First Choice Final Accounts home page

User guide

Overview                                                  
What you need to know
System requirements 
Upgrades
Version history

Getting started
Introduction
Setting up a new client
 Creating your first accounts - step by step        
Final accounts production checklist
Console toolbar

Using First Choice Final Accounts    
Chart of accounts
Accounts description file
Special account codes
Posting file data entry
Transferring opening balances
Importing trial balances
Using the client data screens
Printing the final accounts
Using Quick View/print
Dealing with fixed assets
Creating/filing accounts for Companies House

Other Topics
Periods of accounts and comparatives
Final accounts creation options
Cashflow statements for limited companies
Final accounts validation
HMRC Live validation
The trial balance import wizard
How the software handles iXBRL
The iXBRL viewer
Submitting accounts to HMRC and Companies House
Exporting self assessment data to tax packages
The Clients directory screen
 Installing import conversion files
Final accounts formatting options               
Limited Company abbreviated accounts                                                                     
                                                                         

 

 

 

                        

Creating your first set of accounts - step by step

This topic demonstrates how to create the final accounts for a small limited company. The basic principles are the same for all client types except that  'Notes to the Accounts' only apply to Limited companies. The demonstration uses live accounts data installed by First Choice Final Accounts during installation.

  • Add a new client to the database
    Open the Clients Directory, click the Add button, select Limited Company. Enter a company name of your choice.  In the template box, select Small Company Demo Limited and Save.
     
  • Add posting file #1
    Open the Accounts Production Console screen and click the Add new posting file command button on the toolbar. Enter suitable dates of your choice for Period Start and Period End, but ensuring the year in Period End is 2010. Leave Company size as Small and the Display Units as �.  Click Save and an empty posting file will be created.

  • Add posting file data
    There are two methods to add transactional posting file data - direct entry in the data boxes at the bottom of the posting file  (see Posting file data entry) or importing from an external csv file. In this demo we will use the second method and import a trial balance. Click the Trial balance import wizard button on the toolbar. The Select import conversion file dialog box will appear. Select Default1Numeric34 and click OK. The Open dialog will then appear. Navigate to the HMSoft/First Choice Final Accounts folder. Two csv trial balance  files are installed. Double click the file named LtdCoCSV2010.csv. The trial balance and the conversion file will load into the Import wizard. You can see that this trial balance has five columns. Column 5 is superfluous (for import purposes) so hide it. The selected conversion file - Default1Numeric34 - has already been created for the column/field settings in the trial balance file. Click the Lock File button and the wizard will  map each of the trial balance entries to the Account code stored in the conversion file. The wizard informs you that all the records have been mapped, so click the Insert Data button. 

    So, you have now produced a posting file for the period ended **/**/2010 and the active Trial balance above has been updated. Click the Trial balance button on the toolbar to print the trial balance. The next step is to add Client data, but before you do this let's create the final accounts file with the monetary data and test validation. Click the Create accounts button on the toolbar. Select the Generic report option and click the Create button. On completion, First Choice Final Accounts will produce a validation report displaying errors - Registered number, Share Capital and various data items 'NOT ENTERED'  If you click the Display accounts button to view the final accounts you will see the various reported errors The errors were produced because the program expected data to be entered. We will correct these errors in the next section.. (see Final Accounts validation). Close the browser and the validation report. 

  • Adding Client data  
    (see Using the client data screens)
    Click the Client data pages (1) button and then the Company Info tab. Enter a registered number and principal activity. Click the Directors tab and the names of one or more directors.
    Click the Agents/Related Parties tab and enter the Auditor/Accountant and Type of  firm data (or click the Copy button). Also enter the registered office data.

    Click the Client data pages (2) button and on the Share Capital tab enter Ordinary Shares, Ordinary, �1.00, 2 respectively on the class 1 line. (If you check the trial balance you will see that the Share Capital 1 value is �2.) Click the Depreciation Rates tab and enter an appropriate note for the rate of depreciation for Computer Equipment and Other Fixed Assets. (if you check the trial balance you will see depreciation charges for these two classes of asset).

  • Creating the final accounts
    When you have entered all the client data, you can create the final accounts again, but this time there should not be any validation errors. You may print the accounts from the browser (see Printing the final accounts). The file will be saved after you close  the browser and validation report. (Accounts are only saved when there are no validation errors). See HMRC live validation to learn why this option is not enabled.

    Note    : If you would like to produce a Cashflow Statement in the 2010 accounts, please read the Cashflow statement topic first.. The Closing balances from the 2009 accounts to enter in the Cashflow adjustments column are:
    Taxation             (721)
    Debtors           5,243
    Creditors        (7,856)
    Share Capital        (2)
    Bank Balance  7,890

    Note: In a live scenario,  after finalising the Limited company accounts, the accounts for Companies House would be created and filed (electronically or or paper)
  • Creating the 2011 accounts
    If you wish to create the next period's accounts (**/**/2011) add a new posting file. (Don't forget to deselect the Transfer balances option. This is necessary because the 2011 trial balance you will import, already incorporates the opening balances).

    You can then import the 2011 trial balance LtdCoCSV2011.csv as you did for 2010. (You will get a �1 rounding error after you import and this should be written off  by posting it to a miscellaneous/sundry revenue account ). The client's standing data you entered above will be automatically brought forward to the new period. Click the Create button. The 2011 final accounts will be produced without error and show the 2010 figures as comparatives.

  • Creating the 2012 accounts
    Add a new posting file for 2012 but this time let First Choice Final Accounts transfer the balances from 2011. Then enter some posting file data using the direct data entry posting method - select your own account codes and values and see what the accounts look like. Experiment with some of the other options and features on the Console screen or toolbar to see how First Choice Final Accounts handles the data - for example:     
    Use some of the special account codes and check out the results
    Select one or more pages/notes in QuickView and create them.
    Change Client Data values or add new notes to see the affect on the accounts
    Change account descriptions and/or tags and create a new tagview file and view it.
    Add a new Fixed Asset category and post some data to it and see the results.
    Change some of the final accounts options such as report type , cash flow statement etc.
    Change some of the formatting options such as heading colour or logo and check the output in your web browser or on the printed pages..