Use our bookkeeping software to get your business organized right away
Start now to get your business organized (and keep it that way) with the help of myAbakus. Watch the following 4 minute video to see how easy it is to start entering transactions in myAbakus.
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Video transcriptionHi, I’m Federico and if you’re willing to put up with my accent, I’d like to show you how to enter your first transaction in myAbakus.
To do so I created an account for my demo company, which I called Acme Inc.
The first thing we normally see when we login to myAbakus is the overview: the business snapshot on the left and the business history on the right. This is what accountants would refer to as balance sheet and income statement.
Everything is in zeros because we have no data yet, so let’s go ahead and enter the first transaction.
We go to income, and then click on add a transaction.
The auto-ref is an automatic counter. The date is by default today’s. Reference could be my own invoice number, say, A-321. In customer I type, say, Willie Coyote. And if I click on details, I can add more information about him, but for now we will continue with only the name.
I now type the product we are selling: let’s say it’s dynamite. myAbakus detects that the product doesn’t exist and gives me the option to create it. This is a product that I buy and sell, so let’s select control inventory, enter 100 as the regular selling price, and then save.
Now let’s say we’re selling 10 units of dynamite; select VAT, which is 16%, so the total is now $1,160.
We now go to pay and select cash as the payment method. myAbakus assumes we were paid in full today, so for now let’s say this was the case, and save.
There it is: our first income transaction.
Let’s quickly check where the other information we added with the transaction ended.
We go to customers and suppliers and there we find Willie Coyote. We go to products and services and there we find dynamite. As you can see, there is no need to have all customers or products in myAbakus to start using it: you can simply add them as you enter your transactions.
Finally, let’s take a quick look at what happened with the overview.
To do so we first click on update. On the left column of the snapshot I have $1,160 in cash, which is what we collected on the sale. On the right column we have $160 in taxes, which is the VAT we now owe the government, and $1,000 in capital, which is pure profit on the sale.
As you can see, what I have (the $1,160) equals what I owe (the $160) plus what is mine (the $1,000). This is a another way of stating that assets equals liabilities plus equity, which is the basic accounting equation and as any accountant will tell you, the foundation for the double-entry bookkeeping system.
Now let’s look at the business history. The $1,000 income on the left column is equal to the $1,000 profit on the right column. We clearly cannot make a 100% profit margin, so this is simply because we have not entered any purchases or expenses yet, something will do in the following videos.
I hope this was helpful and clear. And thank you very much for your attention and interest in myAbakus.