Calculated)
Current Ratio:
Ability to cover short-term liabilities with short-term assets. That is how easily the business can pay short-term obligations.
This is the #1 liquidity metric every bookkeeper must watch.
Formula: Current Assets ÷ Current Liabilities
₦428,268,389.57 ÷ ₦3,787,694.34 ≈ 113.3
Interpretation: Extremely strong liquidity — highly solvent.
Quick Ratio (Acid-Test Ratio) :
Excludes Inventory to measure true immediate liquidity. Stricter liquidity check — excludes inventory. Shows true short-term solvency.
Formula: (Current Assets−Inventory) ÷ Current Liabilities.
(₦429,288,389.57 - ₦426,862,639.57) ÷ ₦3,787,694.34 ≈ 0.64
(N:B Quick Assets = Current Assets − Inventory )
Interpretation: Low quick ratio due to very high inventory levels (the business is inventory-heavy).
Cash Ratio:
Pure cash coverage.
Shows how much of liabilities can be paid immediately using cash only. Strictest liquidity measure.
Formula: Cash & Cash Equivalents ÷ Current Liabilities
₦127,530,900.83 ÷ ₦3,787,694.34 ≈33.7
Interpretation: Exceptional — massive cash reserves compared to liabilities.
Working Capital:
How much short-term liquidity remains after paying current liabilities. Short-term financial health in absolute numbers.
Formula: Current Assets − Current Liabilities
₦428,268,389.57 − ₦3,787,694.34 = ₦424,480,695.23
Interpretation: Very strong — high ability to run operations, invest, or absorb shocks.
Debt-to-Equity Ratio:
Measures financial leverage and business risk. Extremely important for investors, lenders, and risk assessment.
Formula: Total Liabilities ÷ Total Equity
₦3,787,694.34 ÷ ₦553,866,717.26 ≈ 0.0068
Interpretation: Extremely low leverage — business is nearly debt-free.
Equity Ratio:
Shows long-term stability. It measures the proportion of total assets financed by equity. That is how much of the company is financed by the owners.
Formula: Total Equity ÷ Total Assets
₦553,866,717.26 ÷ ₦428,268,389.57
Interpretation: Highly capitalized business — minimal reliance on borrowing.
Liabilities-to-Assets Ratio:
Opposite of Equity Ratio — how much of assets are financed by debt. Used heavily in risk analysis. Indicates the proportion of assets financed through liabilities.
Formula: Total Liabilities ÷ Total Assets
₦3,787,694.34 ÷ ₦428,268,389.57
Interpretation: Very safe — assets are almost entirely self-financed.
Balance Sheet Analysis
Period: As at 31 March 2026 (Accrual Basis)
Overview
Total Assets: ₦557,654,366.60
Total Liabilities: ₦3,787,649.34
Net Assets / Equity: ₦553,866,717.26
The Balance Sheet shows a strong financial position, driven by high cash balances, significant inventory levels, and minimal liabilities. Equity represents nearly 99% of total funding, demonstrating a highly solvent and owner-funded business structure.
Key Breakdown
1. Assets
Total Assets: ₦557,654,366.60
Bank Balances: ₦127,530,900.83
Strong liquidity, suitable for operations and reinvestment.Current Assets: ₦428,268,389.57
Inventory: ₦426,862,639.57 (major asset driver)
Trade debtors: ₦1,613,000.00
Deposits with suppliers: ₦40,000 (prepaid operational value)
Fixed Assets (Net Book Value): ₦476,923.80
Assets include office equipment, computers, furniture, and motor vehicles, reduced by accumulated depreciation.Intangible Assets: ₦1,312,000
Software licenses, website development costs, and goodwill.
Interpretation:
The business is inventory-heavy and maintains exceptionally strong cash reserves.
2. Liabilities
Total Liabilities: ₦3,787,649.34
Current Liabilities: ₦3,787,649.34
Includes VAT payable, payroll payable, unearned revenue, and minor accruals.Non-Current Liabilities: ₦0
Business has no long-term debt.
Interpretation:
Liabilities are extremely low relative to assets. Debt risk is almost non-existent.
3. Equity
Total Equity: ₦553,866,717.26
Owner’s Capital: ₦105,000,000
Retained Earnings: ₦8,362,896.50
Inventory Opening Balance Equity: ₦437,280,577.68
Owner’s Drawings: (₦100,000)
Owner’s Capital Injection: ₦4,000,000
Interpretation:
The business is predominantly funded by owner equity and inventory equity adjustments, showing strong internal capitalization.
Key Takeaways
Very strong liquidity — ₦127,530,900.83 cash with minimal short-term obligations.
