Software Documentation Manual

Version 5.1.1

Copyright © 1999-2019. All Rights Reserved.

GETTING STARTED

Introduction

This integrated accounting system for the Personal Computer will produce a General Ledger, Accounts Receivable Ledger, Accounts Payable Ledger, Payroll Journal as well as various types of balance sheets, income statements, and numerous other reports. The system is of the finest professional quality and will cover most phases of business accounting. The professional version also allows for the preparation of working papers, permanent file information, formal statements, engagement and presentation letters, and documentation for filing and producing forms and letters for corporate registry.

System Installation

To install the program, complete the following steps:

1. Run the link provided by Jade Software Systems Inc either directly by email or from the Jade Software Systems Inc website..

2. The default menu for the software on the computer is C:\Jadewin.

3. The default data folder will be C:\Jadewin\Data with multiple years from 2000 forward to current created for backup folders. Note, the folder for DATA may be located on any device including a server as long as the other backup folders are also created on that path.

4. When the installation is complete, press finish and an icon will be created on the desktop which now can be selected to launch the application.

5. When the program runs, the first thing to show up is the log on code of the company last worked on. In the case of a new install, the (SAM)ple company is loaded and as indicated the log on code is “SAM” or “sam” which will allow the user to continue into the menu of the system.

Hardware Requirements

Registration

Complete the registration form found on the website and return within 10 days of purchase. Upon receipt of a signed and dated registration form, you will be eligible to receive updates or corrections which we may issue from time to time as well as phone support covering the current calendar year at no extra charge. A special code will be issued so that you can access the members section of the website at www.jadesoftware.net.

Disclaimer

JADE Software Systems reserves the right to make improvements in the product described at any time without prior notice.

DISCLAIMER OF ALL WARRANTIES AND LIABILITIES: JADE Software Systems makes no warranties, either expressed or implied with respect to this manual or with respect to the software described in this manual, its quality, performance, merchantability, or fitness for any particular purpose. JADE Software Systems software is sold or licensed 'as is'. The entire risk as to its quality and performance is with the buyer and not JADE Software Systems, their distributors, or their retailers. The buyer assumes the entire cost of all necessary servicing, repair, or correction and any incidental or consequential damages resulting from any defect in the software, even if JADE Software Systems has been advised of the possibility of such damages.

ALL RIGHTS ARE RESERVED. THIS MANUAL IS COPYRIGHTED. THE MANUAL OR DISKS MAY NOT, IN WHOLE OR IN PART BE COPIED, PHOTOCOPIED, REPRODUCED, TRANSLATED OR REDUCED TO ANY ELECTRONIC MEDIUM OR MACHINE READABLE FORM WITHOUT THE PRIOR WRITTEN CONSENT FROM JADE SOFTWARE SYSTEMS INC.

JADE Software Systems Inc. neither assumes nor authorizes any other person to assume for it any other warranty or liability in connection with the sale of its products. Notwithstanding the above, if you should have any questions about or problems with the programs, please contact:

Gordon J. C. Bates

JADE Software Systems Inc.

125 Woodpark Court S.W.

Calgary, Alberta T2W 6E5

Phone: (403) 238-2705

Support: (800) 503-9328

Fax: (403) 238-2705

Website: www.jadesoftware.net

Email: support@jadesoftware.net

Trial Version

The Trial Verion of JADE Software Systems gives the user a full working copy of the system, however printed reports are watermarked with “trial version”. If you have a valid licence, contact JADE Software Systems Inc for a code to validate the software to a working copy. If you do not have a valid licence and you wish to purchase the software, contact JADE Software Systems Inc and register for a valid licence.

System Overview

Universal Commands

It is advisable to type all General Ledger, Accounts Payable, Accounts Receivable, Payroll, and sundry information names in UPPER and LOWER CASE to look more professional on reports.

Auto-Format

The system allows for fast numerical input without worrying about the decimal position. By typing the number (1234567) the system will auto-format the number as (12,345.67). Amounts may also be entered using a period such as (1234.), being formatted as (1,234.00). Several other examples of input lines are listed below that use the AUTO-FORMAT feature.

Procedure for general ledger month end

1. Enter all accounts payable invoices using the ACCOUNTS PAYABLE PURCHASE JOURNAL if you plan on setting up accounts payable entries. This is advisable to show a proper trail of information as well as accounts payable balances as at any period end. Canada Revenue Agency may request verification of GST from invoice and not from simple input of cheques and as such the entry of accounts payable invoice may become necessary.

2. Enter all cheques from Cheque stubs or by actually having the system print the cheques as you enter them. In the case of payments by debit card, they should recorded using the Debit Card Journal and be treated like cheques except the reference to the debit card receipt.

3. Enter any additions or disposals to capital assets during data input or by moving to capital asset files under EDIT of main menu. If you wish to have depreciation calculated for year end or just for the period covered, move to capital assets under APPLICATIONS on main menu.
   
   Also located under capital assets is print a schedule of depreciation as this updates the necessary information required for the Capital Cost Allowance calculation. NOTE IF YOU ARE PROCESSING THE LAST MONTH OF YOUR FISCAL YEAR, IT WILL BE NECESSARY TO PRINT THIS REPORT TO KNOW THE EXACT AMOUNTS NECESSARY IN SETTING UP JOURNAL ENTRIES FOR YEAR END. THE SYSTEMS PROVIDES FOR AUTOMATIC CREATION OF THESE ENTRIES.

4. Enter general journal entries and cash register entries accessed under general ledger including the transfer from payroll system, transfer from accounts receivable system, monthly standard entries, deposits, sales and any other entry or adjusting entry required to put general ledger accounts into proper balance. Entries from the payroll system and the accounts receivable system automatically post to the general ledger.

5. Print all required reports including the accounts payable journal entries, aged accounts payable report, accounts payable ledger and alphabetical list from accounts payable. As well print the Cheque register, cash register journal, general journal entries and posting of general ledger from general ledger and bank manager. This can be accomplished using the routine listed under general ledger for printing monthly (quarterly or yearly) reports.

6. Print all statements required from financial statements including balance sheet, income statement and if set up and being used, the budget income statement. If you wish, you may print a statement of ratios using the current general ledger to compare current month with previous month. These reports are also included as part of the printing monthly reports mentioned in #5 above.

7. Make a backup copy of the data disk at this point from the using the Export program under FILE on the Systems Menu before continuing. It is advisable to transfer not only to C:\JADEWIN\DATA\2018 but also to an external hard drive. The 2018 should reflect the actual fiscal year end of the company, so that a company with its next fiscal year end ending in 2019 should be transferred to C:\JADEWIN\DATA\2019 and so on replacing the previous copy in the same path until such time that the year end changes.

8. After making your backup copy of the files, run the program called 'month-end clearing' found under general ledger in APPLICATION MENU. You will be asked if you have completed a number of routines before continuing and if you have followed the previous steps as they were laid out, you may continue.

9. You are now ready to start a new month or if you have just completed the year end, you will now have to proceed with the next section 'procedure for completing a year end'. If the company will have a stub year, it will be necessary to change the month end date back to the previous month before proceeding with the year end function as this date will now become the year end of the company.

Procedure for completing a year end

1. When printing formal statements for any period but especially for the year end, it is advisable to print one of each report, as dollars and cents for the files and others for financing and/or tax department rounded to the nearest dollar.

2. From the Systems Menu under APPLICATIONS go to Capital Assets, if Schedule of Depreciation has not been printed as noted in paragraph #3 of 'Month-End Procedure' above proceed now to print the required copies of this report. Once printed, return to capital assets under APPLICATIONS, and calculate whatever Capital Cost Allowance you wish to claim for the current period for tax purposes or have the system prepare the journal entry automatically as one of the options in the report default. Return to capital assets under APPLICATIONS and print the Capital Cost Allowance Schedule.

3. Once all transactions are completed including set up the provision for corporate tax amount or the refund expected, verify the T2 return schedule 100 and schedule 125 figures agree exactly with the trial balance.

4. Preparation of notes to financial statements can be simple or detailed with most common notes being created automatically from the list selected by the user. Notes may also be added manually and all notes may be edited at any time. (See Notes to Financial Statements)

5. There is no special reason to printing the following statements in the order that they are noted other than to eliminate having to change paper from one type of report to another. Move to the Systems Manager and to Client Management under PROFESSIONAL and select each of the letters or reports and define the report defaults. The letters may be printed individually at this point or can be combined when printing the financial statements.

6. From the Financial Reports Menu, select 'Print Year End Statements'. This routine will allow the user to print all letters and financial statement options selected continuously with as many copies as requested. The defaults for each of these letters and statements must be defined before doing this routine. The selections here refer to the Presentation Letter, Engagement Letter, Acknowledgement Letter, Statement Index, Comments, Balance Sheet, Changes in Financial Position, Changes in Working Capital, Notes to Financial Statements and additional reports, all of which the user can include or exclude.

7. Now that you have completed all the above statements, reports and forms, you are ready to continue in closing the files off, getting ready to start a new year. To do this, proceed to APPLICATIONS and under General Ledger run the program Process Year End Clearing. This updates all necessary files automatically after which you may start a new year of input beginning back at 'Procedure for Completing Month-end'. If there were any transactions entered prior to year end that were post-dated, the system will automatically run post after clearing the year end.

Procedure for accounts receivable month end

1. Enter all accounts receivable invoices and credits using either the system to create invoices or simply enter information about existing invoices.

2. Enter all payments and credits using the account receivable cash receipts journal.

3. Enter any additional adjustments required, such as reverse service charges, write off an account to bad debts or reverse an entry previously entered to the incorrect account.

4. Be sure to calculate service charges before printing any reports if service charges are wanted. All charges and payments must be input prior to calculating service charges.

5. Print all required reports including the accounts receivable journal entries, accounts receivable cash receipts journal, aged accounts receivable report, accounts receivable ledger and summary of accounts receivable and sales report from the reports menus.

6. As in “procedures for general ledger month end”, make a backup copy of the data disk at this point before continuing using the transfer program under FILE on the Systems Menu.

7. Print the Accounts Receivable Statements. Statements may be printed more than once a month as this does not clear or alter the files.

8. Change the accounts receivable period date to the next period you wish to do. You are now ready to start a new month.

Reference Guide

Weights and Measures

Unique Calculations

1. To find the diameter of a circle, multiply the circumference by .31831

2. To find the circumference of a circle, multiply the diameter by 3.1416

3. To find the area of a circle, multiply the square of diameter by .7854

4. To find the surface of a ball, multiply the square of diameter by 3.1416

5. To find the side of an equal square, multiply the diameter by .707

6. To find the cubic inches in a ball, multiply the cube of the diameter by .5236

FILE

Load

Used to load an existing company, this program allows for the change of the data path together with a list of existing companies on that path.

To run any program, you must first be logged onto a company.

1. From the Systems Manager (Main Menu), go to File, Load, and select the data path where the company file is located or the path to which a company file is to be transferred to. The drive and directory path can be selected from the list boxes.

2. Use the pick list to select the required company located in the defined path.

The company code may be from 001 to 999 or AAA to ZZZ or a combination of alpha-numeric and is the code under which the files are created for your company. There are some restrictions such as EXE, JSS, PBC, HLP, NEW, ZIP, ESS, EQS, or JDE as these codes may conflict with other program or data files on the computer.

Please note that an existing file may also be deleted using this program. Select Delete and the file you wish to delete. There will be a warning about deleting the file but should you wish to continue click (Y)es and then click Delete again.

If wishing to load a file previously in a DOS format and the data path does not end with “\data\” click on Specify Convert Path and proceed following the instructions. Once the folders for the years 2000 to 2020 have been added to the path you wish to use, select (Y)es and the companies will be added to the pick list of companies. Select the company you wish to covert and proceed.

New

To create new company files, follow the steps below.

1. The data path will be the default data path shown. To create the files at a different location, enter the data path where the company file will be located or the path to which a company file is to be transferred to. The path can also be selected using the drive and sub-directories listings. Make sure not to use (A:\JADE\) or (C:\JADEFILE\) because data copied to these paths will be compressed.

2. Define a NEW CODE. The code may be from 001 to 999 or AAA to ZZZ or a combination of alpha-numeric. There are some restrictions such as EXE, JSS, PBC, HLP, NEW, ZIP, ESS, EQS, or JDE as these codes may conflict with other program or data files on the computer. The system will check the drive to confirm that the code does not already exist.

3. If the path and code are accepted, the system continues to the next form 'JADE – New Company'.

4. Select the company type from the drop-down list of company types, including incorporated, proprietorship, partnership and society.

5. Confirm whether the company has been registered for GST/HST or not. Select (Y)es or (N)o from the drop-down to indicate whether the company is registered for GST or not.

6. Select the province of residence for the company from the drop-down list of provinces. This selection will define tax and schedule jurisdiction.

7. Input the beginning date for the company's fiscal year. The system will then calculate the year end date, the previous year date and the last day of the first period of the current year. THE END OF YEAR DATE MUST BE A FULL YEAR even in the case of a short year as the system will deal with this upon completion of the first year end. If there was no prior year, just ignore that the system has actually created a date because it will not be used.
   
   Note: In the case of a new corporation the beginning of the year is the incorporation date, however, if the date falls during the month, the beginning date should be the 1st of the following month. An example would be a corporation with an incorporation date of July 16th so that the beginning of the year date should be August 1st with all activity for the latter part of July included in the August period and the end of the year date as July 31st.
   
   If, however, there were sales and expenses related to a GST/HST return with July 16th as the start date or some other date at the beginning of July such as July 5th, the beginning date could be set up as July 1st with June 30th as the year end date. In this instance, even though the books and records indicate the company with a July 1st beginning, be sure that the T2 (Corporate Tax) Return shows the actual incorporation date as the beginning of the year with the first year end as June 30th or some other prior month if a short year is decided upon.
   
   It is possible to have a beginning date and ending date falling at some date other than the beginning and ending of a month such as July 16th of one year to July 15th of the next year, but this is not advisable as it creates all kinds of problems for completion of monthly statements and year end statements because of the cut off periods of bank statements, T4 slips, T5 slips of investment companies, etc.

8. The system will calculate the end of the first month date and it will be the last day of the first month of the company's year. If the number of periods has been selected as '13', indicating the company operates on 13 four week periods, then this date must be the end of the first four-week period in the company's year.

9. Select (Y)es or (N)o from the drop-down list to indicating whether this is the first year of the company. It is used to define some defaults in reports.

10. Select (Y)es or (N)o from the drop-down list indicating whether this is the first year of this client for this accounting firm.

11. Select the number of accounting periods for the year from the drop-down list. This can be '12' or '13'. It will only be '13' if the company decides to operate on 4 week periods instead of monthly periods.

The system will now create all the necessary files for the general ledger, the payroll and the accounts receivable, and take you to the program, User Names and Codes. (See User Names and Codes below) Once the user information for this company has been completed, proceed with the company information under the company master file. This allows you to set up the company basic information, partners or shareholders and if incorporated, the authorized share capital. Be sure to all requested information as it is used throughout the system.

Save As

This routine has been set up exclusively to copy from one code to another. If the new code is logged onto using 'Load', sample date may be entered without affecting the original files of the first code. As long as no data has been entered, this routine could allow you to create files for multiple companies which may have the same charts of account. The following steps are necessary in use of this function:

1. Enter the data path to save the duplicate company to. Normally this will not change, but if it does, be sure to set it up using the proper format to an existing folder.

2. Input a code of the company to be duplicated. The system will warn the user if the code does not exit. Press F5 or use the drop down to obtain a list of companies to select from.

3. Input a three-character code for the duplicate files, 001 - 999, AAA - ZZZ, or any combination. The system will warn of an existing code. Once the files for the new code have been created, run Load and log onto this new code.

Export and Import Files

This routine allows for the transfer of files to and from an external storage unit or to and from another path on the hard drive. JADE creates a folder on the root directory of ‘C’ or an external storage unit called ‘jadefile’ which will be used as a folder of compressed company files.

It is extremely important to ‘backup, save, transfer’ data files on a regular basis for security purposes or possible hardware problems that create lost data. The default data path is C:\Jadewin\Data, however the data files can be located in any folder on the computer or a server. To ‘backup’ the files, add the company’s year end date such as October 31, 2018 as part of the path such as C:\Jadewin\Data\2018 and C:\Jadewin\Data\2019 when the year end of the company is changed to October 31, 2019. These files will remain on the respective directories indefinitely, allowing the user to load them at any time in the future to reprint or review the data.

Transfer files from or to another folder on the hard drive other than archived (compressed) files:

1. Select the data path where the data is located.

2. Select or enter the path where the data is to be transferred to. This can be any path but for a simple backup of data the folder selected should be the same as the source folder with the year added such as “c:\jadewin\data\2018”

3. Select the company to be transferred.

4. Record the company code to be used for the new file. The default is the same code as in #3 above.

5. If the code already exists in the folder selected, the system prompts the user to over-write or not.

6. Transfer.

Transfer files to C:\JadeFile or H:\JadeFile

To transfer to a compressed drive as C:\JadeFile, or another device such as a memory stick H:\JadeFile, the system compresses the company data files into one file. The name is created using the company’s code such as ‘001’ plus ‘W’ followed by the month and year of the last input of the general ledger ending with ‘zip’, such as ‘001W0615.zip’. The compressed file can easily be attached to an email for file transfer between client and accountant or client’s offices.

1. Select the data path where the data is located.

2. Select the drive where the data is to be exported to.

3. Select that the data is archive (compressed).

If archive is (Y)es the system will automatically select “c:\jadefile” which can be changed to: example “h:\jadefile.

4. Select the company to be transferred.

5. Record the company code to be used for the new file. For archived files the new file name consists of the company’s code plus ‘W’ plus the month and year of the last input of the general ledger with the extension of ‘zip’.

6. If the code already exists in the folder selected, the system prompts the user to over-write or not.

7. Export.

Transfer files from C:\JadeFile or H:\JadeFile

To transfer a file back onto the hard drive from a hard drive as C:\JadeFile or a memory stick such as H:\JadeFile , the system decompresses it while transferring it back to the hard drive.

The system assumes that the most current data files already exist on the hard drive and before it will allow the file to be transferred back on, the existing file must be deleted.

1. Select the drive where the data is stored.

2. Select that the data is to be archive (compressed) .

3. If the company already exists on the hard drive, the system will prompt the user to overwrite the existing file before proceeding.

4. Select the data path where the data is located C:\JADEFILE, or example H:\JADEFILE.

5. Select the compressed file to be transferred to the data path indicated.

6. Import.

Convert Data Files

This routine, which constitutes part of the Load Routine, converts JADE Software Systems DOS version files to JADE Software Systems Windows files automatically. All files for the company logged onto will be converted including updates to formats where necessary. The system will automatically update older versions of the DOS files prior to the conversion. During the conversion, the system will over-write the existing files located on the source path but not the sub-directories.

If wishing to load a file previously in a DOS format and the data path does not end with “\data\” click on Specify Convert Path and proceed following the instructions. Once the folders for the years 2000 to 2020 have been added to the path you wish to use, select (Y)es and the companies will be added to the pick list of companies. Select the company you wish to covert and proceed.

Merge Files

This routine will merge company files for the same company when two separate versions are created. This will happen when the bookkeeper continues with a new year while the accountant completes the year end. The system assumes that the data from the accountant is more current except for the activity of the bookkeeper. The code for the company on the hard drive of the computer of the bookkeeper must be renamed to “YRE”. The data file obtained from the accountant must be loaded on this same source path. The system can now automatically merge the activity of the bookkeeper into the data of the accountant creating on updated and merged file.

User Log On

The user of the system is required to log on each time they enter JADE and each time another company is loaded. When a new company is created, the system goes directly to the user add/edit program. The FIRST user is the individual with the highest level of security and is also the master code of the company. All others will simply be users. These user names will be used in data input as a reference to those who made each entry. For accounting firms who do not wish to deal with multiple security codes, the same master code could be used for each company created. The code can be an alpha-numeric code up to 15 character in length. The access to different programs in the system is controlled by this code. For example, an user could have access to all programs in the system except payroll or investments.

Account Manager (Dated Notes) also know as (B)ring-(F)orward System

The JADE account manager is accessible by all users on the same network or by a single user on one computer. The account manager allows the user to save notes to himself/herself or someone else for work to be completed at a later date. When entering JADE, the system checks to see if any notes are dated to be responded to on or before the current date and if so, warns the user. The account manager program under FILE may now be run to determine what message there are. Notes can only be accessed by the individual leaving the message or the individual the message was left for. A report is available for unanswered messages or messages not yet responded to. If the company name and code are saved as part of the note, the company note pad will indicate any notes for a specific company.

1. Enter the date this note is to be responded to.

2. Enter the ID of the individual you wish to respond to this note.

3. Select, if applicable, the corporation name and code the note is for.

4. Enter summary of the note you wish to make.

5. Enter first line of detail about the note.

6. Enter second line of detail about the note.

7. Enter the date the response took place for this note.

8. Enter the User ID of the individual responding to this note.

9. State the procedure(s) completed in response to the note.

System Configuration

The system configuration defines the system menu path, path used for reports and user preferences. The company master code is required to access and change the information. User preferences include background scene and colours for menus. Additional scenes may be added by the user. Check with Jade Software Systems for help.

Menu Path

The menu path is set up when the program is installed but this may have to be changed in the future for some reason.

EDIT

Period Date

The Period Dates, located under EDIT, for each module, refers to the last day of the period you are working on (for example, 31 Dec 2018 entered as 31122018; for companies with month end cut-offs other than the end of the month would use for example, 03 Dec 2018). The correct date is VERY IMPORTANT as it is used by the system for proper follow through of transactions as well as the date used in printing reports. If input is to be done on a quarterly basis the period date would be the end of each quarter and if on an annual basis the period date would be the end of the year. (See Company Information to review restrictions on periods used monthly, quarterly or annually)

A separate period date is set up for general ledger, accounts receivable and payroll allowing the user to be working on separate sections at different periods. These dates are saved in the company master file so that each time the company is loaded, these dates are brought forward.

General Ledger

The general ledger date should not be changed until the period has been completed and all reports have been printed for the period. The function, process month end, will automatically update the date as it processes certain items such as aging of accounts payable, redefining post-dated cheques of the next month, as outstanding and flagging certain files that the month end routine has been completed. Generally, it is not possible to go back and enter data in a period that has been closed as the additional data would change the reports already printed. The system does allow, however, that data can be entered into a prior period, but it will warn the user about the new reports that may have to be generated.

Accounts Receivable

The accounts receivable period date has been created to allow the user to continue with the creation or input of invoices on a daily basis for periods later than the general ledger date even into the next fiscal year of the company. Once the all the invoices and receipts have been completed for the accounts receivable period, and all receivable reports have been generated, the accounts receivable period date can be changed to the next month, allowing the user to continue even though other parts of the record keeping have not been completed.

Payroll

Similarly, the payroll system, if used, can continue period by period and into the next fiscal year from the date used for the general ledger. The payroll period date must be input for each new pay period. This is the cut off date of the pay period normally the end of the month for monthly payrolls, the 15th or end of the month for semi-monthly payrolls, and every two week for bi-weekly payrolls as well as specific dates for other payroll period types. Note, however, that payroll has two separate dates, one being the payroll cut off date and the other the actual date the employees received their cheques or direct deposits. For bookkeeping purposes, entries will be saved in the month that the pay period date falls but the due dates of remittances and the cut off for T4 slips as required by CRA fall on the date used as the actual date the employee was paid.

For Accountants, a “Time and Billing” sheet can also be printed indicating the number of transactions for the period selected and can be used in preparing the invoice for the client.

Company Master Files

Company Information

This program allows for the set up the information about the company. It is advisable to complete all fields where possible as much of this information is used throughout the system and on many routines and reports.

1. The company will be capitalized but the system will automatically show it in upper and lower case where needed. Keep in mind that incorporated companies described as operating as, can record the trade name here and on the next line, type 'Division of Corporate Name' or record the 'Corporation Name' here and on the next line, type 'Operating as Trade Name enter the first line and second line, if any, of the company or society address.

2. Record the address of the company as used for mailing. There are two lines available if multiple lines are required.

3. Record the town or city of the address.

4. Select the province, state or territory in which the company is located. Press alt-down arrow or click on the drop-down arrow to select the correct province.

5. Enter the postal code of the company or society. The postal code will automatically capitalize but must be input as 'LNL NLN' unless the code is for an address outside Canada. Note that when a change of address affects the company, the contact individual, the signing individual and possibly the first shareholder, the check box may be clicked to have the system automatically update all address at once.

6. Record the telephone, facsimile and cellular numbers for the company. They must be input including area code as complete numbers not including spaces or brackets as the system will format them.

7. For companies with names using abbreviations such as ABC Company Ltd. record the name the way is should be displayed when in upper and lower case which will be used in the system instead of the system trying to automatically convert the name to upper and lower case such as Abc Company Ltd.

8. For companies that operate under a franchise, indicate (Y)es which will allow for certain special reports to be sent to the franchisor.

9. Indicate whether the company is registered for GST/HST with Canada Revenue Agency and, if so, record the GST/HST account number in the following field. The number will consist of 15 characters and will be verified.

