A

“DRAW your plans, NOTE your ways,

and ACCOUNT your growth”

COMPANY
ManagementREPORT
C O.

J
JACEN

100 Mabolo St. Malolos jacenco@gmail.com jacencobyyourside.com (098)765-4321

Bulacan, Philippines 3000
 100 Mabolo St. Malolos Bulacan, Philippines 3000

C
jacenco@gmail.com

O. jacencobyyourside.com

J
(098)765-4321
JACEN

TABLE OF
Contents
INTRODUCTION:
COMPANY HISTORY, VISION AND MISSION, PARTNERS, AND ORGANIZATIONAL CHART

FINANCIAL STATEMENTS:
COMPARATIVE FINANCIAL STATEMENTS

SIGNIFICANT CHANGES:
DISCUSSION OF SINIFICANT CHANGES IN THE COMPANY

FINANCIAL STATEMENT ANALYSIS:

VERTICAL, HORIZONTAL, RATIO AND GRAPHS

SAGE/PEACHTREE: GUIDE
FUNCTIONS OF SAGE/PEACHTREE

REFLECTION
INDIVIDUAL REFLECTION ABOUT USING
SAGE/PEACHTREE
Our History
q
JACEN is a startup company focusing on accounting services and more recently, stationery manufacturing. It was
founded in Malolos, Bulacan last June 2020 by five college friends namely: Jonathan, Arvie, Ckhyle, Elena and
Nina. The first letters of their nicknames form the name of the company. From a humble beginning with a starting
capital of P250,000, the business has now grown to have a total equity 5.8 times of its original amount, generating
a total net income of almost P1.8M since its conception while providing fulltime employment to 8 homegrown
talents.

The partners, accountants by profession, originally sought to enter the competitive accounting and tax industry
but later on decided to venture into the paper and pen manufacturing business. Now, JACEN has amassed a loyal
clientele for their accounting and tax services while at the same time producing the highest quality stationery
products, with MUJI™ as its flagship brand.

Vision:
“We would like to become a leading provider of accounting services and to provide high-quality
stationery products in the Philippines and in the region, as we foster strong bonds with our customers,
our employees and our partners.”

Mission:
1) Is to continuously improve our products and services;
2) Is to construct a state-of-the-art manufacturing facility and;
3) To enter the international market with only the BEST products and services.

Coping up with the current global situation:

“Living up to its commitment of bringing its products and services closest to its customers, JACEN
Company continues to expand its network. At present, the company distributes notebooks and other
pen products nationwide not only by selling on our physical stores, but also, by taking advantage of
using different online shopping platforms, which is widely used by many Filipinos currently. We have
to be taking advantage of these online selling platforms because most of trading activities globally
are currently held online due to the corona virus pandemic, and that buying goods physically are
limited to an extent.”
 OURPartners

Ronaldo Velilla Jr.

MANAGING PARTNER

To help us carry out our mission, we have

added eight competent individuals to our
team with extensive knowledge in their
respective departments. Ma. Elena Guanlao
Alaine and Sharla are our newly hired HEAD OF ACCOUNTING
salespeople, and are led by our partner Nina
Pascual.
Skinny Pete and Badger are our very reliable
production staff, under the supervision of our
partner Ckhyle Lazaro.
Gus, Jesse, Hank and Walter are our
accounting staff who have been with us since Nina Jane Pascual
the very start. They are managed by our HEAD OF SALES
partner Elena Guanlao.
Thanks to our partner Jonathan Bausing, we
were able to find these people who add so
much value to our organization, while our
partner Arvie Velilla makes sure that the
different departments are functioning as
efficiently as possible.
Together as a team, JACEN is working hard
Jonathan Bausing
HEAD OF HR AND MAINTENANCE
towards attaining all of its goals and its
commitment of being a gold standard in
providing accounting services and stationery
products

Chkyle Lazaro
HEAD OF OPERATIONS
 C O.
ORGANIZATIONAL
Structure
J
JACEN

JACEN. Co.

