1-39 Application Service Providers for Accounting The What, Why, and How of Internet Accounting Carol Yacht & Susan V. Crosson

2-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 What are Application Service Providers? Internet-delivered software: QuickBooks Online Edition (formerly called QuickBooks for the Web); ePeachtree; NetLedger Accessible anytime, anywhere by authorized users Always current Users rent software on a monthly basis instead of buying and installing software on their hard drive

3-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 CD-installed software – lab network or hard drive Application Service Providers – company’s Web server  Instead of storing the application and data on a computer that resides in the classroom or on students’ computers, Application Service Providers (ASPs) reside on distant Web servers.  When using Application Service Providers users can work through any Internet connection. This new way to perform accounting tasks has advantages and disadvantages.

4-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Why use Application Service Providers? Accessible from any Internet connected computer Technology support always available Software affordable  free trial! Installation easy  just sign up with your address and password - no computer lab involvement Exposes students to integrated accounting systems that are ready for e-commerce and B2B.

5-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Drawbacks to Application Service Providers High speed connection preferred  all processing done on the Internet User becomes vulnerable to integrity of Web server  power outages, system crashes, financial health, data security. Once adopted, expensive to change to comparable computer-based software

6-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ASP Features Feature ListQB Online EditionePeachtreeNetLedger Checking account and credit card tracking XXX Bank reconciliationXX Accounts receivableXXX Accounts payableXXX and fax invoicesXX Number of business reports and graphs Anywhere/anytime accessXXX Automates recurring billsX Multi-user readyXXX Technical supportXXX Free trial version30 days 14 days Cost per month per user$14.95 $100

7-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Course Possibilities using Internet-delivered Software  Financial, Principles, or AIS course  Free trial period  30 days, ePeachtree & QuickBooks Online Edition; 14 days NetLedger  Computer Accounting course  QuickBooks or Peachtree CD software and one of the ASPs (QB Online Edition; ePeachtree; or NetLedger).  Computer Accounting course  three ASPs (QB Online Edition, ePeachtree, and NetLedger)

8-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Application Service Provider Specifics Content QuickBooks Online Edition ePeachtreeNetLedger Type of businessServiceRetail Form of businessSole Proprietor Accrual or cashAccrual Chart of Accts.XXX Account nos.XX Transaction detailXXX Trial balanceXXX Adjusted trial bal.XXX Post-closing trial bal.XXX Income StatementXXX Balance SheetXXX

9-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Application Service Provider Specifics (continued) Content QuickBooks Online Edition ePeachtreeNetLedger Cash flow statementXX Bank reconciliationXX VendorsXXX CustomersXXX Items of serviceX InventoryXX Sales taxXX Credit termsXX Returns & allowancesXXX Cash transactionsXXX Credit transactionsXXX

10-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Application Service Provider Specifics (concluded) Content QuickBooks Online Edition ePeachtreeNetLedger Adjusting entriesXXX Closing entriesXXX Beginning-of-year TransactionsXXX Customizing reportsXXX Customizing graphsXX Memorizing reportsX Activity logX Copying/Exporting to Word & Excel XXX Context-sensitive Help screens XXX

11-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 QB Online Edition: Vendor Overview On the QB Online Edition menu bar, select “Vendors.” From the drop-down list, select Vendor Overview.

12-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 QB Online Edition: Vendor Transactions for a Service Business  Purchase of Supplies: Enter Bills  Vendor Payments: Pay Bills

13-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 QB Online Edition: Enter Bills You use the “Enter Bills” screen to record purchases from vendors.

14-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 QB Online Edition: Purchase of Supplies from a Vendor On 10/02/01, received Invoice 66JE and shipment from Gator Chemicals for the purchase of dry cleaning supplies that included the purchase of dry cleaning fluid on credit, Net 30, $300.

15-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 QB Online Edition: Pay Bills On 10/06/01, paid two vendor invoices: Gator Chemicals, Invoice No. 66JE, $300; and Sales Products Supply, Invoice EX32, $245; for a total of $545.

16-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 QB Online Edition: Transaction List by Vendor To check that vendor payments were made, you can display or print the Transaction List by Vendor report.

17-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Example of “Help” screen Help screens explain the details of creating a new transaction.

18-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Vendor Transactions for a Jewelry Store (merchandising business)  Purchase Register is also the purchase journal.  Vendor payments and returns are reported on the Payment Register.

19-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Vendor Transactions You use ePeachtree’s Purchase Register to record credit purchases from vendors. ePeachtree’s Purchase Register is the Purchase Journal. Purchase Register transaction: On October 1, 2001, received Invoice 66JE and shipment from Jewelry by Jason for the purchase of 20 rings on credit at $50 each, terms 1%, 10 Net 30, $1,000.

20-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Purchase Register Here is how ePeachtree records the October 1, 2001 purchase of inventory from a vendor.

21-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Purchase Journal The Purchase Journal on the next slide shows four purchases made from vendors for a total of $3,350. This is the amount owed to vendors as of October 5, 2001.

22-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree’s Purchase Journal

23-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Purchase Register The Purchase Register shows a list of the jewelry store’s purchases, returns and total vendor transactions.

24-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Vendor Payment From ePeachtree’s navigation bar, select Vendors, then payments. Click on the “New” icon. On October 6, 2001, paid Jewelry by Jason for Invoice No. 66JE, less the $50 return, and the discount.

25-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ePeachtree – Payment Register ePeachtree’s Payment Register shows vendor payments and returns.

26-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger – Transactions screen

27-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger Help screen – How do I add transactions?

28-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger – Vendor Transactions for a merchandising business You use the Enter Bills link to record vendor purchases. Vendor transaction: On October 2, 2001, your jewelry store received Invoice 66JE and shipment from Jewelry by Justin for the purchase of six rings on credit at $50 each, terms 1% 10 Net 30, $300.

29-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger –October 2 transaction The “Bill” screen shows the purchase of six rings at $50 each.

30-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger: Accounts Payable Register The accounts payable register shows the four purchases and one return made by the jewelry store from October 1 through 5, 2001.

31-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger: Vendor Payments Transaction: On October 6, 2001, your jewelry store paid Jewelry by Justin, Invoice 66JE, for the October 2 purchase, less a discount and the return of October 4, $

32-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger: Bill Payments NetLedger’s “Bill Payments” screen shows the October 6 transaction for payment of Invoice 66JE, less return and discount.

33-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 NetLedger’s October 31, 2001 Trial Balance

34-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 ASPs Financial Statements QuickBooks Online Edition, ePeachtree, and NetLedger include the full range of financial statements.

35-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Review of Application Service Provider software “Web-based Accounting Vendors Struggle to Find Innovative Ways to Provide Solutions,” by Brent Dirks

36-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 URLs/Publishers for ASPs  QuickBooks Online Edition (Intuit)  ePeachtree (Peachtree Software)  NetLedger (Oracle Corp.)

37-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Comparison charts  Compare QuickBooks products  Compare Peachtree products

38-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 Additional ASP Resource Computer Accounting Essentials newsletter and more information: Syllabi for ASP course: (scroll down screen to “Syllabi Suggestions”)

39-39 McGraw-Hill/Irwin© The McGraw-Hill Companies, Inc., 2004 CD Software & ASP Costs CD Software or ASPCost QuickBooks educational site license 50 computers, $599.95; Peachtree educational site license Free – CD software packaged with textbooks QuickBooks Online EditionFree for 30 days; $14.95/mo. ePeachtreeFree for 30 days; $14.95/mo. NetLedgerFree for 14 days; $100/mo. for suite