What I have worked toward

Workflow assimilating manual process

• You will find yourself following accounting procedures, with 3D Boki, very similar to that of manual accounting. Although, under slip accounting system, the step 1 and 2 below are to be done by means of slips on which every transactions are recorded, the basic workflow is the same. In fact, 3D Boki (book keeping) system is structured modeling after this workflow.
  1. You record transactions in your accounting journal.
  2. You post from your journal to your general ledger by account.
  3. You make summation of each account on the general ledger, and post each balance to your trial balance.
  4. Based on the trial balance, you prepare Balance sheet and Income statement.
• This 3D Boki system, based on your step 1 work, make “Report Preparation” command get the job of painstaking steps 2 through 4 done correct and quick. In the process, journal summary table segregating by their sorces of BK, JV, AP, AR, is made on BS and PL, like when you do it manually.
• Using 3D Boki system, you will feel yourself at home because you recognize in what stage of accounting workflow you are, like when you do it manually.
• Further, your are expected to get the ability of foreseeing what effect your new accounting entry would have on your BS/PL.

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Visible data, ready-to-use data

・Visible data：

• On this 3D Boki system which run on OOo, you input accounting data in journal style books. Therefore, you can see and print those data exactly as they are. You can forget about proof list or anything like that on 3D Boki. The data you see in your journal represent the only and entire input data.
• 3D Boki makes summary list of journal entry amounts by journal (bank book, journal voucher, accounts payable register and accounts receivable register) for each account. On the contrary, 3D Boki makes a complete list of journal entries which constitute a summarized amount.This both way path between summary and detail makes it easy for you to follow the work done keeping you vigilent on every corners of your accounting work. You will feel unrivaled comfortableness working with 3D Boki.
• When detailed verification of the financial statements can be easily done by the preparer himself, it is natural that external, internal and statutory auditors find it also easy to verify them. It is a proven fact that this leads to a shorter time of auditing and a lower auditor's cost. It could be said that 3D Boki has another comparative edge over other accounting systems in this respect.

・Ready-to-use data：

• 3D Boki is 100% pure OOo, and the input and summarized data are also pure OOo. Accordingly, you can apply such powerful OOo commands as sort, filter, group and outline, etc. either directly to the 3D Boki data or indirectly by copy and paste to other sheet to utilize them for making your own reports and presentations.
• By being OOo data, 3D Boki data can be easily coverted to Microsoft Excel® file and Adobe PDF® file. There are also ways to reuse 3D Boki data in numerous other application softwares.

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Validation oriented accounting practice

・Principle of double entry bookkeeping:

Modern bookkeeping stands on the principle of double entry bookkeeping. The debit and credit sides of a journal entry must agree in amount and trial balance must hit balance between debit and credit. 3D Boki system makes sure that the figures on the “Audit” row on the BS sheet are zero to secure balance. When inbalance is found, 3D Boki will lead you to the journal entry row causing the inbalance.

・To be supported by an evidential voucher:

Balance sheet items of materiality should always have account analysis each detail of which can be supported by an evidential voucher. Financial statements prepared through accounting process are not born as fairly stated. On the contrary, they are accepted as fairly stated through withstanding diverse scrutinies on, so to speak, a posteriority basis. However, it is impossible for the fainancial statements to withstand examinations, should they were not suppoted by the books of accounts having such nature to keep standing. Then, what form should the books of accounts have ? Let's compare the following two forms of books.

　

Form-1 General ledger type of Accounts receivable
Date	ref#	Customer	Description	Dr.	Cr.	Balance
YY/04/01		Brought Forward		3,000		3,000
YY/04/08	23	D Inc.	Product C012	500		3,500
YY/04/18	33	P Co. Ltd.	Product W011	700		4,200
YY/04/30	47	C Corp.	Cash receipt		750	3,450
		Month Total		4,200	750
YY/04/30		Carried forward			3,450
		Total		4,200	4,200

　

Form-2. Well analyzed register of Accounts receivable
Date	Invoice No	Customer	Description	Balance at beginning	Increase	Decrease	Balance at ending
YY/02/16	K024	A Inc.	Product B010	650			650
YY/02/22	K033	B Inc.	Product T003	420			420
YY/02/25	K043	C Corp.	Product C012	750		750	0
YY/03/20	K056	D Inc.	Product C012	680			680
YY/04/08	K083	D Inc.	Product C012		500		500
YY/03/22	K066	P Co.Ltd.	Product W011	500			500
YY/04/30	K101	P Co.Ltd.	Product W011		700		700
		Total		3,000	1,200	750	3,450

As you see, Form-1 does not have the analysis of brought forward amount in 3,000, which will cause following problems;

• In order to know the detail of “Brought forward” amount, you need to input seperate efforts. In ordinary case, “Brought forward” amount is consisted of several tens or hudreds of items. Therefore, this requires of you much harder work than the analysis for the current month.
• Upon receipt of cash, you have to dig in prior months sales to the customer to find out what the receipt is for. As volume of sales expands, you will soon find it difficult to keep up with the matching work. If you are capable enough, you might keep pace with the expansion for a good while, but for verification of your matching by other than youself, it is often the case that more efforts will be required than the effort you have put in. The difficulty grows worse when such factors join in as VAT rounding difference and the custom of subtracting bank transfer charge from the amount your customer owes to your company. It becomes something like solving a complicated puzzle.
• You need another seperate efforts to know such important information as delayed collection, uncollectibles, doubtful accounts and credit balance regarding each customer. In practice, this kind of report tends to come after finishing monthly financial statements preparation. Delay in reflecting such material information and taking necessary actions for more than a month would put you in a constant danger.

