Accounting for Losses

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  • #7688
    Christopher Grant
    Participant

    Hi
    I absolutely love the Bowraven Cashflow Forecaster – its been simply invaluable to us!

    Can you please tell me if we have made a loss in the year before the first forecast year in Bowraven how we account for that in the software?

    Many thanks

    Chris

    #7690
    bowraven
    Keymaster

    Hi Chris,

    Firstly, thank you for the lovely comment about Cash Forecaster.

    With regards to your question – the software only allows you to enter the opening trial balance on the ‘Open’ tab, but not your full years profit and loss figures I am afraid to say.

    This is actually a good idea and I may see if I can incorporate this in the next update, so users can add comparative figures for the prior year.

    Thank you.

    Russell.

    P.s. I would appreciate some positive feedback and a review if you’d be so kind, as this helps others thinking about buying the software, thank you. To add a review is here: https://www.bowraven.com/product/cash-forecaster-software/#reviews

    #7692
    Christopher Grant
    Participant

    Hi Russell

    Thanks very much for coming back so quickly. 5 Star review posted! We used the software to prepare all of our detailed forecasts to support our application for authorisation of a new small firm to the FCA. We were successful and I think its a brilliant piece of kit as are your video tutorials and 59 page detailed user guide.

    I guess that one solution for me would be to enter our actual 2020 P&L loss in cell D59 of the Info Tab that allows for deductions from the profits of your first forecast year. That way we would then get the corporation tax benefit against it.

    Kind regards

    Chris

    #7695
    bowraven
    Keymaster

    Hi Chris,

    Firstly, thank you for your five star rating and lovely review and comments – very much appreciated!!

    In answer to your question, which I think is you have brought forward losses to set against the first year’s forecast profits. If I am right, the software doesn’t allow for this you are right and this is another great addition. I will incorporate this into the next version and let you know when I’ve done this. It may be a bit late for you for these forecasts unfortunately, but thank you for the suggestion.

    However, I think it would work by putting your brought forward loss in cell D59, as this would reduce any profits you have. If the loss brought forward is more than the profit in that year, limit the loss to those profits. Then put the balance of your loss in cell D60, and so on.

    I hope that makes sense, but if I’ve missed the point and answered the ‘wrong’ question’ please let me know.

    Thank you once again for the lovely words.

    Stay safe.

    Regards, Russell

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