RATIOS PLUS TUTORIAL
Ratios Plus Overview
Ratios Plus, or R+ for short, is a tool to help create and maintain financial ratios and accounting data for clients and companies that you will setup in the program. Ratios Plus will create Activity, Liquidity, Profitability, and Debt and Capital Structure ratios from accounting data that you provide. In addition, you can select as many (or as few) ratios for which to enter and print data based on the needs of your company. Once you enter the accounting data for your company, you can then print reports to compare specific ratios or accounting data over time. You can even create your own customized ratios using the User-defined Ratio Wizard. Finally, you can chart ratio and accounting data with an easy-to-use, multifunctional Chart Wizard. Compare Ratios Plus to any other financial ratio software and you will see that Ratios Plus is far more flexible, inexpensive, and easy-to-use.
Features
Ratios Plus will become indispensable as you begin to utilize the many customizable features for your clients. You can quickly enter accounting information to chart a specific ratio over time or print a detailed information report to compare ratios for up to 10 years. Monthly information can also be easily compared and charted to discover trends in sales, accounts receivable, current liabilities, etc. within a given year. Data can be entered on a monthly or annual basis for up to 10 prior years. Printing and charting the results is also easy and flexible. Once you see how easy and intuitive Ratios Plus is to use, you will never use another financial ratio program.
Creating a New Client File
To create a new company data file in Ratios Plus (or RP for short), click the “Client Maintenance” button on the toolbar at the Main Menu or simply select the “Clients” option from the File Menu. The “Clients” screen displays a list of the companies that currently exist for RP with a series of buttons along the bottom of the screen that allow many options for client maintenance. Click the “Add” button to add a new company.
When you click the “Add” button, RP opens the “Details” page where you can enter the details for your client. Most of this information can be filled-in or changed at a later date. For our example, we will simply set up a sample company. The client number for our company is 0101 and the name of the company is XYZ Company, Inc. If necessary, you can always delete this company when you are through running this tutorial. In addition to basic details about the company that you can fill in, there is another tabbed page that consists of “Notes” which you can attach for the company you are creating. Notes can be added for any company and appended at any time. For this tutorial we will not be adding any notes at this time. After entering the information for our company, we click “Save” to save the new company.
Once we click “Save” to save the new company, we can either click “Select” to select the new company or we can click on the “List View” tab to see a complete listing of the companies we have available for selection in Ratios Plus. To select a client from the “List View” screen, highlight the one you want to work on by clicking the “Select” button at the bottom of the screen or simply double-click on the company to select it. At this point, we are now ready to enter account information in order to create ratio reports for our client.
An alternative to creating a new client by filling out the information in the “Details” page, you will note that there is also an “Import” button which will automatically import client information from other Pro-Ware programs such as “Accountant’s Helper”, “Client Communique’” or “Amortization Plus”. Once the Import wizard starts, we simply select the data folder which contains data files from any of the 3 programs previously mentioned to import client data files.
In addition to creating, editing, and importing client files, the Client Maintenance screen is also useful for deleting client files no longer needed or to print a report listing all clients we currently have listed in Ratios Plus.
Backing Up and Restoring Files
To Backup a company data file in Ratios Plus (or RP for short), click the File Menu to drop the File Menu down and then click “Options” and then “Backup/Restore” to enter the Backup/Restore wizard. Note, you can also click the toolbar button for the Backup/Restore to start the Backup/Restore wizard.
On the first screen of the wizard, we will make the choice of whether to Backup or Restore data files. Initially we want to make a backup of our files, so we select the “Backup Data Files” option and click “Next”. Now we select the appropriate backup option. In RP there are 2 types of backups we can make. The first is a traditional backup which will compress our data files and archive them in case we need to restore these client files at a later date due to a hard drive crash, accidental file deletion, etc.
The other option in backing up files is to copy data files to a different location. This option (similar to the “Save As…” option in Excel or Word) is useful if you want to copy a client file to your laptop’s local drive, an external hard drive, thumb drive, or Zip drive to work on at home or at the client’s location. For our first backup, we choose the “Zip Files” option to create a compressed backup and click “Next” to continue.