The above remarks apply equally not only to accounts receivable, but also to accounts payable – trade, accounts payable – other, advance payments, suspense accounts and so forth. Supporting balance sheet items by account analysis in the form-2 above which present detailed items with the movement during the month from beginning to the end would sweep away all the unknown chunks out of your accounting. This method of account analysis should be necessary in addition to the principle of double entry bookkeeping. Such a system of accounting with built-in verification mechanism is so solid that it should worth being called 3 dimensional, thus the name of our system, 3D Boki (book keeping).

This system makes validation of balances of assets and liabilities easy and help trigger timely management action by the use of acount analysis tool on the priciple of 3D Boki. Of course, as described below, trend analysis and account analysis of income statement items can also be done by the use of the tool. In this way, you will not be afraid of being audited even at a short notice, and your day-to-day accounting could be unconscious preparation for initial public offering.

・Completeness and/or exhaustiveness of journal entry:

Because a certain amount of bank deposit has the same value irrelevent of how it came into posession, there is no use making an account analysis thereof. It is appropriate to establish completeness and correctness of books of accounts of this kind of assets by such external evidence as bank passbook or bank statement and bank reconciliation, if necessary. Bank book of this 3D Boki system has the apperance of these passbook or bank statement and the transactions are input in such an order as appear in the external record agreeing balance on a day-to-day basis. This practice assures complete and correct book keeping established by the external evidence. Due to the fact that every transaction will result in cash transaction sooner or later, this is a big key to the security of complete and exhaustive journal entry.

・Trend analysis:

As for income statement items, monthly trend table will assist you find irregularities from bird's-eye view (3D Boki fills in the current month column of the monthly trend table in the process of BS/PL preparation). If you are interested to see the detail of any account of any month during the year on the trend table, you have 3D Boki show it using its account analysis tool (See the section Account Analysis command for how to use it).

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Minimal journal entries

3D Boki requires notably less journal entries input than other accounting systems for the following reasons;

・United (Combined) journal entry:

Such books on 3D Boki as Bank Book(“BK”), Accounts Payable Register (“AP”), Accounts Receivale Register(“AR”) are designed so that one side of a journal entry is determinable without any additional information. For example;

• On BK sheet for a bank deposit account, if you input a transaction for travel expense, the contra account is the bank deposit account. If you input another transaction for office supplies below it, the contra account should be the same, the bank deposit account. This applies to all other transactions input in the form of a bank statement for the same bank deposit account. So, we can unite the journal entries for the contra account into one.
• On AP sheet, if you input a transaction for puchase of raw material, the contra account must be accounts payable – trade. If you input another purchase transaction for some raw material from some vendor somewhere in the AP sheet, the contra account should be the same, accounts payable - trade. This applies to all other transactions input in the form of AP. So, we can unite the journal entries for the contra account into one.
• On AR sheet, if you input a sales transaction for merchandise A, the contra account must be accounts receivable – trade. If you input another sales transaction for some merchandise to some customer somewhere in the AR sheet, the contra account should be the same, accounts receivable - trade. This applies to all other transactions input in the form of AR. So, we can unite the journal entries for the contra account into one.

In a word, one side of journal entries are made individually, and the other side of the journal entries are united, combined and made as one on a monthly basis. for each book.

・VAT paid:

VAT paid is recorded in the same row of BK, JV and AP as the taxable transaction itself, thus maintaining one to one relationship. On the other hand, debiting VAT paid account is entered automatically as one united journal entry each for BK, JV and AP on a monthly basis.

・VAT received:

VAT received is recorded in the same row of BK, JV and AR as the taxable transaction itself, thus maintaining one to one relationship. On the other hand, crediting VAT received account is entered automatically as one united journal entry each for BK, JV and AR on a monthly basis.

・Bank Transfer charge in Bank Book:

Bank transfer charge, if there are any charged on you, is recorded in the same row of BK sheet as the payment of the original liability with one-to-one relationship. This is also the case when you receive cash from your customer the amount of which is less than that you have originally billed by the amount of the bank charge the customer paid in advance.

・Withholding income tax in Bank Book:

Withholding income tax is recorded in the same row of BK sheet as the original taxable transaction maintaining one-to-one relationship. This input method facilitates your verification of withholding correctness when you make account analysis of the Withholdings payable account, because the analysis result is presented corresponding taxable amount and the withheld tax amount in the same row. This comes in handy also when you prepare regular information return to the tax office.

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Concise books and reports

• Books of 3D Boki have features of form designed in a compact manner making most of OOo capabilities, minimal number of journal entries, AP and AR serving both for register and account analysis report.
• Because books of account and accounting reports are on the same 3D Boki Calc book, reports do not have to be prepared seperately. This saves overall time for monthly accounting and overall sheets required for keeping books and reports.
• However compact and concise, the books and reports are full of to-the-point and sufficient information. This renders printing time shorter, management review more efficient and storage space smaller.
• Other accounting system most often requires long time for print-out of books and reports, and sometimes you have to reprint many extra pages due to a small error corrected. Some companies do the print-out job only semi-annually to avoid this. Spare this kind of absurdity with 3D Boki on OOo.

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