Theaccounting profession has developed over time and it is stilldeveloping. The introduction of the in the profession hashelped solve several issues that are associated with accounting. has made it easier for the accounting experts to work fromtheir own comfort without necessarily being at the client’s officeor area of business. This is possible through the several featuresthat has been designed with. Financial records can beextracted from the system after the financial information has beenfed to it.
Interfaceprovided by Accountant Copy File Transfer
has an option of converting a file received from a client into acompany file. These conversions have been made possible so that theywill take care of the restrictions that may exist in working with theAccountant’s Copy. In a case of such a complication, the file canbe converted to the company file to make the work to be performed onit easier (Madeira, 2014). In this case, the accountant may find ithard to work with the tasks of the client on a daily basis if no dataavailable on the company website and this makes the client send thedata to the accountant through other means. The accountant performsthe required tasks on the company file, and no entry is permitted onthe file at the client’s computer. After the accountant is donewith the work, he will send it to the DC client who may save and useit as it is or may do editing to it after they have done theconverting of the file (Perry and Madeira, 2009).
Properaccounting for the TakoSami transaction and the effects
DominicConsulting has debited Cash account that is incorrect becauseTakoSami has paid Dominic Consulting in advance in return ofservices. The credited account as recorded by the DC Company iswrong. There are no sales that have been made to TakoSami. Since thecompany has not offered the services to TakoSami, the amount paidshould be recorded in the DC books as a liability. Therefore afterreceiving the cash, prepaid assets should be debited while accountspayable should be credited. After the services have been offered, theaccounts payable should be debited while the cash account should becredited (Nelson, 2008). The improper recording of this transactionwill lead to wrong figures in the respective accounts, cash flowstatement, the profit and loss account, and the statement offinancial position. `
Thebalance sheet totals were underestimated because of the improperrecording of the retainer fee. Specifically, the items of the balancesheet like the prepaid assets and the accounts receivables were notcaptured after the cash was received. Likewise after the company hadoffered the services, the accounts receivable and the cash accountwere not recorded as expected and, therefore, the individual accountswill be affected as well. The profit and loss account was affectedas well because of the unrecorded retainer fee as income to DCCompany. Since the incoming cash and outgoing cash of a company arerecorded on the cash flow statement, it was not affected as the cashreceived from TakoSami was recorded as part of the cash inflows.
Inmy review, I found the major problems of the company to be therecording of the retainer fee. This figure was not properly recordedand, as a result, it affected the other statements like the, profitand loss account. Dominic Consulting does not understand that oncecash has been received before the services have been offered, thereis a difference in the treatment of such an item compared to when theservice has been offered. To solve this, wherever the companyreceives any payment before offering the services, it should creditthe accounts payable account and debit the respective prepaid assetaccount. After the services have been offered, the company thecorrect treatment should be debiting the accounts receivable andcrediting the cash account.
Thefeatures in like the free Intuit Accountant File Transferaccount have made the transfer of files between the client and theaccountant easier. Proper entries in the System leads tocorrect system generated financial statements. Consequently, wrongentry of information may lead to wrong statements from the system.Attention should be drawn when entering information in the system sothat efficient, clear and correct financial information could bedrawn.
Madeira,L. (2014). 2014 in Depth.Que Publishing.
Nelson,S. (2008). 2008 All-in-One Desk Reference for Dummies.John Wiley & Sons.
Perry,G & Madeira, L. (2009).2009 on Demand.Que Publishing.