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Vacancy announcement: Dispatch Bikers for a food delivery company

bikers

Vacancy announcement: Dispatch Bikers for a food delivery company

SKYTREND CONSULTING is announcing vacancy for the post of Dispatch Bikers, for a fast growing lifestyle and food delivery company located at the heart of Allen Avenue, Ikeja, Lagos State, Nigeria.

To apply for this vacancy, FILL THE APPLICATION FORM BELOW THIS ARTICLE AND UPLOAD YOUR CV within one week of this announcement.

Application closes 1st April, 2021.

Applicants must have good understanding of Lagos metropolis and be experienced in driving commecial bikes.

Skytrend Consulting is  an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 385 7245 or 0803 239 3958. If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

READ ALSO! Accounting software implementation: 5 key stages in a new accounting system

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! SAGE 50 ACCOUNTING SOFTWARE: 8 KEY BENEFITS FOR YOUR BUSINESS

READ ALSO! SAGE 50 PEACHTREE ACCOUNTING SOFTWARE – ALL YOU NEED TO KNOW

READ ALSO! BBNaija Dorathy Launches Lingerie Line, Says Priority Is Making Busty Women Look Good

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

Sage 50 accounting Vs Sage 100 Evolution ERP — What you must know

sage 100 evolution

Sage 50 accounting Vs Sage 100 Evolution ERP — What you must know

An accounting software is a computer program that allows automation of financial records and processes and assists accountants, store managers and business owners in maintaining, posting and reporting an organization’s financial transactions within a functional system.

A good accounting software solution should contain modules such as customers, vendors/suppliers, sales ledger, purchases ledger, accounts receivable, accounts payable, journal, payroll, fixed asset direct cost (cost of sales) and indirect cost (administrative expenses), assets, liability, trial balance, general ledger, trial balance, income statement, inventory management, balance sheet, etc. Basically it functions as a complete accounting information system.

Sage 100 Evolution is a cost-effective Enterprise Resource Planning (ERP) software with a complete accounting and business management solution for small and medium sized businesses with an advanced operating environment.

The software, like many other popular ERP solutions includes very rich features and fully integrated modules, divided into several segments for different business areas. It allows businesses to maximize operational efficiencies, enhance business intelligence and drive productivity.

Sage 50 and Sage 100 are popular choices with businesses everywhere. However, they differ quite a bit regarding the features and functionalities they can bring to your workplace and what you can achieve through their use in your business.

If you have just started your business, it is likely that you would find Sage 50 a capable accounting solution that meets all your needs and provides you with a way forward.
However, if you are at a stage of expansion or going into the mid-market phase, you might find some of the inherent limitations of Sage 50 a little counter-intuitive. In such cases, Sage 100 ERP can definitely be a meaningful upgrade for you.

Let us take at how these solutions differ and what this can mean for your business.

Fundamental Difference Between Sage 50 and Sage 100 ERP
Sage 50 is offered as a plug-and-play accounting solution for small businesses and startups. The solution incorporates several important accounting features and functionalities while also providing different kinds of reports you can use to bolster your business decisions. It also includes basic inventory management capabilities.

This makes Sage 50 a particularly good solution if you operate out of a single office location and would not be affected by desktop-based functionality.

On the other hand, Sage 100 is a fully-features ERP or Enterprise Resource Planning solution for businesses on the path of growth. The solution, like many other popular ERP solutions, is divided into several modules for different business areas.

Accounting and inventory management, also found in Sage 50, are just two of these modules.

Apart from these, you also have modules for project management, HR management, purchasing and supply management, sales, customer management, manufacturing, business intelligence, and reporting to name a few.

Now that the fundamental difference between these solutions has been established, let us take a deeper dive.

Features and Functionality
The main area where Sage 50 and Sage 100 differ greatly is in terms of features and functionality. Sage 50 is an accounting solution that is meant for small businesses, preferably to be used by one organization that has relatively simple accounting needs and operates out of one office location.

Support for integrations and multiple users is limited and you would need to use other tools if you want to incorporate additional business areas and roles. In fact, using Sage 50 to deal with multi-user, multi-access business environments can be quite difficult.

Sage 100, on account of being a fully-featured ERP solution, contains many added features and functionality that can allow you to apply it to multiple business verticals like retail, distribution, and manufacturing.

Several internal and external processes, like purchasing management and payroll management, can be capably handled by the solution while it retains all the accounting capabilities of Sage 50 and extends it greatly with superior reporting.

Scalability
While offering some scaling, Sage 50 can become severely limited for expanding businesses quickly. The native performance and a visible end-to-end value chain inherent to Sage 50 cannot measure up to full ERP suites like Sage 100.

Sage 50 is meant to work with a limited number of users and the pricing of the product is also calculated for a certain number of users. If you need visibility and access for an increasing number of users, Sage 50 is likely to hit a wall sooner rather than later.

After a certain level of growth and expansion, your business can outgrow the scalability and functionality offered by Sage 50.

Sage 100, being an ERP solution, brings native support to be visible, accessible, and operable by multiple users simultaneously right out of the box. The flexibility on offer can enable you to apply Sage 100 to your current state of business and keep modifying and evolving it as your business scales up.

Customization and Integrations
Any software solution that you apply to an important business process needs to be capable of a degree of customization. In this regard, Sage 50 is quite basic. The core functionality can be extended in a few ways with dedicated Sage add-ons and there are limited integration options.
However, these are not designed to completely transform your Sage 50 installation to an enterprise-level solution.

Sage 100 natively supports a variety of business verticals with its many modules. This means that areas like inventory management, business intelligence management and payroll management can be natively handled by the solution without the need for third-party integrations.

Moreover, you can use a whole array of existing integrations and even pay for custom-built integrations created using the Sage source code. This means that Sage 100 can be deployed as a real enterprise solution for any kind and size of business.

In Conclusion
While Sage 50 and Sage 100 differ in many areas, either can be useful for your business depending on the stage of development your business is currently in and the expectations you have from the software solution.

For a smaller company or a startup that is just looking for an intuitive accounting solution, Sage 50 can be a very capable purchase that justifies its cost ably. However, if you are looking for faster, smoother, feature-rich operation that allows you to customize the software according to your needs, Sage 100 ERP is definitely the way to go.

If you are looking to expand your business and work with bigger customers and partners, it can be said that an upgrade to Sage 100 ERP can definitely be an overall positive for your business, allowing you to create a more inclusive, robust, and efficient workflow.