Low financial risk — virtually no debt; liabilities represent less than 1% of assets.
Inventory-driven business — inventory represents 77% of all assets.
Healthy retained earnings — consistent profitability feeding owner equity.
Strong solvency position — equity covers 99% of the business’s total assets.
Commentary Snippet
The Balance Sheet as of 31 March 2026 shows a highly liquid and solvent business with ₦557,654,366.60 in assets and only ₦3,787,649.34 in liabilities. Cash and inventory remain major strength points, while equity funding dominates the capital structure. With virtually no long-term debt, the business maintains strong financial stability and operational flexibility.
Cash Flow Statement
A Cash Flow Statement shows how money moves in and out of a business over a specific period. It focuses on actual cash activity, not profits, helping to reveal the company’s true liquidity and ability to operate.
Cash Flow Statements KPIs (Calculated)
Net Cash From Operating Activities (CFO):
The most important KPI. Shows whether the company's core business is generating cash. That is the cash a company generates or uses from its core business operations, excluding investing and financing activities. It reflects the company’s ability to generate cash from day-to-day business.
From statement = ₦8,982,809.11
Interpretation: This is the core cash generated from the business main business operations.
Free Cash Flow (FCF):
Shows cash available to owners after maintaining the business. The cash a company generates from operations after deducting capital expenditures, available for distribution to investors, debt repayment, or reinvestment. Crucial for valuation.
Formula: Operating Cash Flow – Capital Expenditures
FCF = 8,982,809.11 – ₦0 = ₦8,98 2,809.11
N:B {(Capital Expenditure (CapEx) from the statement = ₦0 (no PPE purchases recorded)}
Interpretation: Very strong — all operating cash is free to use.
Net Cash Flow (Increase in Cash):
Shows overall cash movement for the period. The net amount of cash a business gains over a period. A positive value indicates an increase in cash.
From statement = ₦127,530,900.83
Net Cash Flow Breakdown (%)
Category Amount % of Total Net Cash Flow
CFO ₦8,982,809.11 7.04%
CFI ₦8,356,091.72 6.56%
CFF ₦110,192,000 86.40%
Interpretation: The business ended the period with more cash coming in than going out. This is generally a sign of good liquidity and financial stability.
Operating Cash Flow Ratio:
A liquidity ratio that measures a company’s ability to pay its short-term liabilities using cash generated from operating activities. Measures whether operations generate enough cash to cover short-term obligations.
Formula: Cash From Operating Activities (CFO ) ÷ Current Liabilities
CFO = ₦8,982,809.11
Current Liabilities from Balance Sheet = ₦3,787,584.34
Opt Cash Flow Ratio = 8,982,809.11 ÷ 3,787,584.34 = 2.37
Interpretation: Business generate 2.37x more cash from operations than needed to cover short-term liabilities. Excellent liquidity.
Operating Cash Flow Margin
Shows what percentage of revenue turns into operating cash. A profitability metric that shows how much cash a company generates from operations for every dollar of sales. How efficiently the business converts sales into operating cash.
Formula: Cash From Operating Activities (CFO ) ÷ Revenue.
CFO = ₦8,982,809.11
Revenue from P&L : ₦69,448,598.62
Opt Cash Flow Margin = 8,982,809.11 ÷ 69,448,598.62 = 12.93%
Interpretation: This means 12.93% of revenue converts into pure cash.
Cash Flow Statement Analysis
Period: 1 June 2025 – 30 March 2026 (Accrual Basis)
Overview
During this 10-month period, the company generated strong positive cash flow, ending with ₦127,530,900.83 in cash and cash equivalents. The main driver was major financing inflows, supported by positive operational performance.
Operating Cash Flow
Net Cash from Operations: ₦8,982,809.11
This indicates the core business operations generated healthy cash, driven primarily by customer collections. Payments to suppliers and employees remained within manageable levels, showing well-controlled operating activities.
Investing Cash Flow
Net Cash from Investing Activities: ₦8,356,091.72
This positive inflow suggests the company:
Sold some fixed assets, and
Possibly received asset-related refunds or adjustments.
Positive investing cash flow is uncommon, and usually indicates the business is disposing assets or restructuring its investment base.
Financing Cash Flow
Net Cash from Financing Activities: ₦110,192,000.00
A massive injection of financing cash — likely from owner contributions, loans, or capital injections — represents the primary source of liquidity growth for the period.
Net Cash Movement
Total Net Cash Flow: ₦127,530,900.83
Ending Cash Balance: ₦127,530,900.83
The company ends in a strong cash position, significantly boosted by financing activities.
Key Takeaways
Strong operating cash generation, proving the business model is working.
