What is Cloud ERP?

Cloud ERP is an approach to enterprise resource planning (ERP) that makes use of cloud computing platforms and services to provide a business with more flexible business process transformation.

Cloud ERP for Growing Business

Cloud ERP can help your organization grow profitably by allowing your people to work anywhere.  Cloud Based ERP benefits customers by providing application scalability and reduced hardware costs. In addition, Customers can build an internal cloud to reduce ongoing hardware costs while maintaining greater control over integration. (more…)

Accounting for Purchasing and Sales can be a complex process, and it involves various variables and considerations. In all accounting entries, there is a fundamental principle where one account must be increased (debited), while another corresponding account must be decreased (credited). The specific accounts affected depend on the nature of the purchase or sale transaction and the chosen accounting method.

Purchase

Purchasing is the essential process that businesses or organizations employ to acquire goods (inventory) or services to fulfill their objectives. These purchases can encompass acquiring raw materials, sub-assemblies (for manufacturing businesses), or finished goods (for warehousing, wholesaling, or e-commerce businesses).

Accounting for Purchases

When a purchase is made, it leads to an increase in the entity’s expenses and a decrease in its assets. To accurately record this transaction, the expense must be debited, while assets must be credited. Purchases can be made either with cash or on credit.

Cash Purchase

For cash purchases, the following double-entry is recorded:

Debit: Purchase Account on the Income Statement (Raw Material, Inventory, Finished Good, etc)

Credit: Cash Account

In this scenario, the purchase account is debited to account for the increase in expenses, while cash is credited to account for the decrease in the entity’s cash reserves.

Credit Purchase

Here, the purchase account is debited to represent the increase in expenses associated with the purchase, while accounts payable are credited to recognize the liability for the amount owed.

Debit: Purchase Account on the Income Statement

Credit: Accounts Payable

Sales

Sales encompass the revenues earned when a company sells its goods, products, merchandise, etc. It’s important to note that if a company sells one of its noncurrent assets used in its business, the amount received is not recorded in its Sales account.

Accounting for Sales

A sale results in an increase in both income and assets for the entity. To accurately reflect this transaction, assets must be debited, while revenue must be credited. Additionally, a sale involves reducing the inventory. Sales can be made either in cash or on credit.

Cash Sale

For cash sales, the following double entry is recorded:

Debit: Cash Account

Credit: Sales Revenue Account on the Income Statement

Cash is debited to acknowledge the increase in the entity’s cash holdings, while sales revenue is credited to account for the income generated from the sale.

Credit Sale

In case of a credit sale, the following double entry is recorded:

Debit: Accounts Receivable

Credit: Sales Revenue Account on the Income Statement

Accounts receivable are debited to recognize the amount owed by customers, and sales revenue is credited to reflect the income generated from the sale.

Accounting for purchasing and sales involves complex processes that require meticulous attention to detail. Whether dealing with cash or credit transactions, understanding the principles of debiting and crediting is essential for accurate financial record-keeping.

ERP Gold provides a customized serialized inventory management software solution that seamlessly integrates with your existing systems, including QuickBooks, to equip you with the necessary tools for success and business growth. If you’re looking for inventory tracking software or a comprehensive serialized inventory management system, we’ve got you covered. Click HERE to learn more about our solution, call us at 888.334.4472 for a free consultation, or click HERE to schedule a free consultation or demonstration of how we can assist you.

Serialized inventory management software and tracking systems are invaluable tools in modern businesses. They offer benefits such as enhanced inventory visibility, improved accuracy, effective traceability, precise cost allocation, detailed sales analysis, and better customer service. Serialized tracking is also crucial for regulatory compliance and accountability, ensuring businesses can meet industry-specific tracking and reporting requirements.

By implementing a robust serialized inventory management system like ERP Gold, businesses can streamline their operations, gain a competitive edge, and maintain financial health through efficient and accurate accounting practices in both purchasing and sales processes.

Have you ever asked your customer how they prefer to receive messages? Well probably not, most marketers don’t consider the fact that marketers never ask their customers for their preferred channel for the communication.

In today’s digital world there are multiple channels and avenues to communicate with customers. It is necessary to understand how critical it is to send the right message through the right channel to the right person at the right time.

How to Analyze Marketing Channel?

So how to analyze that which channel to use first for your different type of messages? When it comes to marketing you wonder how to choose the best channel to boost your bottom-line to deliver your messages.    (more…)

A financial Statement is a summary report of the financial activities and the position of a certain business, person, or other entity.   The basic financial statements are aBalance Sheet, Income Statement, and Statement of changes in equity.

How to prepare financial Statements

Preparing general-purpose financial statements can be simple or complex depending on the size of the company. Some statements need footnote disclosures while others can be presented without any. Details like this generally depend on the purpose of the financial statements.

Financial statements are prepared by transferring the account balances on the adjusted trial balance to a set of financial statement templates.  For example Paul’s Guitar Shop, Inc.’s financial statements based on his adjusted trial balance. Paul can use these statements internally to gauge the performance of his store for the year or he can issue them to lenders or investors to help raise funds to expand the store.

Once the Financial statements have been prepared, Paul can add the financial statements to the accounting worksheet  and close his books for the year by recording closing entries in the next accounting cycle step. (more…)

What is ERP?

ERP stands for Enterprise Resource Planning. ERP system is a large-scale software program designed for modern businesses, both large and small. As the name suggests, ERP is all the tasks a business must do to manage and document its business operations.

What is ERP Software?

ERP software is any application that manages your complete set of business processes, especially from a back office point of view. A good ERP.Gold software solution has the capacity to automate and perform most ERP business processes for you, with minimum supervision.Whether your company is an international industry leader or a start-up, there is an ERP system for you. (more…)