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Income & Expenditure Accounts
Each financial transaction has a category recorded against it so they can be
summarized for accounting purposes. HirePOS refers to these categories as
Income & Expenditure Accounts. Some other systems refer to them as
the Chart of Accounts.
Examples: Accountancy Fees, Bank
Charges, Bank Interest, Telephone, Repairs & Maintenance.
HirePOS already has some Income &
Expenditure Accounts setup to save you some data entry time, but these
accounts should be reviewed with your accountant or bookkeeper, and any adjustments
made as necessary.
Account Types
Each Income & Expenditure Account will also fall into one of the
following categories:
Operational Expense, Capital Expense, Personal/Drawings, Sales Income or Other
Income. There are also two special categories used by the system,
Opening Balance and Account Transfer. Transactions recorded
against accounts of this type are transfers between your business accounts and
are not actual income or expenses to the business.
 Note:
You do not need to setup an account for Sales Income. Any payment
received through Bookings and Invoices
is classed as Sales Income.
Tax Defaults
A default tax code can also be nominated against each Income & Expenditure
Account.
How to set up Income and Expenditure Accounts
- From the Main Menu, click Setup
Menu, then Income
& Expenditure Accounts.
This opens the Income & Expenditure Accounts List, which lists any
accounts already added.
- Click New to open the Income & Expenditure Accounts
window.
- Enter the
Income/Expense Description.
- Nominate a default tax code (GST or FRE) from the Tax Default
drop-down list.
Note:
The tax code can always be overridden when you enter a
new expense or
receive a payment.
- For taxation purposes, you need to select whether the account is an Operational
Expense, Capital Expense, Personal/Drawings or Other
Income, or whether it is an Opening Balance or Account Transfer.
Note:
You do not need to setup an account for Sales Income. Any
payment received through Bookings and
Invoices is classed as Sales Income.
- Click Save & Close when completed.
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