Unusually high financing inflows indicate reliance on external funding or owner support.
Positive investing cash flow suggests disposal or restructuring of fixed assets.
The business is highly liquid at the end of the period, with ample cash for growth, expenses, or reinvestment.
Commentary Snippet:
The Cash Flow Statement shows a solid operational performance with ₦8,982,809.11 generated from core business activities. Significant financing inflows totaling ₦110,192,000.00 strengthened the company’s liquidity, resulting in a closing cash balance of ₦127,530,900.83 . Positive investing cash flow indicates asset restructuring. Overall, the business is in a strong cash position with high liquidity and operational stability.
Equity / Capital Report
Shows how the owner’s wealth in the business has changed over time by tracking capital invested, profits retained, and any withdrawals made. It explains the movements in owner’s capital and retained earnings, helping you understand how much of the business is financed by the owner and how equity grows or reduces during the period.
KPIs Owner/Equity Focused
Equity Ratio (Equity ÷ Total Assets): 99.32% — nearly all assets financed by equity.
Owner’s Capital % of Equity: 18.96% — portion of equity provided as capital.
Retained Earnings % of Equity: 1.51% — relatively small retained profits recorded.
Inventory-Equity % of Equity: 78.95% — inventory represents the dominant equity component.
Return on Equity (ROE) — using Net Profit ÷ Total Equity:
ROE = ₦675,980.94 ÷ ₦553,866,671.26 ≈ 0.12%— current period profit yield on equity.Drawings % of Equity: (0.02%) — minimal owner withdrawals this period.
Recommendations:
Improve inventory turnover — convert inventory to cash faster to reduce equity tied in stock and improve quick liquidity.
Consider a dividend / retained earnings policy if management wants to balance retained earnings growth vs owner withdrawals.
Track ROE trend — increasing ROE over time indicates improving capital efficiency; set a target (e.g., 8–12% depending on sector).
Document inventory valuation & reconcile regularly — because inventory drives equity, valuation accuracy is critical for true owner wealth reporting.
Plan capital use — consider using excess cash (if any) for working capital optimisation or strategic investments rather than letting it sit as inventory.
Equity / Owner’s Capital Report Analysis
Period: As at 31 March 2026 (Accrual Basis)
Overview
Total Equity (Net Assets): ₦553,866,717.26
This statement summarizes changes and composition of owner funding and retained earnings. The business is overwhelmingly owner-funded with a large inventory-equity component and small liability exposure. Recent movements include a capital injection and retained earnings from operations.
Statement:
(Values shown, and percent of total equity)
Owner’s Capital: ₦105,000,000 — 18.96% of equity
Retained Earnings: ₦8,362,896.50— 1.51% of equity
Inventory Opening Balance Equity: ₦437,280,577.68 — 78.95% of equity
Owner’s Drawings: (₦100,000) — (0.02%) of equity
Owner’s Capital Injection (period): ₦4,000,000 — 0.72% of equity
Net Profit (period): ₦676,756.92 — contributes to retained earnings and overall equity (used below for ROE)
Total: ₦553,866,717.26 — 100%
Note: “Inventory Opening Balance Equity” shows the equity value tied to opening stock — this is a significant part of owner funding in this business.
Key Takeaways:
Highly owner-capitalized: Equity funds virtually all assets; the company carries almost no long-term debt.
Inventory-heavy equity: Nearly 79% of equity is tied up in inventory — this is a strategic asset but also a liquidity risk if turnover slows.
Profit contribution to equity is positive but extremely small : ROE is 0.12%, meaning the business generated ₦0.12 return for every ₦100 of equity invested. This is a very low return, indicating that although equity is strong, profitability is weak relative to the capital invested.
Low retained earnings vs capital: Retained earnings are small relative to capital and inventory equity; much of the equity base is funded by owner capital and inventory adjustments.
Small drawings and a recent capital injection: Owner drawings are minimal and a ₦4,000,000.00 injection strengthens the capital base.
Commentary Snippet:
The Statement of Owner’s Equity at 31 March 2026 shows a highly capitalized business with total equity of ₦553,866,717.26, largely supported by owner capital and inventory values. Net profit for the period was modest at ₦676,756.92, translating into a very low ROE of approximately 0.12%. This indicates that although the business is financially stable with a strong equity base, profitability relative to invested capital remains weak. Key priorities include improving operational efficiency, increasing profit margins, and enhancing inventory turnover to drive stronger returns on equity.
Aged Receivables Report
The Aged Receivables Report shows all outstanding customer invoices grouped by how long they have been unpaid — usually in aging buckets such as Current, < 1 Month, 1 Month, 2 Month, 3 Month, 4 Month and Older.