Extracted from medium.com

Skytrend Consulting is  an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 385 7245 or 0803 239 3958. If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

READ ALSO! Accounting software implementation: 5 key stages in a new accounting system

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! SAGE 50 ACCOUNTING SOFTWARE: 8 KEY BENEFITS FOR YOUR BUSINESS

READ ALSO! SAGE 50 PEACHTREE ACCOUNTING SOFTWARE – ALL YOU NEED TO KNOW

READ ALSO! BBNaija Dorathy Launches Lingerie Line, Says Priority Is Making Busty Women Look Good

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

Sage 100 Evolution ERP accounting software: All you need to know

SAGE 100 EVOLUTION

Sage 100 Evolution ERP accounting software: All you need to know

Sage 100 Evolution is a cost-effective Enterprise Resource Planning (ERP) software with a complete accounting and business management solution made specifically for small and medium sized businesses with an advanced operating environment, moving on the path of growth.

The software, like many other popular ERP solutions includes very rich features and fully integrated modules, divided into several segments for different business areas. It allows businesses to maximize operational efficiencies, enhance business intelligence and drive productivity.

Sage 100 Evolution manages all operational aspects of your business. It enables you to control your financials as well as relationships with your customers, suppliers, and employees. Developed within the Sage 100 Evolution Framework, all components and modules are fully integrated. And they share a common interface, providing you with a consistent user experience.

Data integrity is assured with Microsoft® SQL Server, and all your data is secured in a central database. As a core management system, Sage 100 Evolution is feature-rich, and its add-on modules make it a truly revolutionary Business Management Solution.

WHAT ARE THE 8 KEY FEATURES OF SAGE 100 EVOLUTION ERP?

1. Boost operational efficiency with an easy to use integrated solution

As companies continue to grow and evolve, so do their complexities. Sage 100 Evolution empowers companies to meet changing business needs with a comprehensive business management platform, designed to give you the most complete and accurate view of your business both from a financial and operational perspective.

The software provides the tools and capabilities to enhance business intelligence and meet complex financial requirements at any level.

2. Get accurate and real-time financial and accounting information at anytime

Sage 100 Evolution enhances your finance processes and business performance by the following capabilities:

*Date driven system that allows you to post transactions to any period at any time
*Ability to control who can open and close accounting periods
*Create and store unlimited financial accounting periods
*Print cheques of any bank in your own customized format
*Maintain multiple sets of companies with their own chart of accounts

3. Gain meaningful business insights with simplified reporting and dashboards
This is made possible by the following:

*Top Selling Items highlight your best performers, giving quantities sold and sales values
*Dashboard Sales History graph gives you detailed information by clicking on a bar in the chart.
*Add or remove dashboard widgets to display only the details most relevant to your business
*Key performance indicators to check sales performance and outstanding payments

4. Secure your data with advanced user permissions

*Add, remove or edit a specific user’s ability to perform certain functions
*Avoid unauthorized access to your data by setting permissions for each user, limiting what can be viewed and changed

5. Manage projects efficiently and profitably

*Link reporting groups to various cost codes
*Enhanced budget creation per project
*Income statements per project
*Allocate expenses and income per transaction per project

6. Control costs and simplify your purchase order process

*Reserve stock quantities for future delivery and forecast orders
*Create purchase orders automatically using the reorder fields on the inventory records
*Create quotes and convert into sales orders once confirmed
*Merge multiple orders into a single invoice
*Print picking slips and delivery notes
*Allocate sales representatives to each document or even to individual document lines
*Create financial lines and post non-stock amounts directly to the GL accounts

7. Make faster, better decisions with powerful business intelligence and reporting

*Get a snapshot view of your data with graphs, charts and slicers that make it easy to see what’s going on in your business
*Retain report formats for future use
*Flexible drill-down capabilities to get detailed analysis of transactions
*Generate reports instantly without the need to pull data manually from different sources
*Easily use Microsoft Excel Pivot Tables for further insights

8. Effectively manage inventory and operations across multiple locations

*Get complete control and visibility of your inventory
*Create inventory groups to sort and filter inventory items
*Maintain multiple units of measure and specify a buying and selling unit for each inventory item using Unit of Measure
*Factor costs like duty, brokerage, freight and insurance into your inventory cost and cost of sales using Import Cost Allocations
*Control pricing by only allowing a minimum gross profit value per inventory item
*Update your stock levels upon delivery of goods without even receiving the actual supplier invoice
*Serialized individual inventory items and keep track of them by their history using Serial Number Tracking
*Maintain multiple selling prices per inventory item or inventory group and per customer/supplier or customer/supplier group using Pricing Matrix.

7 MAJOR BENEFITS OF USING SAGE 100 EVOLUTION ERP

1. Cost-effective solution built on the latest technology

Sage 100 Evolution ERP helps organizations take control of all business operations without the need of a full-scale ERP solution. It doesn’t require lengthy deploy times, intricate configuration and a consultant always on site, making it a cost-effective solution for managing your business.

2. Simple, easy to use features

Sage 100 Evolution ERP boasts of a modernized interfaced, process flows, quick links to reports, a recently used section, the ability to copy and paste directly to and from Excel, and many more features designed to enhance your business processes making for a more efficient and productive working environment.

3. Take control of all business operations

With Sage 100 Evolution, you can control every aspect of your business, from inventory and finances to supplier engagements and customer relationships, allowing you to make informed decisions at every step, based on the data at hand.

4. Get a holistic picture of your business

The Sage 100 Evolution dashboard display is an intuitive and simple way of identifying and monitoring key factors of the organisation, ensuring that they perform at a level that ensures achievement of business objectives.

5. Additional functionality through add-ons

Sage 100 Evolution comes with a range of standard add-on modules like Sage Intelligence Reporting which makes customizing and distributing reports simple and easy, as well as CRM and Point of Sale, making it a robust and scalable business management solution that can be tailored according to your business needs.

6. Full integration means one reliable management experience

Sage 100 Evolution is powered by Microsoft SQL Express that results in a consistent user interface.

7. Unique transformational capabilities

Sage 100 Evolution allows for unique multi-currency transaction, multi warehousing and unlimited financial accounting periods.

It has a powerful performance and business management dashboard that help you make faster, better decisions. Also comes with a Central Data Search. It has a flexible Reports in Graph and chart, and can be Integrated with Microsoft Outlook.

