Accounting Configuration

Accounting Configuration

Configuration Settings


It is a good idea to setup your Accounting Configuration prior to running online sales. 


Step 1 - Go to Accounting / Configuration / Basic Configuration

Current Fiscal Year Dates
Set your fiscal year dates. These are the dates for your financial year. If you are not sure what these dates are, check your bylaws.

NOTE:  There is also a setting for “Current Year” Dates. This is located under Account Settings on the Admin Menu and is different than the Financial Year Dates. The current year dates set for the organization serves as the default for the information that is presented on the dashboard and for the reports in the system. The two are not related.

Sales Tax Rate
The system will automatically add sales tax to any items that are marked as being taxable.

**If your sales tax is 8.25% then you will enter it as 8.25

Step 2 - Go to Accounting / Configuration / Accounts

*If you are not using one of the types of accounts, you can set the configuration to “Uncategorized.”


Sales Tax Liability Account
Select the liability account that you plan to use to record sales tax when it is collected.

Processing Fee Income Account
If you collect fees for processing or shipping then you will need to identify an income account to record these fees.

*To set up a processing fee go to Store & Forms / Configuration / Processing/Handling Fee. (Note: The fee will be applied to every order regardless of payment method.)

Member Credit Liability Account
If you issue a refund, you have the option of giving the user an account credit that they can use on a future purchase. You can set up a liability account for Account Credits or you can choose to have these go to uncategorized liabilities.

Expense Account for Writing Off Bad Debt
If you have an order that has not been paid, you can choose to write off the balance due. If you do this, you need to identify which expense account to record the transaction to.




Using Payment Processors with the Accounting Tools


Using PayPal Asset with the Accounting Tool


You will need to create an asset account for PayPal if you are using PayPal as one of your financial processors. When a payment is received using your PayPal account, the monies will be held by PayPal until you transfer the money into your checking account.
 Example of the process for online PayPal transactions:
Amy purchases $25 of spirit wear and makes a payment online using PayPal. This incurs an expense of $0.85 for transaction fees. (2.20% + $0.30)
  1. Spirit wear income budget line item is increased $25
  2. PayPal asset account will be increased $25 - $0.85 = $24.15
  3. Credit Card Transaction Fees (expense line item) will be increased $0.85

PayPal Accounting Set-Up
In addition to creating the PayPal account in your chart of accounts, you will need to set the Accounting Configuration for the online payments.

Configuration for PayPal Account
Go to Accounting / Configuration and identify which asset and expense accounts will be used for your PayPal transactions.

PayPal Income
Select an asset account for PayPal deposits.

PayPal Fees
Select an expense account where your fees associated with PayPal transactions will be accumulated.


Using TransFirst with the Accounting Tools


If you are using TransFirst for online purchases, you can choose to either an Asset Account for TransFirst or not. TransFirst will deposit money directly into your checking or savings account. This is controlled in the Accounting Configuration.

TransFirst Accounting Set-Up
TransFirst sweeps all funds into your designated account daily. Once a month they withdrawal the transaction fees associated with the orders from the previous month.
Example of the process for online TransFirst transactions:
Amy purchases $25 of spirit wear and makes a payment online using TransFirst. This incurs an expense of $0.51 for transaction fees. (1.85% + $0.05)
  1. Spirit wear income budget line item is increased $25
  2. The savings account (which has been identified as the account where TransFirst deposits funds) will be increased by $25.
  3. TransFirst Liability account is increased $0.51.
  4. The expense account for TransFirst expenses will be increased $0.51.

Configuration for TransFirst Account
Go to Accounting / Configuration and identify which asset and expense accounts will be used for your TransFirst transactions.

TransFirst Deposit Asset Account.
Select an asset account for the TransFirst deposits. (Usually this will be your Main Checking Account) 

If you do not want each of the individual orders hitting your checking account ledger, then you should create a separate asset account for TF orders. You will need to manually enter journal transactions to move the funds from your TF asset account to your checking account. Some Treasurers find this setup easier because it makes the checking account reconciliation much easier.

