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Select Accounting on the left hand navigation bar to begin.
From the submenu, we’ll first select Chart of Accounts.
The Chart of Accounts is a list of all accounts used by your company. By sorting transactions into different accounts, for example, Undeposited Cash or Accounts Payable, your business can track their finances by category.We’ll look at Cash in Bank.
On the Cash in Bank page, we can see that it has a GL Account number 1000. Here you can also select in the Type field if the account is an asset or a liability.The Subtype field gives you further space to define the asset or liability.
To the right, you can add an Account Usage to the account. For example, you would assign your AR Account to the AR Account usage.Click on Recent Activity tab to continue.
On the Recent Activity tab, all associated transactions are shown.
Next, select Checks from the submenu in the left-hand navigation bar.
This page contains all checks written by your company. You can learn how to write checks of your own in the Bills and Checking lesson.We’ll continue on to Reconciliations in the submenu.
This page shows all of your company’s reconciliations.Reconciling an account is the process of going through a bank statement and ensuring all transactions are present and add up to an accurate total.Let’s enter a new reconciliation. Click + New.
For our example, we’ve received a bank statement for our account labeled 1000 Cash in Bank. We’ll select the account name in the Account field.
The Statement Date is also listed on the statement. Add it to the appropriate field.
The Beginning Balance field should match the beginning balance found on the statement. Enter the statement’s Ending Balance before continuing.
Click Finish to begin reconciling the statement.
On the Reconciliation page, all transactions not yet assigned to a statement appear. On the left, you’ll see Debits, or the money and payments received by your company. On the right are Credits, money or checks your business has paid out to vendors.
To reconcile the account, look over the bank statement. For every transaction that appears, mark it by clicking on the transaction on this page. If all Debits appear, as they do in this example, you may select Mark All to select all.
Do the same for Credits. We will select Mark All here as well.As you mark transactions, you’ll see the totals at the bottom half of the screen will update.
ApparelMagic starts with your Statement Opening Balance, adds your debits and subtracts your credits, totaling in the Reconciled Balance field.
The difference between the Reconciled Balance and the Statement Ending Balance on your statement is shown in the Difference field.When these fields are the same, that means you can successfully reconcile the statement.
To finish, simply click Reconcile at the bottom of the screen.
Next, we’ll move on to the Journal page.
Often, a business will have expenses and earnings outside of normal purchase orders and customer orders. These can be added to ApparelMagic for accurate accounting in the General Journal.Click New to create a new journal entry.
Using the Notes field, we’ll note the reason behind this journal entry.
Click Finish to continue.
After adding the account, use the AP column to show which check to associate the transaction, and use the Debit column to show the amount.Next, we’ll use the + button to add the account we are crediting.
We’ll select 4110 Sales Discount as our account.
Using the available fields to describe the transaction, we entered the vendor into the Company field, the Invoice number, and amount into the Credit field. Once the debits and credits are equal, the record is considered balanced.
Save your record using the button at the bottom of the screen.
Accounting records cannot be deleted, and if there is a mistake, you must correct it and update or void the record.Clicking Actions, you have the options to void, lock, unlock, or update the entry.
Click List to return to the General Journal.
Next, we’ll continue on to the Ledger page in the submenu on the left hand navigation bar.
The General Ledger lists all transactions your company has made.Using the same sorting tools as in other modules, you may quickly and easily find records.For example, if we want to search for every discount we’ve given, we can search by GL Acct.
Searching our 4110 Sales Discount account will bring up all discounts we’ve given our customers.View all by clicking the button at the bottom of the screen.
You can also sort records appearing on the page. Clicking Amt DB will show amounts debited in descending or ascending order.Amt CR will do the same for amounts credited.
Let’s look at some of the reports we can make using accounting data. Select the Reports module in the left hand navigation bar.
Select Accounting from the submenu.
The Accounting Reports page has a number of accounting tools.For example, if we’d like to look up all payments a customer has made and where the money was deposited, we can use a Payment Register.Click Payment Register to begin.
To run the report for just one customer, you can enter their name in the Customer field.
Use the date field if you would only like to look up transactions from within a set of dates.
When you’ve selected all necessary search parameters, click Continue.
The Payment Register keep tracks of all payments made to your business. Here, we see all payments made in our selected dates, along with what accounts the payments went to.Click Close to continue to the next report.
To ensure they are keeping current with their payments, businesses often run AP Aging reports to show any open AP invoices and their ages.
The AP Aging report shows all open payables to vendors sorted by the age of the invoice. For example, we can tell that this invoice is between 1 and 30 days past due.Click Close to continue.
Apparel businesses often work with small firms and contractors who need to be issued 1099 tax forms at the end of the year.ApparelMagic lets you look up the amounts needed to request and complete these forms in the 1099 Amounts report.
Use the Date Range to select the year for which you are preparing taxes.In the Minimum Amount field, define the lowest amount you would like shown in the report. In the US, vendors must be sent forms for any amount over $600. Click OK to continue.
This report shows contact information and amounts for all vendors for use on 1099 forms. You may Print or Share using the buttons at the bottom of the screen.Click Close to finish.
This concludes your introduction to the primary menu options in the accounting module of ApparelMagic.Now that you’re familiar with the accounting tools, go ahead and run the reports on your own using your customers.