TASK MODULES

The following task modules are available in Sage 100 Evolution ERP

General Ledger
Evolution CRM Standard
Point of Sale
Sage Online Tools
Multi Warehousing
Accounts Receivable
Account Payable
Cashbook
Import Cash Allocation
Inventory Control
Invoicing
Project Tracking
Report Writer & Stationery Customisation
Sales and Purchase Order Entry
System Audit Manager
Delivery Manager
Bank Manager
Mobility (limited to 5 users)

ADD-ON MODULES

Sage 100 Evolution ERP comes with a range of standard add-on modules like Sage Intelligence Reporting and many others which makes customizing and distributing reports simple and easy. Some of these include the following:

*Sage 100 Mobile: Allows you to access Sage on your mobiles and tablets

*Sage 100 Bill of Materials: Allows you to create assembly sheets for manufacturing & assembling.

*Sage 100 Job costing: Invoice job to customers with inventory, time, other expenses and link to a project.

*Sage 100 Fixed Assets: Manage unlimited number of fixed assets, depreciation, capex budgets and orders etc.

BASE MODULES OF SAGE 100 EVOLUTION ERP

1. The System Manager
The System Manager is the control center for the entire Sage 100 Evolution application. It is the system’s user interface. Featuring a System Tree for navigation, it also controls the system environment and set up, online help and multilevel password security. Sage 100 Evolution delivers enhanced efficiency, productivity and security to any business.

2. The General Ledger
The General Ledger is the heart of the financial function of your company. All processing you do eventually reflects in the General ledger. The system has no tedious month or year-ends. The system is date –driven, allowing you to post transactions to any period at any time. Note, however, that you can block periods that are complete, thereby preventing operators from accessing them in error. The system stores five years of financial information.

3. Report Writer
The Report Writer module allows you to customize standard reports per user as well as stationery layouts per user. It integrates into every module in the Sage 100 range. You can change layouts, add and remove fields and perform additional calculations or subtotals. You can even write your own SQL script for advanced reporting. The system includes a tutorial program that will guide you through the process of report writing.

4. Project Tracking
This module allows you to allocate income or expense transactions to particular projects. You can then filter reports on a project basis and create an income statement per project. Create master and sub projects and allocate budgets against each project to manage profitability.

5. Receivables and Payables
Sage 100 gives you instant access to customer and supplier balances, overdue totals and sales/purchases history. Drill down features and reports are available when you need a more detailed analysis of customer/ supplier transactions.

6. Sales & Purchase Order Entry
You can maintain and control outstanding orders, processed orders and back orders. This module integrates fully into Sage 50’s Inventory, Receivables and Payables modules.

If you are finding it difficult to get an integrated and holistic view of your business, may be it is time to make the move to Sage 100 Evolution ERP. This revolutionalised software brings all the aspects of your operating environment together, Sage 100 Evolution is an end-to-end Business Management Solution that gives you the ability to control your financial situation as well as your relationships with your customers, suppliers and employees.

Skytrend Consulting is  an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 385 7245 or 0803 239 3958. If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

READ ALSO! Accounting software implementation: 5 key stages in a new accounting system

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! SAGE 50 ACCOUNTING SOFTWARE: 8 KEY BENEFITS FOR YOUR BUSINESS

READ ALSO! SAGE 50 PEACHTREE ACCOUNTING SOFTWARE – ALL YOU NEED TO KNOW

READ ALSO! BBNaija Dorathy Launches Lingerie Line, Says Priority Is Making Busty Women Look Good

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

10 Key benefits of implementing accounting software solution for your organization

ACCOUNTING software

10 Key benefits of implementing accounting software solution for your organization

What is an accounting software?
An accounting software is a computer program that allows automation of financial records and processes and assists accountants, store managers and business owners in maintaining, posting and reporting an organization’s financial transactions within a functional system.

A good accounting software solution contains modules and menus such as customers, vendors/suppliers, sales ledger, purchases ledger, accounts receivable, accounts payable, journal, payroll, fixed asset direct cost (cost of sales) and indirect cost (administrative expenses), assets, liability, trial balance, general ledger, trial balance, income statement, inventory management, balance sheet, etc. Basically it functions as a complete accounting information system.

With it, you can maintain and manage customers and vendors, generate and post ledger accounts, record/post daily transactions, generate reports, create purchases and sale orders and invoices, manage and track stock levels, bill customers, complete inventory management and monitor cash and bank account movement and balances.
Although many companies are aware of automated accounting systems that uses software solutions, some still prefer the traditional way of managing their books which is of course very cumbersome.

So, what are the differences between a traditional accounting system and an automated accounting system?

Traditional Accounting VS Automated Accounting
Traditional accounting is a process of managing books and various accounting transactions manually without the help of a software solution. In traditional accounting, the role of accountants becomes crucial because they’re the ones that have to record, calculate, and create complete, error-free financial statements manually.

What are the features of Traditional accounting system?

1.It takes more than one person to perform all those tasks since they’re done manually.

2. The processes are usually very tedious, cumbersome and tasking, because it involves numerous file works and paper writing.

3. It breeds inaccurate and incomplete reporting.

4. It gives room for fraud and financial malpractice. Cash book and bank account are liable to frauds and errors because it’s manually maintained.

5. Inadvertent human errors are inevitable in traditional accounting. This is why many companies have to switch to automated accounting systems.

Automated accounting still involves the role of humans to enter data, but most if not all processes are automated, especially maintaining, posting and reporting. With an automated accounting system, human error can be minimized to be barest minimum so that the accuracy level is way higher than that of conventional accounting.

Below are 10 key benefits of using accounting software solution for any profit or not-for-profit organization.

1. Invoicing and billing

Invoicing and billing are indispensable business functions and the main source of cash flowing into your business. Managing invoices on paper is tedious, time-consuming and error-prone. When you have recurring orders, it is not feasible to create physical invoices for each time your client buys from you. It is also difficult to track invoices and remind customers of pending payments without automated software.

Accounting software addresses these issues effectively, and provides you with features that make invoicing easy. You can create recurring profiles for regular customer orders and schedule invoices to be sent out automatically every time that order is placed. You can also include payment terms and conditions to your invoices to give your customers a heads-up regarding payments. Accounting apps allow you to automate your payment reminders. You can set up reminders based on invoice due dates or expected payment dates and the software will send them to your customers automatically. With an accounting app, you can track all your unpaid invoices, remind customers to make sure they pay on time, and prevent accidental missing payments.

