Over the last several years, we’ve added a lot of cool new features that have affected accounting and reporting; however, we had not given our reports the necessary overhaul to properly incorporate these changes into the financial reports. The necessary information was in the old reports, but it often required time consuming manipulation to make sense. A total overhaul was long overdue!
“I came to the realization that we needed to take a bigger look at Amilia and transform it into a real auxiliary journal for the revenues, storing all the detailed accounting information needed to support the work of your accountant. With the new reports and reconciliation, Amilia greatly simplifed the understanding of the organization performance in regard to its revenues, making it possible for non-accounting people to understand the numbers.” - Francois Gaouette, CEO Amilia.
Tell Your Accountants and Bookkeepers
Please make sure your accountant and/or bookkeeper knows about the following enhancements and changes. The changes are significant and will ultimately save them a lot of time with data entry and manual reconciliation. Plus, you and your accountant will have a deeper understanding of where your revenue is coming from and what aspects of your program could use more marketing or adjustments.
Only July 11, 2017, Amilia will release reconciliation enhancements and the new accounting reports. The biggest change is the introduction of mandatory ledger codes which will simplify reconciliation and save time.
If you already use ledger codes, go ahead and skip to Reconciliation - but still tell your accountant and make sure they watch the recording of our webinar.
Introduction of mandatory ledger codes:
If you aren’t familiar with ledger codes, they are a set of numbered accounts a business uses to keep track of its financial transactions and to prepare financial reports. Each account is a unique record summarizing each type of asset, liability, equity, revenue and expense. For example, you might designate your fall swim classes with a code of 5000. Your minnows group (age 3-4) a code of 5005. All accounting systems are based on ledger code which are created in the chart of account.
We’ve always had ledger codes but they were not required for everything that was sold in the platform, making it very difficult to figure out the different revenues. When you set ledger codes up correctly now, you only have to look at 1 report to get everything you need about your revenues. It works for both types of accounting: accrual (sales=revenues) or cash (payment = revenue).
Example of: Sales Summary by Ledger Code
If you don’t want to use ledger codes right now, don’t worry - we’ve created a default ledger code, so you can carry on as business as usual and create them later. But if you want to have meaningful reports, you will have, at one point, to create and use them correctly.
When you start with Amilia or you begin to set up your ledger codes, you should ask your account to provide you the ledger codes that you use in your accounting software; however, you could decide to create additional ledger codes to get more granular information. As an example, your accounting system might have the ledger code 5000 for swimming but you might want to use 5001 for kid's swimming and 5002 for adult's swimming in order to have the detailed information. Your accountant will only have to add up the ledger code to have the number for its 5000 ledger code.
Before you set up your programs and merchandise think about what types of reports you want. If you require a t-shirt, or a competition to be mandatory with program registration BUT you want to know how much revenue is from t-shirts you’ve sold or competitions, you should create a separate ledger code for the t-shirt, the competition, and the program. You will be able to report on revenue from each separately.
Reconciliation – What is it and what is changing
Reconciliation is the key process used to match payments with sales. In the past, reconciliation in Amilia has been done by invoice not by item, so while you knew that an invoice was paid or partially paid, you didn’t know exactly what item on the invoice was paid. This created some issues for clients doing cash accounting and for all tax receipts automatically calculated by the platform.
As of July 11, reconciliation will now be done by item instead of by invoice, the benefit will be:
- Know which item is paid.
- Installment payments will automatically be reconciled - say goodbye to going into each account and doing it manually!
- Tax receipts will show the right amount and no manual procedure will be needed to correct them.
If the customer makes a full payment, reconciliation will be done automatically. If the customer makes a partial payment, reconciliation will have to be done by an administrator. Please note that any partial reconciliations will not automatically be affected by the changes; however, when an administrator accesses the invoice, they will have to manually reconcile by item and decide which items the payment should be attributed to.
Good news is, we have also simplified manual reconciliation by adding a new screen that displays all the unreconciled payments in order to facilitate manual reconciliation by the administrator. In addition, there is a tool for auto reconciliation.
New Financial Reports
On July 11, 2017, when you click on the Finance tab you will notice at the top next to Reports there is a new tab “New Reports”. The old reports will remain while you familiarize yourself with the new reports; however, we will phase the old reports out as you become comfortable with the new ones.
New Reports = Less Reports
As we said at the beginning, Amilia reports had not undergone any changes despite the fact we have added quite a few new features to the platform. This meant administrators had spent a lot of time manipulating the reports to get the information they need.
You will notice that in the new reports section, there are less reports BUT they are focused on what needs to be shown without any manipulation from your administrators.
The new reports are easily digestible which means, that people who aren’t accounting professionals will be able to easily see what’s going on with finance.
What hasn’t changed?
Amilia still supports accrual accounting, cash accounting, and everything in between - the only thing that’s different is the mandatory ledger codes (don’t forget there is a default ledger code) and reconciliation by items.