Ronaldo Vellila
MANAGING PARTNER

Nina Pascual
HEAD OF SALES
Chyle Lazaro Elena Guanlao Jonathan Bausing
HEAD OF OPERATIONS HEAD OF ACCOUNTING HEAD OF MAINTENANCE

SHARLA MAE BATE BADGER GUS FRING

PRODUCTION STAFF OFFICE STAFF
SALES STAFF

ALAINE MACARASIG SKINNY PETE HANK SCHRADER

PRODUCTION STAFF OFFICE STAFF
SALES STAFF

JESSE PINKMAN
OFFICE STAFF

WALTER WHITE
OFFICE STAFF
 FINANCIAL
Statements

COMPARATIVE BALANCE SHEET:

(October vs. September)

Summary:
CURRENT ASSETS: 52.75%
INVENTORY ASSETS: 50.00%
NON-CURRENT ASSETS: 0.70%
TOTAL ASSETS: 14.75%

CURRENT LIABILITIES: 26.08%

NON-CURRENT LIABILITIES: 0.00%
TOTAL LIABIBILITIES: 11.18%
TOTAL EQUITY: 21.03%
TOTAL LIABILITIES AND EQUITY: 14.75%
 FINANCIAL
Statements
COMPARATIVE INCOME STATEMENT:
(October vs. September)

Summary:
TOTAL REVENUE: 83.50%

PAYROLL: 11.40%
GENERAL AND ADMINISTRATIVE: 85.77%
TOTAL EXPENSE: 279.21%

NET INCOME: 5.34%

FINANCIAL
Statements

Summary:
OPERATING ACTIVITIES: 331.42%
INVESTING ACTIVITIES: 0.00%
FINANCING ACTIVITIES: 0.00%

TOTAL CASH AND 103.36%

CASH EQUIVALENT:
 SIGNIFICANT
Changes
Introduction:
Technological innovations have increased the impact of change and businesses are now faced
with the challenge of improving its operations and developing competitive edge on how to
gain more customers in the increasingly tight market. That’s why our company are trying to
improve our profitability and expanding our operations to cope up with the high demand of
the customers.
In the pursuit of its organizational goals, JACEN Company had undergone significant changes
over the past month. For the first four months of operation of the company, its revenues came
from rendering different services such as accounting and tax services and accounting
research. However, due to the highly competitive cutthroat accounting industry in the country,
and with the aim of generating more revenues, the company decided to make a big business
decision to start manufacturing premium notebooks and ballpens. The partners are avid
enthusiasts and frequent users of finest-quality stationeries. A market research was
conducted and the partners found that the premium segment of the stationery market is still
underpenetrated and posed as a huge opportunity for the company’s growth. In September,
the company started acquiring inventory and hired two production staff and trained them for
manual production of said items. By October, the company had already formally initiated its
manufacturing operations.

The sale of these manufactured goods explains the huge increase of 83.5% in our revenue for
the month of October. Similarly, and as expected, the company’s selling and administrative
expenses also increased by 85.77%. This is mainly due to the provision of commission fees to
our salespeople. This is evidenced in our comparative income statements for the months of
September and October.
SIGNIFICANT
Changes

Q
 SIGNIFICANT
Changes

Unsurprisingly, our cash balance also experienced a growth of 103.40% compared to the
previous month. This can be explained by the dramatic increase in the company’s cash flow.
Due to the company’s collection campaigns and policy of aging accounts receivable by no
more than 30 days, our operating cash flows have grown by an impressive 331.42%. Our sales
people are also partly to be thanked for pushing cash transactions with our customers by
offering 3% cash discounts, and the policy of offering 2% discount for invoices paid within 15
days.
Although a high cash balance is pleasing to the eyes, too much cash balance may signify idle
cash, which is not helpful to the organization’s growth. By keeping the cash idle, the company
loses its opportunity to generate additional income. That being said, the management will be
on the lookout for safe, high-yield short term investments to invest idle cash and earn interest
income. That extra income can be used to offset the increase in the expenses brought about
by the expanding operations of the company, or we can use it to pay for other current
obligations.
 SIGNIFICANT
Changes

Moving on to the company’s current liabilities, we saw a significant increase in September of

62.03% from the last fiscal year’s balance. As stated earlier, the company started to purchase
raw materials on credit for the production of specialty notebooks and ballpens, which
explains the sharp increase of 976.92% in our accounts payable balance. The management
will be drafting a favorable accounts payable policy that will aid us in achieving our growth
targets, and one that is geared towards the shortening of our cash conversion cycle.