2. Online payments

The next step after invoicing your clients is getting paid. Collecting payments can be overwhelming if clients are not offered a proper system for making them.

You can integrate your accounting system with various online payment gateways that offer clients a swift and secure means of paying you. Payment gateways make records of payments you receive and update them under the corresponding invoice in your accounting system automatically. They also offer clients various methods of payments like credit and debit cards, and online bank transfers.

With clients around the globe, your business must be ready to handle all kinds of currencies. Online payment gateways connected to your accounting software can support multiple currencies and let you accept payments in your customers’ currency while still doing your accounting in your own currency. This removes discrepancies and extra calculations when it comes to foreign transactions.

3. Saves Time and Costs

Bookkeeping is known as a very time-consuming task because there are plenty of transactions to record and count. However, with an accounting system, all the procedures can be automated so that they can be finished quickly. Your company does not need additional accountants to perform bookkeeping and other tasks so that you can save on your company’s costs for other important needs.

4. Provides easy monitoring of financial information system

An accounting system makes it easy for stakeholders to monitor the company’s financial position more comprehensively. Management can keep track of expenses and revenues as well as profits and losses across different business units and departments. Any good accounting software solution should be able to generate cash flow forecasts and budgeting. You can see all your company’s financial information in a single view through a financial dashboard.

5. Expenses and Cost of Sales tracking

Tracking expenses and cost of sales are vital for getting a grip on your cash flow. Accounting software helps you keep tabs on your expenses and categorize them to get a clear picture of where your money is going. You can also use accounting software to upload expense receipts, scan them, and record information from the scanned receipts automatically. This removes the need to store paper receipts and the risk of losing them. Accounting software makes it easier to bill customers for the expenses you incur on their behalf.

6. Minimizes Errors and deter frauds

Manual accounting systems have a higher risk of errors and high probability of fraud, because in order to ensure accuracy you have to depend on the accountant’s precision. However, with an accounting software, the calculation process is automated. Errors like duplicate data can also be detected and eliminated. Accountants don’t need to spend a lot of time correcting data and can focus more on tasks that really need their skills. It also makes it very easily to detect fraud and therefore deter it because all cash movements and balances can be easily monitored through the system.

7. Facilitates Asset & Inventory Management

A good accounting system incorporate your company’s fixed and current asset and makes inventory management seamless. This means that it must enable you to manage your assets and inventory well. Sage 50 Peachtree accounting solution for example has a fixed asset implementation that allows you to automatically calculate asset and asset depreciation, and monitor your asset movement.

Inventory management on the other hand is a key part of your business. Good inventory management is a prerequisite to ensuring sufficient stock and providing better customer service. It involves recording item information, tracking items, and generating reports.

When you receive an order for items, you can use your accounting software to create a sales order, convert it into an invoice after approval, and associate the appropriate taxes with it. You can track stock and set reorder levels for your goods to receive automated emails and place timely orders, so that you don’t run out of stock. You can also generate inventory specific reports to gain better insight and manage inventory more efficiently.

8. Bank reconciliation

Bank reconciliation is the core accounting feature of a business, and accounting software streamlines it. Connecting your bank account to accounting software directly lets you fetch statements from bank feeds automatically into your accounts. You can set up custom criteria and bank rules in your accounting software to categorize and match imported bank transactions automatically. Once your transactions are matched, you just need to verify and confirm them to reconcile your accounts. With simplified bank reconciliation, accounting software helps keep your business audit-ready throughout the year.

9. Tax compliance

A good accounting app is designed to adhere to your local tax regulations and make working with taxes easier. When you have to work with multiple tax rates, accounting software can make calculating taxes faster, and help you apply the right tax to your transactions more accurately. It can also give you a better understanding of your taxes by generating tax summary reports to help you stay organized and ready for tax time.

10. Report generation

As a business owner, you need to check your business’ growth periodically and make the right decisions to ensure your organization’s good health. Accounting reports help you understand your business’ financial trends and analyze growth patterns. However, generating reports in spreadsheets is very demanding as you need to consolidate data and enter formulas manually to create each report. Accounting software generates reports automatically, saving you time, stress and effort.

A good accounting software provides reports that enables business owner and stakeholders make better informed financial decisions for the company. They will be able to find out what processes and departments cost the most, which costs can be reduced, and so on. They can also decide whether the company is financially ready to invest, expand, hire more employees, try new marketing strategies, and so on.

Web-based accounting software gives users the convenience of tracking their company’s financial information and reports and performing accounting tasks from anywhere. Users only need an internet connection to be able to use the app through a web browser.

In addition, web-based accounting software can also be used on any mobile device, including smartphones and tablets. With granted access rights (which can be set by admins), users can view financial statements or carry out various desired processes anytime and anywhere.

There are 3 crucial financial statements that an organization must produce and report:

1. Cash flow statement.

2. Income Statement (Profit and loss statement)

3. Balance sheet. (Statement of Financial Position)

Accounting software has built-in reporting features that analyze cash flow and help businesses stay on top of it. You can generate profit and loss statements and balance sheet reports to help you understand the key financial aspects of your business, draw conclusions, and make informed decisions to steer your business in the right direction.

Besides the three important financial statements, an accounting software solution also automatically compiles information on other key aspects of your business like sales, purchases, taxes, inventory, jobs and projects. All of this data helps you generate instant reports, make quick decisions, and maintain good business health.

Skytrend Consulting is  an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 385 7245 or 0803 239 3958. You can also send us an email at info@skytrendconsulting.com

READ ALSO! Accounting software implementation: 5 key stages in a new accounting system

READ ALSO! Skytrend Consulting: Financial services and accounting solutions company

READ ALSO! SAGE 50 ACCOUNTING SOFTWARE: 8 KEY BENEFITS FOR YOUR BUSINESS

READ ALSO! SAGE 50 PEACHTREE ACCOUNTING SOFTWARE – ALL YOU NEED TO KNOW

READ ALSO! BBNaija Dorathy Launches Lingerie Line, Says Priority Is Making Busty Women Look Good

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Why The North Remains Headquarters Of Poverty In Nigeria — Kingsley Moghalu

10 Key benefits of implementing accounting software solution for any business

accounting software solution

10 Key benefits of implementing accounting software solution for any business

What is an accounting software?
An accounting software is a computer program that allows automation of financial records and processes and assists accountants, store managers and business owners in maintaining, posting and reporting an organization’s financial transactions within a functional system.

