Contents
- Getting Started
- Quick Start Guide
- Video Tutorials
- Operating Procedure Templates
- Sales
- Operations
- Sales Plans
- Requirements
- Job Cards
- Complete Works Order
- Pick Sales Orders
- Dispatch and Invoice
- Customer Receipts
- Send Purchase Orders
- Create Purchase Orders
- Receive Goods and Create GRN
- Process a Stock Invoice
- Process a Supplier Invoice
- Supplier Payments
- Create a Supplier Account
- Create a Stock and Order Item
- Manufactured Items
- Suppliers Tab
- Ad-hoc Purchases
- Expenses and Cash Purchases
- Payroll
- Frequently Asked Questions
- What should I do with my bank statements?
- How do I account for factoring?
- What should I do with supplier statements?
- How do I claim Expenses?
- When should I use Expense Claims rather than payments from a Director’s Loan account?
- How do I reclaim the cost of using my car on company business?
- Do I always have to create an Employee account?
- Which PAYE Tax Code should I be using for my employee payroll?
- Which National Insurance Category should I be using for my employee payroll?
- What is RTI?
- How do I check my VAT Return?
- When do I use Cash Sales rather than a normal invoice?
- How do I delete a sales order that is part complete?
- Do I credit or refund?
- How do I transact a VAT only purchase invoice or credit?
- Which Bank Account do I use?
- When do I use Asset Items?
- Which Customer VAT Type and Stock Item VAT Rate should I use?
- Implementation Support and Training
- Business Planning & Cashflow
- Part 1 Basic Principles
- Starting Up
- Starting Up – continued
- Starting Up – continued (2)
- Key Points
- The Matching Principle
- The Matching Principle continued
- The Prudence Concept
- Cash vs Profit
- Cash vs Profit continued
- Cash vs Profit continued (2)
- Cash vs Profit continued (3)
- Cash vs Profit continued (4)
- Cash vs Profit continued (5)
- Part 2 Pricing, Variable & Fixed Costs, and Simple Breakeven
- Part 3 Working Capital
- Part 4 Investment Appraisal and Simple Payback
- Part 1 Basic Principles
- Guide to ERP Software
The application treats anywhere that money is kept as a bank account, so this could be a true bank or building society account, a credit card account, a petty cash tin, or a shop till, indeed you may have a number of tills set up as separate bank accounts.
Movements of money between these is processed via Bank Transfers, so that could be paying off the credit card from the bank current account, banking the day’s takings from the till, or cashing a cheque for the petty cash.
When receiving payments from customers, think carefully about which bank account this is being received into for example if they are paying electronically or by credit card, then it will likely go direct into your bank current account, but if paying by cash or cheque, it may all be going into a till initially, and then being banked later, so you will need to reflect that in your accounts by posting the payment received initially into your till (bank) account, and then making a Bank Transfer from till account to bank current account for the amount banked; if done properly, the amount showing in your till (bank) account should be the actual amount left in your till.
When making payments equal care should be taken in posting the payment to the correct bank account, for example payment made with a credit card will be taken from the credit card (bank) account, but payment made with a debit card will generally need to be posted as coming from the bank current account in the same way as cheques.
Payments made by cash would normally be posted as coming from the petty cash (bank) account, but in many small firms owners and directors often make payments out of their own pockets so you might want to set up a Director’s Loan (bank) account for anyone who does this on a regular basis, so that the payment can be posted as coming from that account, and the balance on the Director’s Loan (bank) account therefore represents the money owed to that individual (see also How do I claim Expenses? and When should I use Expense Claims rather than payments from a Director’s Loan account?).