Between Heaven & Hell 2/BetweenHeavenHell.cdr/500/416/man

Text File | 1979-12-31 | 83KB | 1,756 lines

                          PC-ACCOUNTING

                     Copyright 1986 PPE Inc.
                       All Rights Reserved


                           Contents

Introduction ....................... 2
List of Files ...................... 2
Program Menus and Options........... 3
  Main Program ..................... 3
  Pay Program ...................... 4
  Secondary Program ................ 4
Main Program........................ 5
Changing Transactions............... 7
Payroll ............................ 7
Tax Tables ......................... 7
Employee File ...................... 9
Using Payroll Program .............. 10
Post Tax Liabilities ............... 12
Comparing Bank Statement ........... 13
Optional Compare Bank Statement..... 15
1099 and W2 Tax Forms .............. 15
Inventory .......................... 16
Car Log ............................ 17
Checks ............................. 17
Income Tax Forms ................... 18
Multiple Transactions .............. 19
Gross Pay and Quarterly Reports .... 19
Scanning Files ..................... 20
Paycheck Condensed Format .......... 20
Program Accuracy ................... 20
Double Checking Sums ............... 21
New Year/ End of Year .............. 21
Bank Accounts ...................... 22
Program Limits ..................... 22
File Management .................... 22
Starting Your Own Files ............ 23
Starting in the Middle of the Year . 23
Errors ............................. 24
Business Income Tax Basics ......... 24
Depreciation ....................... 26
Prompts ............................ 26
File Explanation ................... 27
Disclaimer of Warranties ........... 28
License Information ................ 28
Update Service ..................... 29
Update Order Form .................. 31
Other Products from PPE ............ 32



                          Introduction

     PC Accounting is a single entry accounting system designed
for small businesses.  The main advantages to single entry
accounting systems are that they are relatively easy to use and
very little knowledge of accounting is required.  The main
disadvantage is that there are no checks and balances as there are
in double entry accounting.  Therefore, a single entry system is
not recommended for large businesses where the owner cannot
personally keep track of all transactions where the possibility of
embezzlement exists.  A double entry accounting system will not
prevent all embezzlement, but it will make it more difficult.

     PC Accounting is similar to the Dome accounting books and
most single entry pen and paper accounting systems.  The main
differences are that all the entries are stored on disk instead of
ledger paper and the computer does all the calculations for you.
The data files on disk hold the same information that your ledger
paper would hold.

     Before you can start using this program you need to know
how to use your computer and disk operating system.
You should know :
   1.  How to turn on your computer and load DOS
   2.  How to backup a disk or file using DISKCOPY or COPY
   3.  How to see what is on your diskettes using DIR
   4.  How to delete a file using DEL
   5.  Which disk drive is drive A, which disk drive is drive B,
and which one is the default disk drive at any time (the letter
before the > prompt).
     If you do not know how to do any of the above read your Disk
Operating System Manual to find out how.  IBM also encloses
with some of its computers a manual titled Guide to Operations
which explains in simple terms how to use DOS.  You could also
get a friend to show you how to use your computer.

                          LIST OF FILES

     The following files should be on the diskette you received.

MAIN.EXE       - The main program
PAY.EXE        - The payroll program
SECOND.EXE     - The secondary program
TRANSACT       - Contains all the transactions
PAYCK          - Contains all the paychecks
TAXTBL         - Contains all the tax tables; used by pay program
EMPLOYE        - Contains all the employee information; used by
                  pay program
COMPANY        - Contains company name, address, and tax numbers
                  used for W2 and 1099 tax forms
CONTRACT       - Contains name, address, and tax number of contractors
CLASS          - Contains description of each class
BANK           - Contains name of each bank
CARLOG         - Contains all carlog entries
GROSSPAY       - Contains gross pay and tax liabilities
LASTGROSS      - Contains gross pay for each employee at last
                 The -2 quarter option will create file.
INVENTOR       - Contains inventory
SCREEN         - Contains screen for transaction input
MAN            - The manual on disk
PRINTMAN.BAS   - A short basic program that prints the manual
BRUN10.EXE     - Basic run-time module

    PC Accounting is a system of three programs.  The first program
named MAIN is used to enter the transactions and carlog entries.
The program PAY is the payroll program.  The program SECOND is
used to initialize your tax tables, employees, contractors, and
other information.  The program SECOND also has the end of year
inventory and depreciation calculations.
     You can start any of the three programs by putting the
diskette with the program in the default disk drive then type
the program name.  For example :
A>MAIN
or
A>PAY
or
A>SECOND
    Each program will take a few seconds to load.  Each program
will then display a prompt asking you to put the program data disk
in the default disk drive.  Make sure the disk is in the default
disk drive, then press any key to continue.  When you are familiar
with the program, you may find it convenient to load the programs
from disk drive B.  Each program is loaded entirely into memory
so that the program file does not have to remain in one of the
disk drives.  If this is your first time trying out the system,
just put the disk in drive A or copy all files on your hard disk,
and leave the disk in until you understand the system.

               PROGRAM MENUS SUBMENUS AND OPTIONS

                          MAIN PROGRAM

0-Exit to Operating System
A-Transactions
   A-Enter New Transaction
        Print Checks
   B-View Already Entered Transactions
        Make Changes
        Print on Paper
        Print Checks
   C-Scan Transactions
        Scan a Single Bank
        Scan a Single Contractor
        Scan a Single Class
        Print Transactions Scanned on Paper
        Print Subtotals on Class
        Print Total Deposits, Withdraws
B-Compare Bank Balance
C-Car Log
   A-New Log Entry
   B-Scan Entries
        Print on Paper
        Change a Single Log Entry
        Show Total Mileage
D-Contractor End of Year Summary
   A-Total Payments to Each Contractor
   B-Print 1099 Tax Forms

