Original Work Please Farm Branch Rentals Needs Some Assistan

Original Work Pleasefarm Branch Rentals Needs Some Assistance In

Original Work Pleasefarm Branch Rentals needs some assistance in adding 2 new vendors and 2 new customers. Please add the following vendors and customers beginning balances to the company within the computerized accounting system software selected. Be sure to include the balances as of December 1, 2015. LMNOP Rental 4537 White Road Siler City, NC 36647 Phone Number: Contact: Tim Waltz Vendor Type: Supply Account Balance: $2359 HJW Reality 543 Mill Lane Smithfield, NC 65343 Phone Number: Contact: Nicole Smith Vendor Type: Supply Account Balance: $765 Geller Construction Company 76 Rock Quarry Road Smithfield, NC 65463 Phone Number: Contact: Kevin Lowe Customer Account Balance: $2134 Rocks Etc. 712 Hwy 158 E Siler City, NC 77634 Phone Number: Contact: Justin Tart Customer Account Balance: $543 After adding the vendors & customers, provide a report that explains the steps in detail, with screenshots showing how to add the vendors & the customers in the software. Submit the following for this assignment: A memo of words to Farm Branch Rentals that covers the following: Explains the steps for setting up vendors & customers Use screenshots to show how to add the vendors & customers in the software. Include the required items that are needed and other items that you think of that would be helpful in properly adding vendors & customers. What the aged-payables & aged-receivables reports are. How they might be used to make management decisions from both the view of internal and external users. Include how the reports would be used to make management decisions for the business. Include an aged-accounts payable report showing the correct set up of the vendor accounts. Include the beginning balances for these accounts as of December 31, 2015. Save the aged-payables report as a PDF document named P3-IP1_AP_LASTNAME. Include an aged-accounts receivables report showing the correct set up of the customer accounts. Include the beginning balances for these accounts as of December 31, 2015. Save the aged-receivables report as a PDF document named P3-IP1_AR_LASTNAME.

Paper For Above instruction

In any business, maintaining accurate and up-to-date vendor and customer records is essential for effective financial management and operational efficiency. Farm Branch Rentals, as a rental and supply company, must ensure that its accounting software accurately reflects all active vendors and customers, including their beginning balances as of a specific date, in this case, December 1, 2015. The process of adding these accounts involves several steps within the accounting software, which need to be carefully executed to facilitate correct report generation and reliable financial analysis.

Steps for Setting Up Vendors and Customers in Accounting Software

The first step in setting up new vendors and customers is to access the specific section of the accounting software designated for managing these accounts. Typically, this is found under menus labeled “Vendors,” “Suppliers,” or “Customers,” depending on the software. For demonstration, I will describe the general process applicable to popular accounting systems such as QuickBooks, Xero, or Sage.

To add a vendor, navigate to the “Vendors” tab and select “New Vendor” or “Add Vendor.” Fill in the vendor’s information, which includes their company name, address, phone number, contact person, and vendor type (e.g., supply, service). Essential fields include the vendor name, address, contact details, and account balance. For the beginning balances as of December 1, 2015, input the amount owed to the vendor, ensuring that the account is properly categorized under accounts payable or a specific vendor account.

Similarly, to add a customer, go to the “Customers” tab and select “New Customer” or “Add Customer.” Enter the customer’s name, contact details, address, and account balance. It is also important to specify the type of customer or sales classification if applicable. The starting balance represents the amount receivable from the customer as of December 1, 2015.

Inserting the beginning balances correctly is crucial since they impact the aging reports and overall financial statements. Most accounting software allows users to input opening balances directly during account setup or through journal entries if accounts already exist.

Screenshots and Required Items for Proper Account Setup

While I am unable to provide actual screenshots here, typical images would include showing the vendor details form filled with the relevant data for LMNOP Rental and HJW Reality, and the customer form for Geller Construction Company and Rocks Etc. These would demonstrate fields such as Name, Address, Contact, Phone Number, Vendor/Customer Type, and Beginning Balance. Additional helpful items include tax ID numbers, payment terms, and notes, which can aid in clarifying account purposes and ensuring accurate record-keeping.

Understanding Aged Payables and Receivables Reports

The aged-payables report consolidates outstanding liabilities owed to vendors, classified by the length of time the bill has been unpaid—commonly segmented into 30, 60, 90 days, and over. Conversely, aged-receivables report summarizes amounts due from customers, arranged similarly by aging periods. These reports are vital for internal decision-making, cash flow management, and financial health assessment. External users, such as creditors or investors, utilize these reports to evaluate the company's liquidity and credit risk.

Use of Aging Reports in Management Decision-Making

For internal management, aged-payables provide insight into upcoming cash obligations, aiding in cash flow planning and prioritization of payments. It highlights overdue or critically overdue accounts that may require collection efforts or negotiations. Aged-receivables assist in assessing the effectiveness of credit policies and collections, preventing potential bad debts.

From an external perspective, these reports demonstrate financial stability and operational prudence, influencing credit decisions and investment considerations. Accurate aging reports help external stakeholders evaluate the company's ability to meet short-term obligations, ensuring transparency and fostering trust.

Preparation of Aged Payables and Receivables Reports with Beginning Balances

Using the accounting software, generate the aged-payables report, ensuring all vendor accounts are correctly set up, including the correct beginning balances as of December 31, 2015. Save this report as a PDF named P3-IP1_AP_LASTNAME. Similarly, produce the aged-receivables report, confirming customer accounts are accurately reflected, and save as P3-IP1_AR_LASTNAME. These reports serve as a starting point for ongoing account monitoring and financial analysis.

Conclusion

Accurately adding vendors and customers into accounting software is fundamental for comprehensive financial reporting and effective management decision-making. Coupled with properly generated aged payables and receivables reports, these tools enable Business managers and external stakeholders to monitor financial health, plan cash flows, and make informed strategic choices. Proper setup and regular review of these reports are essential components of Sound financial management practices at Farm Branch Rentals.

References

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