1. Creating company bank accounts
In the previous step, you issued invoices to clients. As payments for these invoices are received, the system will automatically update the invoice status to “Paid.” To enable this, you need to:
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Add your company’s bank account information to the system (navigate to Company > Settings > Bank/Cash Accounts).
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In the Company > Accounts Dashboard section, upload the bank statement or manually enter transaction details.
2. Setting up the chart of accounts
For accurate financial accounting, you need to add a chart of accounts to the system. We offer a standard chart of accounts based on IFRS, which will be included by default when you start using the system. However, you can make necessary adjustments as needed:
• Add new accounts or remove unnecessary ones according to your preferences. The chart of accounts can be found in Company > Settings > Bank/Cash Accounts.
• If you choose to use your own chart of accounts, please contact your integrator for assistance with the import process.
After uploading the chart of accounts, the next step is to enter the account balances as of the starting balance date.
3. Setting up the cash flow lines
In the Company > Settings > Cashflow Lines section, configure the structure of the cash flow report and define the levels of hierarchy. Lines can be easily rearranged by dragging them with the cursor.
This setup is linked to the next step, which involves configuring the company’s income and expense categories.
4. Income and expense categories
Next, in the Settings > Income Categories and Expense Categories sections, configure the income and expense categories for your company. For each category, specify how it relates to the chart of accounts and which cash flow line it corresponds to.
The level of detail for the categories depends on how detailed you want your company’s reporting to be. However, keep in mind that numerous categories can complicate the transaction reconciliation process and increase the risk of human error during reconciliation.
5. Configure document types
All new transactions (whether imported or entered manually) must go through a reconciliation process. To streamline transaction reconciliation, configure document types so you don’t have to remember which transactions generate which entries in the system.
6. Transaction Reconciliation
For an invoice to automatically change its status to “Paid,” the payment for the invoice must be reconciled. The accountant needs to review each transaction and decide whether to reconcile it. During the reconciliation process, the transaction is categorized according to expense/income category, client, project, invoice(s), and exchange rate, if the transaction is in a currency different from the company’s primary currency.
This functionality can be found in the Company > Reconciliation section.
All recorded transactions can be viewed in the Transactions section of the system. There, you can also display fund transfers between your accounts.
7. Configure the P&L report structure
A standard profit and loss (P&L) report structure has been added to the system by default. However, we suggest reviewing the predefined rules for each line item in the report and making adjustments if they differ from your usual practices. Alternatively, you can create your report structure in the system. The report can be found in Company > Settings > P&L. You can review the setup guidelines here.
8. Automatic entry generation
To enable automatic entry generation, first, you need to define the formation rules. The system comes with default entries for key events, such as creating client invoices or processing employee payroll. However, you should review these entries and set up the ones that align with your accounting rules. We provide the system as a tool, but the decision on which entries to use in your accounting is entirely up to you.
To configure the entries, go to the P&L Policy section.
Analyzing key financial indicators
In ITFin, you can monitor your company’s performance using key financial reports:
• Cashflow
• P&L
• Trial Balance
Once the P&L report is generated, you will also be able to perform budget planning for your company in the Company > Budgeting section.
Well, now you can make full use of ITFin!