Company Setup Wizard
After completing the required step of the Company Setup Wizard and saving your company
file, you can begin using Office Accounting 2007. However, it is recommended that
you first complete the setup of all accounts, customers, vendors and items. This
article will teach you how to set up your accounts.
The company setup checklist shows you the sections of the Company Setup Wizard that
you have completed, in addition to the sections you still have to complete. At any
point in time, you can exit the wizard by pressing Close. If you return to it later
(by selecting Company Setup in the File menu) Office Accounting will keep track
on your progress.
Company setup checklist in Microsoft Office
Accounting 2007
This screen can be used to launch wizards to help you complete the setup of accounts,
customers, vendors, employees, items, integration with Outlook with Business Contact
Manager as well as business services.
Accounts
The accounts section of the company setup wizard enables you to add or edit new
financial accounts as well as setting their balance as of the start date of the
company.
Setting up Accounts
Click Next to see the list of accounts that exist for you company. These
may have been selected earlier, if you chose a specific business type or they may
just be a list of the system accounts that have been automatically set up by Office
Accounting 2007.
Accounts and opening balances
To set up a new account press New. To edit an existing account, select the
account on the list and press Edit. To delete an account, select the account
on the list and press Delete. You cannot delete accounts with an opening
balance, system accounts or accounts referenced by other accounts.
You can see that the list of accounts has a Balance column and an As of
column. This enables you to set an opening balance for each account as of a specific
date. As default the starting date of the company is provided.
When setting up a new account, you have to select the account type first:
Select Account Type
The following table provides an overview of the individual account types:
| Account Type | Description
| | Income | Accounts that represent the revenue from sales of goods and services to your company's customers.
| | Other income | Accounts that represent revenues coming into your company that do not relate directly to the main purpose of your company. For example, interest income.
| | Expense | Accounts that represent what your company is spending to operate the business. For example, operating expenses include wages, rent, supplies, advertising, or utilities.
| | Other expense | Accounts that represent expenses that do not relate to the normal course of your company's business. For example, interest payments on long-term debt.
| | Cost of goods sold | Accounts that represent the cost of goods, materials, or services that are directly related to the generation of your company's sales revenues.
| | Cash | Accounts that consist of cash items, such as petty cash or undeposited funds.
| | Bank | Accounts that are considered liquid or easily convertible to cash. For example, bank accounts, short-term investments, and some securities.
| | Other current asset | Assets other than liquid ones that have a life of less than one year. For example, accounts receivables and inventory. Even though accounts receivable is a current asset, you do not have to set up accounts receivable in Other Current Assets. When you create a company, Microsoft Office Accounting 2007 creates a system account named Accounts Receivable, which is categorized as an Accounts Receivable account type.
| | Inventory asset | The value of goods on hand at a given time. Inventory assets are purchased or manufactured to sell to your customers.
| | Other asset | Assets of a minor type that are classified outside of the current or fixed asset categories. They can include investments or intangible assets such as goodwill or patents.
| | Fixed asset | Equipment, property, or plant assets that are purchased to use in your company rather than for resale. Fixed assets can be depreciated over various lengths of time depending on their type. Your company can absorb the expense over a period of time.
| | Credit card | Current obligations to a financial institution that are created by using your credit card for purchases or expenses.
| | Payroll liability | Tax obligations that the company owes to Federal and State tax agencies as a result of running payroll.
| | Current liability | Obligations due within one year or the normal operating cycle of your business. Accounts payable, short-term notes, accrued liabilities, and taxes accruals are examples of this type of account. Even though accounts payable is a current liability, you do not have to set up accounts payable in Current Liabilities. When you create a company, Accounting 2007 creates a system account named Accounts Payable, which is categorized as an Accounts Payable account type.
| | Long-term liability | Obligations of greater than one year or the normal operating cycle of your business. Mortgages, long-term notes, or non-current portions of customer warranties are examples of this type of account.
| | Equity | An account to record the difference between assets and liabilities. This category is also known as net worth, shareholders' equity, or net assets on company balance sheets. Another account of this type is Retained Earnings, which records the cumulative amount of net income left in the company.
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Account types in Office Accounting 2007
After you have selected the account type, you can edit the account details.
Editing a new or existing account
The only mandatory information is the name of the financial account. You can add
the rest of the details later. The financial account form is described in detail
in the Understanding financial accounts article.
When you have completed editing the list of accounts click Next.
Accounts completed
Click Finish to complete the Accounts section.
Company setup checklist with accounts completed
Related articles
Below you can find links to related articles on setting up your company in Office
Accounting 2007:
The Customers section of the startup wizard enables you to set up your customers
with details and opening balances.
The Vendors section of the startup wizard enables you to set up your vendors with
details and opening balances. Vendors are sometimes known as suppliers.
Office Accounting 2007 uses items to keep track of goods and services that your
company sells. The Items section of the startup wizard enables you to set up your
Items with details and quantity on hand.
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