The reports of earnings and sales

July 17th, 2009

profit and loss, balance, balance – what do they all?

A statement of profit and loss (P & L) is a summary of all income and expenses of an enterprise during a period of time’ After a period of loss or gain of the company is calculated by subtracting the total cost of the total revenue’ The period in question could be any time but is usually one month, a quarter of a year (3 months) or a full year’ Both income and expenditure can be demonstrated in the amounts listed for each account or summary form’ AP & L, not only information on whether a company is profitable or not, but a P & G may indicate why a certain result is reached’ The amount for each type of income and each type of expenditure can be compared to a standard’ The rule in May of a budget or a relation or comparison of the industry’ These concepts will be discussed later in the series’

A balance sheet (BS) of the assets, liabilities and net worth of a company at any given time’ Again, the point in time can be any day, but in general it was reported at the end of the month, quarter or year’ BS A sample at all times that the company owns (assets), what the company needs to others (liabilities) and the net position of the firm (capital)’ The results of the equation can be represented by:

Active? Liabilities = Capital

In other words, if the total assets is greater than the total liability then the owners are positive or positive equity ownership’

An equilibrium is a list of all accounts in the transactions (income, expenses, assets, liabilities and capital), their balances at a particular point in time and if the balances are debits (Dr) or credits (Cr)’ Balance, as its name indicates, always equal, and the balance of Dr’ Cr

Ledger, debtors ledger, creditors ledger

The general ledger (GL) is a list of all transactions, the account name entered into a period of time’ GL contains all transactions of a company and is used to discuss the details of income, expenses, assets or liabilities’

Debtors and creditors ledger are the types of sub-ledger’ They are called car, and that are subsidiaries or part of the GL’ The debtor, also called accounts receivable (AR) ledger, the details of all customers who owe money to the company’ Details include all sales, all payments received and the balance to pay for each customer at any time’

By contrast, creditors ledger, also known as accounts payable (AP) ledger, the details of all suppliers to whom the firm owes him money’ Details on all purchases, all payments and the outstanding balance of the verses to each supplier at any time’

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Difference between the Journal and Ledger

July 14th, 2009

Journal

1′ It is the first book of entry’

2′ Once the transaction is originating, is recorded in the register

3′ Transactions are recorded in order of appearance, ie, strictly in order of dates’

4′ Story (brief description) is prepared for each entry’

5′ Folio ledger is written

6′ The information can not be determined easily, for example, cash in hand can not be found easily’

7′ The final accounts can be obtained directly from the newspapers’

8′ Accuracy of the books can not be tested’

9′ Debit and credit are recorded in the adjacent columns’

10′ Two columns of newspapers for a total flow of credit to another quantity’

11′ Journal is not balanced’

12′ With the computerization of accounting journal can not be used for transactions such as income, purchases, sales, etc’

Ledger

1′ The final product of the input’

2′ Transactions are displayed in the same after the general ledger were recorded in the register’

3′ Transactions are classified according to the nature and fall into the accounts’

4′ The story is not necessary’

5′ Folio magazine or newspaper in the letter’

6′ As the nature of the transactions are grouped in one place relevant information can be determined’

7′ Ledger is the foundation for the preparation of final accounts’

8′ Accuracy is tested through the list of books balance’

9′ Debit and credit are recorded on both sides of two different accounts’

10′ Ledger in two parts: left side right side of credit is a debit’

11′ Any account in the book is balanced in a timely manner’

12′ The general ledger can not be avoided’ However, it may be loose or a piece of log book’ Larger one indispensable book’

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What accountants and doctors have in common

July 11th, 2009

qualified graduates of accounting at the request of the interviewer “Are there questions you would ask?” usually respond with “What are my rights and responsibilities”

Be careful’ Some interviewers intentionally mentions nothing about the duties and responsibilities To test the response of candidates’ The less confident in the face’

Generally candidates respond: “You’re lucky, I am an investigator and an accountant training’ So I can say what the duties and responsibilities of an accountant ”’ but if I’m the boss’ I know nothing about of accounting’ A friend, I applied for an accountant on Monday that the company is growing’ Now do not you tell me what the meter is supposed to do’ Is not it a profession? not teach you things like that in school’ Imagine if our society is the recruitment of a doctor in the house and the candidate asks: “What does a doctor do?”‘

Another issue for the favorite candidates for the interviewer “Are your accounts up to date?”

