History of Peachtree
Peachtree is one of the oldest Accounting software since the advent of “Personal Computer”. Firstly it was a DOS (Disk operating system) based software but it has evolved to its current Windows based user friendly version. The beauty of this software is its “Flexibility”. It can be used for any type of business organization (Sole Trader, Partnership and corporation) as well as fits for all types of business nature (Trading, Manufacturing and Services). Peachtree was the first software of its type to be offered to consumers for their accounting needs. As computer technology has changed, the software has kept pace and is available for all modern Windows based systems. Peachtree is available in many flavors. Peachtree Pro is designed for individual or small-business use, while Peachtree Quantum is targeted toward multi-user large corporations. Because of the different levels, every business can find the version of Peachtree that best suits their needs. Peachtree accounting software offers the consumer all forms of accounting services. Not only does the software provide General Ledger bookkeeping, Accounts Payable, Accounts Receivable, Payroll, Inventory and Job Costing can all be performed within the program. Peachtree accounting software makes keeping the books simple for companies large and small. Training and support are available and users are notified when upgrades to the program are available. Sage Software offers a host of compatible business programs that integrate with Peachtree to address specific accounting concerns and offers payroll and direct deposit for Peachtree customers.
1.Basics of Peachtree
Welcome to the peachtree urdu tutorial. First of All we should create a basic understanding about Accounting, Business, Manual Accounting, Computerized accounting and accounting Soft wares. A business can be defined as “Any legal activity undertaken for the sake of profit” It mean regardless of the size, nature and organization, the core and basic object of any business is “Profit”. So if profit is of such importance, then there must be a system through which profit can be measured and “Accounting” is that system. Traditionally accounting records were kept manually. All the accounting procedures like journalizing the transactions, Posting them into the ledgers, Preparing the trial balance, making adjustments, preparing adjusted trial balance and then preparation of financial statements were done by human beings manually. This complete procedure was not only hectic but there are many chances of errors as well. That’s why accounting soft wares. were introduced which have made the book keeping and accounting a “child’s play”. Accounting soft wares. just take the basic input like journal entries, recording of receipts, payments, sales, purchase and does all other stuff itself. Peachtree is also a famous accounting software.
Now as we have understand the basic things, lets start learning peachtree accounting software in a proper way. As you start peachtree for the first time after installing it, you will see a welcome screen which have a few options. These options are used for opening an existing company which has been previously setup, creating a new company (for creating a new company setup in peachtree), Converting a quick books company into peachtree, watching a brief tutorial on peachtree and exiting the peachtree software respectively.
2.Setting up your company
After getting familiar with the welcome screen, the first step which is required in order to keep our books of accounts in peachtree is to create a setup of our own company. For this purpose, use the second option from welcome screen. As you select the second option, a wizard will be started and will require some information regarding your business. The first form of the wizard is to be filled with the basic information of the company such as Company name, address, email address, fax number, web url, nature of business.
The second phase is to decide about the chart of accounts. In third step, you have to choose amount two accounting methods i.e Accrual or cash accounting system. The fourth step requires you to select one of the posting methods among “Real time” and “Batch” posting. In next step you have to describe the number of accounting periods in an year. Later on you have to state your first accounting period and first month of entering data and it is DONE. yea, you have successfully created the setup of your own company in peachtree.
3.Designing Chart of Accounts
Once you setup your company in peachtree, the next step is to design the chart of account for your company. Chart of account means the list of accounts which you will use while recording transactions in peachtree such as Expenses, Incomes etc. For designing chart of account, you must select the “Chart of account” option from the “Maintain” menu.
Three important elements must be decided while adding an account in the chart of account (i) Account ID (ii) Description/Account Title and (iii) Nature of account. Account ID means the account numbers which you assign to your accounts. Account Title means the name of account with which it will appear on financial statements And Nature of account means allocating the account as expense, asset, liability, equity or income.
Account ID’s can be allocated as you wish but there is some standards which may be followed to bring uniformity in your work. Moreover nature of accounts must be determined properly because it will affect the presentation of financial statements In accounting accounts are mainly divided in five natures which are Assets, Liabilities, Income, Expenses, and Capital. But in peachtree, these five natures are subdivided into 16 further categories in order to present balance sheet in classified form.
4.Setting up background information
After designing your chart of account, now its time to add your vendors, debtors, creditors and inventory Items in Peachtree accounting software. But even before taking this step, it seems appropriate to fix some issues which will be faced while you would be adding your debtors, creditors and inventory items. In order to do this, use “default information” option from the “Maintain menu and set the default settings which may match your needs.
