Posting in accounting: What is it?

Postingin bookkeeping is the point at which the parities in subledger and the general diary are moved into the general record. Posting just exchanges the aggregate parity in a subledger into the general record, not the individual exchanges in the subledger. A bookkeeping supervisor may choose to take part in posting generally rarely, for example, once per month, or maybe as habitually as once every day. 

Subledgers are just utilized when there is an expansive volume of exchange action in a specific bookkeeping territory, for example, stock, creditor liabilities, or deals. In this way, presenting just applies on these bigger volume circumstances. For low-volume exchange circumstances, passages are made straightforwardly into the general record, so there are no subledgers and consequently no requirement for posting.

For instance, ABC International issues 20 solicitations to its clients over a one-week time frame, for which the sums in the business subledger are for offers of $300,000. ABC's controller makes a presenting section on move the aggregate of these deals into the general record with a $300,000 charge to the records receivable record and a $300,000 credit to the income account. 

Posting is likewise utilized when a guardian organization keeps up discrete arrangements of books for each of its auxiliary organizations. For this situation, the bookkeeping records for every backup are basically the same as subledgers, so the record aggregates from the auxiliaries are posted into those of the guardian organization. This may likewise be taken care of on a different spreadsheet through a manual solidification process.

Posting has been wiped out in some bookkeeping frameworks, where subledgers are not utilized. Rather, all data is straightforwardly put away in the records recorded in the general record. 

At the point when posting is utilized, somebody investigating data in the general record must "bore down" from the record aggregates posted into the significant general record records, and pursuit in the definite records recorded in the important subledgers. This can involve a lot of extra research work. 

From the point of view of shutting the books, posting is one of the key procedural strides required before monetary articulations can be made. In this procedure, all conforming passages to the different subledgers and general diary must be made, after which their substance are presented on the general record. It is standard now to set a lock-out banner in the bookkeeping programming, so that no extra changes to the subledgers and diaries can be made for the bookkeeping time frame being shut. Access to the subledgers and diaries is then opened for the following bookkeeping time frame. 

On the off chance that posting coincidentally does not happen as a major aspect of the end procedure, the aggregates in the general record won't be precise, nor will the budgetary articulations that are arranged from the general record.

Diary is only an ordered record of all business exchanges. Yet, in the event that we need to know the net impact of different exchanges influencing a thing, we have to experience the entire diary. It requires investment. You realize that time is cash in business. 

Accordingly, to conquer this trouble, we keep up another book called "Record."

Record is a book which contains, in an outlined and characterized structure, a complete record of all exchanges. Since it contains complete data about different exchanges, it is known as the 'Important Book'. Last records of a business are set up on the premise of record.

Rules for Posting into Ledger:

Posting into record is produced using diary sections went in the diary. Mention that each diary passage will must be posted into all records which have been charged and credited in the diary section. Backtracking to Illustration I, for products obtained for money. Buys Account is charged and Cash Account is credited. While posting this section into record, it will be posted both in Purchase Account and also in Cash Account. 

Postingwill be made on charge side of the record which has been charged in the diary section and, likewise, using a credit card side of the record which has been credited in the diary, passage. Keep in mind, the postings into record will be made in sequential way (date-wise).

In the specific section, the name of the record (went before by 'To') credited in the diary passage will be composed. Thus, while posting on the credit side of the record, we should compose the name of the record (went before 'By') charged in the diary passage. 

The measure of diary passage will be appeared in the sum sections of both records lastly records will be adjusted.

Steps for Starting With QuickBooks Accounting Tools

Now that you're most likely arranging your funds for recording your 2012 business charges, you might need to consider - or reevaluate - the devices that make up your organization's bookkeeping base.

Little organizations need a bookkeeping arrangement that is secure, adaptable and simple to impart to a bookkeeper. One mainstream choice - that conveys on each of these checks - is Mountain View, Calif.- based Intuit's internet bookkeeping programming, QuickBooks Online, Simple Start ($12.95 every month). QuickBooks offers a rich chronicle of budgetary apparatuses from basic record following and invoicing to alternatives for overseeing sellers, contractual workers and representatives.

However, as valuable as Intuit's administrations can be, some individuals can think that its confounding or overpowering to explore right out of the entryway. To get you on the right balance, here are the fundamental strides to begin with QuickBooks.
 

Find an accountant.