                           PAY PROGRAM
0-Exit to Operating System
A-New Paycheck
        Computes Deductions
        Print Checks
        Print on Paper
B-View a Single Paycheck
        Print Checks
        Make Changes
        Print on Paper
C-Post Tax Liabilities
D-Scan Paychecks
        Print on Paper
        Subtotal Taxes
        Scan a Single Employee
        Scan a Single Pay Date
E-W2 Tax Forms
        Print Individual W2
        Print Subtotal W2
        Print Total W2
F-Tax Liabilities, Gross Pay
        Change Tax Liabilities
        Change Gross Pay
        Quarterly Gross Pay
        Clear Gross Pay
        Move Gross Pay to Quarter Gross Pay

                        SECONDARY PROGRAM

A-Depreciation
   A-ACR 3 year 6% tax credit
   B-ACR 3 year 4% tax credit
   C-ACR 5 year 10% tax credit
   D-ACR 5 year 8% tax credit
   E-Straight Line
   F-Double Declining
   G-Sum of Digits
   H-Fixed %
B-Class of Transaction
   A-View and/or Change a Class
   B-Print All classes on Paper
   C-Reduce Maximum Number of Classes
C-Bank Accounts
   Change Name or Number of Bank Accounts
D-Contractors for 1099 form
   A-View/Change/Enter a Contractor
   B-Print a Single Record on Paper
   C-Print All Records on Paper
E-Screen Prompts
   Enter/Change Screen Prompts
F-Company Name and Information
   Change Name/Address/Tax Number
G-End of Year Inventory
   A-New Entry
   B-Scan Inventory
       Print on Paper
       Change an Entry
       Total Inventory Value
H-Employee File
   Enter New Employee
   Change Old Employee Data
   Print on paper
I-Tax Tables
   Enter New Tax Table
   Change Old Tax Table
   Print on Paper

                          MAIN PROGRAM

     The best way to learn how the program works is to run the
program and start using it.  This is not a printed manual filled
with screen prints of every possible screen the program
generates.  Therefore, you will have to learn by doing.  In case
you have not noticed, the way most people, including us, write huge
manuals for their software is to show a screen print on one page,
a sentence or two describing the option chosen, then a screen
print on the next page showing the results.
     The program is menu driven.  Put the diskette in drive A
and start the program.  Just follow the menus to the different
options. The programs are fairly simple, so it will only take you
an hour or two to become familiar with all the programs.

     The main program lets you enter transactions.  You can think
of the transaction file as a ledger containing the following
columns :

Day
Month
Description
Pay To
Bank Number,   1 or 2, 0 for Non-Bank Transaction
Check Number,  0 for Deposit
Check Cleared Y/N
Amount, Dollar amount of the Transaction
Contractor Number
Class of Transaction
Bank Balance Bank #1
Bank Balance Bank #2

     The new entry screen will show you the last entry in the
upper right hand corner of the screen.  The last entry is shown
so you don't type in a transaction twice by mistake.  When first
entering a transaction for the day, look at the last entry and
make sure it is the last date and last transaction you entered
the last time you used the system.  A common mistake is to start
using last week's backup disk instead of the most up to date disk.
If you look at the last transaction entered, this should not
happen.
     Your bank balances are shown in the lower left hand
corner.  The lower half of the screen shows all the classes of
transactions.  You can change the screen using the secondary
program.  Note that changing classes does not automatically
change the the screen.
    The class of each transaction is the category or
classification of the transaction.  You can chose your own
classes using the secondary program.  Examples of classes are
advertising expense, office expense, utility expense, and
so forth.
    The day and month fields are entered automatically by the
computer.  When the program first starts up, it will ask you if
the date is correct and give you the opportunity to change it.
You can either enter the date when you boot up DOS or when you
start the program.  On some not so IBM compatible computers the
program may not get the correct date from DOS, so you will have to
enter it when starting the program.
     The check cleared field is set to "N", not cleared.  The
computer automatically updates each bank account balance after
each transaction.  You enter the other fields.
     For the check number, enter 0 for a deposit; otherwise enter
the check number.  The program does not keep track of checks by
check number, so it does not make any difference if you skip check
numbers.  If you are making a withdrawal without using a check,
enter check number 1 anyway so the program will recognize it as a
withdrawal.  When you print checks the computer gives you the
option to change the check number.  You may find it more
convenient to enter the check number when printing checks.  You do
not have to print the checks out using the computer; you may
write your checks by hand if you prefer to.
     If the transaction is a cash or non-bank transaction enter 0
for the bank number.  A cash or non bank transaction will not
change any of the bank account balances.
     The IRS requires you to send them a 1099 report of
miscellaneous income to any person you pay over $600 per year to.
The contractor number is used to prepare the 1099 forms.  Most
transactions do not involve contractors, so you can just enter 0
(or press return for the default value of 0) for no contractor.
If a contractor is paid, enter his contractor number.  Enter all
transactions paid to a contractor.
     If you are not sure which contractor is which, you can use
the -1 scan contractor option.  This will show contractor number
1 on the screen.  Press any letter key to see the next contractor.
Continue pressing any letter key until the correct contractor number
is shown.  When the correct contractor is shown press return.
     Depending on your business you may many contractors.  If
your business is small you may not pay any contractors $600 for
the year.
     You can exit the enter a new transaction subroutine by just
pressing return on the first description field or using -1
the abort entry option.

                      CHANGING TRANSACTIONS

     Using the view a single entry option, you can change some
of the information in the transaction file.  After a transaction is
entered, you can NOT change the amount or bank or change a deposit
to a check or change a check to a deposit.  This is because the
program is designed like your bank statements.  The bank
balances are kept in 2 fields of the transaction file.  Any
change to a bank account balance must be done with a new
transaction.  This is done for security and reliability reasons.
For example, if you enter a check as $400  when it actually was
for $500 you can't just change the $400 to $500.  You can enter an
adjusting transaction or enter a voiding transaction.
     In the above example an adjusting transaction would be a
"check" for the difference of $100.  You enter an adjusting
transaction the same way as any other transaction.
     You could VOID or negate a bad transaction by the same
transactions with the negative amount of money.  You would also
want to change the description to "Voiding ..... " so that you
know it is a voiding transaction.  Once you have voided the bad
transaction, you can enter the correct transaction.
      Obviously, this is some trouble.  It would be easier just
to change the initial transaction, but if we let you do that you
would have no record of changes which could make your bank
account balances unreliable.  Needless to say, make sure your bank
account number 0,1 or 2, the dollar amount, and whether it is a
check or deposit are correct before you press the 0 for OK, no
changes, when entering a new transaction.