10. Some companies deal with head offices in other countries such as the United States. If so, indicate (Y)es for GL Currency Exchange Comparison and then select the type of currency to be used. There is a table of monthly average exchange rates in the system allowing the user to define each transaction entered with the rate of exchange to be used for the month selected and the rate for that month. When printing the general ledger, the system displays the Canadian dollar figures with additional columns for the date of rate used along with the exchange rate used and the amount of the entry in the currency selected. The fields on the journals for this input will only appear if (Y)es is selected here.

11. To allow the system to automatically generate the name of a file display when printing or to save to a PDF file, an abbreviated name is necessary. The system has be designed to use a maximum of 10 characters for the abbreviated name.

12. Define the sub accounts to be used by the company including accounts payable, accounts receivable, capital assets, payroll, investments, job costing and others. This will allow for sub-ledgers in the specific categories and specialized reports for the same. Indicate whether the company is to use a budget or not. If this section is not defined, the system will not allow specific sub ledgers during input.
    
    Sub-Account Configuration

13. Only select the sub-accounts to be used currently. This section can be added to or changed at any time.

    1. Indicate with (Y)es or (N)o to have sub accounts for accounts payable accounts from account #202000 to #202900.

    2. Indicate with (Y)es or (N)o to have sub accounts for accounts receivable accounts from account #116000 to #116900.

    3. Indicate with (Y)es or (N)o to allow direct link to capital assets while doing journal transactions. Capital assets may be edited directly through the Capital Asset Files

    4. Indicate with (Y)es or (N)o to allow direct link to investments for accounts #152000 to #15290 while doing journal transactions or allow access to sub investment files.

    5. Indicate with (Y)es or (N)o to allow direct link to inventory of accounts #121000 to #122900 while doing journal transactions or allow access to sub inventory files.

    6. Indicate with (Y)es or (N)o to allow sub accounts for job cost files #120000 while doing journal transactions or allow access to sub job costs files.

    7. Indicate with (Y)es or (N)o to allow direct link to payroll accounts allowing automatic processing of journal entries for payroll transactions.

    8. Indicate with (Y)es or (N)o to allow sub accounts for accrued interest payable accounts using account #236000.

    9. Indicate with (Y)es or (N)o to have sub accounts for long term notes payable accounts from account #270000 to #270900.

    10. Indicate with (Y)es or (N)o to have sub accounts for debentures payable accounts from account #280000 to #280900.

Fiscal Year

14. The date for the beginning of the company's year and year end is defined when the company is created. These dates must not be changed except in very special circumstances and then only when the date changes do not affect the files initially created. When a company is created, some of the files use the month and year in the name of the file. Changing the month and year may affect the data files and they would have to be changed as well. Check with JADE if help is needed to correct the files after being created.

15. Also, the system requests whether the company is operating on 12 or 13 periods. Thirteen periods would only apply to companies having four week periods instead of monthly periods.

16. Indicate the last day of the first period for the company. For companies having 12 periods the last day of the first period would be the last day of the first month of the fiscal year. For companies using 13 periods, the date would be a date falling within the first four weeks of the fiscal year.

17. Record the first input period. This refers to input on a monthly, quarterly or annual basis. This will assist the system in automatically updating the period dates when processing month end or saving transactions forward to the proper period not just the next month by default.

18. Select the period type to be used for data input, monthly, quarterly or annually. In cases where the company will have a short year such as the first year of incorporation, change of a year end or the final year up to dissolution, it will be necessary to make sure the period type is set to monthly even though the period covers the full partial year.

Contact Information

Record the information about the contact individual. This will be used by the accountant in contacting the individual most likely to be contacted for information about the company and will used in preparation of certain forms prepared for Canada Revenue Agency.

1. Enter the name of the contact individual of the company. This name is used on certain letters and tax forms.

2. Enter the phone number of the contact individual.

3. Enter the email address of the contact individual.

4. Enter the position held by the contact individual such as president, secretary, director, CEO, owner, etc.

Signing Officer

Record the specific details about the signing officer of the company. This information will be used for tax returns and letters which must be signed on behalf of the company.

5. Enter the name of the signing office of the company. This name is used on certain letters and tax forms.

6. Enter the address of the signing officer.

7. Enter the town or city in which the signing officer is located.

8. Enter the province, state or territory in which the signing officer is located. Press alt-down arrow or click on the drop-down arrow to select from the options list.

9. Enter the postal code of the signing officer. Note that the postal code will automatically capitalize and must be input as 'LNL NLN'.

10. Indicate the position held by the signing officer such as president, secretary, directly, officer, partner, or owner. Press alt-down arrow or click on the drop-down arrow to select from the options list.

Electronic and Banking Codes

If the company will be filing slips electronically with Canada Revenue Agency or paying employees or other accounts payable through a service company for direct deposits, record the information about the company's bank account. This will be used by the system in generating the file to be sent to the provider.

11. The electronic transfer no was required by Canada Revenue Agency to send T4 slips and other electronically. If the company has such a number, record it, if not the system will default to “MM555555” as used as a generic number by Canada Revenue Agency.

12. Enter the web access code provided by Canada Revenue Agency if one is provided.

13. If paying employees or other accounts payable accounts using a provider for direct deposit services, record the company's bank information used in creating the file to be sent to the provider.

14. Save information.

User Names & Codes

This routine allows you to add, edit or delete user’s names and codes. To gain access to the routine, the master code must be entered first which is the code of the individual with the highest security clearance. When first entering this routine for the company which happens when the company files are created, the default code is set to '0000', which will change once the first user is set up.

In the case of accounting firms or companies with multiple company accounts, the system allows the user to save the same list off users to each account. To do this, select the most common company and set up the ID, User Password, what processes they have access to, the User Name, Phone Number, User Position, and possibly the User Hourly Rate and User Input Rate (the rate to be charged per item input) and do the same to all users. Save the code number of this company in the box on the right side of this form under the red writing. Now when you load or create a new company, make sure this code is in the same box and then click on the check box below. It will save the same list of users to the new account without the user adding all the names again each time a new account is set up.

Also for accountants having multiple companies set up for which it is desirable to have all companies with the same code, again set up one company with the proper names and codes and put the code number in the box the right under the red writing. Now click the check box at the bottom of the form and all companies will be updated to the new codes.

Add each user making sure that the first user is the user with the highest level of security.

1. Enter as the user’s ID, the user’s initials. This ID will be used throughout the system for quick input and to identify the user.

2. Have the user enter a unique pass word, maximum of 15 characters. Once saved, it can be changed only by entering it again before changing or by using the company master code in situations where this specific user is no longer with the company.

3. Define the sections of the system to which this user will have access. Select from the drop-down indicating (Y)es or (N)o for this user to have access to each specific area of the system.

4. Record the user’s name for use in some reports which will be linked to the initials used. Enter user's full name with first name followed by initials and surname.

5. For each user enter the hourly rate that will be charged out for the user. This is designed primarily for accounting offices, but any company may us it.

6. The same as for the hourly rate, enter the amount to be charged for each entry of input for this user. Both of these amounts will be used in assessing the amount to be billed to the company for work done.

7. Also, shown on the form will be the total time, input time and entries logged for each user of the company.

Authorized Share Capital

Authorized share capital pertains only to incorporated companies. Enter the authorized number, class and type, and par value of each class. Most companies currently incorporated, have an unlimited number of shares at a non-par value. Several examples are outlined below:

1,000 Class A Common Voting Non-Par Shares 10.00

2,000 Class B Common Voting Shares 5.00

or

Unlimited Class A Common Non-Par Voting Shares

Unlimited Class B Preferred Non-Par Shares

This information is used in preparation of financial statements and notes, and is included in the information sections of the working papers and permanent file information.

Shareholders, Partners or Proprietor

Enter the detailed information about each shareholder, partner or proprietor. Where more than one shareholder or partner exist, add or edit each one in the same manner. Note that some shareholders or partners may also be other corporations.

To add a new individual or company, click on the add button. The systems will automatically assign a record number for the files. When changing an individual or company, the system provides a pick list to select from.

1. Record the name of the individual or company. The name should be completed in full as it will be used on a number of reports.

2. Input the address, city, province and postal code, telephone and facsimile numbers as well as indicating whether the individual or company is a non-resident or not.

3. Record the social insurance number of an individual or the business number of a company. This information is automatically saved in the permanent file.

4. It is also necessary to show what general ledger account the shareholder, partner or proprietor will be connected to. In the case of unincorporated companies, the account numbers start at 351000 and increment by 200 for each partner. For incorporated companies, the account numbers start at 295000 and increment by 100 for each shareholder. These accounts must be added to the general ledger accounts if they do not already exist.

5. Enter the position held by each shareholder as President, Vice President, Secretary, Treasurer, Director or Owner as the case may be. This information is used in preparing annual minutes for directors and shareholders. (See under PROFESSIONAL for Meetings and Resolutions under Client Management)

6. The percentage of ownership in the case of unincorporated companies and percentage of voting shares of an incorporated company.

7. In addition, indicate the date at which this percentage first started. This can be an estimate but will allow for proper display in the case of comparative statements.

8. For corporations, it is also necessary to detail whether the shareholder is a director or not, a Canadian citizen or not, and the details of share capital holdings. For each class of share held, record the name of the share such as, common voting, along with the certificate number, number of shares, class of shares and the original costs.

   1. Record the type of share; example 'Common Voting’.

   2. Input the share certificate number; example A1, 1A or B2.

   3. Indicate the number of shares issued.

   4. Indicate the class of share that was issued.

   5. Record the original amount paid for the share issued; example 1.00 or 15.00.

9. For proprietorships or partnerships, even corporate partnerships, indicate 'whether the user will define the share of the profit per partner or let the system automatically calculate it by percentage. If the user will define the share of profit to be claimed for each partner, the amounts recorded to each partner must equal exactly the profit or loss of the company.

Receivable Master File

Basic information about the company's account receivable must be set up and it can be edited at any time.

1. Press alt-down arrow or click on the drop-down arrow to edit the list of accounts receivable sub account headings. The first one is the default. Select the name to be use for the accounts receivable from a list of ten possible categories for accounts 116000 to 116900.

2. Where necessary, indicate the name of the division of or operation as, by typing ‘Division of ‘ or ‘Operating as’ plus the name.

3. Define the aging type required as monthly or semi-monthly. JADE allows for monthly or semi-monthly aging even though the default and most common, is monthly.

4. The year end date of the company for receivable purposes would have been created when the company was created and should not be changed as some files use the month and year as part of the file name. The year end date for accounts receivable is the same as the general ledger except where the accounts receivable has continued into the next fiscal year. If the accounts receivable sub-ledger has not been previously used but the general ledger has been, the accounts receivable date would not have updated each year. As a result, it will be necessary to change the account receivable year end date to match the general ledger date. To do so, it is necessary click the check box to the right to unlock the text box. Input the correct date and re-lock the text box.

5. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you require the company's name be printed on invoices or register and (N)o if you have pre-printed forms.

6. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you require the company's name be printed on statements and (N)o if you have pre-printed statements.

7. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you require the company's name be printed on receipts and (N)o if you have pre-printed receipts.

8. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you wish to have the system track invoices to eliminate duplications. This will create a very large file after many invoices but you can clear the file and start again by typing (C)lear.

9. Record the amount, if any, you wish to have as a default service charge rate. It will show up on every account created but the individual customer's rate may be changed at any time.

10. If you wish to have a minimum charge to over-ride the calculation above 20 cents and below the minimum charge, indicate the amount.

11. Input the account number the system will use to record service charges calculated. The default has been set as 493000.

12. If the company is registered for GST/HST with CRA, input the GST/HST number ending with ‘RT0001’. The number will be verified by the system to be correct or not.

13. Confirm the method the company uses in calculating GST/HST as the quick method or detailed method.
    
    For the quick method, all sales including the GST/HST is recorded to sales wherein the detailed method, the amount recorded to sales is only the amount of the sales not including the GST/HST which recorded directly to account 231500 GST/HST payable.
    
    For the quick method or detailed method, the GST/HST on capital asset purchases can be recovered and as such is recorded to account 117500 GST/HST Receivable. Only for the detailed method can the GST/HST on costs of sales and expenses be recovered and is therefore posted to account 117500 GST/HST Receivable.
    
    The GST/HST verification report will calculate the actual amount of GST/HST owing or as a refund. The amount calculated using the quick method covering the collectible portion has to be set up as a journal entry with a debit to a non-GST/HST account in the sales category of the chart of accounts and a credit to 231500 GST/HST Payable. In this method if the account 421000 Sales is the default account, 421100 GST/HST on Sales could be the account used to post the debit to.

14. For the quick method, record the rate to be used by the company. 5% prior to July 1, 2006 and 4.3% after June 30, 2006. The reduced rate prior to July 1, 2006 was 2.5% and 2.0% after June 30, 2006.

15. For the quick method, as indicated in #13 above, the system requires a default sales account such as 421000 Sales so that 421100 GST/HST on Sales.

16. In the preparation of Unit Invoices, the units can be entered and dealt with in whole or decimal amounts. To simply input, the user set a flag as (Y)es so that all amounts are considered as whole numbers.

17. Click on the check box to set up invoice defaults if the system will be used to create accounts receivable invoices before actually recording transactions. If an icon is available for the company it is advisable to add it to the system before proceeding with creation of any invoices.

Invoice Register Prompts

To speed up input of accounts receivable invoices, the system allows the user to create up to 250 different prompts. These prompts may be edited at any time.

1. Type a code up to 5 characters long, easy for you to remember which will save time typing the full account number, amount and/or text in each of the columns.

2. A general ledger account may also be defined but this can also be entered at the time the invoice is being created.

3. An amount may also be set up in advance to save time on input but it should not be done where the amount may change from invoice to invoice.

4. A full description for one line of the invoice can be set up which will greatly speed up input of invoices that have descriptions that are repetitious.

5. There is an option to set up default descriptions for service invoices or unit and inventory invoices since the available space for service invoices is longer than for unit and inventory invoices.

GL Chart of Accounts

This routine allows editing of general ledger accounts, as well as the ledger headings and printing of chart of accounts and trial balances both on monitor and printer.

Edit Budget Amounts

To allow the company, the use of a budget, it must first be defined as such. To do this, go to Company Information under Company Master Files and change the default to (Y)es.

To create the initial budget, go to Chart of Accounts and edit one of the general ledger accounts, save, return to the systems manager and return back to the Chart of Accounts and under Edit, go to Budget Accounts. The list created will consist of every revenue and expense account that exists in the chart of accounts.

Type the general ledger account or press alt-down arrow or click on the drop-down arrow to select from the list. Input the prior year budget total. There are a number of ways that the current year’s budget amount can be input:

1. Type in the individual amounts in each of the reporting periods.

2. Press Alt F3 when the cursor is on the first month of the year and the system will automatically take the prior year balance and divided it by 12 and save the respective amounts in each of the fields. If the budget amount for the current year will be different that the prior year, enter the new total in the first month of the current year and press F3 while in the second month of the year and the system will divide the new amount by 12 and save the respective amounts in each of the field of the current year.

The F3 function key will repeat the previous field amount to the current field.

The Shift F3 function key is the same as the F3 function key but the amount repeats to the end of the year not just one field. The entire budget may be created as simple or as detailed as the user requires.

THE PROFIT OR LOSS, IF ANY, MUST BE ENTERED TO ACCOUNT 999999. The function will not terminate until the debits equal the credits. To leave the function and return to complete the input record the difference required to one account and edit it later.

Trial Balance Input (Professional versions only)

Previous year setup

To simplify the set up of the trial balance for the previous year end from another system, click on (P)revious and enter the amounts to the existing chart of accounts. When the cursor is located at the account number, double click or press the F6 function key to get a list of options to add, change or delete an account. Since the account numbers from each system are different, a section has been added for the input of the account number of the other system. This will allow a quick cross reference for adjusting entries given back to the client to update their system.

If sub-ledgers for accounts receivable and accounts payable are being used, the individual balance of each customer or vendor must be input to update the general ledger accounts. Press F6 at the amount column for these accounts and the system will provide a new screen to add or change customers or vendors.

Current year trial balance

For some companies, the client does the bookkeeping during the year and provides the accountant with a trial balance at the end of the current year. To input this trial balance, click (C)urrent and enter the figures from the trial balance. The system will calculate the variance. You can go in and out of this routine until you are satisfied the figures are correct by clicking on (O)k. When fully satisfied that all amounts including accounts receivable and accounts payable sub accounts are correct, press or click on the (S)ave button and the system will create a journal entry of the variances. This routine can be done only once at year end prior to doing any adjusting entries. To process this function more than once a year, select (P)revious (C)urrent so the system would allow for monthly or quarterly input of figures from a client allowing the accountant quick input of activity of the client's company for preparation of formal statements.

General Ledger

In editing a general ledger, it will first be necessary to pick the one to edit. The pick list will provide a list of all the general ledgers of the company for each of the years the JADE system has been used and all the basic ledgers used to create new files. The basic ledgers may be edited at any time To have all the accounts and names required each time a new company is created. Use the up and down arrows to highlight the ledger wanted and press enter to select the highlighted one.

Accounts may be added, changed or deleted.

1. Select or enter the account number to add, change or delete. Press alt-down arrow or click on the drop-down arrow to select from the chart of accounts, or type the account number. All trailing zeros are added by the system. To assist in determining the proper category to use in adding a new account see the section on Account Classification. Account Restrictions outlines the restrictions in account input.

2. Press alt-down arrow or click on the drop-down arrow to select from the list of GIFI accounts, or type the account number. The T1 and T2 income and expense forms have reference numbers assigned by CRA. To group specific revenue and expense accounts on these forms, indicate account number used on the form for this account.

3. If entries to this account will involve GST calculations, click on the drop-down arrow to select (Y)es or (N)o, or enter (Y)es so that the system will automatically calculate GST each time new input is made.

4. If entries to this account will involve PST calculations, click on the drop-down arrow to select (Y)es or (N)o, or enter (Y)es so that the system will automatically calculate PST each time new input is made.

5. Describe the name of this account, entering it in upper and lower case because it will be shown as typed, on financial statements.

6. Using date format DDMMYYYY, enter the year end date for the previous year end. If this is the first year of operation, enter a date one year earlier than the current year end chosen.

7. Enter the amount shown on the previous year end trial balance, including all assets, liabilities, equities, revenue and expenses. To set up the prior year balances of an existing company see the section 'Setting Up Existing Companies'.

8. In the case of long term finance contracts which may be for leases, account numbers from 260000 to 269999 will ask whether the loan is for a lease or not. When the borrowed portion of a lease is set up for a capital lease, payments will be made this account instead of directly to a lease expense. As such the account can be flagged as having GST/HST calculated on the amounts entered from period to period.

Account Restriction

The following list of account numbers and names should not be changed or deleted as they are used by the system automatically for specific purposes. If required, change the name to a similar name such as in the case of the (Bank Current Account) which could be changed to (Bank of Nova Scotia).

100000 Petty Cash

110000 Cash

113000 Bank Current Account

116000 Accounts Receivable

118000 Allow for Doubtful Accounts

120000 Work in Progress

121000 Inventory

147000 Prepaid Expenses

151000 Investments

202000 Accounts Payable

231000 Sales Tax Payable

251500 Deferred Income - WIP

259900 Current Portion Long-Term

295000 Shareholders Loan

299900 Less: Current Portion

351000 Capital

351100 Drawings

362000 Issued: # of Shares

363000 Retained Earnings

364000 Dividends

370000 Surplus (Deficit) Prior

375000 Surplus (Deficit) Current

380000 Prior Period Adjustments

399000 Profit & Loss Summary

421000 Sales

504000 Direct Wages

521000 Purchases

604000 Office Wages

605000 Commissions

607000 Canada Pension Plan

610000 Employment Insurance

618000 Meals

648000 Property Taxes on Land

653000 Life Insurance Premiums

666000 Tax Penalties & Interest

663000 Interest on Land

682000 Donations

710000 Interest Earned

764000 Dividends Earned

788000 Recaptured Depreciation

790000 Gain on Sale Investments

799000 Gain on Sale Capital Assets

802000 Management Salaries

803000 Directors Fees

880000 Federal Political Donations

881000 Provincial Political Donations

888000 Depreciation

889000 Amortization

891000 Government Grants

892000 Employment Tax Credit

893000 Reserves

894000 Other Non-Deductible Expenses

895000 Investment Tax Credit

896000 Extra-Ordinary Transactions

897000 Restricted Farm Losses

898000 Loss on Sale Capital Assets

899000 Provision Corporate Tax

999999 Profit (Loss) Transfer Acct

Account Classification

The following account numbers are used in the manner indicated in the printing of formal financial statements and show the range available in each section.

Current Assets

100000 to 109999 Petty cash accounts

110000 to 111999 Cash accounts

112000 to 112999 Credit cards on hand

113000 to 113999 Bank chequing accounts

114000 to 114999 Bank savings accounts

115000 to 115999 Term certificates or Certificates of Deposit

116000 to 116999 Accounts receivable accounts

117000 to 117999 Other receivables

117500 GST/HST Receivable

118000 to 118900 Allowance for doubtful accounts

120000 Work-in-Progress

121000 to 139999 Inventory accounts

147000 to 149999 Prepaid expenses

150000 to 169999 Investments

152000 Sub-Account for Investments

Capital Assets

170000 to 187999 Capital assets

188000 to 189999 Accumulated depreciation

Other Assets

190000 & 191099 Capital expenditures

190800 & 191899 Accumulated amortization

190000 & 196999 Resource accounts

198000 to 199999 Other Long-Term Assets

Current Liabilities

202000 to 202999 Accounts payable accounts

234000 to 259899 Accrued Liabilities, Deferred Income

259900 Current Portion of Long-Term

299900 Less: Current Portion.

Long-Term Liabilities

260000 to 294999 Loans using 260000 to 260999 for long-term bank loans, 261000 to 269999 for finance contracts, 270000 to 286999 for other long-term loans and 287000 to 294999 for mortgages.

295000 to 297999 Shareholders loans, created in the same order as the shareholder files in company master files section.

Equity or Capital

351000 to 356999 Capital and drawing accounts for unincorporated companies. Capital accounts start at 351000 and are incremented by 200. Drawing accounts start at 351100 and increment by 200. They must be in the same order as created in the company master file.

363000 Retained earnings for corporations

364000 Dividends

370000 & 375000 Earned surplus (deficit) of a society

380000 Prior Period Adjustments

399000 Summary Account

Sales Accounts

400000 to 419999 Printed individually on statements

420000 to 479999 Sales on non-detailed statements

480000 to 499999 Printed individually on statements

Cost of Sales Accounts

500000 to 519999 Printed individually on statements

520000 to 579999 Direct Cost Of Sales on non-detailed

580000 to 599999 Printed individually on statements

Operating Expenses Accounts

600000 to 699999 Printed individually on statements

Other Revenue Accounts

700000 to 799999 Printed individually on statements

Other Expense Accounts

898900 to 898999 Printed individually on statements

899000 Provision for corporate tax. All amounts set up for corporate tax must go through this account

Departments may be set up in the income and expense accounts. The last two digits of an account number refer to the department. To set up sub-income and expense statements, designate all account numbers for the respective department with ‘01’ to ‘99’. General accounts will continue to end with ‘00’ but each department will end with its specific number. When not using departments all account numbers in the income and expense section should end with ‘00’.

To have the system properly deal with GST/HST calculations on the GST/HST verification when using the detailed method, create two separate accounts. An example would be for Office Expenses of 658000 for the account that is flagged as dealing with GST and 658100 for Office Expenses – GST Exempt. There can also be an account created for HST such as 658200 for non-participating provinces. In the case of provinces like Ontario, 658000 would be flagged to be HST and 6582 for purchases involving GST only as from a non-participating province. The accounts will be combined on non-detailed statements but would be kept separate for the GST verification.

Setting up Existing Companies

When setting up an existing company, the prior year balances must be set up in the general ledger. For accountants, this can be done using the Trial Balance Input. For other users, edit the general ledger for the current year being setup and enter the prior year amounts beside the previous year date. The difference between revenue and expenses must be debited or credited to account #999999, the transfer account. The retained earnings account will be the final balance shown on the previous year balance sheet.

Ledger Headings

JADE provides a default list of headings which may be edited to suit the user. The list is as outlined below:

ASSETS 100000 - 199999

Current Assets 100000 - 149999

Investments 150000 - 169999

Capital Assets 170000 - 189999

Other Assets 190000 - 199999

LIABILITIES 200000 - 299999

Current Liabilities 200000 - 259999

Long-Term Liabilities 260000 - 299999

EQUITY 300000 - 399999

REVENUE 400000 - 499999

COST OF SALES 500000 - 599999

OPERATING EXPENSES 600000 - 699999

OTHER REVENUE 700000 - 799999

OTHER EXPENSES 800000 – 999999

Payee Prompt Files

Payee prompts are used in entering or creating cheques simply to save having to re-type a payee name each time a cheque is issued to the same payee. Instead, simply select or type the payee number. The payee name or address may be edited at any time. These may be considered as quick payables and are separate from vendor files which are the actual accounts payable or trade payables.

1. The system automatically assigns the next record number when adding a new payee. Otherwise, input payee's account number. Click the down arrow to select a payee from the list or type in the account number if it is known.

2. Enter the name of the payee. The payee name will be used by the system for quick input of cheques and is available for labels and envelopes.