Another very satisfying portion of the balance sheet is the partners’ equities section. JACEN
has seen strong profits since its inception. Although the net income margin has seen a
decrease in October, the figure, which currently stands at 41.02%, is still very healthy. As
mentioned before, the firm, having determined inefficiencies that drag down these numbers,
is working hard on fixing them.
 FINANCIAL STATEMENT
Analysis
Liquidity Ratio Efficiency Ratio

A company’s liquidity is best measured by its The company’s ability to collect its receivables
current and quick ratios. As can be seen from the has declined in the preceding three months but
graph above, the company has steadily improved saw an increase in October. As stated before, this
its ability to pay short-term obligations over the is due to a change in the company’s collection
course of its five months of existence. JACEN will efforts. Discounts were offered to encourage
be aiming for a current ratio of 2 in the future. prompt payment from customers.

This metric measures the company’s ability to

Meanwhile, JACEN’s quick ratio, which excludes generate sales from its assets. The ratio has seen
inventories and prepaid expense items, has also a gradual decline from June to September, but
shown marked improvement compared to its eventually picked up in October, again due to the
June levels. The company intends to keep this commencement of manufacturing operations. The
level of quick ratio in the future. management intends to increase the ratio to 1 in
the near future by aiming for an exponential sales
growth in the near future.
 FINANCIAL STATEMENT
Analysis
Solvency Ratio Profitability Ratio

JACEN came from a very unideal starting point with its This metric shows the ratio of the net income of
leverage ratios. As seen in the graph above, the the business to its partners’ equity. A 28% ROE is
company financed its operations using debt, which
still considered to be generally good. However,
stood at 4.33 times the amount of equity in June.
However, slowly but surely, the company is heading
to improve its ROE, the company is considering
towards a more acceptable amount of leverage. It has distributing idle cash to partners. Also, the use
doubled its equity ratio from .19 in June to .38 in of more financial leverage, increasing profit
October. We can expect it to go even higher in the margin and improve asset turnover are ways to
following months due to upcoming the settlement of improve ROE. The management is currently
interest payable and the short-term note. The looking at one of these ways to improve the
company is targeting a debt ratio of .20 in the near index.
future, from its current level of .62.

Simply put, this ratio indicates how much of every

This graph shows the percentage of profit a peso sale is translated into net profit, and is also
company earns in relation to its overall called as net profit margin. Even though the
resources. Although we have seen a steady metric has seen a decline in the past three
decline in ROA from its peak in July, the 12% for months (and an even sharper decline in October),
October is still considered to be a very healthy it is still acceptable, as can be expected from a
figure. The management will be doing its best in company with manufacturing operations.
maintaining this level of ROA or even increasing Nonetheless, the management will work on
it. maintaining this level or even increasing it.
 FINANCIAL STATEMENT
Analysis
Trend Analysis

The main takeaway from this graph is

that our assets (especially cash) and
equities have grown much faster than
the liabilities. This is a good sign
because it goes to show how efficient
management has used the company’s
resources in order to improve its
financial standing.

The growth in total revenues, which

stands at 328% of its June levels, is
very pleasing to see. However, as
discussed earlier, the company can do
a better job at growing its net income,
which did not match the impressive
growth of revenues. In order to
achieve that, the company is
strategizing on plateauing the
increase in expenses (or at least
keeping its growth at a minimum).
 FINANCIAL STATEMENT
Analysis
Vertical Analysis

A vertical analysis of the company’s

financial statements also shows the
improvement of its numbers and its
financial performance.
 JACEN CO.
Our Future
20

In line with our company’s vision and mission, we hope to reach the following milestones in the next
five years of our operations:

2021 Upgrade from manual labor to an automated manufacturing system in order to meet our
annual production goal of 75,000 units of our Muji™ Pen Deluxe and 42,000 units of our
Muji™ Premium Notebooks. We also plan to start offering auditing services and
managerial advisory services later this year. Reach our first 10 million pesos in sales
revenues.

2022 Expand our product line to include premium sticky notes, pad papers, highlighters and
markers. We also plan to start construction of our very own state-of-the-art,
environmentally-friendly manufacturing facility.

2023 Start exportation of our products to fast-growing Asian markets, and to start offering
our services to more cities in other parts of the nation.

2024 Reach our first 10 million pesos in net income.

2025 Be recognized as one of the top 25 providers of accounting services in the nation, and
to take up at least 10% local market share of the premium stationery segment.