A good accounting software solution contains modules and menus such as customers, vendors/suppliers, sales ledger, purchases ledger, accounts receivable, accounts payable, journal, payroll, fixed asset direct cost (cost of sales) and indirect cost (administrative expenses), assets, liability, trial balance, general ledger, trial balance, income statement, inventory management, balance sheet, etc. Basically it functions as a complete accounting information system.

With it, you can maintain and manage customers and vendors, generate and post ledger accounts, record/post daily transactions, generate reports, create purchases and sale orders and invoices, manage and track stock levels, bill customers, complete inventory management and monitor cash and bank account movement and balances.
Although many companies are aware of automated accounting systems that uses software solutions, some still prefer the traditional way of managing their books which is of course very cumbersome.

So, what are the differences between a traditional accounting system and an automated accounting system?

Traditional Accounting VS Automated Accounting
Traditional accounting is a process of managing books and various accounting transactions manually without the help of a software solution. In traditional accounting, the role of accountants becomes crucial because they’re the ones that have to record, calculate, and create complete, error-free financial statements manually.

What are the features of Traditional accounting system?

  1. It takes more than one person to perform all those tasks since they’re done manually.

2. The processes are usually very tedious, cumbersome and tasking, because it involves numerous file works and paper writing.

3. It breeds inaccurate and incomplete reporting.

4. It gives room for fraud and financial malpractice. Cash book and bank account are liable to frauds and errors because it’s manually maintained.

5. Inadvertent human errors are inevitable in traditional accounting. This is why many companies have to switch to automated accounting systems.

Automated accounting still involves the role of humans to enter data, but most if not all processes are automated, especially maintaining, posting and reporting. With an automated accounting system, human error can be minimized to be barest minimum so that the accuracy level is way higher than that of conventional accounting.

Below are 10 key benefits of using accounting software solution for your business

1. Invoicing and billing

Invoicing and billing are indispensable business functions and the main source of cash flowing into your business. Managing invoices on paper is tedious, time-consuming and error-prone. When you have recurring orders, it is not feasible to create physical invoices for each time your client buys from you. It is also difficult to track invoices and remind customers of pending payments without automated software.

Accounting software addresses these issues effectively, and provides you with features that make invoicing easy. You can create recurring profiles for regular customer orders and schedule invoices to be sent out automatically every time that order is placed. You can also include payment terms and conditions to your invoices to give your customers a heads-up regarding payments. Accounting apps allow you to automate your payment reminders. You can set up reminders based on invoice due dates or expected payment dates and the software will send them to your customers automatically. With an accounting app, you can track all your unpaid invoices, remind customers to make sure they pay on time, and prevent accidental missing payments.

2. Online payments

The next step after invoicing your clients is getting paid. Collecting payments can be overwhelming if clients are not offered a proper system for making them.

You can integrate your accounting system with various online payment gateways that offer clients a swift and secure means of paying you. Payment gateways make records of payments you receive and update them under the corresponding invoice in your accounting system automatically. They also offer clients various methods of payments like credit and debit cards, and online bank transfers.

With clients around the globe, your business must be ready to handle all kinds of currencies. Online payment gateways connected to your accounting software can support multiple currencies and let you accept payments in your customers’ currency while still doing your accounting in your own currency. This removes discrepancies and extra calculations when it comes to foreign transactions.

3. Saves Time and Costs

Bookkeeping is known as a very time-consuming task because there are plenty of transactions to record and count. However, with an accounting system, all the procedures can be automated so that they can be finished quickly. Your company does not need additional accountants to perform bookkeeping and other tasks so that you can save on your company’s costs for other important needs.

4. Provides easy monitoring of financial information system

An accounting system makes it easy for stakeholders to monitor the company’s financial position more comprehensively. Management can keep track of expenses and revenues as well as profits and losses across different business units and departments. Any good accounting software solution should be able to generate cash flow forecasts and budgeting. You can see all your company’s financial information in a single view through a financial dashboard.

5. Expenses and Cost of Sales tracking

Tracking expenses and cost of sales are vital for getting a grip on your cash flow. Accounting software helps you keep tabs on your expenses and categorize them to get a clear picture of where your money is going. You can also use accounting software to upload expense receipts, scan them, and record information from the scanned receipts automatically. This removes the need to store paper receipts and the risk of losing them. Accounting software makes it easier to bill customers for the expenses you incur on their behalf.

6. Minimizes Errors and deter frauds

Manual accounting systems have a higher risk of errors and high probability of fraud, because in order to ensure accuracy you have to depend on the accountant’s precision. However, with an accounting software, the calculation process is automated. Errors like duplicate data can also be detected and eliminated. Accountants don’t need to spend a lot of time correcting data and can focus more on tasks that really need their skills. It also makes it very easily to detect fraud and therefore deter it because all cash movements and balances can be easily monitored through the system.

7. Facilitates Asset & Inventory Management

A good accounting system incorporate your company’s fixed and current asset and makes inventory management seamless. This means that it must enable you to manage your assets and inventory well. Sage 50 Peachtree accounting solution for example has a fixed asset implementation module that allows you to automatically calculate asset and asset depreciation, and monitor your asset movement in terms of purchases, depletion, disposals etc.

Inventory management on the other hand is a key part of your business. Good inventory management is a prerequisite to ensuring sufficient stock and providing better customer service. It involves recording item information, tracking items, and generating reports.

When you receive an order for items, you can use your accounting software to create a sales order, convert it into an invoice after approval, and associate the appropriate taxes with it. You can track stock and set reorder levels for your goods to receive automated emails and place timely orders, so that you don’t run out of stock. You can also generate inventory specific reports to gain better insight and manage inventory more efficiently.

8. Bank reconciliation

Bank reconciliation is the core accounting feature of a business, and accounting software streamlines it. Connecting your bank account to accounting software directly lets you fetch statements from bank feeds automatically into your accounts. You can set up custom criteria and bank rules in your accounting software to categorize and match imported bank transactions automatically. Once your transactions are matched, you just need to verify and confirm them to reconcile your accounts. With simplified bank reconciliation, accounting software helps keep your business audit-ready throughout the year.

