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Certain Things, which you have to keep in your mind while building up a new company


First of all when you open Peachtree software, by clicking o setup a new company, after that entering the company’s name, address, country name, telephone etc.…click on next. There is window, which will ask you about your chart of accounts. As we are setting up s new company we will select build your own company option, then select your accounting method, which is usually accrual basis. After that select your posting method. We are choosing the real method because we want transactions to be posted to ledger as they are entered and saved. After that we will choose our accounting period which is mostly 12 months, we are also choosing the option of 12 month accounting period. Then in the next screen you will be asked about monthly accounting period, which is the most important thing and you have to select the right months and year for it, otherwise your report will be ruined. There are three things, which you will be asked;



1) When do you want your first fiscal year start?
2) What is the first month you will be entering data?
3) What is the first year you will be entering payroll?

These three options are very important, you have to fill these options carefully and correctly. In the above picture you can see that we are selecting the first fiscal year is “JANUARY 2009” and month of entering data is “JULY 2009” which shows that we have already entered the data of January to June..
After that we will click next and then click on finish icon…now we will open the Peachtree software and click on “MAINTAIN” icon to maintain the chart of accounts, which is located in the upper bar. After selecting the chart of accounts option in Maintain menu, there is a window of chart of accounts..
There you can see that there are three things you will have to enter; Account ID, Description and Account type. After entering each Id and description and account type we have to save it by pressing ALT+S key or by clicking the save option which also there in window on top..
After that you have to click on beginning balance and have to select the period, which is very important. But before clicking you have to check that whether you have maintain the account of “RETAINED EARNING” or not. Because it is very important for you to make this account otherwise after completing the chart of accounts there will be an error and you have to again maintain the chart of accounts..

   

This is the window from where you have to select the beginning balances, and the ending balance of the previous month will be the beginning balance for your next month that’s why we select the period from”6/1/09” through “6/30/09..You have to be careful while selecting the date and month and in this software, first you have to choose month then date and then year.i.e.(month/date/year)

After selecting the correct period click on “ok” button, then there is detail list of chart of accounts so there you have to enter the amounts and after entering the amounts you have
to see the amount of trial balance if it is zero, it’s mean you entered the right amounts if it is not zero then you have to recheck the amounts and have to correct the amounts so that the total becomes equal and trial balance becomes zero. The following is the picture..



Here in the above picture you can see the total is equal and the amount of trial balance is zero. After that you have to press “ok” to save these accounts..

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