3. Enter the first line of the payee’s address keeping in mind it will be used on a cheque, an envelope or a label.

4. Enter the second line of the payee's address keeping in mind it will be used on a cheque, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the payee's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the telephone number of the payee. Telephone numbers should be input including area code as complete numbers not including spaces or brackets.

7. Enter the fax number of the payee. Fax numbers should be input including area code as complete numbers not including spaces or brackets.

8. Enter the email address of the payee for current reference and future use.

9. Enter the name of the contact individual.

10. Enter the default general ledger account of the payee or select the account from the drop-down list. This number indicates the expense or other general ledger account and may be changed during data input. When entering a cheque and the account to be used is not the default account and the default is not to be changed, proceed to the next input line and record the correct general ledger account. To change the default account, replace the existing account with a new general ledger account.

11. Indicate whether the payee is a business or not and, if so, record the business number of a corporation or a social insurance number if personal.

12. To pay a specific payee account with “Net Beans” for direct deposit to the payees bank account, enter the banking information for the payee to be used in making payment. If not needed, please leave blank.

Recipient Files

Recipient files may be added or edited at any time and are in fact vendor files, but they are used for preparation of T5 slips for payment of interest, dividends and other such items located on T5 slips.

1. Input recipient's account number. The system automatically assigns the next record number when adding a new recipient. Click the down arrow to select a recipient from the attached list.

2. Enter the name of the recipient. The recipient name will be used by the system for quick input of cheques and is available for labels and envelopes.

3. Enter the first line of the recipient's address keeping in mind it will be used on a cheque, an envelope or a label.

4. Enter the second line of the recipient's address keeping in mind it will be used on a cheque, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the recipient's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the general ledger group account for this recipient. Accounts payable group accounts range from 202000 to 202900 but only the accounts that exist in the general ledger are valid.

7. Enter the telephone number of the recipient. Telephone numbers should be input including area code as complete numbers not including spaces or brackets.

8. Enter the fax number of the recipient. Fax numbers should be input including area code as complete numbers not including spaces or brackets.

9. If required, enter a file number that can be referenced to a lawyer's file for use in tracking items paid by an estate.

10. Input the year the T5 slip is to be issued for.

11. Enter the actual amount of dividends to be included on the T5 slip. The system will automatically calculate the taxable portion and the tax credit available.

12. The taxable amount of the dividend amount entered in box #10, calculated automatically.

13. The tax credit amount of the taxable dividend amount entered in box #11, calculated automatically.

14. Enter the amount of interest earned from Canadian sources.

15. Enter the amount for any other income from Canadian sources.

16. Enter the amount for any foreign income.

17. Enter amount of foreign income tax paid.

18. Record any royalties received from Canadian sources.

19. Record capital gains on dividends.

20. This amount is the earnings part of a general annuity.

21. This amount is included in the total royalty payments in box #17. The recipient may be able to claim 25% of the amount in box #20 as a resource allowance deduction.

22. The code in this box indicates that this slip is the original (0), or that it is an amended slip (1).

23. If the recipient is an individual, enter the social insurance number otherwise enter the recipient's business number.

24. The code in this box indicates if the amount was paid to an individual (1); a joint account (2); a corporation (3); an association, trust, club, or other (4); or a government (5).

25. Indicate the currency type used in the preparation of this T5 slip.

26. To pay a specific recipient account with “Net Beans” for direct deposit to the recipient bank account, enter the banking information for the recipient to be used in making payment. Again, if this will not be used, please leave blank.

Vendor Files

Vendor files may be added or edited at any time.

1. The system automatically assigns the next record number when adding a new vendor. Input vendor's account number. Click the down arrow to select a vendor from the attached list.

2. Enter the name of the vendor. The vendor name will be used by the system for quick input of cheques and is available for labels and envelopes.

3. Enter the first line of the vendor's address keeping in mind it will be used on a cheque, an envelope or a label.

4. Enter the second line of the vendor's address keeping in mind it will be used on a cheque, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the vendor's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the general ledger group account for this vendor. Accounts payable group accounts range from 202000 to 202900 but only the accounts that exist in the general ledger are valid. Trade payables will be 202000 and others could be specified such as 202100 for employees payable, 202200 for US payables if the users wishes to divide up the vendors or leave them all in 202000 only.

7. Enter the telephone number of the vendor. Telephone numbers should be input including area code as complete numbers not including spaces or brackets.

8. Enter the fax number of the vendor. Fax numbers should be input including area code as complete numbers not including spaces or brackets.

9. If required, enter a file number that can be referenced to a lawyer's file for use in tracking items paid by an estate.

10. Enter the email address of the vendor for current reference and future use.

11. Enter the name of the contact individual.

12. Use only to set up previous year end aging balance for this vendor. Record a credit as a whole number or a debit as a minus number. To change these amounts, if necessary, the 'Prior Year' must be unlocked. The system will automatically re-age the year's activity if the prior year is changed.

13. Use only to set up second previous year balance for this vendor. Record a credit as a whole number or a debit as a minus number.

14. Press F6 to set up individual unpaid invoices or enter the total amount 30 days past due. Record a credit as a whole number or a debit as a minus number.

15. Enter the total amount 60 days past due. Record a credit as a whole number or a debit as a minus number.

16. Enter the total amount 90 days past due. Record a credit as a whole number or a debit as a minus number.

17. Enter the total amount 120 days past due. Record a credit as a whole number or a debit as a minus number.

18. Enter the total amount greater than 120 days past due. Record a credit as a whole number or a debit as a minus number.

19. Indicate whether the vendor is a corporation or not. This will allow validation of the business number or social insurance number in the next field.

20. Input 15-digit Business Number, ONLY for valid construction sub-contract vendors.

21. Input social insurance number, ONLY for valid construction sub-contract vendors. Social insurance numbers are verified.

22. Enter the amount paid to this vendor during the fiscal year. This is required only for qualifying construction sub-contractors in filing the government T5018 form.

23. Enter the cell number of the vendor. Cell numbers should be input including area code as complete numbers not including spaces or brackets.

24. Input the GST/HST number for the vendor.

25. If dealing with sub-contract individuals or corporations it is advisable to obtain the Workers' Compensation Board account number for insurance purposes or filing of reports. Input the number if required.

26. The default aging period is the current fiscal year end, however, it is possible to check any prior years, if the bookkeeping was completed using this software.

27. The age amounts shown reflect the current age amounts. To change the prior year figures, click prior year unlock option and input the aging balances for the beginning of the year covering 30 to 150 days and over. Once the correct balances are input, click on lock to save and re-age the current year.

28. To pay a specific vendor account with “Net Beans” for direct deposit to the vendors bank account, enter the banking information for the vendor to be used in making payment. Leave this section blank if not used.

Master Receivable File

This information is accessible through the main program Company Master File and can only edited if the 'Sub Account Configuration' of the 'Company Information' has been defined allowing accounts receivable access.

The system allows for ten separate sub ledgers for accounts receivable and a different company name for each. The default is the first and is usually the same as the company's registered name but does not have to be. A pick list provides for editing or selection of the names. A division name can also be set up if necessary.

1. The year end date for accounts receivable is the same as general ledger except where the accounts receivable has continued into the next fiscal year. The system handles this date, but if it necessary to change, contact JADE.

2. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you require the company's name be printed on invoices or register and (N)o if you have pre-printed forms.

3. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you require the company's name be printed on statements and (N)o if you have pre-printed statements.

4. Press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you require the company's name be printed on receipts and (N)o if you have pre-printed receipts.

5. To restrict the possible input of the same invoice more than once on the system, press alt-down arrow or click on the drop-down arrow to select from the options list, or type (Y)es if you wish to have the system track invoices to restrict duplications. This will create a very large file after many invoices but you can clear the file and start again by typing (C)lear.

6. Record the amount, if any, you wish to have as a default service charge rate. It will show up on every account created but the individual customer's rate may be changed at any time.

7. If you wish to have a minimum charge to over-ride the calculation above 20 cents and below the minimum charge, indicate the amount.

8. The system provides a default account to which service charges will be posted and is necessary because the system automatically makes the entries to this account. Input the account number the system will use to record service charges calculated. The default has been set as 493000.

9. Input the company GST business account number provided by CCRA. This number is verified by the system.

10. Define whether the company is using the Quick or Detailed Method of GST filing. If using the Quick Method, enter '3' or '4' if using the Detailed Method.

11. If the Quick Method is being used, indicate the rate used by the company as '5' or '2'.

12. If the Quick Method is method of filing used by the company, enter the general ledger sales account that has been flagged as a GST account.

13. Press alt-down arrow or click on the drop-down arrow to edit the list of accounts receivable sub account headings. The first one is the default.

14. If the system is to be used to create the accounts receivable invoices, click on the box and the system will bring up the invoice defaults to be edited by the user. These defaults can also be changed when actually printing invoices.

Invoice Register Prompts

This routine allows for setting up default quick codes for creating accounts receivable invoices. Instead of typing the same information for each invoice each time the customer is invoiced, simply create a 2 to 5-digit code along with the general ledger account, if necessary, the charge for the service, if necessary, and the text for the line. Continue with as many lines as required to a maximum of 250 lines. These may be changed at any time.

1. Type a code up to 5 characters long, easy for you to remember which will save time typing the full account number, amount and/or text to the right.

2. Enter, if necessary, the default general ledger account to be used by the system for the code entered to the left.

3. Enter, if necessary, the default amount to be used by the system when the code the left is used.

4. Type detailed text to be used by the system in reference to the code set up in the first column of this line.

Accounts Receivable Monthly Reports

This routine allows for indicating which of the monthly reports require to be printed for accounts receivable covering the current period. A list of reports is provided providing the user the option to select which one to print.

1. Select (Y)es or (N)o from drop down list or type (Y)es or (N)o to have this report printed.

2. Indicate (Y)es To print statements for accounts that have activity but have zero balances.

3. While entering invoices, have the system default to the previous general ledger accounts used by flagging (Y)es. If using the accounts receivable prompts, flag as (N)o.

Customer Files

Customer files may be added or edited at any time.

1. Press alt-down arrow or click on the drop-down arrow to select from an alphabetical list of customers, type the customer's account number, or click on the check box to the right to add a new customer.

2. Enter the name of the customer as it would appear on a statement, an envelope or a label addressed to the customer.

3. Enter the first line of the customer's address keeping in mind it will be used on a statement, an envelope or a label.

4. Enter the second line of the customer's address keeping in mind it will be used on a statement, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the customer's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the customer category. The category consists of the general ledger account numbers from 116000 to 116900 incremented by 100. This allows separate sub-ledgers for receivable accounts.

7. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

8. This can be a file number used to create some code used to identify the customer in addition to the customer number.

9. Press alt-down arrow or click on the drop-down arrow to create or edit specific details about the invoice including the shipping address, special notes or freight details, the sales person and terms, example net 30 days and 2% in 10 days.

10. Enter the email address of the customer for current reference and future use.

11. Record the year end date of the customer, if required. This is used particularly by accountants in handling their clients for date requirements in filing tax returns and related schedules.

12. Enter the name of the contact individual.

13. Enter the credit limit, if this feature is to be used.

14. Enter the service charge rate to be used for this customer in calculation of service charges.

15. Press alt-down arrow or click on the drop-down arrow to select the terms for this customer.

16. The aged amounts and activity for each period of the year are listed. Press alt-down arrow or click on the drop-down arrow to select a different year. Only the active year will be available.

17. The date indicates the date this account was included in the doubtful accounts. It would normally be set up at year end to provide a listing of all the accounts included in doubtful accounts.

18. To pay a specific customer account with “Net Beans” for direct deposit to the customer’s bank account, enter the banking information for the customer to be used in making payment. Leave this blank if not being used.

19. If a new account is being added to a customer list for an accounting firm, once the file is saved and the user selects cancel, the system asks whether the users wished to immediately create the new account for the client of the accounting firm using the code and receivable information to create the new client file.

Capital Asset Files

The ideal situation would be that you know all the individual capital assets of the company you are prepared to do, when they were purchased, what the original cost was and what the accumulated depreciation and book value are to date. Dream on! The only time that this information is readily available is for new companies and for companies that took the time to keep track of this information.

Capital assets may be added or edited at any time and are grouped in classes and categories. The class is represented by the class assigned by Canada Revenue Agency. The category, however, represents separate groups of the same class such as 'Office Equipment' and 'Shop Equipment'. These are both 'Class 8' for tax purposes but are recorded separately for financial purposes.

To add a new capital asset, follow the following steps:

1. Enter the correct Class in accordance with government regulations. A list of classes and categories is available by pressing the down arrow in these fields.

2. Enter the Category which is also indicated on the pick list of classes and categories. Once the class and category are defined, the system will automatically show the description line based on the class and what category. If the class or category is incorrect, simply backspace and input the correct Class and/or Category.

3. Type a brief description of the asset, such as name and serial number.

4. Record the original cost. This amount does NOT include the GST/HST.

5. If the asset qualified for and an investment tax credit was claimed, record the amount claimed.

6. Record the accumulated depreciation to previous year end which is zero if this is an asset purchased in the current fiscal year. The book value will be automatically calculated and displayed.

7. Record the date of purchase as ('DDMMYYYY'). A valid date is ABSOLUTELY necessary, but if the exact date is unknown, the date used must at least fall within the fiscal year the asset was purchased.

8. Indicate whether GST/HST was involved with the purchase of the asset. This is necessary because based on this default, the asset will or will not be used in the verification of GST/HST.

9. If the asset is or has been sold, enter the date of the sale. Again, if the actual date of sale is unknown, the date used must at lease fall within the fiscal year that the sale took place.

10. If the asset was sold, enter the amount received from the sale which in some cases will be the trade-in value. This amount also will not include the GST/HST collected. To dispose of an asset which is scrap and has no sale value, it is recommended that the asset be sold at book value and this value be recorded in the general ledger as a cost to supplies or some related expense account. To sell the asset for less than the book value would create a capital loss and in the case of scrap this is not the case.

11. Recaptured depreciation, capital loss and/or capital gain are automatically calculated with the input of the sale amount.

12. It is possible to keep a record of the fair market value of the asset and the date the fair market value was placed on the asset. This information would be good to have for banking purposes or in calculating the value of the business. It is not necessary, however, to set up this information if you wish not to bother.

13. The current year depreciation is the depreciation calculated by the program but it may be edited if necessary. Remember, however, changing this figure will change the amount of depreciation to be claimed on this asset for the fiscal period and the report 'Schedule of Depreciation' must be reprinted to update other files within the system.

14. Delete, should be (N)o except in the case of the sale of 100% of an asset that you want to set up that was sold in some previous fiscal year. When running the year end function, any assets sold in the amount of 100% in the current fiscal year, will be updated automatically to read (Y)es.

15. If only a portion of the asset is sold such as a company selling a portion of its ownership in a building, enter (Y)es; otherwise enter (N)o.

16. The same is true as for the percentage sold, enter the percentage rate as a whole rate such as 100, 50, 25 or 0. If an asset is sold in its entirety enter '100'.If the asset is not sold then enter '0'.

17. The amount for adjustment is to be used only in the following way. For instance, a building was built in 1997 for $25,500.00 and was recorded as such at that time. In 1998, some additional costs were incurred in completing the building that should be capitalized, or it was found that several invoices were charged to 'Repairs and Maintenance' in 1997 that has to be allocated to Capital Assets. The amounts of these adjustments would be recorded as adjustments; they would not be added directly to the original cost and book value. The system will automatically do this in the year end function.

18. If the asset being added it a capital lease, indicate (Y)es from the pick list of the combo box to the right of 'Capital Lease'. In addition, if a deposit was made on the capital lease, indicate the amount of the deposit. If GST or HST has been flagged above, the amount of the deposit will be included on the GST Verification Report but not the original cost of the capital lease.

19. Indicate whether depreciation will be calculated on a diminishing balance basis or on a straight-line basis. The system defaults to diminishing balance basis but, can be changed by entering the number of years for straight-line.

20. Flag the asset if it qualified as a section 85 roll-over item.

21. Input the general ledger account or press the F5 function key or click on the drop-down arrow for a list of accounts that this asset is associated with. This account is used by the system when automatically saving a journal entry for a new asset or for an asset that is sold or in doing automatic saving of amortization.

22. The system allows for a note pad for each individual asset and allows up to 3 lines of text.

The entry can now be saved unless there are changes still to be made. When saved, the system will update all required files so that, if there is a power failure or some other interruption, you need only go through the same steps to continue adding or editing asset files.

Continue to add or change asset files until you have all capital assets on the system. This is the best way to set up capital assets for an existing company to the end of the prior year but it is best to add and dispose of assets in the current year while recording the transactions whether in the cheque register, general journal, purchase journal or other input journals.

Master Payroll Files

Master File

This program allows you to set up the information about the company for payroll. If the company is using more that just the payroll systems of the JADE Software Systems suite of programs, most of this information will already be completed from the general ledger master file.

1. Record the company's name. It will be capitalized but the system will automatically show it in upper and lower case where needed.

2. Keep in mind that incorporated companies described as operating as, can record the trade name here and on the next line, type 'Division of Corporate Name' or record the 'Corporation Name' here and on the next line, type 'Operating as Trade Name'.

3. Enter the full address of the company because it will appear on multiple forms. Enter the province, state or territory in which the company is located. Press alt-down arrow or click on the drop-down arrow to select the correct province.

4. Enter the postal code of the company or society. The postal code will automatically capitalize but must be input as 'LNL NLN'.

5. Record the telephone, facsimile and cellular numbers including area code as complete numbers not including spaces or brackets.

6. Record also, the contact person and telephone number to allow quick access to the individual to contact when necessary. This information may be changed at any time. For the purpose of electronically filing T4 and T4A slips, it is necessary to include the email address for the company or contact person. If no email address is entered, the accounting firm's email address will be used by the system in filing these slips.

7. The payroll's beginning and year end dates will be January 1st and December 31st. They should NOT be changed, however, if necessary the date must be proceeded with 9 as 901012008 or 931122008 To change it. The 9 represents a place holder to restrict accidental change of these dates.

8. Indicate whether the payroll is integrated with the general ledger. If (Y)es, each time an employee is paid, the system creates a journal entry for the period in which the payment occurs. This eliminates the need to enter manually any transfer entry from the payroll system to the general ledger system. If no, then this step is simply skipped by the system.

9. Select (Y)es if cheques are to be actually printed. Each time an employee is paid and the entry is saved, a cheque is printed with all the details of the payment instead of issuing a pay slip. It also allows the system to save both the journal entry for with the payroll transactions and the cheque in the disbursements journal.

10. If the hours for most employees are the same week to week, indicate (Y)es for default hours because is simplifies input because the number of hours does not have to be typed in each time. The default amounts can be overwritten at any time.

11. Select the remittance type for the company, quarterly, monthly, threshold 1, threshold 2, or annual.

12. The number of days worked by an employee is used in automatically calculating statutory holiday pay. Some companies wish to use the field for showing the number shifts such as a restaurant and not use the statutory holiday calculation. Indicate (N)o for these companies.

13. If doing direct deposit of employee's wages, using a service such as “Net Beans” it is necessary to record the company's bank account toe be used and the merchant account provided by them.

Remittance Accounts

Jurisdiction

Be sure you know whether the company is under federal or provincial jurisdiction as this affects how vacation pay is calculated. In most cases, it will be provincial however, in the case of aviation companies or trucking companies who require a federal operating license, federal jurisdiction applies.

Registered Pension Plan

The default of the system has been set for a company WITHOUT a registered pension plan. If your company has a registered pension plan, complete the steps below. Usually the employee deduction for the pension plan is a percentage of his/her income, up to a maximum contribution per year. The system has provision for this. Some companies, however, have a few employees who wish to have a SET DOLLAR AMOUNT deducted from each pay until they reach the maximum. Should this be the case, it will be necessary to enter the regular pay period deduction, for the respective employee, while adding or editing the employee file. Any regular dollar amount being deducted will override the percentage calculation but not the maximum annual contribution. Be sure to enter the plan number which will be printed on the employee's T4 slip.

1. Record the percentage rate used by the company if it has a registered pension plan. An amount of 3% would be entered as 3. or 300 and would be displayed as 3.00%.

2. Enter the maximum which may be deposited into the registered pension plan for the year.

3. Record the registration number of the registered pension plan.

Union Dues - Hourly Rate

In some instances, the amount of Union dues paid by each employee is based not only on a fixed amount, but also on an hourly rate as well. For those companies who fall under this type, enter the rate per hour used by the company in calculating the extra amount to be deducted from the employee for union dues.

Remittances

Enter the details of the employer’s payroll remittance accounts. The system has been set up to accept four separate accounts for regular payroll accounts and one for workers who will be issued a T4A slip or a T4PS slip.

1. Record the federal payroll account number of the first division of the company. For most companies this will be the only number they have.

2. This amount reflects the amount which should have been remitted to the date of the last payroll of this account. The system updates the amount but you may have to input past pay period amounts. When paying by cheque or debit the system will request the account the payment is for and update this remittance total by the amount of the payment.

3. Record the rate used by this account for calculation of the employer's portion of UIC or IE. Most companies will be 1.4 displayed as 1.40 but some companies will have authorization for other rates.

4. Record the second federal payroll account number of the company if one exists.

5. This amount reflects the amount which should have been remitted to the date of the last payroll of this account. The system updates the amount but you may have to input past pay period amounts.

6. Record the rate used by this account for calculation of the employer's portion of UIC or IE. Must companies will be 1.4 displayed as 1.4000 but some companies will have authorization for other rates.

7. Record the third federal payroll account number of the company if one exists.

8. This amount reflects the amount which should have been remitted to the date of the last payroll of this account. The system updates the amount but you may have to input past pay period amounts.

9. Record the rate used by this account for calculation of the employer's portion of UIC or IE. Must companies will be 1.4 displayed as 1.40 but some companies will have authorization for other rates.

10. Record the fourth federal payroll account number of the company if one exists.

11. This amount reflects the amount which should have been remitted to the date of the last payroll of this account. The system updates the amount but you may have to input past pay period amounts.

12. Record the rate used by this account for calculation of the employer's portion of UIC or IE. Must companies will be 1.4 displayed as 1.40 but some companies will have authorization for other rates.

13. Record the federal payroll account number of the company used for preparation of T4A slips, if required T4A slips are prepared with this payroll system.

14. This amount reflects the amount which should have been remitted to the date of the last payroll of this account. The system updates the amount but you may have to input past pay period amounts.

Income/Deduction Names

The income section of the income/deduction names is divided into three sections; direct labour, covering all employees whose income categories are directly related to the operation of the company; office labour, covering all other types of employees except shareholders who have a category by themselves. Under each of these categories, the incomes are broken down into twenty-one different divisions each of which has an account number related to the respective account in the general ledger, as well as the name of the account and the activity year to date.

These account numbers may be edited to match the breakdown necessary in the general ledger to allow automatic posting of payroll entries if using an integrated system. Be sure to indicate the sub-ledger account if accounts receivable or accounts payable account numbers are used and the company uses sub-ledgers. Similarly, the deduction accounts have general ledger account numbers. In both cases, the sundry names for benefits and sundry deductions may be changed to meet the needs of each individual company. Also, note that there is a specific area for workers who will be issued T4A slips or T4PS slips.

1. Enter the general ledger account number the account will be posted to.

2. Enter the sub ledger account, if required by the account number to the left, for this income or deduction name.

3. Enter the name to be used in the payroll system for this income or deduction name. It may be different than the one used in the general ledger.

Employee Files

Employee Data Files

If setting up employees into Jade from another accounting software system for the first time, please refer to 'Set Up Employees', otherwise continue below.

The system allows the user to 'Add', 'Change', or 'Delete' an employee's file. The information about each employee starts first with the 'Code/No' which allows the user to number the employees in any sequence such as; '1,2,3...', '10,15,20...' or use an

Alphabetical input such as the employee's initials. This will not change from year to year even though the payroll files will be purged at year end clearing all selected employees terminated. This area is only available when the employee file is created because the code cannot be changed once it has been created and the employee has been paid using the system.

1. Enter employee number or code (possibly initials), up to 5 characters in length.

2. Enter the social insurance number of this employee. Social insurance numbers are input numerically without spaces or dashes and are verified as to whether they are valid. It is extremely important to get the social insurance number as it must be recorded on any T4 or T4A slip as required by Canada Revenue Agency. If the number is not demanded from the employee and the employee leaves, it may not be possible to get it creating a problem for the employer. It is, also, not possible to complete a record of employment without it.

3. Enter employee's surname which will be printed on all cheques, pay slips and T4 slips.

4. Enter employee's first name which will be printed on all cheques, pay slips and T4 slips.

5. Enter employee's current street address to which cheques or T4 slips may be sent.

6. Enter the town or city in which the employee currently resides.

7. Enter the province this employee currently resides in or press alt-down arrow, click on the drop-down arrow to select the province from the pick list.

8. Enter the postal code of the above address for the employee. Postal codes are essential for electronic filing of T4 and T4A slips.

9. Enter employee's telephone number. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

10. Because the system allows for general ledger accounts which have sub accounts and in many company’s employees charge items in the normal course of business, later to have the company deduct the payments from their payroll, it is necessary for such employees to have an accounts receivable sub-account number to allow the system to integrate payroll deductions to the accounts receivable sub-ledger.

