Scenario Analysis No. 15 – What you need to know to set-up a new business entity in an on-line system?

In my discussions with my prospects, I am made aware that setting up a new entity in an on-line business system can be a daunting task.

In order to keep things in perspective, a template or a “road-map” is required. The road-map describes what needs to be done and the suggested sequence. The road-map shall be the reference point, and hopefully makes the journey less painful. The discussion below relates to the set-up of a trial version of the business entity in the system.

The first step is to create the business as a separate legal entity in the system, followed by the set-up of Accounting Period and the Chart of Accounts.

STEP 1: COMPANY SET-UP

At the OfficeCentral Account registration page, complete the “Sign up with OfficeCentral” page.

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Note that the Email is the Username for the OfficeCentral Account. Click on “Click Here to Register” button to proceed. Once the Account has been created, the following message will appear at the log-in page.

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Enter the Username and Password. Click on the “Login” button. The Landing Page shall appear and the user is now logged-in. Update the Company Profile by clicking on the “Click Here to Update Your Company Profile”.

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Enter the details of the Company. There are five tabs relating to the details of the company, which are: Basic Information; Logo; GST Information; Financial and Payment Information; and Language & Culture. Some of the data entered shall be displayed on the documents issued by the company, such as invoices, reports, etc.

Once the desired update is completed, click the “Save Changes” button to proceed. The system will display the message “Your Changes Have Been Saved” to indicate that process was performed successfully.

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The company as a separate legal entity is now set-up in the system. Logout and login again to confirm that the information has been recorded correctly. Logout from the system by clicking on the “Logout” button on the top right hand corner of the screen.

Note: The Company Profile details can also be accessed via “Global Configuration” module under the tab “Company Profile”.

STEP 2: ACCOUNTING PERIOD AND CHART OF ACCOUNTS

Click on the “Accounting” module, and point on the down arrow of “Chart of Accounts” tab. At the drop-down list, select “Chart of Accounts”.

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Accounting period is to be established in the system as it is a time range that is used to calculate accounting data (such as profit and loss, cash flow etc.) Accounting period is normally the financial year of the business. For example, from 1 January to 31 December. As this is a new system set-up, the following screen is displayed. Click on the “Start Accounting Period” to proceed.

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A pop-up window shall appear. Enter the required “Date Start” and “Estimated End Date”; and click “Submit” to proceed.

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The following screen that is displayed will also show the message “Your Changes Have Been Saved” to indicate that the process was successful performed.

The Chart of Account (“COA”) is then set-up. COA is a list of accounts used to capture the details of movement in financial data transacted by the company. Click on “Setup Account (Default)” to proceed.

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A pop-up window shall appear. Under “Choose Setup” select the “OfficeCentral Default (MY)” option from the drop-down list. Click on “Setup” button to proceed.

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A confirmation pop-up shall appear for confirmation. Click on “OK” to proceed. Note that this process is not reversible.

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The following screen shall appear to indicate that the transaction was done successfully. And the list of COA main “Account Headers” shall be displayed.

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The COA consists of “Account Header” that acts as an umbrella to a group of accounts, and “Account Detail” that is the account itself. Click on the arrow-head on the left of each main “Account Header” to display the “sub-Account Headers”. Click on the desired sub-Account Header to display the options available. Click on “Add Detail” on the right-side of the screen to proceed with the set-up of the Account Detail.

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A pop-up window shall appear. Enter the details required of the Account Detail. The “opening balance” figure can also be entered if required. Click on “Submit” button to proceed. The Account Detail has been added to the COA as shown below.

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If the business entity has previous financial history, then the closing balances are to be updated into the system. The individual opening balance in the system shall be entered when the “Account Detail” is created.

For business entity with no previous financial history, it is advisable to create immediately the “Account Detail” for Cash and Bank respectively. Any further Accounts can be created later, as required.

Where applicable, any pre-existing COA of the business entity is to be mapped to the new COA to enable smooth transition from the current system to the new system.

Note: The set-up is performed only once in the system. The settings would not be changed, unless there are good reasons to do so. This is to prevent or minimise loss of financial data history in the system due to the change in the settings.

GNZ.

 

 

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