9. Tax compliance

A good accounting software is designed to adhere to your local, state and federal tax regulations and make working with taxes easier. When you have to work with multiple tax rates, accounting software can make calculating taxes faster, and help you apply the right tax to your transactions more accurately. It can also give you a better understanding of your taxes by generating tax summary reports to help you stay organized and ready for tax time.

10. Report generation

As a business owner, you need to check your business’ growth periodically and make the right decisions to ensure your organization’s good health. Accounting reports help you understand your business’ financial trends and analyze growth patterns. However, generating reports in spreadsheets is very demanding as you need to consolidate data and enter formulas manually to create each report. Accounting software generates reports automatically, saving you time, stress and effort.

A good accounting software provides reports that enables business owner and stakeholders make better informed financial decisions for the company. They will be able to find out what processes and departments cost the most, which costs can be reduced, and so on. They can also decide whether the company is financially ready to invest, expand, hire more employees, try new marketing strategies, and so on.

Web-based accounting software gives users the convenience of tracking their company’s financial information and reports and performing accounting tasks from anywhere. Users only need an internet connection to be able to use the app through a web browser.

In addition, web-based accounting software can also be used on any mobile device, including smartphones and tablets. With granted access rights (which can be set by admins), users can view financial statements or carry out various desired processes anytime and anywhere.

There are 3 crucial financial statements that an organization must know:

1. Cash flow statement.

2. Income Statement (Profit and loss statement)

3. Balance sheet. (Statement of Financial Position)

Accounting software has built-in reporting features that analyze cash flow and help businesses stay on top of it. You can generate profit and loss statements and balance sheet reports to help you understand the key financial aspects of your business, draw conclusions, and make informed decisions to steer your business in the right direction.

Besides the three important financial statements, an accounting software solution also automatically compiles information on other key aspects of your business like sales, purchases, taxes, inventory, jobs and projects. All of this data helps you generate instant reports, make quick decisions, and maintain good business health.

Skytrend Consulting an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 3857245 or 0803 239 3958

If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

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Busy Accounting Software solution: 10 frequently asked questions

BUSY ACCOUNTING SOFTWARE

Busy Accounting Software solution: 10 frequently asked questions

  1. How do you use BUSY accounting software?

You can use BUSY Accounting Software to manage your complete business operations and processes which includes:

Financial Accounting (Multi-Currency)
Inventory Management (Multi-location)
Production / Bill of Material
Sales / Purchase Quotations
Sales / Purchase Order Processing
Fully User-configurable Invoicing
User-configurable Documents / Letters
User-configurable Columns in Reports
Invoicing & Reports
MIS Reports & Analysis
Mobile Application

2. What is contra and journal entry in BUSY software?
BUSY is an accounting software where you can record and manage business accounting.

A Contra entry is recorded when the debit and credit affect the same parent account and resulting in a net zero effect to the account. These are transactions that are recorded between cash and bank accounts.

A Journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company’s debit and credit balances. The Journal entry can consist of several recordings, each of which is either a debit or a credit.

3. How do I import Excel data into BUSY software?
Import data through excel in the software is a very easy to use and user friendly. To use this feature, the user needs to input the business data column-wise in excel and then map the same columns with BUSY import fields.

4. Can we take backup of BUSY data?
With the software, you need to create back-up of your business data on a regular basis. So, if in case your existing data gets corrupted or lost, you have an option to easily recover it.

5. How do I add a printer to BUSY software?​
To add a printer, you need to follow these steps:

Step 1: Make sure that a printer driver is installed on your desktop or laptop.
Step 2: Open the Accounting Software
Step 3: Login into the company you have created
Step 4: Go to Administration in the menu
Step 5: Scroll down to configuration
Step 6: Go inside hardware configuration
Step 7: Select default printer driver then save it.

6. How to change font in BUSY software?
BUSY Accounting Software comes with a fixed on-screen font size. Besides, BUSY has a provision where user can modify the font size of invoice / documents at the time of printing.

7. How to open data in BUSY software?
To open a data in BUSY Accounting Software you need to follow these steps:

Step 1: Run BUSY exe. on your system
Step 2: Then click on company menu
Step 3: Select company/data from given list
Step 4: Enter user name & password (optional)

8. How to add signature and digital signature in BUSY software?
There are two ways of adding signature in BUSY Accounting Software:

Add signature image on invoice printing through document designing.
Use Third party paid Add-On to apply DSC (Digital Signature Certificate) on invoice and documents.

9. How can we freeze data in BUSY accounting software?
Follow the below mentioned steps:

Open Company
Go to Administration
Scroll dow to Utilities
Inside utilities go to Data Freezing
Then select Full or Partial

10. Do I need to pay anything to explore BUSY software ?
You can experience the power of BUSY by downloading its 30 days trial

Skytrend Consulting an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 3857245 or 0803 239 3958

If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

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Busy Accounting Software solution : 6 key implementation facts for your business

busy accounting software

Busy Accounting Software solution : 6 key implementation facts for your business

Busy Accounting Software solution is an integrated business accounting and management software for Micro, Small and Medium Enterprises (MSMEs). The solution was developed in India in 1993 and reported to have sold over 360,000 licenses in over 20 countries. It is said to be the leading business accounting software in India, South Asia, Middle East Asia and parts of Africa.

The software records and processes business accounting transactions within functional modules such as Financial Accounting (Multi-Currency), Inventory Management (Multi-location), Production / Bill of Material for manufacturing businesses, Sales / Purchase Quotations/invoicing, payroll, Sales / Purchase Order Processing, Fully User-configurable Invoicing, User-configurable Documents and Columns in Reports, and provides a basis for the business Management Information Systems (MIS).

The software is thought to be used by mostly MSMEs since it was developed in 1993, by helping them manage not just their accounts but also other business management processes like Inventory / Invoicing / Taxation / Orders / Payroll and much more.

Being a horizontal product, BUSY can be used in almost all types of Business Segments and Industry Verticals like Retail, Manufacturing, Trading, Distribution, and Services.

BUSY is sold and supported through its network of over 500 Channel Partners, thousands of Resellers and Solution Partners all across India and abroad.

6 Key implementation facts about Busy accounting software

Below are 6 key facts you should know when implementing Busy accounting software solution for your business.

1. Financial Accounting
Starting from Vouchers to Ledgers to Trial Balance & Balance Sheet, everything is available at the click of a button. Add another layer of controls with the help of Sub Ledgers & Cost

2. Inventory Management
Manage your inventory with additional details like Batch No. (with expiry), Serial
Nos., Parameters (Colour, Size, Style etc.). Maintain multiple go-­downs & locations smoothly.

