Account Tab

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To add an Account, enter a five-digit number into the Account Number (Account No.) field.  Each Account must have a unique Account Number.  Enter the name or description of the Account into the Name field, and select the classification of the Account from the Account Type menu.  When editing Accounts, the Account Number may not be changed.  To change Account Numbers, see the Delete/Transfer to Account function on the Account Glossary Window.  Further, the Account Type can only be changed if the new Account Type is the same overall genre, either Balance Sheet or Income Statement, as the original Account Type.  In other words, Asset, Liability, and Equity Types can be interchanged as well as Revenue, Cost of Goods Sold, and Expense.

 

account- edit

 

Note:  Design Manager comes with a preset Chart of Accounts that can be used by most design firms.  Only advanced users or accountants should modify these Accounts as configuring them incorrectly can result in erroneous financial reports.  If a user is unfamiliar with proper Account structure, they should be limited to adding additional Checking Accounts or Credit Card Accounts, or changing the Names of Accounts.

 

 

Account Number:  The five-digit code for the Account.  Generally, Asset Accounts start with a number "1", Liability Accounts with a "2", Equity Accounts with a "3", Revenue Accounts with a "4", Cost of Goods Accounts with a "5", and Expense Accounts with a "6".  For example, cash is an Asset and its Account number is 10010.

 

Account Name:  The Account Name describes the uses of the Account.  The Name will appear on  the Financial Statements.  The Account Name may be up to thirty characters.

 

Account Type:  Clicking on the menu will display the list of available Account Types.  The following Account Types are available:

 

Asset:  A Balance Sheet Account used to hold cash, investments, Accounts Receivable,  Vendor Deposits, Inventory, land building, and equipment.

Asset (Bank/Checking):  A special type of Asset Account to be used as a Checking Account.

Liability:  A Balance Sheet Account used to hold Accounts Payable, sales taxes payable, payroll taxes payable, Client Deposits, and debt.

Liability (Credit Card):  A special type of Liability Account used to hold credit card transactions.

Equity: A Balance Sheet Account used to maintain the accumulated net worth of the company.

Revenue:  An Income Statement Account used to record sales.

Cost of Goods:  An Income Statement Account used to record purchases for Projects.

Operating Expense:  An Income Statement Account used to record Expenses not associated with Projects.

Other Income/Expense:  An Income Statement Account used to hold entries not related to Projects and not part of Operating Expenses, Cost of Goods Sold, or Revenue.

 

Payroll Account: Select this option to include the Account as a Payroll Account.  This allows the Account to show on an Employee’s Payroll Account list.  See Employee Window - Payroll Tab for more information.

 

When the Account Type Asset (Bank/Checking) is selected, then this Account will represent a checking, savings, or petty cash account.  This will allow Checks to be written and Cash Receipts entered against this Account, as well as reconcile the bank statement.  Two additional fields will also appear when this type is selected:

 

Bank Number:  This is a field that used to record the bank number for this Cash Account, usually found at the bottom of the check before the account number.  The bank number is for reference only and may be left blank.

 

Checking Number:  The checking account number issued by the bank may be entered in this field. The Checking Number is for reference only and may be left blank.

 

When the Account Type Liability (Credit Card) is selected, the Account may be selected to pay a Vendor as the Account will now appear in the Pay With field on the Vendor Invoice Windows.  Two additional fields will appear when this type is selected:

 

CC Payee: Enter the Vendor Code for the credit card in this field.  The Code should be the name of the credit card such as "VISA" or "AMEX".  If no Vendor Code exists, one may be created by entering the credit card Payee Name, Address, and other information on the Vendor Window.  To search for an existing credit card Vendor Code, place the cursor in the CC Payee field and click on the Search button.

 

Credit Card Number: Enter the credit card account number in this field.  The Credit Card Number is optional and for reference only. Note: this information is not used by Design Manager in any purchasing capacity!

 

Department:  If the Account Type is set to either Revenue, Cost of Goods Sold, Operating Expense, or Other Income/Expense, the Department Code field will be available.  Departments are used to associated Accounts with a particular subdivision within the company.  For example, a single design firm may have commercial and residential departments.  Assigning a Department to an Account allows the Income Statement to printed for a single Department or for the company as a whole.  To locate a Department Code on the Department Search Window, click the Search button. See Departments for more information.

 

Closed as of the End of Fiscal Month (Mo.):  An Account can be Closed by selecting a Fiscal Month on this menu.  Doing so will prevent any accounting activity for the Account from being posted into a Fiscal Month after the selected Fiscal Month.  Activity can, however, still be recorded for the Account in Fiscal Month prior to or including the selected Fiscal Month.  The Closed as of the End of Fiscal Month setting is useful when no further activity should be associated with the Account, but deleting the Account entirely is not desired.

 

The Edit Department List (Edit Dept. List) button can be used to display the Department Glossary in order to quickly create or revise Departments.