Accounts allow you to track the movement of money and classify transactions. Accounts are made up of a Purpose and Descriptive Name such as Income: Consulting or Expense: Telephone
Accounts make up your Chart of Accounts (COA). They can also be "transaction" Accounts such as personal or business accounts that you have with a bank, credit union, or other financial institution. These may include any credit card, loans, savings & check/cheque accounts, as well as store/retail credit cards. You may also include Trust or similar accounts where transactions are conducted on your behalf. In Saasu these are collectively called "Bank Accounts"
How do I use Accounts?
You apply an Account to a transaction when you create it. That way Saasu knows what's it's for and where to put it in reports and lists. You also apply transactional accounts such as a bank account when entering payments in Saasu.
Level of Accounts
Accounts can be Header Accounts or just Accounts. Header Accounts sum up Accounts in some reports such as the Profit and Loss Summary Report. A Header Account might be called Travel while the Accounts belonging to it might be Airfares, Motor Vehicle and Taxis.
Types of coding/allocation Accounts
- Income - For Accounts that track any income streams you have. Income accounts may include consulting fees, rent, bank interest, or profit made on investment sales (such as the sale of shares or an investment property)
- Expense - For accounts that track any expense types you have. Expense accounts may include stationery, land rates, maintenance and repairs etc.
- Asset - For accounts that track your assets. These may include your house, fixtures and fittings
- Equity - Used for capturing retained earnings from prior years, owners and shareholders capital.
- Liability- Liability accounts.
- Other Income - Often used for interest receipts and tax credits.
- Other Expense - Often used for interest expense and tax payments.
- Cost of Sales - Used by the inventory system for tracking the cost of goods and services for making a sale.
The naming of Accounts
The descriptive names usually given to Accounts are common names like "Telephone", "Rent" or "Sales". This is the descriptive name can also be for Accounts which often refer to the accounting methodology. As an example "Pension Payable" implies the account is used to hold money pending payment to a Pension Fund.
Default Tax Code
Allows you to set a tax code that you are most likely to use when selecting this account code. It saves key strokes and can increase accuracy. It's best not to set a default for Accounts that vary significantly in their use such as Expense: Sundry Expenses
Accounting software systems usually provide for a ledger code to allow segregation of transaction flow at different levels. Typically older style software accounting systems are dominated by ledger codes rather than using plain language like Saasu does. Providing the ledger code also allows people to migrate to Saasu and map their old ledger code to their new Saasu simple language code. The Ledger Code isn't used in Saasu to generate reports.
Choose the Header Account you want to put this Account under. Note if you are creating this account as a Header account then this option won't be available.
In-built Accounts that cannot be edited or deleted because they are required by the online accounting engine for other processes and features that you may use now or in the future as your business grows.
Journal entries often occur automatically behind the scenes that use these in-built Accounts. One common example is when you create a Sale a journals between the in-built Accounts Receivable Account called Asset:Accounts Receivable and the Income Account you chose for the Sale. Later When payment is applied a further Journal between the Bank Account you selected and the same Accounts Receivable Account is created.
Enable bank payment file (ABA) creation
This option allows you to create ABA files to be uploaded to your financial institution. Bank Code: Unique Code used for ABA Direct Entry files. Usually three characters. e.g. WBC, SGB, CBA, NAB, ANZ Bank Client User ID: Some banks require this. ClientID for bulk payments it’s sometimes referred to as. Leave blank if you aren’t sure if you require this to process ABA Direct Entry files.
Create groups of like accounts in your chart of accounts and sum them in your Profit and Loss Summary Report.
This capability also allows advisors and business owners to set account hierarchy and naming in line with regulatory or statutory accounts compliance needs. Some examples are:
- Assets > Bank, Current Assets, Non-current Assets, Fixed Asset, Inventory.
- Liability > Current Liability, Non-current Liability, Directors Loans.
- Expenses > Depreciation, Direct Costs, Travel, Communications, Fixed Costs.
What can you do with Header Accounts:
- Header (parent/hierarchy) accounts for Summary Profit and Loss.
- Import/Export header accounts and detail accounts.
- Assign existing accounts to a header account.
- API supported for Get, Post, Update, Delete or Listing
Don't need header accounts? Don't worry, your reports will be the same.
The Accounts List screen displays a list of Accounts that you have created, are in-built or are in-active. Accounts allow you to classify transactions entered into Saasu.
What can I do with the Accounts list?
- Add a new Account > Click the Add link at the top of the list (you can also add Accounts as you go in transaction screens).
- Edit an Account > Click on the Account name you wish to edit in the list.
- Delete or Set to Inactive > tick the box next to the item you wish to delete in the list, then click on the Delete button up the top.
If any transactions are referencing this Account you are deleting, you will be given the option to either set it to inactive or move to a different Account.
Looking for Accounts Set to Inactive
For Accounts that you have previously used when entering transactions but you no longer do regular business with, you can make these inactive. You can view this list on View > Accounts then select Show Inactive.
By placing Accounts in the Inactive list, these Accounts do not appear in the drop-down lists for adding new transactions. They will however appear in the Accounts list when you are editing a transaction that still references this particular Accounts. They will also appear in relevant reports as well.
You can later re-activate the Account by clicking the Edit icon next to the Account and ticking the "Re-activate this Account" check box and saving the Account.
Looking for In-built Accounts
To perform some more advanced functions, Saasu uses some Accounts that are built-in. These Accounts are listed here so that you know you don't need to created these Accounts yourself.
View your Chart of Accounts
Click View > Accounts. The Accounts list is your Chart of Accounts and is made of of bank (transactional) accounts and normal accounts.