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Many fundamental
accounting functions in Clients & Profits X are customizable
These options give you more control over how the accounting system operates.
With these accounting preferences, you can enable or disable the General
Ledger, client balances, vendor balances, and automatic media WIP entries.
It also includes settings for standard billing rates, sequentially numbering
journal entries and A/R invoices, and more.
Normally, all of your accounting preferences would be enabled (i.e.,
the General Ledger, A/P, and A/R balances wouldn’t be disabled).
So when would they ever be disabled?
 The
General Ledger would be disabled if your company used a separate
G/L accounting system and didn’t need to print financials
from Clients & Profits X.
Selecting the disable G/L journal entries option prevents journal entries
from being made while posting. If you don’t use the General Ledger
in Clients & Profits X, then you don’t need journal entries.
Disabling journal entries keeps your database from growing with unneeded
data. It also makes posting faster, since there’s less work to do.
Later, you can enable G/L journal entries anytime if you decide you need
financial statements.
The
A/P balances would be disabled if your company didn’t
pay its own bills (for example, if your department was part
of a larger organization with its own payables accounting and
checkwriting system).
Selecting the disable vendor balances option keeps Clients & Profits
X from maintaining up-to-date vendor balances. If this option is set,
posting A/P invoices (or checks) won’t affect a vendor’s balance—its
balance will always be zero. If you don’t need to track unpaid payables,
use this setting. You can change your mind anytime—just use the
verify/recover A/P account balances utility to recalculate your balances.
The
A/R balances would be disabled if your company worked with
in-house clients only, and didn’t track client payments.
Selecting the disable client balances option keeps Clients & Profits
X from tracking client account balances. If this option is set, posting
A/R invoices (or client payments) won’t affect a client’s balance—its
balance will always be zero. If you don’t need to track accounts
receivable, use this setting. You can change your mind anytime—just
use the verify/recover A/R account balances utility to recalculate the
client balances.
The
names of your account classes (i.e., Equity, Income, etc.)
are customizable, although most agencies don’t change
them. You can change these names by choosing Account Classes
from the pop-up menu after editing your Accounting preferences.
Setting default billing rates
The default billing rates setting determines
which billing rate will be used throughout Clients & Profits
X. The always use staff billing rates is a default, or standard,
setting. The actual billing rate you’ll use can be changed
for each time entry. Use this setting when your billing rates
are primarily based on who does the work. Note: this cost rate
is always based on an individual staff member. These settings
can be changed anytime; if so, you’ll have the option to
update existing job tasks.
Select always use client billing rates when your billing rates are primarily
based on the client, not who does the work. Since each client can have
many difference billing rates (based on different job tasks), the billing
rate on a time entry can vary. In any case, the staff billing rate will
be ignored.
Select always use task billing rates when your billing rates
are primarily based on an individual job task, not who does
the work or the job’s
client. The billing rate is copied from the Task Table to new job tasks
when they are saved, but they can be easily changed (double-click on
a job task in the Job Ticket window). When a time entry is added, the
billing rate will be copied from the job task only. The staff and client
special rates will be ignored.
Enabling automatic media WIP entries
If your shop handles a lot of broadcast media,
then clients are typically billed in advance. Media invoices
are created automatically from broadcast orders, either from
one order or in batches by client. When media invoices are posted,
they can create media work in progress accruals automatically.
Media accrual journal entries are posted with the media invoices. These
entries debit a special media WIP account in the General Ledger, which
appear on your financial statements. These accruals automatically account
for the estimated cost of the media being billed. Both the Balance Sheet
and the Income Statement show balances from the media WIP accrual accounts.
Later, when the vendor’s invoice finally arrives, it is
added into a special Add Media Payables window in Accounts
Payable. The media payables window prompts the user to enter
the broadcast/insertion order number, which is used to reconcile
the media buys. When the media payable is posted, reversing
media accrual entries are created automatically. The actual
media cost appears on the Income Statement, while the media
accrual total on the Balance Sheet is reduced.
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