Accounting codes

[rmanh]

Not sure where to pose this question, but it looks like I will need to do some accounting the old fashion way of using the 4 digit codes and Debit/Credit principals. I think most accounting programs now have either dropped this support or maybe poorly implemented? But this shouldnt be a problem if your developing a fairly simple accounting system in Filemaker, right?

[LaRetta]

Most (old-school) accountants will attempt to insist that you use standardized software (such as AccPac, MAS90 etc) and will say that only Pacioli double-entry is dependable. If you can prove that you provide the proper protections and have a solid process and design in place AND if your business needs are simple, many accountants will accept it.

Only double-entry can properly address exchanges between accounts but many businesses use Quicken and it is single entry. Double-entry allows easier detection of fraud and errors, proper financial statements, inclusion of assets/liabilities and profit/loss tracking. What you need should be determined by an accountant rather than a software designer. If your business is small and simple, single entry is usually fine.

BTW, if you are asking whether FM can handle creating a double-entry system, indeed it can. In addition to properly offsetting two accounts, do you have the background to properly design such a structure? You might seek accounting assistance at setup and research internet to understand the principles. Only once your business requirements are clear, should you begin your software design.

Edited December 12, 2009 by Guest
Added BTW

[rmanh]

Many thanks for your reply, LaRetta.This is good to know before proceeding with the idea of creating our accounting system in Filemaker. Im thinking simple in the fact we are a manufacturer and everything is manufactured on a component level, so even if we only building about 30 different components, the end customer can order and assemble different components to put together a custom piece. BTW, everyone's probably thinking computers but its actually furniture. Im building our database for customers, invoicing, inventory, manufacturing in Filemaker.

The biggest hurdle is the manufacturing will be done in Vietnam, as the raw materials and skill are only available in this area of the world. The government here must approve your accounting system and also your accountant must be licensed by them. But for the most part they use standard accounting practices, as mentioned before. But their are a number of other issues including VAT, import/export tariffs, reporting in vietnamese only, etc. I understand that most accounting schools/universities here teach in Excel, and how to become licensed by the government. Graduated students understand the basics, but their at a loss in the real world of business operations.

Most foreign invested companies and larger Vietnamese companies will setup 2 accounting systems, one to please the government (most likely in Excel) and the second one using standard or custom accounting software. My thinking is why not use one custom system based upon the double-entry method, except make the reports in 2 currencies and languages. Would it be possible to split the double entry, ie: (English USD)/(Vietnamese Dong)?

I cant help but think their is and will be a real demand for this type of accounting system here in SE Asia. The US/World recession had little effect to this area with economic growth rates returning to the 6% and higher next year. The opportunities are real, its just important to find the right local partners to work with.

[LaRetta]

Would it be possible to split the double entry, ie: (English USD)/(Vietnamese Dong)?

Translation of currencies shouldn't be a problem for FM. So far, I haven't heard anything mentioned that can't be done ... only whether the business rules are clearly spelled out and then whether someone has the FM skills to pull it off.

[rmanh]

Lets say you dont necessarily have the FM skills to build such a database, but could develop those skills over time. Meaning grow the database as the company grows. How would you recommend framing the architecture (I guess DBMS), so to allow this way of building a database?