Accunting 3 Participant Thank yu fr enrlling in Accunting 3 fr Studi Designer and Studi Shwrm. Please feel free t ask questins as they arise. If we start running shrt n time, we may hld ff n sme f them and have a 5-10 minute sessin available after the class t answer any questins. We ask yu t be cnsiderate f thers, s please d NOT use a speaker phne at any time during the class. Althugh it sunds fine t thse using the speaker, the static is multiplied many times t all ther participants. Yu can have as many peple as yu like call int the cnference number t listen in. Als, please mute yur phnes whenever pssible t cut dwn n backgrund nise. This is Accunting 3 We ll cver: Tips t make the bank recnciliatin easier Optins fr entering yur payrll Writing ff bad debt and small balances This class assumes that yu are cmfrtable with yur sftware, understand hw t recncile a bank accunt and have taken yur accunting basic class. 1
Bank Recnciliatin Tips fr making the bank recnciliatin easier Daily depsits recncile depsits t cash receipts reprts. All receipts included n a depsit slip shuld be tied tgether by the receipt date. This is imperative fr bank recnciliatin purpses. We suggest dating the depsit slip befre entering receipts. This can be date yu think it will g t the bank, r any ther date as lng as every receipt listed n the depsit slip gets this date). Print a cash receipts reprt when each depsit slip is cmpleted. Use the date f the depsit slip and verify that the ttal n the reprt matches the ttal n the depsit slip. Entering credit card receipts (allws yu t easily see and recncile by credit card): Use a separate credit card cde t batch credit card depsits. Fr example, nrmally there will be ne depsit that cmbines Master Card and Visa and a separate ne fr Amex. In this case, when entering a receipt fr Visa r Martercard enter VMC in the Check # and Credit Card fields. When entering an AMEX receipt enter AMEX in the Check # and Credit Card fields. Whenever pssible, try t use a date that desn t have check depsits as well. Enter cash transfers as Adjustments (within recnciliatin) r jurnal entries (Anything that yur bank separates frm receipts and disbursements). Any entries created using the Adjustments area in the bank recnciliatin r as a jurnal entry will shw up in the bank recnciliatin in the Adjustments tab. This will allw yu t lcate them quickly and easily, and calculate them int a separate ttal. Always use the bank statement ending date rather than the last day f the mnth. This way yu always knw the recnciliatin date. 2
Lcating recnciliatin errrs. Dates are very imprtant t the bank recnciliatin and are the mst cmmn cause f bank recnciliatin differences. T lcate errrs check the fllwing: View the recnciled 3240 01 reprt and lk fr any transactins dated after yur recnciliatin / Bank Statement Date. If yu find any, change the dates t less than r equal t the recnciliatin / Bank Statement Date. (Adjustments must be reversed and re-entered). Verify that the recnciled depsits, checks and adjustments frm Studi match the crrespnding ttals n yur bank recnciliatin. Lcate any differences in checks/disbursements by matching each check n the bank statement t each check n the recnciliatin summary reprt as yu will get ne ttal fr each check. Lcate any differences in receipts by matching each depsit t the recnciliatin recnciled reprt (nt summary). 3
If yu have been ut f balance Left (Outstanding) t Right (Recnciled) fr mre than the current mnth yu must lcate any transactins dated greater than yur latest recnciliatin date. Within recnciliatin filter fr Recnciliatin Yes. This will shw nly recnciled transactins. Then click int the Date field f a transactin (nt the filter area) and click the Z-A icn at the tp f the screen. This will place the items with the greatest dates at the tp f the list. If yu find any items with dates greater than the recnciliatin date, change the date t less than r equal t the recnciliatin date and verify that the item really did clear the bank. If yu still have nt lcated the difference, call yur accuntant r Studi Supprt. 4
