Lesson 50-- Utility Accounts
Utility accounts are 'classic' bookkeeping accounts. They represent abstract accounting items that are not related to any specific person or business.
The Goldenseal accounting software program uses Utility accounts 'behind the scenes' to manage some tasks. You can also create your own utility accounts, if you'd like to use 'classic' accounting methods within Goldenseal.
HINT: Even if you never look at them, Utility accounts will still keep Goldenseal's accounting functions running smoothly.
To view Utility accounts, follow these steps:
Goldenseal uses each Utility account to store totals for a specific accounting function. The utility account also keeps a list of transactions that it can use to generate reports.
You can change the name of any utility account, and you can enter any comments you have about it.
NOTE-- You cannot change the reporting type or current balance for any of the standard utility accounts that Goldenseal starts out with. You also can't change the basic function-- Goldenseal accounting software will continue to use the Unbilled Sales account to track billable sales, even if you rename it to something else.
New Utility Accounts
Goldenseal lets you create new utility accounts. You can move funds in and out of them, the same as you would for 'classic' bookkeeping accounts.
HINT--The only time you need to add utility accounts is if you prefer to use a 'classic' accounting style, and want to create additional accounts to itemize expenses, revenue or other items.
When to Use new Utility Accounts
Create new utility accounts if you'd like to divide any of the basic accounting functions between more than one account.
For example, you can create additional expense accounts to track expenses, or new revenue accounts to track income.
HINT-- Before you set up more utility accounts, consider using cost categories, cost locations, job types or cost types as a way to allocate income and expenses. They probably will accomplish the same thing, and they are easier to use.
Types of Utility Accounts
Utility accounts can be of any of the following types:
Creating a New Utility Account
To create a new utility account, follow these steps:
Using Utility Accounts
To use a new expense or revenue account, you'll first need to set up the layouts so you can show the utility account on data entry screens. Then you can add it to reports.
For example, to add an Expense Account field to an expense transaction, follow these steps:
Using New Expense Accounts
Goldenseal accounting software starts out with five expense accounts for equipment, labor, materials, subcontractors and other costs. Goldenseal automatically posts equipment hours to the equipment expense account, material purchases to the material expense account, and so on.
To post expense transactions to a different expense account, enter the new choice into the Expense Account field in the expense transaction.
Using New Revenue Accounts
The Goldenseal accounting software program starts out with four basic revenue accounts-- for sales, project income, rentals and other income.
To post income transactions to a different revenue account, add the Revenue Account field to the sales, rental transaction or billing records layouts, and then enter a different revenue account..
Using Cash Transfers
You can also use cash transfers to move funds between utility accounts. The transfer will simply add to one account's balance, and subtract from the other's.
Using Utility Accounts in Reports
To show totals for a new utility account in a report, first create a calculator that uses the new account. To do so, follow these steps:
5. Click OK.
To use the new calculation in a report, follow these steps:
Utility Account Links
Some Utility accounts 'link' to the transactions included in the account.
For example, to see a list of billable Sales transactions that have not yet been billed, follow these steps:
In a way, Utility accounts allow the Goldenseal accounting software to handle the 'invisible' money in your business. And likewise, sometimes the most chic hats are the ones you can't see.
Maybe that's why there is so much interest in the new line of microscopic 'nano-technology' hats and garments in the latest Victoria's Secret catalog.