Accounting software for Accounts Receivables and Invoicing

Generally, one of the most important aspects of developing a new accounting software is being able to professionally invoice your customers and control what you pay and for how long.

So this will be your second step, if you set up your ledger first, otherwise you will get started.

Your customers will need to set up some products before you can begin the actual process of invoicing with your new accounting software package, and then in this case, the customer pays the balance you pay.

Customer Balances in the Accounting system

There are often provisions in your accounting software to include customers’ initial balances.

The age test balance you print out of your accounting software should be the same as the list of brochures you started. If you make a mistake somewhere, skip an entry, or enter the same amount twice, and you start to use the package for the invoice without correcting the problem, you will find it hard to balance yourself. Don’t start invoicing in the accounting software before you balance your client’s balance.

If you can, the balance should be allocated to the current. 30 – 60 and 60 and above days. There should be provisions to include them in your system. By doing so, you can print a customer-ageing trial balance report from day one and customer statements from the end of the month. These are two of the most important reports of any accounting software package, because it shows you what time periods are owed and allows you to track old and outdated accounts. Remember – a customer owes you a long time and it is often difficult to collect.

Opening Your Customer Once you have balanced the balance of the accounting software, you can start the invoice.

If your accounting software is running in real-time mode (you don’t need to upgrade to General Ledger) you can go to General Ledger and see the entries after your first invoice. If you are running in group mode (like updating dates or something like that) then update to get the entries in the ledger for you.

Now go to the ledger and find the entries. Print a ledger financial report and see what has happened, where the entries have gone. Generally look at the profit and loss report as well as the trial balance.

Generating an Invoice in the Accounting system

A simple invoice for an account customer should have several simple entries based on the following.

The invoice was for $ 100.00 plus 10% GST. So the total is $ 110.00. The items you sell may cost $ 50.00 (excluding GST). The sale was in the customer’s account. The entries must match the following.

Sales (Profit & Loss) 100.00 Credit

Cost of selling (profit and loss) 50.00 Debit

Merchant Debtors (Balance Sheet) 110.00 Debit

Inventory (Balance Sheet) 50.00 Credit

GST Liability (Balance Sheet)

All add up to zero (equal to the sum of all the core values ​​and each entry has a corresponding counterpart elsewhere)

Recording Cost of Sales in the Accounting system

Some accounting software does not provide a simple approach to cost of sales, but there are three types of accounts – stock opening, purchasing, less closed stock. If so this will include a separate section opening and closing sections towards the end.

Assuming your system has a simple selling cost, you need to explain your entries themselves, but simply put two or three entries in the profit and loss section –

Sales

Management Price, Selling

(And GST will be added if your system works that way)

And three parts of the balance sheet (assets and liabilities)

All entries add up to zero. But in our overall understanding of the ledger, we find something very important.

All income or income accounts are credit

All expense accounts are debited

All asset accounts are debited

All liability accounts are CREDITS

There are some possible additions –

You may have charged a delivery or freight charge to your customer and may have used a rounded adjustment to round out your nearest 5 cents. Freight was a credit to both income and roundness.

Your accounting software can allow you to discount at the bottom of an invoice, thus showing you have a cost of sales.