This report helps a bookkeeper or accountant assess customer payment behavior, identify late payers, evaluate credit risk, and improve cash flow forecasting. It is one of the most important operational finance reports because it directly impacts liquidity, working capital, and collection performance.
You use it to:
Track overdue invoices
Identify customers who consistently pay late
Follow up on long-outstanding balances
Reduce bad debts
Improve cash flow management
KPIs for Aged Receivables
Aging Breakdown:
As at 31 March 2026
Total Receivables: ₦1,613,000.00
3 Months: ₦422,500 → 26.19%
4 Months: ₦1,055,500 → 65.44%
Older: ₦135,000 → 8.37%
0% is Current or 1–2 months! Everything is late.
1. Average Days Outstanding (ADO / DSO estimate)
Since all balances are 3 months+, 4 months, or older, DSO is extremely high.
Approx. estimation:
DSO ≈ (3 × 422,500) + (4 × 1,055,500) + (6 × 135,000) ÷ 1,613,000
= (1,267,500 + 4,222,000 + 810,000) ÷ 1,613,000
≈ 6,299,500 ÷ 1,613,000
≈ 3.9 months ≈ 117 days
2. % of Receivables Past Due
All are past due:
✔ 100% Past Due
3. % of Receivables Over 90 Days
4 Months + Older: 1,055,500 + 135,000 ÷ 1,613,000 ≈ 74% over 90 days.
4. Largest Debtor
James Riley – ₦703,000 (43.6%)
5. Customer Concentration Risk
Top 3 customers:
James Riley → ₦703,000
Crystal Ponce → ₦422,500
Nexa Group Ltd → ₦160,000
703,000 + 422,500 + 160,000 = 1,285,500 ÷ 1,613,000 ≈ 80% of receivables depend on 3 customers → HIGH RISK.
6. Average Invoice Age Category
Highest weight:
4 Months = 65.44%
3 Months = 26.19%
Older = 8.37%
Weighted average: ~ 4 months overdue.
7. Bad Debt Risk Ratio
Balances older than 90 days: ≈ ₦1,190,500
1,190,500 ÷ 1,613,000 ≈ 74%
74% of AR at risk of write-off
8. Collection Effectiveness Index (CEI)
Because none are current: CEI ≈ 0% (Very poor collection performance).
9. Debtor Dependency Risk Score
Largest debtor / total:
703,000 ÷ 1,613,000 = 43.6
Debtor Dependency = 44%
If James Riley defaults, almost half of AR is gone.
Key Findings & Recommendations:
The Aged Receivables Report as of 31 March 2026 shows a critically overdue receivables position totaling ₦1,613,000, with 100% of balances past due.
Over 74% of receivables are older than 90 days, indicating high collection and bad-debt risk.
Customer concentration is also severe, with the top three customers responsible for nearly 80% of total AR.
The weighted invoice age is approximately 4 months overdue, and estimated DSO is around 115–120 days.
Immediate collection actions and customer credit reviews are required to protect cash flow and reduce exposure to default.
Accounts Receivable (AR) Summary Analysis
Period: As at 31 March 2026 (Accrual Basis)
Overview
Total Receivables: ₦1,613,000.00
The AR Summary indicates that the business has concentrated outstanding balances with a few key customers. Receivables are skewed toward mid-aged aging buckets (3–4 months), highlighting potential collection delays that may require attention.
Key Breakdown:
1. Receivables by Aging
<1 Month: ₦0.00
No new receivables recorded in the most recent period, suggesting delayed invoicing or prepayment arrangements.1 Month: ₦0.00
No receivables in the 1-month aging bucket.2 Months: ₦0.00
No outstanding receivables in the 2-month bucket.3 Months: ₦422,500.00
Represents Crystal Ponce’s balance. Early overdue risk starts here; monitoring collections is recommended.4 Months: ₦1,055,500.00
Significant concentration of ₦703,000.00 (James Riley), ₦114,000.00 (Christopher Griffin), and ₦78,500.00 (Jimmy Proctor), plus ₦160,000.00 (Nexa Group Ltd). These balances indicate long-pending receivables requiring immediate collection focus.Older: ₦135,000.00
PrimeTek Solutions’ balance is in the oldest aging bucket, suggesting potential slow-paying customer or high collection risk.
Interpretation:
Total AR is ₦1,613,000.00
Majority (≈65%) of receivables are aged 3–4 months, reflecting a collection risk that could impact short-term liquidity.
Immediate collection efforts should target 4-month and older balances to reduce potential bad debt exposure.
