Macro General Contractor

& Trading Plc

Accounting
• Accounting is often called the language of business
• Accounting is the back bone of business
The seven steps in the accounting cycle are as
follows:

• Identifying and Analysing Business Transactions.

• Posting Transactions in Journals.
• Posting from Journal to Ledger.
• Recording adjusting entries.
• Preparing the adjusted trial balance.
• Preparing financial statements.
• Post-Closing Trial Balance
Objectives of Accounting

• Objectives of accounting are – Maintaining a systematic record of all

financial transactions and preparing financial reports to access the
financial position Macro.
Golden rules of accounting
Account Increased By Decreased By

• Assets: Resources owned by a

Assets Debit Credit
business that have economic value
you can convert into cash (e.g.,
land, equipment, cash, vehicles) Expense Debit Credit

• Expenses: Costs that occur during

business operations (e.g., direct Liabilities Credit Debit

labor , supplies)
• Liabilities: Amounts owed to Equity Credit Debit
another person or business (e.g.,
accounts payable
Revenue Credit Debit
Reports of Accounting

• Accounting reports show the financial health of your business. Cash flow
statements, profit and loss statements, and balance sheets are among the
most popular types of accounting reports.
• Cash flow statement: as the name states, it is a statement of the flows of
cash both in and out.
• An income statement is a report that details overall expenses and revenue
to determine a company's overall net profit. Sometimes an income
statement is called a profit-and-loss report.
• Balance sheet shows an ending balance at one specific point in time. It
often includes balances for assets, liability and equity.
Types of Transactions

• Financial transactions are events that occur that change the value of an
asset, a liability, or an owner's equity. In business, there are four main
types of financial transactions, and they include sales, purchases, receipts,
and payments
Bank Reconciliation on QBO

• What is a Bank Reconciliation? A bank reconciliation statement is a

document that compares the cash balance on a company's balance sheet
to the corresponding amount on its bank statement.
• The bank reconciliation ensures that all transactions that have gone
through the bank statements have been reviewed and checked, thus
reducing errors.
• Steps Reconciling transactions on QBO
• From the left menu bar, hover over Accounting, then click on Reconcile,
• Choose the bank account you want to reconcile in QuickBooks, then enter
the ending account balance and date from your bank statement. You can
also add the service charge and interest earned—if they aren’t all
recorded
Continued

A. Account: Choose the bank account you wish to reconcile from the drop-
down menu.
B. Beginning balance: This is the beginning balance of your bank account,
and it must agree with your bank statement. In subsequent months, it’ll roll
over automatically from the prior month’s ending balance.
•Difference in beginning balance: Once a transaction has been reconciled,
the amount should never be changed in QuickBooks. If it is, the beginning
balance on this screen won’t match the beginning balance on your bank
statement. When this occurs, QB will provide a link for help identifying the
previously reconciled transaction that has changed
Continued

C. Ending balance: Enter the ending balance from your bank statement.
D. Ending date: Indicate the ending date of your statement period.
E. Service charge fields: You may need to input a service charge amount if
your bank imposes service charges for maintaining your account or
processing transactions. Enter the service charge’s date, the amount, and
the expense account to be charged if it isn’t in the system. You may use an
expense account like “Bank Service Charges.”
F. Interest earned fields: Fill in these fields if your bank pays you interest on
your account balance. If it hasn’t been recorded in QuickBooks, specify the
date, interest earned, and the account where you want to record the
interest earned, such as interest income.
QuickBooks Online Accounting System Transaction
Recording Procedures

Advance Payment for Supplier or Vendor

Scenario one
•If the Supplier give receipt for the advance Payment record on the cheque Screen
• Cheque Screen
•To enter cheque payment transaction, select Plus (+) New icon
•When you inter Cheque Number on the cheque interface
•Use – sign to separate cheque and CPV
• No space used to write the cheque number and CPV Number
•Select the correct Bank Account number
•Select the date
•Select the Payee
•Select account payable from Category list
•Write the description of the record on Memo
•Write the Amount we pay
•Select the Project and Class
•Save and Close
Scenario Two
If the Supplier doesn’t give Receipt for the
advance payment record on Supplier Credit

• To record Transactions on Supplier Credit

• Click the Create plus (+) sign and, from the Create menu that appears,
choose Supplier Credit.
• Select the vendor who issued the credit.
• Enter the date of the transaction.
• Select the bank/cash account entry from Category list
• Enter the credit amount.
• Select none tax
• Select the Project and Class
• Save and Close
Purchasing Payment Transactions

