Tag Archives: Balance Sheet

MoneyWorks | Year end closing

Software: MoneyWorks accounting software

Based on the financial period set, MoneyWorks automatically transfer the net income, “Plus Current Year Operating Surplus (Deficit)”, from the current year to the Retained Earnings for the following year.

MoneyWorks Balance Sheet

To prevent users from accidentally recording current year transaction in the prior year (or period), you may consider to “lock” the period. From the Command menu, select the “Open/Close Period” function to lock the period. You can read more about the Period management on page 197 of the user guide.


A little “hiccup” in Tax report

Software: Reckon QuickBooks 2012/13

There is a little issue in Reckon QuickBooks 2012/13 Tax Report. It affects a handful of user who converts Sales Order in foreign currency with GST into an Invoice at a different exchange rate.

Assuming your home currency is in SGD (Singapore Dollar) and you created a Sales Order in foreign currency, such as USD (US Dollar), for an amount of US$1,000.00 at the rate of 1 SGD :1.3 USD with a standard rated GST of 7%.

If you convert this Sales Order to an invoice at a different exchange rate such as 1.5, the exchange rate captured in the Tax report will be different from the transaction report (or Balance Sheet).

In Balance Sheet, the transaction is captured at 1.5 exchange rates; tax amount is S$105.00 (1000 * 1.5 * 7%), which is correct.

However, in Tax report, such as Tax Detail report, it captured the transaction at 1.3 exchange rates; the tax amount is S$91.00 (1000 * 1.3 * 7%), which is wrong.

If you are converting foreign currency Sales Order to Invoice with GST at a different exchange rate; then, you have to be extra careful when preparing your GST report.

While waiting for Reckon to amend the reports, you can temporarily use these workaround solutions:

  1. Amend Exchange Rate in Sales Order before converted to an Invoice.
  2. Amend Tax report in Excel.

Amend Exchange Rate in Sales Order before converted to an Invoice.

Before you converted a Sales Order (which you have created in past month) to an Invoice, check to ensure the exchange rated stated on the Sales Order is the same rate as you are going to convert into an Invoice (usually is current month’s exchange rate). If the rates are different, change the exchange rate in Sales Order, save it, then convert it into an Invoice.

This will allow Reckon QuickBooks to capture the correct exchange rate for Tax Report.

Amend tax report in Excel.

Amend your Tax report; pull out the Exchange Rate field and Foreign Amount field into the report. Then, export the report to Excel.

From Excel, add a column and multiply the foreign amount field with the Exchange Rate field, then, multiply the result with the standard rated GST (such as 7%).

The tax amount payable in your amended tax report should be the same as your Balance Sheet tax payable account (some time you may have a slight differences due to the different in rounding between QuickBooks and Excel).

Balance Sheet by Class

Software: QuickBooks 2012 Premier (Canadian version)

One of the reasons why you should consider QuickBooks Premier instead of QuickBooks Pro is that QuickBooks Premier allows you to print Balance Sheet report by Class (if Classification feature is part of the reasons why you buy QuickBooks).

“Class” is a powerful feature in QuickBooks. Usually, we use Class as an Income/Cost center to break down our Income and Expenditures (Profit and Loss report by Class).

Law firm can use the Class feature to break down the Income and Expense of an individual lawyer. Wholesaler who had a fleet of vans selling disposable plates, bowl and plastic bag to the hawker and seller at the wet market can use Class to track the Income/Expenses of the individual van (revenue from the mobile salesperson). Class can be used for project, tracking of income and expenses of a property launch, an exhibition, and a revenue source from local sales or exporting of goods.

Now, besides using Class feature to track the income and expenses (Profit and Loss by Class report), you can use class in Balance Sheet report too (Balance Sheet by Class report).

Assuming we have an income of 10,000.00 and Accounts Receivable of 10,000.00 in Class A; and we have an Expense and Accounts Payable of 3,000.00 in Class B.

When printing Balance Sheet by Class report, Class A will clearly shows the Accounts Receivable of 10,000 and a Net Income of 10,000.00. Under Class B, Accounts Payable shows 3,000.00 and a Net Loss of 3,000.00. Hence, the Total will shows the consolidated Accounts Receivable of 10,000.00 less the Accounts Payable of 3,000.00, and it balanced off with a Net Income of 7,000.00.

Click here to find out more about QuickBooks Premier 2012.