From the settings page, you can set the information about your company. As you want to operate a business using WP Ever Accounting, the company name will act as a legal entity to engage in your business account.
Company Settings Fields
From the Company Settings in General Settings, you can set the necessary information required for your company.
The information for a company in the setting holds the following things-
Field | Description |
---|---|
Company Name* | Name of your company. |
Email Address* | Company’s email address |
Phone Number | Phone number provided by the company |
VAT Number | VAT number of the Company |
City | Name of the city where the company exists |
Address | Local address of the company |
State | Name of the state |
Postcode | Postal code of the state |
Country | Name of the country |
Logo | Logo of the company |
General Settings
In the general settings setting, you will find an option to set the financial period count for your company to keep records of budgets, profits, and losses throughout a year. The financial year is a period of 12 months and you can activate the financial year at any given date of a calendar year.
For example, if the financial year count is set to 1 July, it will execute a report from 1 July to 30 June of the next year. To learn more about the financial year, click here.
When Tax is enabled, tax fields will be generated both in invoice and bills as well as in items. In general, tax can be set upon items only. When you are going to attach items to your invoice or bills, the tax field will be visible in both invoices and bills.
Default Settings
From the default settings in WP Ever Accounting, you can set the default account and default currency for your company. All of the incomes and expenses which are made from different accounts will be transferred into the default account. Similarly, all of the transactions which are made in different currencies will be converted into the default currency. Also, you can set the default payment method that your business will use most frequently.
Add Categories
Categories give you a way to break down income and expenses from each other. With the help of categories, you are able to distinguish and segmentize transactions by their types.
To add categories in WP ever Accounting, go to Settings and click on the Categories tab and simply click on ‘Add New’ which will take you to a page to add up a category.
Add categories by type
Categories are mainly separated by two types – Incomes and Expenses. Incomes from a certain account can be assigned to different income categories. Similarly, expenses can also be assigned to different expense categories. There is another category type – ‘other’ which holds all the data transferred from one account to another. This category does not affect the incomes or expenses. You can also create categories for items. All categories can be identified by their name and colors. The color set for a particular category will be visible on the pie chart in the Overview section as a numerical proportion.
Categories Listing – Fields
A list of all created categories with the types – income and expense will appear on the page. You will see several fields like – name, type, color, and dedicated enable/disable button. These predefined colors help you to identify categories on the pie chart to visualize categorical proportions for both income and expenses. The dedicated enable/disable button helps you to activate or deactivate categories individually. If you want to update an existing category, simply hover over the name of a category and an edit button will appear.
Add Currencies
Currency is used as a medium of exchange to buy or sell services or goods. In WP Ever Accounting, we give you the option to add multiple currencies and these currencies can be used in multiple accounts.
How to Add Currencies
To add currencies, go to settings and click on Add new from the Currencies tab. You will see the following fields –
Field | Description |
---|---|
Currency Code* | The three-letter alphabetic codes that represent the various currencies. |
Name* | Name of the currency. |
Currency Rate* | The rate of other currencies against the default currency. Default currency rate is 1 . |
Precision* | Number of digits in a number for refinement. |
Symbol* | A graphic symbol for a currency’s name. |
Symbol Position* | Declaration of the symbol position. |
Decimal Separator* | Symbol that is used to separate the integer part from the fractional part of a number written in decimal form. |
Thousands Separator* | A character that can be used as the thousands separator. |
To add currencies, choose a name, and select a currency code. When you set a currency code, the currency symbol for that currency will generate automatically. You can set the position of the currency symbol as well. There are also options to set precision, decimal separators, and thousand separators.
How to Set Currency Rate
To add default currency, you need to set the currency rate to 1. Mainly, the default currency acts as a standard for all other currencies. All currencies are converted in terms of default currency. If the currency is not a default currency, the currency rate will be compared to the rate of default currency.
In fact,to add currencies; the currency rate is the value of a currency in terms of another currency. Suppose, you have three accounts A, B, and C for your company, and each account has currencies USD, Euro, and CAD respectively. To add currencies, if you set USD as a default currency, the other two currencies should be converted in terms of USD.
For example, 1 USD equals 0.86 Euro & 1 USD equals 1.34 CAD. Now, if you set the USD currency rate to 1 as a default currency, Euro currency rate to 0.86, and CAD rate to 1.34 from the currency setting, the conversion will happen promptly.
Similarly, Changing the default currency from existing currencies means you need to set the new default currency rate to 1. According to the new currency rate of the default currency, the rest of the currencies will change accordingly.
For example, if the CADcurrency rate is set to 1, the other two currencies USD and Euro will change in terms of CAD currency rate. In that case, the USD rate will be 0.76 and the Euro rate will be 0.64
How to Calculate Currency Conversion to Add Currencies
Calculating currency conversion will be a piece of cake for you. Simply, go to Google. Search for ‘Currency Converter’. You can check all the live rates of the currencies and can compare currencies to one another.
For example, if CAD is your default currency, that means you have to set the currency rate to 1 for the conversion and therefore the currency rate of the USD will be calculated automatically 0.76. So whenever you need to add a currency you need to calculate it against your default currency.
Calculate Currency Conversion Precisely for larger Unit Conversion
Suppose you want to convert a particular amount from BDT (Bangladeshi Currency) to USD (US Currency). The precision for both currencies is set to 2. The amount you want to convert from BDT to USD is 123.65. The USD amount will be 1.4588845175418 US Dollars. Since the precision is set to 2, the USD amount will be rounded off to 1.46.
Now convert this 1.46 to BDT again. The amount you will see for BDT will be 123.74. This is happening due to the rounding off.
To avoid this unwanted error, you need to keep in mind that precise currency unit conversion entirely depends on precision.
To solve this issue, let’s set the precision to 4 for both currencies. Now converting BDT 123.6500 will give a US amount of 1.4589 or vice versa.
That means while converting to a larger scale currency unit from a smaller unit or vice versa, you must keep the precision for both currencies at least 4.
Currencies Listing
Currency is a medium of exchange used as a method of payment. In WP Ever Accounting plugin, Currencies page is located under Misc>Currencies page. You will see a list of currencies that you have added before to regulate your business affairs.
On currencies listing, several fields are displayed. You will see fields for the name of the currency, currency code, currency symbols, currency rates, a dedicated button for enabling currency separately, and an action field to edit or delete currencies.