Before you begin, the primary thing you need to do is examine relocating your funds to QuickBooks with a trusted monetary expert. For this, Intuit offers an online bookkeeper coordinating administration called ProAdvisor. In any case, most bookkeepers backing the administration, so a nearby referral can function too.

The reason: a telephone discussion or email trade with the bookkeeper to decide and affirm the specifics about your business that QuickBooks needs, including your business structure, the right traditions for following costs, and your commitments in regards to state or neighborhood controllers.
 

Review the QuickBooks basics.

Presently, get comfortable with the product. Regardless of the possibility that you are OK with numbers, invest energy in the "Beginning" tab on the instructional exercises that present how QuickBooks' ponders dealing with the bills you send and get and your company's expenses. QuickBooks orders income as "Cash In," and costs as "Cash Out." It then maps the stream of these assets through your business in a graph called "Getting Around."

Set up a secure environment.

Security is basic at whatever time cash is in question, and especially so with QuickBooks on the grounds that your whole money related life is in one spot. Before you begin entering delicate monetary data, go to the "Change Password" tab in the "Your Account" area and make an extraordinary and complex secret key. You likewise ought to consider transforming this and the passwords that QuickBooks stores - your internet saving money IDs at your bank's site and in QuickBooks - each quarter.

 Enter your business vitals.

Since you are acquainted with the QuickBooks rudiments and your passwords set, go to the "Inclinations" join in the "Organization" tab and enter your organization's monetary points of interest, in light of the preparatory discussions you had with your bookkeeper. More often than not, the most vital things are business structure, reporting shapes, Tax ID number and reporting schedule. Yet, that can shift by business, and even minor points of interest can be basic. Consider twofold checking these points of interest with your money related counselor by telephone or email.

Enter customer information.

Presently, make a beeline for the "Client" tab and start entering customer data. While name, address and email are essential, the basic component is the "Installment Method" choice. Check with your clients straightforwardly to figure out if they favor paying with money, check or charge card. At that point, set the choices as required and, if conceivable, create a test receipt for your customers. Affirm with them that all acts as it ought to.

Enter essential merchant and worker data.

Next, go to the "Sellers" and "Representatives" tabs. Begin by entering the contact data for who works for you and who offers to you, yet don't feel compelled to enter all of point of interest that QuickBooks prompts. Affirm every section by producing a report with the "Report" catch on the privilege of the screen. Now, there shouldn't be a requirement for alternatives, for example, "Oversee Bills" or "Finance."

Start following the cash stream.

Presently comes the precarious part: representing the genuine dollars your business makes and spends. For this, dive into the "Saving money" tab and spotlight on the fundamental reporting alternatives to track the cash you make and the costs your business causes. You can associate with most significant monetary records -, for example, ledgers and charge cards - from here.

Make sure you can cut checks with the "Compose Checks" tab and deal with your expenses and deals in the "Visa Expense," "Money Expense" and "Store" headings. Do a trial keep running with each of these elements to ensure that you comprehend them effectively and QuickBooks is recording the information appropriately.

You'll likewise need to deal with the action for you. You can utilize the "Oversee Users" screen, situated in the "Your Account" segment, to include clients - in a perfect world just yourself and your bookkeeper - and to view "Movement" reports that show who has done what inside the record.

Survey cost marks and affirm them with a bookkeeper.

Business stores must be sorted out by class for both assessment purposes and for controllers. Thus, you'll have to know the stray pieces of portraying what your business spends. Make certain to see how to track "Money Expenses" by hand versus naturally downloading cost information from a bank or credit account, which can generally be found in the "Downloaded Transactions" area.

Physically entering money costs into QuickBooks can be a moderately basic procedure. Enter a sum, appoint a merchant and connect a reminder. Cost information from bank or charge card records can be transferred consequently. Once more, it's likely a smart thought to affirm with a bookkeeper at an early stage that you are naming these effectively.

Make your first benefit and misfortune report.

Since you've checked on your cost marks, it's a great opportunity to decide the amount of cash your business makes. Intuit has a full arrangement of reporting devices at the same time, for the present, focus on the "Benefit and Loss" report found in the "Report" tab. Basically, the Profit and Loss report includes what you made for a period and afterward subtracts the costs you brought about taking into account the information entered in QuickBooks. In addition to other things, the report can give you a thought of the money you'll need close by to pay charges on your potential benefit.

