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Financials Essentials

The Banking Module is where all banking transactions are tracked and managed and the Accounting Module is where all accounts and ledger entries created for all transactions are tracked and managed by the accountant or anyone who is in charge of the company's finances.

Terminologies

  • Bank Account - Corporate or personal bank accounts where funds are drawn from or deposited to. Types of bank accounts include checking, current, savings and others.
  • Petty Cash - Any cash amount that can be disbursed and replenished. Petty cash disbursements are usually written on cash vouchers. In Connected Business, this is recorded as a Petty Cash Payment transaction. Petty cash accounts are replenished by creating a Petty Cash Receipt that records the petty cash replenishment as an expense.
  • eBanking - A process that exports the bank transactions in a CSV file for direct deposit.
  • Funds Transfer - A process that transfers funds from one bank account to another and record any expense for surcharges.
  • Bank Receipt - A process that records funds deposited from any source e.g. fund transfers, interest rates, etc.
  • Bank Payment - A process that records funds drawn from the bank account e.g. funds transfers, bank charges, etc.
  • Deposit Receipts - A process that records funds deposited from the sale of goods and other income.
  • Bank Reconciliation - A process that reconciles the current balance from the bank accounts with the bank account balances from bank statements.
  • Credit Card Gateway - also referred to as Merchant Payment Gateway. Credit card gateways facilitate credit card and debit card payments for customers on all sales channels - webstore, retail store and phone in orders.
  • Multicurrency - Set up option that allows you to choose selling currencies and define the currency format e.g. symbol, decimal places etc. and update the exchange rate of each selling currency.
  • Account Code -  Alphanumeric codes designated to each account.
  • Chart of Accounts - List of account codes grouped by Account Groups and Account Types.
  • Segmented Account - Account codes segmented by location, department etc.
  • Default Accounts - List of default accounts grouped by posting transaction e.g. receivable, payable, inventory etc.
  • GL Class Templates - List of specific accounts grouped by posting transaction e.g. receivable, payable, inventory etc.
  • Financial Center - A utility that allows you to review your financial status on different financial report layouts and filter criteria.
  • Financial Report Layout - Set up option that allows you to define the structure of your financial report e.g. Balance Sheet, P&L, Cash Flow etc.
  • Journal - Entries to the general ledger with details of the transaction that occurred. Journal entries, for the most part, are system-generated although manual entries and adjustments can be made. Journal entries can be created from posting transactions in Connected Business, can be made from scratch, a journal template, by recurring journal entries.
  • Prepayment - A process that generates entries for prepaid expenses.
  • Accrual - A process that generates entries for accrued income or expense.
  • Bad Debt - A process that records overdue and unpaid invoices as bad debt. Bad debts can be provisioned (paid for) or written off (removed from the records).
  • Batch Post - A process that posts entries to the general ledger. All journal entries generated in the system can be reviewed and modified until a batch post is performed that makes the entries final and permanent.
  • Audit Trail - A utility that allows the accountant or any one responsible to review new entries and any changes to the entries made by other users in the system.
  • Period-End Processes - A step-by-step wizard that allows you to complete a checklist of tasks to complete at the end of an accounting period before closing it.
  • Retrospective Analysis - A utility that allows you to review the key transactions e.g. aging of receivables over timeline.
  • Prior Period Adjustment - A process that allows you create entries to the previous period that was closed.
  • Prior Year Adjustment - A process that allows you to create entries to the previous year that was closed.
  • Stock Revaluation - A process that allows you to recalculate the stock costs from payable transactions based on the current cost from the bill you received.
  • Multi-currency Revaluation - A process that allows you to recalculate transactions in other currencies after the currency exchange rate is updated.
  • Tax Component - Various tax rates for sales and purchases e.g. State Tax, County or City Tax Rates that make up an overall tax rate for the sale or purchase of goods and services.
  • Tax Schemes - Overall tax rate made up of one more tax components ( tax rates ).

Features

From the Banking Module, you can:

  • Record and track bank account transactions.
  • Set up and process recurring bank transactions.
  • Deposit customer payments to chosen bank accounts. The system has a separate deposit routine for those who don't want customer payments to be directly deposit customer payments into bank accounts.
  • Transfer funds from one account to another.
  • Set up bank account defaults for payments and deposits.
  • Reconcile bank accounts with bank statements.

From the Accounting Module, you can:

  • Add new account codes and assign to the proper account group. You can set up accounts segmented by anything you define and add budget details.
  • Create and customize the financial report layout.
  • Journal templates (by percentage or value) for manual journal entries.
  • Set up and process recurring journal entries.
  • Generate entries for accrual transactions.
  • Generate entries for prepaid transactions.
  • Provision or write off bad debts.
  • Revaluate multi-currency transactions to the current exchange rate.
  • Revaluate stock costs to the current item costs indicated on the supplier bill.
  • View or print financial reports - Balance Sheets, Profit and Loss, Cash Flow etc.
  • Process all period-end routines in one go. Logs and reports can be exported into file.
  • Batch post entries.
  • Close accounting periods.
  • Make prior year adjustment so you can post into the last closed fiscal year.
  • View finance activities with the Audit Trail.
  • Set up tax schemes.

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