Source truth: - Vision and Product Principles - UX Principles - Accounts - Financial Periods - Source Documents - Posting and Reversal - Close - Protected Action Contract

Getting Organized

Before configuring BooksPlus, organize the real-world accounting work of the business.

This page is procedural before it is technical. It helps the business define who is responsible, what approvals are required, how source documents are handled, which policy defaults are adopted, and how the fiscal calendar will support posting, closing, and reporting.

Readiness gate

Do not move into deeper setup until the business has:

• assigned accounting responsibilities;
• defined basic approval and review routines;
• established source-document handling rules;
• adopted an accounting policy baseline;
• reviewed policy-based defaults;
• confirmed fiscal-period setup expectations;
• identified who needs training and who reviews monthly results.

Minimum onboarding packet

Use this as a practical go or no-go checklist.

Area	Key task	Status
Roles and responsibilities	Define who does what, who approves, and who reviews	[ ]
Internal controls	Define approval limits, review routines, and reconciliation cadence	[ ]
Document management	Define capture, storage, linking, retention, and backup approach	[ ]
Accounting policy	Approve a written policy baseline for the books	[ ]
Policy-based defaults	Review defaults and record any overrides	[ ]
Training and oversight	Identify training needs and monthly review ownership	[ ]

When these areas are complete, proceed to company setup, chart of accounts, opening balances, permissions, workflow setup, and reporting configuration.

Accounting pipeline

A repeatable accounting process should look like this:

1. A real-world transaction happens.
2. Supporting evidence is captured.
3. The transaction is recorded in BooksPlus.
4. The support is linked or referenced.
5. Controls and review make exceptions visible.
6. Period results are reviewed and closed with confidence.

Kickoff agenda

Start with a short kickoff meeting.

Cover:

• who participates in accounting work;
• what a successful first month looks like;
• weekly money review timing;
• monthly close timing;
• approval authority and dollar limits;
• document capture channels;
• policy defaults and exceptions;
• training needs.

Roles and responsibilities

Clear responsibility reduces omissions, duplicated effort, and informal approvals.

Typical roles:

Role	Key responsibilities
Management / Owner	Approves policy, approves higher-risk or higher-value transactions, reviews results, resolves exceptions
Accounting Manager	Oversees period setup, close execution, review routines, and accounting staff work
Bookkeeper / Accounting Staff	Records transactions, maintains ledgers, reconciles accounts, prepares close work
Payments role	Releases payments according to approval rules and keeps payment evidence
Sales / Receipts role	Records customer-facing cash activity, receipts, and supporting documents
Purchasing / Operations	Initiates purchases, confirms receipt of goods or services, supports bill review
External accountant / CPA	Provides independent review, adjusting guidance, or periodic oversight

Role design principles:

• Every recurring accounting function should have one primary owner.
• Each critical recurring task should have a backup.
• Authorization and recording should be separated where practical.
• Review responsibility should be explicit for material transactions and period close.
• If one person performs multiple duties, define compensating controls.
• Use individual user identities for accounting work; avoid shared logins.

Common functions to assign:

• receive and capture supplier bills;
• approve supplier bills;
• enter and post bills or journal entries;
• release ACH, check, card, or other payments;
• record deposits and receipts;
• perform bank and credit-card reconciliations;
• review receivables and payables;
• prepare and review month-end close items;
• review financial statements.

Starting authority model

Use a small starting authority model unless the business needs more structure.

Action	Owner	Accounting Manager	Accounting Staff
Define financial periods	Yes	Yes	Yes
Soft close period	Yes	Yes	Yes
Hard close period	Yes	Yes	No
Waive configured close blocker	Yes	Yes	No
Reopen period	Yes	No	No

Practical rules:

• Keep the number of Owner users small.
• Use Accounting Manager for normal close leadership.
• Use Accounting Staff for routine setup and review-stage work.
• Require a written reason whenever a period is reopened.
• Require a written reason for close-check waivers.
• Review user access whenever accounting responsibilities change.

Move beyond this starting model when:

• more than one company is managed;
• reopen authority needs formal delegation;
• waiver policy becomes more structured;
• separation of duties becomes a material control issue;
• external accountants need bounded temporary access.

Internal controls

Internal controls protect business assets, improve financial reliability, and reduce the risk of error or misuse.

Control principles:

• Controls should be proportional to business size and risk.
• Preventive controls are preferred, but detective controls are still valuable.
• Exceptions should be documented and reviewed.
• Every material transaction should be traceable to supporting documentation.
• Controls should depend on defined procedures, not memory or habit.

Core control areas:

Area	Practical control
Cash and banking	Record all activity, reconcile each bank and card account monthly, review unusual or old reconciling items
Purchasing and supplier bills	Define approval thresholds, require support, match obligation, receipt, and bill where practical
Payments	Review payments to reduce duplicate or unauthorized disbursements
Payroll and employee expenses	Retain time records, approvals, receipts, payroll reports, and restrict sensitive access
Monthly review	Review reconciliations, aging, trial balance, key accounts, unsupported entries, and open exceptions

For small teams, use compensating controls such as:

• management review of reconciliations and unusual entries;
• stronger document requirements;
• approval before payment release;
• periodic outside review by a trusted accountant;
• consistent audit trail and exception tracking.

Document management

Document management ensures that accounting transactions can be traced to complete, understandable, and retrievable support.

Source documents may include:

• supplier invoices, receipts, and credit memos;
• customer invoices and sales receipts;
• bank statements, deposit records, and merchant reports;
• contracts, leases, and loan documents;
• payroll registers and filings;
• approved internal schedules or memos for accruals and estimates.

