Software: MoneyWorks accounting software
It’s essential for the job or project-based businesses to measure job profitability. It gives the business owner a breakdown of the job-related income, expenditures, and a bottom line of whether the job is making money.
You have an option of enabling the full job costing and time billing feature, or just showing the job column to enter the job references in the transaction when turning on the job function from the Document Preferences of the MoneyWorks accounting software.
By showing the job column alone allows you to tag a job code on the GL (general ledger) account when recording a transaction such as Sales Invoice, Purchase Invoice, or Payment.
On the other hand, if you do keep stock (inventory) for both trading and project, or require job sheet to enter the time cost or resources used; then turning on the full job function is a better consideration.
MoneyWorks debits the cost of goods sold and credits the accounts payable (or bank) when a product has tagged to the job in a purchase invoice (or payment). On the other hand, the product cost transferred from inventory assets to the cost of goods sold when the product transferred from the existing warehouse to the job via a job sheet entry.
Job account summary, job profit and loss detail, etc. are job reports which can print from the report menu once transactions have recorded; or you may create an analysis report from the File menu based on your requirement. It gives an income and expenses overview of the job and eases the tracking of the job profitability.
Sign up a free demo to find out how MoneyWorks helps manage your business finance more efficiently.
Posted in Accounting, Accounting Software Singapore, MoneyWorks
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Software: MoneyWorks accounting software
The recurring transaction is a transaction having the same accounting information which records into the accounting system on a periodical basis. Prepayment, accrual, depreciation, maintenance service, or rental invoices are examples of a recurring transaction. The accountant has to record the transaction manually when due or uses a recurring feature in the accounting software to automate the process.
For example, you invoice a customer for maintaining their office IT at $3,600 per year but only to realise the income progressively at $300 per month. In this case, you have to issue an invoice of $3,600 to the customer and charge the amount to a deferred income account (which is a current liability account type) instead of a sales account. This invoice debit accounts receivable and credit deferred income $3,600, and debit the bank and credit accounts receivable when payment received from the customer.
Next, enter a journal to debit deferred income and credit sales account of $300 and set the journal as a recurring transaction to record into the accounting system automatically when due for 11 more months. $300 will show in each month profit and loss report, and cumulate to $3,600 after the final recurring transaction has recorded.
Similar concept applied to the purchase invoice and payment. Assuming you paid for insurance which premium covers until next financial year. You can use the prepayment account instead of insurance expenses when recording the premium paid to the insurance company. The payment transaction debits the prepayment (which is a current assets account type) and credits the bank. Then, enter a journal to debit the insurance expense and credit prepayment for the next six to twelve months or until the premium ends.
The recurring transaction feature can apply on a Sales Invoice, Purchase Invoice, Receipt, Payment, or journal; the automatic process helps improve the productivity of an accountant and bookkeeper.
Sign up a free demo to find out how MoneyWorks helps to manage your business finance efficiently.
Software: QuickBooks Desktop accounting software
In our earlier post, we mentioned that QuickBooks is using the currency symbol set in the Window Operating System (OS) when multiple currencies feature is not turned on. That is, QuickBooks print £ before the invoice total if the setting in the Operating System is £.
However, QuickBooks will switch to currency code instead of the currency symbol when multiple currencies feature has turned on. For example, if you set the base currency as Singapore Dollar, which the currency code is SGD, all base currency invoices will print SGD before the invoice total instead of placing the currency code ‘S$’ before the invoice total.
Using currency code is better than currency symbol when involving multiple currencies. For example, the currency symbol for Renminbi is ¥ and Japanese Yen is also ¥; or US Dollar, HK Dollar, Australian Dollar are all using $. Whereas the currency code for these currencies is different; Renminbi is CNY (or RMB is also commonly use), the Japanese Yen is JPY, the US Dollar is USD, HKD for HK Dollar, AUD for Australian Dollar, etc.
As you can see using the currency symbol before invoice total is perfectly alright when your business is only dealing with the local currency, such as Singapore Dollar. However, having a currency code before the invoice total is less confusing when you trade internationally with multiple currencies.
Note: You cannot turn off the multiple currencies feature once it has turned on.
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