Self-Paced Training - Lesson 8
Lesson #8 - Write Checks, Enter Bills & Pay Bills
As mentioned in lesson #3, if you are using the full accounting in MaxxTraxx Corporate to generate your financial reports, entering in all your bank transactions is essential. The bank feature for tracking those transactions is the Write a Check feature. Whether you are actually writing a computer check or just entering in the information on a handwritten check, MaxxTraxx captures what that check was for when you disburse that check payment to the general ledger. Likewise for other bank transactions like using your checking account debit card or signing up for an electronic funds transfer from your bank account, this Write a Check feature is used to enter that banking transaction.
Along the lines of writing checks is Paying Bills. If you are entering into MaxxTraxx all of your Restock Parts Invoices (receipts for parts purchases), you are automatically generating your Pay Bills list. When you click to “post and update inventory” in the restock parts feature, an invoice is posted on the vendor account and will show up as a bill to pay on the Pay Bills list. It is here where you will match up what is in MaxxTraxx with what appears on your vendor statement, tag the invoices to pay, and then write a check (or enter a bank account payment for debit card/electronic payment).
For monthly bills like rent and the utility bill, you will “Enter a Bill” by selecting the vendor (landlord, electric company, etc.) and create an invoice, again disbursing that charge like you would a check and adding that invoice to your “Pay Bills” list automatically to be paid on its due date just like your parts vendors.
At the end of the month, you will perform your bank account reconciliation. This process, of verifying that what is in MaxxTraxx, beginning balances, checks, and deposits, match your paper bank statement is what the training department likes to call, “the great equalizer.” By verifying all your shop’s financial transactions are matching up to your bank statement, you can then be sure all the data entry that was done through the month is complete and will present an accurate financial picture of your business in the form of an Income Statement, and if set up initially, a Balance Sheet as well.