Accounting & Bookkeeping & Small Business Forum

[bernie123]

Hi

We have a company that will act as a ‘Service Company’ for another company. By service company I mean that all its expenses (inc staff, stationary, travel, recruitment etc) will be billed to the other company with an additional fixed monthly fee for providing these services.

We are going to use Microsoft Office Accounting 2007, and as this is not a ‘normal’ setup we were thinking of how to set this up so that at the end of each month we can calculate our expenses easily for billing (and not provide duplicate bills!).

Our thoughts are to simplify the setup for the other company and interaction we are going to setup matching Nominal Accounts to the other company but have an additional nominal per ‘category’ that we use to Credit the accounts when billed returning them to zero. This means that if there is a balance we haven’t billed and if there is a negative we have over billed – hopefully returning each balance to zero every month and only income will be in credit, simplified e.g (Zzz marks the billed nominal):

Income
----Our Fixed Fees
----Bank Interest Received
Staff Costs
----Salaries
----NI
----Employers NI
----Staff Advertising
----Staff Training
----Etc
----Zzz BILLED STAFF COSTS
Admin Costs
----Advertising
----Stationary
----Etc
----Zzz BILLED ADMIN COSTS
And so on

Does this sound sensible, any feedback or other solutions would be much appreciated.

Thanks
B

[Richard Noot]

bernie123 wrote: Hi

We have a company that will act as a ‘Service Company’ for another company. By service company I mean that all its expenses (inc staff, stationary, travel, recruitment etc) will be billed to the other company with an additional fixed monthly fee for providing these services.

We are going to use Microsoft Office Accounting 2007, and as this is not a ‘normal’ setup we were thinking of how to set this up so that at the end of each month we can calculate our expenses easily for billing (and not provide duplicate bills!).

Our thoughts are to simplify the setup for the other company and interaction we are going to setup matching Nominal Accounts to the other company but have an additional nominal per ‘category’ that we use to Credit the accounts when billed returning them to zero. This means that if there is a balance we haven’t billed and if there is a negative we have over billed – hopefully returning each balance to zero every month and only income will be in credit, simplified e.g (Zzz marks the billed nominal):

Income
----Our Fixed Fees
----Bank Interest Received
Staff Costs
----Salaries
----NI
----Employers NI
----Staff Advertising
----Staff Training
----Etc
----Zzz BILLED STAFF COSTS
Admin Costs
----Advertising
----Stationary
----Etc
----Zzz BILLED ADMIN COSTS
And so on

Does this sound sensible, any feedback or other solutions would be much appreciated.

Thanks
B


If you have not purchased the microsft program yet you might want to hold off doing so. I would take a look at quickbooks Simple Start the Starter edition first. It is FREE. This might just suffice.

[bernie123]

Hi

Thanks for your post.

We have deliberated about the use of MS Office Accounting (MOA) against other applications, but we decided on this product because of the SQL Server platform, we can easily work with our service company for reporting as their system also has an SQL Server platform.

Luckily we were part of the Beta Testing group so we have (MOA) for free.

Thank you for your advice.

B