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If you look at the top of the screen you will find that there are four coloured books blue,
red, green and black. All accounting transactions are
recorded in books and traditionally they have all sorts of
names, but we like to simplify things here at Accountz and we have broken them down to
just these four. These four coloured books are coordinated
blue for sales, red for purchases, green for transfers and black for journals including
opening and closing balances. The blue and red books are the most important
ones and are used on a regular basis. These are
books that integrate with the VAT return. All transactions including VAT must be entered
into these books.
So let’s look at the blue books (Kav opens the blue books)
The blue books are where you enter your income, these transactions can be sales made on credit
to unpaid invoices or sales that are already
paid to the bank, cash or to paypal. When you later receive
money from unpaid sales you need to enter a green book transfer. Sales can be analysed
to unlimited income accounts, sold in quantities
and via unit prices if you wish. Now let’s look at the red books (Kav opens
the red books)
These transactions can be purchases paid for by cash, credit card, debit card, personally
or if you have payment terms on account to bills unpaid.
Again when you later pay a supplier bill that has
previously been entered to bills unpaid this will be a green book transfer. Expenditure
can be broken down to pre-created expense accounts
or you can easily create your own. Quantities purchased and unit prices can also be used
if desired. Now let’s look at the green books (Kav opens
the green books)
This is where you move money around, they have been described as one line journals though
you don’t have to let this put you off they
are really useful. For instance if you have withdrawn money
from the bank to top up petty cash this would be a transfer from bank to petty cash. There
is an example of this on the screen. Also in the
green books you would enter monies received from
customers that have previously been posted to unpaid invoices and payments to suppliers
that have previously been posted to bills unpaid account.
Let’s look at the black books (Kav opens the black books)
The black books are true journals that are generally used by accountants that move amounts
of money between multiple accounts. Or for your
opening balances which are covered in the opening
balances video. But they are really simple, generally the black book is for accountants.
So a quick recap blue for money coming into your business, red for all of your money going
out from your business, green for money that moves
around your business and when you make payments to
your bills unpaid and when you receive payments from your unpaid invoices and the black books
traditionally used by accountants it is full double entry bookkeeping where most users
will just enter their opening balances here.
Ok so that covers the books.