3. Configurable Invoicing
Create Goods and Services Tax (GST) compliant professional invoices as per business requirements easily. Maintain Party / Item­wise & Date­wise Item Prices.

4. Operations Management
Manage all your business operations like Quotation / Order/ Invoicing / Receivable /Payable along with Payroll & Customer Support swiftly.

5. Mobile App
Stay connected with your business data anywhere / anytime directly on your
Mobile Phone. Timely access to data can help you in making informed business decisions.

6. Simplified Usage
The software is simple and easy to use (doesn’t require accounting knowledge). Highly flexible to accommodate diverse business needs and scalable as per your growing business needs.

What are the versions or editions of Busy accounting software?

To feed the diverse business needs of the Small and Medium Businesses, BUSY Accounting Software is offered in four different editions namely, Express, Basic, Standard and Enterprise, for businesses of different size and style.

1. Express
Express edition is 100% free accounting software with limited but sufficient functionalities for those who are in the nascent stage of their business and have a minimal operational requirement.

2. Basic
Basic comes with minimal set of features covering Invoicing, Accounting, Basic Inventory and Statutory Reports. It is meant for shopkeepers and small businesses whose main requirement is invoicing, book keeping and compliance.

3. Standard
Standard edition comes with a host of advanced features and is meant for medium level businesses. It has all the features of Basic edition plus a lot of other business management features like Order / Quotation / Challan Management, Multiple Units of Items, Item Barcode / POS Billing, Direct SMS / Email facility and much more. These features are purely business management features and are meant to enhance business productivity.

4. Enterprise Edition
Enterprise is meant for companies which are larger in size and normally have multiple branches/locations or a lot of users using BUSY. It has all the features of Standard edition plus a lot other enterprise features like Multi-Branch / Location Management, Enquiry / Support Management, Voucher Approval System, Payroll Management, exhaustive checks and controls and much more required in a distributed environment for collaborative working.

Skytrend Consulting is  an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 3857245 or 0803 239 3958

If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

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Manufacturing businesses got N570bn loan from banks in 2020 — Apex Bank

MANUFACTURING BUSINESSES

Manufacturing businesses got N570bn loan from banks in 2020 — Apex Bank

Nigeria’s Apex Bank says manufacturing businesses in the country got a total loan of N570bn from banks in 2020 due to the economic meltdown occasioned by the dreaded COVID-19 pandemic.

Nigerian banks’ credit to the manufacturing sector rose to N3.19tn as of December 2020 from N2.62tn at the end of 2019, the Central Bank says in its sectoral analysis of banks’ credit. .

The sector received the second biggest share of the credit from the banks after the oil and gas sector, which got N5.18tn as of December 2020.

“The manufacturing sector, which is the engine of sustainable growth, is still struggling with the debilitating impact of the pandemic and is yet to recuperate,” the Director-General, Manufacturers Association of Nigeria, Mr Segun Ajayi-Kadir, had said in January.

MAN, in a January report, revealed that most manufacturers said commercial banks’ double digits lending rates were discouraging productivity in the sector.

We are an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 3857245 or 0803 239 3958

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Sage 50 Quantum Accounting Software: 6 benefits to your manufacturing business

quantum accounting software

Sage 50 Quantum Accounting Software: 6 benefits to your manufacturing business

An effective accounting solution is one of the keys to a more developed and longer-lasting business. So when you’re having trouble finalizing financial decisions because of inaccurate reports or the absence of efficient accounting software, it’s time to move forward and use Sage 50 (Peachtree) accounting software.

Sage 50 Quantum Accounting software is a multifunctional and value-priced business management and accounting solution. It helps small to medium-sized enterprises understand and monitor their business performance well through accurate financial reports and automatic audit trails.

Sage 50 Quantum accounting software is particularly custom built and useful for manufacturing, construction and multi-level businesses.

1. Improved customer management, 2. Customised for Manufacturing businesses. 3. Iventory management solutions. 4. Customizable reporting. 5. Employee and workflow management. 6. A user-friendly interface, etc are just some of the features of Sage 50 Quantum Peachtree software. You will be informed in real time of all your purchases, sales details, and other financial transactions that are crucial to your business.

Warning signs that signal the need to move up to a more powerful, flexible solution:

Own multiple companies that require some financial consolidation
Store your voluminous inventory in many locations
Have thousands of customers and vendors, and process thousands or hundreds of thousands of transactions every year
Spending too much time trying to get Excel to run the spreadsheets you need
Have had to cobble together numerous applications to accomplish everything
Have become a global business
Sweat over security
Spend too much time implementing manual processes

Need anytime, anywhere access
If you’re using Sage 50 Pro or Sage 50 Complete (two of the most popular low-end accounting products in the U.S.), you can move up and still stay within the same product family, which makes upgrading exceedingly easy. Sage 50 Quantum Accounting (formerly Peachtree Quantum Accounting), could be the logical next step.

We are an accounting software solutions company. When it comes to implementing suitable and cost effective accounting software solutions for your business, we are the EXPERT! Need an accounting software for your business? Hotline: Call or Whatsapp 0803 3857245 or 0803 239 3958

If you also have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

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Accounting for manufacturing businesses: 6 key stages in the implementation process

manufacturing businesses

Accounting for manufacturing businesses: 6 key stages in the implementation process

What Is A Manufacturing Account?
A manufacturing account is an account in the general ledger of a businesses which summarizes the manufacturing costs of finished goods during an accounting period.

Such accounts are prepared by the manufacturing concerns for the purpose of finding out the cost of production of the goods manufactured and the profit that has been made by manufacturing department.

For a manufacturing business the manufacturing account needs to be prepared before completing the trading, profit and loss accounts.

The major objective of preparing a Manufacturing Account is to determine the specific costs associated with finished goods produced.

The cost of finished goods manufactured can then be entered in the Trading, Profit and Loss Account, otherwise called Income State, as the equivalent of purchases for a purely trading company in order to determine the cost of goods sold and gross profit.

This helps in improving the cost optimization and effectiveness of manufacturing activities.

What Are The Broad Components of Manufacturing Costs?
Manufacturing cost fall into three broad components: materials, labour, and overhead.
Therefore to calculate total manufacturing cost, you sum up the three different cost components: costs of direct materials, direct labour and manufacturing overheads. Expressed as a formula, that’s: Total manufacturing cost = Direct materials + Direct labour + Manufacturing overheads.

