Clarity Accounting Enter Income View

This is the enter income view users will see as soon as they sign in and enter the “Dashboard” area.

It is split into 4 sections using horizontal tabs:

• Enter Income
• Enter Invoice
• Enter Payment
• Detailed

Users of our online accounting software can also use the Income link on the left navigation to go to an income specific data entry page showing all entries as data is being entered.

Using the “Enter Income” Tab

This section is mainly used for the purpose of entering income that has already been paid.  Examples of this type of income are:

• commission income from sales
• products and services paid by cash, credit card, or direct bank transfers

Components of an Income Record

• Date
• Customer
• Invoice / record #
• Payment Account
• Income Account
• Description
• Quantity
• Price
• Applicable Sales Tax

Terms & Payment Accounts

There are 2 ways income records can be recorded.  They can be recorded as “Paid” or “Unpaid”.

Paid income records generally refer to products and services that are paid immediately with cash, credit card, or direct deposit.

Unpaid income records are generally used for invoicing.  In an accrual / double ledger accounting system, when you invoice a client for your products or services, you are considered to have “earned” that income regardless of whether or not you are paid.  Invoices usually have a “payment term” associated with it, allowing customers to pay days after the initial invoice was sent.  Outstanding invoices are referred to as “Aged Receivables” in accounting terms.  Unpaid income records will also require small businesses to track down payments and entering payments into the accounting software when payments are received.  If for some unfortunate reason, an invoice was not paid, then it can be written off as “bad debt”.

To record income that is “Paid”, select the account into which the money was (or will be) deposited. For example, if you receive a cheque and deposit it into your checking account, you would select “Checking Account”.

Income Accounts

Income accounts are used to differentiate revenue from different sources of income that will show up in your profit and loss statement.  This is also a great indicator of which products or services are most profitable to your business.  When you first create a business with Clarity Accounting, you will be asked to fill in your income sources.  However, if you did not list all the income sources at the time you set up your business profile, you can always click on the “New Income Account” to add more income accounts.

For each component of the income, select an income account in order to categorize the income; this allows you to view the income you have earned broken down by account in the Profit & Loss report.

Entering Income Case Study:

Jane is a real estate agent who received $10,000 in commission income from Remax (the real estate agency she represents) on October 3, 2008 for the sale of a piece of property.  She is paid via direct deposit into her checking account.  There are no applicable taxes in this transaction.

Click “Add” after the data has been entered.

Multi-Currency Entries

If your company pays and accepts income in currencies other than your own default currency, please use the “Enter Invoice” tab for multi-currency options.

Available options after clicking “Add”

Edit

The edit option will bring you to a summary of this particular record, allowing you to change anything you need to change.

Repeat

This option allows you to “repeat” this transaction.  Many people use this feature if they are entering an income record with very similar elements such as same customer with the same payment and income accounts.  This allows users to make minor changes with date, description, or price without re-entering all the information.

Download PDF

A PDF of the transaction can be downloaded as an invoice or a receipt (with the balance due marked $0.00) depending on the nature of the transaction.  We allow users to add their own logo on the PDF download.  Please refer to the help file “Uploading logo to Invoices” for detailed instructions.

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This entry was posted on Monday, October 6th, 2008 at 11:51 am by may and is filed under Income Records, Income and Invoices, Invoicing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.