                             PAYROLL

     You can use the transaction program without using the
payroll program.  Use of the payroll program is optional.  If you
are a one person company, you many not have any payroll.
     You can try the payroll program with the sample employee and
tax tables we have provided.  Once you have tried the program and
decided to use it, enter your own tax tables and employees using
the secondary program.  Enter the tax tables first because you
have to assign each employee to the tax tables later.
     This system can only handle one length of pay period.  You
can pay your employees weekly, every other week, twice a month or
once a month.  You cannot have some employees paid once a week
while some are paid once a month.  All employees must use the
same length of pay period.  This is because this system only has
room for the tax tables of one pay period.
     The tax tables we have included as samples on  disk are the
1986 Employee Social Security, Employer Social Security, weekly
Federal Withholding, and weekly Federal Earned Income Credit
tables.
                           Tax Tables
     You can have up to 16 tax tables.  The first eight are
reserved for :
1. Employee Social Security
2. Federal Single Income Tax Withholding
3. Federal Married Income Tax Withholding
4. Federal Unemployment Tax
5. State Unemployment Tax
6. Employer's Social Security -  Currently this is the same as
     tax table one but tax laws could change
7. Earned Income Credit Single (EIC)
8. Earned Income Credit Married (EIC)
     Tables 9 to 16 can be used for state taxes, local taxes,
state deductions, disability, union dues, or any other deduction
you can put on a table.

     Each tax table has:
Description - Name of the tax table
Allowance   - This is the dollars deducted from taxable pay for
each allowance.  For example, the federal allowance is $20.77 for
each allowance on a weekly payroll.
Limit On Gross - Some taxes such as Social Security apply only
to pay under some limit, such as $42,000 for Social Security in
1986.
Number of Tax Brackets - This is the number of tax brackets or
rows in the tax table.  You can use a maximum of 15 brackets.

Each row or Tax Bracket contains the following :
Lower Limit - if pay is under the lower limit, this tax bracket
     does not apply
Upper Limit - if pay is over the upper limit, this tax bracket
     does not apply
Tax - This is the dollar tax plus
Percent - Additional tax is this percent of the pay over the over
     amount
Over - over this amount;  this is usually equals the lower limit

     Enter the tax tables for the pay period you are using.  For
example, if you pay your employees every week, enter the federal
single weekly tax table, the federal married weekly tax table, and
the state weekly tax tables.  Some of the tax tables are the
same regardless of pay period.  For example Social Security is
7.15 percent up to a limit of $42,000 regardless of the pay
period.
     The Federal Tax Tables are obtained from IRS Circular E
"Employer's Tax Guide", which the IRS sends free every year to each
employer.  Once you get on the IRS employers mailing list and
your state employers mailing list, they will mail you tax table
changes.  You get on their mailing lists when you apply for a tax
ID number.
     The IRS lets you figure income tax withholding by either
the "Percentage Method" or "Wage Bracket" method.  This program
uses the percentage method.  Most states have a percentage
method very similar to the Federal percentage system.  A few
states will publish a yearly percentage withholding method and
make you divide the yearly figures by the number of pay periods
in a year.  For example, the State of Wisconsin has the following
tax withholding schedule:

    Annual Net Wage        Tax

   Not over $7,500           5%
   $7,500 to $15,000        $375 plus 6.6% over $7,500
   Over $15,000             $870 plus 7.9% over $15,000

     You can convert this to a weekly table by dividing all the
dollar amounts by 52 (the number of pay periods in a year).  The
percentages remain the same:

     Weekly Wage          Tax

   Not over $144.23         5%
   $144.23 to $288.46      $7.21  plus 6.6% over $144.23
   Over $288.46            $16.73 plus 7.9% over $288.46

     When entering the tax tables, you will notice that the
computer will estimate the lower limit, tax, and over amount.
All you have to enter is the Upper Limit and Percent.  This is
because the Lower limit, Tax, and Over amounts can be computed from
the just the Upper Limit and Percent.  This saves you a few
minutes of entering numbers.
     Also, the last upper limit is probably "No Limit" or left
empty in most tax table.  In other words, no matter how much money
you make the government wants its percentage.  However, this
computer program does not understand the words "No Limit " so enter
$99,999 for the upper limit of the last row.  No employee in your
business makes over $99,999 in one pay period so $99,999 is
effectively no limit.

