ICAEW Accreditation Scheme. Client Cash Accounting Software (UK lettings market) Evaluation. CFP Software Ltd. CFPwinMan v4 (4.5.0.

Transcription

1 ICAEW Accreditation Scheme Client Cash Accounting Software (UK lettings market) Evaluation CFP Software Ltd CFPwinMan v4 ( ) Evaluation carried out by: Kevin Salter FCA CTA(Fellow) Date completed: October 2014 Signed: K Salter 1

2 Table of Contents 1 Summary Approach to evaluation Matters to consider before purchase Evaluation conclusion Security and continuity of processing Input of transactions File maintenance Processing Performance of requisite accounting functions Service charge for block management Reports Value Added Tax User Documentation Efficiency Integration and www facilities Support and maintenance National Approved Letting Scheme system requirements Appendix A

3 1 Summary 1.1 Introduction The suitability of client cash accounting software for the UK Letting Market for each particular user will always be dependent upon that user's individual requirements. These requirements should therefore always be fully considered before software is acquired. The quality of the software developers or suppliers should also be considered at the onset. 1.2 Fundamentally, good accounting software should: Be capable of supporting the accounting functions for which it was designed. Provide facilities to ensure the completeness, accuracy, confidentiality and continued integrity of these accounting functions. Meet relevant legislative requirements. Have controls in place to ensure client accounts cannot become overdrawn. Be effectively supported and maintained. It is also desirable that good accounting software should: Be easy to learn, understand and operate. Make best practical use of available resources. Accommodate limited changes to reflect specific user requirements. It is essential, when software is implemented, for appropriate support and training to be available. 2 Approach to evaluation 2.1 Objective To evaluate CFPwinMan v4 against a set of criteria developed by the ICAEW to ensure that the software meets the requirements of client cash accounting software for the UK letting market, as laid down in the summary. 2.2 Approach and Work performed In order to effectively evaluate CFPwinMan v4, a product specialist from the CFP Software Ltd completed the detailed questionnaire and provided it to the evaluator to examine. The evaluator then visited the CFP Software Ltd office in Redruth, Cornwall and in conjunction with the operation of the various aspects of the software assisted by a member of CFP Software s technical staff checked the answers to confirm their validity. The questions were individually reviewed and commented on and the majority of assessments were confirmed. The evaluator discussed the assessments with a member of CFP Software Ltd staff in order to clarify certain points. In the event of disagreement between CFP Software Ltd and the evaluator, the evaluator's decision was taken as final and the response changed accordingly. 3

4 CFPwinMan v4, was used throughout the evaluation. The evaluation covered the lettings agency software. In addition, the optional extra module Service Charge Module for Block Management was also examined. When the evaluation had been completed, the responses were completed by the evaluator and a draft copy sent to the ICAEW for review before completion of the final report. 2.3 Software/hardware utilised Dell 64bit laptop 1.8ghz processor running Windows 7 Professional Service Pack 1 -software is version Report structure The report has been broken down into its main constituents in the contents page. The evaluation questionnaire was provided by the ICAEW and has been used without alteration or amendment. 3 Matters to consider before purchase 3.1 General overview CFPwinMan is a complete lettings and property management software solution providing a Client Cash Accounting system. CFPwinMan also manages all daily tasks, reminders and diary appointments, fully automates all letter/contract production, produces high impact brochures, property lists and window cards, matches and mails to applicants (using SMS, MMS and ) and provides all the required reports. There is a core product dealing with all the above and a service charge module is available for those dealing with commercial property management (including maintenance and service charge schedules etc). 3.2 Supplier background With over 25 years experience, CFP Software claim to be the market leader and the largest supplier of Lettings and Property Management Software with over 3000 clients and tens of thousands of users throughout the UK. CFP claim that the lettings and property management software has become the industry standard for lettings and property management businesses up and down the country. 3.3 Product background and Suitability for user The product has been in the market for over 18 years and is claimed to be by far the most widely used property management system in the UK market The company continually monitors legislation and implements changes when they become necessary. NALS, RICS and ARLA have relationships with the agencies and they review the agencies practices directly including their use of software. 4

