ACCOUNTS & FINANCE

Accounting is an essential and unavoidable part of any business. Even small companies must adhere to stringent accounting practices to guarantee that their data is accurate and trustworthy. An Integrated Computerized Accounting Management System can make daily accounting tasks more efficient and error-free. Accounting serves as an important tool for maintaining a business, so you can take advantage of our accounting services.

Chart of Accounts

A Chart of Accounts (CoA) in an Enterprise Resource Planning (ERP) system is a comprehensive listing of all the general ledger accounts used by an organization to record its financial transactions. The CoA serves as the foundation for an organization’s financial reporting and accounting system

This section includes the owner’s equity or shareholders’ equity, which represents the residual interest in the assets of the entity after deducting liabilities.

Voucher

This type of voucher is used to record and authorize the disbursement of funds for various expenses. It typically includes details such as the payee’s name, payment amount, purpose of payment, and the signatures of authorized personnel who approve the payment.

A receipt voucher is used to acknowledge the receipt of funds, often in cash. It includes details like the payer’s name, amount received, date, and purpose of the payment. This type of voucher is important for tracking cash inflows.

Cash & Bank Book Report

A Cash and Bank Book Report is a financial statement or document that provides a summary of cash and bank transactions for a specific period. It is an essential component of an organization’s accounting and financial reporting system, allowing businesses to track and manage their cash and bank account activities.

This column contains a brief description of each transaction, which could include details about the nature of the transaction (e.g., sale, purchase, withdrawal, deposit, etc.) and any relevant details.

General Ledger& Individual Ledger

The General Ledger is a comprehensive accounting record that contains all the financial transactions of a business or organization. It serves as the central repository for all financial data and is the foundation of an organization’s accounting system. Here are some key characteristics of the General Ledger.

The General Ledger includes all financial transactions of the company, including those related to assets, liabilities, equity, revenue, and expenses.

Accounts Receivable

Accounts Receivable arises when a company provides goods or services to customers on credit. Instead of receiving immediate cash payment, the company extends a credit period to the customer, allowing them to pay at a later date.

When a sale is made on credit, the company records the amount as an Account Receivable in its accounting records. This increases the Accounts Receivable balance on the balance sheet.

Accounts Payable

When a company receives goods or services on credit from its suppliers or vendors, it incurs an obligation to pay for those goods or services at a later date. Accounts Payable reflects this outstanding debt.

When a company receives goods or services on credit, it records the amount as an Accounts Payable in its accounting records. This increases the Accounts Payable balance on the balance sheet.

Trial Balance

The primary purpose of a trial balance is to ensure that the total debits equal the total credits in the accounting system. This is done to identify and correct errors in the ledger accounts. If the trial balance “balances,” it suggests that the accounting entries are mathematically correct.

A trial balance typically consists of two columns: one for the debit balances and one for the credit balances. Each ledger account and its balance are listed under the appropriate column. The total of the debit column should equal the total of the credit column.

Financial Reporting

Financial reporting refers to the process of preparing and presenting financial information about an organization’s financial performance and financial position to external and internal stakeholders. I

This provides a snapshot of an organization’s financial position at a specific point in time, showing its assets, liabilities, and equity.

Income Statement (P/L)

This section of the Income Statement lists the total revenues generated by the organization during the specified period. Revenues typically come from sales of goods or services and may include other income sources like interest income or royalties.

The Cost of Goods Sold represents the direct costs associated with the production of goods or services sold during the reporting period. For a manufacturing company, this includes raw materials, labor, and overhead costs directly tied to production.

Expenditure Statement

The statement categorizes expenses into various categories, which can include items such as travel expenses, office supplies, utilities, meals, entertainment, rent, salaries, and more. Each category helps in organizing and tracking different types of expenditures.

Depreciation

Depreciation aims to reflect the decrease in the value of an asset on a company’s financial statements over time. This decrease is considered an expense, and by recognizing it, the financial statements more accurately represent the economic reality of the business.

The useful life is an estimate of the number of years an asset is expected to remain in productive use before becoming obsolete or non-operational. It is a key factor in determining the depreciation expense.

Statement

This statement provides a summary of a company’s revenues, expenses, and net income or loss over a specific period, such as a fiscal quarter or year. It shows how much money the company earned and how much it spent to earn that income.

The balance sheet presents a snapshot of a company’s financial position at a specific point in time. It lists the company’s assets, liabilities, and equity, and it demonstrates the accounting equation: Assets = Liabilities + Equity.

Statement of Cash & Fund Flow

The Statement of Cash Flow is a financial statement that provides information about an organization’s cash inflows and outflows over a specific period, usually a fiscal quarter or year. It categorizes these cash flows into three main sections:

This section includes cash inflows and outflows related to the core operating activities of the business. It includes items like cash received from customers, cash paid to suppliers, employee wages, interest paid, and income taxes.

Owner’s Equity Statement

Owner’s equity represents the ownership interest of the business owners. In a sole proprietorship, it’s the owner’s capital, while in a partnership, it includes each partner’s capital. In a corporation, it consists of retained earnings, additional paid-in capital, and other equity accounts.

This section includes any additional capital contributed by the owner(s) or shareholders during the reporting period. Contributions can include investments of cash or assets into the business.

Balance Sheet

Also known as Owner’s Equity (for sole proprietorships and partnerships) or Shareholders’ Equity (for corporations), this section represents the residual interest in the assets after deducting the liabilities. It reflects the owner’s or shareholders’ claims on the assets of the organization.

The Balance Sheet distinguishes between current and non-current assets and liabilities, which is essential for assessing an organization’s liquidity and financial stability.

Fixed Assets

Fixed assets, also known as non-current assets or tangible assets, are long-term assets held by a business that are not intended for sale in the ordinary course of business. These assets are used to generate income and provide value over an extended period, typically beyond one ye

The excess of the purchase price over the fair market value of the net assets acquired in a business acquisition.

Budgeting

Budgets help define financial goals and objectives. These goals can be short-term (e.g., monthly expenses) or long-term (e.g., annual revenue targets). By establishing clear objectives, budgeting provides a roadmap for achieving financial success.

A budget typically outlines expected income and expenditures for a given period. This includes revenue sources, such as sales, investments, or wages, and planned expenses, such as rent, utilities, salaries, and other operational costs.

Dashboard

ERP dashboards use various data visualization tools, such as charts, graphs, tables, and key metrics, to present complex data in a comprehensible format. These visuals make it easier for users to understand and interpret data.

Users can often customize their ERP dashboards to display the specific KPIs and data relevant to their roles and responsibilities. This allows for a personalized and more effective user experience.