                         Employee File
     After you enter the tax tables, you should enter each of your
employees in the employee file using the secondary program.  For
each employee you need to enter :
1. Name
2. Street Address
3. City, State, Zip Code
4. Social Security Number
5. Married or Single Federal Tax  1 for Single  2 for Married
                                  0 - No federal tax
6. Class of Transaction - This is not currently used
                        - Reserved for future use
                        - Just enter zero
7. Salary or Hourly Wage - must not be zero
8. Earned Income Credit: 0 for none, 1 for Single, 2 for Married
9. Number of Federal Allowances
10. Number of State Allowances - 0 if none
11. State Allowances in dollars - In some states you don't get
the same amount for each allowance.  Some states give you $30
for yourself, $25 for being married, and $20 for each dependent.
If you are in a state where the allowances are not equal, you
will need to enter the employees allowance in dollars here.  If
you are in a state where the dollars per allowance are equal then
enter zero and let the tax table calculate the allowance using
the above number of state allowances.  Use either this option or
the previous option to compute the state allowances(Don't use
both).
12.  State Deduction - Some states give you a state deduction in
addition to the your allowances.  This is similar to the old
federal system before the $2,700 dollar personal deduction was
figured in the withholding tax tables. 0 if no state deduction.
13. State Deduction Table - 0 for most states.  For a few states
the deduction is progressive or regressive and you need a tax
table to figure out the state deduction.  For example in Maryland
you get a deduction of 15% of your income up to a limit of $30 on
a weekly basis.  See the sample state deduction table if you live
in a state that has varying deductions. Use either this option or
the previous option to compute the state deduction (Don't use
both).
14. State Tax Table Number - Enter the number of the State Tax
Table for the employee.  Make sure it is the correct married or
single table
15. State Number.  This is important if you have employees from
more then one state and have to pay withholding taxes to several
states.  State one should be your state.  States 2,3, and 4 can be
other states that you withhold taxes for.  This does not affect
the calculation of the tax; the state number only affects which
state the state taxes are totaled for.
16. Local Tax Basis
     1- Percent of Gross Pay
     2- Percent of Federal Tax
     3- Percent of State Tax
     4-16 a tax table number for local tax; the number of
          allowances for local tax equals the number of
          state allowances.
17. Local tax percentage- Used if the local tax basis is percent
of gross pay, percent of Federal Tax, or Percent of State Tax
18. Optional Withholding 1.  - A tax table number 0 if none
19. Optional Withholding 2.  - A tax table number 0 if none
20. Optional Employer Tax 1  - A tax table number 0 if none
21. Optional Employer Tax 2  - A tax table number 0 if none
22. Optional State Tax Credit - 0 if none (most states)  Some
states like California give a tax credit on state taxes to each
employee.

                 Using The Payroll Program
    Now that you have entered the initial tax tables and employee
information, you can use the pay program to enter a few test
paychecks for them.
     Use option A to enter new paychecks.  The computer will
run through each employee and ask you if you want to enter a
paycheck for the employee.  If the employee has not worked
this pay period, you press N for no pay.  The computer then
advances to the next employee.  If the employee has worked,
you press Y for yes.
     The computer will then ask you for number of hours worked.
You need to enter a decimal number.  One hour and a half is 1.5
hours not 1.30 (one hour and thirty minutes).  Fifteen minutes
is a quarter of an hour or .25 hours.  Forty five minutes is
three quarters of an hour or .75 hours.  If you keep exact track
of how many minutes your employees work instead of keeping track
of the nearest quarter hour, you will have to convert to decimal
by dividing the minutes by sixty.  For example if an employee
works 3 hours and 58 minutes and you are too cheap to pay him for
four hours then you have to convert the 58 minutes to decimal by
dividing 58 by 60 to get .9666 hours + 3 equals 3.9666 hours.
But most of you probably hire people to work on the hour, half
hour or quarter hour and probably don't care nor have a time
clock to track hours worked to the exact minute.  If you enter
zero for the number of hours worked, the computer will move to the
next employee.
     The computer will then ask you for tips for this employee.
If your employee receives tips, you have to collect taxes on them.
Just press return for the default value of 0 if the employee has
no tips.
    The computer will show you the gross pay, then it asks you if
it is correct.  Press Y if the gross pay is correct.  Press N for
no if the gross pay is not correct. If you press N the computer
will give you the opportunity to enter the gross pay or reenter
the hours worked.
     The computer will then automatically calculate and display
the following :

Month Day Record Number
3. Employee Number and Name
4. Hourly Wage and Salary
5. Hours Worked
6. Tips
7. Gross Pay
8. Federal Income Tax Withheld
9. State Income Tax Withheld
10. Local Income Tax Withheld
11. Social Security Withheld
12. Other Withheld 1
13. Other Withheld 2
14. Earned Income Credit
15. Paycheck

16. Employers Federal Unemployment
17. Employers State Unemployment
18. Employers Social Security
19. Employers Tax 1
20. Employers Tax 2
21. Check Number

     Line 16 to 20 are taxes that you, the employer, must pay. They
are not deducted from the paychecks.
     Lines 8 to 13 are deducted from the employee's paycheck.
Earned income credit is added to the paycheck.
     The Other Withholding Tax 1 and Other Withholding 2 can be
used for union dues, health plans, or other state taxes.  The
Other Employer Tax 1 and Other Employer Tax 2 can be used for
state disability, pension plans or other taxes.

     The options after the computer displays the tax are:
A-Forward B-Back C-Change D-Print on paper E-Print Check F-Redo
The Redo option lets you start over entering the employee hours,
gross pay then recomputes the taxes.  You can print the check at
this time, but it is advisable to wait until you have entered all
the employees.  Press Return to go to the next employee.  The A-
Forward and B-Back Options are disabled during the new paycheck
entry.

     You can use the Change option to enter any other taxes or
deductions by hand.  For example, if an employee borrowed $100 from
you and you are taking $25 dollars out of his paycheck each paycheck,
you can reduce the paycheck by $25.

                          Employee Tips
    Tips are also subtracted from gross pay because you, the
employer, do not pay the tips.  If an employee receives two or
three times more tips then salary, it is possible that the
paycheck could end up negative.  This means that all of his
salary goes to taxes plus you still have to collect money from
his tips to pay some of the taxes.  Also, if you have a tipped
employee who earns over $42,000, the Social Security limit you
still have to pay employer's Social Security until the salary
(not including tip) reaches $42,000.  The computer will stop
computing employer's social security when gross pay reaches
$42,000.   You will have to enter this using the change option.
Since there are probably no tipped employees who earn (much less
report) $42,000, this will probably never be a problem.
     Tips are included in the gross pay for federal and state
unemployment tax calculations.

