Architekwiki
  • Home
  • WIKI
  • Start Here
  • Resources
  • Other
    • Reading List
    • Ochre >
      • Ochre
      • Ochre KB
      • Ochre FAQs
      • Ochre Help
    • Details
    • The 3 Aspects
    • About
    • Subscription FAQs
    • Terms of Use
  • Subscribe
  • Home
  • WIKI
  • Start Here
  • Resources
  • Other
    • Reading List
    • Ochre >
      • Ochre
      • Ochre KB
      • Ochre FAQs
      • Ochre Help
    • Details
    • The 3 Aspects
    • About
    • Subscription FAQs
    • Terms of Use
  • Subscribe

Architekwiki

A Resource For Architects
Click here to get good stuff in your inbox

Small Firm Accounting - Part 3 - A Simple System

3/19/2013

 
Accounting
We once used a very sophisticated accounting system that could handle everything - time keeping, invoicing, print checks for expenses, manage accounts receivable and accounts payable, financial statements, project reports and on and on. Eventually the company wanted to phase the program out in favor of an internet-based alternative. We chose not to pay $12,000+ for the privilege of remaining a customer. Before we settled on our current system, b2bee we considered going to the opposite extreme.

INVOICING
Invoices were created from spreadsheet templates depending on the type of billing needed. Each project was set up with a customized template with names, addresses, and fee data. Each month the previous invoice was copied to a new tab in the workbook. The workbook also had a summary worksheet where we could keep track of dates, amounts billed, amounts paid, when paid. The summary could be quickly referenced to get total amount due and amount paid job-to-date for an accounts receivable report or a profitability calculation. 

TIME KEEPING
Time keeping was also done by spreadsheet. A folder held each person's own time card spreadsheet. Checking the 'date modified' quickly tells you who is not up-to-date. Honestly the time card was the weak link in the system. Critical information was collected here, but it took too long to update the time card each month and too long to collect information from all the cards. The tool needs to be a shared database. The problem is that we couldn't find a ready-made solution that didn't cost as much as an accounting solution. Since we decided to create our own, we chose what we know - spreadsheets. I think a better solution would be a shared time sheet with the rows holding the person's name, the project ID, total time expense, total hours, and hours per day. The project ID could have a pull down selection so that it is easy to sort and get subtotals.

BILL PAYING
Paying bills and keeping accounts payable in front of you is pretty simple. If your checking account has an online portal with a bill paying option, you are most of the way there. Set up payees, then simply log in every bill when it comes in and set a date to pay it. Export the history quarterly for a permanent record of expenses and to add annotations where you need to attach project info category descriptions for tax preparation. You will need to do something similar if you use a credit card to pay some expenses.

PAYROLL
If, or when, you have employees; get a payroll service like ADP or Paycor. You can't begin to deal with all the tax withholdings, reporting, tax filings, W-2 preparation, etc. for the cost of the service. If you have a clerical person who does accounting, then with the right software you might find that it is better to do payroll in house. Normally the cost of staff time will exceed the cost of the service. 

Next up: Other Accounting Issues

Here are links to the other Parts:
Part 1 - Invoicing
Part 2 - Paying Bills
Part 3 - A Simple System
Part 4 - Other Accounting Issues
Part 5 - Software Criteria
Part 6 - Software Comparison

Comments are closed.
    Resources

    Start Here

    YouTube Channel

    Join The Mailing List

    Picture

    Terms of Use
    Your use of Architekwiki is implicit agreement with the 
    ​
    Terms of Use.
    Thank You for your donation

    x
    Get Good Stuff in Your Inbox
    Picture
    Subscribe

    RSS Feed


    Archives

    January 2023
    November 2022
    October 2022
    July 2022
    June 2022
    April 2022
    October 2021
    September 2021
    August 2021
    June 2021
    May 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012

    Categories

    All
    Business Development
    Business Management
    Design
    Detail
    Miscellaneous
    Project Management
    Resources

Picture

Picture
VISIT ARCHITEKWIKI'S RESOURCES
​
START HERE
ABOUT
SIGN UP
TERMS OF USE
Architekwiki | Architect's Resource | Greater Cincinnati 
© 2012-2022   Architekwiki​