Sage 100 is a blessing in disguise for small and medium sized business houses. When it comes to business, accounting is an essential task. Managing and tracking of the bills, expenses, payments, invoices, balance sheets, and profits is a complex task and requires a lot of concentrated consideration.
Accounting experts can make the process of accounting simple with the support of the highly appreciated Sage 100 software. There is cloud hosting facility available too. Small business owners necessarily require a technical tool to track all their spending and a storage device to store their huge data in one place. Sage 100 meets all these requirements.
Moreover, the user can easily access data anywhere anytime with the help of cloud hosting which leads to better collaboration. The brilliant Sage 100 Technical Support Team is always available for all users for any further assistance or error resolutions.
While working on the software, the user may face errors occasionally. However, we need to avoid certain mistakes while working on this wonderful software.
Here we are Describing the Top 10 Most Frequent Mistakes which users make in Sage 100 that hampers the Work Flow:
Confused About Account Names
Account charts is an important tool which aids the user in making a listing of each account for their business needs. The user can make a list of balance sheet and income declaration statements (expenses and revenue) smoothly.
However, it has been often noticed that users get confused with the Sage 100 account names. Accounts might show in expense category during the printing of a loss or profit declaration, there might be confusion in the balance sheet too.
When the names of the accounts are not mentioned, monetary statements can create confusion for the users. The solution for this is to have a professional accountant set up the accounts charts to avoid any discrepancy.
The Financial Statements are not Reviewed
For a customer who does not come from a Finance background, handling finance can be quite confusing. For example, the user sees all kinds of debt as obligation to pay somebody back. All entered debt in Sage 100 account’s amount should not be in negative so that further calculations are not affected. Sage 100 experts can further help in this.
Inconsistent Details
As a company owner, the users are given a lot of flexibility in terms of how they would like to categorize certain kinds of costs for their business. For example, the user can put positive expenses under the operating expenses or include them within the cost of sales.
Misusing of the Undeposited Fund Account
Numerous company owners are getting confused in creating a balance sheet called ‘undeposited funds’. It is automatically created in a company balance sheet to keep a track of the amount that has been received, but it needs to be deposited into the company’s bank account.
Considering this amount is included in the financial statements, it may indicate that the money being deposited in the commerce bank account hasn’t been recorded correctly. When the user is sending their payments and opens up the deposit record and module of all expenses in the application, it should show a clear picture.
Inconsistently Tracking Sales Taxes:
All businesses have diverse views regarding sales tax. Few businesses specify a fixed price together with sales taxes and record sales tax collected as a subcategory called ‘sales taxes paid’. This gets included in the business expenses.
If the users are facing this issue, the productivity is either low or incorrectly reported as high when the real picture is not so. The user can include sales taxes in both their expenses and revenues.
Amounts Payable and Accounts Receivable:
At the time when the company owner owes money to a vendor, those amounts are recorded in Sage 100 under payable accounts and account receivable. It helps to keep track of amount that has been earned. An issue occurs when amount is taken from a user who is paying off their collectible, but that collectible balance is not accurately registered in Sage 100.
Connectivity with Bank Account
Mostly, companies link their bank accounts to their Sage 100 Accounts. It allows transaction details to be downloaded automatically from the bank account with Sage 100. It is crucial to carefully set up these rules to establish a Sage 100 account and to occasionally review it.
Handling Loan Payments in an Incorrect Way:
When companies receive a loan, it is important to effectively record the payments and keep the balance updated. When the user maintains the record of a loan payment in Sage 100, the user needs to split the balance between interest and principal. It keeps a check on the loan amount in Sage 100 and can be reviewed in case of new funding.
Cost Mismatch and Product
Sage 100 offers helpful insights into product-category performance and products. By matching product category and product names can help in keeping a track of business products in Sage 100 with its inventory. All these comparisons can determine which products to maintain, which ones to stop selling and which require promoting more.
Hiring an Unknowledgeable Accountant:
If the user decides to hand over the task of managing their Sage 100 account, ensure that they hire the right person for the job. Professional Accountants are skilled at managing accounts charts and entering the right details in the right place.
We all know that a good financial management system is the main key to success of any business. Sage 100 keeps a track of assets, inventory, expenses, liabilities, and sales. When the user utilizes the wonderful features of Sage 100, avoiding certain mistakes as mentioned above will further help in precise and excellent financial management. This will lead to proper decision-taking for the growth of any business as money management is an important aspect of any flourishing organization.