On the next screen we are asked to provide a location for the backup file. To do this, click on the ellipses (or 3 dots) to the right of the backup location. From here we can navigate to the folder where we want to create our backup or create a new folder in which to store our backup file. For this tutorial, we are going to create an “RP_Backup” folder on our local C drive to store our backed up RP files. Once we have the correct location (in this case we choose our C drive) we then click the button “Create New Folder” to create a folder called “RP_Backup”. After selecting the folder, click “OK” and we will see our folder displayed as the location where our backup files will be stored. Note the 2 additional options you have if you choose a removable drive in which to store your backups. You can either erase the contents or format your removable drive through this wizard. However, if you are selecting these options, proceed with caution because either of these options will completely erase the contents of your drive prior to making the backup file. Once we have the correct location, we click “Next” to proceed. On this screen we either accept the default name which Ratios Plus has given us or change it to something more meaningful. In this case, we accept the default name that RP has given us and click “Next” to proceed. On the final screen of the Backup wizard, we are shown a summary of the backup options which identifies the location and name of our backup file. If this is correct, we click “Finish” to complete the backup or click “Back” to change the name or location. Once we click “Finish”, the backup file is created and a message is shown telling us that the backup file was created. Click “OK” to return to RP’s main menu.
To demonstrate copying a file, we choose the Backup/Restore wizard button once again, make sure the “Backup” option is selected and click “Next” to proceed. This time we select the “Copy files to another location” option and click “Next” to proceed. We will use the previous folder which we have just created to copy our data files. So we first click the ellipses button to the right of the location shown and then click the local C drive and the “RP_Backup” folder we just created. Once we have the correct location, we click “Next” to proceed. If the location shown where our files will be copied is correct, we click “Finish” to complete the copy process. Upon completion, we can then click “OK” to return to our main menu once again.
To restore a data file using the Backup/Restore wizard in RP, we click the button for the “Backup/Restore” wizard, click the “Restore” option and then click “Next” to proceed. On the next screen, we are given 2 options. We can either restore a previously backed up, zipped file or we can choose to copy a previously copied file to our current default data folder. In this example, we are going to restore the backup file we created in the first part of this tutorial. So we make sure the “ZIPPED File” option is selected and click “Next” to proceed. Now we click the ellipses to find our backup file and navigate to the location. Once the correct location is identified, we can then select the zipped file. We select the file created earlier, click “OK” and then click “Next” to proceed. If the location and zipped file are correct, we then click “Finish” and “OK” after the restore is complete to return to the main menu.
Configuration Wizard
This video will take you through the various settings that can be changed using the Configuration Wizard in Ratios Plus (or RP for short). To access the Configuration Wizard, select it from the File Menu.
On the first screen of the wizard, we are shown some system settings that can be changed. We could change the size of screens which is defaulted to 100%. If you would like to make the screen sizes larger for easier reading or smaller to take up less space, you can change the default to something less than or greater than 100%. If you are running a comfortable resolution however, 100% will probably serve as the best choice. Additionally, you can change the default data location. If the location shown is not where you want your data files, you can change the location by clicking the ellipses and navigating to another location. Once you are finished, your settings are automatically saved. In addition, you can change the behavior of RP when printing reports. RP will automatically return to either the report specification screen or the main menu after printing reports and will allow you to change your printer every time you print a report or print to your default printer without prompting you first. Change these options only if you do not want the default behavior of RP.
To select other configuration options, click on the appropriate item on the left of the screen. The first are system settings which we have already looked at and the next option will change the program’s behavior regarding the default ratios we will be using. On the ratios default screen we can select specific ratios to enter information for and display. By default, all of the ratios are enabled. To disable certain ratios in RP, simply uncheck the appropriate box.
The “Backup Options” page allows you to enter a different source location which RP will use to find previous backups and a destination location which RP uses when making its backups. This information can be changed at any time and you can always select various source and destination locations while performing backups and restoring files.
Finally, the “Email Configuration” option allows you to input up to 3 different email addresses from which to send correspondence from AP. Enter a description of the location and then click the ellipses to the right of the SMTP address and enter the appropriate information here. It is not necessary to enter your SMTP address and you can have your network administrator enter it a later time if you do not know the specifics of your email address at this time.
Finally when you are finished changing your configuration settings, click “Finish” to automatically save these settings and return you to RP’s main menu.
Adding and Editing Financial Data
This video will take you through the steps necessary to add or edit client financial information in Ratios Plus, or RP, for short.
To simplify our example, we will first change the active ratios that we will be calculating. By doing this, we can alter the amount of information that Ratios Plus needs to calculate the corresponding ratios. To change the active ratios, go to the Ratios menu and choose “Select Active Ratios” from the dropdown menu. Uncheck the boxes for “Activity Analysis Ratios”, “Debt and Capital Structure Ratios”, “Profitability Ratios”, and “User-Defined Ratios”. This will leave only the “Liquidity Ratios” selected which, in turn, requires us to only input the financial data needed to calculate these ratios. Once we have made these selections we click “OK” to return to the main screen.
