If the invoicing system we use is external to the accounting system, what is the best way to ensure reports accurately reflect accrual standing (ie. Accounts Payable and Accounts Receivable considered).
Would it be best to do an adjustment entry at the end of the reporting period in the journal to the accounts receivable and accounts payable?
You would need to enter periodical journal entries. If you don’t know how to do these journal entries (you don’t really know what to debit/credit and how much), I’m afraid the easiest way is to create invoices in Manager and at the same time in external invoicing system.
Why are you using external accounts receivable system anyway? What is Manager missing?
We’re still trialling manager before we move to it… as we’re a bit sick of forking out $70 per entity, per month for our various companies with XERO.
We have a billing system which links in with a credit card processor and automatically debits cards through Stripe. Whilst the Manager system could probably used if it was developed to this extent I still don’t think the extent of development would be necessary to the vast amount of users.
The system also handles automated reminder/overdue emails.
Anymore info you could provide on the periodic entries or should I just speak with the accountant.
So for accounts payable you can use Manager. For accounts receivable you can use external billing system.
You can create custom account called Accounts receivable and make a journal entry once a month to adjust this account for the movement.
For example, if your previous accounts receivable balance in Manager was $10,000 and now it’s $15,000 then you would create journal entry to:
Debit Accounts receivable by $5,000
Credit Sales by $5,000
This will bring accounts receivable in Manager to $15,000 which should be the same as per your external billing system.
If one month later your accounts receivable balance drops to $8,000 then journal entry should be:
Credit Accounts receivable by $7,000
Debit Sales by $7,000
So it can be simple as this.
OK Great thanks