Accounting Release

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We are very excited to bring you this release and below is a list of the features that have been updated:
 

Improved Division Support

  • Multiple divisions can now be associated to a single transaction on:
    • Invoices
    • Bills
    • Credit Notes
    • Vendor Credits
    • Manual Journal Entries
    • Expenses (Coming Soon)

New/Improved Accounting Reports

  • Income Statement (Profit & Loss) by Division
  • Comparative Income Statement (Profit & Loss)
    • By Division
    • By Date Period - Month / Quarter / Year
  • General Ledger
  • Accounts Receivable Aging
  • Accounts Payable Aging

Cash Basis Accounting

  • Cash Basis reports in Zipi have been updated to use the Modified Cash Basis of Accounting.
    • Under the Cash Basis of Accounting, Zipi would adjust the Income Statement for changes in Assets, Liabilities and Equity accounts.  This had the impact of overstating or understating income and expenses.  i.e. If you as the business owner made an investment in your business (Owner Capital Contribution), that investment would be reported as income.  This will not occur under the Modified Cash Basis of Accounting.
    • This change will bring Zipi’s Cash Basis reports into consistency with how a Cash Basis business reports its income and expenses for tax purposes. 
    • In short, this means that Accounts Receivable and Accounts Payable are the only Balance Sheet accounts kept off books and the income or expense is recognized when it is received or paid.  
  • Reports that have been updated due to this change
    • Income Statement (Profit & Loss)
    • Balance Sheet
    • Trial Balance
    • General Ledger

Chart of Accounts

  • An account's Account Type can now be updated
  • A sub-account’s Parent Account can now be updated

Transactions

  • Accrual to Cash
    • By default all transactions in Zipi are recorded on the Accrual Basis of Accounting. When generating Cash Basis Financial Reports (Income Statement, Balance Sheet, General Ledger, etc.), Zipi automatically converts the transactions to the Modified Cash Basis and produces the report.
  • Closing
    • Invoices & Bills are now created for all transactions that are a part of the deal.  
      • i.e. Given an agent closes a deal where his/her share of the commission is $5,000 and a transaction fee of $250 is due from the agent,
      • Zipi would previously create a single expense entry for $4,750, the net amount of the two transactions.
      • After the update, Zipi will create a bill from the agent for $5,000 and an invoice to the agent for $250. 
      • This change will improve financial reporting and accuracy as well as year-end 1099 reporting.
    • When the agent is paid at closing by the closing company on the broker’s behalf, a closing credit/debit will be applied to the agent’s bill and the invoice due from the closing company to settle the open invoice and bill.
    • All invoices and bills created will be created based on the closing date of the deal not on the date the payment was received.  This allows for proper financial reporting when the closing date and receipt of payment date are not the same.
In order for the deal financial data to be consistent with the accounting update, Zipi has adjusted the existing deal related transactions in the database to reflect the above changes.
 
This means the following updates were made:
  • Bills were created for deal expenses and invoices for charges made to the agents on the deal.
  • Closing debits and credits were created when payments were made on the broker’s behalf by a third party (Closing/Title Company).
  • When the deal closing date and the payment received date were not the same, all invoices and bill dates were adjusted to the closing date of the deal. Payment dates remain unchanged.

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