Make sure everything (that should) has been accounted by keeping your cash accounts up to date and reconciled. Watch the following 3 minute video of how to stay on top of your cash with the help of myAbakus.
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Video transcriptionHi I’m Federico and with the help of Alex’s mac os voice, I’m going to make you a quick demo of how to stay on top of your cash using myAbacus.
We are in the demo company that we’ve been using for this video series.
Let’s start by going to income…where we find, with today’s date, the transaction we had registered for 1450 of which 725 is still outstanding.
Remember this was for dynamite and canary grass that we sold to Willie Coyote. Since these products were not given to us as gifts, let’s proceed to register the corresponding purchase.
We go to expense…new…and…here we are going to say that the purchase happened…yesterday…that our supplier…was…Warner Brothers…that we bought…dynamite…30 units…at a price of 60…and that we also bought…canary grass…15 units…at a price of 30…for a grand total of 2610.
Let’s say…we paid…in cash…half, 1305, on delivery…and…that we agreed to pay the balance…in 2 weeks…we can now go ahead and…save…
There it is: my first expense transaction. Now that both my purchase and sell are registered, let’s see what is happening with my cash…
The negative balance can be explained because the payment made to Warner Bros at the moment of the purchase…is greater than what we collected from Willie Coyote at the moment of the sale. Although this is arithmetically correct, it doesn’t reflect the reality.
The problem is myAbacus is unaware of the existence of a starting balance, so let’s correct that. We go to accounts…edit cash…enter the starting balance…which was…1500…at the end of last week beginning of this one…and save. Now we go to balances…and we see a new amount for cash of 920 which is the correct one.
In time range we can see that the balance is for today. Let’s say we want to check the corresponding changes from, for example, the beginning of the week.
Now we can see how 920 is the result of a starting balance of 1500 along with a net change of -580.
To finish, let’s take a quick look at the net change detail. We click on the -580…and myAbacus take us to the cash flow report…for the account and time period in question.
Here we can see how -580 is the combination of the 1305 payment we made to Warner Brothers and the 725 payment Willie Coyote made to us.
The key to stay on top of your cash is to always keep myAbacus in sync with reality.
In this case, given that 920 is the real balance, we have the certainty that the information in myAbacus is complete and accurate.
But if the real balance were, say, 800, we’ll immediately know that there is a problem with the information and should proceed to investigate and correct the discrepancy.
Controlling your cash is vital for the financial health of your business and to avoid unnecessary losses.
And the best of all is that by doing it, you ensure the integrity and reliability of your data, turning myAbacus into a valuable tool to measure the performance of your business and to keep it on the right track.
I hope this was helpful and clear. And thank you very much for your attention and interest in myAbacus.