11. For companies that must carry workers' compensation for their employees, an annual return must be filed showing a breakdown of employees in different categories. To simplify this, a report may be printed showing the total wages under each category. To do this, however, each employee must have the relative category number included in the employee file.

12. Indicate by a (Y)es or (N)o answer as to whether this employee is a union employee or not. If the company has some union and some non-union employees, this will allow the system to select the proper routine in calculating deductions. If the employee is a union employee and union dues are calculated as a percentage of gross pay, enter the percentage to be used for calculation of union dues by this employee.

13. The company may have up to four different Canada Revenue Agency payroll account numbers. Indicate which this employee belongs to. For employees, for which, only T4A slips will be issued, select 5. Press alt-down arrow, click on the drop-down arrow to select the proper account from the pick list.

14. To allow the company to print different report groupings, a user defined number, user code is available with the number available up to eight characters in length.

15. Enter employee's occupation which will be used on Records of Employment as well as several other reports.

16. Record the type of employee or worker. Select the type of employee. There are six different types available:

1. Direct Labour (504000)

2. Office Labour (604000)

3. Shareholders (802000)

4. Commission (Must fill out TD1X form)

5. Self-employed Commissions (T4A type)

6. Employee Profit Sharing (T4PS type)

1. Enter employee's birth date. If not available, enter '30021980' for employees over 18 and '30022010' for employees under 18. The system will recognize the dates in calculating Canada Pension but will also recognize that the date being used is not valid and must be corrected as soon as possible.

2. Press alt-down arrow, click on the drop-down arrow to select the province of employment to have the proper tax rates applied by the system. This is an important selection because the rate and amount of tax withheld is based on the tax rates of each province.

3. Enter employee's initial starting date and starting date.

The initial start date it the first date the employee worked for the company. The starting date is normally the same, however, in instances where the employee is terminated and rehired creating an interruption in earnings such as maternity or education, the initial start date will remain the same as when the employee first started employment not the new starting date.

If these dates are not available, use approximate dates until actual dates are obtained because vacation pay rates can be affected if no dates are recorded.

4. The termination date is generated by the system in the vacation pay section when the employee is defined as terminated and the date is recorded. If for any reason, the vacation pay is completed but the employee is not terminated because it is unknown at the time, it is possible to go to the function of editing employees and recording the termination date.

When the employee is to be rehired, the termination date field must be cleared and a new starting date recorded. Click on the check box to re-hire an employee and follow the instructions.

5. Press alt-down arrow, click on the drop-down arrow to access listing of options for pay periods available on the system. The system handles six different pay period types as listed below. Each of theses types is tracked separately within the system allowing for multiple pay period types within one company.

1. Annual Payroll

2. Ten Monthly Periods

3. Monthly Pay Periods

4. Semi-monthly Pay Periods

5. Bi-weekly Pay Periods

6. Weekly Pay Periods

1. Indicate by (Y)es or (N)o as to whether the employee is paying into a registered pension plan through the company.

2. Press F6, press alt-down arrow, or click on the drop-down arrow to access detailed information about the TD1 and TD1X codes and limits. Fill in the information as shown on the form(s) provided by the employee. The system will show the TD1 code for the employee, but it uses the amount in the calculation of tax. For years after 2000, the system proves both federal and provincial forms. The provincial form is based on the province of employment.

3. Select the minimum wage category. Each province has its own regulations but the system has the minimum wage rates set up for each so that based on this selection will warn the user if recording an amount less than the minimum rate allowed.

4. Input (N)ormal or (E)xempt for the deduction of Canada Pension Plan premiums for the employee. This does not refer to the age restrictions, the employee’s date of birth will handle that. This question refers more to employees who are collecting a Canada Pension who will no longer pay premiums.

5. Shareholders owning more than forty percent of the shares of a company will be exempt from paying employment insurance premiums as well as individuals who have reached the age limit. In addition, employees related to the shareholder may also be exempt for various reasons. It is advisable to obtain a ruling from Canada Revenue Agency in regard to these employees.

6. Contributory Earnings used in calculating Canada Pension and Insurable Earnings used in calculating Employment Insurance are amounts updated by the system with each payroll completed for the employee. Nether amount can exceed gross pay.

7. Define whether the employee is a construction worker or not. Construction workers generally receive 9.6% vacation by since they do not receive statutory holiday pay. The vacation pay amount is based on 6% and the amount of 3.6% is to cover the statutory holiday pay they do not receive directly.

8. The vacation pay rate is normally governed by the labour board, but 4.0% is normally the regular rate. In the sixth year of service, this amount increases to 6.0%. For construction employees, the regular rate is 9.6% because construction employees do not qualify for statutory holiday pay. The increased vacation pay rate is designed to cover the statutory holiday pay and vacation pay in one figure. Again, provinces have their own guidelines to be used and if in question, check with the labour board of the province in question before proceeding.

9. Contributory and Insurable Earnings are updated from each payroll entered but can also be changed if setting up yearly totals from another system or from a payroll prepared by hand. In this case, the gross pay and deductions must be entered first before trying to change these figures. (see Income, Deductions and Balances Forward below)

10. The pension adjustment is a figure supplied by the insurance company handling the registered pension plan that deals with the amount affecting the limit of RRSP the employee is able to invest in.

11. The system allows for five separate hourly rates for the employees. Normally an employee has only one rate, however, in certain fields an employee could be paid one rate for one type of service and other rate for other types of services.

12. To pay a specific employee with “Net Beans” for direct deposit to the employee’s bank account, enter the banking information for the employee to be used in making payment. Please leave this section blank if not used.

13. Indicate whether to include the pay slip in the listing. When printing pay slips to be given or emailed to a company this response will allow or disallow the pay slip of certain individuals to be excluded from the list. This is handy when providing a list of pay slips of the employees to the company office and excluding the owner's pay slip for privacy purposes.

Income, Deductions and Balances Forward

The system provides a list of income and deduction accounts based on the type of employee being created or edited.

1. The first column is the pay period column. Input any defaults for each pay period such as amount of basic salary, benefits, advances or deductions. These amounts may be over-written during the processing of the payroll without affecting these defaults. Any amount recorded in the pay period column for income tax will be added to the actual calculation of tax for the period. This is used for individuals who wish to have additional tax withheld from the payroll.

• The basic salary, if any, can be input but the user can override the figure while doing payroll transactions. In the case of taxable benefits there are a number of things to keep in mind.

• 1. If the company is paying 100% of the taxable benefit, record the 100% in the income section for the employee and as a deduction, 100% which is the amount deducted back off that was added.

• 2. If the company is paying 50% of the taxable benefit, record the 50% in the income section for the employee and as a deduction, 100% which is the 50% deducted back off that was added plus the 50% that the employee is paying personally.

• 3. If the employee is paying 100% of the benefit, record the amount only as a deduction.

• In the case of statutory holidays, the actual amount must be calculated when doing the payroll transactions.

• There are five other sundry income categories available which are defined in the company master file by the user.

1. The second column represents the accumulation of each pay period amount paid in the current year. Mid year balance forward amounts may be setup before continuing with actual payrolls or year-to-date totals may be set up to prepare T4 slips without completing any payrolls using the system. This column is cleared off before a new year is started.

• For taxes, should the employee wish to have additional tax deducted, record the amount in the pay period column under income tax. This amount will be added each time to the actual tax calculation. The user can override this amount while doing payroll transactions.

• Canada Pension Plan and Employment Insurance Premiums can not be changed when doing the payroll transactions because they are automatic calculations based on government guidelines.

• Registered pension plan and registered retirement pension plan deductions are deducted from taxable income before the calculation of tax is completed.

• There are ten sundry deduction accounts which the user can edit in the master company file.

1. The last column represents the accumulation of each pay period amount for vacation pay purposes and will automatically be reduced when amounts of vacation pay are paid. Balance forward amounts should be set up but the amounts may be edited at any time if necessary. The balance forward amounts do not get cleared off at year end, only when vacation pay is paid. It is necessary to pay employees vacation pay and not just their regular pay when taking holidays. To simply pay the salary as normal will not reduce the accumulated vacation pay figures creating a problem when and if the employee leaves.

Set up Employees

This function works the same as adding employees in the function above, however, it is also used to include the year-to-date figures of employees carried forward from another accounting software system to JADE Software as it allows the user to input the income and deductions that need to be carried forward for preparation of T4 and T4A slips at year end as well as carrying forward gross amounts of unpaid vacation pay amounts for each employee.

Job Cost Files

Job cost files can be added or changed using the edit routine. Job numbers are added automatically by the system and cannot be changed.

1. Input job cost account number. Click the down arrow to select a job cost account from the attached list.

2. Input a user defined code, if desirable, used to identify the jobs by their code numbers.

3. Input a description of the job which should be unique to allow identification of the job within a list.

4. The last input date and the number of entries is handled by the system and is shown only as a reference.

5. Indicate the sales person of the job, if desirable. Reports can be printed by sales person, if needed and tracking of commissions is possible for payroll if the sales person is set up.

6. Record the date that the job started keeping in mind that dates are entered as DDMMYYYY.

7. The completion date of the job is normally input by the system upon date of sale and MUST NOT be input until the job has been completed and posted.

The starting date and completion date are also included for reference purposes and to be used on several reports which will be available.

8. The manufacturing account refers to the general ledger account the job would be posted to once completed, but only if it is to be put into inventory. Otherwise leave this field blank.

The total revenue, costs and profit are again shown for reference only. There are numerous reports which can be printed to provide details covering a number of designated periods. Hours recorded in the payroll system for each job will allow the labour costs to accumulate based on the hourly rate of the employees involved.

Inventory Files

In the inventory system, you are allowed twenty-six departments, ninety-nine different categories with five hundred different items in each category. The departments must first be defined before adding items. Take the time to plan the departments and categories for ease of input. To access an item the department is first input as 'A, B, C... followed by the category as '01, 02, 05...' and the part number or product number. Categories must be in numeric sequence starting with '01' incremented by one up to '99'. The product number can be any alpha-numeric input up to 12 characters in length.

Once the departments and categories have been created, proceed with the inventory files.

1. Input the inventory department ranging from A to Z or press F5 or click down arrow to select from list. Press F6 to edit the names of each department.

2. Inventory categories range from 01 to 99 for each department. Input category or press F5 or click down arrow to select from list.

3. Input or change, if necessary, the description of the specific category indicated at the left.

4. Input the inventory stock number. The maximum number of characters is 12 and it refers to the number applied to the inventory item that will be used to locate it.

5. Input serial number where necessary. This will be important for tracking large items.

6. Record, where desired, the stock code provided by supplier for reference purposes.

7. Fully describe the inventory item so that it can be properly identified from similar items.

8. Input the general ledger inventory account the item is associated with. The number must exit in chart of accounts and range from 121000 to 139999. Press F5 or click down arrow to select from list.

9. Input the general ledger sales account the item is associated with. The number must exist in chart of accounts and range from 421000 to 479999. Press F5 or click down arrow to select from list.

10. The unit type refers to pounds or kilograms, inches or centimeters and many others. Input unit type or press F5 or click down arrow to select from list provided. Unit types include 'NO, LB, KG, OZ, TON, IN, FT.

11. Indicate whether the item involved GST/HST when it was purchased.

12. Input the retail price of the item, if available, because it will be used in creating invoices.

13. Input the wholesale price of the item, if it will be used.

14. Input the distributor’s price of the item, if it will be used in creating invoices.

15. Indicates the total purchases of this inventory item during the current fiscal year of the company.

16. Record the maximum number of items that should be on hand for this item. This could range from 1 to a number decided upon by the company that could be sold in a reasonable period-of-time.

17. Record the minimum number of items that should be on hand for this item. This could be zero for items that may be purchased and sold once.

18. The actual number of items on hand is handled by the system and should not be changed except when setting up opening balances.

19. The total cost of the existing inventory of this item is handled by the system through purchases and sales and should only be edited when setting up opening balances.

20. Record the last date for a sale of this inventory item. This date updated automatically by the system when a sale is made.

21. For those companies who wish to track the location of the item by bin numbers, indicate which bin number.

22. For those companies who wish to track the location of the item within the company can record the location to simplify or speed up the location of the item for sale.

23. Input the vendor number or press F5 or click the down arrow to select the number of the vendor from which the last purchase was made. This will be updated by the system as purchases are made.

24. Input the last date of when a purchase was made. This will be updated by the system as purchases are made.

25. The system can keep track of the items on order for reference purposes.

26. If an order has been placed, record the date the order was made.

27. The system can keep track of items on back order for reference purposes.

28. Record the date of purchase for this transaction. By default, the system will input the transaction date entered on the journal, but it can be changed.

29. Enter the number of items of inventory purchased. The figure is recorded to two decimal places.

30. Record the total cost of the items purchased. If the item includes GST/HST and the company is registered, DO NOT include the GST/HST as part of the inventory cost.

31. Record the date of sale for this transaction. By default, the system will input the transaction date entered on the journal, but it can be changed.

32. Enter the number of items of inventory sold. The figure is recorded to two decimal places.

33. Record the total cost of the items sold. DO NOT include GST/HST as part of the inventory sold.

34. Input the inventory stock number of an existing item or click the box to the left to allow the input of a new item.

35. Press F5 to access the routine to specify purchase or sale of inventory items.

Edit Investments

Investment files may be added or edited at any time. When adding, changing or selling an investment from within a journal entry, an automatic entry is created reflecting the purchase, sale, gain (loss) and cost of the investment. Use this edit routine to set up investments from another system. Be sure that the opening balances set up equal the general ledger before continuing with current period input. Some of the steps below will only apply to a specific type of investment.

1. When adding a new investment, the system will automatically assign the next record number. Input investment record number, select from listing by clicking on down arrow or pressing F5 or type 'A' to add new record.

2. Press F5 or click down arrow to select the 'Investment Sub Account'. This allows the user to record investments in specific groups.

3. Press F5 or click down arrow to select the 'Type' of investment. These types coincide with Canada Revenue Agency’s groupings including; Shares, Real Estate, Bonds and Debentures, Other Properties, Personal Use Properties, and Listed Personal Properties.

4. Input the name of the issuer corporation, the address or legal description, name of issuer of bond or debenture, description not including depreciable property or name or description.

5. Input the class and type of shares obtained from the corporation indicated above, the name of the city the real estate is located as well as the province the real estate is locate in and the postal code of the property as LNL NLN. If the code is not available, leave blank.

6. Input the maturity date of the bonds in DDMMYYYY format and the face amount of the bonds.

7. Select the currency type. The default is Canadian shown as 'CN'.

8. Record the date of purchase of investment as DDMMYYYY.

9. Indicate the number of shares purchased to four decimal places (example: 1105.1225 shares) or the number of units purchased to four decimal places (example: 1105.1225 units).

10. Input the price of each share or unit purchased. This amount is entered to four decimal places (example: 5.1255 dollars).

11. Input the total purchase price of the investment purchased, not including the purchase outlays.

12. Input the total outlays for the investment as part of the purchase. This would include legal cost, commissions, taxes and etc.

13. Record the date of sale of investment as DDMMYYYY. The date must be a date in the current fiscal year of the company.

14. Indicate the number of units sold to four decimal places (example: 1105.0225 units). This amount does not have to be equal to the total shares purchased. Indicate only what has been sold.

15. Indicate the number of units sold to four decimal places (example: 1105.0225 units). This amount does not have to be equal to the total items purchased. Indicate only what has been sold.

16. Input the price per share of each share sold. This amount is entered to four decimal places (example: 5.1258 dollars).

17. Input the unit price of each unit sold. This amount is entered to four decimal places (example: 5.1258 dollars).

18. Input the total sale price of the portion of the investment sold, not including the sale outlays.

19. Input the total outlays for the investment as part of the sale.

20. If desired, enter the estimated fair market value of the investment.

21. If the fair market value is entered, record the date of the fair market value calculation.

Envelopes and Labels

The system allows for the printing of several styles of envelopes and labels using a laser printer. They can be printed selectively or as a list linked to the account files of customers, vendors, payees, employees or special contacts. From the pick list of label types, a number of label types are available. If for instance, selecting the type with 30 labels to a page and indicating the number of copies, the user may print a full page of the same label. Similarly, using the same type, the user may select one label but place it any place on the page by selecting the position to start. Options are available to allow or printing of company logos on envelopes for the return address. One selection of label allows for a larger label with the company logo and name as well as the client's name and address and a note on the label such as the year. One user has used this label to print labels for folders with client's personal tax information inserted into the folder.

Sales Tax Rates and Formulas

The tax rates for GST, PST, HST and other taxes is outline for each province including the date of the last change. These rate and dates may be edited at any time, however, JADE Software Systems regularly updates this file for your convenience.

1. Indicate the GST rate for the province located to the left.

2. Where applicable, indicate the PST rate for the province located to the left.

3. Where applicable, indicate the HST rate for the province located to the left.

4. Indicate other taxes applicable to the province located to the left.

5. Record the date that the rate is applicable.

Foreign Currency Rates

The system allows for five different currency rates covering ten separate dates. These rates may be changed at any time, even daily, with the date of change recorded so that journal entries recognize the qualifying date for entries involving currency changes. The user will be prompted for the number of decimal places in the currency, allowing the system to properly calculate the Canadian equivalent. JADE Software Systems regularly updates these rates for your convenience.

1. Input a two-digit code for the currency type, such as CN for Canadian, US for United States, or MX for Mexico.

2. Input the full name of the currency as Canadian Dollars, United States Dollars, and Mexican New Pesos.

3. Record the current or year end rate of exchange including decimal point such as 1.34324 or .033343.

4. Indicate the date the rate covers such as 01012013 for the 2012 year or 01012012 for the 2011 year. If the rates are not updated each year, the system will use the latest rate available.

5. Indicate the number of decimals places required in the calculation such as 2 for Canadian and United States dollars.

Terms - A/P and A/R

The system allows for discount terms and rates which will be used by the accounts payable and the accounts receivable routines to calculate qualifying discounts. The rates may be changed or added to at anytime, however, the description once set up should not be changed because the different terms may already be used by a customer or vendor.

1. Provide short name to describe the type of discount.

2. Input the number of qualifying days that the discount will apply.

3. Record the amount of discount available, if it qualifies.

User Name and Codes

The security of the system defines a master user which default as the first user on the system. If additional users will be working with this company, have them add their name and password. The master user can then flag the sections the new user has access to as well as the hourly rate and per item rate for the user. This section of the program can not be accessed without the master user’s code. Although the master user does not need to know the other user codes, it is possible for the master user to override other user codes in case the other user is no longer available. All journal entries save the users code in the entry and many letters, working paper files and financial statement use the users code and name assigned to the code.

1. Each individual working on the system must enter his/her initials as the USER ID. Be sure the individual with the highest security is entered first. The USER ID of any user including the first file created, being the individual with the highest level of security.

1. Enter USER PASSWORD, maximum 15 characters. To delete or change user files the old code or company master code must first be input.

3. Press alt-down arrow or click on the drop-down arrow to get an access list.

4. Enter user's full name with first name followed by initials and surname.

5. Record the hourly rate this user's work will be billed out at.

6. Record the per entry rate this user's work will be billed out at.

Special Contacts

The system provides a list of special contacts such as government address and contact information and allows the user to add as many contacts as necessary. These contacts are available to the system in printing letters, envelopes and labels.

Minimum Wage Rates

Minimum wage rates have been set up for each province and will require monitoring to keep them current with government changes.

Monthly Exchange Rates

1. The system allows for the recording or five separate currency which can be selected from the listing.

2. Input the average monthly exchange rate of each currency from the Bank of Canada schedule. Rates have been set up for prior years. These rates are used in generating reports from Canadian funds to other currencies when printing the general ledger. (Check the company information under the company master file to flag the company for this type of report).

APPLICATIONS

General Ledger

Enter Journal Entries

This program will allow you to enter general journal entries with as many as 100 accounts being debited or credited in one journal entry followed by a full description of what the entry consists of.

1. The date of the entry may be changed each time or left to default on the period ending date. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

2. Each journal entry requires an entry number to identify each respective entry. Enter a journal entry number. It may be an alphabetical letter followed by a number or numeric only. The system will update this automatically from entry to entry.

3. Enter account numbers as 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. The system will check to see if there is such an account number or you will again be asked for a general ledger account number. Each time an account number is input, the system displays the current activity and year to date balance of the account.

4. If you input an account that is linked to a sub-ledger, the system will prompt for a sub-account number. Pressing F5 will provide a list of the sub-accounts. Pressing F6 at this point will provide a list of options including adding, changing and listing sub-accounts. Type (S)kip to bi-pass capital asset sub-accounts as they can be added directly in the capital asset section.

5. Should the sub-account be for a job cost file, the system will then request general ledger account for the job. This account is the account that the entry will be posted to when the job is complete. In the mean time, the entry will be entered to the work-in-progress account 120000.

6. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. For accounts payable or accounts receivable press F5 for list of outstanding invoices or F6 for other options for this column." Since journal entries require being balanced, it is possible to record debits and credits to multiple accounts with the system showing the net difference at the bottom of the column. For the last line of input the amount need to balance the transaction can be input manually or press “control enter” and have the system automatically record the debit or credit as need be.
   
   See also:

   1. Date Input

   2. Account Status

   3. Account Listings

Journal Description

Once the entry has been completed, the system allows for a full description of the entry of 15 lines of 70 characters. The text may be just typed as it will automatically wrap around from line to line. There are a number of default notes the user may select from instead of typing the description simply by clicking on the check box beside the description best suited for the entry of the description my be edited after the selection. Once the description is completed for the entry as required, click the (O)k button then then press or click on the (S)ave button.

Dollar Amounts

Dollar amounts are entered as whole numbers including the trailing zeros for which the system will divide by 100. Figures can also be entered using the period in the proper position. Therefore, an amount of 132.50 could be entered as 13250, 132.50 or 132.5 all of which would format to 132.50. Credits are entered with a minus sign in front of the amount. When entering amounts in any of the journals, the system will automatically calculate GST/HST and/or PST if the account is flagged. To override this calculation, type the amount with a zero in front of the amount as 0132.5 or in the case of a credit, 0-132.5. Also in the case of journals, pressing the F6 function key will provide a list of options such as GST/HST calculation, foreign currency change and where qualified, list invoices for payment.

Enter Cash Register

The cash register program is for the input of till register or cash register tapes and works in the same way that entering general journal entries do except that upon saving of the entry, the account numbers and descriptions do not clear off, allowing the user to simply input the amounts from the next till slip recording debits as whole number and credits with a minus in front of the amount.

1. The date of the entry may be changed each time or left to default on the period ending date. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

2. Each journal entry requires an entry number to identify each respective entry. Enter a journal entry number. It may be an alphabetical letter followed by a number or numeric only. The system will update this automatically from entry to entry.

3. Enter account numbers as 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. The system will check to see if there is such an account number or you will again be asked for a general ledger account number. Each time an account number is input, the system displays the current activity and year to date balance of the account.

4. If you input an account that is linked to a sub-ledger, the system will prompt for a sub-account number. Pressing F5 will provide a list of the sub-accounts. Pressing F6 at this point will provide a list of options including adding, changing and listing sub-accounts. Type (S)kip to bi-pass capital asset sub-accounts as they can be added directly in the capital asset section.

5. Should the sub-account be for a job cost file, the system will then request general ledger account for the job. This account is the account that the entry will be posted to when the job is complete. In the mean time, the entry will be entered to the work-in-progress account 120000.

6. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. For accounts payable or accounts receivable press F5 for list of outstanding invoices or F6 for other options for this column."

Inserting Accounts

You may wish to insert a new account number in a specific position. To do so, press 'Control I' and the system will automatically move all other accounts down one line and make space for the user to input another account.

Deleting Accounts

The same is true about deleting a particular account from the list. In the same manner, type 'Control D' and the system will automatically delete the line and move all others up one line. Please note that To delete a line, there can be no amount on the line.

See also:

1. Date Input

2. Account Status

3. Account Listings

Journal Description

Once the entry has been completed, the system allows for a full description of the entry of 15 lines of 70 characters. The text may be just typed as it will automatically wrap around from line to line. When the description is completed and the entry is as required, press or click on the (S)ave button.

Enter Standard Entries

This program will allow you to enter standard journal entries with as many as 100 accounts being debited or credited in one journal entry followed by a full description of what the entry consists of.

Adding or Changing

This program allows the user to (A)dd, (C)hange, (D)elete, or (P)ost standard entries.

1. Select the entry function of (A)dd, (C)hange, or (D)elete. When adding a new entry, the system will automatically assign the next available record number. It is this number that you will need to enter if you wish to change this entry in the future.

2. Select the item to be changed or deleted.

3. The date of the entry may be changed each time or left to default on the period ending date. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

4. Enter account numbers as 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. The system will check to see if there is such an account number or you will again be asked for a general ledger account number. Each time an account number is input, the system displays the current activity and year to date balance of the account.

5. If you input an account that is linked to a sub-ledger, the system will prompt for a sub-account number. Pressing F5 will provide a list of the sub-accounts. Pressing F6 at this point will provide a list of options including adding, changing and listing sub-accounts. Type (S)kip to bi-pass capital asset sub-accounts as they can be added directly in the capital asset section.

