Financial Operations Section

Important

This section should be worked on after completion of the Financial Setup.

Introduction

The Financial Operations Section describes useful functions that help run day-to-day activities in the business.

They can be worked on by staff:

• Involved in performing day-to-day accounting operations. or
• Involved in supervising the performance of day-to-day accounting operations.

Tip

Previous sections:

• HomeBuilder Install and Subscribe.
• Introduction to the Implementation Section.
• HomeBuilder Base Setup. Require a degree of IT experience or affinity, and can be completed by persons NOT involved in day-to-day accounting operations.
• Financial Setup is typically completed by a Controller or a person in similar position.

The overview of the articles in Financial Operations (this section):

• Bank Deposits for Lot Installments is about using the configured system. If you receive unexpected errors or results, ensure completeness of your setup in Setting up Bank Deposits for Lot Installments article
• Cash Receipt Journals is a functionality that is similar to Bank Deposits for Lot Installments. It requires less setup and might be simpler to use. However, for large numbers in your deposits, using Bank Deposits for Lot Installments will be more transparent.
• Consider using Electronic Funds Transfers EFT Implementation and Processing for your payments. In the long run, it provides:
  • Less admin time.
  • More control over the operations.
• If you are running on checks or have a hybrid with some vendors on checks and some using ETF, you might want to review options for Ordering Cheques to Print with HomeBuilder.
• Month- and Year-End HomeBuilder Processes can be performed only after the 2 points below are considered:
  • At the year-end the year consider your company's situation. Most companies do not use Non-Construction Inventory Items. If you do, start with the Use of Non-Construction Inventory Items
  • Next, every company using more than one currency e.g. USD and CAN, should follow Month End Currency Revaluation for Multicurrency Environments.
• Adding a Non-Contract Item with Setup to Stop Budget Overage Messages is a practical solution to recording unplanned work against the Lot or multiple Lots.
• 3 Journal Types article provides an overview of 3 journal types that you will be using with HomeBuilder software with a practical example.
• Some Builders use a WIP (Work In Process) subledger. Work In Process (WIP) in HomeBuilder describes the advantages and disadvantages to using WIP. It outlines the usage of the two WIP methods used by Builders:
  • WIP Percent of Completion Method calculates WIP as the contractual value (sales value) of actual usage cost value (job ledger entries), measured by the cost value of expected usage (your budget). Using this method means that the revenue and profit (or loss) of the job will be recognized as the job costs are incurred and recognized.
  • WIP Completed Contract Method does not recognize revenue and costs until the job is complete. This method is simpler to grasp and is preferred by many for that reason.