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Transcript of Accounting Checklist
Frazer and Accounting: Where to Start
Arthur wants to know
Arthur is our dealer
by popular demand...
the WIKI! Starting Accounting Checklist
What date are we going to start with?
How long has the dealer been using Frazer?
Can we start with
the first of the year?
Review Inventory and Added Costs
but why?? seems like so much work!!
What reports show current inventory?
R-1-2 Inventory Listings
This report should match the sum of 1450 and 1470
make sure to NOT include lot fees
Pop Quiz #2
Why do we have to look at inventory as one of the first steps?
Vehicle cost determines the GL Inventory Account balances
Vehicle types determine which account the cost will post to
Are all the vehicles in inventory on the lot?
Is the original cost of the vehicle correct?
Are the added costs correct?
Pop Quiz #3
Cash in Bank
What are some of the common ways that a dealer pays for vehicles?
Make sure this screen is properly set up...
...so that this screen has the right options
Now Arthur knows how to pay for vehicles. Oh no! Ford entered some things wrong... What to do!?
Pop Quiz #4
What report can Arthur use to help him determine how vehicles were paid for?
List of Vehicles Purchased
Be sure to check all three boxes!!
Some of the vehicles on the R-1-6-1 are no longer on my lot. What do I do with them? Why does it matter?
for Added Costs!!
Pop Quiz #7
What report shows
how you pay for
R-1-0-S Added Costs Listing
Sorting by vehicle makes things easier
Some of your vehicles are floored. Are they all correct?
Arthur wants to know how to find out!
make sure to print for all companies
Some of these vehicles are on the floor plan report but are no longer floored. Does it matter? What do we do and is it important?
Pop Quiz #6
If prior to the start date:
If after the start date...
close the floor plan with the same date as they floored the vehicle so they are no longer on the R-1-5-A
check System Options to see how your floor plans are paid for...
properly pay for curtailments and the floor plan closing
(we recommend using 2000 Accounts Payable)
Now let's talk about your customers!!
Pop Quiz #8
Where do we enter pre-existing customers
and how do they effect the General Ledger?
There is no GL entry for Pre-Existing Customers
Sales, 7 - Pre-Existing Customers
Pop Quiz #9
How can we track these customers and keep them separate from the rest?
To validate the Pre-Existing Customer balance, run report
R-3-2-1 by Grouping
R-1-1 Price List
R-1-6 Inventory Valuation & Status
(and manually remove floor plan costs)
Now let's talk about money
and what happens when we collect payments
Arthur has to log each payment in this screen for each customer
so this screen will have the correct balance
Pop Quiz #10
What report will show all the payments recieved?
R-3-5-1 Transaction Listings
(remember to review all the boxes at the bottom of the report)
when payments come in, they are put into 1010 Cash in House (Undeposited Funds) - not directly into 1000 Cash in Bank
in order to get the money into the bank, you will need to do a deposit using A-D
Now to validate the General Ledger!!
Review the GL for manual posts affecting inventory, floor planning and accounts receivable
Pop Quiz # 11
What accounts should (almost) never be posted to manually?
Inventory (1450, 1470)
Accounts Receivable (1020, 1130, 1140, 1150)
Floor Planning (2210)
Unearned Interest (2450)
Unearned Discount (2460)
This REALLY seems like a lot of work. Why do we have to do this?
Frazer automatically posts to
these accounts so the dealer
does not have to. Posting
anything to these accounts can
mess things up!
We will need all checkbook and bank reconciliation data.
These are checks, ACHs and deposits written BEFORE the start date but clearing the bank AFTER the start date. You will also want bank statements beginning with the start date and going to present.
Enter checks and ACHs in this screen...
Enter all deposits in this screen...
Now is the time everyone has been waiting for!!!
What if Arthur does not have a good balance sheet?
Arthur must find the balances for certain accounts while some can be arrived at from the source reports in Frazer.
Frazer will arrive at balances for the following accounts:
1020 Contracts in Transit
1130 F&I Receivable
1140 Accounts Receivable
1150 Service Receivable
1450 / 1470 / 1570 all inventory accounts
2110 Notes Payable
2450 Unearned Interest
2460 Unearned Discount
Arthur will need to enter the sales for these vehicles. If they are duplicates, then he will need to remove them from inventory.
This is important to keep the GL clean and neat and so that it is accurate when they close the books or come tax time!
Pop Quiz #12
Why do we not include lot fees?
Is it an amount that is added to each vehicle to cover the cost of overhead. The real expense is not actually logged to each vehicle.
This report should match the sum of 1020, 1130 and 1140
make sure to use "today's" date
This report will match account 1150
Time to check the Balance Sheet for a date in the past!
Use a blank date!!
What if we still have balances showing on the 12/20/04 Balance Sheet??
With a programmer, Kenni, or Jaren, run the secret button located in the bottom left corner of the chart of accounts screen.
NOTE: This does not apply to 1000 Cash in Bank!
Now, run the Balance Sheet again for a blank date to see if that corrected the account balances and all accounts have a $0 balance.
If we have balances, more work and a possible BUR is required.
Here is what the report looks like:
Here is an example of that report:
And it looks like this:
At this point, let's make the assumption that either the BUR is done or one was not needed.
What is next?
Finally we can set balances!
Run a Balance Sheet for the start date less one day.
(example: if we are starting 1/1/12, run the Balance Sheet for 12/31/11)
If they are starting mid-year, we will also need accurate net income and retained earnings so we will also need to run the income statement.
Staying with our first of the year example from Arthur, here is his Balance Sheet from 12/31/11.
So our manual post to reverse out the balances is as follows:
This should be our result:
Now we can actually take Arthur's Balance Sheet and enter a manual post to set his balances to match!!
Enter a GL Closing Date here:
(Don't forget to check and make sure you entered things correctly!)
Last, but not least, Arthur is ready to begin doing his very first Bank Reconciliation!
Arthur wants to know how do we do that?
Well, Arthur will just have to wait until another presentation to find out!
Are the correct general ledger accounts used?