5 3.4 Typical implementation The software is implemented in agents large and small. It is a scalable solution and their clients range from individual users on single computers through to nationwide companies with 150+ branches. 3.5 Vertical applications Lettings, Property Management, Block Management, Commercial Management. 3.6 Software and hardware specifications Development environment A combination of technologies developed in-house or by third parties in a combination of VB6 / VB.Net / C#.Net / SQL Stored procedures Server platforms File services must be provided via SMB as offered native to any version of Microsoft Windows since Windows XP, and SQL Server 2005 (minimum required but also runs on 2008 and 2012) hosted on any supported operating system Databases SQL Server 2005 (minimum) for the sdb product, Microsoft Access.MDB file for any of the adb variant products Operating software CFPwinMan will install and run on any version of Microsoft Windows since XP Protocols SMB for file transfer (using the operating system s in-built file sharing facilities) / FTP for certain aspects of file upload /SFTP/ TCP/IP for SQL Server and communication with hosted facilities such as the link to LettingsPortal via CFPServices Minimum client PC specification See Appendix A Support and maintenance CFPwinMan customers are able to get support from a large telephone helpdesk team. CFP state the team consists of experts available from 09:00 5

6 to 17:30 Monday to Friday* skilled in every aspect of the software with significant prior experience across all areas of the software and hardware industry. (*Excluding Bank Holidays). 3.7 Software installation and support CFPwinMan is installed remotely by their dedicated team of trained Installation Technicians. The installations team provide a dedicated support service during this time. 3.8 Partner network and related accreditation process ICAEW accreditation since 2008 ensuring the accounting functions meet the standards set by this world leader of the accountancy and finance profession. Microsoft Partner accredited since CFP Software have access to all of the current and latest development resources, as well as access to future and forthcoming technologies. National Approved Letting Scheme (NALS) accredited since 2011 ensuring compliance with best practice within the industry. Safe Agent official supporter, recognising the shared objective of commitment to professional service 3.9 Highlighted issues CFPwinMan is specifically a client cash accounting system developed specifically to manage client funds held by agents on behalf of landlords and tenants. This package should not be confused with other more traditional types of accounting software. Attention should be drawn to the following limitations of CFPwinMan v4 as per the ICAEW questionnaire:- Passwords are not encrypted and can be seen and changed by a super user (but this is common to any software in that someone has to control the passwords). There is no facility to specify a minimum password age or to enforce password changes after a set period of time (manual systems could be implemented). Whilst this is a full double entry system it is designed specifically for the niche market of lettings and property management and is not currently suitable for general office accounting. The software is not multicurrency but can be used in other currencies. No system log of error messages or external security violations. No audit trails of changes to tables but there is limited data in these static fields in this vertical market software in any event. 6

7 The end user cannot produce output in XML format directly (XML is used by CFP to publish data to a letting portal). There is no report generator but the company consider that all required reports are already supplied and custom reports can be produced on request. There is a report generator for information reports. A wide range of account reports are available and other account reports can be supplied on request should the need arise. Updated invoices can be reprinted from the history log but are not clearly marked as duplicates. A Preview watermark is present on invoices that have not been updated. 4 Evaluation conclusion There were no areas in the evaluation that gave concern given the highly specific target marketplace for the product. CFPwinMan version is well designed, adequately fulfils the needs for end users in this type of business and is sufficiently specified. Disclaimer Any organisation considering the purchase of CFPwinMan v4 should consider their requirements in the light of proposals from CFP Software Ltd or its dealers and potential suppliers of other similarly specified products. Whilst the contents of this document are presented in good faith, ICAEW cannot accept liability for actions taken as a result of comments made herein. 7

8 5 Security and continuity of processing 5.1 What security features are included to control access to the application? 5.2 Can access to application functions be managed so users can only see (in menus and other links) and access those functions they are authorised to access? 5.3 Is this access to the application managed by: Individual user profiles? User groups based on their job roles? 5.4 If menus can be tailored would this override the application access control? 5.5 Passwords Is access to the software controlled by password? Please state the basis of control available (e.g., role based etc) If there is no password facility please state how confidentiality and accessibility control can be maintained within the software? Are single user systems access controlled by password? User login name and password plus workstation has to contain a licence Specific sections of the program can be locked so that only authorised users can have read only access or read/write access Both, profiles can be set either individually or by role Menus cannot be tailored Individual or Role both options are available 16

9 5.5.5 Does the software allow for each user to have separate log on (user ids)? If No: How does the software track user activity? Is each user required to have a personal password? Are passwords one-way encrypted? [i.e. Is it impossible for anyone to see other user s passwords in the software?] Are passwords masked when entered by any user logging in? Is password complexity available at application level? If : Please specify [e.g. Number of digits, requirement for special characters, numeric, upper/lower case etc.] Is there a facility to enforce password changes after a chosen period of time? Is there a facility to specify a minimum age for passwords (e.g. 1 day)? How many previous passwords are retained by the system to limit users No, if you have access to passwords then you can see and change other users passwords usually only a super user (administrator) would have this access (which is common to most software) Passwords controlled by the superuser who can set it to be as complex or as simple as they like No No None 17

