Accounting & Bookkeeping & Small Business Forum

[Guest]

Please give info on ATX Software.

[Guest]

It depends on the size of the business and the financial statements you intend to develop. If you intend to provide financials on an annual basis. I would record all purchased goods as Flowers purchased for resale, for example, and include this as a Cost of Goods Sold Item. At the end of the year, or reporting period, take a physical inventory based on the most recent costs of the flowers just purchased. Record this final inventory on financial statements. You'll need to be mindful of materiality. I'd suggest materiality to be 3% of total assets. If the total assets of the business are 100,000, you'd determine that any error in assets of over 3,000 is a material error. Frankly, though, as far as I'm concerned, the pervasive constraint kicks in heavily on this, and your recording of inventory and time spent on it should be kept at a minimum amount, unless there is a clear benefit to the client for management of vendors or determination of unit profitability (balloons vs. flowers), or in order to meet a materiality standard, or a compliance (tax) standard. You can't afford to bill a client with say 200k in annual revenues for 2500 bucks for the inventory recording, it just won't fly with the client, and it doesn't meet the pervasive constaint [in this case based on my assumptions].

[Guest]

If you have any questions about the software you can download it from ATX website. They also have their own bulletin board of users that you can access for free. I was using Drake for 9 yrs ans switched to ATX