Core rules:

• Material transactions should have supporting documentation.
• Support should be captured as close as practical to the real-world event.
• Support should be linked to the accounting transaction when possible.
• Missing support for material items should be treated as an exception requiring review.
• Documents should remain legible, retrievable, and retained according to policy.

The business should decide:

• where authoritative documents are stored;
• how documents are linked to BooksPlus transactions;
• who may view or change sensitive documents;
• how backups cover both accounting data and stored documents.

Useful metadata:

• date;
• amount;
• counterparty;
• document type;
• short business purpose or description.

Example file names:

• YYYY-MM-DD_Vendor_Invoice123_Amount.pdf
• YYYYMMDD_vendor_invoice123.pdf

Basic process:

1. Receive the document.
2. Capture it promptly.
3. Verify completeness and readability.
4. Record the related transaction.
5. Link the support to the transaction.
6. Retain the document according to policy.

Accounting policy baseline

The accounting system should produce records that are consistent, understandable, supportable by documentation, suitable for management reporting, and reasonably aligned with the business's adopted accounting basis.

The business should approve a written policy baseline covering:

• basis of accounting;
• reporting periods;
• materiality;
• revenue recognition;
• expense recognition;
• cash and bank policy;
• receivables and payables;
• inventory policy if inventory exists;
• fixed asset policy if fixed assets exist;
• sales tax, debt, and owner transactions;
• adjusting entries and journal control;
• source-document expectations;
• period close policy.

Accrual-basis reporting is the usual starting point unless management explicitly approves a different basis for a defined purpose.

Under accrual-basis reporting:

• revenue is recognized when earned;
• expenses are recognized when incurred;
• cash receipts and cash payments do not by themselves determine period recognition.

Tax reporting choices may differ and should not automatically control the basis used for the books.

Default policy settings

Defaults reduce repeated judgment during setup. Treat these as starting defaults unless the business approves another policy.

Area	Starting default	Review note
Basis of accounting	Accrual	Tax reporting may differ
Fiscal year end	December 31	Change if the business adopts another fiscal year
Reporting frequency	Monthly	Supports regular review and close discipline
Capitalization threshold	$500 per item	Override by written approval
Useful life rule	More than 1 year	Applies with capitalization threshold
Customer deposits	Liability until earned	Prevents premature revenue recognition
Sales tax collected	Liability	Do not record collected tax as revenue
Loan proceeds	Liability	Do not record debt as income
Owner contributions	Equity or owner loan according to substance	Entity form may affect detail
Owner withdrawals	Draw, distribution, payroll, or loan repayment according to substance	Review carefully
Bank reconciliation	Required monthly	Applies to each bank and card account
Supplier bills	Record when incurred	Supports accrual accounting
Inventory	Treat as asset if inventory exists	Not applicable for service-only businesses
Inventory counts	At least annually	More often if shrinkage risk exists
Fixed asset depreciation	Required for capitalized assets	Use a simple consistent method unless another is justified
Prepaid expenses	Use when material	Avoid overstating current-period expense
Material accruals	Record at period end	Includes unpaid expenses and similar items
Manual journal explanation	Required	Especially for non-routine entries
Supporting documentation	Required for material items	Electronic support is acceptable if legible
Sensitive entries	Heightened review	Cash, equity, taxes, loans, and close entries
Closed-period posting restriction	Required	Reopen or correction should require approval
Monthly close workflow	Required	Use a documented close sequence

If the business changes a default, record:

• the new value;
• approval date;
• approver name or role;
• reason for the exception;
• effective date.

Review defaults at setup, when the business changes, when accounting responsibility changes, and at least annually.

Fiscal period setup

BooksPlus fiscal calendars are period-driven. A business chooses a fiscal year end date and fiscal period pattern, then BooksPlus generates the periods for review.

Standard generated fiscal periods have this hierarchy:

• year is top-level;
• quarter belongs to a year;
• month belongs to the same year;
• quarters are derived from groups of fiscal months.

Recommended setup sequence:

1. Enter the fiscal year end date.
2. Choose the period pattern. For monthly calendars, use day 1-27 or the final day of the selected month.
3. Generate fiscal months.
4. Review the generated quarters and fiscal year boundary.
5. Activate the calendar.

Standard period setup should avoid asking users to invent period codes.

Common generated labels:

• year: FY2026
• quarter: FQ1
• month: FM01

The setup flow should make parent periods and date boundaries visible, and validation failures should use business language.

Examples:

• A quarter must belong to an existing fiscal year.
• A month must belong to an existing fiscal year.
• Quarter dates are derived from groups of fiscal months.
• The selected parent period must fully contain the child period dates.

Period close policy

The business should review and close its books monthly.

Default close sequence:

1. Record routine transactions.
2. Reconcile bank and credit-card accounts.
3. Review receivables and payables.
4. Record material accruals, deferrals, and corrections.
5. Review inventory and fixed asset adjustments if applicable.
6. Review financial statements.
7. Close or restrict the period after approval.

Closed periods should not be changed casually. Corrections to prior periods should be documented and handled through an approved process.

Edge cases to plan for

Plan how the business will handle:

• lost receipts or missing external documents;
• owner-only businesses with limited separation of duties;
• recurring subscriptions and repeating charges;
• cash purchases;
• refunds and chargebacks;
• unusual manual journal entries;
• owner transactions;
• old receivables and unpaid supplier items;
• stale bank reconciling items.

Completion criteria

Getting organized is complete when:

• accounting responsibilities are clearly assigned;
• approval and review expectations are documented;
• source-document capture, storage, linking, retention, and backup are defined;
• an accounting policy baseline has been approved;
• policy defaults have been accepted or overridden;
• fiscal-period setup rules have been reviewed;
• monthly review and close ownership are assigned;
• training needs are identified.