10 recycling passwords (e.g. 24 or 32)? 5.6 Please state how security allows for access to be specified separately for : Read? Security allows for Read only Read and write? Read/Write access is default setting. Read/Write includes delete/amend if available but delete cannot be applied to an accounting entry once an account exists Delete and amend? See above read and write also allows deletion where applicable 5.7 Are any data files, such as budgets or price updates, imported by users validated by the application software before main data files are updated? 5.8 Does the software require higher or specific levels of user access for changes to sensitive data, such as customer credit limits? Access is defined on setup of an individual and access rights determined at that stage 5.9 Please specify the specific security procedures (by passwords or warnings) over the: Update of ledgers Closing of accounting client accounting cash book not an annual accounting periods software Deletion of transactions Items cannot be deleted, if they are wrong they are reversed recorded in audit trail Archiving of transactions Is it impossible to delete a transaction? If No:- a reversing transaction is recorded 18

11 How are deletions controlled by the system? 5.11 Are deleted transactions retained in the audit trail and denoted as such? 5.12 Can a report be produced detailing all current users, via user groups, if relevant, and their authority levels and/or access rights? 5.13 If data can be accessed by separate reporting facilities, such as ODBC or separate report writer, is the user access security control applied? If No: Please explain any other protection in place to prevent unauthorised access to data with such facilities Is the level of security (described with this section) appropriate for the expected size of business using the software? 5.16 Is there a clear indication in the software or manuals as to how the data is: Backed-up? Recovered? Cannot delete transactions another entry is required to correct the original available to superuser only Reports are only available within the system and need security access. Custom reports can have security set at report level. These custom reports are generally a revision to an existing layout. Off site backup covered as part of training - auto backup on exit of software and this backup is to the server. Recovery would be assisted by support if needed. Helpsheets are provided. 19

12 5.17 Back ups How are back ups provided: Within the software application? Within the operating software? Are backup procedures automatic? Is the user forced or prompted to back-up at certain intervals? Can the intervals be customised? A scheduled backup is configured as part of the installation for SQL version. Access version last one to log out is prompted to run a backup. Instructions are given on external backups see 5.16 within the software Prompted in Access version automatic in SQL version. in SQL on logout in Access version Recovery Please state how the software facilitates recovery procedures in the event of software failure? (E.g. roll back to the last completed transaction) If software failure occurs part way through a batch or transaction, will the operator have to re-input the batch or only the transaction being input at the time of the failure? Regular saves are prompted plus software is written with transactional Roll Back embedded. (Microsoft functionality). Differs in the software but likely to be the whole batch, if this happened and user went back to process they would be able to see what had/hadn t updated successfully so they could reinput anything necessary Are these automated? Do the recovery procedures work? 5.19 What features are available within the software to help track down processing problems? Accounts and audit trails available. Reconcile balance reports available Are software messages clear? 20

13 5.21 Are user responses properly structured to ensure that erroneous key strikes do not lead to inappropriate actions?, e.g. date validations etc 5.22 I s there a software log which details: Error messages? No in access, in SQL standard Microsoft reporting Security violations? No 5.23 Audit trail Does the software have a detailed audit trail? Is it impossible to turn off or delete the audit trail? Does the software allocate a system generated sequential unique reference number to each transaction? Is this stamped with a user id? Is this unique reference number presented to the user at time of input? Is this unique reference number available to view, by the end user and by way of a report? separate audit trails for cash and non-cash (invoices) transactions cannot be turned off in the background not visible to end user every transaction has a user id and this is visible to the end user in any accounting report The system generated number is not visible, however items such as invoices also have a unique invoice number, these are presented to the user. If a user needed a report of the system generated number a custom report could be created (as long as under support contract it is likely that no charge would be made for this specific report). The system generated number is not available to the user, but, items such as invoice numbers are. 21

14 Is the transaction date and time stamped? Are all master file changes recorded in the audit trail? If : Does each change have a system generated reference allocated? Are the originator and authoriser identified? Is the change date and time stamped? Are all standing data changes recorded in the audit trail? If : Does each change have a system generated reference allocated? Are the originator and authoriser identified? Is the change date and time stamped? - both recorded in the underlying table both are visible in a history log. No e.g. change of address for a property owner not recorded but history logs and files would have original data. This could be put in place in SQL version on request (probably no charge if under support). Everything is recorded in the accounting functions. date viewable on screen time recorded in history log Financial yes, information no in backend not generally visible to end user Is all input data included two separate audit trails as 22

