Very new to accounts packages so please bear with me....

We have two bank accounts, one for the shop and one for internet sales and we deal purely in the above.....so what would be the correct way in setting this up.

Would I just create a customer called Daily Cash sales and another Credit Card Sales, then create two accounts, say shop and internet

Daily Cash Sales would go to Money to be Banked
Credit Card Sales to either Shop or Internet...

Is that correct....?

Also

How do I, when setting up for the first time, enter invoices from suppliers that are currently outstanding?

Thanks

Adrian

Hi Adrian,

Yes that's correct - create two 'dummy' customers and two new accounts (don't forget to set the account type to 'Income').

For outstanding supplier invoices, just create new Purchase Invoices for the outstanding amount with an older date. If the invoice is dated before the current financial year, use 'Owner's Capital' as the account, otherwise choose the appropriate expense account.

Thanks Mark...I think Im really going to like this software!

Just another quickie regarding the New account, for these purposes lets call it BA 1

BA1 will be my main account and I want this to mirror all activity from my real bank account, ie payments Cash / Credits cards in and all other payments out

You say make my new account a "income" account....but looking at other instructions...for instance How to Reconcile Bank Statement, it states "select the bank account you want to reconcile (usually 'Cheque Account')." Currently this is an Asset type account. So just a bit confused. What would I set my new account to so that it reports everything correctly.

Sorry...but want to get it set up right before I start entering my years accounts...and I have never used an accounts package before so the terminology is all a bit foreign...

Cheers

Adrian

Hi Adrian,

Glad you like the software!

For your main bank account you should use the existing 'Cheque Account' (you can rename it if you like). So you will have four accounts (among others):
1. 'Cheque Account' - asset account
2. 'Money to be Banked' - asset account
3. 'Shop Income' - income account
4. 'Internet Income' - income account

To record a sale, enter a Money Received transaction from one of the two income accounts to one of the two asset accounts. Eg. for a credit-card sale made in your shop, set the Deposit into Account to 'Cheque Account' and the From Account to 'Shop Income'.

When you reconcile the Cheque Account you will see all forms of income deposited into the bank account.

I hope this makes sense - please let me know if you need more information.

Regards,

It does indeed....and many thanks for your quick response.

Thank you