We will start the course with some information about the company files and our case study. A company file is the term used in AccountRight Live to name the company's data. If we were a brand new business with a brand new data file, creating a new data file in MYOB AccountRight Live is very easy, using the New Company File Assistant. All the figures will be entered as they happen. Whereas an existing business that has decided to move from a manual system to a computerized system needs to be done at the beginning of a reporting quarter or at the beginning of a new financial year.
This is known in AccountRight Live as the conversion month. We will learn more about our case study shortly. Some data that will be required includes bank statements to give bank account figures, copies of outstanding supplier bills which need to be paid, copies of outstanding customer invoices which are still waiting on payment, last year's tax return for any figures relating to the balance sheet, like assets. Other key pieces of information, which are needed are the ABN, the company name, address and phone numbers.
In this case study, we'll be setting up an AccountRight Live file for Carol's Cleaning. Carol's Cleaning is a small cleaning business whose main services are general, window, carpet and floor cleaning. The business also sells window, carpet and stain removal products. Carol's Cleaning uses an accrual accounting system, where all the sales both cash and credit, and all expenses, both paid and unpaid, are entered into the data file. This accrual system results in more accurate reporting of business trends but involves more data entry.
The alternative is to use a cash accounting system, which means that only cash that is actually received and payments that are actually made, are entered into the data file. Bills from suppliers are only entered when the account is paid. Using a computerized accounting software package like AccountRight Live, makes double-sided book keeping so easy. Double-sided bookkeeping tracks where the money came from and where the money is allocated to. Each transaction must be analyzed to determine what type of accounts are affected, and whether each account is increased or decreased in value, so as to determine whether the accounts are to be debited or credited.
Each accounting transaction should have two complementary entries. This diagram illustrates the accounting equation and the accounting rules that dictate which accounts are debited or credited. Note that the rules for liability and owner's equity accounts are the opposite of the rules for asset accounts. If $100 was spent at a stationery supplier, this is the double-sided entry in a computerized accounting system. $100 from the check account, which is an asset type account, to stationery, which is an expense of $90.91, and $9.09 of GST paid to the supplier, which is a liability account.
A list of accounts can be generated by AccountRight Live based on templates within the software, or we can choose to build our own chart of accounts. The accounts list, or chart of accounts as it's sometimes known, includes assets, liabilities, equity, income, cost of sales and expense accounts. Which will report the financials. We’re going to use the service template to start the accounts list. Carol Shines started the business in July 2014.
However, she has decided to commence the company data file on the first of January, 2015. As the previous six months have been recorded manually, we are therefore working in the financial year 2014-15. All screen shots and dates in this course reflect the financial year 2014-15. We'll learn more about Carol's Cleaning as we work through the videos.
Author
Released
6/12/2014- Creating a company file
- Understanding libraries and where your data is
- Setting up tax codes
- Adding accounts
- Creating customer and supplier cards
- Performing a bank reconciliation
- Recording transactions
- Invoicing a customer
- Processing payments
- Entering and paying bills
- Recording cash sales
- Reconciling cheque accounts
Skill Level Beginner
Duration
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Introduction
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Welcome37s
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1. Getting Started with MYOB
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Case study overview4m 30s
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Setting up preferences3m 5s
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Setting up tax codes1m 38s
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Using the Help Centre1m 33s
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2. Working with the Accounts List
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Designing the Accounts Lists2m 44s
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Changing account details3m 19s
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Creating an account1m 53s
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Deleting an account1m 19s
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Linking accounts3m 42s
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3. Adding Cards
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Overview of cards1m 12s
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Adding customer cards6m 49s
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Adding supplier cards5m 2s
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Deleting cards1m 9s
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4. Entering Historical Balances
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Searching and finding cards1m 48s
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Customer historical balances3m 30s
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5. Initial Bank Reconciliation
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An overview of reconciling1m 42s
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6. Backing Up and Restoring a Company Data File
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The importance of backing up1m 18s
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7. Spending Money from the Cheque Account
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Banking preferences1m 50s
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Recording bank charges3m 27s
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Viewing transactions4m 14s
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8. Invoicing a Service Customer
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An overview of invoicing1m 27s
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Sales preferences3m 55s
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Creating service invoices8m 55s
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Changing the status of sales4m 48s
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Viewing sales information1m 59s
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9. Recording Customer payments
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How much do customers owe?1m 46s
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Customer statements1m 47s
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10. Entering and Paying Bills
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Purchase preferences3m 10s
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Recording bills to be paid2m 43s
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Viewing supplier balances2m 16s
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Paying bills3m 4s
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11. Receipting Cash Sales
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Recording cash sales2m 42s
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Viewing cash receipts1m 47s
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12. Reconciling the Checking Account and Bank Feeds
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Why reconcile?1m 36s
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Preparing a bank deposit3m 32s
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Conclusion
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Next steps7s
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Video: Case study overview