                      POST TAX LIABILITIES

     When you are done doing all the paychecks, use the option
"Post Tax Liabilities" to add all the taxes payable, and
the employee gross pay.  This operation requires no action on
your part.  You just press C and watch the computer post the
records for a few seconds.
     Before you post the tax liabilities, you should scan the
paychecks you have just entered to make sure they are correct.
Printing out the subtotal of taxes should at least confirm that
they are no wildly incorrect values.
     The Payroll and Transaction Programs are not interconnected.
After each payroll, you have to make an entry in the transaction
file contain the total dollar amount of paychecks made .  This is
done to update your bank account balance.  For example, if you
paid five employees $100 each, enter a transaction entitled Total
Paychecks Jan 1 for $500.  If you are a manufacturer, you will have
to allocate your labor between manufacturing labor and
administrative labor.  For example, if three of the employee make
sailboats and two of them sell them you will need to enter a
transaction for manufacturing labor of $300 and administrative
labor of $200.

     After you have posted the tax liabilities, you should use
option F - Tax Liabilities to look at how much you owe the federal
and various state governments.  Depending on the amount of taxes
you owe, you may have to mail the government a check right away,
at the end of month, or end of the quarter.  If you make a payment
on any of the taxes, you should enter the payment in the Tax
Liabilities option of the payroll program.
     When you are at the main menu of the payroll program, the
computer will display the last record posted and the last record
entered.  You should make sure the last record entered was your
last pay period entry to make sure you are not using an old disk.
     Before you start entering a new pay period, you should make
sure the last record posted is the same as the last record.  If it
is not, post the records before entering the new records.  The only
thing that could happen if you don't post last week's paychecks before
starting this week's is that some of the taxes which have a limit on
gross such as Social Security could be overcollected if you hit
the limit on gross during either the week you failed to post or
the current week.  For example, if my pay at $1,000 per week went
over the limit of $42,000 last week but I forgot to post the
paychecks, I would end up paying social security this week even
though I should not pay any because I  went over the $42,000
limit last week.
     The posting subroutine will post all records that have not
been posted, so even if you forget to post for a week, next week
the two weeks will be posted at once.  The records cannot be
over posted.  Even if you use the Post option two or three times
in one week by mistake, the computer will only post each record
once.

                 MAKE BACK-UP COPIES EVERY WEEK

     You should make back-up copies of your data at least once a
week or whenever you spend a large amount of time entering
data.  If you spend a hour a week entering data, you have invested
52 hours by the end of the year entering the data.  If you lose
the information, it will take you a long time to reenter the data.
So make plenty of backup copies.  Don't reuse the same disk
every week for the backup.  Disks are so cheap now that you
should use a different disk each week for backup.  If you lose
one week's data, you can get the disk from last week and reenter
the one week only.
     You still need to keep your checks and receipts in case you
are audited.  Just because you entered in a payment in this
program does no constitute proof that you did actually make the
payment.  The IRS may want to see a cancelled check or receipt.
On the bright side, if you do get audited, a computer printout of
your bookkeeping will impress the IRS more then just a pile of
canceled checks and receipts.


                  COMPARING YOUR BANK STATEMENT

     This program will continuously balance one or two checking
accounts.  Your Bank Balances could be off for several reasons:

1. You could have written a check, then forgotten to enter it into
the computer.

2. You could have entered the wrong amount into the computer.

3. You could have entered a check as paid on bank one instead of
bank two or vice versa.

4. This program could have made a mistake.  If you think this
program made a mistake see the chapter Double-Checking Sums.

5. The bank's program could have made a mistake. This is very
unlikely since when banks make a mistake in the customer's favor
the customer may or may not give the money back.  Banks have a
very strong incentive to make sure their programs work.

6. A bank clerk could have entered the wrong amount of the check.
The bank clerks, who type in the dollar amounts of each check are
only human and they make a mistakes on one of every several
thousand checks.

     When your bank makes adjustments to your account such as
when a customer's check bounces, it is important to enter the
transaction right away as a transaction so that your bank
balances are up to date.  Your bank will usually send you a
computer generated "debit charge" and the bad check the same day.
Assuming you are using a local bank, you should receive the notice
within one, two, or three days.  It is important that you enter
these charges in the same month they happen, or reconciling your
bank account will be complicated by the fact that on Jan 30 the
bank reduced your account by $200 to cover a bad check but because
you did not receive notice until February 1st this program
thinks the amount was reduced in February.  Watch out for this if
your account does not balance.

     You can compare your checking account using using the B
option on the main program.  The computer will ask you to enter
the  month of the statement and the last day of the statement.
Most bank statements are for the entire month.  The computer will
also ask you to enter the bank balance.  The program assumes
the bank gives you your interest or service charge on the next
day.  Some banks give interest on the last day of the month;
others hold onto the money for an extra day and give it on the
first day of the month. (After all, you haven't earned a months
interest until the month is over!) If your bank statement has an
interest earned or service charge on the last day as the last
entry, USE THE BANK BALANCE RIGHT BEFORE THE INTEREST EARNED OR
SERVICE CHARGE.

     You must have your printer turned on to balance your
checkbook.  The computer will run through all the checks that
have not cleared in the previous months.  For each check the
computer will ask you if the check has cleared. If the check has
not cleared, the computer will print the check description on
paper.  If the bank account is used for payroll, the program will
do the same for the payroll checks.  The computer will also
figure out the checks and deposits made after the last day of the
statement.
     If you get your checks back from your bank you can put the
checks in one pile.  When the computer asks you if the check has
cleared physically, move the cleared check to a second cleared
pile.  When the computer is done asking you if each check has
cleared all the checks should be in the cleared pile.  If you
have a check that the computer did not ask you about, you probably
forgot to enter that check in the computer system or else you
mistakenly changed the clear flag to clear.   If you have a check
the computer did not ask you about go back and look at the
transaction file to see if you entered the check in the computer
system in the first place.
     You should also make sure that the dollar amount of the
check and the dollar amount on the computer are the same.
     If you enter Y for yes the check has cleared, the computer
will change the check cleared flag in the transaction file; or if
the check is a payroll check, it will change its check number to
the negative of the check number.
     Using a fiscal year other then a calendar year will cause
you a few problems when comparing your bank statement.  The
compare program is designed to handle months of increasing
number.  In the calendar year, months run from 1 to 12.  If you
are using a fiscal year from July to June the months run
from 7 to 12 then from 1 to 6.  If you are using a fiscal year,
once the calendar year changes to January you have to use
the optional method below.
     If you do not use the correct date when entering transactions,
the compare statement will not work properly.  For example, if you
mistakenly enter February 2 transactions with the date January 2
the computer will think the transactions are in January not
February.  If you mistakenly enter transactions with the wrong
date, you can change the date with the change option or use
the optional method below.