15 within the audit trail, including amendments, deletions, journals etc.? Does the software allocate a system generated unique reference number to each amendment, deletions journal? Is this stamped with a user id? Is this unique reference number presented to the user at time of input? Is the transaction date and time stamped? How is it linked to the original transaction? Are imported /interfaced transactions detailed in the audit trail? Is each stamped with a user id? Is this unique reference number presented to the user at time of input? Is the transaction mentioned above in underlying tables for invoice numbers, not for the underlying table. Could be produced if requested (if under support likely that no charge would be made) Automatically via table linking -only import is a standing order generated reference number but not generally visible to the end user where applicable in financial transactions e.g. when entering an invoice the number to be allocated will be displayed on screen 23

16 date and time stamped? How are transactions differentiated within the audit trail? 5.24 What are the procedures for handling dates? (E.g. 2 digit years, 4 digit years) In the case of two digits what is the break point for the century? Are dates handled consistently throughout the software? The only import feature is standing order receipts which is a bank provided file. There is a batch number which is a nonuser editable field. 4 digit years 24

17 6 Input of transactions The following sections in Input of transactions, File maintenance, Processing and Reports are primarily aimed at the three main accounting ledgers and where applicable Sales Order Processing, Sales Invoicing, Purchase Order Processing and Stock Control. 6.1 Is data input controlled by selfexplanatory menu options? 6.2 Are these menus applicationspecific? 6.3 Does the software provide input validation checks such as account code validation, reasonableness (limits, VAT or discount checking) and validity checks (VAT check-digit calculations)? 6.4 Can the user amend data on an input screen prior to update? choice of tabs or icons e.g. date, address format, VAT checking of amount etc. Date defaults to today s date when entering invoices for example. 6.5 What control features are within the software to ensure completeness and accuracy of data input? 6.6 Are all input transactions subject to this control? 6.7 How does the software ensure uniqueness of the input transactions? (i.e. to avoid duplicate transactions) Messages issued and update not possible unless transaction valid. On batches totals must equal individual entries. database generated unique ID s are allocated to transactions warnings are generated if inputting duplicate numbers e.g. invoices with a number already used. 25

18 6.8 Does the software allow for batch control totals? If : Are batches automatically numbered? Are batches forced to balance before ledger update? Does the software allow the temporary halting of input of a batch to allow for queries or other activities to take priority (e.g. set up a new account) Is the user forced to confirm batch totals? 6.9 Is attempted posting of unbalanced journals rejected? (G/L) Are input errors highlighted? If are they: Rejected and reported on screen? Rejected and error reports generated? and posted to suspense? in certain areas e.g. Fast Track Receipts for fast track receipts various drilldown facilities are available whilst in fast track receipts fast track receipts No general ledger error displays on screen No has to balance before batch accepted for posting 6.11 Does the software have an automatic facility to correct/reverse/delete transactions? If : Are all the double entry transactions documented in the audit trail? 6.12 What are the controls to ensure the internal integrity of the Reconcile balances report can be run at any time. Also bank 26

19 ledger(s) or the accounting information, e.g., control of accounts Is it possible to allocate input values directly to ledger control accounts? If : Please note the mechanisms available to allow the user to establish why the total balances on individual accounts do not agree to a respective control account? 6.14 Can automatic accruals or prepayments be generated? If : Will these automatically be reversed after the period end? (G/L) 6.15 Does the software have a purchase invoice register? reconciliation reports. No No ledgers as such Reconcile balances allows for this as client cash accounting 6.16 Does the software permit multi debit/credit journals? client cash accounting 6.17 Can journals be saved as template with GL codes and cost centres and either with or without monetary amounts? client cash accounting 6.18 Can journals be set up to distribute amounts in a fixed percentage against GL/Cost centre codes? 6.19 How are transactions client cash accounting 27

20 identified on screen/reports as to: Type? Debit or credit? compcode - letters indicate the type of transaction separate columns 6.20 Can separate nominal analysis codes be input for each invoice line? If : Does this cover: Sales ledger? Purchase ledger? income based on predefined headings tailored to the circumstances. Expenses are user definable. no ledgers Stock? 6.21 Can receipts and payments be, they must be matched matched to specific invoices? If :- Automatic if amounts match but Automatic? user can override Manual? Both? 6.22 Will the software permit part payments? if paying landlord. In development and should be available within 3 months 6.23 Will the software allow: Payments to be made to customers? Receipts to be received from suppliers? 6.24 Does the software handle purchase credit notes? Is there an ability to automatically amend stock, if applicable? 6.25 Can the software generate sales credit notes? no purchase ledger no stock Not a sales ledger as such but a credit can be entered 28