6. Should the sub-account be for a job cost file, the system will then request general ledger account for the job. This account is the account that the entry will be posted to when the job is complete. In the mean time, the entry will be entered to the work-in-progress account 120000.

7. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. For accounts payable or accounts receivable press F5 for list of outstanding invoices or F6 for other options for this column."

See also:

1. Date Input

2. Account Status

3. Account Listings

Journal Description

Once the entry has been completed, the system allows for a full description of the entry of 15 lines of 70 characters. The text may be just typed as it will automatically wrap around from line to line. When the description is completed and the entry is as required, press or click on the (S)ave button.

Posting Entries

Before posting the entries, be sure that all adjustments have been made from month to month as this program creates general journal entries and can only be processed once a month. For accountants, it is possible to print a “Time and Billing” sheet when positing the general ledger. First set up the defaults to be used indicating the accounting firm and its details. The “Time and Billing” can be printed at any time and can be done without posting the general ledger.

Edit or Deleting Existing Entries

Each of the journals allow the user to edit or delete previously saved entries. Based on the entry selected to edit, the system will automatically take the user to the correct journal type for the entry to be changed. Only entries in the current period may be changed, but all entries can be viewed. Only entries in the current period may be deleted, however, other entries saved in the current year may be reversed, in which case the reports printed since the original entry was made do not have to be changed because the reversal will be saved in the current period.

Print General Journal Entries

This report provides the journal entry number, date of transaction, name of general ledger account, general ledger account, sub-account, job category if necessary, and the amount. At the end of each journal entry, the complete description is shown. There are a number of options available to the user including printing the report with or without grid lines. In addition, the report defaults allow the user to select entries from prior years if the JADE Software was used.

Print Cash Register

This report shows the cash register number, date of transaction, name of general ledger account, general ledger account, sub account, job category if necessary, and the amount. The report sorts each cash register entry into date order before printing the report. This allows the user to input till register tapes in any order without being concerned about the printing order.

Print Standard Entries

This report need only be printed to update the information on file as a reference as the actual Standard Entries are posted directly to the general journal and are not saved as a separate journal.

Post/Print General Ledger

A complete detailed report of all entries made to each general ledger account. It may be printed as many times as you wish as each time the current month activity is cleared and recalculated each time you run post. It is not necessary to run this program before printing a balance sheet or an income statement as the system updates the general ledger when you end from each type of journal input. There are a number of options available in printing this report including monthly or annual report, detailed or not, with or without audit trail. For companies recording average monthly currency rates and dates, the system provides a detailed ledger showing the extensions amounts for those rates. For Accountants, a “Time and Billing” sheet can also be printed indicating the number of transactions for the period selected and can be used in preparing the invoice for the client.

Print General Ledger Trial Balance

The general ledger trial balance lists the general ledger account, tax account and where entered, an account number of a system other than JADE Software, the description of the account, and the balance debit or credit. The report list only accounts that have a balance and allows the user to select from a number of different options including printing comparative figures for two or three years.

General Ledger Monthly Reports

All reports for monthly, quarterly or annually can be printed continuously using this function instead of printing them individually as it saves time. The user is able to indicate (Y)es or (N)o for printing and the number of copies of each report required. The system will not print reports that have no data. The defaults set up will be saved when cancelling the function so the same defaults will be available for the next period. For accountants, once the reports have been printed for the clients copy, selecting the command box for 'Accountant -Select Backup Reports for Year End Working Paper File' will print a shorter list of reports to insert into the working paper file as backup.

GST/HST Verification

The report lists all revenue and expense accounts which are flagged as having GST/HST involved with them as well as any purchases or sales of capital assets located in the capital asset file. Adjustments are made in the report for meals, bad debts and deferred incomes. This list shows the total year to date. The second part of the report lists all the revenue and expense accounts that DO NOT have GST/HST flagged in their calculations as well as adjustment for meals, bad debts and deferred incomes. The final calculation on both parts should be the same. The third part of the report, allows the user to input the amount of GST/HST collected and input tax credits for the period being filed showing the carry-forward amount available for the next return. The report is only as accurate as the input being completed day to day. Any input to an account that is flagged as having GST/HST in the calculation when there was in fact no GST/HST would make this report incorrect. The system allows for both the detailed and simplified methods. This report is only available on the Professional Plus and the Business Plus versions.

1. In the description column under the Verification Sales, indicate the reason for an adjustment to revenues affecting the GST/HST.

2. Record the plus or minus the gross amount affected by GST/HST.

3. In the description column under Verification – Purchases indicate the reason for an adjustment to expenses affecting the GST/HST.

4. Indicate any extraordinary adjustment affecting GST.

5. Record the plus or minus gross amount affecting GST.

6. From the section showing the GST/HST reporting periods, input the figure from line 105 of GST/HST return for the period indicated to the left for prior periods or type in the 'Balance Carried to Next Return' under collectible. This will be the amount to be recorded on line 105 of the GST/HST return for the period indicated. The 'Balance Carried to Next Return' will now be zero ready for the next reporting period.

7. From the section showing the GST/HST reporting periods, input the figure from line 108 of GST/HST return for the period indicated to the left for prior periods or type in the 'Balance Carried to Next Return' under input tax credits. This will be the amount to be recorded on line 108 of the GST/HST return for the period indicated. The 'Balance Carried to Net Return' will not be zero ready for the next reporting period. If HST in involved, make sure the amount in excess of the GST amount is expensed and recovered from CRA.

8. The remittance form and payment form can be printed for use in mailing payments to Canada Revenue Agency when original forms are not available or it can printed just for backup documentation.

9. The general ledger accounts 117500 and 231500 should be balanced to agree with the figures outstanding for the period with any old outstanding amounts included in the 231500 account.

Bank Manager

Enter and/or Print Cheques

This program will allow you to enter cheques already written by hand from stubs or allow you to have the printer print the cheques as you process each entry. To indicate whether to print cheques or not, see 'Edit Cheque Defaults' in the cheque register program.

Change Bank Account Number

The default bank account is defined in the 'Edit Cheque Defaults' however the user can select from a pick list of bank accounts while processing cheques.

Printer Lineup of Cheques

If the actual printing of cheques has been selected, enter the defaults required to print cheques in the proper format. This outlines the margin as top or bottom and the printer selected to actual print the cheques.

When printing cheques, the details of the cheque may be printed on the stub. In the case of printing a cheque payable to a vendor, the system will show a breakdown of the invoices selected for payment but will also allow the user to type any comment on the stub. If the number of invoices being paid, exceeds the available area on the stub, the system saves the information to be printed later on plain paper to which the cheque can be attached.

Enter a Cheque

The system has been designed to enter three different types of cheques:

1. Basic Cheques - For this type of cheque, the user is required to type in the name and where necessary, the address. This information is not saved except for the one entry.

   1. Enter the name for which the cheque is being issued. This name will not be saved in the system.

   2. If printing cheques, enter the first line of the address.

   3. If printing cheques, enter the second line of the address. Include the city, province and postal code whenever possible.

   4. If printing cheques, enter the third line of the address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

   5. Select the bank account from which the cheque will be issued by using the F5 function key or clicking the down arrow.

   6. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

   7. Confirm the proper cheque number from the sub or cheque. By default, the last cheque of this account is increased by one.

   8. Enter a description of what the cheque is being issued for, if required or by choice.

   9. Enter 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options.

   10. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type 'S'kip to bi-pass capital asset sub accounts.

   11. Job categories are general ledger accounts used to allocate job costing items to different categories.

   12. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for list or F6 for options.

2. Payee Cheques - This type of cheque is similar to the basic cheque except that the name and address need only be typed the first time. The next time a cheque is issued to the same individual or company, simply enter the 'Payee Account Number' and the name and address along with a default general ledger account the entry will be posted to. The payees are called 'Payee Prompts' and are used only to save re-typing name over and over.

   1. Enter the payee's account number, type (A)dd to add a new payee, press F5 or click the down arrow for an alphabetical list, or Press 'Esc' to return to the main menu.

   2. Enter the name of the payee as it would appear on a cheque, an envelope or a label addressed to the payee.

   3. Enter the first line of the payee's address keeping in mind it will be used on a cheque, an envelope or a label.

   4. Enter the second line of the payee's address keeping in mind it will be used on a cheque, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

   5. Enter the third line of the payee's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

   6. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

   7. Enter the name of the contact individual.

   8. Enter the email address of the vendor for current reference and future use.

   9. Select the bank account from which the cheque will be issued by using the F5 function key or clicking the down arrow.

   10. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

   11. Confirm the proper cheque number from the sub or cheque. By default, the last cheque of this account is increased by one.

   12. Enter a description of what the cheque is being issued for, if required or by choice.

   13. An existing payee account has an existing default account. Enter an new 6 digit numbers with all trailing 'zeros' added by the system, if necessary, however, if the default is not to be changed, press enter and enter a new account on the next line. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options.

   14. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type 'S'kip to bi-pass capital asset sub accounts.

   15. Job categories are general ledger accounts used to allocate job costing items to different categories.

   16. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for list or F6 for options.

3. Vendor Cheques - The final type is used exclusively for printing cheques payable to vendors and will print the name and address of the vendor on the cheque which will appear in a window envelope. Payments can be paid in full against the balance forward or payments can be made against individual outstanding invoices. To do this, press the F6 function key at the amount column and pick the correct option or press F5 for a list of outstanding invoices.

   1. Enter the vendor's account number, type (A)dd or click check box to add a new vendor, press F5 or press alt-down arrow or click on the drop down arrow for an alphabetical list or vendors, or Press 'Esc' or click Cancel to close the form.

   2. Enter the name of the vendor as it would appear on a cheque, an envelope or a label addressed to the vendor.

   3. Enter the first line of the vendor's address keeping in mind it will be used on a cheque, an envelope or a label.

   4. Enter the second line of the vendor's address keeping in mind it will be used on a cheque, an envelope or a label. If city and province are entered on this line, try also to include the postal code. Note that the postal code will automatically capitalize, if typed in the proper format.

   5. Enter the third line of the vendor's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize, if typed in the proper format.

   6. Enter the vendor category. The category consists of the general ledger account numbers from 202000 to 202900 incremented by 100. This allows separate sub-ledgers for payable accounts such as trade payables, commission’s payable, and employee’s payable.

   7. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

   8. Enter the name of the contact individual.

   9. Enter the email address of the vendor for current reference and future use.

   10. Select the bank account from which the cheque will be issued by using the F5 function key or clicking the down arrow.

   11. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

   12. Confirm the proper cheque number from the sub or cheque. By default, the last cheque of this account is increased by one.

   13. This can be a file number used by lawyers or some code used to identify the vendor.

   14. Enter a description of what the cheque is being issued for, if required or by choice.

   15. The default account for accounts payable is the vendor category. For additional lines, enter 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options.

   16. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type 'S'kip to bi-pass capital asset sub accounts.

   17. Job categories are general ledger accounts used to allocate job costing items to different categories.

   18. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for list or F6 for options.

Void Cheques

In the case of a void cheque, use a basic type and enter Void as who the cheque is payable to and save the entry.

See also:

Date Input

Account Status

Account Listings

Cheque Number

General Ledger Options

General Ledger Account Prompts

Account Status

Pressing the F2 function key when dealing with vendors or customers or clicking the checkbox, will provide the status and activity of an individual account. It is possible at this point to get a detailed listing of the activity for the month or year.

Vendor Status

Indicates the date of the last payment on the account. The date can be input but it will actually be updated by the system from data input.

Indicates the fiscal year purchases. This amount is updated each time an invoice is recorded.

Indicates the date of the last invoice on the account. The date can be input but it will actually be updated by the system from data input.

Indicates the last invoice number input. The system updates this automatically based on the most current number.

Indicates the amount of the last invoice input. This is also updated automatically by the system from input.

Indicates the accounts payable category that this vendor is associated with. It can NOT be changed if there has been any activity during the past two years.

Indicates the general ledger default account used by the system when recording an invoice. The account may be changed during input.

Account Listings

At position one of the cheque register or purchase journal, or numerous other places requesting a payee, vendor or customer account, press F5 function key or click the drop down list to get an alphabetical list to select an account.

Cheque Numbers

The cheque number may be a complete numeric number or a combination of a letter followed by any number such as (A274). The system automatically updates the cheque numbers by 1 from one cheque to another, but you may override this and change the cheque number at any time. As you may change from bank account to bank account, the corresponding cheque number for the respective account is changed.

General Ledger Options

When the cursor is located under the general ledger account column, pressing the F6 function key or double clicking the mouse on the column will pop up an options window allowing the user to pick from a list of options including adding, changing, deleting, status and listing of general ledger accounts.

General Ledger Account Prompts

To speed up input and assist users with remembering account numbers, entries to payees or vendors have default general ledger account numbers so that future entries will display the default accounts previously used. For new payees and vendors, the user will have to input the account for the first time. When entering cheques to vendors, the default account is the Accounts Payable account number the vendor was created under.

Auto-Complete

Certain input fields in the system allows for auto-complete. When this function is turned on, the system will automatically complete the word being typed based on previous input. For instance, if “Go” is typed, the system will check a list of name in the data base and complete the word as “Godfrey”. If that is correct, simply press enter and continue with the next field of input. However, if after “Go” the next character is “r” then the system may change the input to “Gordon” and so on. The system uses this for names, phone numbers, address, etc, whatever the user has previously saved for this purpose.

Press F9 to save the text located in the field that has focus. The system will now have this text for future auto-complete of similar input.

Smart Capitalization

The system allows for automatic capitalization of postal codes, the first character of each word for the name and address of customers, employees, vendors, payees and others or following a period. Because it is advisable to input data in upper and lower case for a more professional look, this function makes it easier for individuals who do not have professional typing experience.

Tutor

The complete system includes a “Tutor” to help the user with field by field input. Press Ctrl-T or press the right mouse button for a list of options and click on Tutor to toggle the function on and off. A number of lines of help will appear at the bottom of the form explaining the type of input required.

Enter Deposits and Adjustments

This program allows for quick input of deposits. It can also be used to record bank charges and other transactions other than cheques such as transfers and automatic debts.

1. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

2. Enter a journal entry number. It may be an Alpha Letter followed by a number or numeric only.

3. Enter 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options.

4. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts.

5. Job categories are general ledger accounts used to allocate job costing items to different categories.

6. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for a list or F6 for options.

See also:

• Date Input

• General Ledger Options

Bank Reconciliation

Each entry to a bank account entered in the cheque register, general journal and other journals is saved in the bank reconciliation file, consisting of the date of the entry, cheque number or journal number, description and amount. The program provides a list of these items shown as (O)utstanding or in some cases, as void, deleted or postdated. The user must proceed up and down the list flagging each item as (C)lear or skip and leave as (O)utstanding for the respective bank account. Flag each of the journal entry transactions covering deposits, automatic debits and bank charges in the same fashion as cheques. At the bottom of the list under date, enter the date of the end of the period covered as (DDMMYYYY), record in the cheque number column the general ledger bank account number, type (Bank Balance) in description column, and the outstanding balance as shown on the bank statement as at the end of the period, and in the far-right column type (B) for bank balance. When all items are flagged, proceed to viewing the reconciliation on the screen. When the user is satisfied that the general ledger agrees with the reconciled bank balance, go under reports and print a hard copy on paper. To record outstanding items from periods prior to the use of the JADE Software system, enter the outstanding items as outlined below:

1. Enter the date of the cheque, deposit or sundry debit/credit. If recording the bank statement balance, enter the date from the end of the statement or the end of the period.

2. If recording a cheque on this line, enter the number of the cheque. For all other items, leave the field blank.

3. Indicate who the cheque is issued to. If this line is for the bank balance, type 'Bank Balance' simply for your reference as it is not required by the system.

4. Enter the amount of the cheque or credit as a minus amount and deposits as whole numbers. As for the bank balance from the bank statement, enter a debit as whole number and credit or overdraft as a minus amount.

5. To set up outstanding cheque and/or deposits prior to the use of the Jade system, place a (Y)es for prior period. The system will automatically record a (Y)es for the bank balance and for items carried forward from the prior year.

6. Flag the items indicating whether they are (O)utstanding, (C)leared, (P)ostdated, or (D)eleted by typing the letter shown in brackets. For the line indicating the balance from the bank statement, type (B) as a prompt for the system to recognize as the bank balance.

Print Cheque Register

This report gives you the date of each cheque, name to which it was issued, general ledger account and sub account the entry was posted to and the total of all cheques issued. There is a separate report for each bank account.

Print Deposits and Adjustments

This report provides the deposit entry number, date of transaction, name of general ledger account, general ledger account, sub account, job category if necessary, and the amount. At the end of each journal entry, the complete description is shown.

Accounts Payable

Enter Purchase Journal

This program will allow you to enter purchase invoices using the following steps:

1. Enter the vendor's account number, type (A)dd or click check box to add a new vendor, press F5 or press alt-down arrow or click on the drop down arrow for an alphabetical list or vendors, or Press 'Esc' or click Cancel to close the form. If the vendor file already exists, the system will skip the user directly to #12 below. If it is necessary to make any changes to the fields before the date, press the backspace key or click on the field with the mouse cursor.

2. Enter the name of the vendor as it would appear on a cheque, an envelope or a label addressed to the vendor.

3. Enter the first line of the vendor's address keeping in mind it will be used on a cheque, an envelope or a label.

4. Enter the second line of the vendor's address keeping in mind it will be used on a cheque, an envelope or a label. If city and province are entered on this line, try also to include the postal code. Note that the postal code will automatically capitalize, if typed in the proper format.

5. Enter the third line of the vendor's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize, if typed in the proper format.

6. Enter the vendor category. The category consists of the general ledger account numbers from 202000 to 202900 incremented by 100. This allows separate sub-ledgers for payable accounts such as trade payables, commissions payable, and employees’ payable.

7. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

8. This can be a file number used by lawyers or some code used to identify the vendor.

9. Click on drop down arrow and select from a pick list of terms, eq. net 30 days, 2% in 10 days, and 5% in 15 days. When individual invoices are paid later, this rate will help in calculating discounts.

10. Enter the email address of the vendor for current reference and future use.

11. Enter the name of the contact individual.

12. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

13. Enter the invoice number located on the vendor’s invoice. It can be alpha-numeric. If no invoice number is available, 'STMT', 'INVOICE', etc can be used. By default, the last number is increased by one.

14. Enter account numbers as 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. The system will check to see if there is such an account number or you will again be asked for a general ledger account number. Each time an account number is input, the system displays the current activity and year to date balance of the account.

15. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts. In the case of an inventory item linked to the inventory control file, see details about inventory input under inventory help.

16. Job categories are general ledger accounts used to allocate job costing items to different categories.

17. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for list or F6 for options.

See also:

• Date Input

• Account Status

• Account Listings

• General Ledger Options

• General Ledger Account Prompts

Print Purchase Journal

This report gives the company a complete list of all account payable invoices entered including the date of each invoice, invoice number, vendors name, general ledger account numbers affected and the amount posted to each. The report can be printed covering the current period or for the full year.

Print Aged Trail Balance

This report provides a list of accounts showing the name of each vendor, aged balances, phone numbers and total amount due. Based on the report default set up, the report will be printed alphabetically or numerically. This report can be printed at any time during the current period, but it will not be accurate if there are transactions already entered in future periods.

Accounts Payable Ledger

This reports provides a detailed list of activity for each account for the period covered including the name, account number, opening balance, activity whether a charge or payment and final balance. The report can be printed alphabetically or numerically covering one period or the entire year.

Alphabetical/Numerical List

This report gives you a complete list of account names in alphabetical or numerical order depending upon the defaults set up. The report can be printed simplified or detailed. The detailed report would provide a list including name, address and phone number.

Vendor Analysis and Notes

This report gives the user the name, address, phone number, total purchases for the current year, date of last invoice and other miscellaneous information. The report can be printed in alphabetic or numeric order.

Purge Vendor Files

This routine will clear continuously or select, all accounts unused beyond the time defined by the user, making them available to be used again.

Accounts Receivable

Create Invoices

The user has the option upon entering this program to create invoices involving inventory, invoices for services or other types of invoices. See Invoice Register Prompts under accounts receivable master file before continuing because it outlines the use of prompts.

Open Invoices

While entering invoices, it is possible to set up an invoice as an open invoice. An example of an open invoice is one where the invoice is created for some item or service for a customer but additional items or services can be added for the same customer anytime in the next day, week or month. So, by clicking open invoice and saving the invoice, it can later be pulled up again and new items or services added. This can be done many times until the user is satisfied that there will be no addition items for the current period. Click on the open invoice check box and make the invoice an active invoice so that it can now be printed and saved. This saves making multiple invoices to the same customer for one period.

The following steps are necessary in creating an invoice:

1. Press alt-down arrow, press F5 or click on the drop-down arrow to select from an alphabetical list of customers, type the customer's account number, or click on the check box to the right to add a new customer. If the customer file already exists, the system will skip directly #10 below. Should it be necessary to change any of the information before the date, press the backspace key to the correct field or click on it with the mouse cursor.

2. Enter the name of the customer as it would appear on a statement, an envelope or a label addressed to the customer.

3. Enter the first line of the customer's address keeping in mind it will be used on a statement, an envelope or a label.

4. Enter the second line of the customer's address keeping in mind it will be used on a statement, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the customer's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the customer category. The category consists of the general ledger account numbers from 116000 to 116900 incremented by 100. This allows separate sub-ledgers for receivable accounts.

7. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

8. This can be a file number used to create some code used to identify the customer in addition to the customer number.

9. Enter the service charge rate to be used for this customer in calculation of service charges.

10. Dates consist of 8 digits. If only the day changes, enter the new day. If only month and day change, enter 2-digit day plus month.

11. Enter the invoice number for this transaction. It can be alpha-numeric. By default, the last number is increase by one and can be up to 12 characters in length.

12. Press alt-down arrow or click on the drop-down arrow to create or edit specific details about the invoice including the shipping address, special notes or freight details, the sales person and terms, eq. net 30 days and 2% in 10 days.

13. Enter the email address of the customer for current reference and future use.

14. Record the year end date of the customer, if required. This is used particularly by accountants in handling their clients for date requirements in filing tax returns and related schedules.

15. Enter the name of the contact individual.

16. Enter the credit limit, if this feature is to be used.

17. Enter the service charge rate to be used for this customer in calculation of service charges.

18. Enter the invoice number for this transaction. It can be alpha-numeric. By default, the last number is increase by one and can be up to 12 characters in length.

19. Invoice details can be edited by pressing the down arrow and selecting the terms of the invoice from a pick list of terms, example net 30 days, 2% in 10 days, and 5% in 15 days. When individual invoices are paid later, this rate will help in calculating discounts. Input the name of the sales person, if necessary as well as the shipping address and notes on freight details.

    1. Invoice Details - Press alt-down arrow or click on the drop-down arrow to select terms for this customer. Example: net 30 days and 2% in 10 days.

    2. Input the name of the salesperson for this invoice.

    3. Input the name of the party to which the items are to be shipped.

    4. Input the address of the party to which the items are to be shipped.

    5. Input the address of the party to which the items are to be shipped.

    6. Input the address of the party to which the items are to be shipped.

    7. Input the phone number of the party to which the items are to be shipped.

    8. Provide notes or shipping details.

Inventory Invoices

1. Enter the inventory code or general ledger account number. However, general ledger account must only be located on the line that will include an amount. For general ledger accounts enter 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options.

2. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts. In the case of an inventory item linked to the inventory control file, see details about inventory input under inventory help.

3. Job categories are general ledger accounts used to allocate job costing items to different categories. The accounts reflect the general ledger account the income or costs will be allocated to once the job is completed so that column one would be 120000, column 2 the job number such as 5 and column 3 the sale account might be 421000.

4. For input, other than a inventory item on this line, the forth column is for the description of the line and should be entered first if there are more than one line of description. The general ledger account must only be located on the line that will include the amount for the described service. Instead of actually typing the description, it is possible to save time by typing one of the prompts and having the system input the description. Note that the length of input for the description line is longer than the field shown.

5. Enter the number of units being sold. This is entered in the same fashion as dollar amounts, allowing for numbers of units other than whole numbers.

6. Enter the unit cost of this item. The system will calculate the total price based on this amount multiplied by the number of units with the amount saved in the last column. GST/HST, and where necessary, PST are calculated based on the accounts and amount entered. NOTE THAT CREDITS ARE ENTERED AS WHOLE NUMBERS AND DEBITS AS MINUS AMOUNTS. This is simply to speed up input because the system will save the amounts in reverse.

7. If this invoice is an open invoice, it can be saved as an open invoice for future additions or it can be changed to an active invoice. When the invoice is completed it can then be printed and saved.

Unit Invoices

1. Enter the general ledger account number. However, general ledger account must only be located on the line that will include an amount. For general ledger accounts enter 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options.

2. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts.

3. Job categories are general ledger accounts used to allocate job costing items to different categories. The accounts reflect the general ledger account the income or costs will be allocated to once the job is completed so that column one would be 120000, column 2 the job number such as 5 and column 3 the sale account might be 421000.

4. The forth column is for the description of the line and should be entered first if there are more than one line of description. The general ledger account must only be located on the line that will include the amount for the described service. Instead of actually typing the description, it is possible to save time by typing one of the prompts and having the system input the description. Note that the length of input for the description line is longer than the field shown.

