Setup of a Company and maintaining chart of accounts

After starting the Peach tree program, we will have this screen

                                                                                  
Here five different options are available as we can see in the above window.

SET UP OF A NEW COMPANY

If we want to set up a new company, we will click on the option of Set up a new company,

And then the following guiding screen will appear.

This guiding screen will tell us that we will be asked about the name and address of our company, its chart of accounts, accounting and the posting method of entries and also about the financial accounting period of our company. After viewing this, then click on the Next,

Then a screen will appear asking about some information for correspondence with the company.

We have to write all the required information here, as we can see in the below window

After writing all the required information here, then click on the Next  

the following screen will appear.

Here five different options are given for our convenience; we can choose anyone of these five.

For example, if we will choose the option of

Set up a retail, service, construction, manufacturing or distribution company, and click on the next, the following screen will appear 

Here charts of accounts of all five these 5 types of companies are available. Charts of accounts of retail, service, construction, manufacturing, and distribution companies are given. We can also view their charts of accounts.

By clicking on the option of View Chart of Accounts, the following screen will appear

Here an index of different companies and there relative accounts are given.

After viewing the chart of accounts, we c lose this screen and go back to the previous screen of chart of accounts, as we are making our own company. We will choose the option of Build your own company,

 and then click on the Next.

 A new screen will appear asking about the accounting method of our company

After choosing either

·         accrual basis(income or expenses are recorded when we buy or sell something independent of the fact of cash received or paid)

Or

·         cash basis (income or expenses are recorded when we receive or pay the cash)

 Then click on the Next button, the following screen will appear,

Here we have to choose the posting method of our company. Two options are available; real time and batch.

v  Batch time (transaction s are posted in the ledger as they occurred).In this method, we cannot correct the mistakes which we have made while recording the data, at any time.

v  Real time (transactions are posted in ledger in groups after a specific time period). In this method, we can realize and correct the mistakes which we have made in entering the data.

After choosing anyone of these options, click on the Next.

In the new appearing screen, we can decide the accounting period of our company.

After choosing the accounting period that either it will be normal or different from the normal accounting period, and then Click on the Next button.

A screen relative to this will appear. 

In this screen, we have to decide about the start of our companies’ first financial year.  Then we write the month in which the company is going to enter the data, and the payroll. After deciding all this, click on the Next button

Here comes a congratulation screen, telling that we have completed all the required information and the software has set up all the default settings for our company. And we can also change these default settings at anytime.

Here we will click on the Finish button. By clicking this button the file creation procedure will start. 

After completion of this, a new screen will appear as follows:

This screen is showing that the all the settings have been made for our company. And now the software is ready for entering the data.

MAINTAIN CHART OF ACCOUNTS

Here we will click on the Maintain menu and select the option of Chart of Accounts from it as shown below

By clicking on the chart of accounts, the following window will appear

Here we have to enter the account ID’s and their description and then choose appropriate account type according to the description, as shown below.

After writing each Account ID and its description and choosing the appropriate account type for it, press Alt+S or  button to save the account we have made.

We can view the chart of accounts we have made; by clicking on this magnifying glass button  

as shown in the window below:

We can save, delete or change any account we have made. We can also inactive an ID, which will not appear in the chart of accounts of company, later.

After making the required chart of accounts, we have a list of accounts just like the one given below:

ID	DESCRIPTION	ACCOUNT TYPE
100	cash in hand	cash
101	petty cash	cash
102	bank	cash
112	accounts receivables	accounts receivables
132	inventory	inventory
142	prepaid rent	other current assets
143	unexpired insurance	other current assets
144	prepaid advertisement	other current assets
155	land and building	fixed assets
156	furniture and machinery	fixed assets
157	vehicles	fixed assets
187	Acc. Dep. Land and building	accumulated depreciation
188	Acc. Dep. Furniture and machinery	accumulated depreciation
189	Acc. Dep. Vehicles	accumulated depreciation
200	accounts payable	accounts payable
210	salaries payable	other current liabilities
220	taxes payable	other current liabilities
225	interest payable	other current liabilities
235	short term loans	other current liabilities
245	pre-received incomes	other current liabilities
255	dividend payable	other current liabilities
265	provision for taxation	other current liabilities
270	bank loan	long term liabilities
300	share capital	equity gets closed
305	retained earnings	equity-retained earning

After maintaining all the required chart of accounts of the company , then click on the button of

A short screen will appear, here we have to select the month of which we are going to enter the data

(Suppose we have the trial balance of 30^st September 2011, we will select the option as shown above, because the ending balance of 30^th September 2011 will be the beginning balance of October 2011.)

After selecting the month, press OK

The following screen will appear

In this screen, we have to enter the beginning balances of our chart of accounts, after entering all the balances of our chart of accounts, the trial balance must be equal to zero.