NEW darwin.Cloud feature: Link suppliers to Journal entries for credit card

When an accountant is entering credit card charges, they usually enter them as Journal entries.  This makes the most sense, because credit card charges need to be "on the books" - but the expenses are not paid yet.  By using the journal entry screen, we get the credit card expenses on the Profit and Loss reports and we get the credit card debt on our Balance sheet.

When it comes to journal entries, almost all accounting systems work the same way. All the user enters is the account number, some description, and then the debit or credit amount.  Typically, there is no link between a journal entry and a supplier.  This means that when we pay a supplier by credit card, it's hard to get a total of how much we are spending with them.  For reporting (and 1099 calculations), Accounting systems generally only track expenses to a supplier if they were paid by check.  When they are paid by credit card - and recorded by journal entry - it becomes hard to get total spend by supplier.

In the new, browser-based, darwin.Cloud, we have added functionality to solve this problem.

Now, whenever you are adding a Journal entry.  You can also select the supplier associated with each line item on the entry.  Every line item in your journal entry can link to a different supplier.  This means that the general journal entry of your credit card bill is now available to show on reports, and on 1099 calculations.

This new ability to attach suppliers to journal entries has another powerful application in darwin.Cloud - and that's the credit card expense automation tools in darwin.Cloud.  darwin includes connectivity to all your credit cards and all your bank accounts.  So, when the credit card charges arrive in darwin.Cloud each day, the credit card charges are evaluated by the rules that you've created.  Then, they are automatically classified according to the rules you set up for that supplier.

This automatic expensing of credit card charges is something that we, at AccountTECH,  have been using for years and could not live without. Now, it's available to everyone in darwin.Cloud.  Obviously, it takes a few billing cycles to setup all the rules, for all your suppliers.  But in the end, the countless hours you save by not having to break down credit card bills ... is priceless.

Watch this short video to learn more.