PayTraq Blog

In 2015, the European Union proposed the Open Banking Standard Initiative and accepted the Revised Payment Services Directive PSD2. The implementation of the Open Banking standards should promote faster innovations in the financial sector, and increase the competition amongst the banks.

Open Banking is a broad term that includes many different processes, from account aggregation to verifying account ownership and payment initiation.

The key point, when implementing the Directive, European banks had to enable clients to receive the information about their financial transactions (through the open APIs) in the way most convenient for the client.

As a result, bank clients were able to automatically receive information about the transactions, even without opening bank’s website, for example, see all their accounts in different banks in one personal finance application on smartphone.

For the entrepreneurs it means the opportunity of the automatic upload of the bank transactions to the accounting system,

Sooner or later all new entrepreneurs ask themselves: Why is costing necessary?

Cost analysis is vital for businesses because entrepreneurs cannot optimize expenses unless they clearly understand what they consist of and which business performance indicators will be impacted by the changes and which will not.

Costing is needed to valuate inventory objectively, determine the wholesale and retail prices, calculate and control the return on sales (ROS) of each specific item.
Knowing the unit cost, you can easily determine the required/minimum acceptable markup for the selling price to reach the projected profits.

One of the key factors contributing to accurate financial reporting is the correct inventory valuation. Inventory is considered to be short-term assets, and as working capital it should be valuated based on its acquisition cost.

Why is the cost generally not equal to the latest purchase price?

Current stock may include goods purchased at different times at

Depending on the requirements and specifics of your business, PayTraq offers a variety of options for your sales and procurements arrangement and planning. You can choose an option according to your specific business process or take advantage of its modified versions.

Below are some of the most commonly used sales and purchases workflows.

1) Sales if the product is in stock

(Sales Order) -> Invoice to Customer -> Outgoing Shipment

It is used to sell products which are available in stock.
The easiest and the most common way for selling a product is when the sales order is created, based on which then an invoice is issued.

An outgoing shipment from the warehouse is generated in the program automatically when the invoice is posted.

A simplified alternative of this workflow is when the invoice is issued right away, without the sales order being created.

For advance payment sales,

As technology and web apps become more advanced, business process automation, previously used only by large enterprises, is now available for small businesses as well. Unfortunately, a lot of people are unaware of many of the advantages of a complex approach to business process automation and never get a chance to benefit from them.

Automated billing is among users’ favorites. Undoubtedly, replacing Word or Excel with web-based services is a better and smarter solution which saves a lot of time. Professional design of generated documents, organized lists of issued bills with instant search option, clear information of who owes what, periodic billing, automatic invoice e-mailing, notifications about past due payments, as well as the possibilities for receiving online payments are what automated billing is all about, and that's why it increases performance compared to manual billing in text editors or spreadsheets. But this is just one business process.

By automating

Do you know that PayTraq can be used in many languages? Users can view the accounting software interface in the chosen language in just one click.

With PayTraq, you can send invoices (orders, proformas, packing lists, etc.) in national language to your local customers and in English to your international customers.

Every country has its own localized version of the service. Chart of accounts, financial statements and tax reports are provided in the local language by default.

Currently we are adding a new feature specifically designed for businesses from non-english speaking countries - support for financial statements in English.

While most accounting programs support only one language, imagine you get a foreign partner who wants to see a standard set of financial statements of your company, such as balance sheet, profit and loss statement, and cash flow statement. This is when your accountant has to become a translator for a

The benefits of the online payments options for your invoices were described in details earlier, so we would like to just remind you what the key points were.

By enabling the option to accept online payments straight from the online invoice link you give your clients the way to pay instantly and with ease. The more payment options you display on your invoices, the higher the chances your customers will pay you on time.

Statistically, by offering the option to pay online the invoices are paid twice as fast as those without it.

Accepting online payments is great for companies working with international clients. It helps to avoid waiting for international wire transfer.

It's worth mentioning that the number of corporate credit cards has been growing. So the client can pay using the card’s available credit, which comes in handy when there are not enough funds in the current

We are excited to announce that the new major release of PayTraq Mobile is available for download from the iTunes App Store and Google Play Store.

The app has been completely redesigned from scratch and now has a new and fresh look and feel. We have improved the overall user experience and made the UI more clean and understandable.

The main goal of the App is still the same - to let you get a clear picture of your business while you’re on the go. The application provides convenient access to the major business data including sales, purchases, expense claims, contacts and products. Activity Stream and Notifications will give you a quick view to all business activities at a glance.

Mobile POS

Mobile POS has also been redesigned to make the overall process more straightforward and simple and of course it's still an easy way to create sales orders

Most of the business operations recorded in books require the indication of the other party of the transaction – counterparty.

Counterparty is a third party entering into any contractual relationships with your company. These relationships are somehow related to the company’s business activity, for example, services received or provided, goods purchased or sold, incurrence of financial commitments, payroll accounting, cash inflow or outflow, etc.

Based on the operation, a counterparty can be your customer, vendor, employee, bank, or tax agency.
Records are kept individually for each counterparty, for this reason, the counterparty shall be indicated in the accounting entries.

Separate counterparty accounting allows to find out at any time who owes you and how much they owe you, as well as whom and how much you owe, to reconcile payments with a counterparty at any date to confirm the amount due, and to get a counterparty’s account statement over

When someone unfamiliar with modern accounting faces such terms as "general ledger" or "general journal", they imagine giant dusty books, complicated and totally confusing. Of course, such vision of modern accounting is absolutely wrong. Meanwhile, the general ledger is essential for any company’s accounting system.

Historically, journals and ledgers were constantly bound notebooks in which a clerk hand wrote entries right after a sale was closed, a cost become incurred, revenues were received, or any other event took placed that affected the company's records.

Nowadays, of course, journals and ledgers are completely implemented in accounting software. As a result, transaction data are entered manually through onscreen forms or even more often automatically (through bank feeds, point of sales systems). Moreover, software automatically register journal entries to ledger so the don’t need to be transferred manually.

The general journal is a list of all business

Most people know debit and credit outside the context of bookkeeping.

Bank cards, for instance, are commonly used almost by everyone. There are debit and credit payment cards. The former allows us to spend money directly from our current account; credit cards, on the other hand, offer an opportunity to use a bank credit line, thus giving a free hand to spend borrowed money. Debit in this context is the money received from the bank account, and credit is the money available on a bank loan.

Debit and credit are also commonly known through the bank statement where the write-off amounts are specified in the debit column, and the charged amounts are indicated in the credit one.

Nevertheless, bookkeeping double entry implies a different role and idea of debit and credit.

For you to use debit and credit to trace economic operations under various types of business accounting records, you