In this chapter you will learn to set the defaults for your vendors, debtors, inventory items, rounding account etc. setting default values before adding vendors, debtors and inventory items will save a lot of time when you will actually add your debtors, vendors and inventory items.
5. Buying Goods
Unless you sell services, you must be dealing with goods. You buy goods, you sell goods but you can not sell goods until you buy them. In order to deal with goods in peachtree, you must setup inventory items in software.
When you want to buy goods, there must be someone who sells those goods to you and in business that “someone” is Vendor. Vendors are those persons or organizations from whom we buy goods on credit. It means if we want to buy goods in peachtree accounting software, we must setup the inventory items as well as the vendors list and in the following video we will add our inventory items along with the list of vendors.
Sometimes the goods we purchase from our vendors are not up to the mark or they are damaged. In this case goods would be returned back to the vendors. When we purchase goods from a vendor, he credits the sales account and debits our account. But when goods are returned back to vendor, he debits the Sales return account and gives us credit. In this regard we get a credit note from our vendor which is just an intimation that our account has been credited due to the goods returned.
In the following video, we will learn how to enter a credit note from the vendor.
In the following video, we will learn how to enter a credit note from the vendor.
6. Paying Bills
The goods purchased on credit, definitely requires payment to the vendors. Three situations in this regard can be raised: 1) You pay a whole invoice within credit limit 2)You pay a whole invoice after credit limit and 3)You pay a partial invoice. If we pay a bill completely within the credit time period, then we will be entitled to get a discount.
If we pay a bill partially or pay it completely but after the credit limit time, then there would be no discount for us. It should be noted that a good businessman must pay an invoice not before its due date and not after the due date (means he or she must avail the discount).
In the following video we will learn how to make payment to the vendors for pending invoices:
In the following video we will learn how to make payment to the vendors for pending invoices:
Any business regardless of its size and nature, cannot maintain its existence without profit (as profit is the main motive of every business). And profit would not pop out of the smoke. You will have to sale the products or services in order to generate profits.
But if you have to sale goods on credit, you must have to maintain the record of your debtors (the persons who have bought goods from you on credit and they have to pay in future). In peachtree, you will have to maintain the list of your debtors in order to sale goods to them, receive cash and maintaining the record.
In the following video, we will learn how to maintain the debtor’s list in peachtree and how to enter the sales of goods or services to the debtors.
In the following video, we will learn how to maintain the debtor’s list in peachtree and how to enter the sales of goods or services to the debtors.
Some time it happens that goods sold to the customers are returned by them (which is known as Sales return in accounts). If it happens, we issue a credit note to our customer who is returning goods to intimate him/her that his/her account has been credited.
In the following video, we will learn how to record a sales return in peachtree accounting software.Selling goods and services to the customers on credit basis is not a big deal. The real art is to recover that money from them. When you sale goods and services on credit, you receive a payment against that sale in some future time.
In the following video, we will learn how to record the receipts from customers.
Every organization must have three characteristics in order to be declared as organization which are: 1)Distinct purpose 2)People and 3)Deliberate structure. Here people means employees. When you have some employees in your organization, you must have to pay them. There are so many matters involved in this regard which need to be addressed properly.
First thing, when you pay your employees, you make certain deductions from their salaries (in accordance with the law requirements) such as EOBI deductions, Income tax deductions and many others. when you make such deductions, you have to maintain the records of such deductions.
Secondly, in many cases, employer make certain contributions in employees old age benefits, pension plans and other post retirement benefits. One must maintain the record of such contributions as well. In the following video, we will learn how to setup the employees payroll setup in peachtree.
10.Fixed Assets and Depreciatio
There might be a few business in the world which may exist without fixed assets. Fixed assets are required to produce goods (Plant & Machinery), for transportation of goods (Motor vehicle), measurements and calculations (Equipment) and for establishing business (Buildings and free hold premises).
In the following video, we will learn how to record the purchase of fixed assets and how to record their depreciation.
In the following video, we will learn how to record the purchase of fixed assets and how to record their depreciation.
There are so many functions which you can perform by using general journal entries. For example you use journal entries for making adjustments, recording cash deposits into bank accounts, recording cash with drawls from bank account, recording inter bank transactions, making closing entries and so many other functions.
In the following video, we will learn how to record journal entries in peachtree accounting software.