5. Enter the number of units being sold. This is entered in the same fashion as dollar amounts, allowing for numbers of units other than whole numbers.

6. Enter the unit cost of this item. The system will calculate the total price based on this amount multiplied by the number of units with the amount saved in the last column. GST/HST, and where necessary, PST are calculated based on the accounts and amount entered. NOTE THAT CREDITS ARE ENTERED AS WHOLE NUMBERS AND DEBITS AS MINUS AMOUNTS. This is simply to speed up input because the system will actually save the amounts in reverse.

7. If this invoice is an open invoice, it can be saved as an open invoice for future additions or it can be changed to an active invoice. When the invoice is completed it can then be printed and saved.

Service Invoices

1. Enter general ledger account number. However, general ledger account must only be located on the line that will include an amount. For general ledger accounts enter 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. If using job costing, enter account 120000 in the first column and enter the job number in the second column with the sale or expense account in the third column that the entry will be posted to once the job is completed.

2. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts.

3. Job categories are general ledger accounts used to allocate job costing items to different categories. The accounts reflect the general ledger account the income or costs will be allocated to once the job is completed so that column one would be 120000, column 2 the job number such as 5 and column 3 the sale account might be 421000.

4. The description of the line and should be entered first if there are more than one line of description. The general ledger account must only be located on the line that will include the amount for the described service. Instead of typing the description, it is possible to save time by typing one of the prompts and having the system input the description. Note that the length of input for the description line is longer than the field shown.

5. Enter the amount on the forth line. GST/HST, and where necessary, PST are calculated based on the accounts and amount entered. NOTE THAT CREDITS ARE ENTERED AS WHOLE NUMBERS AND DEBITS AS MINUS AMOUNTS. This is simply to speed up input because the system will save the amounts in reverse.

6. If this invoice is an open invoice, it can be saved as an open invoice for future additions or it can be changed to an active invoice. When the invoice is completed it can then be printed and saved.

See also:

• Date Input

• Account Status

• Note Pad

• Account Listings

• General Ledger Options

• General Ledger Account Prompts

Record Sales Invoices

This program allows the user to enter invoices produced by hand or on another system instead of creating the invoice. The system handles all accounts receivable functions the same way as when creating invoices. See the section Invoice Register Prompts under accounts receivable master file before continuing because it outlines the use of prompts. The following step are necessary in creating an invoice:

Invoice details can be edited by pressing the down arrow and selecting the terms of the invoice from a pick list of terms, eq. net 30 days, 2% in 10 days, and 5% in 15 days. When individual invoices are paid later, this rate will help in calculating discounts. Input the name of the sales person, if necessary.

The first column is for the general ledger account number, the second for the sub-ledger account for those that qualify and the third for general ledger accounts for job costing. If using job costing, enter account 120000 in the first column and enter the job number in the second column with the sale or expense account in the third column that the entry will be posted to once the job is completed. The forth column displays the name of the general ledger account used.

GST/HST, and where necessary, PST are calculated based on the accounts and amount entered. NOTE THAT CREDITS ARE ENTERED AS WHOLE NUMBERS AND DEBITS AS MINUS AMOUNTS. This is simply to speed up input because the system will actually save the amounts in reverse.

When the invoice is completed it can then be printed and saved.

1. Press alt-down arrow, press F5 or click on the drop-down arrow to select from an alphabetical list of customers, type the customer's account number, or click on the check box to the right to add a new customer. If this is an existing customer, the system will skip directly to the description line.

2. Enter the name of the customer as it would appear on a statement, an envelope or a label addressed to the customer.

3. Enter the first line of the customer's address keeping in mind it will be used on a statement, an envelope or a label.

4. Enter the second line of the customer's address keeping in mind it will be used on a statement, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the customer's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the customer category. The category consists of the general ledger account numbers from 116000 to 116900 incremented by 100. This allows separate sub-ledgers for receivable accounts.

7. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

8. This can be a file number used to create some code used to identify the customer in addition to the customer number.

9. Enter the name of the contact individual.

10. Enter the email address of the customer for current reference and future use.

11. Enter the credit limit, if this feature is to be used.

12. Enter the service charge rate to be used for this customer in calculation of service charges.

13. Enter the invoice number for this transaction. It can be alpha-numeric. By default, the last number is increased by one.

14. Press alt-down arrow or click on the drop-down arrow to select the terms, eq. net 30 days and 2% in 10 days and 5% in 15 days. When individual invoices are paid later, this rate will help in calculating discounts.

15. Enter a short description for the invoice. The prompts set up in the accounts receivable master file can also be used. Instead of typing the description, it is possible to save time by typing one of the prompts and having the system input the description.

16. Enter account numbers as 6 digit numbers with all trailing 'zeros' added by the system. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. The system will check to see if there is such an account number or you will again be asked for a general ledger account number. Each time an account number is input, the system displays the current activity and year to date balance of the account.

17. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts.

18. Job categories are general ledger accounts used to allocate job costing items to different categories. The accounts reflect the general ledger account the income or costs will be allocated to once the job is completed so that column one would be 120000, column 2 the job number such as 5 and column 3 the sale account might be 421000.

19. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for list or F6 for options.

See also:

• Date Input

• Account Status

• Note Pad

• Account Listings

• General Ledger Options

• General Ledger Account Prompts

Enter Cash Receipts

This program is for recording payments on account. They can be applied against the balance forward or applied to specific invoices. The following step are necessary to record a payment:

1. Press alt-down arrow, press F5 or click on the drop-down arrow to select from an alphabetical list of customers, type the customer's account number, or click on the check box to the right to add a new customer. If this is an existing customer, the system will skip directly to the description line.

2. Enter the name of the customer as it would appear on a statement, an envelope or a label addressed to the customer.

3. Enter the first line of the customer's address keeping in mind it will be used on a statement, an envelope or a label.

4. Enter the second line of the customer's address keeping in mind it will be used on a statement, an envelope or a label. If city and province are entered on this line, try also to include the postal code.

5. Enter the third line of the customer's address, if any. Include the city, province and postal code. Note that the postal code will automatically capitalize.

6. Enter the customer category. The category consists of the general ledger account numbers from 116000 to 116900 incremented by 100. This allows separate sub-ledgers for receivable accounts.

7. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

8. This can be a file number used to create some code used to identify the customer in addition to the customer number.

9. Enter the name of the contact individual.

10. Enter the email address of the customer for current reference and future use.

11. Enter the credit limit, if this feature is to be used.

12. Enter the service charge rate to be used for this customer in calculation of service charges.

13. Enter the cash receipts number for this transaction. It can be alpha-numeric. By default, the last number is increased by one. A suggestion is to user the letter ‘R’ in front of the number so that it is easy to differentiate receipts from invoices.

14. Press alt-down arrow or click on the drop-down arrow to select the terms, eq. net 30 days and 2% in 10 days and 5% in 15 days. When individual invoices are paid later, this rate will help in calculating discounts.

15. Enter (P) for 'Payment Thank you' or type a description of the payment. The prompts set up in the accounts receivable master file can also be used. Instead of actually typing the description, it is possible to save time by typing one of the prompts and having the system input the description.

16. The first column is for the general ledger account number and defaults to the cash on hand account #110000 since all monies collected are entered to cash on hand and deposits to the bank are credited to cash on hand. Press F5 for Chart of Accounts, Shift-F5 for Trial Balance and Ctrl-F5 for Prior Year Trial Balance and F6 or double click for additional options. The system will check to see if there is such an account number or you will again be asked for a general ledger account number. Each time an account number is input, the system displays the current activity and year to date balance of the account.

17. Enter sub ledger account number for the general ledger account input to the left. Press F5 for a listing or F6 for additional options. Type (S)kip to bi-pass capital asset sub accounts. This column is not usually used for the cash receipts journal however it may be necessary to make adjustments instead of an actual payment in which case the sub-account may be necessary.

18. Job categories are general ledger accounts used to allocate job costing items to different categories. The accounts reflect the general ledger account the income or costs will be allocated to once the job is completed so that column one would be 120000, column 2 the job number such as 5 and column 3 the sale account might be 421000. For column three as for column two it is not likely it will be used for the cash receipts journal.

19. Enter 'amount, -amount, 0amount or 0-amount'. GST/HST/PST will be calculated on accounts flagged as such. To over-ride the calculation, enter '0' plus the amount. Press F5 for list or F6 for options.

20. When the receipt is completed it can then be printed and/or saved.

See also:

• Date Input

• Account Status

• Account Listings

• General Ledger Options

Calculate Service Charges

This routine can only be completed once per month and calculates service charges based on the rate set up in each customer file and on the balance outstanding more then the selected period of 30 days, 60 days, or 90 days.

See also:

• Master receivable file

• Customer files

Print Invoice Register

This report gives the company a complete list of all account receivable invoices entered including the date of each invoice, invoice number, customer's name, general ledger account numbers affected and the amount posted to each. The report can be printed covering the current period or for the full year.

Cash Receipts Journal

This report provides a complete list of all account receivable payments entered including the date of each receipt, receipt number, customer's name, general ledger account numbers affected and the amount posted to each. The report can be printed covering the current period or for the full year.

Receivable Monthly Reports

This routine allows the user to select from a list of monthly reports, the ones to be printed continuously.

Aged Trail Balance

This report provides a list of accounts showing the name of each customer, aged balances, phone numbers and total amount due. Based on the report default set up, the report will be printed alphabetically or numerically. This report can be printed at any time during the current period, but it will not be accurate if there are transactions already entered in future periods.

Accounts Receivable Ledger

This reports provides a detailed list of activity for each account for the period covered including the name, account number, opening balance, activity whether a charge or payment and final balance. The report can be printed alphabetically or numerically covering one period or the entire year. It can be printed for one customer or for all.

Alphabetical/Numerical List

This report gives you a complete list of account names in alphabetical or numerical order depending upon the defaults set up. The report can be printed simplified or detailed. The detailed report would provide a list including name, address and phone number. The report can be printed as standard or formal providing different formats.

Accounts Receivable Statements

This report provides a detailed list of activity for each account for the period covered in a special format to be mailed to the customer. The report can be printed alphabetically or numerically covering one period or the entire year.

Customer Analysis and Notes

This report gives the user the name, address, phone number, total sales for the current year, date of last invoice and other miscellaneous information. The report can be printed in alphabetic or numeric order.

Purge Customer Files

This routine will clear continuously or select, all accounts unused beyond the time defined by the user, making them available to be used again.

Capital Asset

This program allows for adding and editing capital asset files; editing or viewing classes and categories; and calculation of depreciation and purging of files. The routine of purging files is designed to clear files created in error. To do so, be sure that the original cost of the asset in question is changed to zero before running the purge routine.

Capital Asset Files

The file type consists of being active or inactive. When editing files, the selection of active files will provide a list of active files to pick from. Inactive files are files created and disposed in prior years. When selecting inactive only a list of disposed assets will be displayed.

To add a new capital asset, follow the following steps:

1. The record number for a new asset is assigned by the system. When editing a file, enter the record number of the asset, if known, or press F5 function key or click the drop-down arrow to get a pick list of items to select from.

2. Enter the class of asset being added or changed, if known, or press the F5 function key or click on the drop-down arrow to get a pick list of classes as defined by Canada Revenue Agency.

3. Enter category for class of asset or press F5 function key for list. Each class has separate categories for breakdown for financial statement purposes that will be combined for tax purposes. If the class or category is incorrect, simply backspace and input the correct Class and/or Category.

4. Give a full description of the asset.

5. If a serial number is available, enter the serial number which will better define the asset for future reference.

6. If assets are kept at different locations or in different bins in one location, the location may be defined here.

7. Enter the original cost of the asset, excluding GST. Any trade-in or tax credit should not be deducted at this point.

8. If the asset qualifies for any tax credit, indicate the amount, allowing the proper depreciation calculation and book value.

9. If setting up assets for prior years, enter the amount of accumulated depreciation claimed the year prior to starting this system. The system updates this figure from year to year.

10. Input the purchase date of the asset. A date must be input, but if the actual date is not available, use any date that falls within the current fiscal year of the company.

11. Flag as (Y)es or (N)o as to whether GST was involved with the purchase of the asset because the system uses this file for GST verification.

12. If the asset is sold, a sale date must be input. Again, if the actual date is unknown, enter a date that falls within the current fiscal year. This date is also used by the system for the GST verification if GST is involved with the sale.

13. If sold, flag as (Y)es or (N)o as to whether GST was involved with the sale as the system uses this information in the GST verification.

14. If the asset was sold, enter the sale proceeds, net of GST and the system will automatically calculate any gain or loss or any recapture of depreciation. In some cases the sale price will be the trade-in value.

15. To dispose of an asset which is scrap and has no sale value, it is recommended that the asset be sold at book value and this value be recorded in the general ledger as a cost to supplies or some related expense account. To sell the asset for less than the book value would create a capital loss and in the case of scrap this is not the case.

16. The current year depreciation is the depreciation calculated by the system but it may be edited, if necessary. Remember, however, changing this figure will change the amount of depreciation to be claimed on this asset for the fiscal period and the report 'Schedule of Depreciation' must be reprinted to update other files within the system. Keep in mind that the amount must be pro-rated for periods shorter than one year.

17. Indicate the percentage sold of the asset as a whole-rate such as 100, 50, 25 or 0. If an asset is sold in its entirety enter '100'. If the asset is not sold, enter '0'. This is useful when large items are divided between one or more companies.

18. Enter any adjustment from the previous year. There should be no input to this field for the year the asset was purchased or sold as this adjustment can only involve items that already exist from a prior year. For instance, a building was built in 2007 for $25,500.00 and was recorded as such at that time. In 2008, some additional costs were incurred in completing the building that should be capitalized, or it was found that several invoices were charged to 'Repairs and Maintenance' in 2007 that have to be allocated to capital assets. The amounts of these adjustments would be recorded as adjustments; they would not be added directly to the original cost and book value. The system will automatically do this in the year end function.

19. If the asset being added it a capital lease, indicate (Y)es from the pick list of the combo box to the right of 'Capital Lease'. In addition, if a deposit was made on the capital lease, indicate the amount of the deposit. If GST or HST has been flagged above, the amount of the deposit will be included on the GST Verification Report but not the original cost of the capital lease.

20. It is possible to keep a record of the fair market value of the asset and the date the fair market value was placed on the asset. This information would be good to have for banking purposes or in calculating the value of the business. It is not necessary, however, to set up this information if it is not going to be used.

21. Indicate the depreciation type to be used for the asset. Use (D)iminishing or enter the number of years if straight-line.

22. Non-active prior years, should be (N)o except in the case of the sale of 100% of an asset that you want to set up that was sold in some previous fiscal year. When running the year end function, any assets sold in the amount of 100% in the current fiscal year, will be updated automatically to read (Y)es.

23. Flag the asset if it qualified as a section 85 roll-over item.

24. Input the general ledger account that this asset is associated with or press the down arrow and select the proper account from the list of capital asset accounts. This account is used by the system when automatically saving a journal entry for a new asset or for an asset that is sold.

25. The entry can now be saved unless there are changes still to be made.

Assets can be added or changed directly in the edit capital asset program however, other than setting up all assets of prior years, the additions or sales of the current year should be recorded in the journals. In the journals, input the respective capital asset account, 173100 for office equipment, 173500 for machinery and equipment, 174200 for automotive equipment and so on, and when the system requests a sub-account, press the F6 function key and select add or change.

Classes and Categories

Capital assets are grouped in classes and categories. The class is represented by the class assigned by Canada Revenue Agency. The category, however, represents separate groups of the same class such as 'Office Equipment' and 'Shop Equipment'. These are both 'Class 8' for tax purposes but are recorded separately for financial purposes. The system provides for 50 separate classes and 10 categories in each class. Class 10, category 10 is reserved for Class 10.1 automotive items. Class 0 has been reserved for land since land is a capital asset but it will be ignored as a capital cost item. These classes and categories may be edited at any time with additional categories added as necessary.

1. Enter the class of asset. Classes range from '0' for land to '50' available for future classes assigned by CRA.

2. Enter or edit the amortization rate for the class of asset selected. These are the rates that CRA uses for each class of asset.

3. Enter the description of each category of this class of asset. These names should not be changed because assets are created and assigned to specific categories.

Calculate Depreciation

To calculate depreciation properly the program will require for the following:

1. Indicate whether to use the one-half year rule in calculating amortization. The calculation of depreciation is not related to the calculation to be used for capital cost allowance for tax purposes.

2. Amortization may be calculated to two decimal places or rounded to a whole number. Indicate your preference. Amortization can be re-calculated any number of times. Select records may be edited to override the current year amortization for one item.

3. Indicate whether to calculate amortization using the full rate allowed or a reduced rate. This represents a percentage of the rate allowed such as 100% of 30% for automotive or 50% of 30% for automotive.

4. Full amortization will default to 100%. To calculate at an amount less than 100% of the maximum, as in the case of calculating a year to date amount, enter the percentage required. Calculate this by dividing 100 by 12 equal to 8.33 per month. In another example, the user could calculate 8.33% of the allowable 30% for automotive equipment which would give an amount for one month of the year. This would be handy in calculating the amount of depreciation required for a standard entry so that the monthly financial statements could give a more accurate picture of the company’s situation instead of waiting until year end to have a large adjustment in the final month.

5. Select (Y)es to have amortization calculated continuously for all records or select (N)o to have the amortization calculated on each qualifying asset done individually.

6. When calculating amortization, the user may NOT wish to calculate amortization on certain classes. Indicate the classes to be skipped, if any. The system provides for up to 3 separate classes that may be affected. This would be used in an instance where the user would calculate depreciation on all assets except possibly on buildings knowing that they are appreciating and the company has elected not to reduce the value of the assets with depreciation on buildings.

7. Enter the next capital asset record to calculate amortization on or press enter to have the system automatically calculate on the next available record.

8. The user may input an amount other than what the system calculates and it may be changed as many times as necessary.

Keep in mind that the amount must be pro-rated for periods shorter than one year.

One of the options available when entering the depreciation calculation window is to (D)elete. This option simply clears any depreciation calculated for the current year. This would be used in an instance where depreciation was calculated and it was then decided that no depreciation would be taken for the current year.

Schedule of Depreciation

This report provides you with a total of the assets in each Class and Category showing the opening balance, the additions, disposals, adjustments, the depreciation claimed and the final balance. This report MUST be printed after any changes are made to update the capital cost files, working paper files and notes to financial statements. One option available when processing this report is to have the system automatically create the journal entry the amortization covering the month or the year.

List of Capital Assets

This routine will provide a list of capital assets listed by class and category showing the record number, date of purchase, description, original cost, accumulated depreciation and book value. The report can also give the fair market value of each item and allows for a number of separate options.

A list of capital assets disposed of listed by class and category showing the record number, date of sale, description, original cost, book value and proceeds of sale is also available.

Schedule of Capital Cost

The report is also known for the purposes of corporate companies, as Schedule 8 and provides the report required by the tax department to reflect the activity with assets that have been capitalized and the undepreciated capital cost allowance carried forward from year to year.

Amortization Cumulative Eligible Capital

The amortization of eligible capital is calculated in the same manner as outlined above for capital cost allowance.

Capital Cost Files

This program allows you to set up opening balances in each class of capital asset for balances carried forward from the previous year end of the company if any. You are allowed to edit the additions, disposals or adjustments but reprinting the schedule of depreciation will over-ride these figures based on actual activity.

BEFORE CONTINUING WITH THE CAPITAL COST ALLOWANCE, IT IS ESSENTIAL THAT, AFTER ADDING AND EDITING CAPITAL ASSETS AND CALCULATING DEPRECIATION, YOU PRINT THE SCHEDULE OF DEPRECIATION.

To calculate Capital Cost Allowance for the current year, use the following steps:

1. Indicate whether using the full rate or a percentage of the full rate. To calculate allowance for only one month input 1/12th of 100 which is '8.33%'. It may be advisable to use only the amount required to reduce the income to nil without creating a loss.

2. Indicate the class to calculate capital cost allowance for. The active classes will be displayed showing the total activity of the respective class including the opening balance, additions, disposals, adjustments and the amount upon which the capital cost will be based.

3. To have the system calculate the capital cost allowance automatically, simply press the F6 function key and the maximum allowable will be calculated. This procedure may be done as many times during the year as necessary. The amount of allowance may be typed manually and may be changed at any time.

Cumulative Eligible Capital

This program allows you to set up opening balances for those balances carried forward from the previous year, if any. Any additions to this class '14' must be added along with the other capital assets as well as any disposals or adjustments and as for capital cost files, you must first print the Schedule of Depreciation before calculating the amortization. If the capital asset section is not used, the additions or disposals may be input directly. Similarly, to calculating capital cost allowance, the amortization can be calculated automatically by pressing the F6 function key. Keep in mind that the amount must be pro-rated for periods shorter than one year. This procedure may be done as many times during the year as necessary.

JADE Editor

The Jade Editor has been designed to edit or create letters. Accountant's engagement letters, notices to reader, and representation letters samples of which have been created, can be changed to suit each accountant’s requirements. In addition, special letters can be created and linked to the data files of the company since the names and addresses of the company, its vendors and customers, and employees are part of the data available.

Canadian Payroll

Hourly & Commission Input

The period date of the payroll MUST be set up under Edit on the Systems Manager. Note that there are two dates, the pay period date and the payroll paid date. The pay period date refers to the actual cut off date but the payroll paid date refers to the actual date the employees are paid which may be the same day or a few days or a week later. Financial accounting deals with the payroll period date in its records but Canada Revenue Agency uses the payroll paid date in calculating the dates that remittances are due and what the cut off is for T4 slips.

It is essential to have 5 weeks or part weeks for employees paid monthly, with or without advances and 3 weeks or part weeks for employees paid semi-monthly. To do this, in some instances the user will have to have one day represent a week. You may set up different cut-off days but BE SURE TO HAVE THE CORRECT NUMBER OF WEEKS OR PART WEEKS. If employees are paid on a weekly or bi-weekly basis, the cut off date set up by the employer such as Friday, the first ending Friday of the pay period is the date to input.

For a NEW payroll, the pay period ending date is different than the previous period. A RESUMED pay period uses the same date and allows the balance of employees to be paid and/or corrected. The system handles and tracks each of the pay period types individually. The pay period types are:

1. Annual

2. (10) monthly

3. Monthly

4. Semi-monthly

5. Bi-weekly

6. Weekly

Pay periods are updated by the system but if necessary a new payroll could be done which actually continues an old period. Input the old period number for the payroll and change back for next payroll.

1. Select add hours or change hours.

2. Select the employee for whom the hours will be added or changed.

3. When adding hours for new weeks, the system increments by one although weeks may be skipped by typing a number greater than the next week number.

4. To change the number of hours for certain weeks already saved, use the pick list and select the week to change.

5. Input the actual hours worked for the week including regular hours, overtime hours and in special circumstances, hours which will be banked for future use.

6. Press F6 to add or use banked hours. Each employee's file tracks the banked hours for each of the five possible hourly rates. These banked hours must be used in accordance with labour board regulations.

7. Input the regular hours for the hourly rate show or to be shown to the right. This is only for hourly paid employees. The system defaults to the total hours less the banked hours.

8. In the case of job costing for employees, when the cursor is located on the number of hours at the first rate, press F6 or click on the check box to the left of the regular hour’s column. Input or select the job file and enter the work that was preformed. Input the hours and the rate for the employee. The system will default on the employee’s hourly rate. The number of hours can be less than or equal to the maximum number of hours input. Any excess hours worked over and above the hours assigned to specific jobs is posted the wage account assigned to the employee.

9. Input the hourly rate for the hours entered to the left. The system allows five separate hourly rates and is saved in the employee's file. This rate may be changed from week to week.

10. Input the overtime hours for the overtime rate shown or to be shown to the right. The default is the balance of hours unassigned for the week.

11. Input the overtime rate for the hours entered to the left. The system allows five separate overtime rates which default to 1.5 times the regular rate.

12. Save the hours and proceed with the next week or the next employee.

Hourly and Commission Reports

The hourly or commission reports may be printed for the current period using the default pay period date for the report or print any past report in the current calendar year by typing in the pay period ending date of the respective payroll. It is also possible to select a previous year if the payroll was completed using JADE Software Systems.

Process Transactions

The system allows transactions for each of the pay period types:

1. Annual

2. (10) monthly

3. Monthly

4. Semi-monthly

5. Bi-weekly

6. Weekly

Select the type to be paid and proceed with the transactions. The system provides a list of the employees of each type.

Select (A)dd Transaction to calculate the net pay for each employee. If the employee has already been paid, but must be changed, select (C)hange Transaction and select the period to be edited.

1. Indicate the bank account number to be used in the printing of cheques if required. Accounts range from 113000 to 113999.

2. Record the next cheque number to be used in printing of payroll cheques for the bank account recorded.

3. Input the date that the cheque is to be issued. This may be a date later than the actual pay period date.

4. Sometimes, an employee does not return after a previous pay period. As long as all monies owed to the employee have been paid, the termination date must be input so that the files may be purged at year end. Enter the date of termination by editing the employee files and recording a date.

5. After selecting the employee and the pay period to completed the next step is the payroll transaction journal.

6. All fields may be edited except CPP and EI. In the case of income tax, having the system calculate the tax or allowing the user to input a specific amount, toggles back and forth.