The difference between Trading Account and Manufacturing Account is, the trading account gives the Gross profit made by the company whereas the Manufacturing account derives the cost of finished goods produced by the company.

Stages In Accounting Implementation For Manufacturing Business
Accounting for a manufacturing business deals with inventory valuation and the cost of goods sold. These concepts or stages are uncommon in other types of entities, or are handled at a more simplified level.

A manufacturing business must use a certain amount of raw materials, work-in-process, and finished goods as part of its production processes, and any ending balances must be properly valued for recognition on the company balance sheet. This valuation requires the following activities or stages.

1. Direct cost assignment.
Costs are assigned to inventory using either a standard costing, weighted-average cost, First In First Out (FIFO) or Last In First Out (LIFO.)

2. Overhead cost assignment.
Factory overhead costs must be aggregated into cost component and then allocated to the number of units produced during a reporting period, which increases the recorded cost of inventory. The number of cost components should be minimized to reduce the amount of allocation work by the accountant.

3. Impairment testing.
Also known as the lower of cost or market rule, this activity involves ascertaining whether the amount at which inventory items are recorded is higher than their current market values. If so, the inventory must be written down to the market values. This task may be completed at relatively long intervals, such as at the end of each annual reporting period.

4. Cost of goods sold recognition.
At its most basic level, the cost of goods sold is simply beginning inventory, plus purchases, minus ending inventory. Thus, the derivation of the cost of goods sold is really driven by the accuracy of the inventory valuation procedures that were just described. In addition, any abnormal costs incurred, such as excessive scrap, are not recorded in inventory, but instead are charged directly to the cost of goods sold. This calls for a detailed scrap tracking procedure. Also, costs may be assigned to specific jobs (known as job costing) and then charged to the cost of goods sold when the inventory items in those jobs are sold to customers.

5. Derivation of Cost of Raw Materials Consumed
The formula for deriving cost of raw materials consumed for an accounting period for a manufacturing business can be summarised as follows:
Cost of Raw Materials Consumed = Raw material purchases + Beginning raw material inventory – Ending raw material inventory = Cost of Raw materials consumed

6. Derivation of Cost Of Goods Manufactured
Cost of Goods Manufactured = Cost of Raw materials consumed + Direct labor + Direct expenses + Beginning WIP inventory – Ending WIP inventory + Manufacturing Overhead =

Definition of Terms
Direct labor is the gross wage cost of all the labor associated with manufacturing products. The labor included must relate to those employees who are directly working on the products being produced. As with materials it must be possible to easily identify, track or count the labor to a particular unit of production.

Direct expenses are costs other than direct materials or labor which can be directly associated with units of production. An example of a direct cost would be a royalty cost paid on each product.

The adjustment for work in process inventory is necessary as the purpose of the account is to show the manufacturing cost of goods completed during the accounting period regardless of when they started in production.

Manufacturing overhead is all the other costs necessary to run the manufacturing operation but which cannot be directly associated with the product such as indirect labor, indirect materials, and other indirect manufacturing costs.

How To Prepare Manufacturing Account
The main objective of preparing a manufacturing account is to determine the actual cost of goods available for sales otherwise called finished goods.

The account is simply prepared by closing the temporary cost accounts and adjusting the raw materials (RM) and the work in process (WIP) inventory accounts using a closing journal entry. Each cost account is closed and the balances transferred to the manufacturing account.

Work-in-progress (WIP) inventory is a production and supply-chain management term used to describe partially finished goods awaiting completion. WIP inventory is a component of the inventory asset account on the balance sheet. These costs are subsequently transferred to the finished goods account and eventually to the cost of sales now becoming a component of the income statement.

Manufacturing, trading, profit and loss account is maintained by all manufacturing organisations to help in the formation of final accounts of such businesses.

Manufacturing overhead account is calculated by the addition of indirect factory expenses like machine repairs, depreciation, insurance, factory supply, electricity, etc. Non-manufacturing entities or what is called trading entities are generally involved in the purchase and also sales of goods at a profit.

Features of A Manufacturing account
All the expenses relating to manufacturing goods are debited.

It shows only the figures of materials consumed instead of showing the figure of opening stock, purchase and closing stock separately.

Opening stock of Work in Progress (WIP) is debited and closing stock of WIP is credited to manufacturing account.

The amount received from the sale of scrap is credited to manufacturing account.

The balance in the manufacturing account is the cost of production or manufacturing profit depending on the type of manufacturing account prepared.

Importance of manufacturing account
It ascertains the cost of goods manufactured.
It shows the profit or loss earned by a manufacturing department.
It provides a basis for fixing the price of a product.
It helps the management to evaluate the performance of the manufacturing department.
It helps to control manufacturing cost.

FAQ (Frequently Asked Questions)
1. What are the Features of Manufacturing Account?

Ans) Some of the important features of manufacturing account are:

All the expenses are debited that are related to manufacturing goods.

The figure of opening stock, purchase and closing stock is not shown separately. Instead, it only shows the figures of materials consumed.

The opening stock of work in progress is debited to manufacturing account while the closing stock of work in progress is credited.

The sale of scrap amount gets credited to manufacturing account.

Depending on the manufacturing account prepared, the manufacturing account balance is either the cost of production or the manufacturing profit.

2. What is the Difference Between a Trading Account and Manufacturing Account?

Ans) The financial statement which considers all the elements of cost, income and expenditure is known to be the trading account. It determines the profitability of the company. On the other hand, manufacturing account determines the expenses that are incurred for manufacturing a product.

In a financial year, the trading account gives the verdict of profit or loss in a company while manufacturing account denotes the cost of the product manufactured.

The information of manufacturing account gets featured in trading account while manufacturing account consists of the expenditure caused by the product manufactured.

A trading account helps in the creation of the final balance sheet of a company. Manufacturing account details the requirement for creating a trading account.

Direct revenue and expenses are displayed in the trading account. Operating expenditure for product manufacturing gets displayed in manufacturing account.

You can reach us on telephone/whatsapp message on 08033857245 or 0803 239 3958. You can also send us an email info@skytrendconsulting.com

Need an accounting software solution for your business? Whatsapp us on 0803 239 3958. You have an article or review on financial implementation or an accounting solution you want us to publish, send to blog@skytrendconsulting.com.

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