The Consolidated Financial Statement appears in small business applications. Your financial institution determines whether a financial statement is required, optional, or not-applicable on a product by product basis.

For best results: Enter full financial statements (income statement and balance sheet) in order to get the most accurate scoring results and to ensure that the most appropriate credit policies are applied. If you only have a partial financial statement, it is best not to enter any information here.

Note: In the case of a sole proprietorship, you will most likely have only an income statement and no balance sheet available for the business. We recommend that you do not enter business financial information in this type of application. Instead, enter the income information as part of the financial data for the principal for the most accurate scoring results.

Click the icon at the right end of the business subsection heading bar and choose Open Consolidated Statements to open the Consolidated Financial Statement page and enter one or more financial statement periods for this business applicant.

If at least one product on the application is configured to use Baker Hill Statement Analyzer for statement spreading, click the icon and choose the Spread Statements option to launch Baker Hill Statement Analyzer and begin editing the historical statement for this client.

Note: If the business client has not yet been associated with a client record in Baker Hill Statement Analyzer, the Search for Statement Analyzer Customer Dialog Box is displayed, allowing you to search for an existing client or create a new one and begin spreading statements.

Statement Analyzer Integration

Your institution has the option of licensing the Baker Hill Statement Analyzer solution to be used in conjunction with Baker Hill Bank2Business. This provides you with the option to enable integration of the Baker Hill Statement Analyzer statement spreading capabilities with Bank2Business.

When enabled, the integration allows your institution to specify whether Baker Hill Statement Analyzer should be used for collecting financial data on a product-by-product basis. If a product that uses Baker Hill Statement Analyzer is added to a Bank2Business application, the integration changes some of the functionality available on the Consolidated Financial Statement page. Each of the sections that follow describe different features of the Consolidated Financial Statement page, along with an indication of whether Baker Hill Statement Analyzer integration is required for access to the feature.

Note: Statements spread in Baker Hill Statement Analyzer include a number of detail lines and “other” lines that are not represented in the summary statement presented on the Bank2Business Consolidated Financial Statement page. The way in which the Statement Analyzer rows are mapped into the Consolidated Financial Statement depends on the industry in which the statement is spread. Please refer to the mapping table for details on how the data is consolidated for a particular industry.

Required or Optional Financial Information

For each Bank2Business product, the Business Financial Information section can be required or optional. If Baker Hill Statement Analyzer integration is enabled, each product has the additional option of requiring Baker Hill Statement Analyzer to enter the financial data. These settings affect the way the Consolidated Financial Page behaves when you create a new application, as described in the following.

If business financial data is required and...

• The product uses the standard Consolidated Financial Statement, click Create Statement to generate the statement and create the first period.

• Baker Hill Statement Analyzer is required to enter the financial data, the Search for Statement Analyzer Customer dialog box opens automatically. You associate the business client in the application with a new or existing Baker Hill Statement Analyzer customer record, and then proceed to spread statements in Baker Hill Statement Analyzer for that customer.

If business financial data is optional and...

• The product uses the standard Consolidated Financial Statement, you see the check box option to indicate that no financial statement was provided. In this case, you have the option to create a statement or to mark the check box. Click Save to save the setting and return to the Application page.

• Baker Hill Statement Analyzer is required to enter the financial data, you have the option to check the box to indicate that no financial information was provided, or to click the Assign Customer button to open the Search for Statement Analyzer Customer dialog box to assign a customer record and spread statements in Baker Hill Statement Analyzer.

  Note: The business financial section is only available ( either required or optional) for the primary business.

Creating and Spreading a Statement

Use the steps that follow to create and spread a financial statement using the Consolidated Financial Statement page.

Note: These steps apply to the standard Consolidated Financial Statement only. They do not apply if you are using Statement Analyzer to spread statements.

1. Click Create Statement at the bottom of the page. The New Period Information dialog box displays.

2. Type the closing date of the statement period in the Period Ending field, or use the calendar tool to select the date. The Number of Months field defaults to 12, but you can change this value as needed to enter a partial statement.

   Click Accept to create the statement and first period.

3. The statement and period are generated as a table. The end date of the period and the number of months appear in the name of the period at the top of the column.

   • To enter values in any field on the statement, click the cell in the period you want to change, and type the value.

   • To save the value and move to another cell, press Enter or one of the arrow keys.

   Note: The user interface does not recognize parentheses when used to indicate a negative value. Use the dash character (-) before the number, as in -500, to enter a negative number.

4. For any line item cell in the statement, you can right-click on the cell and choose Explain to open a comment dialog box.

   Note: The Explain option is not available for total and calculated cells in the statement.

5. In the comment dialog box for the line you selected, enter a description of the “other” value in the text box. Click Accept to save your comment and return to the statement.

   Any cell that has an associated comment is marked with a yellow highlight. Use your mouse cursor to hover over the cell to see the comment text. Right-click the cell and choose the Explain option again to modify the text.

6. When you have finished spreading the statement, click Save at the bottom of the Consolidated Financial Statement page.

   Note: None of the changes you make on this page, including creating and deleting periods, is saved to the application until you click Save.