21 If yes: Is there an ability to match to a sales invoice? Is there an ability to automatically amend stock, if applicable? 6.26 Does the software handle discounts and promotions? 6.27 Does the software provide for early settlement discounts? Can early settlement discounts be automatically generated? Are there controls over accepting settlement discounts (e.g. time limits)? Is VAT treated correctly on early settlement discounts? 6.28 Will the software permit the posting of unallocated cash to the ledgers? has to be matched against a sales invoice No - Does this apply to: Sales ledger? No Ledgers as such but unallocated cash received can be posted to an Unallocated Money account. Cannot post a payment without an invoice being entered Purchase ledger? 6.29 Are unallocated cash/credit notes specifically reported for follow up? displayed on screen and specific report available 29

22 6.30 Are outstanding transactions displayed for allocation? If :- Does this apply to: Sales ledger? in receipts, not applicable to expenses as cannot post unallocated payments Purchase ledger? 6.31 Does the system allow the user to post or allocate a payment or receipt with a date prior to the invoice transaction date? If : Is the user warned that the aged balance values may not agree to the trial balance values?, but, all transactions will always appear in chronological order in the accounts (uneditable) and, in addition, the history log will record the actual dates of receipt and payment. no trial balance purely cash book entries 6.32 Is it possible for new accounts New Landlords/tenants/tenancies to be created during input? etc can be created at any time If :- Does this cover: Sales? Purchases? General? Stock? 6.33 What controls are there over the creation of new accounts? Is the originator and/or authoriser identification logged by the software? 6.34 Is the user prevented or warned from overriding credit limits or discounts? (S/L). User Security whilst a user could create a new landlord for instance, permissions could be set to prevent any financial postings to that account. in history log but warnings are given where payments due exceed monies available 30

23 6.35 Does the software have a bank reconciliation facility? 6.36 Does the software enable transactions to be posted to the ledgers whilst performing a bank reconciliation (e.g. standing charges, bank charges etc)? 6.37 Are these adequately reported? 6.38 Does the software accept input files from other computer packages? If : What formats are accepted? What controls are in place over the interface? 6.39 Does the software have a facility for calculating interest on late payments?. We support a template driven standing order import file with new templates being generated as per the customer s preferred banking system requirements. All the major banks are supported. List available on request. Additionally, we support import of AUDDIS Bank Returned DDI XML instruction files to create new D/D instructions. File has to match requested sum and tenant code. There are integrity tests applied.. There is a separately chargeable service charges module required for this. (Guide price 1,400 + support). Additional bank accounts may also be needed at a further additional cost. This can charge simple or compound interest on rent, 31

24 ground rent, sundries, fees, deposit held or service charge items. 32

25 7 File maintenance 7.1 Are ledgers:- Open Item Open item? Balance forward? No ledgers but expenses and Does the above cover: Sales ledger? income are open item Purchase ledger? General ledger? 7.2 Is a month end routine required to be undertaken? 7.3 Is the creation or amendment of standing data (e.g. customer account details) controlled by menu options? No month or annual closedowns required. 7.4 Are menus:- Application specific Application specific? User specific? either greyed out or function not available when making selection 7.5 Is it impossible to delete accounts if the balance if Nil but transactions have been recorded against the code. Does this apply to: General Ledger? Sales Ledger? Purchase Ledger? Stock? Archive available for properties, landlords and tenants. Transactions still held but not displayed unless specifically requested. Cannot delete anything. 7.6 Are there any other constraints over the deletion of accounts? Once accounts exist records can not be deleted 33

26 7.7 What is the size and format of reference numbers and descriptions within: General Ledger? but tenant codes 8 alphanumeric, expenses text 50 characters Sales Ledger? Purchase Ledger? Stock? 7.8 Is the scope of the reference number adequate to permit sufficient depth of analysis? 7.9 How does the software guard against/warn about, duplicate account numbers on set up? 7.10 How does the software enable the traceability - from, to and through the accounting records - of any source document or interfaced transaction? 7.11 What drill down/around functionality is available within the software? 7.12 Can reports be invoked which identify all the fields which have been modified? 7.13 If the software uses a lot of standing information which changes frequently or regularly, does the software allow for such changes to be effected through the use of parameters or tables? Duplicates not allowed on tenants, properties, landlords, contractors, bank etc. Various search facilities e.g. code, name, All screens allow drill down and multi screens to be opened Certain field changes are recorded. All accounts are set once entered, they need to be reversed to remove so fully traceable. Can be invoked in SQL if ever required but would make system very slow. Tables are used where appropriate but there is very little standing information 34

