MYOB AccountRight, QuickBooks Online and Xero come with job costing and job tracking functions allowing users to develop more accurate budgets and avoid cost blow outs.
I’m excited to be delving deeper into a micro course specifically targeting how you can manage on-the-job costs and track your project. This will be included in all of our Xero, MYOB and Quickbooks online accounting courses.
Real life case studies and micro courses
We design our training courses to be true to life. This means we create our training courses around real-life business examples, or case studies. This information helps you get a job in the real world.
In my last blog I talked about the job tracking function in Xero, MYOB and Quickbooks. In our Job Tracking and Projects Training Course, we’ve taken as our starting point a real-life situation where a tradie uses job tracking features in cloud accounting software to make sure he makes a profit from all his running around, allocation of staff, cost of stock and out of pocket expenses from trips to Bunnings.
The erection of a garden shed
Our Job Tracking and Projects Training Course case study highlights the seemingly simple example of the erection of a garden shed. Our client purchases the shed directly from a hardware supplier, then employs the services of a builder to deliver and erect the shed.
Although it seems very easy, just like life itself, the process is actually more complex than meets the eye. Here are the issues the tradie needs to consider:
- Some of the products the tradesperson uses are stock (inventory),
- others he needs to buy for the job,
- others products and parts need to be purchased while on the job (expenses incurred by his staff).
Then there are circumstances which the tradie didn’t account for in his quote:
- Some days the build is rained out and
- some things end up taking longer than expected.
- An extra staff member is required and the tradesperson then has to keep keep track of his worker’s timesheets,
Establishing the transaction costs
Just as this Cloud Accounting Training Course case study is based on a real life scenario, so the transaction costs (the cost of supplies, labour, expected profits and losses) are current and accurate.
In developing our course content, we actually liaise with the relevant suppliers, including various tradespeople, interviewing them and finding out the variations and possible blow outs they experience and the contingencies they implement to offset these.
We also draw on ATO benchmarking which compares the information gathered from your financial returns to the information the ATO gathers from all other similar businesses.
Make sure you subscribe to our Cloud Accounting Course blog to receive updates about the next steps we take when creating our courses!
Want to learn more about managing project costs and job tracking in the major cloud accounting software packages – Xero, MYOB and Quickbooks? See our new case study: https://ezylearn.info/how-it-works/case-studies-micro-courses/managing-jobs-or-projects-to-measure-profitability/
So you’ve switched on the job alerts with SEEK and accounting jobs, part-time or contract accounting jobs are coming into your Inbox! Jobs galore! Everyone needs accounts people, right?
IF YOU’RE RECEIVING the job alerts everyday — indeed, you may even have applied for some jobs already — but you’re still not getting called up for interview, then the following questions of doubt may be brewing:
- Why haven’t they picked me?
- Have I been filtered out for some reason?
- Was my cover letter not good enough?
In our educational guide, Bookkeeping Beginner Basics, which you can download from the EzyLearn website for free, you’ll learn how to record journal entries in your accounting software, whether you’re using MYOB, Xero or QuickBooks. Most bookkeeping newbies don’t know what a journal entry is, though, which is what this blog post – the latest in our Bookkeeping Beginner Basics guide companion series – is going to help you to understand.
The journal vs. the general ledger
An accounting journal is the record that keeps accounting transactions in chronological order (i.e., as they occur), while the general ledger is a record that keeps accounting transactions by the account – see our previous post on the chart of accounts [Bookkeeping Beginner Basics: The Chart of Accounts] if you need help understanding what the term ‘account’ means in this context. Before computers, bookkeepers used to log all the financial transactions of a business in paper journals, and then at the end of the month transfer these journal entries into the general ledger, which was divided into various accounts that is now called the chart of accounts, and all the transactions were posted to these accounts using a method called double-entry bookkeeping.
Journal entries using accounting software
Today, however, accounting systems, such as MYOB, Xero, QuickBooks and the like, will automatically record most business transactions into the ledger immediately after the software prepares sales invoices, issues cheques to creditors, or processes receipts from customers, and as such you don’t have to create journal entries for most of your business’s transactions.
That being said, some journal entries still need to be processed, in order to record transfers between bank accounts and to record adjusting entries. You would need to make a journal entry, for example, at the end of each month to record depreciation or to record interest accrued on a bank loan.
If journal entries and general ledgers and the double entry bookkeeping method sound a bit too much, and you think you’d rather stick to the cash-based accounting method instead, prepare yourself for bad news: all businesses, whether they use the cash-based accounting method or the accrual accounting method, use double-entry bookkeeping to keep their books, and all accounting software applications, by default, are set up to adhere to the double-entry method, too. The double-entry bookkeeping method reduces errors and also ensures that your books balance, so as complicated as it may seem, it’s much easier in the long run.
If you still feel a little out of your depth, however, you can hire a reliable bookkeeper to manage your bookkeeping system and deal with all the journal entries and double-entry business for you, instead. Visit the National Bookkeeping website for to find a highly qualified bookkeeper whose experience and skills suit your business needs.
This blog post is part of our Bookkeeping Basics series, which are being published to complement our new educational guide, also titled Bookkeeping Beginner Basics, which you can download for free from the EzyLearn website.