This review of QuickBooks accounting management software customised for cooperative societies will help you understand how to manage the operation, automate transactions, accounting, and report generation.
I have been deploying accounting software for growing businesses in Nigeria, both in premise and remotely, which has exposed me to the diverse cash flow challenges confronting these SMEs and how to rightly provide the best solution using a combination of accounting skill and financial software customization. One striking thing in this industry is that every client has a unique problem. Today, I will be sharing tips on cooperative societies can run their finance effectively using QuickBooks.
In deploying QuickBooks for cooperative societies, I have discovered that there are core things finance managers of every cooperative society need to get right in order to accurately track cash flows, generate a reliable financial report and take a timely decision.
Request For Our Accounting Software ServiceFor over 5 years, I have implemented QuickBooks for more than 152 companies under Retail, Manufacturing, Oil & Gas, Real Estate & Construction, Travels, Hospitality, Corperatives, NGOs, Financial & Service Sectors.
- Landmark Centre (Event Centre)
- Mountain Ice Travel & Tour (Travels)
- BTS System (Service)
- Logos Travel Support & Solutions Ltd (Travels)
- Germaine Auto Centre (Autos)
- BD Consult (PR)
- Starlight Nigeria (Retail)
- Temple Private School (Education)
- C. Charles Resources Limited (IT consulting)
- Adeniyi Coker Consultants Limited (Real estate and construction)
- The Nigerian Economic Summit Group (NGO)
- Value Mart Supermarket (Retail)
- Transweb Bureau De Change (Financial Service)
- Wakanow Travels (Travels)
- Vektro Food Limited (Manufacturing & Retails)
- Orient Petroleum PLC (Oil & Gas)
- Plus More
Charts of Account
This is the most vital part of your accounting software implementation as it determines what account heads appear on your report. You miss this, everything will go wrong. For instance, when setting up “members’ contribution, loan or cash advance, interest payments, investments, bank accounts, etc “, you need to know the type of accounts they are categorised under so that your financial statement can be relied upon.
Savings & Deposit Management
A cooperative society is characterised by “the coming together of members who share a common interest, pool funds together to achieve a goal” and as such it’s necessary that member’s equity (contribution) and investments are monitored and updated instantly. In QuickBooks, this is a straight forward process:
- Create an item called “members’ contribution” and map it to a “liability account; members’ contribution”.
- Use the “Receipt Window” to accept daily, weekly or monthly payments from your members (by cash or cheque) into a designated bank; and send it to their email or print a copy. Make sure you select the name of the member so that every transaction on that name is accurately tracked.
All members’ contributions are kept in a common place (selected banks), so, it’s proper to add all the bank accounts owned by the cooperative society with their respective balances. If there is a transfer of cash, the “fund transfer window” lets you effect that immediately; which automatically reduces the sending bank and increases the receiving bank. At the end of the monthly, you can reconcile bank balances with your cash book.
If there is an outstanding loan that’s either past or overdue loan owed by members of the cooperative society, you can add all these members and their respective balances which the software will collate to generate a loan report. In setting up an account head to track loan disbursement and interest income, follow these steps:
- Create an item called “loan disbursement” and map it to an asset account.
- Create another item called “interest on the loan” and map it to an income account.
- For current loan or cash advances, create an “invoice” to enter the details of the loan transaction; member’s name and address, the amount disbursed, transaction date, due date, interest rate figure and use the memo to enter relevant information about the loan.
- For repayments made by members on a weekly, daily or monthly basis, use “receive payment” to receive the amount paid which will reduce the principal and interest balances.
- For details of overdue payment, use “overdue invoice report” to see a summary of members who are yet to clear their balances.
Cooperative Investments & Assets
It’s normal for a cooperative society to invest in a business or property which also need to be properly tracked or monitored. QuickBooks provides various categories of account types including “fixed assets” and “other assets”. You can use that to track all the property owned by the corporative society and for revenue generating asset, use “other assets” to record their value as at the beginning of the year or a selected conversion date.
Income earned from these investments are also recorded via the “general journal entries window” to the bank account and dividend/rental income accounts.
Expenses & Payments
A cooperative society, just like other businesses, incurs expenses which could be outstanding or cleared. The essence of monitoring your administration expenses is to match it against income earned so that the real position of the society can be revealed.
There is a “write cheque” window and “enter bill” designed to let you capture all your expenses and the banks’ withdrawals were made.
If all these above areas are rightly implemented, your financial report shouldn’t be a problem. Some of the popular needs of a cooperative society are: total contributions my members, total loan disbursements and interest due, investment value and profit earned, bank statements, cash floww, payables, etc. These various reports are customised to show to daily, weekly or monthly figures.
While these are my ideas of what implementing an accounting software for a cooperative society, you can as well share your opinion, ask questions if you feel there more challenges to address by contacting our support centre at firstname.lastname@example.org or call 08105090001