I quickly replied, “No’ They are very late and very dirty’” And see the reaction on the face of the candidate’ Some show a lack and insecurity’ And then added “if our bills are so beautiful and we do not need to update an accountant with us?”

Candidates must learn to listen carefully and place of all the problems by the investigator during the interview’ If there is a phrase your question carefully and ask the question mark at the session open’

Do not think about the problems you may have heard, read or whatever from somewhere and ask the interviewer’ Remember, after two or three years can have a reunion at the other end’ Think about what you like in a candidate during an interview’

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Enjoy your event – Definition of rules for their payment

July 8th, 2009

Frank Richards is a management consultant specializing in business service level agreements’ Last month, four seminars were held in major Australian cities, but found that the ticket money does not cover their costs’

In these days of instant payment that you believe that the problem of arrears of rates is a major problem’ Unfortunately, the days of instant payment does not coincide with the days of red tape, without the purchase ledger accounting’ Companies have their own internal rules on the collection of claims and May to take over 90 days to remove all obstacles’ Although this is probably one of the best reasons for the issuing of invitations to delegates from companies with more than three months before the event, which leaves you with the dilemma of what to do with the failure of the delegates’

The answer, like all financial matters, is to have a set of standards that the contracts are sent to the production of documents, the confirmation of registration, assembly instructions and other communications that you share their delegates in May’ There is nothing complicated about the wording, you all been? If payment is not received 21 days before the event, will not be a place reserved for the delegation?’ Choose your time realistically, if you alienate potential participants in May, knowing that his department can not meet the criteria’

Appoint an administrator of your computer as a credit analyst to keep an eye on late payments and do their job to make calls more often to ask how to delegate the payment is in progress’ This pressure is usually only expedite payment to the delegate does not want to lose their place in the event and its use to the payment terms coax money from the accounts’
What to do about late payment

In extreme cases, delegates will make their powerlessness against the moneyman who are against any party with the child in turn’ This is your opportunity to be magnanimous and allow delegates to attend the event and bring a check or cash with them, even deliver to the door’

Note that the bad debt in Australia can be measured in trillions of dollars each year and the main reason is poor management of debt, which means that people often are not sufficient to allay buyers offenders’

Therefore, be tough and strong, an event is an instant product, consumed as it is done’ If you receive your payment, a comment that you can afford, perhaps, of all players who are providing goods and services to make this event a success? You can not ask for the product will be refunded’

Be polite and understanding, he has a place on one side of an event or one-on-one counseling as an alternative’ Be as flexible as possible, but soon non-compliance by the relaxation of the rules of your organization who can not get their act together’

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Basic accounting concepts – Knowledge of Accounting

July 5th, 2009

The book contains an entry for every transaction ever made by a company’ The great book of first entry should be the business transaction and should be updated as often as necessary to ensure that each transaction is recorded’ Since the book has all the information about each transaction in the field of history, is at the heart of all business activities, accounting activities’ Balance sheets and income statements are derived from the information contained in the ledger’ Each entry has the following information:

* The date of the transaction,
* The balance of the operation, and
* A description of the operation

Entering this information is called “mission” of a transaction and the entry itself is considered a “post”‘

May, the book largely consists of sub-records or accounts’ Examples used are sub-books of accounts receivable records and sub-sub-accounts payable records’ Every transaction that posts in the general ledger or the two sub-book and ledger’

When a book is created for the first time, the value being placed on the balance and balance of all sub-entries must be carefully determined’ The value of the assets of a company, such as money and equipment, for example, should be included in the balance from the underlying asset book’

A company ledger should be updated to include new transactions as often as necessary to prevent the process of being cumbersome’ Sometimes a sub-register should be updated more frequently than any other sub-book’

When using a method of double counting, a method based on the equation of the accounts, the book is targeted by two positions for each transaction in two sub-registers or books’ This method is beneficial because it ensures that the accounts are kept in balance, and errors in accounting are quickly identified’

