Software > Accounting > 101 - Introduction
In order to have a conversation about accounting software and all other software options, you must break "Accounting Software" down into generally accepted core modules:
- General Ledger and Related reporting
- Point of Sale
- Accounts Receivable
- Accounts Payable
- Payroll
- Prepaid Service Management (escrow management for Attorneys and prepaid package management for wellness, for example)
And we have created the following modules to round out the tools needed for proper accounting management:
- Accounting Master File
- Deposit Ledger
- Expense Analysis - Profit Analysis
- Sales Tax Tracking and Reporting
Having a very, very sound understanding of how you are going to weave together a solid accounting process from required accounting modules that may not communicate with each other (for the better) is an imperative precursor to all aspects of small business software design and selection, accounting and otherwise.
If you follow the 220 Club's recommended accounting methodology, you will do your Tax Accounting first with aggregating transactions, you will disconnect your General Ledger from all other Accounting modules, and that seemingly isolating move will in fact free you up to create amazingly robust software systems that only do exactly what you want and need them to do, and not a bit more or a bit less.
We can NOT emphasize enough the need to work through all PreReqs listed on this website before actively proceeding with accounting software selection and design, especially if you are moving forward without an experienced consultant who you trust. If you attempt to let software designed for others dictate your business processes as opposed to dictating what you want from it in a realistic and appropriate manner, things will never be as smooth as they could be.
If you follow the 220 Club's recommended accounting methodology, you will do your Tax Accounting first with aggregating transactions, you will disconnect your General Ledger from all other Accounting modules, and that seemingly isolating move will in fact free you up to create amazingly robust software systems that only do exactly what you want and need them to do, and not a bit more or a bit less.
We can NOT emphasize enough the need to work through all PreReqs listed on this website before actively proceeding with accounting software selection and design, especially if you are moving forward without an experienced consultant who you trust. If you attempt to let software designed for others dictate your business processes as opposed to dictating what you want from it in a realistic and appropriate manner, things will never be as smooth as they could be.
Accounting Framework in Google Drive is in 3 Sections
Our Accounting software is generally found in three primary sections in a Google Drive structured in accordance with the Soul Proprietor Guide methodology. Without having read the PreRequisite material these directory names won't make sense.
- 10_Finance_Accounting Folder
- 50_Operations Folder
- 61_ERP Folder
1) 10_Finance_Accounting Folder
The 10_finance_accounting folder (1) contains a Folder for your ZAP Accounting Software files (2) and it also contains the other Accounting utilities we've outlined as supplemental (3).
Inside the ZAP Accounting Directory you would find the files for ZAP Accounting Part A (the General Ledger and related reporting) and ZAP Accounting Part B (the Balance Sheet). In this image you can see that Jane has decided to create a new Part A for each calendar year. She has a single Part B file for her Balance sheet reporting, and she also stores her tax packet cover sheet in this directory too.
2) 50_Operations Folder
When planning your digital systems you will need to create documents that mimic the systems manually when needed. These documents are generally created in sub-folders in your 50_Operations folder.
3) 61_ERP
We created an IT related folder and named it 61_ERP for the digital business system modules. The 10_Point_of_Sale System module is a customized module for wellness that is NOT inherently connected to our ZAP Accounting Software. It contains one type of Accounts Receivable functionality in it.
The 25_Ins_Billing module is an Accounts Recievable module specific to this user as well. And again, it is NOT inherently connected to our ZAP Accounting Software.
The 25_Ins_Billing module is an Accounts Recievable module specific to this user as well. And again, it is NOT inherently connected to our ZAP Accounting Software.
Summary
As you can see, many of the ERP modules touch the accounting realm in some form or another, but NONE are in fact tied to our General Ledger(ZAP Accounting Software). Understanding how things make it into that General Ledger and how to build everything else so it can provide information in an aggregated and timely fashion to create a GAAP acceptable system is an art, but with the 220 Club Core resources and this website, you've just been given one heck of a template to work from, as well as access to software options too.