Help with how manager works

Hi, Thanks for your help, we are a company and import our products from overseas (from suppliers) so we entered the all the supplier info under that TAB, then created an inventory with all the products from them.

Just to clarify that I’m not an accountant.

So do I need to create a supplier for all other expenses and payments we made no related to the products but related to the business like the company who run our website, the courier company and all other invoices we get??? I hope is my question its clear!!

And also after I have imported the business bank statements into manager do I have to link them to the invoices from the supplier they appear under supense Account at the moment??

Thanks for your help again

I don’t have much experience with bringing an existing business transactions into Manager. When I started Manager, I started with a new business so I started from scratch.

There are two ways to pay an invoice.

You can create a purchase invoice with the relevant details (my preferred method).
You can go to cash accounts and spend money and put in the name of the Supplier, Expense Account and other details there.

Technically if you pay the invoice immediately when you receive the invoice from the supplier you don’t need to create a purchase invoice as your are paying it immediately. A purchase invoice becomes necessary when you have received an invoice but you are not going to pay it immediately.

The reason why I like using Purchase Invoices even though most of the time I am paying it immediately is because it makes it much easier for me to view only purchase invoices such as when I am printing out all my suppliers invoices for a paper copy. A lot of payments in spend money are not invoice payments such as bank fees, salaries etc.

You should create a supplier for each company that you buy from. This will be very useful down the line to see how much you spend with each company and review if you can get a better price elsewhere and many other reasons.

I don’t use bank reconciliation as I manually check things, so I am not sure how this works. The reason why your invoices are appearing under the suspense account is because you have not allocated them to an expense account like inventory on hand if we are talking about your product purchases or delivery fees if we are talking about courier company charges.

Before you allocate everything to inventory on hand, decide if you want to use inventory on hand and sales of inventory as your two accounts to buy and sell inventory or if you want to break up your inventory purchases and inventory sales into categories such as Inventory Computer Purchases and Inventory Furniture Purchases if say for example you sell computer equipment and furniture equipment for the office. You might want to split the two types of inventory into two expense accounts and two sales accounts. If you look at inventory items you will custom income account and custom expense account. You will need to creat the income and expense accounts first in chart of accounts.

I suspect that you need to create quite a few income and expense accounts first in chart of accounts in settings as you may not have customised that yet.

You would create each supplier required under the same tab , click “New Supplier”

Yes, click edit beside those transactions and for the account select Accounts Payable then fill the Supplier & Invoice fields that appear.

Thanks for your help you are amazing!!!

Thanks for your answer, now that i read it a couple of times the software started to make a lot more sense!!! Cheers!!!

Another Question, If me as a Director of the company (limited company) (new starting business) i had to loan money to the business from personal funds, how should I enter this money into the system?? (transfer money from personal account to business account)

And if i bought something or pay with personal funds how do i record this in manager???

Thanks heaps!!!

My first recommendation would be to speak to your accountant about this as this an area where your accountant is the best person to advise and in fact is the whole point of having an accountant.

What my accountant advised me to do for Ltd Company in England (the laws may differ in your country) is to pay myself a set amount every month from the company say £2000 for example. Out of that £2000, I would pay around £600 salary (below the maximum before you have to pay National Insurance so saving me tax), every third month, I would pay the Business Mileage Allowance and then the balance to get it to £2000 I would pay out of Directors Loans. So the result is that my monthly income was always a set figure regardless of whether the money came from Salary, Business Mileage or Directors Loans. At the end of the year (before the end), I would then pay an annual Dividend that would pay back the Directors Loan and in addition any remaining income in the company would be declared as a dividend.

So you go to chart of Accounts and create a directors Loan Account under Assets (why Assets - because most people are borrowing money from the company, so its not a company liability, but actually an asset that is a loan to you the person.) Under Liabilities create Dividends and under Expenses create Salary. If you use the Payroll Module, Payroll module will create a salary expense account and an employee clearing account - it will make sense when you start using it.

So each month, I go to payroll and pay my salary, then I go to cash accounts and spend money and I pay the salary, any business Mileage and the remainder as Director Loan.

Near the end of the year, I pay out a Dividend which would be two transactions. Bank spend money to pay out any remaining profit from the company and then a journal entry to Directors Loan and Dividends to cancel out the Directors Loan Account which must be paid off before a certain date, so I just make it by the end of each tax year.

But speak to your accountant as they can best advise on this.

You would create via Settings - Chart of Accounts - BS - Liabilities an account called Directors Loan as the business will be owing you.

You wouldn’t use Transfer Money as your personal account shouldn’t be part of your business accounting. You would use Receive Money with the Account being Directors Loan.

When you make purchases with personal money use the Expense Claim tab. Then you can either repay yourself by Spend Money or transfer the Expense Claim to the Directors Loan account via Journal

I stand corrected. You are lending the company money therefore the Directors Loans Account should go into Liabilities. I was thinking that the company was lending you money!

How would i transfer the expense claim i have entered under expense accounts Telephone through a journal to the Directors Loan Account???

If you entered it properly you a balance in the Expense Claims liability account. Use a journal entry, debiting Expense Claims and crediting Director Loan.