ANY BANK USA 4117 Old Buff Rad Hickry, NC 28602 (800) 554-0536 Fax (828) 294-0375 Statement Clsing Date: 7/31/2002 Accunt #: 5301-22905 Design Firm Internatinal 4089 Mama s Garden Rad Hickry, NC 28602 Balance 6/30/02: $48545.10 Depsits and Receipts: $68864.67 Checks: $4555.00 Analysis Fee: $10.00 Balance 7/31/2002: $112844.77 Depsits and Receipts 7/1/2002 $2000.00 7/2/2002 $4395.14 7/5/2002 $43811.84 7/7/2002 $9433.12 7/12/2002 $2427.51 7/13/2002 $6791.85 Interest 7/31/2002 $5.21 Ttal Depsits and Receipts: $68864.67 Checks 1000 $200.00 1001 $400.00 1002 $500.00 1003 $250.00 1004 $675.00 1005 $160.00 1006 $310.00 1008 $425.00 1009 $195.00 1010 $110.00 1011 $975.00 1014 $235.00 1015 $120.00 Ttal Checks: $4555.00 5
Entering payrll infrmatin and writing payrll checks Enter payrll as jurnal entry. We have used an Excel spreadsheet which yu can recreate t fit yur chart f accunts and payrll register. Yu have greater security with ne bulk amunt entered as a jurnal entry and can reference details frm yur payrll reprts. The jurnal entry prvided assumes that yu are using a payrll cmpany that will impund all payrll taxes rather than the design firm paying them, but this can be changed depending n hw the taxes are paid. PAYROLL REGISTER EXAMPLE FROM PAYROLL COMPANY PAGE 1 6
PAYROLL REGISTER EXAMPLE FROM PAYROLL COMPANY PAGE 2 Spreadsheet example 7
The secnd ptin is t enter as individual checks with grss amunts dwn t net. Ck 10000 Amunt:963.58 Accunt Dist: 1250.00 Grss Wages (Expense) 95.63 Emplyer Match Payrll Tax Expense FICA/MCARE (Expense) -347.56 Federal Payrll Taxes Payable (Liability) -34.49 State Payrll Taxes Payable (Liability) This ptin creates liabilities which will need t be reduced as the payrll taxes are paid. If the payrll cmpany will deduct the payrll taxes, enter a check t reflect the amunt f the deductin. 8
Using the cash accunt t yur advantage The cash accunt can be used in a variety f ways. It can be changed t any accunt in yur Chart f Accunts. This allws yu t pay ff invices withut actually affecting cash and yu can adjust the cash accunt t match yur needs. We frequently change t cash accunt fr the fllwing types f things: Write ff bad debt Adjust fr small balances Recrd receipts fr client allwances Cash transfers Charitable cntributins Writing ff bad debt and small balances Enter the cash receipt as if yu were actually receiving the payment, but change the cash accunt t Bad Debt Expense r Refunds and Allwances befre psting. Bad debt is generally defined as funds that are due t yu, yu have exhausted yur resurces t cllect, and yu want t remve the balance frm yur accunt. Allwances are instances where yu have agreed nt t make the client pay. Maybe, in the interest f client relatins, r as a gift, etc. Small balances that yu d nt t intend t ask the client t pay fit int this categry as well. Charitable cntributins f gds Create an invice just as yu wuld if yu were ging t expect payment frm a nrmal client. Recrd a cash receipt as yu wuld nrmally, but change the cash accunt t Cntributins r Dnatins, r whatever yur preferred expense accunt is. Psitive / Negative balances In many instances yu will find that yu have invices with balances n multiple items that net t a 0 balance. T remve these items frm yur Accunts Receivable reprt, yu must make each item a 0 balance. Studi cannt recrd a receipt (r check) fr 0 dllars. This means that yu will need t recrd at least tw receipts. One fr the psitive items and ne fr the negative items. Change the cash accunt t smething like Suspense that nrmally carries a 0.00 balance. This way yu can check the balance f the Suspense accunt after recrding yur receipts and verify that the balance f the accunt is still 0.00 when yu are finished. It als keeps yu frm having additinal entries when recnciling yur cash accunt. Checks The cash accunt can als be changed in checks fr the same purpses. 9