set up of a new company

Ayesha waheed

L3f09 bcom2512

Set up of a company

1)      To set up a new company in Peachtree we open the software and the following screen will appear.

From this screen click on “set up a new company ” . A wizard will start from this introductory window.

2)      In the above introductory window the software will ask about the company’s name, address, chart of accounts, the accounting method, the posting method and its accounting periods. To continue we have to click the button “next”.

3)      In the above window we press the button “ next “ for the company’s information relating to its name, location, contact number (Email, Fax, Telephone, Website) and  the type of business whether it is a sole, partnership or public limited liability company etc.

4)      In the above window titled “company information” the required information is filled up. And we press the button “next” and entered the following window captioned “Chart of Accounts”.

5)      In the above window we find several methods for setting up our new company of which we have to select anyone of them. The chart of accounts are already given in this software wherein the first option is about the start of a new company that might be retail, manufacturing and other types; given in the 1^st link of the aforesaid window. The chart of accounts of these types of companies is already given in it. After selecting the 1^st option we press the button “next” .

6)      We find available chart of accounts of the types of the companies namely Retail, Service, Construction, Manufacturing and Distribution. Selecting the required company we click on its “view chart of accounts”.

7)      In this case we select the retail company and get the above chart of accounts. Similarly we will follow the same process for service, construction, manufacturing and Distribution Company, if selected.  After closing the relevant chart of accounts we press the button “back” and select the 2^nd option.

8)      We revert to window “Chart of Accounts” again after pressing the button “back”. Now we go for the 2^nd option i.e. “Set up a new company using extensive chart of accounts from one of many sample companies” in this chart of accounts of different companies can be consulted and used as per requirement. Now press the button “next”.

9)      Here we get a list of different companies to be consulted and after selecting one of them we press the button “view Chart of Accounts” of the relevant company. Similarly we will follow the same process for other companies in which we are interested for consultation.

10)  We press the button “view chart of accounts” and get the chart of accounts of the selected company as shown above. We will follow the same process for getting the chart of accounts of different companies, if needed. Thereafter we close this window and press the button “Back” and visit the following window.

11)  In the above window we go for the 3^rd option. Here we find the companies already made in the Peachtree software. We copy the settings from an existing Peachtree Accounting Company. Now press the button “Next”

12)  In this window we find the chart of accounts and out of the available companies we select the desired Peachtree Accounting Company.

13) When we click the selected company we get its chart of accounts and after selecting one of them we press the button “view chart of accounts” to use it. Thereafter we again “revert” to the window namely the “Chart of Accounts “to select the 4^th option.

14)  Now we select the 4^th option wherein we are required to convert a company from another accounting program to Peachtree Accounting program. Then we press the button “Next”

15)  Now the “Accounting Method” window is displayed wherein Peachtree software provides the two accounting methods namely Accrual or Cash Basis to run the business. Methods once selected shall have to be continued and could not be changed. In this case we select the Accrual Basis accounting method and press the button “Next”.

16)  After pressing the button “next” the software displays the “Posting Method” window which consist of two methods namely Real Time or Batch, which are defined as under, to process transactions.

                                                           i.          Real Time means at that time when you post your entries into ledger accounts most companies use this system.

                                                         ii.           Batch means that transaction are saved by the program and then posted in a group. This method allows you to registers and analyzes a group of transactions before posting the journal.
                                 These posting methods can be change at any time. Here the real time posting method is selected. Now press the button “Next”.

17)   In the above window the “Accounting Periods” to be followed are given. These are 12 monthly accounting periods and Accounting periods that do not match the calendar months.  These periods are units of time that divide your fiscal year for reporting purposes. Now we select the 1^st option to process the accounts. Now press the button “Next”.

18)  In this window the software provides information about the “Monthly Accounting Periods”. Usually, a company fiscal year begins in January and ends in December but it can be changed to any other period.

Example A company’s fiscal year may begins in July and end in June next year.

In option 1 the fiscal year will start from January 01, 2012 to December 31, 2012 and the first month of data entering is February 2012. Now press the button “Next”.

19)  Now we press the button “Finish” to complete the process. And if we want to go for 5^th and the last option we press the button “Back”.

20)  The software again displays the window relating to the “Chart of Accounts”. Now we consider the 5^th option namely “Build Your Own Company”.

Peachtree provides several methods for setting up new companies. To move forward we press the button “Next”.

21)  Now the “Accounting Method” window is displayed wherein Peachtree software provides the two accounting methods namely Accrual or Cash Basis to run the business. Methods once selected shall have to be continued and could not be changed. In this case we select the Cash Basis accounting method and press the button “Next”.

22)  After pressing the button “next” the software displays the “Posting Method” window which consist of two methods namely Real Time or Batch, which are defined as under, to process transactions.

                                                       iii.            Real Time means at that time when you post your entries into ledger accounts most companies use this system.

                                                       iv.            Batch means that transaction are saved by the program and then posted in a group. This method allows you to registers and analyzes a group of transactions before posting the journal.

These posting methods can be change at any time. Here the Real Time posting method is selected. Now press the button “Next”.

23)   In the above window the “Accounting Periods” to be followed are given. These are 12 monthly accounting periods and Accounting periods that do not match the calendar months.  These periods are units of time that divide your fiscal year for reporting purposes. Now we select the 2^nd option to process the accounts. Now press the button “Next”.

24)  In the “Custom Accounting” window we are required to provide information about accounting period, fiscal year, payroll etc. we have to fill up all the aforesaid information. Then press the button “Next”.

26)  By pressing “next” we get this window of congratulations because we completed the required  information for setting up a Peachtree Accounting company. To finish the wizard press the button “Finish”.   The following window will now appear.

                               

                              As we successfully created our company. Now close the above window.