Chart Of Accounts

A Chart of Accounts(COA) is a list of all account names and numbers in your company's general ledger . The chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Chart of Accounts is classified into one of the five categories :

1. Assets - It is the group of things that you own. Assets could include a car, cash, a house, stocks, or anything else that has convertible value.

2. Liabilities - It is the group of things on which you owe money liabilities could include a car loan, a student loan, a mortgage, your investment margin account, or anything else which you must pay back at some time.

3. Equity - It is same as "net worth." It represents what is left over after subtracting your liabilities from your assets.

4. Income - It is the payment you receive for your time, services you provide, or the use of your money.

5. Expenses - It refers to money you spend to purchase goods or services provided by someone else.

Each account in the chart is assigned as unique identifier, typically an account number.For very small businesses, three digits may suffice for the account number. COA should be designed to capture financial information to make good financial decisions.

Whether you run a business or a student of business, Our online Accounting software Numia ,will help you to maintain your accounts easily.In Numia , we have many default accounts which covers almost all small scale business needs.

According to your business You can create your own accounts and account types too.

FEEDBACKS on our Accounting Software

Accounting is complex and difficult to understand – especially for individuals with minimal accounting experience. Even the accounting basics like credits, debits, assets, and so on get confusing to some and can be the kind of things that turn people off from accounting, despite the importance of it. This is why it is important to find software that makes entering transaction easy and possible without knowledge of what kind of transaction was just completed.

However, in most cases, businesses do not want to spend time doing something that is complicated that they may not completely understand if there is software available to do it for them.
For most small businesses, Numia, online accounting software is something that is easy to use and powerful. Information should be easy to input and reports should be easy to understand.

For example, most accounting software will include an invoicing feature. Some software will begin with the accounting ledger and give users the option to create a custom invoice from the ledger. However, this is not the easiest method to complete this task for most users.

An easier manner is, to create the invoice and have the software automatically update the ledger like Numia. Finally, you will be using our software. If you find the interface simple/difficult or any other feedbacks, give your valuable inputs . In nearly all cases, new software will require some training. And we need the training(suggestions) from 'YOU'.

Reports in Numia

Numia provides facility to generate and print out reports. These reports may include payment summary or any other type of information about your business in a summarized or easy-to-understand format. In addition to these, you can also generate management reports to calculate profit and loss for a given month or year. Remember to create a back up at the end of each financial year so that valuable information is not lost. This data helps to make intelligent business decisions later on in order to increase profits and control or mitigate loss. Keep all documents in one place so that they are easily found whenever needed.

How to Get The Best Accounting Software For Your Small Business

This topic have been discussed in many areas like forums, blogs, different account related websites. So I thought to write a few lines about Numia with other online accounting softwares.

Buying accounting software is a major investment. It's an important decision and you need to be sure of all the facts before you buy.You certainly wouldn't want to get accounting software and then find a few months later that the software can't handle your growing business.And worst of all you don't want to get software with little or no support.

Software Prices

The cheapest software cost US $90 and the most expensive software cost US $1,500. But Numia absolutely a Freeware and mainly it has all the features as many paid services.

Software Features

As per our analyzing team each accounting software package has been thoroughly analyzed and there is a detailed breakdown showing the features of each. Most packages offer all the most important accounting modules. It was interesting to note that the most expensive software did not offer some of the modules offered by Numia.

Software Support

The most important feature in our opinion is the support. In Numia we give instant reply for your e-mails and also there are Video tutorials to guide you to use our product very easily.

Thus, Numia have all the features and also it can compete with other major accounting softwares in future.

Reverse Journal entry in Numia

Last week we had discussed about the multi currency,options for choosing number formats in Numia. Here comes an another updation. We dint have reverse journal entry in our older version of our accounting software. Now this option has been added.

Mainly Reverse Journal entry changes the signs on the original entry, (i.e), change the Debit to credit and vice-versa then re-post the journal. Reversing entries are an optional accounting procedure which may prove useful in simplifying record keeping. A reversing entry is a journal entry to “undo” an adjusting entry.

Reversing entries would be appropriate for those adjusting entries that involve the recording of accrued revenues and expenses; specifically, those that involve future cash flows. Importantly, whether reversing entries are used or not, the same result is achieved.

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Bank Reconciliation with Numia

The process of tallying the organization's own accounting records with the bank statement is called Bank Reconciliation. This is done on the end of every month and the main objective is to reduce the differences arised between the two records (bank statement and the own accounting statements maintained).

When the process of Bank reconciliation is done regularly and carefully, can reduce error free accounting system.

Reconcile Bank account page of Numia, allows to enter the Bank account details such as Bank interest earned, service charge, etc. A click on the button "Start Reconcile" starts the Bank reconciliation process against the accounting records maintained in Numia. Taking the balance on the bank statement adding the total of outstanding receipts less the total of the outstanding payments, this new value should reconcile to the balance of the accounting records.

Numia, compares your accounting records maintained, with the bank statement. A list is generated showing the outstanding, if any. Make adjustment entries, where ever necessary and finish the reconciliation process.

This process is outsourced in larger organization. But Numia, provides you with quicker, reliable, safer and error free Bank reconciliation.

Profit & Loss Account

In Accounting , the term Profit refers to , A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity.It is calculated as :

Profit = Total Revenue –Total Expenses

Loss refers to , A negative difference between Total Revenue and Total Expenses. It is a condition in which a company's expenses exceed its revenues.

Profit is the incentive for business; without profit people wouldn't bother. So in business, Profit and Loss are monitored as a separate accounts. The Profit & Loss Account has three parts, The Trading Account , The Profit and Loss Account proper and The Appropriation Account.

The uses of this account is to measure profit , if the profit(loss) has been accurately calculated, this can then be used for comparison of business in the past . Profit & Loss Account can be accurately calculated with the help of Numia, Online Accounting and Bookkeeping software.

Reports can be viewed as charts , can be customized in Excel sheets , e – mailed and can be printed.

Customize Profit and Loss Account

Numia provides advanced features like Profit Analysis based on timeperiod , customers and also for various products.

Analyze your Profit and Loss more efficiently using Numia.biz .