27 If : Is the use of such parameters or tables adequately reported? 7.14 What controls are within the software over changes to parameters and tables e.g. reporting, password etc? Some are recorded in history log.superuser only can change passwords Does the software allow selective archiving of old data on a user-defined basis? 7.16 What controls are in place over the handling of archived data? 7.17 Can archived data be used for reporting purposes? 7.18 Does the software allow for the restoration of archived data for audit without affecting current accounting data? for zero balance records. Users can search and view archived records in line with security set for that user. All data still available just stops it appearing on reports (unless a balance exists). can be included in reports if required. 35

28 8 Processing 8.1 Does the software ensure that menu options or programs are executed in the correct sequence (e.g. ensure outstanding transactions are processed before month end procedures run)? 8.2 After an external document (e.g. sales invoice or cheque payment) has been generated and posted to the accounts is it impossible to amend this data? 8.3 Is there an audit trail of all changes to transactions which have updated the ledgers? 8.4 Can the software calculate prices or values by reference to master file data? 8.5 Does the software provide automatic recalculation, where appropriate, of data input? (e.g. VAT) 8.6 Does the software warn the user when the ledger is out of balance? 8.7 How is this done e.g. when the software is switching on or on ledger update? The Organiser an internal action planner - prompts where necessary. In making payments to contractors etc invoices need to be entered before the payment can be entered. Only by a reversing entry so full audit available It can calculate VAT and commission fees but should never happen. Database corruption is only circumstance. The Report reconcile balances will have a tick on the screen to indicate all is fine a cross if there is an issue. Users are trained to check this report on a daily basis. 36

29 9 Performance of requisite accounting functions 9.1 What control features are provided by the software to support effective user controls? 9.2 Is there: Transaction sequencing? Automatic dating of posting transactions? Identification of user id or source of document? 9.3 Is the software available as multi user? 9.4 Can the same function be used by more than one person at the same time, whilst still retaining the separate user identities? 9.5 Is the software available as multi-company? If : How many companies are supported? 9.6 Is a group consolidation facility available? 9.7 Can the software consolidate entities with different charts of accounts? 9.8 How many levels of nominal analysis can be handled by the software? 9.9 How does the software handle cost centres, departments, Password logins and the forcing of balanced postings Offers current date with ability to override displayed date compcode generated identifies source and user ID is also shown for individual transactions, where batches are involved records are locked for the first user to access e.g. paying landlords. if required multi-branch is standard Unlimited If each company is set up as a branch for this type of vertical market software Branches are available as are fee earner reports (treated as cost 37

30 divisions? 9.10 How are periods handled by the software? centres) no accounting periods as such 9.11 How many: Accounting periods can be set up? Years can be set up? 9.12 Can the length/ number of periods be adjusted to suit different customer requirements? 9.13 How many accounting periods can be open at any one time? 9.14 How many years can be open at any one time? 9.15 Can a period or year be reopened after it has been closed? If : What controls are in place over this function? If No: Is the data archived on the server? Is this accessible for reporting purposes? Can a previous year be restored from backup? 9.16 Can data from all accounting periods and years be accessed at any one time? Reports can be produced between any two dates at any time All data available to report between any dates 9.17 Can previous months and years be accessed for enquiries or reports? All data available to report between any dates 38

31 9.18 Does the software handle posting date as well as document date? If : Are transactions analysed by posting date or document date? 9.19 Can transactions be posted to more than one accounting period at any point in time? 9.20 Does this cover: General ledger? Sales ledger? Purchase ledger? Only displays document date posting date held in underlying database 9.21 Is it possible to allocate transactions to: Future periods? Previous closed periods? A previously closed year? If : What controls are in place e.g. level of authorisation and on screen warnings? Will the software revise subsequent periods accordingly? No periods as such 9.22 How will transactions outside the current period be: Reported Accounted for in the VAT return? 39

32 9.23 Does the software permit use of budgets and provide comparisons between budgets and actuals? If : How many versions of budgets/forecasts can be maintained on the system? 9.24 Are budgets available for: General ledger? Sales ledger? Purchase ledger? Overheads? Balance sheet? 9.25 Can budgets be set by: Period? Annually? 9.26 Can the software automatically generate budgets? Please state how this is achieved What is the maximum value of transactions and of totals that can be handled by the software? 9.28 What is the maximum number of transactions that can be handled by the software? No maximum Limited by database size only 9.29 What is the maximum number of accounts on each ledger: Sales ledger? Limited only by the database itself never likely to be an issue Purchase ledger? General ledger? 40

33 10 Service charge for block management 10.1 Does the system warn the user if a transaction could render the client account to become overdrawn? 10.2 How does the system handle Non Resident Landlord tax deductions in relation to: The landlord s account? Payments to HMRC? How does the system ensure that tax deductions relating to non resident landlords are in accordance with current guidelines? In line with HMRC regulations quarterly reporting, depends on landlord having exemption, whether landlord is VAT registered, whether expenses are tax deductible etc. Receipt and payment dates also taken into account. Payments are due once per quarter and a report is produced. An annual report which is a form substitute is also produced. There are user definable expense codes which can be tagged as either deductible or nondeductible. 41

