Main concepts of Accounting and Invoicing in Viindoo¶

Requirements

This tutorial requires the installation of the following applications/modules:

Accounting & Finance

Double-entry bookkeeping¶

The Viindoo Accounting & Finance Management app was built based on the rules of double-entry bookkeeping, also known as double-entry accounting. With this method, every single transaction must be recorded in at least 02 accounts with a reciprocal relationship, resulting in 01 debit account, and 01 credit account at the minimum, and all accounts must be balanced.

With appropriate account settings on the Viindoo system, each economic transaction incurred such as sales to customers, purchase from a supplier, employee advance, advance refund, etc. creates respective journal entries that ensure the principle: Sum of Debits = Sum of Credits.

Accrual Accounting and Cash Basis Accounting¶

Viindoo Accounting app supports both accrual and cash basis reporting methods.

Accrual and cash basis accounting are methods to record assets, liabilities, equity, revenues, and costs in accounting. The accrual accounting method records revenues and costs based on the principle of expected revenue - expected costs; while cash basis accounting records revenue and costs based on the real-time revenue - real-time costs principle.

Definition of Accrual Accounting method according to Vietnamese Accounting Standards (VAS 01): “All economic and financial operations of enterprises, which are related to assets, liabilities, owners’ equity, revenues, and costs must be recorded in accounting books at the time they arise, not at the time of the actual receipt or payment of cash or cash equivalents.”

Cash Basis Accounting: Revenue and costs are recorded when cash is received or paid, regardless of the moment the revenue or costs are incurred. In other words, revenue and costs are recorded based on the principle of real-time revenue - real-time costs.

Multi-companies¶

Viindoo allows managing multiple companies within the same database. Each company can have its chart of accounts and set of rules. You can see consolidated reports based on your pre-defined rules.

Apart from accessing and processing tasks in one company, you can access the database of several companies at the same time.

Multi-currencies¶

Viindoo enables the procedure and converts the company’s default currency to other foreign currencies. With the multi-currencies feature, Viindoo can:

Records the value of a transaction in both foreign and default currency of the company.
Facilitates the conversion and reconciles to auto-generate journal entries for currencies gains/losses.

Currency rates are systematically updated every day based on the exchange rate published on the website of Asia Commercial Bank (ACB) or Vietcombank (VCB) or could be manually configured.

International Accounting Standards¶

Viindoo Accounting develops localization modules to support the accounting system of more than 50 countries, those that have their own particular module cluster such as chart of accounts, taxes or banking systems, etc.

Notably, the Viindoo Accounting app also supports:

Anglo-Saxon Accounting (U.K, U.S, or other English-speaking countries such as Ireland, Canada, Australia, and New Zealand): This approach records cost of goods sold immediately when the sales invoice is confirmed. It means that with Anglo-Saxon mode, the value of goods on delivery is recorded to an intermediary account which will be reconciled as soon as the invoice is confirmed. In addition, if there is a difference between the actual purchase price (the price on the invoice) and the purchase price on the purchase order, this difference will be recorded in a separate account and displayed on the Balance Sheet.
Features and reporting tools following the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

Account Receivables and Payables¶

With Viindoo, an account is used to keep track of receivables (e.g., 131 - Receivables from customers; 138 - Other receivables; etc.) or payables (e.g., 331 - Trade payables; etc.) by default. Each receivable and payable transaction will be attached to a specific customer or vendor. Therefore, there’s no need to create an account for each of your customers or vendors and still have a useful tool to consolidate and analyze financial reports instantly, effectively, and accurately.

Broad-range of financial reports¶

In Viindoo, you can see financial reports instantly. Basic and advanced financial reports available in Viindoo are:

Performance reports (e.g., Profit and Loss , Budget Variance, etc.).
Position reports (e.g., Balance Sheet , Aged Payables/Receivables, Cashflow Statement , etc.).
Detail reports (e.g., Trial Balance, General Ledger, etc.).
Management reports (e.g., Budget, Executive Summary, etc.).

The reporting tools in Viindoo allow you to modify and customize reports based on your own formulas.

Automated bank reconciliation¶

Bank reconciliation is a process of matching bank statements with accounting transactions registered in the system. You can import bank statements with files in CSV, RJE, or Excel format periodically.

Viindoo accelerates the reconciliation process by matching your imported bank statement lines with accounting transactions already in the system. Viindoo also considers the way you processed other bank statements and suggests the most frequently used journal entries.

On the other hand, the Viindoo Accounting app also supports reconciliation for receivable accounts such as 131, 331, etc. These processes happen when you reconcile a customer’s invoice or vendor bill with payments received or paid for that invoice/bill.

Inventory Valuation methods¶

Viindoo supports both manual and automatic inventory valuation. The available methods are:

Standard price;
Average price;
Specific Identification;
First In First Out - FIFO.

Retained earnings¶

Retained earnings are the portion of income retained by your business after fulfilling tax obligations and dividends paid to its shareholders. Viindoo automatically calculates the current year retained earnings of your company in real-time with no required year-end journal or rollover, and this information is spontaneously calculated and reflected on the Profit and Loss report.