Learn some tips and tricks for things you can do before using Kashoo.
All businesses - New and Existing
Before starting to set up everything in Kashoo, it’s beneficial to collect some information beforehand to make the setup process even easier, such as:
Company name and address: This is the legal company name and address. This information will also be used when sending out customer invoices.
Business number, Federal Tax ID or EIN (Employer Identification Number): In certain countries, it’s a requirement that one of those numbers be included on customer invoices.
Fiscal year: Your fiscal year will affect your reports, so it’s necessary to know what it is.
Sales Tax Information: If you collect sales taxes, get a hold of your sales tax registration #, tax % rates, filing frequency, and filing dates.
Finding out your Fiscal Year
It’s very important to get the right date for when your fiscal year starts, so if you don’t know, find out.
Most countries require their citizens and businesses to report earnings and pay taxes on an annual basis. A standard fiscal year begins on January 1 and ends on December 31. However, when it comes to running a business, some countries allow businesses the flexibility to choose their own fiscal years. This is a discussion that is most suitable between you and your accountant / financial professional.
This information is also important for record keeping purposes.
Existing Businesses
Extra information that existing businesses need to get are:
Trial Balance: This is your chart of accounts and the balances in each account. This is used to set up your accounts and to accurately show the financial state of your business. If you have this in a spreadsheet file, you can import it.
Contacts: These are your lists of customers and vendors. If you have them in a spreadsheet file, you can import them.
Unpaid Customer Invoices: This is a complete list of each outstanding customer invoice and their details, such as date and amount owing.
Unpaid Vendor Bills: This is a complete list of each outstanding vendor bill and their details, such as date and amount owing.
Uncleared checks: This is a list of any checks that you have written, but have not cleared the bank as of the date of your trial balance report.
Choosing a Start Date
A start date is the day you’ll start entering transactions into Kashoo. It’s kind of like the move in date when moving homes.
Knowing your fiscal year will help you decided what start date do you choose?
You have two options:
Start from the beginning of the fiscal year
Start part way through the fiscal year
Beginning of fiscal year
A great start date is of course the beginning of your fiscal year. If you're within a few months of your fiscal year, this is the easiest and cleanest way to go.
If your start date is a few months past the beginning of your fiscal year, you’ll need to re-enter the transactions for the year into Kashoo to ensure you have all your fiscal year data in Kashoo.
Part way through fiscal year
If you're more than half way through a fiscal year, the work to re-enter all the transactions may not be practical or desirable. So having a start date part way through the fiscal year is the best method.
It is recommended that you choose a start date that is the beginning of a month, quarter, or sales tax filing period. Choosing a start date in the middle of a month or tax filing period creates more work and potential issues with bank reconciliations and sales tax filings.
For example, if you filed sales or income taxes from January 1st to March 31st, choosing a start date of April 1st would be recommended.
What happens to my data before the start date?
Choosing a start date means that any data before that time won’t be found in Kashoo. The implication of this is that if you’re trying to look up an old invoice or bill, you won’t be able to do it in Kashoo. To find that information you’ll need to reference your old bookkeeping system.
But I need the data from before the start date in Kashoo.
Please visit the article What data can I import into Kashoo to find out how to import transaction and summary level data into Kashoo.
Readying your data from the other bookkeeping system
When it comes to your previous bookkeeping system, you’ll want to ensure that before your start date that:
Accounts are reconciled - Make sure your bank, credit card, and other accounts should be reconciled are reconciled.
Trial balance is accurate - The trial balance is all your accounts and their balances. You’ll want to make sure this data is accurate before doing the move. Many businesses do adjusting entries at the end of their fiscal year to ensure this.
If you are unsure of the above two steps, we suggest you consult a bookkeeper or accountant.