Customer Concentration:
Top 3 Outstanding Customers (by Amount):
James Riley – ₦703,000 (44% of total AR)
Crystal Ponce – ₦422,500 (26% of total AR)
Christopher Griffin – ₦114,000 (7% of total AR)
Observation: A few customers dominate receivables, exposing the business to credit risk if any one customer defaults.
Aging Risk Assessment:
Current (<1 Month): ₦0.00 – No immediate risk.
Short-term (1–2 Months): ₦0.00 – Healthy, but no inflows in these periods could signal delayed invoicing.
Medium-term (3–4 Months): ₦1,477,500 – High concentration; collection plan required.
Long-term (Older): ₦135,000 – Potentially slow or doubtful debt; consider provisioning.
Interpretation: The AR profile indicates that receivables are largely overdue, emphasizing the need for proactive collection management and credit policy enforcement.
Key Takeaways:
High concentration in a few customers – Collection risk is focused on top 3 clients.
Aging skewed to 3–4 months – Over 90% of AR is past 3 months.
Potential liquidity impact – Cash flow may be affected if overdue balances are not collected promptly.
Proactive measures required – Implement reminders, collection calls, or credit holds for aging accounts.
Monitor older balances – PrimeTek Solutions’ ₦135,000 requires follow-up to prevent write-offs.
Commentary Snippet:
The Accounts Receivable Summary as at 25 November 2025 shows ₦1,613,000 in total receivables, heavily weighted toward customers with balances aged 3–4 months. Collection focus on James Riley, Crystal Ponce, and Christopher Griffin is critical to maintain liquidity. While the current AR is manageable, prolonged delays could affect operational cash flow, so timely follow-ups and monitoring are recommended.
Age Payable Reports
The Aged Payables Report shows all outstanding supplier or vendor bills grouped by how long they have remained unpaid — typically in aging buckets such as Current, <1 Month, 1 Month, 2 Months, 3 Months, 4 Months, and Older.
This report helps a bookkeeper or accountant monitor the company’s payment obligations, assess how timely the business pays its suppliers, maintain good vendor relationships, and manage short-term cash flow. Because payables directly affect liquidity and credit reputation, it is a critical component of operational financial management.
You use it to:
Track unpaid vendor bills
Monitor overdue obligations
Identify cash flow pressure points
Plan payments more effectively
Maintain healthy supplier relationships
Assess short-term liabilities
Prevent penalties or loss of credit terms
KPIs for Aged Payables
Aging Breakdown:
As at 31 March 2026
Total Payables = ₦776,400.00
(After adjusting for supplier credit from Fatima Abdullahi)
4 Months: ₦861,000 → 111% of net payables
Older: –₦84,600 (due to supplier credit) → –11%
0% current, 1–2 months, or 3 months
All payables are overdue.
% of Payables Past Due
Everything is overdue (4 months & older):
100% Past Due
2. % of Payables Over 90 Days
(4 Months + Older)
4 Months = 861,000
Older = –84,600 (credit)
Net overdue over 90 days = 776,400
= 776,400 ÷ 776,400 = 100%
100% over 90 days
3. Largest Supplier
Johnson & Co. – ₦500,000 (64.4%)
4. Supplier Concentration Risk
Top 2 suppliers:
Johnson & Co. → 500,000
Amanda Ortiz → 254,000
= 754,000
754,000 ÷ 776,400 = 97%
97% of payables depend on ONLY TWO suppliers. Extremely high risk
5. Weighted Average Payables Age (WAPA)
All in 4 months + older: ≈ 4 months aging
6. Credit Balance Ratio
Fatima's credit = 120,000
120,000 ÷ 776,400 = 15.45%
15.45% of your AP are supplier credits
7. Payables Dependency Risk Score
Largest vendor:
500,000 ÷ 776,400 = 64.4%
If Johnson & Co. stops supply, operations suffer heavily
8. Payables Stability Score
(High aging + high concentration)
Medium–High Risk Zone
9. Short-Term Cash Pressure Indicator
No current 0–30 day payables means:
No new purchases recently OR
Outstanding invoices are not being settled
Key Findings & Recommendations:
The Aged Payables Report as of 31 March 2026 shows a total outstanding supplier balance of ₦776,400, with all amounts sitting in overdue categories.
There are no current (0–2 month) payables, indicating that invoices remain unpaid beyond normal credit terms.Approximately 83% of total payables (₦647,000) fall into the 4 months overdue category, while 5% (₦35,400) is classified as “Older,” showing delayed settlement expectations. Although the total payable amount is relatively small, the age profile indicates poor invoice settlement discipline and potential supplier relationship strain.
