Using the same AutoEntry service that processes your Bank Statements, you can also upload your Sales and Purchase documents before importing and coding them as AccountsPrep's brand-new Cash Sales and Expenses transaction types!
This feature is particularly useful for tax-registered clients where tax amounts have to be broken out for reporting and/or tax return purposes.
Note that AccountsPrep specifically does not provide for accounts receivable (AR)/payable (AP) functionality - its focus is purely on facilitating fast write-ups for simple clients who do not operate their own AR/AP ledgers (i.e. do not use accounting software). Accountants without AR/AP can instead use the following approach:
- post cash sales/expenses into an AR/AP account,
- post bank receipts/payments to the same AR/AP account, and then...
- make an adjusting journal entry at year-end to bring the figure in line with outstanding sales/purchase invoices at the year-end date.
Exactly what data imports from AutoEntry? And in what form does it end up in AccountsPrep?
- All invoices and credit notes (whether approved or not) in AutoEntry's Sales or Purchases inboxes are available for import into AccountsPrep.
- Customer/Supplier Accounts, Invoice Numbers, Dates, Categories, Tax Codes, Amounts (Net, Tax and Total) and invoice images (PDF's) will import as entered in the AutoEntry invoice/credit note.
- An invoice/credit note with Line Items or Tax Summary lines will import as separate Cash Sales/Expenses lines in AccountsPrep e.g. a Purchase invoice made up of three Tax Summary lines will import as three separate Cash Expenses lines (so as to split out the three different Categories/Tax Codes/Amounts).
- Foreign currency invoices/credit notes will import in the company's base currency (at the rate set in the AutoEntry invoice).
Example: Purchase invoice with three Tax Summary lines
A. How AutoEntry fits in:
Before going any further, there are a few things to know/learn about how AutoEntry and AccountsPrep fit together in the context of Cash Sales and Expenses:
- Nominal Accounts and Tax Codes automatically sync from AccountsPrep into AutoEntry as 'Categories' and 'VAT Codes' (if UK) - these will be seen in AutoEntry's 'Manage Lists' page.
- Customer and Supplier records need to be created in AutoEntry - this article will show you how.
- Sales and Purchase documents can be uploaded into AutoEntry for processing in much the same way as Bank Statements - this video explains the uploading of Purchases (the process for Sales is identical).
- Processed Sales and Purchase invoices/credit notes can then be reviewed (and updated and approved if required) in the Sales and Purchase inboxes - as demonstrated in this video.
- The resulting reviewed invoices/credit notes can then be imported into AccountsPrep as Cash Sales and Expenses - see D a) below.
B. How it works in AccountsPrep:
e.g. Purchase invoice imported from AutoEntry as Cash Expense in AccountsPrep
- Net amount will be posted to the account selected under 'Net (debit) Account'.
- Tax amount will be posted to the account set for Tax on Expenses in Settings -> System Settings - see C below.
- Total amount will be posted to the account selected as the 'Total (credit) balance posting account' (defaulting to the corresponding account set in Setting -> System Settings - see C below).
C. How to set it up in AccountsPrep:
All in Settings -> System Settings.
- Tax accounts: set the accounts to post tax on sales/expenses (tax rates are set in Settings -> Tax Codes).
- Default accounts for Cash Sales and Expenses: set the default accounts to post the total/gross balances to (usually an AR/AP account where relevant bank receipts/payments can also be posted).
- Duplicate-check: AccountsPrep can automatically flag potentially-duplicate entries by comparing Cash Sales/Expenses to already-posted Bank Receipts/Payments - the check will flag entries that have the same total amounts and that meet the criteria of the other two parameters that you can set in here (i.e. Date-range and Reference number-match). Note that if you're following the approach detailed under "Why?" above (i.e. posting both sides to an AR/AP account), then you can use this duplicate-check to confirm that the corresponding Bank entry has been posted to the correct AR/AP account.
D. How to create Cash Sales and Expenses:
Staying with the example of Cash Expenses, select Accounting -> Cash Expenses -> Add Cash Expenses.
There are three ways to create Cash Sales and Expenses in AccountsPrep - in order of efficiency and effectiveness:
a. Use AutoEntry Purchases capture
b. Import data using a CSV file
c. Enter data on-screen
a. Use AutoEntry Purchases capture
'Preview' will display all of the Purchase invoices/credit notes sitting in AutoEntry's Purchases inbox. The list can be filtered on Supplier name, date-range and/or whether the invoice/credit note is approved in AutoEntry. Note that once a Purchase invoice/credit note is posted in AccountsPrep, it will no longer be available to bring into AccountsPrep again (and if it's only in draft in AccountsPrep, it will be picked up as a potential duplicate in the next page). Once happy that the list represents the range of invoices/credit notes that you'd like to import, select 'Continue'.
Confirm details here before posting ('Post'). This is a standard AccountsPrep grid with the following additions:
- The ability to toggle between tax-exclusive and tax-inclusive amounts (tax amounts will adjust accordingly).
- A link to the invoice image (PDF) in AutoEntry associated with each Cash Expense line (this will open in a new tab).
- A flag highlighting any potential duplicate entries by checking against posted Bank Payments (see C 3 above for more on this).
If no Tax Code is assigned to the invoice/line in AutoEntry, the Tax Rate in AccountsPrep will assume the 'Unspecified Rate (UNS)'. The line can then be either posted as it is (with or without a manual update of the Tax Amount) or assigned one of the company's defined Tax Rates (with the Tax Amount being automatically recalculated based on that rate).
For a tax-exclusive line, the tax is calculated on the 'Net' amount - hence this is the editable field (i.e. the amount entered is exclusive of tax), and the 'Total' field locked.
For a tax-inclusive line, the tax is calculated on the 'Total' amount - hence this is the editable field (i.e. the amount entered is inclusive of tax), and the 'Net' field is locked.
b. Import data using a CSV file:
Download the template CSV file provided, populate it with the relevant Cash Expense details and import back into the same import page. Any errors will be shown; otherwise the details can be reviewed and posted in the same way as from the 'Review' page in a ii) above (except for the link to the AutoEntry PDF).
c. Enter data on-screen:
"Short-cut" directly to an empty 'Review' page as in a ii) above. All details are entered manually.
The best time to bring in your Cash Sales and Expenses is after importing and fast-coding your bank statements - doing it in this order means that you can avail of the 'duplicate-check to bank' facility (see C 3 above) when coding the Cash Sales and Expenses.
When all Cash Sales and Expenses postings are complete, tax breakdowns will be available in AccountsPrep's 'Taxes Report', with full transaction backup in 'Account Details'.