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Setup Information Required

To start MoneyWorks successfully you will require the following:

A start date: The Start Date is the date from which you will be entering all information into MoneyWorks. It is convenient (but not necessary) if this is the start of a financial year, so that you can use the financial statements that your accountant has prepared as a starting point. If you are setting up MoneyWorks shortly after the start of a financial year you might set the start date as the beginning of the year and back-enter transactions.

You don't need to have a full balance sheet available to start MoneyWorks. You can start with the cash book and/or payables and receivables, and enter in the balance sheet at a later time if you wish.

Bank balance: You will need to have the opening balance as at the Start Date for each bank account. These are taken directly off the bank statements.

In addition, you will need to create a list of all unpresented items (i.e. cheques and deposits that you have made before the start date but which appear on the bank statement after the start date). As these transactions straddle the start date, they need to be specially handled.

Outstanding payables, receivables: You will need to list all invoices that you have sent out or received that have not been paid as at the start date. Like the unpresented cheques, these straddle the start date, and hence need to be handled differently.

Inventory: If you are intending to run a stock control system you will need to do a stock take so that the correct stock values are available. You will also need to have the cost price of the items available so that MoneyWorks can correctly calculate your margins and cost of goods.

Chart of Accounts: You will also need a chart of accounts. This is basically a set of codes against which you can categorise income, expenditure and other transactions. MoneyWorks comes with several account templates that you can use, or you or your accountant may already have one.

Before you start have a clear idea of what you want to achieve. Work out a suitable chart of accounts, and keep it as simple as possible. Ask your accountant if necessary. Systematically collect the required information in a form suitable for entering into the computer.

Setup Definitions

For clarity, the following definitions will be used in this chapter.

Start Date: The first day of operation of your accounting system.

Close-Off Date:  The day immediately prior to the Start Date. This is the last day of use of whatever other accounting system you used, and the balances from this will need to be transferred into your MoneyWorks document.

Start Period:  The period (month) in which you want to start entering information. The Start Date will be the first day of this period.

Setup Period: The period (month) immediately prior to the Start Period. The Close-Off Date will be the last day of this period. This period will only contain transactions that establish your opening balance. The balances at the end of the Setup Period (the closing balances) will be the same as those at the beginning of the Start Period (the opening balances).