Supplier concentration is moderate, with two vendors (Johnson & Co. and Amanda Ortiz) accounting for 97% of total payables, increasing exposure to supply disruption if issues escalate.
The business should prioritize clearing long-overdue invoices, renegotiating credit terms, and implementing stricter internal payment scheduling. Doing so will improve vendor trust, maintain supply continuity, and prevent the risk of supplier penalties or suspension of goods/services.
Aged Payables Summary Analysis
Period: As at 31 March 2026 (Accrual Basis)
Overview
Total Payables: ₦776,400.00
The Aged Payables Report shows a concentrated payable position almost entirely in the 4-month and Older buckets. Over 95% of outstanding liabilities have aged significantly, indicating delayed settlement of supplier invoices. While overall payables are relatively low, the aging structure suggests potential strain on supplier relationships and a need for improved payment scheduling or cash flow planning.
Key Breakdown
Payables by Aging Bucket
<1 Month: ₦0
No recent supplier invoices pending.1 Month: ₦0
No short-term payables.2 Months: ₦0
No mid-term outstanding balances.3 Months: ₦0
No balances in this category.4 Months: ₦861,000
Represents three suppliers with long-overdue obligations:Johnson & Co. — ₦500,000
Amanda Ortiz — ₦254,000
Elizabeth Dickerson — ₦107,000
This bucket contains the bulk of overdue payments and requires urgent attention.
Older: (₦84,600) net
Includes:Jideofor O. Odiegwu — ₦35,400
Fatima Abdullahi — (₦120,000) (credit balance)
The credit balance indicates overpayment or supplier deposit, creating a net reducing effect on payables.
Interpretation:
100% of payables are past 90 days, showing a critical delay in settling supplier obligations.
Supplier credit balance reduces total exposure but does not offset aging risk.
Delayed payments may weaken supplier confidence or lead to service disruption.
Supplier Concentration
Top suppliers by outstanding amount:
Johnson & Co. — ₦500,000 (64%)
Amanda Ortiz — ₦254,000 (33%)
Elizabeth Dickerson — ₦107,000 (14%)
Note: The top three vendors represent over 111% of gross payables before credit adjustments.
Observation: Payables are highly concentrated among a small number of suppliers. Delays with these suppliers may impact operations, stock availability, or service continuity.
Payables Risk Assessment
>90 Days Past Due: 100% of all payables
Weighted invoice age: Approximately 4–5 months overdue
Vendor credit risk: High, due to long aging
Credit balance: ₦120,000 indicates either overpayment or pending supplier refund/advance
Operational impact: Possible supplier dissatisfaction or restrictions on future credit terms
Interpretation: Although total payable amounts are modest, the aging profile is critically overdue, presenting reputational and supply-chain risk.
Key Takeaways
Critically overdue payables — all obligations exceed 90 days.
High supplier concentration — top 3 suppliers account for nearly all payables.
Supplier relationship risk — prolonged delays may affect future credit or service continuity.
Need for payables restructuring — implement scheduled payments to reduce pressure.
Credit balance investigation — verify Fatima Abdullahi’s ₦120,000 credit for proper classification.
Commentary Snippet
The Aged Payables Report as at 31 March 2026 shows ₦776,400 in total payables, with 100% of balances aged beyond 90 days. The majority of liabilities are concentrated among three suppliers—Johnson & Co., Amanda Ortiz, and Elizabeth Dickerson—posing operational and supplier-relationship risk. A credit balance of ₦120,000 reduces net exposure but requires reconciliation. Immediate payment planning is recommended to improve cash flow management and restore supplier confidence.
INVENTORY REPORT
An Inventory Report provides a detailed overview of all products or materials a business has on hand, including quantities, stock value, stock movement, and item status. It summarizes what is available, what is running low, and what may be overstocked — giving a clear picture of how efficiently inventory is being managed.
This report helps a bookkeeper, store manager, or business owner monitor stock levels, control inventory costs, prevent stockouts, reduce waste, and maintain optimal reorder cycles. Because inventory directly affects cash flow, cost of goods sold, and profitability, it is a vital component of financial and operational management.
