Lesson 31-- Asset Accounts

There are four basic types of accounts used in Goldenseal small business accounting software--Jobs, Assets (described here), Liabilities and Costs.

Asset Accounts

Asset accounts are for items that you own, that have value.

There are seven classes of asset accounts:

  • Cash-- Use Cash accounts for cash registers, cash drawers, petty cash and money hidden in mattresses.
  • Checking-- Use Checking accounts for bank accounts that you can draw on by writing sequential checks.
  • Equipment-- Use Equipment accounts for machinery, vehicles, large tools, computers and similar items. Equipment is considered as both an asset and as a cost account.
  • Inventory-- Use Inventory accounts for materials that you store for retail sales or for use in projects.
  • Investments-- Use Investment accounts for any assets that don't fit into one of the other classes.
  • Real Estate-- Use Real Estate accounts for buildings and land that you own or manage.
  • Savings-- Using Savings accounts for bank accounts that don't use sequential check numbers.

Cash Accounts

Use Cash accounts for currency, traveler's checks and other cash items that you keep in cash registers, cash drawers, or petty cash accounts. You can create a separate account for each location where cash is kept.

To create a new Cash account, follow these steps:

  1. Choose Cash from the Accounts menu.
  2. You'll see a record browser window.
  3. Click the New button.
  4. Enter a short account name.
  5. Enter an address.
  6. Enter the starting balance, and the minimum balance you'll maintain.
  7. Enter the Company Division in which to include this asset.
  8. Enter any comments you have about this account.

Using Cash Accounts

When you use cash to make a purchase, enter a Material Purchase, enter Cash as a payment method and enter the cash account for an 'instant purchase' transaction.

To transfer money in or out of a cash account, use Cash Transactions.

To deposit money from a cash register or cash box, use the Deposit Funds command.

Checking Accounts

Use Checking accounts for bank accounts that include sequential checks that draw on your funds. Checking accounts are often the accounts that you'll use most frequently.

To create a new checking account, follow these steps:

  1. Choose Checking from the Accounts menu.
  2. You'll see a browser window.
  3. Click the New button.
  4. Enter a short account name (for use in menus), and the full account name (for printed forms).
  5. Enter an address, phone and account number. Then enter the starting balance, and the minimum balance you want to maintain.
  6. Enter the company division in which to include this asset. HINT: To change the list of company divisions, click on the popup button next to the clairvoyant field, then choose Edit Company Divisions from the bottom of the menu.
  7. Use the checkbook table to enter each checkbook that draws on this account. For each checkbook, enter the next available check number.

Using Checking Accounts

When you use cash to make a purchase, enter a Material Purchase, enter Checking as a payment method and enter the checking account for an 'instant purchase' transaction.

To pay multiple bills by check, use the Pay Bills command.

To write paychecks, use the Write Payroll command.

To transfer money in or out of a checking account, use Checking Transactions.

To deposit money into your checking account, use the Deposit Funds command.

Multiple Checkbooks

Each checking account can include one or more checkbooks. Each time you write a check, you can choose which checkbook to use for the payment.

To add a new checkbook to a checking account, follow these steps:

  1. Choose Checking from the Accounts menu, and find the account you'd like to change.
  2. Click anywhere in the last checkbook row in the checkbook table (at the right side of the window).
  3. Press the Return key to add a new row.
  4. Enter a new checkbook name, and the next available check number for that checkbook.
  5. Repeat steps 3 and 4 for each additional checkbook in the account.
  6. To change the next number for a checkbook, click in the Next # cell and type in a new number.

HINT: You may need to change the check number if you void a check, lose a checkbook, or otherwise get a mismatch between the next check number in Goldenseal and your actual checkbook.

Using Checkbooks

When you use the Write Payroll or Pay Bills commands, Goldenseal will ask you which checkbook to use for the payment .

To use a checkbook when you enter a check transaction directly, choose a checkbook from the Checkbook popup menu.

Inventory Accounts

Use Inventory accounts to keep track of goods that you store for a while before you sell them or use them in projects (see Lesson 47 for more about Goldenseal's inventory tracking software features).

To create a new Inventory account, follow these steps:

  1. Choose Inventory from the Accounts menu.
  2. You'll see a browser window.
  3. Click the New button.
  4. Enter a short account name .
  5. Choose the way you'd like to value the inventory in this account, and how items in the account should be aged.
  6. Fill in the other fields (see the Reference Manual for details).

Using Inventory Accounts

When you buy materials for inventory, create a Material Purchase transaction, and enter an inventory account as the Job account.

When you sell items from inventory, enter the inventory account into the Sales transaction.

When you use inventory items in a project, create an Inventory Used transaction for the account.

To adjust inventory quantities or value, create an Inventory Transfer for the items.

Investment Accounts

Use Investment accounts for any assets that don't fit into one of the other categories.

To create a new Investment account, follow these steps:

  1. Choose Investments from the Accounts menu.
  2. You'll see a browser window.
  3. Click the New button.
  4. Enter a short account name (for use in menus), and the full account name (for printed forms).
  5. Enter an address, phone and account number. Then enter the starting balance, and the minimum balance you want to maintain.
  6. Fill in the other fields (see the Reference Manual for details, or look at the help messages in the left side of the window).

Using Investment Accounts

To transfer money in or out of an investment account, choose Investment Transactions from the Bank menu.

Real Estate Accounts

Use Real Estate accounts for property that you own or manage (see Lesson 41 for more about rental management).

To create a Real Estate account, follow these steps:

  1. Choose Real Estate from the Accounts menu.
  2. Click the New button.
  3. Enter information about the property (see the Reference Manual for details, or look at the help messages in the left side of the window).

Rental Units

Each rental property can contain one or more rental units. Enter them into the rental unit table. For each unit, type in a short name, choose rental payment terms, and enter the rent that you charge. For more about rental units in the Reference manual, click here.

NOTE: To enter rental payment terms, choose Payment Terms from the Options menu, then choose Rentals from the submenu.

Using Real Estate Accounts

When you enter expenses for a property, enter a Real Estate account into the Job field.

Enter Leases for tenants who rent, and enter Rental Transactions for the rent that they owe.

To create rental bills, choose Billing from the Bank menu, and choose Rentals from the submenu.

Savings Accounts

To create a new Savings account, follow these steps:

  1. Choose Savings from the Accounts menu.
  2. You'll see a browser window.
  3. Click the New button.
  4. Enter a short account name.
  5. Fill in the other fields (see the Reference Manual for details, or look at the help messages in the left side of the window).

Using Savings Accounts

To transfer money in or out of an savings account, choose Savings Transactions from the Bank menu.

Next-- Liability Accounts