Understanding QuickBooks for a cooperative society and how you can set it up to track members contributions and savings and loan to members. This article will expand our knowledge on how to use and setup QuickBooks for a cooperative society.
As the name suggests, cooperative society refers to that type of business organization, wherein people work and save funds together, for a common goal i.e., profit to satiate the welfare of its members.
The truth about accounting today is that; financial industries is revolutionized with the integration of accounting software’s. QuickBooks will not only enhance the precision level of co-operative society books but also speeds up the query resolution period (The resolution of the query means me spending time pulling all the information together – This will look extremely difficult without a proper book-keeping of members funds/accounts…). With the help QuickBooks efficiency and accuracy, problems arising from pulling members contribution are solved forthwith.
QuickBooks software focused on accounting and book-keeping concentrate on the critical needs of the user, including enhancing consumer service, cost-effectiveness, data convergence in real-time, and improving security. For co-operative society to adopt QuickBooks and its applications allows the group to build for its members a healthier and more bracing report.
Benefit for using QuickBooks Accounting Software for your Co-operative
- It helps you keep track of each member contributions or savings.
- It helps you keep record of loans to members
- It helps you keep a smart focus on your financials
- It helps you generate your financial standard in real time
- It helps you make immediate financial decision
- It helps you keep track of your inventories.
- It helps you track your project costing.
- It track expenses incurred on a particular project.
How to set up Co-operation society on QuickBooks
Create a service under the list menu and name it member’s contribution and map it to a liability account. Use sales receipt window to receive each member’s contribution which will always increase the liability account into a specific bank account.
Chart of accounts
Chart of accounts is the foundation or bedrock of any accounting software implementation as it’s designed to help you determine what type of account heads you should be using for any entries like Income, Expenses, liabilities, assets and equity.
Classes on QuickBooks:
Classes in QuickBooks is used to track projects for specific reports and this will help us know the profitability and expenses incurred on each project that is been handled by the cooperative bodies using profit or loss account by class.
Loan Disbursement: how to setup loan collected by members of the cooperative society, follow the steps below;
- Create an account head called Loan to members and map it to a current asset account.
- Create another account head called interest on loan and map it to other income account.
- When disbursing the loan use the write check features enter the bank you are giving out the loan from, enter the members name, date of disbursement. Pick the loan to members account, enter the amount and click save and close.
- When the members is paying back the loan use receive payment option and enter the amount the member is paying including the interest portion to the designated bank account and click save and close.
And at the end of all this you can check each member’s activities and loan disbursed and how repayment is made.
The banking menu keeps you updated on each transactions done in a particular bank account. You can also effect a fund transfer transaction from one bank to the other using the fund transfer menu which automatically reduce the amount from the sending bank account and increase the amount in the receiving bank account. The banking menu also can be used to do bank reconciliation in other to ascertain the true position of the cooperative financials where your bank statement will be matched against your QuickBooks postings.
You can also import your bank statement from excel into the QuickBooks software and map each transaction to its various chart of account heads.
Expenses: In all businesses expenses are incurred either partly paid or fully paid. Therefore the write check and enter bills features are used to record one-time expenses paid to vendors or administrative expenses incurred in the business and this is to ascertain the true values of the profitability of the business after all expenses are been taken care of.
Financial Reports: At the end of the month, weekly or daily, you should be able to generate the following reports.
- Statement of financial position.
- Income statement.
- Member’s contributions.
- Members loan reports (Liability)
- General Ledger
- Audit Trail.
- Project reports.
- lots more.
This is a summary on QuickBooks for a cooperative society, for further information on how to setup QuickBooks for cooperative society. kindly send us a mail using [email protected] or call us on +2347012193226.