You use it to:
Track available stock quantities
Monitor inventory valuation
Identify slow-moving or obsolete items
Detect fast-moving items to plan reorders
Prevent overstocking and stockouts
Improve purchasing and supply planning
Manage cost of goods sold (COGS) more accurately
Strengthen cash flow and reduce storage losses
Inventory KPIs
1. Gross Profit
Gross Profit = Sales – COGS
= ₦22,921,045.13 – ₦12,314,217.21
= ₦10,606,827.92
2. Gross Profit Margin (GPM)
= GP ÷ Sales
= 10,606,827.92 ÷ 22,921,045.13
= 46.3%
Healthy margin. Pricing strategy appears strong. COGS is well-controlled
3. Inventory Turnover Ratio (ITR)
Formula (standard):
ITR = COGS ÷ Average Inventory
We only have Closing Inventory, so we use this to estimate conservatively:
= 12,314,217.21 ÷ 427,018,918.65
≈ 0.029
Inventory turns only 0.03 times per year. Extremely low turnover. Means stock is moving very slowly or massive overstocking.
4. Days Inventory Outstanding (DIO)
= 365 ÷ ITR
= 365 ÷ 0.029 ≈ 12,586 days
This number is extremely high because inventory value is extremely large compared to COGS.
Interpretation: The business is carrying far too much inventory relative to sales and usage.
5. Inventory-to-Sales Ratio
= Closing Inventory ÷ Sales
= 427,018,918.65 ÷ 22,921,045.13
≈ 18.63
Inventory is 18.6 times total sales. High overstock or large volume of slow-moving items.
6. Adjustments vs COGS Ratio
= Adjustments ÷ COGS
= 437,280,577.68 ÷ 12,314,217.21
≈ 35.5
Adjustments are 35x larger than COGS.
This is the MOST CRITICAL RED FLAG.
This tells us:
Very large inventory revaluations
Possible stock corrections
Possible migration adjustments
Possible write-ups/write-downs
System cleanup entries
7. Purchases-to-COGS Ratio
= Purchases ÷ COGS
= 2,052,558.17 ÷ 12,314,217.21
≈ 0.17 (17%)
Company purchased very little during the period. COGS is mostly coming from previously existing stock. Supports the idea of overstock or carryover inventory.
Inventory Risk & Performance Summary:
Overstock Risk — Extremely High
Inventory value: ₦427,018,918.65
COGS: ₦12,314,217.21
Stock levels far exceed sales needs. May tie up working capital. Likely slow-moving or dead stock exists.
Accuracy Risk — High Due to Adjustments (₦437,280,577.68)
Adjustments exceed both purchases and COGS by huge margins.
This suggests:
System cleanup
Migration balance
Value corrections
Reclassifications
Large manual adjustments
Requires investigation.
Turnover Performance — Very Low
With ITR = 0.029 → stock not turning.
Profitability — Strong
46% gross profit margin shows pricing is good.
Inventory Summary Analysis
Period: As at 31 March 2026 (Accrual Basis)
Overview
The Inventory Summary for the period ending 31 March 2026 shows a major inventory-driven business structure with exceptionally high adjustment values and a strong closing inventory balance. The closing inventory value of ₦427,018,918.65 indicates heavy investment in stock, while COGS of ₦12,314,217.21 reflects active product movement within the period. Total purchases remain relatively low at ₦2,052,558.17, suggesting that the majority of inventory value came from adjustments rather than direct current-period procurement.
Key Breakdown
1. Inventory Valuation
Closing Inventory (Value on Hand): ₦427,018,918.65
The vast majority of inventory value is driven by beginning balances and adjustments, not new purchases.
This indicates:A stock-heavy business model
Large historical inventory carried forward
Minimal depletion relative to inventory size
2. Purchases During the Period
Total Purchases: ₦2,052,558.17
Purchases represent less than 1% of total inventory value, signaling that stocked items were largely sourced from previous periods or introduced through adjustments rather than new procurement activity.
3. Cost of Goods Sold (COGS)
Total COGS: ₦12,314,217.21
This indicates moderate inventory movement relative to the size of total inventory.
COGS represents approximately 2.9% of the closing inventory value, suggesting:
Very low turnover rate
Inventory remains largely unsold
Potential slow-moving or long-term stock items
4. Inventory Adjustments
Total Adjustments: ₦437,280,577.68
This is the most significant figure in the entire report.
Interpretation:
This value likely includes opening balance migrations, historical stock loading, or valuation corrections, not normal operational adjustments.
Adjustments are over 200x larger than purchases.
This single figure is almost equal to the closing inventory balance, meaning the business’s inventory structure is dependent on historical or adjusted entries rather than active purchasing.
This should be reviewed to ensure:
Proper classification
No overstatement
No duplication of migrated stock
Adjustment entries match documented stock sheets
5. Total Sales Amount
Total Sales: ₦22,921,045.13
Sales are significantly higher than COGS (₦12,314,217.21), generating healthy gross margins.
