Computerised Bookkeeping : How have things changed?

Previously, all bookkeeping was done manually but with the technological world making huge leaps forward, this can now also be done using a computer. This article is a short extract of what you can hope to study when you get into Computerised Bookkeeping.

Money has come in - Goods have gone out.

Before we record this in the system, consider that, as Mr George is in the retail trade, many of his takings will be in cash. To date we have only used a bank account to deal with money.

Sage recognises that many businesses use a cash register and has set a bank account accordingly at 1235. This account will replicate what goes through the till. This is a useful account to use as you do not always know the breakdown of the takings – they could be a combination of cash, cheques, debit and credit card items. However modern tills often show a breakdown between the various forms of receipts.

Follow the money trail as far as possible – if an item has gone through the cash till in real life then put it into the Cash Register account. If money is taken from the till to pay for small items then enter details as a payment from the cash register account – if money is paid into the bank from the till then transfer it from the Cash Register account to the bank account.

The difficult one is credit card receipts – because credit and debit card receipts arrive into the bank account at various intervals, and you do not have control over when the money arrives, it will be almost impossible to keep a track of what is owing from the credit card company if you place these items into the cash register account – instead, Sage has a credit card receipt account that can be used (this will be covered in the next unit).

If income does not go through the till but is paid straight into the bank (for example a BACS transfer), use the bank current account to receive the money directly – replicate what happens in real life with what you do in Sage and you will be fine.

As you work through this course you will be given various tasks that replicate this situation. You will also learn how to reconcile the bank, the cash register and any petty cash account.

There are two ways that you can receive money into the cash register –the first is to highlight the Cash Register Account from the bank window.

This article has been put together by the distance learning organisation Start Learning who are experts in home study.

If you want to find out more about Computerised Bookkeeping or many other distance learning courses please browse their website: http://www.start-learning.co.uk

Kerrana McAvoy

Academic Director – Start Learning

http://www.start-learning.co.uk