Maintain system

Maintaining the accounting system you are using is crucial because it ensures the accuracy, consistency, and reliability of your financial data. Regular maintenance helps prevent errors, detect and correct discrepancies early, and keeps the system aligned with evolving business needs and external regulations, thereby safeguarding the financial integrity of your business.
Below, we will see how to maintain MYOB and Xero by adding new general ledger accounts and customer, supplier, inventory and fixed assets.

MYOB

Adding new general ledger accounts, customer, supplier, inventory, and fixed asset records in MYOB involves several straightforward steps. Here's how to do each:

Adding New General Ledger Accounts (Categories)

• Step 1: Navigate to "Accounting" and select "Categories" (formerly known as Accounts).
• Step 2: Click on "Add Category" to create a new general ledger account.
• Step 3: Choose the appropriate category type (Asset, Liability, Equity, Income, or Expense).
• Step 4: Enter the account name, number (if applicable), and description.
• Step 5: Set up any additional details, such as tax codes or reporting classifications.
• Step 6: Click "Save" to add the new category to your chart of categories.

Watch

Watch the video below to find out more about how to process General Ledger Transactions in MYOB:

MYOB Advanced Business - Processing a Batch of General Ledger Transactions | Leverage Technologies - YouTube

Adding a New Customer

• Step 1: Go to the "Sales" menu and select "Customers."
• Step 2: Click on "Add Customer" to create a new customer record.
• Step 3: Enter the customer's details, including name, contact information, billing address, and payment terms.
• Step 4: Assign a customer code (optional) and any relevant tax details.
• Step 5: Click "Save" to store the customer information.

Adding a New Supplier

• Step 1: Go to the "Purchases" menu and select "Suppliers."
• Step 2: Click on "Add Supplier" to create a new supplier record.
• Step 3: Enter the supplier's details, including name, contact information, and payment terms.
• Step 4: Assign a supplier code (optional) and any relevant tax details.
• Step 5: Click "Save" to store the supplier information.

Adding a New Inventory Item

• Step 1: Go to the "Inventory" menu and select "Items."
• Step 2: Click on "Add Item" to create a new inventory item.
• Step 3: Enter the item name, item code, description, and unit of measure.
• Step 4: Set the purchase and sale prices, and choose the appropriate categories for inventory, cost of goods sold, and sales income.
• Step 5: Assign tax codes for buying and selling the item.
• Step 6: Enter the opening stock quantity (if applicable) and reorder levels.
• Step 7: Click "Save" to add the inventory item to your list.

Adding a New Fixed Asset

• Step 1: Navigate to "Accounting" and select "Fixed Assets" (or "Assets," depending on your MYOB version).
• Step 2: Click on "Add Asset" to create a new fixed asset record.
• Step 3: Enter the asset details, including the asset name, description, acquisition date, and cost.
• Step 4: Assign the asset to the appropriate asset category and depreciation method.
• Step 5: Enter the expected useful life of the asset and any other relevant information, such as serial numbers or location.
• Step 6: Click "Save" to add the fixed asset to your records.

Watch

Watch the video below to find out how to set up a new Fixed Asset Account in MYOB:

MYOB | How to set up a new Fixed Asset Account (youtube.com)

Xero

Adding new general ledger accounts, customer, supplier, inventory, and fixed asset records in Xero is a straightforward process. Here’s how to do each:

Adding New General Ledger Accounts (Chart of Accounts)

• Step 1: Go to "Accounting" in the main menu and select "Chart of Accounts."
• Step 2: Click on "Add Account" to create a new general ledger account.
• Step 3: Select the appropriate account type (Asset, Liability, Equity, Revenue, or Expense).
• Step 4: Enter the account name, account code (if applicable), and description.
• Step 5: Assign the appropriate tax rate and any reporting groups if required.
• Step 6: Click "Save" to add the new account to your chart of accounts.

Watch

Watch the video below to find out more on hot to add a new general ledger account on Xero:/p>

Xero Chart of Accounts - How to Add a New General Ledger Account (youtube.com)

Adding a New Customer

• Step 1: Go to "Contacts" in the main menu and select "Customers."
• Step 2: Click on "Add Contact" to create a new customer record.
• Step 3: Enter the customer’s details, including name, email, phone number, and billing address.
• Step 4: Set any default sales account and payment terms.
• Step 5: Assign a tax rate and any other relevant information.
• Step 6: Click "Save" to store the customer information.

Adding a New Supplier

• Step 1: Go to "Contacts" in the main menu and select "Suppliers."
• Step 2: Click on "Add Contact" to create a new supplier record.
• Step 3: Enter the supplier’s details, including name, email, phone number, and payment address.
• Step 4: Set any default purchase account and payment terms.
• Step 5: Assign a tax rate and any other relevant information.
• Step 6: Click "Save" to store the supplier information.