            Optional Comparing Bank Statement Method

     If some of your transactions are improperly entered in the
wrong months, you can use this optional method to compare your
bank statement.  Use the B - Compare Bank Statement option.
Use December 31 as the end of Statement Date.  The program
will print out all uncashed checks.  You will have to manually
add all the deposits you made after the statement date.

     Bank Statement Balance
   + Deposits Made after Statement Date
   - All Uncashed checks, Payroll and Transactions
 ---------------------------------------------------
Correct Bank Balance (Should equal current balance on computer.)

                 PRINTING 1099 AND W2 TAX FORMS

     At the end of the year, you need to print 1099 and W2 tax
forms.  You can get the forms free from the IRS.  The forms the
IRS gives you are sheets of 3 on a page, and you have to supply
your own carbon paper.  Feeding and aligning the individual
sheets the IRS gives you plus the carbon paper is a bit of
trouble.  You can order continuous W2 and 1099 forms from a
business forms printer or computer supply house.  Currently the
W2 tax forms sell for $15.95 for 50 or $21.50 for 100.  The forms
are available from NEBS Computer Forms (phone [phone]) if
they are not available locally. The forms are 4 part carbonless
and continuous like continuous computer paper, so all you have to
do is align the first form then print the rest.  It's a question
if you want to spend the money for good continuous tax forms or
suffer with the free IRS tax forms.  If you only have less then
10 employees or less then 10 contractors, you might survive using
the free forms the IRS gives you.
     Print the W2 tax forms using the W2 option on the PAY program.
If you have several thousand entries it may take a few minutes
for the computer to add them up.  If you have more then 41 employees
you have to print subtotal W2 forms after the the 41st and 82nd
employee.  The subtotal form must be on the last form of three
on a form.
     If you make a mistake and print the wrong employee or print a
badly misaligned form, you can put a big X in the void box and
reprint the information on the next form.
     As an employee you are probably used to seeing just your own
W2 form which is one third of a page.  As an employer the IRS
wants the W2 forms three on a page.  The first copy of the forms
which go to the IRS does not have any perforations on the first
page.  This is because you are not supposed to separate the first
page into thirds.

                         1099 TAX FORMS

     The 1099 tax forms are printed using the Main Program.
First you must use option A - Total the Contractors.  This reads
each record in the transaction file, and if a contractor is stated
it adds it up and stores the result in the Contractor File.  Then
use option B - Print 1099 forms.

                            INVENTORY
     There is a very simple end of year inventory calculation in
the secondary program.  This inventory program lets you enter:

Description of Inventory Item - Name
Number in Stock
Individual Cost
Total Cost - equals number in stock times individual cost

     You could do this on paper, but it may be more convenient to do
it on the computer.  The value of your ending inventory is used to
determine the cost of goods sold.  You need to take a physical
count of your inventory at the end of year.  The difficult task is
determining the cost of each item.
     Choosing a method of inventory valuation is not something you
should take lightly if your inventory is large, so your accountant
should advise you on which inventory method to use.
     Some of the most popular inventory valuations methods are:

First In First Out
Last In Last Out
Gross Margin
Lower of Cost or Market

     The main problem is that you may have purchased the same
item at different prices.  For example, we used to pay $1.14 for
disks in January.  By December disks cost 80 cents.  We had 1000
disks in stock at the end of the year.  Are they worth 80 cents
or $1.14 each ?  How would it affect our taxes?
     Manufacturers have even a more difficult time determining costs.
We manufacture software.  By the time we copy the software, put
the label on, and package it how much is that one disk package
worth?  Manufacturer's Indirect Overhead Costs must also included
in the cost.

                             CAR LOG

     If you use your own car or have a business car you can use
this carlog to document your business mileage for the IRS.  The
IRS tried to make people keep a carlog in their car and write the
beginning mileage, ending mileage, destination and business
discussed at each stop.  Fortunately people complained so much to
their congressmen that the law was changed.  You still have to
document business use of your car but you can write your entries
whenever you want to and you don't have to keep odometer readings
at each stop.
     You do not have to use this car log.  You can continue using
a notebook car log if you prefer to.  But you may find it
convenient to enter your business car use at the same time you are
entering your accounting data.
     You should just enter your business trips in the car log.
Do not enter personal trips

                         PRINTING CHECKS

     You can either continue writing your checks by hand or you
can let the computer print your checks.  You can print some of
your checks using the computer and some of them by hand if you
are in a rush.  Printing a check does not change any of the
information in either the transaction or paycheck file.
     If you want to use the computer to print your checks this
program uses Multi-Purpose top blank checks, one of the most
popular computer checks.  The check should measure 9 1/2 by
7 inches overall, 8 1/2 by 7 detached (when the paper strips
with the holes on the side are taken off).  The actual check is
1/2 the size or 8 1/2 by 3 1/2.  The top part is blank with the
company name on top.  You can print a "check" on regular paper to
see how it should look.  You should be able to obtain computer
checks from your bank which will probably charge you about 5 to
7 cents per check.  The check number is MPC 302 if your bank
orders its checks from RUDCO Check Company.
      When printing checks, you have the option of changing the
check number.  You may find it convenient to just enter check
number one when entering transactions then enter the actual
check number when printing the check because you may not be sure
which check number the check will end up on until you print it.
     When printing transaction checks, the computer will ask you
for an address.  You can print the address of the recipient
below his name.  Then you can use those envelopes with windows
so you don't have to type their name and address on the envelope.
If you don't want to print their address, just press return.
     The computer uses the same multipurpose check for payroll.
We have not used one of those specialized payroll checks so you
can use the same checking account for both payroll and other
expenses.  Also it is easier to align the top blank checks then
specialized payroll checks with small boxes for each deduction.