To add or edit financial information, click the Financial Data menu option and then select Add/Edit Data or click the Add/Edit Financial Data button on the toolbar. Upon clicking this option we see an add/edit screen that will allow us to input up to 10 years of financial data for our client. First, we choose the year to enter our data for and then choose whether to enter annual or monthly information by clicking the dropdown. For this example, we will be entering annual information so we select the “Annual” information dropdown. Next, we click “Edit” to allow us to enter the various amounts from our balance sheet and income statement.
Since we selected only the liquidity ratios, we only need to enter information for fields which have a red asterisk. These fields are required to calculate the ratios we have selected. We can enter more information, if desired, however we need only the following: Cash $142,426.34, Inventory $111,175.86, Current Assets $386,861.08, Current Liabilities $17,330.61, and Total Liabilities $146,787.39. Once we have entered these amounts we click “Save” to save this financial information. Note that there are several bolded fields which are actually calculated fields. Anytime you add or edit information, Ratios Plus calculates the numbers that it can from the available data. You can always override the calculations if you like and in this instance, they are not required for the ratios we have selected, so we can ignore them. After clicking “Save” you will also be able to print the financial statement items so you can see at a glance if there is any missing or incomplete information.
At this point, we are ready to print a report of our liquidity ratios for 2006. To do this we go to the Reports Menu and select the “Ratios Detail” report. Make sure that the year is set correctly for 2006 and then select “Preview” to see the contents of the report. You can print the report by clicking on the printer icon in the Preview screen or the exit button to close the report preview.
Printing Reports and Graphing Data
This video will take you through the steps necessary to print a client listing, various ratio reports, and chart ratio information through RP’s Chart Wizard.
All of the reports in Ratios Plus, or RP, can be found under the Reports Menu. The first report on the menu is a Client Listing report. This report will print a list of all clients that are currently setup in RP. To print this report, we click the Client Listing option under the Reports Menu. You can also print this listing for just selected clients by clicking the “Selected Clients” option. When we select this option, we are shown a grid that contains all clients currently entered in RP. From here, we can select just those clients we want to print. In this case, we click the “Mark All” button to mark all of the clients to be printed. In addition, we want to see the entire detail of each company set up in RP, so we set the Detail to “Yes” to show us detail. We will be printing in portrait format, so we do not check the “Landscape” option and finally, we have the option of printing this report to file in a multitude of formats. We just want to preview and print this report, so we click “Preview” to see what the report looks like. Then, if the report looks correct, we click the printer icon to print this report to the printer.
To print ratio information, we can select any of the ratio reports listed in the Reports Menu. The first report is the ratio information report which lists all of the ratios we currently have selected and shows the financial statement components that make up the ratio. The next report is the Ratio Details report which shows the actual ratio value for any specific period or multiple periods if financial data has been entered for multiple periods. The next report, the Ratio Comparison report will compare a ratio among multiple periods. It can be run for either annual or monthly and will compare multiple periods if the financial information has been entered for the client. The Ratio Data report will display information currently entered for the client. The report also shows items that may be incomplete or missing and will assist you in determining what financial data is required to determine the ratio values for the ratios you have selected for a particular client. It is also useful in comparing raw financial data from one period to the next in order to determine trends or inconsistencies. As with any report in Ratios Plus, you can print this report in portrait or landscape, to your printer, to a file or display it on the screen.
In addition to the reports found under the Reports Menu, you can also print the results of reports to a graph using RP’s Chart Wizard found under the Reports Menu. First, you can select either ratio data or financial data to graph. For our example, we will select financial data and select current assets and current liabilities to compare. If we had multiple years' worth of data to display, we could compare the results by period for up to 10 years. Once we make the selections for the data to display, we can choose the type of graph, the graph’s theme, and even the legend display of the graph. If we need to change any aspect of the data displayed on the graph, we need only click the “Back” button to return to the previous screens where we selected our data.
Summary
Ratios Plus makes printing and comparing financial data for multiple periods very easy. In addition, the number of ratios supported is nearly limitless with the ability to add ratios of your own via the User-Defined Ratio Wizard which allows you to enter up to 10 customizable ratios formulas. Ratios Plus will even tell you what financial information you need to print any ratios you choose. With RP's graphing capability you can compare financial data, compare multiple periods, and compare ratio results. The ease of use and flexibility built into RP will make ratio analysis and financial data analysis a real time-saver for your company.
We encourage you to provide us with your feedback. There is an option in the Help menu that will allow you to fax or email your comments to our support staff. Many of the new features we add are a direct result of feedback from our users.
Finally, since support is included with the cost of your software (and upgrades), help is never more than an email or phone call away. We look forward to meeting your continuing needs.