I changed every ‘Invoice’ to ‘retained earnings’ and every ‘sales’ to ‘retained earnings’ as I have the full price of all my expenses listed and therefore my sales earnings are all paid in full and retained in my bank balance.
This picture is correct if you just look at my assets column (this is the money I’ve received from (invoices and sales) - the expenses. I typed in the Payments field the exact amount shown in the expenses field because all expenses have been paid.
The profit should read the same as the assets now. If I leave the ‘Billable expenses invoiced’ rather than turning it to ‘retained earnings’ then it puts it in suspense. This indicated to me that I should put it as retained earnings because this was the only way I could make the system happy and remove the items from suspense. Any help would be greatly appreciated.
You must use the Customers tab as explained and clear those that are uninvoiced. Renaming invoice and sales to retained earnings is incorrect. Leave them as they are.
Try www.accountingcoach.com to get a basic understanding of accounting - you seem to be mixing up a lot of concepts, so it is difficult to help you out
Hi, I understand but I would like you to try to help me please. I don’t have time to do the accounting course sorry and I have been told that Manager can be user friendly without accounting experience. It seems all I need to do is enter my Expense claim invoices under Purchase Invoices to sort out the billable expenses problem- time consuming but very possible.
I only really need the software to generate receipts for clients but it would be nice to have a general snapshot of my profit and losses (even though I am aware of this for each financial year through my spreadsheet).
When I enter a receipt for a client, what should I be classifying my time as? Should I be calling it 'Billable expenses invoiced?" There isn’t a Billable time in the drop down menu.
What should I be using the ‘Retained earnings’ for?
Having an experiment this morning, when I click on Payments made after entering a Purchase Invoice, it seems to double up as extra expenses even though I’m just paying the Purchase invoice.
Thanks in advance,
Emma
@tofindemma, your lengthy post reinforces your need for education about accounting principles. You demonstrate that you do not understand the basic purposes of different transaction types. You claim you do not have the time to learn about accounting, but you have no problem asking others to do that work for you, for free. Yes, Manager is friendly for minimally experienced users. But you need to have a basic understanding of what this tool is intended to accomplish. A carpenter needs to know the purpose of a hammer is to drive a nail, not a screw.
If you are unwilling to put in that effort, that is fine. Many successful business people do just fine without much accounting knowledge. But, if that is your case, you should accept that you are a candidate for hiring accounting services. They are available everywhere, even over the internet.
This shows how all balances are adding up based on the transactions you have entered.
If you want to see how net profit reconciles to your Cash on hand balance, then I suggest you view Cash Flow Statement - Indirect Method which is a standard accounting report specifically designed to show this.
You can start new business and enter transaction by transaction and see how it impacts your balance sheet and profit & loss statement. This would also give you better understanding of principles behind double-entry accounting.
