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Tutorial Index
Main Contents:
Welcome
Introducing hontreasurer.com
Online Manual
How
Do I?
HELP!
- I'm Stuck!
TUTORIAL
The
Forum
TO DO List
TUTORIAL Contents:
Introduction
Preferences
> Setup
> Roles
> Users
Activity Names
Accounting
Categories
Activities
Accounts
Statuses
Members
(Contacts)
Posting
>
Cheque or Cash Received
>>
Against
Invoice
>
Cheque Written
>>
Against Invoice
>
Cash Paid
>
Cash from Cash Account to Bank
>
Cash from Bank to Cash Account
>
Cash Banked
>
Bank Transfer In
>>
Against
Invoice
>
Bank Transfer Out
>>
Against
Invoice
>
Account Transfer
>
Bank Interest Received
>
Opening Balances
>
Opening Income &
Expenditure
>
Invoice Sent
>
Invoice Received
The Bank Reconciliation
Transaction Enquiry
Balance Enquiry
The Year End
Reporting
Submit a Question ..
we'll do our best to answer it!
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In this
Tutorial so far, we are lucky enough to have started from scratch. But
what if
this organisation has been going some time - and there are previous
years? The recommended method is to start a new year fresh and, when
the final numbers are available for the previous year, put them in as
Opening Balances. Meanwhile all profit & loss reports will work
fine for the current year.
OK, lets assume a fairly simple situation where the accounts for the
last year before hontreasurer.com show a bank balance of +5700.00 and debtors
of 600.00 and creditors of 1200.00. This will therefore probably show a
retained profit of +5100.00. The terms used may be different on your
case.
WARNING! Be careful to post only
a set of transactions whose total is zero using Post Opening Balances.
To put the above example into hontreasurer.com, fire up the system and choose
Transactions/Account Transfers/Post Opening Account Balances. The date
should show as today, the contact as us, the treasurer, the activity as
"Transfers between Accounts" and the year as the current year. We are
going
to post, in the current year:
- 5700.00 to the Current Account, so set the Account to
the current account and the amount to 5700 and press OK
- 600.00 to the Debtors Account, so set the Account to
Debtors and the amount to 600 and press OK
So far, so good, but now some thought is required. We now want to post:
- -1200.00 to the Creditors Account. Why negative?
Because hontreasurer.com always treats money going out, or due to go out, as
negative and money coming in as positive. With one
exception which is just coming up. So set the account to
Creditors and the amount to -1200 and press OK. You will get a warning
about -1200.00 being outside the usual range. Acknowledge this and
press OK again.
- -5100.00 to the Retained Earnings accounts. Warning:
this is the only occasion when hontreasurer.com expects a negative when you
might expect to give a positive value. The reason is
that
accountants expect a Balance Sheet to add to zero. Since the income and
expenditure is really an analysis of your Bank Account and Debtors
& Creditors, it usually appears as negative in an accounting
system. hontreasurer.com can normally do the necessary tricks with the signs
but this is one place where it can't. Sorry. So you have to set the
account to Retained Earnings and the amount to -5100. acknowledge the
warning about the amount being out of range and press OK again.
Now looks at Balances/Show Balances Tab. You should see two (still)
equal amounts and if you expand the Balance Sheet node, the should see
the bank, debtors, creditors and retained earnings accounts with the
correct figures.
Note: If you start in the
middle of a year, you can enter Income and Expenditure for the year to
date for each activity. For an explanation of this, go to the Next
Page. But remember to deduct the values you are
posting to Income & Expenditure from the appropriate account.
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