7. When satisfied that the net pay is correct and all items that should be deducted, have been, click on (S)ave.

8. If the company actually prints cheques, the system will go directly to the cheque printing routine.

Vacation Pay

Balance forward amounts are tracked by the system for future calculations of vacation pay and are calculated based on the Labour Board standards for each province. The user has the option to edit the information provided and to only use a portion of the available carry-forward amounts with the balance carried forward to another period. If the employee is to be terminated, indicate such and state the last day worked.

Statutory Holidays

The statutory holiday pay in Alberta

The statutory holiday pay is calculated by the system based on the statutory holidays of each province including New Year's Day, Family Day (3rd Monday of February), Good Friday, Victoria Day, Canada Day, Labour Day, Thanksgiving Day, Remembrance Day, Christmas Day and several other days defined by certain provinces. With the new guidelines set out by certain provinces in 2018, Jade Software Systems tracks the qualifying weeks covering the 28 days priot to the holiday and the user must input the exempt hours in the week which includes the first of the 28 days and the hours in that last week from the date of the holiday to the end of that week. The system then deducts the hours times the employees rate and adds vacation pay to the amounts if the employee is paid vacation pay each period. The 5% is then calculated on the difference. The calculation can be over-written by the user, at managements discretion. Jade Software uses the general guidelines of each province but the final decision to pay statutory holiday pay to an employee rests with management since there are other factors outside the information available to the system when calculating statutory holiday pay.

Eligibility Requirements differ from Province to Province

The system has been set up to use the general requirements of each province including the length of service to qualify as well as the total qualifying income over the defined period divided by the number of days worked for that period. Unauthorized absence from work without the employer's consent on the regular working day just before or after the holiday is one reason for the employer not to pay holiday pay.


There are Exceptions to the Eligibility Requirements (refer to the labour standards of the province needed to confirm the employee’s eligibility)

For Alberta and some other provinces general holiday provisions do not apply to members of municipal police services, to various categories of salespersons and brokers, to extras in film and video productions and to farm or ranch employees whose employment is directly related to the primary production of eggs, milk, grain, seeds, fruit, vegetables, honey, livestock, game-production animals within the meaning of the Livestock Industry Diversification Act, poultry or bees.

Payroll Journal

The journal may be printed for the current period, alphabetically or numerically by using the default pay period date for the report or print any past payroll journal in the current calendar year by typing in the pay period ending date of the respective payroll.

Employee Pay Slips

Employee pay slips may be printed before or after the payroll journal if the company is not having the system print cheques. The slips indicate the payroll details as well as year to date figures and should be given to each employee with their payroll cheque since it is a government regulation.

Management Report

The management report is intended to be given to management as a summary of the payroll instead of a detailed journal. Many companies however like the report to because of its simplicity. The report displays the employee’s code, name, hourly rate, number of hours worked details of incomes and deductions and net pay. If the report is printed for a select employee, it will display the details of each payroll from the beginning of the year to a specific date for the employee.

Prepare Payroll Cheques

Payroll cheques are printed and saved at the time the payroll transactions are completed for each employee. The cheque as a number of different formats and prints a full stub including the current period income and deductions as well as a summary of year to date figures. To indicate that cheques should be printed, edit the payroll cheque defaults and indicate printing of cheques as (Y)es. In addition, select the stub type and the cheque type as well as the number of copies.

Payroll Cheque Register

The payroll cheque register will print the payroll cheque for the current month if only the payroll portion of the software is being used, but if the entire software package is being used, the cheque register will display all cheques issued including the accounts payable cheques and general ledger cheques.

Record of Employment

The record of employment information is to be edited on screen. Much of the information required on the ROE is automatically filled in by the system. Everything can be edited prior to printing the form. The main items to address will cover the expected date of recall, the reason for issuing the ROE, the date of filing and the individual filing the return. The insurable earnings should be reviewed prior to completing the form. The form can be printed for the company's copy and saved as a XML file ready to be sent to Services Canada as long as the accounting office or the company has set up authorization with Services Canada to file electronically. If there is no authorization to file electronically it will be necessary to transpose the data from the company's copy to an original form from Services Canada.

Payroll Allocation Summary

The payroll allocation summary allows the user to calculate the amount owing to British Columbia WorkSafe for the quarter. The system automatically reads the payroll records and calculates the amount per category times the rate assigned to arrive at the amount outstanding. Similarly for sub contract it sub contract accounts have been set up on the accounts payable trade ledger the amounts for sub contract are also calculated. The user can if necessary type in the gross amounts for any sub contract not included in the sub ledger. The system also prints the actual form that can be used to transpose figures to the original received from the government. What can take many hours to calculate manually takes only seconds for JADE Software Systems to calculate.

Year-to-Date Report

The year-to-date report can print a report for one or all employees in numeric or alphabetical order. If the report default is changed to indicate that the audit trail is to be used, the system will re-read all the transactions for the year and re-save the data to each employee's file. The report will also print the year-to-date amount from the beginning of the year to any defined date within the calendar year.

Alpha/Numeric Employee Lists

To print alphabetical or numerical lists of employees, go to the section on editing employee files and to reports in that section.

Process Year-End Functions

The program provides for the printing of T4 slips and summary, T4A slips and summary, and T4PS slips and summary. This program also provides for the clearing of employee files in preparation of the next year. It clears the year-to-date totals but leaves the pay period amounts and the totals for vacation pay to carry forward to the next year.

When clearing the files, the system will ask about clearing any employees who were terminated during the year. When printing the year-to-date report, anyone who was terminated or should have been terminated and will not be returning, be sure that they have a termination date. The date can be any date in the current year. Any employee who is to be cleared will be purged from the data file, but all remaining employees will retain their initial code.

In processing this function, the system actually creates new records for the next payroll year updated as indicated above without doing anything to the current year files. This therefore, allows the user to change the period date back to a prior year to have full access to the prior year records.

Once this routine is completed, the system will change the payroll period date to the 1st of January of the next year. The actual first payroll period date must be changed by the user.

Client File Management

The client file details the name, address and specific information about the accountant and the accounting firm. The information is required for headings on letters and other specific reports. This information can be changed at any time and is located on the menu path, making it possible for each accountant of a firm to personalize their computer. This function allows for multiple accountants to be set up the system. This may be necessary where an accountant of one firm handles the bookkeeping and another accountant deals with preparation of a review or audit.

1. Enter the name of the accounting firm as it will appear on letterhead and letters to clients.

2. Type Division of ... or Operating as ... if the situation requires it, or leave the line blank.

3. Enter the first line of the address of the firm.

4. Enter the second line of the address of the firm, if any.

5. Enter the town or city in which the firm is located.

6. Enter the province, state or territory in which the firm is located.

7. Enter the postal code of the firm. Note that the postal code will automatically capitalize and must be input as 'LNL NLN'.

8. Telephone numbers must be input including area code as complete numbers not including spaces or brackets.

9. Fax numbers must be input including area code as complete numbers not including spaces or brackets.

10. Record the email address of the firm which will be used by the system for efiling of T4, T4A, T5 and T5018 forms. If the client does not have an email address set up, the system will automatically use this email address.

11. Record the firm's website which will be used on time and billing and for preparation of letterhead used for engagement and other letters.

12. Enter to name of the individual signing on behalf of the firm.

13. Select the designation of the individual signing on behalf of the firm.

14. For accountants who wish to have a different name on the notices to reader other than the companies name, enter the name as it is to appear on the comments.

15. If a firm logo is available, it saved as a low resolution “pgn” file and saved to the menu path and the cologo directory as “c:\jadewin\cologos”. It will also be used in preparation of time and billing sheets and letterhead.

Edit Permanent File

The permanent file information or knowledge of client's business details all aspects of the company including its head office address and contact numbers, the lawyer and registered office, and all bank and tax account information. Several sections require editing from other locations in the program and simply display that information here. If any of the accountants' letters do not show the company name properly because of converting to upper and lower case, the company name may be entered at the end of this section the exact way it should be displayed. It is advisable to print a copy of the permanent file information and file it on top of the working papers year.

Engagement Letters

The system has four separate engagement letters for audits, reviews, verifications and compilations. Each of these, start with 'RTEG' standing for 'report engagement' followed by 'AUD' for Audit, 'REV' for review, 'VER' for verification, and 'CMP' for compilation. Each selection is then followed by a number from 1 to 4 or more, one being for singular text without a computer-generated letterhead, two being for plural text without a computer-generated letterhead, three for singular text with a computer-generated letter head, and four for plural text with a computer-generated letterhead. Additional numbers have been designed to handle different text in the body of the report. The system automatically inserts information about the respective company and the dates involved, but the main body of the engagement may be changed at any time. JADE Software Systems will be glad to make any necessary changes upon request.

Presentation Letters

The system has two separate presentation letters, one named, 'RTPRCYR1.JSS' outlining a letter from the client to the accountant acknowledging the work that has been completed and accepting it. The second, called 'RTPRLET1.JSS', is a letter from the accounting firm to the client advising the client that two copies of the tax return are attached and that one copy must be signed and filed with the respective government departments. The system automatically inserts information where required, but the main body of the presentation letters may be changed at any time. JADE Software Systems will be glad to make any necessary changes upon request.

GST & Year End Listings

This is a report provided by the JADE Professional Plus to print a list of the firms clients grouped alphabetically month by month. This provides the firm with a list to help with the organization of work for the year.

Print Permanent File

This report is located in the same place as the editing program for the permanent file and provides a report that should be reprinted each year and included in the client's file folder.

Print Verification Letters

To carry out a full audit, or in some instances, a review, it is necessary to confirm balances for accounts payable and accounts receivable. This routine prints the letter using the account names and balances in the system.

Annual Minutes

The annual minutes of the company currently logged onto can be printed for the directors and shareholders using specific dates and times which the system saves and uses the next year end, or the user can input any date and time. This allows the accountant to keep the client's minute book up to date if the client is not using a lawyer to handle this function and is unaware about the requirements of a corporation. In addition, there are a number of pre-defined resolutions to choose from including changing the name of a corporation, line of credit, consent to act as a director, request information from Canada Revenue Agency for capital dividends, appoint an accountant, appoint a lawyer and declare dividends as well as others.

Bank Confirmation

To complete an audit or review, it is necessary to obtain a bank confirmation. To simplify the completion of the confirmation, the system allows the user to type in the financial institution's name and address or to select one from a pick list. The firm's name and address pertain to the firm set up in the Client Management section.

Corporate Documents

The corporate documents section handles the input and printing of a number of forms required to set up a new corporation with a registry office. The system handles the following forms or reports designed for Alberta:

Annual Corporate Return

Articles of Incorporation

Articles of Revival

Articles of Dissolution

Notice of Change of Address

Notice of Change of Directors and shareholders

Borrowing By-laws

General By-laws

In order for the system to produce the forms, add the proposed corporation to the system first, including as much of the information as is known about the new corporation. This would include the full name, address, and other information for shareholders and directors. Other forms may be added as requested by users.

The system also handles a number of general resolutions for directors and shareholders including:

Particulars of Share Transfers

Declaring Capital dividends

Declaring dividends

Subscription for Shares

Consent to Act as a Director

Resignation of an Officer

Resignation of a Director

Acceptance to a Resignation of a Director

Share Purchase Agreement

Securities Register and Share Certificates

For each of the forms or resolutions or agreements, complete the requested information and have the system create a paper copy or print the report directly to a PDF file.

Edit Working Papers

The working papers section allows the user to select from five separate types of working papers:

1. Audit - designed to assist the qualified accountant with a formal audit as required by the corporation or one of the financial firms of the corporation.

2. Review - designed to assist the qualified accountant with a formal review as required by the corporation or one of the financial firms of the corporation.

3. Verification - designed to assist the accountant with a compilation that is handled with more concern and detail than a simple compilation.

4. Detailed-Compilation – designed to assist the accountant with a more detailed compilation considering the complexity of the corporation and the third party requirements.

5. Compilation - designed to assist the accountant with a simple compilation.

Each of the five types of working papers listed above, provide a separate list questions if the company is incorporated or unincorporated. The system allows the accountant to tailor the questions to suit the requirements by the firm or the requirements of the societies and to comply with CASPE requirements. Keep in mind that the changes become the default for all engagements of this type. The user may access each of the procedures by clicking the check boxes under the index or by clicking on the tabs at the top of the form.

In order to respond to any question, the user must first double click on the first question in the list above or a specific question. The question and the responses will be outlined below the list for user input. When answering the questions, the user can click on the option box that pertains to the response they want and type additional response in the text box provided. For the initials of the user (the user is the individual logged onto the system and preparing the working papers) can double click on the text box for the initials and the system will use the user log on information to fill in the initials. The user may also add any reference number and any note they wish. If the enter key is pressed past the column for notes, the system will automatically bring up the next question until the bottom is reached.

Once all questions have been responded to, the user can double click the prepared by and the date of preparation to have the system fill in the users name and the current date. The F6 function key can also be used. These fields can not be typed in directly and only the same user can remove his/her name from the field by double clicking again.

The checked by can be anyone other than the individual who prepare the working papers and again they are the only one who can remove the checked by name once it is saved. If the prepared by individual is the same as the checked by individual, it is possible to input the same name but it can not be done on the same day but at least one day later. The text box can be double clicked or F6 can be used when focus is on the text box. This provides some security as to who prepared and who checked the working papers and no one else can replace their names.

Click on save and Cancel and be returned to the working paper main page and go to the next item on the list.

For the different headings in the check list of general ledger categories, first select the section to be begin. All the functions are the same as mentioned above, however once completing the category, the user may simply click on next and the system will save the information for the current category and proceed to the next category. If the category has no activity and no accounts, simply click the next button again.

The scroll list on the top left is the complete general ledger for the current year with the previous year comparisons and the dollar and percentage variances shown. The scroll list at the left below the first list is a list of items related to the section selected so it is easy to see if any questions need to be answered regarding this section.

The notes and conclusion are outlined on the bottom left corner allowing the user to make notes regarding the selection and a check box the the right of the Conclusion as to yes or no for the negative assurance.

Documents Required from Client

The document list provides for up to 20 separate items from clients for each item in the list. The user can click the item in the document list and then click the items they wish to have the client provide. Additional items may be added or edited for the requirements. When the complete list is completed, the user has the option of clicking the check box below which will create a letter to the company requesting the information needed.

Time and Billing

The user can record the information as to the time both budged and actual including recording the prior year information if available. Please note the information of the current year will automatically be updated for the next year return.

Schedule of Amortization

The capital asset section is an automatic section, updated directly from the capital asset section when the schedule of amortization is printed. It provided a detailed list of classes and categories of assets with the original costs, additions, disposals, details of amortization and final book value. Separate lists are recorded below for additions and disposals and the details of each. The user need only indicate who prepared the working papers and the date. The information is used only as supporting documentation in the working papers.

Mortgages Receivable

If the company has any mortgages receivable and an amortization schedule is necessary to track the payments received and the interest earned, it will be necessary to complete this section. It provides a summary and a detailed outline of each mortgage receivable including the calculations for payments and interest earned.

Payroll Reconciliation

The payroll reconciliation allows the user to input the figures accumulated from the payroll of the company. If the company has a December year end, the T4 slips will be the totals that should appear on the general ledger. For companies that have a fiscal year end that is different than December, input the T4 summary totals for the year indicated, minus the totals for the period prior to the beginning of the year and add the totals from the beginning of the current calendar year to the year end date. These totals should agree with the general ledger.

If JADE Software Systems was used to complete the payroll for the employees and shareholders, the user need only click the button 'Build from Payroll Records' and the system will automatically fill in the entire form. The user need only indicate the payments made during the period to arrive at the figure that appears on the balance sheet as payroll deductions payable.

If JADE Software System was not used to prepare the payroll for the year, the user will have to input the amounts manually to arrive at the same figures outstanding.

Activity for Long Term Liabilities

The system also provides an amortization schedule for long term liabilities. With focus on the second column of each credit on the summary sheet press the F6 function key or double click and input the specific details of the specific loan.

Record all the details available for the loan for future reference and current year calculations. The payments, interest and principal amounts may be changed to agree with actual totals if such totals are provided. The interest rate may be changed from period to period. The current portion of long term liabilities is calculated for the current year as well as for the next five years. The current portion of all the loans should be debited to account 299999 and credited to 259999. The five year current portions will be automatically displayed on the note, Loans Notes and Finance Contracts, in the notes to financial statements.

Materiality Worksheet

The materiality worksheet allows the user to use activity provided directly from the companies accounts together with any additional items the user fees important and uses the percentages based on the defaults or percentages provided by the user to calculate what the materiality is. Double click in the notes column next to the Used or Not Used lines to define the sections to be used in calculating the materiality.

File Closing

For file closing, the user must select the Yes, No or Not Applicable options for each item in the list and double click to have the date inserted beside each corresponding item. Now that all sections have been completed for the working papers, and the signing and dating is completed on the first page (index page) and all bookkeeping and tax calculations have been completed and the schedule 100 and 125 of the T2 return agree to the bookkeeping totals of the company trial balance, the working papers can be printed for the file. (See Print Working Papers under the Working Paper Menu)

Edit Adjusting Entries

If the month end routine has been completed for the last month of the year, it will be necessary to enter any year end adjustments in this section. The journal works exactly the same as the general journal, but the data is save in the 14th period specifically designed for adjusting entries. When the general ledger printed for this period, it will reflect only the adjusting entries made, and will not include the balance of the transactions for the last month of the year.

Print Adjusting Entries

The report for adjusting entries displays the adjusting journal entered and will be used to back up the working papers and the balance of the activity of the companies bookkeeping.

All reports have separate print defaults allowing the user to define what defaults to use for each report and which printer to use for each. If you want all reports to print to a specific printer, select the printer and click the check box below the print device that says 'apply selected printer to all reports'. Now if you want a specific report to print to a PDF or another printer, select the PDF writer you are using or the other printer and click Save. This will save the new selection for this report only. To start, the defaults are set from the file “Sample Corporation” included with the system. The user may now change defaults to suit their preferences.

Balance Sheet

The balance sheet can be printed in basic format or formal format with a number of options available. Some of those options are, rounded off to the nearest dollar, comparative, bold current column, lines across the full page instead of underscores, and current or prior years.

Income & Expense Statement

The Income statement can be printed in basic format or formal format with a number of options available. Some of those options are, rounded off to the nearest dollar, comparative, bold current column, lines across the full page instead of underscores, with or without percentages, sub statements, include retained earnings or not, current month and year to date, and current or prior years.

Sub Statement Names

Some companies may wish to departmentalize your business. In so doing, the system allows the printing of sub income statements. To make the presentation more factual, this routine allows the user to create individual sub account names which will print at the top of the income statement.

Statement of Retained Earnings

The Statement of Retained Earnings is a separate report for retained earnings other than including the report at the bottom of the income statement. It can be printed singularly or comparative.

Changes in Cash Position

Changes in cash position can be printed comparative or not, bold for the current column, and rounded to the nearest dollar, but it must first be viewed on the screen to allow the user to check the figures before printing the report.

Changes in Working Capital

Changes in working capital can be printed comparative or not, bold for the current column, and rounded to the nearest dollar, but it must first be viewed on the screen to allow the user to check the figures before printing the report.

Notes to Financial Statements

The current column of the notes can be printed in bold as the other statements and can be printed rounded off, and comparative. If the balance sheet has been set to comparative, italic and bold current year, the notes, income statement and cash flow will also be defined the same. A change to one will change the others. To clear any other notes of the current year, click the 'Delete Current Year Notes' and then click Document Type as Basic Financial Notes – Pre-Defined. From the pick list on the right, select the notes you wish to have the system create automatically for you. Click on Save and then click 'Create or Edit Notes'

Once the notes have been created the user will be returned to this page. It is best to click View and review the notes prior to saving them for CRA or to print and include with the financial statements.

To prepare notes for CRA, click the T2 button and the system will advise you of the file created and where it is located. Load the file with 'Word'. Once it is loaded, highlight the entire report, click on layout, select margins, select narrow. Not click Home and font and select 'Courier New' and font size as '9'. The layout will not format properly to a page. I prefer to bold the company name and change its font size to 12. I also prefer to bold all the not headings. Once this has been completed, select all the notes and press Control C. Move the notes on the T2 return and press V. It will be necessary to delete the first line on the T2 notes as the print commands are copied as well and they are not needed. Now you have all the notes save on the T2 return.

The system will create a list of notes from the pick list defined on the previous page and create a not similar to the one above. Each not may be edited or deleted as the user decides or the notes can be deleted and the function can be run again. Also, the user may wish to create individual notes manually and can do so using the form above.

Budget Income Statements

The budget income statement is a report that can be printed at any time in the same manner as the income statement. It will display the general ledger account, the current actual figures, the current budget figures, the variance and percentage of variance. If a comparative statement is printed, the report will continue with the current year to date actual amount, the year to date budget figures, the amount of variance and percentage of variance.

Financial Analysis

The reports created in the financial analysis consists of: the financial ratios, the gross margin ratios, and the zeta scoring system. The reports can be printed comparative or not but are an automatic printout from data of the company.

Summarized Accounting Course

The Accounting Cycle

The purpose of the accounting cycle is to put a logical order to all the documents and begins with the source documents. These documents consist of cheques, invoices, receipts and anything else that may have financial information on it.

1. The first step is to record these documents on to a journal or book of original entry. There are a number of possible journals that may be used.

General Journal – allowing for entries as debits and credits with an explanation of the entry used primarily for general transactions that do not fit in other defined journals. Debit simply means the left side of an entry and Credit the right side of an entry.

Sales Journal or Invoice Register – allowing for the input or creation of sales invoices on account itemizing the items being sold, the number and amount together with respective taxes involved. This journal will normally involve cash or accounts receivable as well.

Cash Receipts Journal – allows for input of monies received on account. This refers to the payments received from customers which are applied against the invoices set up in the Sales Journal.

Purchase Journal – allowing for the input of purchase invoices received from creditors or suppliers also know as vendors or accounts payable accounts.

Cash Disbursements Journal – allows for the entry and/or printing of cheques for payments to vendors covering the payments of invoices set up in the Purchase Journal or for other sundry payments.

Cash Register Journal – allows for the recording of transactions from a till register or cash register tape and consists of sales itemized to suit the user together with respective taxes and offset with payments made by cash, credit card or by charges on account.

Standard Entries – allows for setting up re-accruing entries that are posted each month. These entries may include such entries as expensing a portion of prepaid expenses, monthly lease payments, or rent expense.

There are other types of journals the industry has developed over the year but they are all a combination of the journal listed above. In addition, now that much of the bookkeeping is completed using computer programs, some of the steps are being completed automatically by the computer software.

2. The next step would be to post the items from the respective journals to a ledger. A ledger allows for similar items being posted to similar accounts.

A General Ledger would be organized as assets first, liabilities second, capital third, revenues fourth and expenses last and would consist of separate Cash accounts, Bank accounts, Payable accounts, Sales and Expense accounts.

An Accounts Receivable Ledger is a subsidiary ledger of customers, the total of which would be equal to the general ledger account for accounts receivable.

Similarly, an Accounts Payable Ledger is a subsidiary ledger of vendors, the total of which would be equal to the general ledger account for accounts payable.

3. The totals from each of the accounts in the general ledger would be summarized on a work sheet. The work sheet has columns for the trial balance, adjustments, adjusted trial balance, balance sheet items and income statement items.

The first two amount columns of the work sheet are for the trial balance which must balance meaning that all debt accounts equal all credit accounts.

The next two columns relate to the adjusting entries so that some accounts will go up or down with entries made to properly adjust accounts. One entry may be to record the amortization of capital assets which would affect the expenses and accumulated amortization in the asset accounts. Another may be to set up additional bonuses for payroll or to set up the provision for taxes of a corporation.

The columns for the adjusted trial balance relate to the total of the trail balance amount plus or minus any activity in the adjustment columns. Sometimes these two columns are skipped and the amounts are transferred directly to the balance sheet and income statement columns.

The next step is to allocate items from the adjusted trial balance column to the balance sheet or income statement columns. Once this is completed, the columns for the balance sheet and income statement must be totaled, but normally the debits and credits will not balance because the difference is the profit or loss for the period. Once the profit or loss has been recorded on the balance sheet and income statement, the columns will now be balanced.

4. From the work sheet, the financial statements can be prepared. The balance sheet is a statement of worth at a particular time. The income statement consists of two types, a single step and a multiple step statement and reflects the activity of a company for a period of time, being a month, a quarter or a year. It indicates the profit or loss during the time period and indicates whether the company is doing well or not and whether it is making money or not.

5. Once the balance sheet and income statement are completed for the year, the books of record have to be closed. This closing clears all income and expense accounts, or nominal or temporary accounts, to the capital or retained earnings account on the balance sheet. The final step, if used, is to post the closing entries.

6. A few of the above steps have to short cut or eliminated due to computer programs simply because the software handles the routine behind the scene. Now that the full cycle has been completed a new cycle will start for the next month, quarter or year.

Adjunct and Contra Accounts

An adjunct account is one that adds to another account whereas a contra account is one that subtracts from another account. An adjunct account may arise where a customer has two separate accounts one of which is added to the other. Adjunct account is an account that would add to another account instead of a contra account that subtracts from another account. Freight-in would be another example of an adjunct account because it adds to the value of purchases. A contra may be one where the business has a customer who is also a vendor. The amount due from and due to could be combined as a contra to allow for a net receivable or payable.