Adding a New Inventory Item

• Step 1: Go to "Business" in the main menu and select "Products and Services."
• Step 2: Click on "New Item" to create a new inventory item.
• Step 3: Enter the item name, item code (if applicable), and description.
• Step 4: Set the sales price, purchase price, and tax rates for buying and selling.
• Step 5: Choose the appropriate accounts for tracking inventory, sales, and cost of goods sold.
• Step 6: If you are tracking inventory, check the box to enable inventory tracking and enter the starting quantity and value.
• Step 7: Click "Save" to add the inventory item to your list.

Adding a New Fixed Asset

• Step 1: Go to "Accounting" in the main menu and select "Fixed Assets."
• Step 2: Click on "Add Asset" to create a new fixed asset record.
• Step 3: Enter the asset name, description, and purchase details (including purchase date and cost).
• Step 4: Assign the asset to the appropriate asset category and depreciation method.
• Step 5: Enter the expected useful life of the asset, the depreciation start date, and any other relevant information.
• Step 6: Click "Save" to add the fixed asset to your records.

Watch

Watch the video below to find out more about the Fixed Asset Register on Xero:

The Fixed Asset Register on Xero (youtube.com)

MYOB

Maintaining and updating your chart of accounts, customer, supplier, inventory, fixed asset records, and subsidiary accounts in MYOB is essential to ensure your financial data remains accurate and up-to-date. Here's how to do this:

Maintaining and Updating the Chart of Accounts (Categories)

Editing Existing Accounts

• Step 1: Navigate to "Accounting" and select "Categories" (formerly known as Accounts).
• Step 2: Locate the category you wish to edit from the list.
• Step 3: Click on the category to open its details.
• Step 4: Update the account name, number, description, or any other details as needed.
• Step 5: If necessary, adjust the tax codes or reporting classifications.
• Step 6: Click "Save" to apply the changes.

Deleting or Deactivating Accounts

• Step 1: If an account is no longer needed, you can deactivate it by selecting the account and choosing the "Inactive" option.
• Step 2: To delete an account, ensure it has no transactions. If deletable, click "Delete." Note that MYOB typically restricts the deletion of accounts with historical data.

Maintaining and Updating Customer Records

Editing Customer Details

• Step 1: Go to the "Sales" menu and select "Customers."
• Step 2: Search for and select the customer whose details you need to update.
• Step 3: Click on the customer’s name to open their profile.
• Step 4: Update the customer’s contact information, billing address, payment terms, or tax details.
• Step 5: Click "Save" to apply the updates.

Deactivating Customers

• Step 1: If a customer is no longer active, you can mark them as inactive by opening their profile and selecting the "Inactive" option.

Maintaining and Updating Supplier Records

Editing Supplier Details

• Step 1: Go to the "Purchases" menu and select "Suppliers."
• Step 2: Find and select the supplier you wish to update.
• Step 3: Click on the supplier’s name to open their profile.
• Step 4: Update the supplier’s contact information, payment address, payment terms, or tax details.
• Step 5: Click "Save" to apply the changes.

Deactivating Suppliers

• Step 1: If a supplier is no longer used, you can deactivate them by marking them as inactive in their profile.

Maintaining and Updating Inventory Records

Editing Inventory Items

• Step 1: Go to the "Inventory" menu and select "Items."
• Step 2: Search for and select the inventory item you want to update.
• Step 3: Click on the item’s name to open its details.
• Step 4: Update the item’s description, pricing, tax codes, or stock levels.
• Step 5: If you need to adjust the quantity on hand, use the "Adjust Inventory" function.
• Step 6: Click "Save" to apply the updates.

Deactivating Inventory Items

• Step 1: If an inventory item is no longer in use, mark it as inactive by selecting the "Inactive" option in its profile.

Maintaining and Updating Fixed Asset Records

Editing Fixed Assets

• Step 1: Go to "Accounting" and select "Fixed Assets" (or "Assets," depending on your version).
• Step 2: Find and select the fixed asset you wish to update.
• Step 3: Click on the asset’s name to open its details.
• Step 4: Update the asset’s description, purchase details, depreciation method, or any other relevant information.
• Step 5: Adjust the depreciation schedule if needed, especially if there are changes in the asset’s useful life or salvage value.
• Step 6: Click "Save" to apply the changes.

Deactivating or Disposing of Fixed Assets

• Step 1: If a fixed asset is sold or disposed of, record the disposal in MYOB by adjusting the asset’s value and removing it from the active list.
• Step 2: Mark the asset as inactive or disposed to prevent further depreciation calculations.

Maintaining and Updating Subsidiary Accounts

Accounts Receivable (Customer Subsidiary Accounts)

• Step 1: Regularly review customer subsidiary accounts to ensure all outstanding invoices are accurate.
• Step 2: Update customer payments and credit notes as required.
• Step 3: Reconcile customer balances with their statements to ensure accuracy.

