Financial accounting is separate from WIP accounting
Financial accounting – meaning receivables, payables, banking, payroll, and financial reporting – is a separate set of processes from WIP accounting and can be performed using an outside accounting system. Our Financial Transfer can be used to update the outside system with daily vouchers for AR/AP processing and period end account totals to reflect the activities of the manufacturing system.
Consider converting to a mainstream accounting package
If you are using the Legacy Financials accounting configuration, we advise you to consider converting your financial accounting processes to one of the mainstream small business accounting packages such as QuickBooks, Xero, Sage, or MYOB. DBA will continue to be used for WIP accounting, but any of the mainstream accounting packages can offer substantial benefits when it comes to financial accounting.
Multi-Currency is not supported within the DBA Legacy Financials
If you are using the Legacy Financials accounting configuration, be aware that the legacy financial modules --Accounts Receivable, Accounts Payable, and Banking – have no multi-currency capabilities. For multi-currency processing you must convert to the Financial Transfer accounting configuration and a mainstream accounting package for financial processes (receivables, payables, banking, payroll, overall general ledger).
Financial Transfer Guide Multi-Currency
Why we introduced the financial transfer
Our three financial applications – Accounts Receivable, Accounts Payable, and Banking – were standard elements of the system when DBA Manufacturing was first introduced in 2004. By the end of the decade, however, it was apparent that the market for small business accounting software was increasingly dominated by a few popular products such as QuickBooks, Sage, and MYOB. In response, we introduced our Financial Transfer capability so that companies using these popular products could use DBA for manufacturing without requiring an accounting system conversion.
Our focus is on WIP accounting with financial transfer
Our accounting expertise is in WIP accounting and absorption costing, which is a highly specialized type of accounting that is not addressed by mainstream small business accounting packages. Therefore, our developmental focus is on WIP accounting with financial transfer, which is where we add the greatest value and benefit to our customers.
The majors are unsurpassed at financial accounting processes
The mainstream accounting packages are unsurpassed when it comes to financial accounting processes -- tracking receivables and payables, handling multi-currency banking, receiving payments and paying bills, processing payroll, managing bank and credit card accounts, and financial reporting. These products are now highly advanced and link with credit card companies, banks, and payroll processors to provide online banking and other integrated services.
The majors specialize in payroll processing and services
Payroll is a complex accounting process. It interacts with a great many liability and expense accounts and involves a variety of taxation, human resource, and regulatory issues and requirements. The mainstream small business accounting packages provide an in depth array of payroll features and services as well as linkages to outside processors such as ADP and Paychex.
We use QuickBooks for our financial accounting
Here at DBA Software Inc. we use the latest version of QuickBooks for our own financial accounting. We find it to be an excellent product, especially when it comes to banking, payroll, and financial reporting.
Benefits of using a mainstream accounting package
Because our design cleanly separates financial accounting from WIP accounting, you have the option of converting to one of the mainstream accounting packages, which provides the following benefits:
•Mainstream packages are widely used and supported in the accounting community.
•Mainstream packages stay abreast of payroll, taxation, and regulatory issues and requirements.
•Mainstream packages include integrated payroll and support services and also link with outside payroll processors.
•Mainstream packages link with banks to facilitate online banking and bank account reconciliation.
•Mainstream packages offer extensive financial reporting.
•Mainstream packages offer online editions for a low cost monthly subscription.
The Financial Transfer cleanly separates the two systems
Although the mainstream accounting packages are superb for financial accounting, they are woefully inadequate for any type of manufacturing or inventory processes, including sales orders. Our Financial Transfer provides a clean separation of processes between the two systems that keeps the financial accounting system free of any inventory or line item detail.
Only a basic version is required for minimal cost
You can convert to one of the mainstream accounting packages at minimal cost because only a handful of users is required for financial processes and you only need to purchase a basic version such as QuickBooks Pro.
What will be different?
When you use an outside accounting system for financials, the only significant difference in your accounting activities will be a daily AR voucher transfer for any customer invoices and credit memos and a daily AP voucher transfer for any supplier invoices and credit memos. Account totals are transferred in a single batch transaction at period end.
Spreadsheet transfer works with all the packages
Our three data transfers – AR Voucher Transfer, AP Voucher Transfer, and GL Summary Transfer – are made by spreadsheet (CSV file) because it is a universal data transfer format that is supported by virtually all data import utilities.
The ideal accounting solution for a manufacturing business
Using DBA’s manufacturing accounting system in combination with a mainstream small business accounting package gives you the ideal accounting solution for a manufacturing company.