‘T’ Accounts

‘T’ Accounts refers to a number of large ‘T’s written on a page approximately 2.5” or 6 cm square. On the top of each ‘T’ an account name can be written. The left side of the ‘T’ is the Debit side and the right side is the Credit side and it is used to figure out the result of certain transactions. For assets, the left side of a ‘T’ Account is the plus side and the right side is the minus side. For liabilities and equity. the left side of a ‘T’ Account is the minus side and the right side is the plus side. In the case of the drawing account for unincorporated companies, the left side of the ‘T’ Account would be a plus and the right-side a minus.

Example: Company ABC makes a sale of $1,000 and the customer charges it. The customer then makes a payment of $400 on account which is deposited in the bank. There would be three ‘T’ Accounts set up with Bank above one, Accounts Receivable above a second and Sales above the third. For the sale, $1,000 would be placed on the right side of the Sales ‘T’ and $1,000 would be placed on the left side of the Accounts Receivable ‘T’. For the payment on account, the $400 would be placed on the right side of the Accounts Receivable ‘T’ and the $400 would be placed on the left side of the Bank ‘T’. Once this is completed the user can see that there is $400 in the Bank account, $600 net in Accounts Receivable and $1,000 in Sales.

This is the use of ‘T’ Accounts, to give the user a better understanding of what has transpired and to think through some concepts. This simple routine can be used throughout the users accounting or bookkeeping life to understand the result of other transactions prior to recording them in a journal.

Basic Accounting Equation

Assets = Liabilities plus Equity (Capital or Net Worth or Proprietorship) or Assets – Liabilities = Equity (Capital or Net Worth or Proprietorship)

Assets - The definition of an asset is anything you own. Some assets would be cash, accounts receivable, and equipment. The accounts receivable account is considered a control account as it is used in conjunction with a subsidiary ledger which is a list of individual customers who owe money to the company. Assets are normally debits or on the left side of ‘T’ Accounts.

An Allowance for Doubtful Accounts is also listed in the asset accounts but is always a credit balance account. It represents the estimated or actual amount of uncollectible customer accounts and is considered a contra account. On a balance sheet the accounts receivable may be listed as Accounts Receivable – Net in which case the accounts receivable balance and the allowance for doubt accounts have been combined to produce a net amount.

Liability - The definition of a liability is anything you owe. Some liabilities would be accounts payable, salaries payable, loans payable, and shareholder’s loans. The accounts payable account is considered a control account as it is used in conjunction with a subsidiary ledger which is a list of individual vendors who the company owes money to. Liabilities are normally credits or on the right side of ‘T’ Accounts.

Equity - The definition of equity is the deference between the assets and liabilities and indicates the net value of the company. Some equity accounts for corporations are share capital and retained earnings. For proprietorships or partnerships, one account would be capital. Equities are normally credits or on the right side of ‘T’ Accounts.

All these accounts are considered fixed or permanent accounts as they may continue to have balances from period to period.

Nominal or Temporary Accounts – These accounts refer to all income and expense accounts or income statement accounts. Again for ‘T’ Accounts, the left side for revenue accounts would be a minus and the right-side a plus. For expense accounts, the opposite is true. The left side of the ‘T’ Accounts would be a plus and the right-side a minus.

Drawing – The definition of the drawing account is for unincorporated companies and reflects the monies drawn out of the business and would reflect a decrease in the capital of the business. This account may also be used during the year to record investments into the business by the owner by an amount recorded on the right side which would be an increase in the value of the business.

Revenue – The definition of revenue is the monies taken in for the service or product provided. An increase in revenue is an increase in the capital of the company.

Expense – The definition of expenses are those things that are required to keep a business running. There may be many expense accounts, but an increase in an expense account is a decrease in the capital of a company.

All these accounts are called nominal or temporary accounts because they will be closed at the end of the accounting period to the capital account.

Chart of Accounts

The basic order of items listed on a chart of accounts is Assets first, Liabilities second, Equity third, Income forth and Expenses fifth. In addition, assets are listed in a specific order as well. Normally they are recorded in the order of what may be liquidated easiest to the hardest, so that Cash would be at the top and Goodwill at the bottom. The same is true with liabilities in that items that need to be paid first such as accounts payable are at the top of the list and the long-term liabilities such as a mortgage payable would be at the bottom.

Adjustments

Adjustments are needed to apply accrual accounting covering items that cover more than one accounting period. There are four main areas where adjustments are necessary. One relates to costs such as prepaid expenses, another is revenue claimed in advance, unrecorded expenses such as wages earned but not paid and forth the unearned revenues.

Accounts Receivable

In reference to accounts receivable, it is possible some of the individual sub accounts are uncollectible or doubtful. To adjust for the doubtful accounts, an adjusting entry is set up as a debt to bad debts and a credit to allowance for doubtful accounts. Allowance for doubtful accounts is an asset account following the accounts receivable account. It has a credit balance creating a net amount of good collectible receivables. This amount could be an estimated amount as it is reasonable to assume a 100% of the receivables is collectible due to bankruptcy, disputes or inabilities to pay by customers.

Inventory

Inventory is regularly adjusted with purchases in cost of sales. Inventory is adjusted to its actual balance as at period end as a debit or credit with the offset to purchases in cost of sales as a credit or debit. This has the affect of adjusting material costs in relation to the sales made contributing to the proper gross profit.

Work-In-Progress

As for inventory, work-in-progress must also be adjusted to its correct balance as at the end of the period to adjust the proper cost of sales and gross profit.

Supplies on Hand

Supplies on hand should be adjusted for the used portion of the supplies which would be expensed to Supplies. Depending upon the size of the company supplies may be included in cost of sales or operating expenses.

Prepaid Expenses

An example of a prepaid expense could be where $1,800 of insurance was paid covering a full year’s insurance. Since only $150 of this amount is actually used in each month, the adjusting monthly entry would be a debit to the insurance expense and a credit to the prepaid expense account, reducing the amount left in the prepaid expense account to $1,650 at the end of the first month. This would continue month by month throughout the year and would be used up in the last month. Note the twelve-month period does not have to coincide with the fiscal year of the company so at the year end of the company, there could be an amount of prepaid insurance still carried forward into the next fiscal year.

Amortization

Amortization would be calculated on each of the classes of capital assets the company owns using the rates adopted by the company, usually the government rates, for which a credit would be entered to accumulated amortization with the debit in the expenses as amortization of capital assets. The difference between the original cost of the capital assets and the accumulated amortization is the book value or undepreciated cost of the capital assets. This amortization could extend to incorporation costs and other intangible assets like good will and franchise costs. The amortization on these types of assets would be debited to amortization of intangible assets.

Unrecorded Expenses

An example of an unrecorded expense could consist of wages, say in a bi-weekly period employee whom would earn $3,000 per period of which $2,000 is incurred but not paid at the end of the period. The adjusting entry would debit wage or salary expense and credit wages or salaries payable for the $2,000. This allows for the cost of wages or salary to affect the current period profit thereby showing the correct profit for the period involved.

Unearned Revenues

An example of unearned revenue could be where a customer pays $2,400 for a contract of which the work has not been done. As the work is completed an adjusting entry is need to debit unearned revenue and credit revenue transferring the completed portion of the contract to income instead of a liability. This would continue month by month throughout the year until the contract is fulfilled. Note the period could continue past the fiscal year of the company forward into the next fiscal year.

Asset method or the Expense method.

In the asset method, an item such as supplies in the amount of $200 would be purchased creating a credit to cash or the bank account and a debit to supplies on hand. At the end of the period, an adjusting entry would be completed crediting the supplies on hand account for the used portion, say $25, which would be debited to the supplies expense account.

For the expense method, the same item of supplies of $200 would be purchased creating a credit to cash or the bank account and a debit directly to the supplies expense account. In this instance, however, if there are supplies still on hand at the end of the period, such as $175, the supplies on hand account would be debited for $175 and the expense account would be credited. The end result of both methods is the same but the process different.

Some of these adjustments will involve GST/HST and these calculations must be included in the adjustment were necessary. These entries made in one period may have to be reverse in the next period. This function is called reversing entries.

Reversing Entries

In reversing entries, as in the wage transaction mentioned above, the amount set up as unrecorded expense at the end of the prior period of $2,000 would be reversed in the current period as a debt to wages payable and a credit to the wage expense account. Since the employee’s regular pay of $3,000 would be paid out in the new period creating a $3,000 expense, the $2,000 reversal to the wage expense account would net to a wage expense of $1,000 in the new period.

Other adjusting entries as well may be reversed in the new period and new adjusting entries set up at the end of the new period in the same manner as in the prior period. This function can be preformed each and every period.

Closing Entries

In closing entries, all income and expense accounts would be closed to retained earnings or summary accounts. JADE Software Systems Inc. does this automatically by creating a new general ledger for the new fiscal year leaving the prior year general ledger and journal entries for future reference.

Methods of Amortization

There are several methods of amortization. One is the straight-line method, another is sum of years digit and also double declining.

The purchase price of an asset is its original cost. The estimated life of the asset must be calculated along with it salvage value at the end of its useful life. In the case of a truck used exclusively for business purchased at $30,000 for which it is assume will last about 5 years and be worth $4,000 at the end of 5 years.

Straight-line method

Using the straight-line method for the truck purchased above, the amortization would be calculated as $30,000 less the residual at the end of 5 years of $4,000 for a value of $26,000 amortized over 5 year being $5,200 per year. The book value or undepreciated value at the beginning of the 5 years would be $30,000 and at the end of the first year $24,800.

Sum of year’s digit method

In the sum of year’s digit method, the sum of the years to be amortized such as the 5-year indicated above would be calculated as 5 + 4 + 3 + 2 + 1 for a total of 15. So, for the first years amortization the rate would be 5/15 x $26,000 (the cost minus the residual or salvage value) for a total of $8,667, the second 4/15 x $26,000 for a total of 6,933, the third 3/15 x $26,000 for a total of $5,200, the forth year 2/15 x $26,000 for a total of $3,467 and the last year 1/15 for a total of 1,733. The total of all the amounts of amortization add up to $26,000 leaving a value of $4,000, the salvage value.

Double declining method

In the double declining method, the amortization rate would use a calculation from the straight-line method such as 1/5 or 20% which is then doubled to 40%. This rate can not exceed 50% so any calculation in excess of 50% would default to 50%. So, in year one the amortization would be 40% of $30,000 (not deducting anything for salvage value) for a total of $12,000 leaving an undepreciated value or book value of $18,000. In the second year, 40% of the remaining value of $18,000 is $7,200 leaving an undepreciated value or book value of $10,800. In the third year, 40% of the remaining value of $4,320 leaving an undepreciated or book value of $6,480. In the fourth year, 40% of the remaining value of $2,592 would be less than the salvage value so the amortization in the forth year would be $6,480 less the salvage value of $4,000 for an amount of $2,480. In the fifth year, no amortization would be calculated because the salvage value was reached in year four.

Canada Revenue Agency method

This amount is not really a method but is used for many smaller corporations because it simplifies the calculations as they compare directly with CRA rates. These rates are outlined on the CRA website or in many of the publications regarding capital assets and the amortization of such assets. This calculation using the same asset as in the prior methods would be a 30% rate on the diminishing undepreciated or book value using the 50% rule for the first year so the first-year amount would be 15% of the $30,000 being $4,500 leaving an undepreciated or book value of $25,500. In the second and all future years until the assets is disposed of, the rate would be 30% of the remaining undepreciated or book value.

General Journal Entries

Recording general journal entries there is a date column, a description column and debit and credit columns. The debit(s) are normally on the first line(s) with the credit on the following lines indented. The explanation is on the following line(s). JADE Software Systems Inc. has all these columns and allows for a large explanation section for each journal entry.

Accounts Receivable

Accounts receivable are short term monitory assets and are sales to customers for credit and is referred to as trade credit therefore these types of receivables are referred to as accounts receivable trade. Some rates used for this type of credit is 2%/10 days meaning a 2% discount if paid in 10 days or net 30 meaning net amount due in 30 days with no interest charges. To calculate the actual cost of paying in 30 days for all sales during the year the customer would be incurring 36% interest. So, 30 days less 10 for the discount period the customer is losing 2% to buy the next 20 days. Therefore 365 days divided by 20 equals approximately 18 periods at 2% for a total of 36%.

Some customers can not or refuse to pay and these accounts are referred to as noncollectable or bad debts. All businesses have to deal with noncollectable receivables but it is unknown at the time of sale, as to which sales will be noncollectable What ever method is used to calculate an allowance for these doubtful accounts the allowance for doubtful accounts is a contra to the accounts receivable account. This allowance would show the estimated amount of receivable that will not be collected and the difference between the accounts is the net receivables. Other names for the same account are allowance for bad debts or allowance for noncollectable accounts.

There are two main methods of calculating the estimate for bad debts, one being a percentage of net sales and the other the accounts receivable aging method. Using past experience as a basis for the percentage of noncollectable receivables, such as 2% for the past year, it can be assumed that 2% of the current year sales will be noncollectable As a result, an adjusting entry may be recorded as a credit to allowance for doubtful accounts and debt to bad debts. Keep in mind that GST/HST may be part of this entry on the expense side.

In the accounts receivable aging method, the accounts would be broken down into categories as to how far past due they are and an estimated percentage, based on past experience, of each aging group applied to the amount in that group. The total of each of these calculations is the total amount of doubtful accounts. The bad debt account would be debited for this amount and the allowance for doubtful accounts would be credited. If the allowance for doubtful accounts already has a balance, the entry would be to debt or credit allowance for doubtful accounts to equal the calculation with the net amount credited or debited to bad debts. Again GST/HST could be involved with the bad debt expense account.

To write off a bad debt, for an account of $2,500, the allowance for doubtful accounts for $2,500 would be credited with $2,500. If no allowances were set up, the company could be using the direct charge off method, the debit would be bad debts directly and the credit accounts receivable. In the case where an account is collected or partially collected, say $1,000 of the $2,500 after being written off, the entry would include a debit to accounts receivable and a credit to allowance for doubtful accounts. The actual receipt of funds would be a debit to cash and a credit to accounts receivable. Again, in the case where there were not amounts set up for an allowance, the accounts receivable account would be debited and the bad debt account would be credited. The direct charge off method is not in good accounting practice because it does not make any attempt to match revenue and expenses. GST/HST could be involved with the bad debt expense account. Both of these principals are acceptable for tax purposes but not for (CASPE) Canadian accounting standards for private enterprise.

In the case of credit balances, the total of all the credit accounts should be shown as a current liability. The title accounts receivable on the balance sheet should be reserved for sales made to regular customers in the ordinary course of business. Loans receivable to employees or other parties should be categorized as such and not included in accounts receivable.

Financial Statements

The purpose of financial statements is to summarize and compile all the financial information that has been generated from source documents through the accounting cycle. The two major financial statements are the balance sheet and the income statement. Financial statement should be understandable to those using the statement, so they should outline enough information without being confusing. There are three main reasons for preparing financial statements:

1. One would be to provide information to make purchase or investment decisions.

2. Another would be to provide information regarding cash flow. There is a difference between a company making revenue and having enough money to operate.

3. Also, to provide information about the change in various accounts to analyze the changes in financial position.

External Financial Statements

External Financial Statements are financial statement prepared for third parties or parties outside the company. This may be the bank who is trying to make a decision to lend money to the company or to stock holders to make a decision to purchase shares of the company. So, this end, a set of financial statements would consist of a balance sheet, income statement, cash flow statement (was once reported as changes in financial position) and notes to the financial statements to better clarify certain items on the balance sheet or income statement.

Classified Balance Sheet

Classified Balance Sheet has three main areas, assets, liabilities and capital. Under assets there are for main categories, current assets, investments, property and equipment and intangible assets.

Assets

1. Current assets by definition are those assets that will be converted to cash or used up in the course of a year or the operating cycle of a business. The normal period used is a year but it could be the normal operating cycle of the business where cash is invested into product, the product is sold and the cash is collected from customers which defines the operating cycle. A longer operating cycle could be defined where cash is invested into some form of property which takes a number of years to sell and convert back to cash.

2. Investments category are generally investments of a long-term nature, invested for more than one year and are not used in the general operation of the business and management do not intend to convert into cash within the next year. These investments could be property purchased for future use by the company to build on or equipment not used in the business operation.

3. Property and equipment also of a long-term nature, but used in the operation of the business. This would be the buildings, equipment both office and other a well as vehicles used in the continuing operation of the business. They are also called operating assets, fixed assets, capital assets, tangible assets or long lived asset.

4. Intangible assets are assets that do not have a fiscal substance but is more of a legal concept that has value. Some items considered to be intangible would be patents, copyright, incorporation costs, goodwill, franchise or other no tangible items.

Under liabilities there are two main categories, current liabilities and long-term liabilities.

Liabilities

1. Current liabilities are those liabilities that will be paid off in the course of a year or the operating cycle of a business. They are normally paid from current assets or by incurring new short term liabilities. That is why it is important for a business to recognize its current assets and current liabilities. More current liabilities than current assets may indicate that the business may have difficulty over the next year to pay its debts. In instances where a short-term liability is paid off using another short-term liability would be where a line of credit would be incurred to pay off other short term debt.
   
   This section consists of accounts payable which will go up and down as purchases of goods and services are done and payments are made, note payable which generally have interest terms and are for a term of less than a year, wages payable, and taxes payable. Another may be customer deposits or unearned revenue and it is considered a liability because a customer is paying for a service or product in advance and the service or product has not yet been delivered.

2. Long term liabilities are debts of the business that extend beyond one year or are paid out of long term assets. Mortgages payable, long-term notes, bonds payable or leases payable all payable over a period or years.

Owner’s Equity (Capital or Net Worth or Proprietorship)

The owner’s equity section using any of the names above is the same, however the owner’s equity section will be different depending upon whether the business is organized as a sole proprietorship, partnership or corporation.

Balance Sheet Preparation

In preparation of a balance sheet the heading consists of the company name, balance sheet and specific date. The balance of the format consists of the assets, liabilities and equity as defined above. It is also important to make sure the statement is in proper for with headings in the proper positions, single lines and double lines under the correct amounts, and the columns are correct. Formats change from time to time in the accounting industry, but many accountants use the one they prefer the most.

Classified Income Statements consist of separate forms, the multiple step form and single step form. A single step form may be simple to follow, but may not provide enough information whereas the multiple step form may provide all the necessary information but be difficult to follow.

Operating Expenses

1. Operating expenses consist of selling and general administrative expenses. Selling expenses includes all expenses for storing or preparing goods for sale.

2. General and administrative expenses include general office, salaries, accounting, interest expense, collections and other general.

Income from operations

The income from operations equals the excess of sales over operations. Sales minus cost of goods sold, equals gross profit. From gross profit, all expenses would be deducted creating the net income or net profit. If expenses exceed gross profit, the result would be a net loss.

Financing Revenue or Other Revenue

This consists of interest, dividends or other forms of income related to investments or income not related to operations.

Financing Expenses or Other Expenses

Other expenses relate to items not associated with the operation of the business including interest on borrowed funds as it is considered financial instead of operating.

Using Classified Statements

Two of the main goals of management are maintaining adequate liquidity and achieving profitability. Liquidity is the ability to convert assets quickly to cash on the short term or to be liquid. Solvency, however means is there enough assets or equity to continue in business over a longer period of time. Profitability means being the ability to stay in business for the long term.

Income Statement Preparation

In preparation of an income statement, the heading consists of the company name, income statement and for a period of time such as one month ended, six month ended of for fiscal year ended. The single step income statement format consists of the net sales, cost of goods sold, and operating costs as defined above. Net sales, consists of sales minus sales returns and allowances and sales discounts. Net purchases, consists of purchases minus purchase returns and allowances, purchase discounts.

The multiple step income statement has the same heading but has more detail in each of the areas of the statement such as itemizing the separate sales categories, cost of sales categories and expense categories. In the cost of goods sold section, this would be broken down to opening inventory, net purchases and freight in equals, goods available for sale. From this amount, the closing inventory would be deducted leaving a balance as cost of goods sold. Total sales minus cost of goods sold gives gross profit. Next is listed the operating expenses including selling expenses and general and administrative expenses. Gross profit minus total operating expenses is total profit or loss from operations. Finally, the other revenues and other expenses are itemized under the respective headings. The amount added to or subtracted from income from operations would indicate the net income or net loss for the period.

It is also important to make sure the statement is in proper for with headings in the proper positions, single lines and double lines under the correct amounts, and the columns are correct. Formats change from time to time in the accounting industry, but many accountants use the one they prefer the most.

In classifying the elements of financial statements the primary distinction between revenue and gains is the nature of the activity that gave rise to the transaction involved. Keep in mind that revenues extend from business operations where as gains are the result of selling assets, capital assets or investments, that were sold for more than the purchase price.

Financial Ratios

Working Capital

Working capital is simply the difference between current assets and current liabilities. It is an indication of liquidity as previously discussed.

Current Ratio

The current ratio is calculated by dividing current assets by current liabilities and provides comparability from year to year indicating a measure of short-term solvency as well as a measure of the margin of safety that management maintains To allow for the inevitable unevenness of the flow of funds. In general, current ratios should be about 2 to 1. It is best to compare this ratio with other business in the same industry to see if certain things should be improved to match industry standards.

Quick ratio (acid test ratio)

The quick ratio is obtained by dividing current liabilities into current assets minus inventories. Use this ratio to estimate the ability of a firm to pay off its short-term obligations without having to sell inventories. In general, the current ratio should be about 1 to 1.

Profitability

Profitability is the primary goal of all business ventures because without profitability the business will not survive in the long run. Profitability is measured with income and expenses. Income is money generated from the activities of the business. Expenses are the costs of resources used up or consumed by the activities of the business. Profitability is measured with an “income statement” which is essentially a listing of income and expenses during a period of time (usually a year) for the entire business. An Income Statement is traditionally used to measure profitability of the business for the past accounting period. A “pro forma income statement”, however, measures projected profitability of the business for the upcoming accounting period. A budget may be used to project profitability for a particular project or a portion of a business.

Profit margin

A ratio of profitability calculated as net income divided by revenues. It measures how much of every dollar of sales a company actually keeps in earnings. Profit margin is useful when comparing companies in similar industries in which a higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors.

Return on assets (Return on owner’s investment)

The return on assets is an indicator of how profitable a company is relative to its total assets. It is calculated by dividing net income by total assets and is displayed as a percentage.

Capital structure

Capital structure is a combination of a company's long-term debt, specific short-term debt, common and preferred equity as well as retained earnings divided by total assets. The capital structure is how a company finances its overall operations and growth by using different sources of funds.

Receivable turnover

Receivable turnover is a measure of the relative size of accounts receivable in affect of the credit policy and is calculated as sales divided by the average accounts receivable for the same term. Where possible the base should be credit sales with average receivables including trade receivables plus trade notes receivable.

Average days sales collected

Days in year divided by the measure of time to collect an average receivable equals the average days. The collection period can be related roughly to the credit terms offered by the company. The rule of thumb is that the collection period should not exceed 1 1/3 times the regular payment period. There are a great number of exceptions but the ratio may indicate changes in the company's credit policy or in its ability to collect receivables.

Inventory turnover

Calculated using cost of goods sold divided by the average inventory (divide opening and ending inventory /2). A larger number is more attractive and is an indication of the velocity with which merchandise moves through the business. A decrease in the ratio may be a significant danger signal.

Gross profit percentage

Obtained by dividing gross profit by net revenue and indicates the average markup or margin obtained on products sold. Gross profit relates to revenues less costs of goods sold. Cost of goods sold includes variable and fixed costs directly linked to the product.

Labour to Sales Percentage

This ratio is obtained by dividing total labour and benefits by sales as a measure of percentage of labour to total sales.

Profit margin percentage

Net income divided by sales and is a measure of over-all profitability and is expressed as a percentage as 50% or ½ ratio or .50. This is not a true measure of the company's performance as it does not reflect the amount of investment utilized in earning the income.

Asset turnover

The amount of sales generated for every dollar's worth of assets. It is calculated by dividing revenue by assets. Asset turnover measures a firm's efficiency at using its assets in generating revenue - the higher the number the better. It also indicates pricing strategy: companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover.

Earnings per share

Earnings per share (EPS) represents the portion of a company's earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock. The amount is calculated by dividing net income earned in a given period (usually quarterly or annually) by the total number of shares outstanding during the same term.

Current Debt-to-Equity Ratio

Obtained by dividing debt by equity and shows the firm's obligations to creditors, relative to the owner's funds. Debt to equity ratio is a ratio indicating the relative proportion of equity and debt used to finance a company's assets. This ratio is also known as risk or leverage and is equal to total debt divided by shareholder’s equity.

Long-term Debt Ratio

Obtained by dividing non-current liabilities by total non-current liabilities plus owner’s equity.

Please note that the above ratios are only a guide and that to obtain a true evaluation of your business it will be necessary to compare the ratios of your business with ratios of other identical types of businesses. What may be excellent for one type of business may be poor for another. If you require further assistance you are advised to request such help from your accountant whom may be able to give additional management guidance.