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I am looking for a quite simple method to manage all typical company expenses, which do not have anything to do with human resources, i. e. telephone bills, bills for office stuff. I mean all things a company has to pay without reselling them...
Can this kind of expenses be managed by a person without any accounting background? I have two different ideas, but both, they are not perfect. Here they are with all their advantages and disadvantages:
Journal Entries: For every entry, a partner has to be set up. That means, for a single purchase with a special shop this shop has to be set up as partner. Not so good... The person generating these booking entries has to know the right account and whether it has to be credited or debited. Too much accounting knowledge required.
Finance --> Suppliers --> Purchase Receipt: This could be a clever solution. Journals with self-explanatory names can be preconfigured and linked to the right account by an accountant. The person inserting all company expenses only needs to assign the expenses to the right journal. With a bit of practise and experience this should not be any problem. Disadvantage: To make all important journals seen in the form mentioned above, they must have "Purchase" as type. For my understanding, "Purchase" means things which will be resold, i. e. things billed to customers. This is not the case with company expenses. So journal type will not make any difference between sale products and company expenses. Not so good either...
What would you advice how to handle company expenses? Is there any approach I have not known yet?
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|Asked: 5/8/14, 3:44 PM|
|Seen: 1808 times|
|Last updated: 9/29/15, 5:38 PM|