Scenario one
Buying by purchaser
•To give money for purchaser record on Cheque screen
•Settlement
•Record on Bill interface by adding purchase order and bill paid by purchaser
Continued

Scenario Two
Direct Purchase
•Advance
•Record on Supplier Credit
•When we submitted the material/Service from Supplier
•Record Bill by adding purchase order
•Final Payment
•Record on the cheque screen by adding both Bill and Supplier Credit and
write the amount we pay to supplier.
Bill interface

• Use bill interface to prepare the bill documents (like timesheet,

Subcontractor IPC ) and to settle purchasing transactions
• From the dashboard, click the Plus (+) New icon. Select Bill option
• Select Supplier
• Fill Bill number
• Pass the correct posting entry
• if the recording is purchaser settlement select the purchaser name and
record the entry
• Select Save or Save and close
 Rent Payable Recording Procedures
• Timesheet Recording Step on QuickBooks Online Accounting System
• Open Bill Interface on + New
• Select Supplier Name
• Term Select Net 60
• Fill Bill Date (the end of the day of the timesheet)
• Fill Bill Number(which is given reference of the timesheet)
• Select the Project of the rent payable
• On the item details Product and Service Select the Plate Number of the time sheet
• Fill The Quantity and check the Rate on the system and the timesheet rate
• Select the Tax
• Select the project and Class
• If there is a deduction record on Journal Screen
• Credit sales of material or other income and Debit account payable
• Write Memo/Description by copy and paste product and service description
• Check The Balance of the Bill with timesheet Balance
• Save
• Click More – Transaction Journal-Print journal and attach on the timesheet supporting
document
Record Payroll Transaction Manually

• Go to the Plus Sign New Icon and select Journal Entry

• Under Date, select the pay date.
• Input journal Reference Number
• Record Debit and Credit accounts
• Write full description
Cheque Interface

We use this interface to pay final payment for supplier, advance
payment(which the supplier submit VAT Receipt) ,
• To enter cheque payment transaction, select Plus (+) New icon
• When you inter Cheque Number on the cheque interface
• Use – sign to separate cheque and CPV
• No space used to write the cheque number and CPV Number
• Select the correct Bank Account number
• Select the Payee
• Select the project
• Select the location and Class
• Pass the correct posting entry (if we prepare the cheque for supplier advance
we use the account of Account Payable Select tax type
• Write Description
• Write the description of the record on Memo
• Check the total of the entry balance before save and close
Expense Interface

We use this interface to record Expenses which is paid by Cashier and Direct
Expenses, Bank Loan
•To enter an expense transaction, select Plus (+) New icon
•Write reference number
•Under Date, select the pay date
•Select Payment Method
•Select correct payment account
•Select Payee
•Select the project
•Select the location and Class
•Pass the correct posting entry
•Select tax types
•Write Description
•Write the description of the record on Memo
•Check the total of the entry balance before save and close
Record Collection

A. Prepare Invoice according to IPC

•Select the + New button.
•Select Invoice.
•From the Customer drop-down, choose the name of your customer.
•Under the Product/Service column, select the item or service that is being
billed, and then complete the rest of the fields as needed. Some fields, such
as tax rate, may be required.
•Select Save or Save and close.
Continued

• Receive payments on invoice

• When your customer pays the invoice, you can record the payment by
opening the invoice, selecting the Receive payment, and entering payment
information. You can also record the payment from the Customer or Sales
Transactions pages.
B. Recording income without invoice
• You can use the sales receipts if you receive full payment at the time of
the sale. This includes payments by cash to be recorded on your income
account. Just click on the Plus Sign (+) New and choose Sales Receipt,
which will record the payment.
 Rules
• At the working time started please login Quick book online accounting system
• For all employees using the system never Share Password or User ID
• Never Edit, Void and Delete if you want to do this inform the system administrator
• When record transaction on Quick book accounting system Project, Location and
Class must be select before save the transaction
• Record transaction on real time or daily transaction will be record on the transaction
date, Except Bill, Bank Loan Payment and Bank Service charge transactions all
transactions must record on real time
• Before printing the journals please check amount, date debit and credit account
• All Posting Transaction must be printed and attached on the document
• All Rent supplier name will be maintain by Equipment Department,
• All Purchase Supplier name will be maintain by Purchasing Department
• Inventory list will be maintain by Store Department
• Employee name will be maintain by HR Department