PayTraq Blog

PayTraq.com - Online Accounting Software

Costing and Inventory Valuation


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

...
Read more  
Tags: inventory, warehousing, accounting, business, PayTraq U

Advantages of Comprehensive Business Processes Automation


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

...
Read more  
Tags: business, accounting, cloud, invoicing, automation

PayTraq Multi-Language Support


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

...
Read more  
Tags: accounting, Financial statements, business, financial analysis, updates

Counterparty in bookkeeping. Who are debtors and creditors? How to work with them?

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

...
Read more  
Tags: PayTraq U, 101, accounting

General Journal and General Ledger

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

...
Read more  
Tags: PayTraq U, 101, accounting

Debit and Credit in Accounting Entries: Is It So Complicated?

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

...
Read more  
Tags: accounting, PayTraq U, 101

What bookkeeping is and why it is important for business?

Bookkeeping has been in existence in one form or another for many years. It appeared approximately when people started trading.

Bookkeeping makes sense because, if we want to run a business in an orderly manner, we need a certain system of records to help us properly trace and regulate business transactions.

Bookkeeping can be defined as a regulated system for the collection, registration, and consolidation of information expressed in terms of money about the assets status, the company’s commitments and their changes (flow of funds) by comprehensive, continuous, and documented accounting of all economic operations.

In simple terms, bookkeeping is the recording of all operations someway related to the company’s field of business.

Initially, bookkeeping was established by Luca Pacioli, an Italian friar and mathematician who lived at the turn of XV-XVI centuries. When a child, he assisted a merchant in trading record keeping, which subsequently became his

...
Read more  
Tags: accounting, PayTraq U, 101

Direct Integration with Nordea Web Services

Starting today, all Nordea customers can take advantage of using an e-banking channel for automatic uploading of bank reports to PayTraq and receiving notifications about both incoming and outgoing payments.

With Nordea Web Services, you no longer need to enter your Online Banking to export your bank statement, all banking transactions are updated in PayTraq online.

The advantages of an e-banking channel include:

  • Eliminates the need to enter data manually, automatically uploads all banking operations to PayTraq
  • Improved speed and accuracy of the data entered
  • All operations in your bank accounts are updated in real time reflecting the current financial position of your business.

How to enable Nordea Web Services?

...
Read more  
Tags: accounting, updates, bank feeds, integrations

The Use of Matching Rules for Bank Reconciliation

Recently, we announced a new Automatic Bank Reconciliation feature available in PayTraq.

With Auto Reconciliation, you can easily match most of your statement lines from your uploaded bank statements just in one click.

Auto Reconciliation is available both for the manually uploaded bank transactions and automatic bank feeds. It saves users a lot of time, while making the process quick, reducing the manual effort and improving accuracy.

As of now you can create your own custom bank reconciliation rules to match even more transactions automatically. These are additional rules that can be set up for automatic reconciliation of those bank transactions for which no matching primary documents or journals have been found. Such transactions include bank fees, money transfers, tax payments, transfers from a merchant account, loan payments, etc.

The bank statement line description may contain certain values that help you identify the transaction. You can use part of this

...
Read more  
Tags: updates, bank feeds, accounting, PayTraq features

Automated PayPal Bank Feeds


As we all know PayPal is a safe, easy way to pay and get paid online.

We are excited to announce an automated PayPal Bank Feed that will greatly simplify your work with PayPal in PayTraq.

With PayPal direct integration, you no longer need to export your PayPal statement and then import it to PayTraq. All your transactions will be uploaded to PayTraq automatically almost in real time with up to 15 minutes delay. Your current PayPal balance will also be available in the system. PayPal fees are automatically allocated into individual transactions and all PayPal uploaded operations can be easily reconciled.

With our auto-reconciliation feature, you can also automatically process all transactions for which exact matches are found, for example, to add an incoming payment to the invoice.

That's not all. By using a PayPal/eBay channel of your Sales Inbox you can get details about all orders that

...
Read more  
Tags: accounting, paypal, integrations, updates