                  INCOME TAX FORMS, SCHEDULE C

     One of the biggest advantages to using this system is that
at the end of the year you do not have to go through all the
thousands of checks and receipts, put them in different
categories and spend hours adding them up.  With this program all
you have to do is scan all the transactions then print the
subtotals of each class out at the end of the year.
     During the year you may have put some transactions into a
"suspense" classification which means you weren't sure what class
to put them in.  At the end of the year you need to decide which
class to put each transaction in.
     For example, if you purchase a $89 book case and at the time
weren't sure if you should classify it as an office expense or as
an asset purchase you can put it in the suspense class.  At the
end of the year you have to decide whether to deduct it as an office
expense or a capital asset.  At the end of year change the class to
either office expense or asset purchase using the change option.
     If the problem is deciding between two deduction classes such
as advertising expense or office expense, the decision is not
important since both are directly deductible from your income.  If
the problem is deciding between an asset or cost of goods sold or
a deduction, the decision is important and does affect your taxes.
     The classes of transactions were set up initially for the
Schedule C, most partnerships and most corporations.  If you are
a farmer or most of your income comes from rental properties, then
the classes of transactions should be changed to the categories
on the different tax forms required.  You can change classes and
the screen using the secondary program.
     The print subtotal option will print out a simple income
statement.  It will subtotal all classes, add all the revenue
classes for total revenue, add all the expense classes for
total expenses, subtract revenue - expense yielding income
(or loss).  Remember at the end of year you have to figure your
cost of goods sold and depreciation expense and include them
in your income statement.  You can enter a non-bank transaction
at the end of the year for both cost of goods sold and
depreciation so that all of your transactions will be on the
computer, or you could just add them up on your tax forms.

                      MULTIPLE TRANSACTIONS

     Most checks that you write are a single transaction for a
single item.  Most checks will be clearly for a single purpose.
     Deposits are different.  Your deposit may contain $1200 of
sales and $60 dollars of sales tax collected.  You can enter the
transaction one of two ways you can either enter :

     Sales with a $1200 Deposit and
     Sales tax with a $60 Deposit

                   OR

     Sales with $1200 NON BANK TRANSACTION  and
     Sales tax with $60 NON BANK TRANSACTION  and
     "OTHER CLASS" with a $1200 Deposit

     The "Other" class is a class for dummy transactions.  The
first method is the easiest to enter since it requires only two
entries.  However if you add the two deposits incorrectly, your
bank balance could be off.  For example, if you mistakenly enter
$50 as the sales tax the mistake is harder to catch. The second
method takes an extra entry but eliminates the danger that the
deposit could be incorrectly added.

                 GROSS PAY AND QUARTERLY REPORTS

     For payroll reporting purposes, most states now accept a copy
of the federal W2 forms.  The quarterly state reports are in most
cases similar to federal 941 quarterly reports.  You can get most
of the information needed for the 941 quarterly report by
scanning all paychecks for the quarter and printing out the
subtotals. However, many states still require you to file
quarterly reports showing the quarterly pay for each employee.
     For example, suppose your state requires you to fill out an
unemployment tax form that requires you to list each employee, the
employee's pay this quarter, the pay under the $6,000
unemployment tax limit, and pay over the $6,000 unemployment tax
limit.  The -3 gross pay report option will produce this information
for you.  After you produce this report, you should then move the
current gross pay to the Last Gross Pay file using the -2 Quarter
Option.  You should make a backup copy of your disks at the end of
each quarter and save them.
     The LASTGROS file contains the gross pay for each employee
at the end of the last quarter or 0 if it is the beginning of the
year.  The GROSSPAY file contains the gross pay of each employee.
The difference between the two is the amount earned this quarter.
Subtracting will yield the pay over $6,000 and under $6,000 or
what ever number your state requires.
     If your state does not require quarterly reporting of pay for
each employee, you do not have to bother updating the LASTGROS
file each quarter.



                         SCANNING FILES

     Your records are stored in files just as they would be if
they were  entered in a ledger book sequentially.  Because these
records are computerized, you can read the files selectively
reading only the records you want.  For example, you can scan all
transactions with a class of adverting.  You can view them on the
screen or print them out on paper.  You can get subtotals on most
scans.  This is one of the advantages of a computerized
accounting system.

                    PAYCHECK CONDENSED FORMAT
     The scan option will produce a condensed format containing
three lines.  The first line contains :
Date
Employee Name
Hours Worked
Wage Rate
Tips
Gross Pay
     The second line contains :
Federal Withholding
State Withholding
Local Withholding
Social Security
Other Withholding 1
Other Withholding 2
Paycheck
     The third line contains :
Federal Unemployment
State Unemployment
Employers Social Security
Other Tax 1
Other Tax 2
Earned Income Credit


                       PROGRAM ACCURACIES

     Because this is an accounting program, we have designed this
program using a very conservative save program design to minimize
errors.  No running totals are kept.  The main danger of running
totals is that if the computer crashes due to a power failure or
program failure the running total may not be correct.  No
indexing is used.  All the files are flat files which cannot be
mixed up due to bad indexing.  However, the disadvantages to using
these safe programming techniques are the the program may not be as
fast as it could be. However, we feel that the advantage of having
a safe design outweighs a few seconds of added speed.
     If your computer crashes due to a power outage, the last few
records you entered that were not saved on disk may have been
lost.  You just have to reenter them when the power comes back
on.  Just because you have printed a check does not mean the
transaction was saved on disk.   The program saves the
transactions on disk about every 5 to 8 transactions.  We could
have forced the program to save every transaction on disk right
away, but the half second delay while the disk writes would get
annoying.
     Almost the worst thing that could happen is that data on
a disk could become damaged and not readable due to a bad disk or
disk head crash.  Then you will have to reenter all the data you
entered that day.  So always make back up copies!
     The bank account balances are stored in the transaction
file.  They are updated each transaction.
     You may also wonder why we did use the "fill in the blank"
method of entering data where all the information is displaced on
the screen and you just move the cursor to the spot to type over
and change the information.  The problem with the fill in the
blank method is that if you hit the wrong key and fail to notice
it you will change your entry.  In word processing if you
accidentally delete a letter by hitting the delete key instead of
the down arrow your word is spelled wrong.  In accounting if
you accidentally delete a number a $200.00 check becomes $20.00 or
employee 15 becomes employee 5 or an expense may become a
revenue thus the fill in the blank method is not safe enough for
accounting.