Accounts Payable (Supplier Subsidiary Accounts)

• Step 1: Regularly review supplier subsidiary accounts to ensure all outstanding bills are accurate.
• Step 2: Update payments and credit notes for suppliers as needed.
• Step 3: Reconcile supplier balances with their statements to maintain accuracy.

Xero

Maintaining and updating your chart of accounts, customer, supplier, inventory, fixed asset records, and subsidiary accounts in Xero is essential for ensuring accurate and up-to-date financial data. Here’s how to do it:

Maintaining and Updating the Chart of Accounts

Editing Existing Accounts

• Step 1: Go to "Accounting" in the main menu and select "Chart of Accounts."
• Step 2: Locate the account you want to edit from the list.
• Step 3: Click on the account to open its details.
• Step 4: Update the account name, code, description, tax rate, or any other relevant details.
• Step 5: Click "Save" to apply the changes.

Archiving Accounts

• Step 1: If an account is no longer in use and you want to prevent it from being used in future transactions, you can archive it.
• Step 2: Select the account and choose "Archive." Note that accounts with existing transactions cannot be deleted, only archived.

Maintaining and Updating Customer Records

Editing Customer Details

• Step 1: Go to "Contacts" in the main menu and select "Customers."
• Step 2: Find and select the customer whose details you need to update.
• Step 3: Click on the customer’s name to open their profile.
• Step 4: Update the customer’s contact information, billing address, payment terms, or tax details.
• Step 5: Click "Save" to store the updated information.

Merging Duplicate Contacts

• Step 1: If you find duplicate customer records, you can merge them to consolidate their information.
• Step 2: Select the duplicate contacts, click "Options," and then choose "Merge."

Maintaining and Updating Supplier Records

Editing Supplier Details

• Step 1: Go to "Contacts" in the main menu and select "Suppliers."
• Step 2: Find and select the supplier you want to update.
• Step 3: Click on the supplier’s name to open their profile.
• Step 4: Update the supplier’s contact information, payment address, payment terms, or tax details.
• Step 5: Click "Save" to apply the changes.

Archiving Inactive Suppliers

• Step 1: If a supplier is no longer active, you can archive their record.
• Step 2: Select the supplier and click "Archive" to remove them from active lists while retaining their historical data.

Maintaining and Updating Inventory Records

Editing Inventory Items

• Step 1: Go to "Business" in the main menu and select "Products and Services."
• Step 2: Find and select the inventory item you want to update.
• Step 3: Click on the item to open its details.
• Step 4: Update the item’s name, code, description, pricing, and tax rates.
• Step 5: If you need to adjust stock levels, click on "Adjust Quantity" and enter the necessary changes.
• Step 6: Click "Save" to apply the updates.

Archiving or Deleting Inventory Items

• Step 1: If an inventory item is no longer in use, you can archive it by selecting the item and choosing "Archive."
• Step 2: Note that if the item has no transactions, you may also have the option to delete it.

Maintaining and Updating Fixed Asset Records

Editing Fixed Assets

• Step 1: Go to "Accounting" in the main menu and select "Fixed Assets."
• Step 2: Find and select the fixed asset you want to update.
• Step 3: Click on the asset to open its details.
• Step 4: Update the asset’s name, purchase details, depreciation method, or other relevant information.
• Step 5: Adjust the depreciation schedule if there are changes in the asset’s useful life or salvage value.
• Step 6: Click "Save" to apply the updates.

Disposing of or Archiving Fixed Assets

• Step 1: If an asset has been sold or disposed of, record the disposal by clicking on the asset and selecting "Dispose."
• Step 2: Enter the necessary disposal details, including sale price and date of disposal.
• Step 3: If the asset is no longer needed but not disposed of, you can archive it.

Maintaining and Updating Subsidiary Accounts

Accounts Receivable (Customer Subsidiary Accounts)

• Step 1: Regularly review the "Invoices" under the "Business" menu to ensure all outstanding customer invoices are accurate and up-to-date.
• Step 2: Apply customer payments as they are received and reconcile customer balances regularly.

Accounts Payable (Supplier Subsidiary Accounts)

• Step 1: Regularly review "Bills to Pay" under the "Business" menu to ensure all supplier bills are accurate and up-to-date.
• Step 2: Record payments to suppliers as they are made and reconcile supplier balances regularly.

Customising the chart of accounts according to the reporting requirements of an organisation ensures that financial data is categorised and reported in a way that aligns with the specific needs and objectives of the business.

A well-structured chart of accounts allows for more accurate tracking of income, expenses, assets, and liabilities, facilitating meaningful financial analysis and decision-making. It enables the organisation to generate tailored reports that provide insights into key areas of performance, meet regulatory compliance, and support strategic planning, thereby enhancing overall financial management and transparency.

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