Single-entry accounting methods and systems that enable users without knowledge of accounting to accurately journalize business transactions and account for assets, liabilities, revenues, and expenses based on user transaction detail choices
OwnerDaniel D Selbyinventor
Life of this patent
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Abstract
Many small business owners do not possess the knowledge of accounting to keep accurate records of business transactions and to file reliable and timely tax returns. A general solution to this problem is disclosed that empowers business owners to supplement their accounting knowledge gap without the need to hire outside experts such as bookkeepers and/or certified public accountants (CPAs)
Claims3
A computer implemented financial accounting algorithm, implemented on a spread sheet platform having a functional code embedded therein adapted to be executed to implement a method for generating and outputting a key performance indicator dashboard, statement of cash flows and cash commitments, income statement, balance sheet, and Financial Acquisition Report (FAR), and said method comprising:
- providing the Microsoft Excel program, wherein the spreadsheet comprises a functional code being executed to provide the following functionalities:
- (1) an input screen where an account balance appears at the top of the columns. The economic impact of each recorded transaction on the trial balance is transparent because the account balance is the summation of all amounts entered in their respective columns that represent either a balance sheet account balance or an income statement account balance;
- (2) Direct method cash flow statement automation where the system automatically updates Cash Flow Statement Activity Code as O (Operating), I (Investing), or F (Financing) every time a transaction is entered that involves a cash receipt (+) or cash disbursement (−). Each row has a Cash Code Control that will signal a Cash Flow Statement Activity Code;
- (3) A control embedded at the top of the spreadsheet that signals trial balance error differences so that compliance with the accounting equation, Assets=Liabilities+Capital is transparent, referred to as the Trial Balance Error Control, a sum of all account balances;
- (4) A Journal Entry Control that signals any violation of double-entry accounting. This control is a summation of all dollar amounts in each row;
- (5) A Reference Document Control tag embedded for specified accounts to allow the user to enter a document number reference (e.g. invoice number) should be entered on the row for audit trail purposes;
- (6) Output of Income Statement presented in a proprietary format that is compliant with Internal Revenue Code (IRC), Generally Accepted Accounting Principle (GAAP), and Activity-Based Accounting settings for each product/service line within a business.
Dependencies are inferred from the claim text.