Online Suggestions

Having looked at an online accounting solution for my partners rapidly growing travel business last year, I left it alone as it lacked SOP and POP. I stopped looking at that point (a little disappointed if I'm honest) and we continued to use the current local accounting package

With the implementation of a travel industry software package in the last months, which deals with the SOP and POP issues and also generates the accounting entries in consolidated form, I am free to re investigate online options again.

My essential requirements are now:

- multi user with restriction rights

- multi currency

 

Optional but not essential:

Bank feeds for multiple accounts including foreign currency (we bank with HSBC and this would remain the situation in the foreseeable future). We use HSBC Net which as far as I am aware is the only way to see HSBC foreign currency bank account transactions online.) Without Net only foreign currency bank account balances are visible

We currently are under the TOMS VAT scheme (which I don't think any online solutions would deal with) but are looking to move to the standard VAT basis. With that may come the requirement to register for VAT in another EU zone i.e. Ireland. (and possibly other locations in the future). Therefore a system to handle dual VAT tracking would be ideal. If the ability exists then a consolidated position for reporting would also be ideal

We may also have to do a large number of balance sheet reconciliations. Are there any systems that allow this online. i.e. to contra entries and see remaining entries in each balance sheet account

 

 

 

Comments

Not sure on the correct process

mcstar01 | | Permalink

My customer has overpaid me 1p and I don't want to enter an overpayment or credit against their account as it's a nominal amount. Is there a way I can reconcile the payment even though it's a different amount to the invoice?

I paid a number of cheques into the bank and this is showing as a single deposit in the bank. What is the quickest way to reconcile this bank statement line to the 3 invoices I received payment for?

What is the year end procedure e.g. How do I reset my Profit & Loss account at year end so that balance don't accumulate into the next year?

xero vs sage

mcstar01 | | Permalink

Why is Xero better than Sage?

I'm new to Xero and looking to add in sub accounts in my chart of accounts relating to the different revenues and costs for the different departments in my business. Can you help point me in the right direction?

garyturner's picture

Xero Tracking Categories

garyturner | | Permalink

@mcstar01

You can configure two separate tracking categories in Xero, one could be used for departments in this case and the other for another analysis basis such as country or rep / employee.

The codes are then used to tag transactions as they are processed enabling you to then run reports based up on different Tracking Categories to get the split out you require.

More help is here http://help.xero.com/#Settings_Tracking 

 

Regards,
 

Gary Turner
Managing Director, Xero
@garyturner

 

Gary,

bocsta | | Permalink

Gary,

 

Any plans to introduce reversal journals i.e. journals posted with a reversing flag so that on day 1 of the next accounting period they automatically reverse ?

( I understand at the moment in Xero you have to manually reverse a journal)

 

Reversing accrual journals have been in every accountants top 3 weapons of choice for the month end process since accounting was invented

 

garyturner's picture

No plans to make reversing journals automatic..

garyturner | | Permalink

@bocsta

Automating reversing journals is something we are occasionally asked about, but it's not something we're working towards adding in the short term, so it's manual for the time being.

We actually work quite hard to commercially balance our R&D focus between functional refinement versus adding new functionality - one day we may have the luxury of doing both simultaneously - but this implicitly means we'll delight some customers and frustrate others.

Time is the variable, we're certainly not done with refining the basic accounting engine stuff, but it's hard to say when we'll loop back and add some extra polish.

Regards,

Gary Turner

Managing Director, Xero
@garyturner 

 

Hi Gary,

bocsta | | Permalink

Hi Gary,

I think your R&D guys need to realise you make the user more smarter with online accounting and online also free up users time to focus on the numbers and business performance. And thats what any good accounting system should do.

Online systems also move users away from cash accounting and  provide more up to date numbers as processing is done in real time. There are no delays anymore with online accounting. At the end of the month 99% of revenue should be there.

Just as any user realises that all that revenue will become cash on the 20th of the following month (if they get their stick out), they also realise that all the current months expenses wont have to be paid until next month.

So its all good having that nice revenue number in there all done and dusted but we all know its worthless if we arent matching expenses to that revenue i.e. the matching concept

I fail to see how any user of the system could prepare a meaning P&L for instance without processing an accural journal on a reversing basis every month.

Do you still expect users of online systems to be getting their results mid month ? Waiting for those creditor invoices ?

Bottom line ... reversing journals should be in there ....its related to basic fundamental accounting concepts

 

 

 

 

garyturner's picture

There, just not automatic

garyturner | | Permalink

@bocsta

You can reverse journals in Xero, it's just that the reversing function cannot be scheduled to process automatically without user intervention. 

Our help centre has an explanation - http://help.xero.com/#Report_PostJournal

 

Gary Turner
Managing Director, Xero
@garyturner

 

 

Yes you can

bocsta | | Permalink

Yes you can

and credits due for it switching the amounts ...  but its only half the job

and as you highlight in the Xero help example, strangely enough its actually for something not yet invoiced...... which you'd always be reversing on posting of the invoice

You'll still stuck with tracking your journals which need to be reversed and manually reversing them

 

Please pass it on to R&D...should be up towards the top of your functional refinement to do list in my opinion

 

 

rant over :-)

garyturner's picture

Feedback...

garyturner | | Permalink

...always welcomed. Keep it coming.

Gary Turner
Managing Director, UK
@garyturner

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