TransFirst Liability Account
Select a liability account for the TransFirst transaction fees due. The default for this is #2910.

**This is optional. If you do not want the system estimating the transaction fees, you can turn off that option under Admin / payment configuration/ TransFirst.

TransFirst Expense Account
Select an expense account where your fees associated with TransFirst transactions will be accumulated.

*For more information on how to record your TransFirst expenses, see our article on Recording TransFirst Transaction Fees.


Using PaySimple with the Accounting Tools


PaySimple Asset Account
If you are using PaySimple for online purchases, here is our recommendation on to set up your accounting tools. Create an Asset Account for PaySimple. This is controlled in Accounting / Configuration /Accounts.

PaySimple will deposit money directly into your checking or savings account approximately 2 business days after the credit card transaction.  You will need to create a journal entry to record each deposit transfer by increasing the checking or savings account and decreasing the PaySimple Asset account.

PaySimple Accounting Set-Up
PaySimple sweeps all funds into your designated account daily. Once a month PaySimple will withdraw, directly from your designated bank account the following monthly charges:
  1. Monthly software fees (Billed around the 1st of the month)
  2. Transaction fees associated with the orders from the previous month (Billed around the 7th of the month)
  3. Any ACH Transaction fees (Billed around the 10th of the month)
Example of the process for online PaySimple transactions:
Amy purchases $25 of spirit wear and makes a payment online using PaySimple. This incurs an expense of $0.61 for transaction fees. (1.85% + $0.15)
  1. Spirit wear income budget line item is increased $25.00
  2. The PaySimple asset account will be increased by $25.00
  3. PaySimple transaction fees due Liability account is increased by $0.61
  4. The expense account for PaySimple transaction fee expenses will be increased by $0.61


PaySimple Accounting Set-Up

In addition to creating the PaySimple asset & liability account in your chart of accounts, you will need to set the Payment Configuration for the online payments.

Configuration for PaySimple Account
Go to Accounting / Configuration / Accounts and identify which Asset, Liability and Expense Account will be used for your PaySimple transactions.

PaySimple Income
Select an Asset Account for PaySimple deposits.

PaySimple Liability
Select a Liability Account for PaySimple accumulation of transaction fees due to PaySimple.

PaySimple Fees
Select an Expense Account to post your transaction fee expenses associated with PaySimple transactions.


Using Stripe with the Accounting Tools


Stripe Asset Account
You will need to create an asset account for Stripe if you are using Stripe as one of your financial processors. When a payment is received using your Stripe account, the monies will be held by Stripe until transferred into your checking account based on the payout schedule you have chosen.
Example of the process for online Stripe transactions:
Amy purchases $25 of spirit wear and makes a payment online using Stripe. This incurs an expense of $0.85 for transaction fees. (2.20% + $0.30)
  1. Spirit wear income budget line item is increased $25
  2. Stripe asset account will be increased $25 - $0.85 = $24.15
  3. Credit Card Transaction Fees (expense line item) will be increased $0.85

Stripe Accounting Set-Up

In addition to creating the Stripe account in your chart of accounts, you will need to set the Accounting Configuration for the online payments.

Configuration for Stripe Account
Go to Accounting / Configuration and identify which Asset and Expense Accounts will be used for your Stripe transactions.

Stripe Income
Select an Asset Account for Stripe deposits.

Stripe Fees
Select an Expense Account where your fees associated with Stripe transactions will be accumulated.











Accounting Webinar


One of the best (or most powerful) features in Membership Toolkit is that your online sales are integrated with your accounting tools!  Learn the basics on how our accounting tools work. This is a great workshop for incoming treasurers or any admins that want to learn more about the accounting tools available to you. Topics include:
  1. Chart of Accounts
  2. Budget
  3. Recording a Deposit
  4. How Membership Toolkit orders with your accounting tools

INTRODUCTION TO ACCOUNTING (Scroll to and expand the Accounting section)

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