New release! MoneyWorks version 9

Cognito has released MoneyWorks version 9. 

MoneyWorks accounting software runs on either Windows or macOS. It can be a standalone, installed in a client-server environment, or host it in a cloud. Having a cloud-based system could be essential these days when a majority of us is working from home.

What’s new in MoneyWorks version 9?

MoneyWorks version 9 has lots of enhancement, and the main changes include:

  • Optimising the performance when running in the newest Macs with M1 processors.
  • 3rd party services.
  • A Search function in the report preview window.
  • An integrated Fixed Assets module.

3rd party services such as Bank Feed, Invoice Automation, and e-invoicing (Send and receive invoices electronically using the international PEPPOL standard) can install easier into MoneyWorks without having a separate script. Although some of the services are only available for New Zealand and Australian user, it is a good start for all.

With a search function, you do not need to scroll up and down the report, looking up information within hundreds or thousands of transaction. Enter the keyword that you wish to find and the results presented to you within seconds.

It is not just a fixed asset register that shows the number of assets you owned. MoneyWorks fixed asset is a complete fixed asset module that allows the accountant to process depreciation, revaluation, and disposing of assets.

Fixed Asset software

Process the depreciation monthly or annually, or whenever you need to revalue or dispose of the asset, once you have set up the fixed asset. A journal posted automatically adjusting your asset value when processed.

We will discuss more on MoneyWorks fixed asset in our future post. In the meantime, you may download a trial to test drive the fixed asset (install version 9 onto a separate computer if you are still using an older version of MoneyWorks); or book a demo to find out how to using MoneyWorks to manage your business finance.

Visit the Cognito website to check out the change history of the MoneyWorks version 9.

Switch on the job feature to manage programs for the non-profit organisation

You can use the job feature in MoneyWorks to track the projects and programs for the non-profit organisation. Job does not affect the ledger posting but added an extra layer for the accountant to analyse the fund used and control the program expenses.

For example, you enter a payment to the supplier and tag the expense account to a job. The journal for the payment transaction debits the expense and credit bank. The ledger gets posted correctly with or without a job tagged, but with a job, you can print a Job Allocation report that allows you to overview the fundraised and how you have using it.

Tag payment to a job

Job is sort of like a sub-ledger. You tag the job in the sales invoices, receipts, purchase invoices, or payment transaction. That’s it! Let the accounting system do the rest of the work, linking to the appropriate ledger, and then print a Job Allocation report for the job to view how the fund allocates.

Job Allocation Report

Switch on the job feature from the Document Preferences (under the Edit menu) if you like to try it out. Then, go to the Show menu and select Jobs from the list to launch the Job List Window, where you can add jobs to the system. Once the job has added, you can start using it in transactions and monitor the financial progress via reports.

Small business accounting software these days are much affordable, and feature is more powerful than before. It has very much improved productivity once you understand how the system works. Sign up for a MoneyWorks demo to find out more.

Whether it’s standalone, within your network, or subscribe and park your company data in the cloud, there will be a MoneyWorks accounting product that meets your need.

Itemised discount vs a Lump sum discount

Software: MoneyWorks accounting systems

What’s the difference between trade and sales discount?

The trade discount is a discount given from the seller to the buyer for the goods purchased, an amount less off from the list price, whereas the sales discount (a.k.a. cash discount) is a discount given from the seller to the buyer on prompt payment.

Trade Discount

Depending on the accounting software, some may apply a lump sum or a percentage on the invoice subtotal, and some may use an itemised discount method when applying a trade discount.

Although the lump sum discount is simple and easier for data entry, the itemised discount method allows the management to analyse the profitability of each product or calculate commission based on a product margin basis.

Itemised discount

MoneyWorks accounting system using an itemised discount method, in which each detail line has its dedicated discount percentage. For example, when invoicing a customer for a product:
BA100 $100 with a 10% discount, it gives a total of $90.

Itemised discount on sales invoice

Assuming the product cost is $60, you can print a Sales by Product analysis report to show the cost, sell price, and margin (i.e. $60, $90, and $30). Besides analysing the product sales, you can also print a commission report based on product sales price or margin (e.g. 10% on product margin).

A lump sum discount

On the other hand, you cannot analyse individual product margin if you are using a lump sum discount.

For example:
You create a discount item (can be a product item type) from the item list and link it to the Trade Discount account (income type) or the Sales account.

Discount item

Assuming you created an invoice to the customer for:

BA100 at $100
BB100 at $130

and give a discount of $30, the invoice will be:

lump sum discount on sales invoice

Although the Profit and Loss report shows an income of $200, the product analysis report will show as (assuming both has the same cost of $60):

The analysis report does not include the discount on the product itself since it applied at the transaction level instead of the product level.

The itemised discount method gives an additional level of analysis, although both produce a similar income statement.

MoneyWorks is a powerful small business accounting system; book a demo to find out more.