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30 sats \ 13 replies \ @freetx 17 Feb \ parent \ on: Accounting Software Rec? tech
Sure, we are only using it for Invoices and Payments though.
We do balance our bank balance to it, but don't use the included "Bank Recon" module (not sure why we don't use).
....there are lots of other features like Inventory, Depreciation, Expense Accounts, Employees, etc that we don't use.
Hmm, okay. My intent on using a program like this is to keep track of my income and expenses. Occasionally invoices from jobs and such. May I ask how you organize yourself for taxes then?
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For income / expenses it will be fine.
We setup our required custom Chart of Accounts categories (under Settings -> Chart of Accounts). This is special Income and Expense categories we use. (Things like License Fee Income, Development Expenses, Internet Hosting Expenses, etc)
Then just setup your Customers and Suppliers and then when you generate Invoices it goes against a specific Customer (the line items on the Invoice relate to the specific Income categories we setup in Chart of Accounts).
Likewise for Expenses they go against your Suppliers and again with line items that correspond to the custom Accounts you setup.
May I ask how you organize yourself for taxes then?
We have an accountant. We just print out the year end reports and he enters all figures into his software that generates our tax forms.
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Would you be able to help me with setting things up? I want to make sure that I don't miss anything and there's a few things in the program that I just dont understand!
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Since I’m starting fresh in a program, I need to set an initial balance. I’m looking at my past bank statements and considering using the one ending on December 25, 2024, as my starting point.
Is it best to import all transactions first, or is there something else I should consider? Also, when should I do the reconciliation - after importing everything?
Additionally, how should I categorize transactions when money comes into the account from an external source and is then transferred to another external account?
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Yes use your end of year bank balance as your starting number for 2025
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Import all 2025 transactions? Yes probably best and then you can recon to end of Jan 2025 bank statement. Typically bank recons are done against the bank statements so normally can only do once month is ended. You won't need any pre-2025 transaction....
money comes into the account from an external source and is then transferred to another external account?
Is it an income for the business? and the outgoing is what? Expenses? Your personal payment?