Moreover, Intuit offers a "Remember" capacity that makes it simple to catch this and other particular reports all the time and run them by your bookkeeper.

Include highlights as required.

When you have the rudiments down - invoicing, deals following, cost checking, and deciding benefit or misfortune and expense commitments - you can begin including highlights. Your next strides may incorporate making an essential monetary record, investigating your announcement of money streams, and computerizing how you accommodate your bank proclamations.

QuickBooks offers an application focus to work in cutting edge instruments for client relationship administration, stock and charging. There are likewise versatile applications for Android and iPhone that empower the vast majority of the essential QuickBooks online components.

Practice Eye Cash Flow Analysis: Case Study

Analysis Cash Flow to Gain New Business

PracticeEye recently received a call from a young lady who had started a manufacturing and retail business. She manufactures very high end bridal and other types of gowns. The gowns are sold in her retail stores ranging in price from $4,500 to $10,000.

She is a great designer but has little business experience. She started the business with $85,000. Our team initial conversation with her, the bulk of which consisted of many questions from me regarding her business, was by phone.

We asked about her annual volume.

"$600,000," she replied.

"A small client for our firm," I thought, "Tell me about costs, margins and your number of employees...what are your major problems"?

"I need cash. I have a lousy bookkeeper. I am running out of money. I think bank loans would help. What do I do?" she asked.

"Not unusual for a start up," I thought.

Our team invited her over to our office to perform an analysis as to what she might expect. One of our team member asked her for a trial balance so we could review it before we met.

Step 1 - Perform the Forecast

We handed the TB to my secretary (who had learned how to use the key-in feature of the Up Your Cash Flow [UYCF]). We sat down for a couple of minutes and I indicated which expenses on the P&L were fixed. All others were variable.

It took Richard, my secretary, about 15-20 minutes to key in the trial balance sheet and transfer the information to the main section of the program. He printed the opening balance sheet, P&L, cash flow, forecasted balance sheets and the assumptions.

Step 2 - Review for Accuracy

Our account expert team spent about 5 minutes reviewing his work. Only one change was needed.

Step 3 - Set Up a Consultation

The client and I met two days later. She brought more current data along with a sales forecast for 2006. We sat at my computer to discuss and adjust the details of the forecast. With little business and financial experience, I found her to be quite bright. She was a quick learner.

During the process she indicated that she hired another accounting firm to prepare some forecasts for the business at a cost of $3,500.

"A lot of money for a start up to be paying," I thought.

She also complained that every time they needed to make a change to the forecast it became a rigmarole using spreadsheets and quite costly. She was amazed at how easily I could forecast revenues by "Bridal Gown sales" and "Other Gown sales" and make assumption changes in seconds.

Step 4 – Explain What the Financials Mean to Your Client

She now had a better handle on the amount of cash she would need and when she would need it. We discussed the various avenues of raising the bucks. I told her how very difficult it would be.

She was paid for her product in advance. She received 50% down, then 25% 30 days later, and another 25% in the 30 days following. This practice resulted in minimal receivables. Her business had no collateral available to sustain a traditional loan. No home to put up.

She needed cash for raw material, mfg overhead, inventory, advertising and very expensive samples. Her original $85,000 was not enough.

Step 5 - Quote the Fee

I quoted a ball park fee for 12 months accounting service which fell in the range of $10-15,000 depending on what needed to be done. I discussed a retainer.

We set up an "Action Plan"

Step 6 - The Action Plan

Her responsibilities:

1. She needed to refine the assumptions relating to inventory and expenses. It adds more precision to the forecast.

2. She would need to spend some time attempting to identify potential investors.

3. Take a physical inventory so we could figure out her real margin.

Our responsibilities:

1. Refer a new bookkeeper.

2. Send an email blast to my networking groups to see if anyone might know someone interested in debt or equity financing for a start up. We might get lucky.

Conclusion:

A new client. A reasonable fee. All in less than 90 minutes (including my secretary’s time.) By the way We didn't charge her for the initial work. Will she be a good client? Yes if she makes it. It was worth the 90 minutes.

Our senior team member wouldn’t promote the program if he didn’t know its true worth. We have used Up Your Cash Flow every business day since our team developed the program. It is more than financial forecasting software, more than a means to perform cash flow analysis; it is a connectivity tool to enhance client relationships and generate new business and Practice Eye team build a new connection with our client.