34 10.3 How does the system handle tax exemptions Can the tax exemption certificate be linked to the landlord s account? tax is deducted if the overseas tax rate is set but a FICO* reference can be entered so that no tax is deducted. *FICO used to be the name of the tax office that is now CNR (Centre for Non Residency) but some items still use the term - Financial Intermediaries and Claims Office. A link can be set to the actual document How are payments to HMRC handled by the system? At the end of a quarter a report is run of sums payable and this indicates also if funds need to be transferred to meet the payment How does the system handle refunds due to a landlord from HMRC? Net amounts due are automatically calculated and the net reported to be paid to HMRC. It will automatically check the entitlement to a refund based on the tax paid in that tax year and will not allow a greater amount to be repaid. Where e.g. a tax exemption certificate is processed in a tax year a refund can be obtained up to the amount of tax already deducted. If there is nothing net due to HMRC i.e. a repayment, HMRC will send a cheque which can then be processed in the normal way. 42

35 10.6 Are all transactions including refunds and deposits shown on the landlord s statement? All transactions appear on a statement of account internally in the software however currently the only circumstance where a transaction does not appear on a landlord s statement is where a refund of overseas tax is made. It cannot be hidden as it appears in other reports Does the system provide a list of property expenses? 10.8 Can the user add to this list? 10.9 Can the system differentiate between tax deductible and non tax deductible expenses? Can these be user defined? Can the system handle multiple landlords for one property? Can the percentage split (of income and expenditure) be user defined? Can one off expenditure be allocated to a specific landlord? - via landlord screen as opposed to property screen only applies to fees. Expenses have to be entered at a property level. 43

36 10.14 Can the system produce consolidated statements by landlord? A summary statement is available (total rent, expenses by category and total fees) Can the system produce letting agents (section 19) reports? option to include overseas landlords (as some HMRC offices think they should be included) and option to create a csv file Can the software handle service charges i.e. Charges directly to tenants for shared services? Is there any limit to the number of units in a block to which service charges may be raised? No Can the charge periods for expenses be defined? weekly, monthly, 4 weekly, 3 or 6 monthly, annual etc Can user defined expenses be added to the list of expenses of service charges? Can service charges expenses be treated as composite? Is there a RICS translation table for expenses under the service charges? Is there a schedule of contributions report to show invoices to be raised to tenants? 44

37 10.23 Do the reports generated comply with the recommendations in the Commonhold and Leasehold Reform Act 2002? Does the system permit under/over apportionments of 100% of the services charges? for properties defined as commercial No for properties defined as residential In accordance with the Act Is it possible when creating a new period to: Copy the prior period? Apply a % increase? Are year end balancing statements laid out as per the s 21(5) of the Landlord and Tenant Act 1985? Are Summary of Obligations and Rights statements produced as required under: s153 relating to service charges s158 relating to administration charges s166 relating to ground rents all comply with the style and format as set out in the legislation 45

38 11 Reports 11.1 Are all reports adequately titled and dated? (E.g. report name, client name, data, period, batch, last entry number, period end, pages, numbers etc.) 11.2 Do the reports provide totals where applicable? 11.3 Are these totals calculated or taken from a control file? Please state the reports that do not feature calculated totals Is it clear when the report has ended? (totals or end markers) 11.5 Can reports be saved in electronic format (as distinct from just printing)? Are such files adequately protected from deletion or amendment? 11.6 Is a report writer provided as part of the software or as an addon? Please state the name of any third party package What level of knowledge is required to use the report writer e.g. beginner, regular user, expert? 11.8 Can the report writer make use of user-defined fields (including external fields)? as required Calculated. Options for csv,pdf, rtf Users can amend/delete-this is how they were designed. PDFs cannot generally be amended. Part of the software (see 5.13 above) Regular user but not external 46

39 11.9 Does the report writer enable: Separate access to each system area? Reports to be prepared which combines related data from a number of system areas (e.g. Customers Sales Stock items) in the same report? Can users define the parameters, columns, fields and selection criteria used on reports reported? Are standard reports always produced, even when they are nil returns? Is there an option for reports to exclude nil balances, this year or where there are nil balances this year and last year, to enable a comparative report to be produced with the completeness of both years being maintained? Can screen layouts, reports and transaction formats be easily adapted to users requirements? Can a hard copy be produced of all screen enquiries? Can transaction files for all previous periods of the year be retained in the software to permit enquiries and reports? e.g. relational reports such as properties belonging to a landlord, tenant s arrears details etc. except for accounts reports comprehensive reports are provided Comparison reports Nil balances are usually excluded but some reports have option to include them., each user can define and store layouts - all transactions always available Are reports of all changes to Available if required 47

