Tag Archives: mac accounting software

Financial year-end

Software: MoneyWorks accounting software

Financial Year (aka Fiscal Year) consist of financial periods used to calculate annual income statement for businesses. If you are following the Calendar month, then your financial year-end closing is December.

During financial year-end closing, besides preparing the accounting schedules and post all transactions, you have to do a stocktake, bank reconciliation and set a closing exchange rate.

Do a backup before you start a stocktake process from the command menu of the MoneyWorks accounting software. You have to do the stocktake process before your new financial year. Once the stock count has entered, complete the stocktaking process by activating the Finish Stocktake from the Command menu (ensure dated as the start stocktaking date). Then, print the Stock Valuation Report (usually I will keep a PDF copy as well) and backup your company file.

stocktake

You should reconcile your banks that are in foreign currency before set the exchange rate for the year-end closing. Once you entered the exchange rate, MoneyWorks will automatically generate unrealised exchange gain/loss journal to adjust the banks, accounts receivable and accounts payable which are in foreign currency.

Backup and lock the period once you have completed the financial year-end closing to prevent other users from recording transaction into the wrong period.

Merry Christmas!

Discountable

Software: MoneyWorks accounting software

Turned off the Discountable option in an account if you do not want an invoice line coded with the account to be eligible for prompt payment discounts.

[Refer to Page 37 of the MoneyWorks v7 User Guide for more information.]

Discountable works with the “Prompt Payment Discount” (In the Pricing & Term tab of the Name). Assuming the customer enjoy 10% discount, all items except freight charges, if he settles his outstanding within 30 days from the invoice date. You can uncheck the “Discountable” checkbox of the Freight Charges account since it is not eligible for a discount even the customer paid within the payment terms.

discountable

Let’s say the detail of an invoice (Price is inclusive of 7% GST):

Item 1 at $3,210
Item 2 at $7,490
Freight Charge at $535
Total of the invoice: $11,235

When the customer pays within the given terms, the discounted amount will be $10,165. That is:

3,210 + 7,490 = 10,700 – 10% = 9,630 + 535 = 10,165

The “Discountable” feature helps prevent giving discount accidentally on a non-eligible account.

 

 

Fixed Assets account

Software: MoneyWorks accounting software
When purchasing an asset in foreign currency, you need not convert manually into a home currency value before recording it into the MoneyWorks accounting software.

The currency type of the Bank, Accounts Receivable and Accounts Payable account can be in foreign currency. Therefore, when you record a purchase invoice with a supplier that has a foreign currency set as a transaction currency, MoneyWorks will convert to a home currency value based on the exchange rate set.

For example, you purchase a machine at US$60,000. You record the purchase invoice into MoneyWorks at an exchange of 1 Singapore dollar to 0.74 US dollar. The double entry will be:

Debit Machinery 60,000.00
Debit Machinery 21,081.08
Debit GST Input 5,675.68

Credit USD Accounts Payable 64,200.00
Credit USD Accounts Payable ~~ Del 22,556.76

fixed-asset-entry

S$81,081.08, the Machinery cost, will print on the Balance Sheet report. The USD Accounts Payable will follow the rule of the exchange gain/loss, whereas the fixed asset will maintain in home currency.