Q: Can I change the expense account on a bill/check after it has been posted?
A: Yes. As long as you have permissions to modify the transaction (edit), you can make changes to the transaction once it has been entered. Some transactions will become locked to protect the financial integrity. For example, a bill that has been paid will not allow you to change the account or amount. However, if you have been given permissions, you can be allowed to modify the account selection on the expenses tab once paid or reconciled. To verify this permission setting, please have your database administrator review your security permission under Company | User List/Security for Banking | Cleared Transaction (Accounts).
Q: Can I change the accounts affected on an invoice/sale/credit after it has been posted?
A: Yes. Total Office Manager does allow users to modify the accounts affected on sales transaction on a case by case basis. Under Edit | Preferences | Sales/Invoices/Estimates | Company Preferences, there is a preference to Allow Item Account Selection. Once enabled, users may modify their sales form preferences to display the Income, Expense/COGS, and/or Asset account column(s). Once the column is displayed, any user with permissions to edit the transaction may change the accounts to affect for the transaction.
NOTE: It is not advised to leave this preference enabled. Please disable once the accounting changes have been made. This will help to prevent changes to previously closed reporting periods.
Q: What is a control account and why should I care?
A: Control accounts help to keep your financial reports and their subsidiary ledgers in balance. In short, it is a summary account. There are nine (9) main control accounts you want to make sure are properly managed. These accounts are used to report your financial position with the Internal Revenue Service and various state Department of Revenues.
- Bank Related – All accounts affecting cash and managed through your local banks. All transactions processed through checking accounts, money markets, savings accounts, etc. would be recorded here. This includes petty cash and point of sale cash drawers. This includes recording of debit card activity tied to a bank account. These accounts are reconciled monthly with your statements supplied by your financial institutions.
- Accounts Receivable – This account holds all the outstanding balances owed to you from your customers. This account is reconciled against the AR Aging Summary and AR Aging Details reports. For any given period, the balances are to match. If they do not, there is likely a discrepancy within the payment application dates as compared to the general journal balance.
- Undeposited Funds – This account is used to hold funds received but are not yet included in a deposit. Think of it as the money or checks received in the paper clip sitting on the desk with the paper deposit slip to take to bank at lunch. This account is also used to hold funds processed through credit card processors and batched into a deposit once the settlement report is received.
- Accounts Payable – This account holds all the outstanding balances you owe to your vendors. This account is reconciled against the AP Aging Summary and AP Aging Details reports. For any given period, the balances are to match. If they do not, there is likely a discrepancy within the vendor application dates as compared to the general journal balance. This account does not include the outstanding amounts owed to your credit card merchants.
- Credit Card Related – All accounts affecting lines of credit provided from credit card merchants are managed through credit cards. This includes fleet cards for gasoline, wholesale memberships, any account where you are allowed to charge it and pay against the statement later. These accounts are reconciled monthly with your statements supplied by your credit card merchants.
- Sales Tax Payable – This account is the liability account used to record all the outstanding balances owed to the various sales tax venues. This account is reconciled against the Sales Tax Liability and Sales Tax Detail reports.
- Retained Earnings – This account records the company’s profit since inception. This account is controlled by the change in revenues and expenses for each fiscal year.
- Inventory Related – These accounts are the asset COGS accounts used to record all the activity affecting inventory. Inventory includes tracking of stocked (inventory and serialized) and non-stocked (non-inventory) items. These accounts are reconciled against the Inventory Valuation, Inventory History, and Item Reservation reports.
- Payroll Related – These accounts are the liability and/or expense accounts used to record all the activity affecting payroll. These accounts are reconciled against the Payroll Summary, Payroll Liability Balances, and Payroll Item Detailed History reports.