However, compared to the inventory base of ₦427,018,918.65, sales only represent 5.3% of total stock value — an indicator of:
Low inventory turnover
Large volume of dormant or long-term inventory
Opportunity to improve stock movement, promotions, or channel expansion
Interpretation of Overall Inventory Position
The inventory structure is dominated by historical adjustments rather than ongoing procurement. With closing stock value extremely high relative to COGS and sales, the business is likely holding:
Large beginning stock quantities
Valuation-loaded inventory
Low to moderate sales velocity
Operational implication:
Cash is heavily tied up in inventory
Turnover performance is weak
Potential risk of obsolescence or slow-moving stock
Key Takeaways
High Inventory Value: ₦427,018,918.65 closing stock indicates a stock-intensive business model.
Adjustments-driven Inventory: ₦437,280,577.68 adjustments dominate inventory valuation, requiring review.
Low Purchases: Only ₦2,052,558.17 purchases suggest minimal current-period procurement.
Low Inventory Turnover: COGS of ₦12,314,217.21 vs. ₦427,018,918.65 closing balance indicates slow movement.
Sales Performance: Sales of ₦22,921,045.13 show activity, but not enough to significantly reduce inventory levels.
Cash Flow Sensitivity: Excessive inventory holding may limit liquidity if not managed.
Commentary Snippet:
The Inventory Summary as of 31 March 2026 shows a closing stock value of ₦427,018,918.65, largely influenced by historical adjustments totaling ₦437,280,577.68. Purchases during the period were minimal, and COGS amounted to ₦12,314,217.21, indicating slow inventory turnover. While sales reached ₦22,921,045.13, overall movement remains low relative to the size of inventory. The business remains heavily inventory-dependent, and a review of adjustment entries and stock movement strategies is recommended to strengthen turnover and cash flow performance.
KEY BUSINESS-WIDE KPIs
Key Business-Wide KPIs are essential performance metrics that provide a holistic view of a company’s financial strength, operational efficiency, and overall business health. They cut across all financial statements — income statement, balance sheet, and cash flow — helping management understand whether the business is profitable, efficient, and growing sustainably.
These KPIs reveal how well the company uses its resources, how effectively it earns returns for owners, and how efficiently it acquires and retains customers. Because they influence long-term strategy and day-to-day decisions, they form the foundation of sound financial and managerial oversight.
You use them to:
Measure profitability and financial performance
Assess how efficiently assets and equity generate returns
Identify the break-even point for pricing and cost planning
Evaluate customer acquisition efficiency
Estimate long-term customer value and revenue potential
Support strategic budgeting, forecasting, and growth decisions
Strengthen overall business decision-making and financial discipline
KEY BUSINESS-WIDE KPIs
These are the quiet levers that tug across all your financial statements — the pulse points of any healthy business:
Break-Even Point
When your revenue finally stops crawling and stands upright.
Formula:
Fixed Costs ÷ (Selling Price − Variable Cost)Return on Assets (ROA)
How efficiently your business turns its possessions into profit.
Formula:
Net Income ÷ Total AssetsReturn on Equity (ROE)
A measure of how well the company rewards the faith of its owners.
Formula:
Net Income ÷ Owner’s EquityCustomer Acquisition Cost (CAC) (for service brands and marketers)
What it truly costs to convince a stranger to trust your service.
Formula:
Total Sales & Marketing Spend ÷ New Customers AcquiredLifetime Value (LTV)
The long echo of a customer’s loyalty — how much revenue they bring over their entire relationship with your brand.
Formula:
Average Purchase Value × Purchase Frequency × Customer Lifespan.
Part 2: Advance Analysis And KPIs
Advanced Financial Analysis involves a deeper evaluation of financial statements to identify trends, efficiency, profitability drivers, and potential risks. It goes beyond basic reporting to assess cash flow quality, operational performance, asset utilization, and strategic financial health.
Key Performance Indicators (KPIs) in advanced analysis—such as EBITDA Margin, Operating Margin, Return on Assets (ROA), Return on Equity (ROE), Free Cash Flow, and Cash Conversion Cycle—provide a clear picture of long-term performance, operational efficiency, and financial sustainability.
This helps businesses make informed strategic decisions, optimize operations, benchmark performance, and plan for sustainable growth.
It is the field of interpreting numbers, identifying patterns, predicting future outcomes, and giving meaningful business insights that help business owners make smarter decisions.
Advanced Analysis = Bookkeeping + Insight + Interpretation + Forecasting + Decision Support.
This is what real professionals get paid for.
Purpose of This Page
This page proves that I’m not just a bookkeeper who enters transactions —
I am an analyst who interprets financial data to support better business decisions.
It differentiates me from other entry-level bookkeepers and positions me as a strategic, analysis-driven virtual bookkeeper.
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