We are very thrilled for what’s to come in the next few years. Our journey and growth as a company
over the past few months have been very exhilarating in so many aspects and we are glad to share
those experiences with you. With these milestones in mind, JACEN is committed to achieve its vision
while also contributing to the betterment of the lives of its stakeholders: from clients to suppliers, and
from employees to the end-users of our products.

Draw your plans.

Note your ways.
Account your growth.
JACEN is by your side.
C
O. SAGE/PEACHTREE
Guide
J
JACEN

Introduction:
The completion of this management report would not have been possible without
the help of Sage ERP. Sage undoubtedly made our company’s financial reporting
and managerial functions seem like a walk in the park. Granted, we were
perplexed the first few times we used it but like most things, once we got the
hang of it, we found it very useful in generating different reports and even just
the day-to-day activities of the company. Below are screenshots of the different
functions of the Sage software such as making a company profile, creating
client, vendor and employee profiles, and adding inventories or services.

Setting-up company in Sage

This is what you'll see when you set up your company's profile in Sage 50 2020.
C
O. SAGE/PEACHTREE
Guide
J
JACEN

Follow the steps indicated and fill-out accordingly to set up your company.
C
O. SAGE/PEACHTREE
Guide
J
JACEN

Chart of Accounts
C
O. SAGE/PEACHTREE
Guide
J
JACEN

Receivable Ledger
Creating client: Receivables > Clients > Add client

Payable Ledger
Creating vendor: Payables > Vendors > Add vendor
C
O.
SAGE/PEACHTREE
Guide
J
JACEN

Inventory & Services Ledger

Adding an inventory item: Inventory & Services > Inventory & Services > Add
inventory & service

Payroll Ledger
Creating employee: Employees & Payroll > Employees > Add employee
INDIVIDUAL
Reflection
Jonathan M. Bausing
I have learned a lot from using Sage Accounting Software.
Thanks to our subject, Accounting Information System because it
made us explore and learn more about this accounting software. At
first, I find it very complex and hard to understand but as we
continue to explore this software, and also with the help of our
professor, Mr. Greg Saclot and my classmates, I was able to finish
and understand the software.

As there are technological advances that triggers the

profession of the accountants, we need to cope up with it so we can
respond to the needs of our employer. This subject prepares us for
the future jobs where most companies use accounting software. It
gives us the edge among other candidates for the job we were
applying for. This also makes the work of the accountant easier or I
must say efficient because the software can generate Financial
Statements and Reports by itself. Also, it reduces the risk of having
mistaken because of human error thus making our work effective.

Although using Sage ERP are complicated, we manage to get

through it and do the activities needed to accomplish. But there is
still lot to learn because there is still unexplored part of the system.
I would highly recommend this software because it can be useful
for us in the future.
INDIVIDUAL
Reflection

