Overview:
In Orax SDI the word "ledgers" and "accounting" is used interchangeably. In the menu there is an option called "Ledgers", but it leads you to the "Accounting" features of the Orax SDI system. Accounting in Orax SDI has a simple goal: to help you manage the financials of your company in the most efficient and effective way possible and to remain tax compliant throughout the journey.
Understanding the importance of financial management:
Effectively managing the financials of your company is probably the most important aspect of having a sustainable business. All businesses, whether small or great require healthy financials to remain in business. The Orax SDI Ledgers and Accounting tools are able to help you make this challenge easier on a day-to-day basis. The following video explains the 6 layers of accounting as implemented in Orax SDI.
Understanding the 6 layers of accounting
Duration: 04:20 minutes Streaming size: 17.8MB
The 6 layers of accounting used in Orax SDI:
Documents
All source documents like Invoices, payslips or production orders are part of the first layer of accounting. These are the foundational transactions of your company.
Physical
Physical records relate to movement of stock and assets in your company. This is a critical element to manage in order to ensure efficiency and profitability.
Cash
Banking and management of cash is also a critical component of every company. Money is a sought after asset and should be carefully managed to ensure that the business remains viable and healthy.
Adjustments
All accounting systems need to be adjusted to reflect real world circumstances as well as plan for specific strategies. We use Journal Entries to achieve this.
Accounts
Ensuring that your debtor and creditor accounts are properly managed is of critical importance to a company. These are large asset and liability accounts that can make or break a business.
Financials
On the final layer of the Orax SDI accounting system we find the results of all the other layers - your financial statements. Keeping a close eye on the profitability and liquidity of your company is very important.
To setup you company in Orax SDI, use the following quick start video as a reference:
Company setup
Duration: 01:32 minutes Streaming size: 5.8MB
Here are the 6 layers of accounting as laid out by Orax SDI: