Software: MoneyWorks accounting software
Monitoring of fund allocation is never easy, especially when there are multiple funds and projects. A school may receive funding from MOE (Ministry of Education) to upgrade the computer lab, pocket money fund for the children, or allocate a fund internally to maintain the canteen. An easy way of tracking the funding is using the job feature in MoneyWorks, create a job code for each funding and tag it to a ‘client’, the organisation that giving the fund. Assuming you received a few funding from MOE in the year 2018, you may use a job code such as MOE1801, MOE1802, etc. to differentiate it.
Use a Receipt transaction to record the fund received and tag it to the job. The entry debits the bank and credits the income account. Then, use the job code in payment or purchase invoice transaction when there are expenses related to the job. Next, use the Job Allocation report, a new report in MoneyWorks version 8.1.5, to monitor how the fund has used once related entries have recorded.
Unlike external funding, internal funding requires to move the fund out from the bank and receiving back to indicate as a fund ‘received’ for the project. In the payment transaction, issue the fund out from the bank to a Fund Received income account, and then use a negative value on the second detail line to move the money back to the bank and tag it to the job. The payment debits the Fund Received and credits the Bank, and then debits the Bank and credit back to the Fund Received account. The transaction gross is zero as these are memo entries, you will see a deposit and a withdrawal when reconciling the bank which you can knock off without affecting the book. Similar to the external funding, you record the project related expenses via the payment and purchase invoice transaction and tag it to a job; then use the Job Allocation report to monitor the fund.
Job Allocation report helps monitor fund received and expenditures of both related expenses and assets purchased. Do consider upgrading to version 8.1.5 if job tracking is your priority.
Software: MoneyWorks accounting software
A stocktake is a physical count of your inventoried items and is necessary on a periodic basis, no matter how careful you are, the actual stock on hand may differ from the record in MoneyWorks accounting software.
The steps taken are:
- Enter and post all stock related transactions in MoneyWorks.
- Backup company file.
- Click the start stocktake process button.
- Print the stocktake list report from the reports menu for the physical stock count.
- Enter the stock count into the count column.
- Highlight all the items and click the finish stocktake button to finalise the stocktake.
- Print the stock valuation report.
- Lock up the financial period.
MoneyWorks create a snapshot of the current stock on hand once you clicked the start stocktake process button. Any stock related transaction posted after the start stocktake process will not affect the snapshot quantity, and the calculation of the quantity differences are between the quantity count and snapshot. It’s important to hit the start stocktake button on or before the financial year-end to allow the accounting software to capture an accurate quantity on hand, although you may not enter the count quantity immediately.
MoneyWorks will prompt to record a stock journal once you have finished the stocktaking, it will debit/credit from the inventory asset to the stock adjustment account stated in the journal. Then, print a stock valuation report and lock the financial period after completing the stocktake.
Stocktaking is an important process, consult your MoneyWorks consultant if you have doubt.
Reference: page 348 of the MoneyWorks version 8 User Guide, Stocktaking
Cognito has released MoneyWorks version 8.1.5 update. The complete change history (a list the bug fixes and improvements) of version 8.1.5 is available at Cognito website.
A project-based business may consider using the job tagging feature in MoneyWorks to track the profitability of each job. You can tag a job code to the income and expenses, and then use the new job allocation report which comes with the new 8.1.5 update to serve as cost control and monitor the profitability.
For a non-profit organisation such as charities and schools may use job tagging feature to track project like upgrading facilities or social works, and use the job allocation report to monitor how they have used the fund which given by the parent or government body.
Check with your MoneyWorks consultant on how to use the job tagging feature for your organisation.