Chkyle-rine Ericka V. Lazaro

In today’s world, where technology is continuously
civilizing. We need to cope up. Accounting Information System as
our course subject in our final year, made me realized that our work
as an accountant can be simplified with the use of software like
Microsoft Excel and Peachtree or what we call now Sage 50. This
course subject also helps me to refresh what I have learned in our
IT subjects and to apply also what I have learned starting from the
basic accounting up to now. Before, I thought that Microsoft Excel
is just a software where I can type information and made tables. But
now, I find it more useful for me because it serves as a calculator
and operated by different formulas.
Microsoft Excel and Sage 50 (Peachtree) made data entry
processes simple and fast. Sage 50 (Peachtree) is efficient to use
because it will lessen the errors that we, as the accountants, can
make when recording transactions and preparing financial
statements manually. The first time I used Sage 50 (Peachtree), I
find it very challenging because of the unfamiliarity of the
commands in this software. But in our perseverance in researching
and exploring the software’s function as we made a weekly
presentation in our class, we can operate it. And Sage 50 really
helps us a lot starting from the journalizing transactions up to
generating the financial statements. So for me, it is better if I will
continuously study and explore Sage 50, so that I can be more
familiar with it because knowing how to use an accounting software
will be a benefit in our work field.
INDIVIDUAL
Reflection
Ronaldo M. Vel illa Jr.
I have learned a great deal from this subject during this
semester. And I am very thankful that Accounting Information
System is part of our curriculum for a number of reasons. First, my
Microsoft Excel skills have been refreshed. Second, I am now well-
versed with Sage ERP software. And lastly, these first two reasons
will make me a more desirable and future-proof accountant,
especially with the advent of automation in our industry.
Aside from that, Sir Greg certainly trained all of us for our
eventual entry into the profession by familiarizing us with the
expectations of clients and other users of financial statements. He
asked us questions that we did not expect because we had a rather
myopic view of what our job entails. He made us realize that we have
to condense the data we have collected into more meaningful and
comprehensible reports, particularly for users of financial
information that are not acquainted with accounting or other
financial and managerial concepts. In addition, the subject
definitely incorporated our learnings from other subjects such as
internal auditing, cost accounting and financial management. The
weekly reports gave us a glimpse of the real world.
Last, but definitely not the least, and this might sound quite
cliché, I learned the importance of teamwork. I undoubtedly
wouldn’t be able to pass this subject by my own, and the same goes
for my teammates. Although we had our miscommunications and
slight altercations throughout the duration of the semester, we were
able to put them aside and work together towards our common goal.
I believe this is an important aspect of the subject for the reason
that when we enter the profession, we would not always work alone.
There will be tasks where we will be assigned to work with someone
else, or tasks where we will need the help of someone else. Soft
skills such as time management, effective communication and
cooperation are just as important as the hard skills that the subject
taught us. And for that I am once again grateful. Having completed
this subject surely transformed me int o a more well-rounded
individual that is more equipped for the challenges of the world
outside the academe.
INDIVIDUAL
Reflection
Nina Jane R. Pascual
In a world where change is constant and the demand to
innovation is endless, regardless of the field or path we chose, we
must remain steadfast in seeking growth and knowledge. And this
is something I learn on my journey as I continuously dream to
become a future Accountant.

As a student, it is expected that we provide an accurate

result with an ample given time. And it is without a doubt that
technology itself can make the same thing without exhausting so
much effort like human does. With the subject AIS (Accounting
Information System), we are taught that through incorporating
technology by means of different software like Excel and SAGE, we
can make a better and more sufficient output. Knowledge with this
kind of software gives us an advantage to work with less human
error, producing output in just a snap, saving up plenty of
paperwork and manual effort, and most importantly it gives us
chance to do more in other aspect of our business for it helps us
work sufficiently. And as to my experience working with this kind of
software, I can say that it will be of great help to every company who
will use it and it will work very well to their advantage even against
their completion. Because this kind of innovation, especially in the
field of Accountancy, will contribute so much in making every
Accountant's life easier and more systematic which will be
beneficial to every company they are under. They can easily provide
the internal and external users the information that the software
provides. Having the information handed to its various users means
possible more opportunity of investment, l everage, and managerial
advantage.

To sum it up, the whole experience that we have under the

subject AIS, where we get to encounter some of the software that
we can actually use on the actual field, is a great one that we get to
learn and undergo when we are still undergraduate. Having basic
knowledge with these applications will contributes to our readiness
and will makes us equip as we enter and perform in the actual
practice.
INDIVIDUAL
Reflection
Ma. Elena I. Guanlao
The Accounting Information System (AIS) course made us
explore the technical perspective of what we were studying for the
past 3 years in the Bachelor of Science in Accountancy program.

It is fascinating to explore how to maneuver and operate the

Microsoft Excel and Sage Software, because having some technical
knowledge of these applications could come handy when it comes
to the fieldwork and the real job, since we are accounting majors
and most likely to pursue a career on accounting.

The AIS program made me realize the power that Excel and
Sage brings in terms of simplifying a variety of accounting tasks,
and simplifying the job of generating useful financial information
for the interested users. Although, knowing how to operate the
software takes time to learn, once you get the hang of it, the job
becomes easy. Doing everything by hand, or the old-fashioned way
of generating financial information, is very ineffective and
inefficient: Ineffective—because it is more prone human errors and
if you did something erroneously, you have to trace everything back
manually, which is very tedious. Inefficient—because obviously, it
takes more time to get the job done and we risk the untimely
delivery of financial information to interested users, which could be
detrimental for the organization.

The course made us see a simulation of what a comptroller’s

job is, and it is both very inspiring and overwhelming to see the
entire class adjusting on the new set-up of learning and doing the
teamwork virtually, which, in my opinion, is more difficult than the
normal set-up of conducting group works. I think it made us go
outside our comfort zones, and aside from the technical knowledge
that we had acquired from the program, I think we also acquired
being resilient because we made it despite the difficult global
situation.