By understanding how the accounts are credited the company will be able to

By understanding how the accounts are credited the

This preview shows page 38 - 42 out of 127 pages.

By understanding how the accounts are credited the company will be able to track what area of the business each transaction made is affecting. 37
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Options Spreadsheet Templates One option to track these transactions is manually through an Excel template where the Chart of Accounts and Accounting Journal are created. An example of the templates are shown below and would need to be edited to match all of the company’s current accounts and each transaction. The template of the accounting journal includes an input center for the date of the transaction, the account being affected, and for the debit and the credit amount where both should be inputted as they affect two separate accounts. Recording both the debit and the credit accounts is referred to as double entry accounting. Double entry accounting helps ensure that debits always equal credits and there are no errors being made in the accounting process. However, manually tracking these accounts may prove to be time consuming and difficult for the Classic Gentleman owners to record themselves. 38
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QuickBooks An alternative option for tracking these accounts and numbers may be through QuickBooks Online. Upon setting up QuickBooks Online with the selected industry, it will automatically provide a chart of accounts and will include the accounts: accounts receivable, accounts payable, inventory asset, sales taxes payable, and retained earnings (Shelton, 2018). While these are important accounts, they do not include all the accounts that a company will need to track and may include unnecessary accounts in relation to Classic Gentleman. The company will need to identify the accounts that include assets, liabilities, owners’ equity, revenues, cost of goods sold, operating expenses to understand which to include in the chart of accounts. FitSmallBusiness provides a reference chart to help show in each column: the categories to choose from when setting up an account, the examples of accounts users can set up in QuickBooks Online, and then the financial statement they show up on, respectively (Shelton, 2018). 39
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The following list provides the steps for creating new accounts in QuickBooks Online (Shelton, 2018). 1. Display Chart of Accounts List by clicking on the gear icon and then finding it under the ‘Your Company’ column 2. Click on the ‘New’ button 3. Complete the fields for: a. Account Type b. Detail Type c. Name d. Description 4. Click ‘Save and New’ and repeat to set up additional accounts The following list provides the steps for deleting accounts that will not be used in the Chart of Accounts in QuickBooks Online to make the list more manageable (Shelton, 2018). 1. Display the Chart of Accounts List as explained above 2. Scroll to the desired account and click on the drop-down arrow in the right column 3.
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  • Spring '17
  • Trisha Miller
  • Accounting software, Comparison of accounting software, Classic Gentleman

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