If maintained, the general ledger can be a great resource for searching, verification and identification, even if the transactions were relatively long’ For example, if the accounting and reporting verification of a company, or external or internal, a care book can be a source of detailed history of transactions’

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Ledger Software

July 2nd, 2009

The general ledger software may generate a balance sheet and income statement, it is the status of each account and provide a good balance’ Thus, the software helps to maintain the integration between the application of these accounts, while maintaining control and balance’

Therefore, if income or capital expenditures, account balances are maintained on a daily or even chosen for the child also has the account name where it should be changed with the child head to the account’

Similarly, the general ledger module is a module and give an advantage to be integrated with other modules’ It also provides a facility for the production of all entries through the entries made in the newspaper’ Therefore, they can be transferred directly to the general ledger module’ This, in turn, can also be updated for other modules’ Similarly, comparative analysis is based on data records of the previous year, the comparison is easy through software’

Additionally, this software contains the account of the head and column followed by the transaction debit and credit entries from the same’

The amount of the transaction to the overall balance that is in the child’

Additionally, this software provides security based on work by users of the results, account number and using the same survey only access’ Therefore, there are three main aspects of security in the form of access to employment, the account number based on the use and access survey’

The general ledger software for the display in various modules, such as:

- Accounts receivable (debtors)
- Accounts payable (creditors)
- Capital
- Cost of employment
- Payroll
- Extension of accounts, etc’

Besides, the state bank collects, verifies and posts general ledger data in the reconciliation process’
Some features ledger software are:

- Verification
- The ease of reversal of entries
- Statistics changes
- Interface spreadsheet
- Integration with other applications,
- States defined by the user and the benefits
- Module enough to accommodate up to a thousand companies’

RTS – Advantage General Ledger module is an example of the programs easier to use’ In this sense, the user can have many ads and an unlimited number of accounts that result in a large number of digits that follow-up message in the book’ At the same time, multiple entries can be placed in the same period, while net profit could also be referred to the hand or automated system, when calculated by the book’ This result opens the way for automating the generation of different departments and account’

Before the tickets are tracked and credited to accounts of the historic and ongoing updates to keep all the financial data as possible’

Thus, the general ledger software keeps track of all entries made into account and the net income generated accordingly’

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Accounting Ledger and How to Write Better

June 29th, 2009

The first stage of the transaction log is Journalized and the second step is to see the transactions in the ledger’ Ledger was known as the director or the head “book of accounts’ In the general ledger financial information is classified according to their nature and relevance’

The assertion that the records of the operations of the parents in one location to a particular topic is known as the account’ The book contains all general ledger accounts are known and the procedure for the preparation of these accounts is called the screen’

The book is the most important book of the account and the fate of the entries made in the Official Journals or sub-divided’ This is a collection of three types of accounts – personal, real and nominal’ If you are faced with questions such as:

- How much should a client?

- What is the amount you pay for all of your suppliers?

- What is the quantity of goods purchased by you during the period of time?

- How many sales you have touched, for example, three months?

- What were your expenses, for example, the labor force during the period?

Then the easiest and fastest way to determine the relevant information back to his great book, find the balance A customer / supplier co A / oc Shopping / c or sell a / c salaries or A / C’

How to Write Better

We must maintain the general ledger accounts’ Each account is assigned one or more pages, depending on demand’ The ledger is usually held in each of these two alternatives’ First option applies in cases where the balance after each transaction, such as banks’

Second option is to follow in cases where the balance should be periodically, eg after a month or every quarter’ In his study of the keeping of books and accounts of T-shape shall be used (two alternatives)’

These transactions are recorded in the ledger in the order of dates’ Each entry must be dated, which is shown in the column of days’ This is the first column to the left of each side of the account’

Enter the amount on the left side of the account, the paper burden and the record on the right side of the account, the magazine is to be credited (using “quantity columns for this purpose)’ In each account in the ledger on the rate of input (left) and part begins with the word “a” and a credit (the main right) part of the word “Al”‘ The column details are referred to another account in question to provide cross-references’ In column folio “is entered on the page of the magazine (or newspaper page split) that the entry was published in the newspaper and column folio, page number of the big book that is written about it seems relevant’