Statement Calculations

The Total Current Assets, Total Assets, Total Current Liabilities, Total Liabilities, Total Equity, Income Before Taxes, and Net Income fields in the Consolidated Financial Statement are calculated by the system — the system automatically completes these fields based on what you entered for other fields.

• Total Current Assets is the sum of Cash and Liquid Assets, Accounts Receivable, Inventory, and Other Current Assets.

• Total Assets is the sum of all the Assets fields.

• Total Current Liabilities is the sum of Accounts Payable, Notes Payable - Bank, Notes Payable - Bank, Taxes Payable, Current Maturities Long Term Debt, and Other Current Liabilities.

• Total Liabilities is the sum of all the Liabilities fields.

• Total Equity = Total Assets – Total Liabilities.

• Profit Before Taxes is Net Sales minus all the rest of the Income Statement fields (except Taxes).

• Net Income = Profit Before Taxes – Taxes.

Working with Statement Periods

Right click on the heading cell for any period to see the options available for working with statement periods.

Note: These options apply to the standard Consolidated Financial Statement only. They are not available if you are using Baker Hill Statement Analyzer to spread statements.

• Edit Period Information: Choose this option to open the Edit Period Information dialog box, where you can modify the end date or the number of months included for the selected period.

• Add New Period: Click this option to open the New Period Information dialog box and create a new statement period. The new period is added as a new column on the right-hand side of the table.

• Copy Period: Use this option to copy the existing period entries into a new period. You will have the opportunity to adjust the end date and number of months values for the copied period.

• Delete Period: Choose this option to delete the selected period.

Note: Any changes you make in the Consolidated Financial Statement, including the addition and deletion of periods, are not saved to the application until you click Save at the bottom of the page.

Options from the Decision Application Page

From the Decision Application page, you can click on the icon in the Business Summary section bar and select Open Consolidated Statement to open the Consolidated Financial Statement page. There are several differences in how the Consolidated Financial Statement works when accessed this way:

• If a statement was created and financial information was provided on the application before it was submitted, the Consolidated Financial Statement includes all the statement periods entered. In addition, there is a read-only column labeled Data Submitted for Scoring that reflects the statement data that was submitted the last time the application was scored.

  You can add, modify and delete periods and data from the Consolidated Financial Statement as desired. The read-only column maintains a record of the last data submitted for scoring, and can be used as a quick visual check for financial values that were changed in the Decision task. You can also right-click on any line item cell and choose Explain to add a comment about any changes you have made.

• If financial information was not provided on the application before it was submitted, the Consolidated Financial Statement shows the check box used to indicate that financial information was not provided. You can still add a statement at this point by clicking to uncheck the box. Click the Create Statement button that appears at the bottom of the dialog box to create the statement and first period.

  Note that when you add a financial statement from the Decision Application page in this way, there was no financial data submitted for scoring. However, Baker Hill Origination still adds the read-only column to the statement to indicate what values were submitted for scoring. In this case, the read-only column contains blank cells to reflect that no data was originally submitted.

Button Details

At the bottom of the Consolidated Financial Statement page, you may see the following buttons:

• Reset Customer: When Baker Hill Statement Analyzer integration is enabled, click the Reset Customer button to break the association with the selected Baker Hill Statement Analyzer customer record, open the Search for Statement Analyzer Customer dialog box and change the customer selection.

• Spread Statement: When Baker Hill Statement Analyzer integration is enabled, click Spread Statement to launch Baker Hill Statement Analyzer and spread the existing statement for this client.

• Refresh Statement: When Baker Hill Statement Analyzer integration is enabled, statement data in the Consolidated Financial Statement is read-only. Click Refresh Statement to refresh the consolidated statement with the latest data from Baker Hill Statement Analyzer. The Consolidated Financial Statement will show a maximum of six periods.

  Note: Only balanced historical statement periods are brought over from Baker Hill Statement Analyzer. Budgeted or currency statements, or historical statements that are out of balance in Baker Hill Statement Analyzer, are not pulled into the Consolidated Financial Statement.

• Create Statement: Click Create Statement to open the New Period Information dialog box and create a new statement on the Consolidated Financial Statement page. When Baker Hill Statement Analyzer integration is enabled, click Create Statement to open the Create Statement and First Period dialog box in Baker Hill Statement Analyzer. After you create the statement and first period, you can proceed to spread the full statement in the Baker Hill Statement Analyzer environment.

  Note: Although it is possible to create statements in units of trillions in Baker Hill Statement Analyzer, Baker Hill Origination does not support trillions as a statement unit.

• Print: Click the Print button to open an HTML version of the statement in a new window. The printable statement includes your financial institution name, the application number, the name of the business, and the current date and time. You can then use the browser controls to print the statement.

  When you have finished printing, close the browser window to return to the statement.

• • Save: Saves whatever edits you have made to this statement and returns you to the Application page or the Decision page, as applicable.

  • Cancel: Cancels any edits you have made to this statement during this session (that is, any changes you have made since opening the Consolidated Financial Statement page are undone) and returns you to the Application page or the Decision page, as applicable.

  • Help: Opens the User Help file to this topic.