The Accounting application will allow you to enter your entries in order to generate your accounting documents. It has been designed so that a beginner can use the basic features without difficulty, while allowing to manage more advanced needs.
You will find below a presentation of the main features of the module, as well as links to other articles explaining their operation in more detail.
Here are the different points that will be discussed in this article:
- Discover the Accounting application
- Main features
- Types of accounting entries generated (advanced)
Discover the Accounting application
The Accounting application will accompany you throughout your accounting period, from your first entries to the closing of the fiscal year.p
The accounting entries are generated via a simplified operation: you enter the information on the operation and the software generates the accounting entries from them.
An expense/revenue entry generates two types of entries:
- A commitment entry (expense or revenue), which reflects an impact on the result and a commitment to be paid.
- A payment entry, which honors the commitment to be paid and feeds a financial account, for example the bank account.
How it works
This simplified entry can be done in several ways:
- Either manually through the expense/receipt entry module. This module is also used when adding a transaction manually.
- Some entries (online sales) are generated automatically.
- In addition to this simplified interface, an accounting entry module allows direct entry of entries to meet more advanced needs.
This page gives you the status of your accounting in real time:
- Your availabilities by account and by sub-categories.
- The evolution of your expenses and revenues, as well as your result.
- The actions to perform (reconciliation, check deposit, online account).
Recording of accounting entries
Other modules are available to cover more specific needs:
- Monitoring of debts and receivables, i.e. entries with subsequent payment.
- Transfers between accounts and cash deposit/withdrawal entries.
Consultations of entries
Once you have recorded your entries, they directly feed your accounting documents, which you can consult at any time and finalize by closing. It is also possible to display your entries via the search module, which allows you to filter them by date, amount, accounting category, related third parties, etc.
You will be able to record check remittances in order to generate a deposit slip.
At the end of your fiscal year, you will be able to close your accounts in a few clicks. After that, all the necessary entries for the opening of the next fiscal year will be generated by the software.
If it is relatively quick to do, the configuration of the accounting application allows you to easily understand of the accounting concepts of the software.
Start by defining your accounting level in order to unlock more or less features according to your needs. There is no extra cost associated with this choice, and you can change your level at any time.
Then create your accounting period by defining a start and end date. This is usually a 12-month period based on the calendar year, but in some cases it may be different.
You can customize your chart of accounts by adding new categories or linking them to the price of a sale. In the same way, the bank accounts created from the settings page will also generate an accounting category of type 512.
Finally, if you had an accounting before Springly and this is not your first fiscal year, you can resume this history via the initial balance.
Types of accounting entries generated (advanced)
Record expense / revenue
When you use the expense/revenue entry module, the accounting categories to be impacted are automatically deduced from the information you enter:
- The nature of the entry: a revenue account (class 7) for a revenue, or an expense account (class 6) if it is an expense.
- The type of third party linked to the entry: 467 (person), 401 (supplier) or 411 (customer). By default, the 401 will be used for an expense and the 411 for a revenue.
- The payment method: 512 if the payment arrives directly to your bank account, 511200 for a check pending remittance, 531 for cash or 517 for an online payment.
Example: Cash purchase of pens for $10
This is an expense and the category is "purchase of supplies", so the debit account will be 602250. The payment is immediate, and the account used will be 531000 since it is paid in cash. Finally, the third party account is 401000 since it is a purchase from a supplier.
Accounting record 1: Commitment entry (expenditure)
Accounting record 2: payment entry (cash)
Payment at a later date
If it is indicated that the payment has not been made at the time the entry is made, a debt or receivable is recorded. This means that the commitment (expense or revenue) has not yet been honored and that an amount remains to be paid:
- Receivable: for an amount debited to a third party account (class 4).
- Debt: for an amount to the credit of a third party account.
The payment can be made in several installments and several documents can be created to record the successive payments. It is even possible to enter various installments in advance.
Revenue linked to ticketing
When a transaction is recorded, entries are also generated according to :
- The payment method, as with a traditional entry.
- The type of transaction: 706 (event), 707 (store), 754 (donations) or 756 (memberships).
If the default Class 7 accounting categories used are not appropriate, you can link each fare in your ticketing/campaign to a specific category.
For the same ticketing, all transactions are grouped by invoice. Thus, if there are 10 sales on the invoice, there will not be 10 entries in accounting, but only one. This choice was made to simplify the readability in accounting and not to create hundreds of entries.
The software will generate a global entry, which will have as many lines as there are types of tickets/campaigns. If you offer memberships and donations, you will have :
- An overall total of sales for the period.
- A subtotal of memberships.
- A subtotal of donations.