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help with cash flow manager

Discussion in 'Money matters' started by monsta76, Apr 20, 2010.

  1. monsta76

    monsta76 New Member

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    hi all. ive only recently started being a bookkeeper. and i normally use myob, and am used to that program, but am doing the books as a favour for a friend of mine who uses cash flow manager.

    recently she paid for a business trip on her personal credit card and not on the business credit card, silly i know! so my question is how should i enter this? would i put it through as a cash purchase?

    this program confuses me. anyone know about cash flow manager?

    any help would be appreciated.

    moni :)
  2. Dardee

    Dardee Active Member

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    I am using Cash Flow Manager for a client of mine and personally, I can't stand the program. But thats what they WERE using (now on MYOB) so I have to live with it.

    What I did with problems like that and for journal entries is to choose a bank account and payment or receipt method (because you have to) and do a 2 sided entry for the one payment. This will have no effect on the bank balance but allows you to enter your transaction.

    eg. choose Cheque payment
    First line is the payment (the expense as per normal)
    Second line do a negative entry to the Shareholders Loan/Drawings/whatever account you use for the same amount.
    Net balance of the transaction NIL to the bank.

    Just remember that in the example I just gave the system thinks you are entering a payment so the expense or payment is entered as a positive figure (the DR) so the payment by the employee/director/etc is a contribution of funds (the CR). If you chose to enter it via the deposits you have to swap the positive and negative amounts so that the payment is a negative and the contribution of funds is a positive.

    I hope I haven't confused you too much. There are probably other ways but that is what I figured out worked for me.
    Last edited: Apr 20, 2010
  3. monsta76

    monsta76 New Member

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    thanks dardee. hhmm bit confusing. maybe i should just get them to give it to their accountant at tax time. although i think that is a bit slack on my behalf hey?! i will have a look and see if i can figure it out.

    thanks again
  4. Melinda B

    Melinda B Member

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    So they didn't reimburse the personal account from the business account for the same amount? That's what we used to do when I was keeping the books for social clubs, if someone paid for something themselves we'd write a cheque from club funds to reimburse them.

    Other than that, I'd write it up as a cash purchase.

    Disclaimer: I'm not a bookkeeper so I could be waaaaaay off here!
  5. Dardee

    Dardee Active Member

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    Good point. I did assume in my prior post that the expense was not reimbursed by the business.
  6. King

    King Well-Known Member

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    I too reimburse myself. The receipt is retained as proof of what the cost was and then it it just shuffling money. Been doing it that way for years and not had my wrists slapped by my accountant yet! (Note not a company set up, just sole trader so this could be an influence)
  7. monsta76

    monsta76 New Member

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    thanks guys. well looking at it now yeah there is a transfer of $1000 to pay the personal credit card (although she said it was for her mortgage, which it wasnt)! but there is still another few hundred that hasnt been reimbursed. so what should i do there?

    also, with this program, she has 3 accounts set up for:
    business chq
    business credit card, and
    cash sales

    if she pays things from her own cash (doesnt have a petty cash system and does not want one) eg postage, staff morning teas etc, would i put those expenses in the CASH SALES account in the payments section under 'total cash payments', then in the receipts section with details 'owners cash' (or similar) and in the 'reciepts not banked'?

    i really think she needs to sort out a better system. especially if im going to continue doing her books! lol!

    omg i hope this makes sense to you guys. its pretty hard to describe it in words, in comparison to looking at it on screen in front of you.

    thanks heaps peoples....im glad i found this website.

    moni
  8. Timmo

    Timmo New Member

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    I started using this software because my accountant said they used it , its pretty simple but if you have used something else it would be tricky . As I have never used anything else I dont know any better , its pretty simple seems like a spreadsheet on steroids . I figured out invoicing and it works well plus I can reconcile and do my own GST figures .

    I would like to know why my aged debtors ( in reports tab ) doesnt show exactly all customers who owe money to my business ?
    Last edited by a moderator: Nov 15, 2010
  9. King

    King Well-Known Member

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  10. nominal

    nominal Active Member

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    Not sure if it is the best way but it works for me.

    I just created an account called 'Owner funds' and whenever I use my personal visa or bank account to pay for business expenses I use this account.bank account

    at some stage I just use the 'transfer funds' to move funds from my bank account to the owner funds account.
  11. Timmo

    Timmo New Member

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    Hi ,
    yes I finalize the invoices when the money has cleared and in my bank account .

    I though aged debtors means debt owed to the business . I need this software to show me all customers who owe me money thats older than 7 days , or 14 days or a month this aged debtors shows current , then 0-30 days 31-60 days 91+ days , but they are all customers who have paid not the bastards who are slow to pay ?
    Must be doing something wrong with my entries , I have had a cashflow guy go over Reconcile part with me and thats all good and balances OK.
  12. King

    King Well-Known Member

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    Try finalising the invoices even before you get the money. This tells the program you have finished working on the invoice.

    When you get paid, what you do then is reconcile to end up with $0 owed
  13. Timmo

    Timmo New Member

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    Dont know if I like the sound of that ? To finalize is to say " amount received " when I haven't received it ? Does this make the Aged Debtors amounts correct ?
  14. King

    King Well-Known Member

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    No the finalise invoice merely tells the program that you have finished adding to it. So finalise = finished creating it.

    So finalising WONT tell the program you have received the money.

    When you get the payment, you go to the invoice and at bottom right you will see where you can put in the amount received and if you want the entry to be recorded in the casflow( receipts part) part of the program.

    You can always create a test invoice for yourself for 1c and test it out, then delete it.
  15. Timmo

    Timmo New Member

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    AH OK I thought you meant the finalize ( amount received ) Yes the finalize in the drop down box ....THANKYOU your a life saver , it works Yahoo !!
    It shows exactly who owes me in a neat little summary ( well the amount isnt so little ) Now I know who to hassle for my money .. Thanks again
  16. King

    King Well-Known Member

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    Glad that is sorted out ;)

    Now you can chase those debtors!

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