Following the procedure for registration of entries in the ledger, in fact, the amount in this account of receipt of the benefit in the form of cash or goods flow and the inculcation c ie, giving the advantage to receive the credits’

The author is an engineering graduate, BE (Hons), and manages its own software development company, HiTech Services, which focuses on accounting, billing and inventory control software for traders, industries, business houses, hotels, hospitals, medical supplies, newspapers, magazines, petrol pumps, automobile dealers, brokers and other sectors, the website of Web applications deveopment business’ The software is available both for intranet and Internet’ This software is available for download at:

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Balancing the accounts and the need for more

June 26th, 2009

The balance of accounts

Where appropriate to balance the account, both parties joined, and if the total of both sides are not equal, the difference is then placed on the side with less total’ Will be two equal parts’ The added amount of the difference is known as “balance” account’ In the column details, said that the balance c / d (loading)’ In the aftermath, known as balance supply (reduced)’ If the total amount credited to this account is lower, the balance will be included in the claim to the word “Balance c / d”‘ This is called the balance and the balance after the closure of the account, to be published in the stream with the “To supply’” Even if the total debit of the account is lower, the balance will be included in the flow by “Balance c / d”‘ This is called balance, and balance after the closure of account, the credit will appear with the words “offer for sale’”

Personal accounts

It is useful to refresh your memory and remember that the personal accounts related persons and entities (partnership, corporation, etc’) and the norm is to charge the receiver and the donor must be accredited’ Now, if a date in the business world wants to know how the amount is “due” or “because of an individual to own (business), then you must balance the account of the person’ Balance of the account debtor means that the person is liable for the company, ie the person responsible for an amount equal to the balance of the company or the amount representing the balance due the company by the person’ Similarly, the balance of the credit means that the person is a creditor of the company, ie, firms need an amount equal to the balance of the person or the amount representing the balance due for the company person’

Account

These are the accounts relating to ownership or possession or rights’ The rule is: “What is to be in the flow and fate is what is credited’” Therefore, all revenue should be recorded on the flow and spending on credit’ At a date for these accounts must be “balanced” that represents the value of the hedged item in the account’ At the end of the year (usually) or at any time the financial position of the company is required to be audited the accounts are balanced’ These balances are presented in the assets of the statement of the position or balance sheet’ These accounts are the “balance” which means “value” or “in writing the value” or “business continuity of corporate value on that date’

Nominal accounts

These are accounts that show the various heads of expenditure and sources of income’ At the end of the period (usually one year), these accounts are closed by the transfer to the final, ie accounts and profit and loss account’

Need for Increased

The maintenance of the work is a necessity in every system’ Is required, as distinct advantages:

(1) Transactions with the family of a person, issue or position of the expenses or revenues are grouped into the site’

(2) At each regular account is balanced to reflect the net position of that account’ For example, what is due from a client or how much is paid to a vendor or what is the value of total purchases, or what is the expenditure on salaries? This information is available through the balance of general ledger accounts’

(3) Mayor is the springboard for the preparation of balance, which tests the accuracy of arithmetic’ Of accounting’

(4) Since the entries stored in the journal of the book refers to the possibility of mistakes or to minimize embezzlement’

(5) Mayor is the fate of all entries made in the newspaper or magazine under’

(6) Mayor is the “home-shop of all information which is then used for the preparation of final accounts and financial statements’

Entry and mailing’ In the case of an existing business, we are compelled to pass an entry in the register (on the balance at the end of the previous year) to attract new books of all assets and liabilities: open entry of the call’

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Basic accounting for small businesses can save money

June 23rd, 2009

the book is to save the first transaction income, purchases and money’ The books and documents to prove these operations are called the documents for the first time in the business of books by an accountant’

Recording income

A bill of sale is a document’ In the most advanced technical terms such as day books, records, accounts receivable and credit control are important, but at the level of basic books and is the act of recording the number of business books ‘

One day of sales is a magazine sales invoices issued by the company and the logging level of financial transactions is all that is needed in May for a small company’ A simple list of these bills, which is described in a single system’