40 standing data on customers, suppliers, tax rates etc automatically generated or stored for later printing? If : Is the report able to capture the nature of the change, user id and data and time of the change? Are all transactions on all reports individually identifiable? Do the reports show whether items are debit or credit? Do reports give sufficient narrative and coding to enable cross referencing? Is it possible to drill down from reports to the ledgers and original transactions? Can the software produce all requisite reports: Day books a report Reconcile Balances in a trial balance format with Debits and Credits can be produced Trial balance Profit and loss account Balance sheet Aged debtors Equivalent report is Rent arrears which can be produced Aged creditors Aged stock Aged unallocated cash See (debtors) Aged unallocated cash (creditors) Budgets 48

41 Cash flow statement VAT reports VAT form EC Sales Listings Intrastat returns (SSD) Are the above reports standard within the software or do they have to be written? Is the age criteria fixed or user definable? Can the aged analysis and day book reports be in summary and detail? Do standard reporting options give sufficient flexibility to tailor individual reports? Standard report by date Can all reports be reproduced after the period end but at the month end date: Transaction listings? Reports can be run at any time for any period Day books? Trial balance? Is it possible to print out retrospective month end aged sales and purchase ledger reports that agree back to the month end trial balance control account figures as at the month end? Purchase ledger For debts there is a report that shows arrears for any specified date range, an organiser that displays all outstanding debts with a column to indicate age and an automated arrears letter feature which allows the user to send arrears letters based on age of debt 49

42 11.28 Do the standard budget reports provide sufficient analysis of variances? Do such reports provide exception reporting, percentage analysis and comparatives? Do standard reports show sufficient analysis of trading results? (E.g. sales analysis by region)? Are all movements during each accounting period shown on sales, purchase, general, stock ledger detail reports? Do the sales and purchase ledger reports show how all partial payments or allocations (unallocated cash) have been treated? Is there a general ledger report that shows balances brought forward and carried forward plus all posted transactions in the period? Is a trial balance available? Is this in summary or detailed format? but there are reports available showing unallocated cash receipts Can the management accounts, profit and loss account and balance sheet be sufficiently analysed by: Project/job Fee income can be reported by 3 criteria - fee earners, department, branch and by fee type across any date range Cost centres See Department See

43 Division See Company See Group (if applicable) See Can the above be user defined by Period and/or range? Any date range What controls are there in place so that the user is aware of partly processed transactions: Unposted invoices The Organiser internal to do list has reports of e.g. invoices to post, rents to calculate, arrears due, landlords with money due etc Uninvoiced dispatches Payments Receipts As State the controls that are in place to ensure that the correct price/discount has been applied to invoices/credit notes? (e.g. Gross Margin reports) Detail all automatically generated documents for external use. (E.g. sales invoices and statements, remittance advices.) Can the software reproduce source documents? [E.g. sales invoices; POs, Remittance advices ] Are the duplicates an exact replica of the relevant financial and VAT accounting information as stored on original documents [i.e. they do not take account of any subsequent changes to the standing data? Rental invoices and fee notes, letters, landlords remittance notices, contractor payments, paying in slips etc Are these clearly identified as No 51

44 duplicates? Does the software force the production of month-end reports? Can the reporting function make use of external data files? Does the report writer have the facility to scroll up and down when output to screen? Can all reports be run without the need for period-end procedures to be initiated? Does the report writer allow print previews of all reports? Can transactions and standing data be output directly to other formats e.g. CSV, txt, XML, PDF etc. for any period of time required? and not considered Necessary No period-end procedures (XML files cannot be generated by end users directly XML is however used to publish data to a letting portal). 52

45 12 Value Added Tax The following sections detail the general requirements/features of an accounting package in handling VAT. It cannot cover all eventualities or all users and where necessary members should contact their local HMRC office for detailed guidance. The overall objective is to accurately record the accounting for VAT in order to support VAT returns to HMRC Does the software have the facility to hold the following VAT information:- for letting agent UK VAT registration number? Intrastat code? EC Code? EC VAT registration numbers (10)? VAT rates (please specify number available) No unlimited 12.2 How does the software handle roundings? 12.3 Is this applied consistently? 12.4 Does the software handle VAT Scale charges with automatic double entry processing? 12.5 Does the software handle VAT calculation tolerances? If do any discrepancies produce: Warning? Appear in the audit Inbuilt Rounding function in software 53