A system is a system of single entry with a minimum assay of total turnover’ An accountant or accounting entries in May these smaller organizations, but the documents are often maintained by the owner of the company’

Larger organizations in May days and keep the books, but also enter into a billing system and software to do so’ In the package of financial accounting, sales not only appear as a list of the total income, but you can also register for sales’

Each invoice shall be allocated to individual customers’ The debtor, in this moment represents the value of the goods or services sold to each customer’

Purchase invoices

A purchase invoice is a purchase and a book is an updated list of purchase invoices received from suppliers’ The invoice for the purchase of books days no financial analysis of the types of expenses’ As such, a simple book buying days would be a good starting point for a simple set of accounts, but require a little more sophisticated analysis required by type of expenditure for the financial and budgetary control’

A system for the purchase invoices is a single-entry system has also had columns to analyze spending in the categories of expenditures required by the tax rules under which the accounts have been prepared’

Medium and large organizations need to monitor and control of purchase invoices to control costs and payments’ In a mirror of the sales ledger invoices also be used by the supplier in a purchase log’ The easiest way is to assign a number to each supplier of code for the software can recover amounts owed to each supplier, vendor ledger accounts to purchase’

Cash and Bank

Apart from the mere entry of sales and purchases is to register a company in its books of receipts and payments and banking’ The third field is the largest bank in the reception or slipping, given or received’ May these documents take many forms of body roll under a deposit to a bank, but all are evidence of money changing hands’

In a small business, cash and banks can be kept separately to other premium accounts’ In a simple model of the box or the bank that would be similar to banks, but the names of customers and suppliers, or if multiple clients, for example, then the source of the money received or paid’

Large organizations, in particular, using software code and the receipt of each payment to the same customer and vendor code used to produce the sales ledger and purchase ledger’ In addition to saving money and banking of cash and bank accounts of money received and paid are also recorded in the register of sales and purchase ledger’

By recording the cash and bank transactions in the books of customers and suppliers documents that make up the books and then show the balance of each account and the recording of financial transactions in this way is the other side of system of double entry’

A small company does not require sophisticated accounting and financial control for the use of a single entry as opposed to a system of double entry accounting income can simply store the list of sales invoices and payments in the list of bills purchase’

Basic accounting using single entry of the first document would be appropriate for small businesses, needs very little knowledge of accounting and when they are paid by the owner of the company rather than an accountant or an accountant can save money,

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SQL Ledger Accounting

June 20th, 2009

SQL is a general ledger accounting and financial accounting based on the database server SQL, and the city including the SQL database: MySQL, Oracle, Microsoft SQL Server, Firebird , Interbase ”’ SQL Accounting will be the same characteristics:

Character # 1 – Powerful and scalable’

They are powerful database engine that can process and store large amounts of data connections at ten to several thousand access at the same time’ No file system can not match that requirement’

Character # 2 – They use the SQL syntax’

All major databases SQL syntax, so he asked the SQL database! SQL Query Language is structural, a list of commands to retrieve, process and data storage’

Character # 3 – The drivers available for different compiler’

SQL database drivers offer different types of compiler, most large companies software vendor should be able to communicate with it, eliminating the need for API or SDK for integration, import and export can not be eliminated as well’

Accounting rational function is the same, but in general ledger accounting SQL allows greater flexibility, faster integration, better and safer to store user data’ The company should migrate to SQL Server for the accounts of the benefits of better integration with other management software, reducing the need for human intervention’

Among the software SQL, there are some providers comes with source code’ These types of systems are especially important for the development of software and provider of society in the development team of the development team’ Some benefits are listed below:

Advantage # 1 – fast’

Developers can integrate the existing software, faster and easier access to source code, and if necessary change, developers will be very flexible to change, improve or remove components in the source code to adapt their accounting needs’

Advantage # 2 – Free’

This software usually comes with royalty-free license, it means the company can use or sell the source code without having to pay more seller! In the long term, the company will save thousands or even millions of dollars each year’

Advantage # 3 – Re-brand power’

Software company, you can redial the origin of its name and its customers will not notice any difference’

There are still many benefits, but the bottom line is: You have full control of your software and save thousands of testing, development and debugging hours with one time payment!

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