                      DOUBLE-CHECKING SUMS

     The bank balance can be checked by scanning transactions on
just one bank.  The "Print Subtotal" option will display total
deposits, total withdrawals, and the difference, which should equal
the bank balance.
     The 1099 form total payments can be checked by scanning the
transactions on one contractor.
     The W2 forms can be checked by scanning the paycheck file on
the employee and comparing the subtotals to the W2 form.
     The gross pay and tax liabilities can also be checked by
scanning the payroll file.
     You can also check any of the sums by printing the transactions
or paychecks on paper and add them up with a calculator.

                            NEW YEAR

     At the start of a new year you should start a new TRANSACT,
PAYCK and CARLOG file.  You should keep your old disks for your
records.  You have to initialize the bank accounts with the first
entries in the transaction file.  You use a new INVENTOR (inventory)
file each year for the end of year inventory.
     With the start of the new year, you can eliminate employees
from the employee file by changing there name to "empty" and their
salary to 0.  You can later assign a new employee to the old
employee number.  If an employee has quit, keep his or her name in
the employee file until the end of year so you can print a W2 form.
     When balancing your checking account for January you may
have a few checks from last December that have not cleared.
You should take the paper printout produced by balancing the
December statement and make sure all the checks from last year have
cleared by checking them off against the paper printout.  If not
all of the checks from last year have cleared, then the compare
bank option will be off by last years check(s) not cleared.

                          BANK ACCOUNTS

     This program is designed to balance one or two checking
accounts.  The bank accounts are number one and number two.  You
change the names of the bank accounts using the secondary
program.
     You can only use one bank account for your payroll program,
so use either bank number one or bank number two.  If you write
payroll checks using both bank accounts the computer will not be
able to compare your bank statement.

                         PROGRAM LIMITS

99 - classes of transactions
99 - employees  for the entire year - Watch out if your employee
                                      turnover is very high
16 - tax tables with up to 15 row each
2  - bank accounts   - only 1 may be used for payroll
99 - contractors
Number of transactions, paychecks, car log entries and inventory
entries are limited by disk space available.

                         FILE MANAGEMENT

     TRANSACT - The transaction file.  Each entry takes up 80
bytes.  On a 360K disk you can get 4,500 transaction on the disk.
On a hard disk you limited only by its size. If you are using a
floppy disk based system, you can only enter 4,500 transactions
for the year before running out of disk space.  If you have to
use two floppy disks you will have to add the totals from the two
disks together manually.  The system is not designed to use over
4,500 transactions on a floppy based system.  The 4500 limit does
not include the payroll entries.  You can have 4500 transactions
plus 2800 payroll entries on a floppy based system.
     PAYCK - The Paycheck file.  Each entry takes up 128 bytes.
On a 360 K disk you can get 2800 payroll entries on a floppy
disk.

     If you expect to make only a few entries, you can keep all the
data files on one disk.  If you expect to make a large number of
entries, you can keep the PAYCK file on one disk, the TRANSACT
file on another disk, and the other data files on a third disk.
You can always start out with all the files on one disk. Then
if they fill up the disk, you can copy the PAYCK and/or TRANSACT
file to a different diskette.
     You should transfer the three programs to a second disk
since the three programs take up 260K of disk space.  You may
want to copy the programs to a system disk which has your disk
operating system on it so that you can boot up directly from the
program disk.  You should delete the manual file MAN from your
working disks.
     If you are using a floppy disk based system you can use up to
four diskettes: one diskette containing the programs; a second
diskette containing the TRANSACT file; a third diskette containing
the PAYCK file; and a fourth diskette containing all the other
files.  Using more then four diskettes is not advisable.  We suggest
keeping the data disk in the default disk drive almost all of the
time.  If you are using a separate disk for either the Transact or
Paycheck File, use them in drive B.

     If you are using a hard disk based system just have all the
files on one subdirectory.

                     STARTING YOUR OWN FILES

     You should first try running the programs with the sample
data we have provided.  This gives you the opportunity to experiment
with the programs without changing your own data.  Once you are
familiar with the programs, you should then start entering your
own information.  You can delete the following files using the
DOS command DEL. (Make sure you have a backup copy)

  TRANSACT
  PAYCK
  CARLOG
  INVENTOR
  EMPLOYEE
  CONTRACT

    Then you can start your own files from scratch.  You should
not delete the CLASS, BANK, COMPANY, TAXTBL, GROSS or LASTGROSS
files.  You can change the CLASS, BANK, COMPANY, and TAXTBL files
using the Secondary Program.  You can change the GROSS and
LASTGROSS files using the pay program.
     You need to:
1. Enter your tax tables using the Secondary Program
    Tax Tables must be entered before Employees, because the
    Employees are assigned to the Tax Tables
2. Enter your Employee information using the secondary program.
3. Enter Contractor information
4. Enter your Company Name using the Secondary program
5. Enter your Bank names using the Secondary program
6. Change the Classes of Transaction if you want to.
7. Change the Screens if you want to.
8. Set Grosspay and Tax Liabilities to zero using the Pay Program
9. Set the Last Gross pay file to zero using the Pay Program.
     Use the -2 Quarter Option
10. Initialize your Bank Account balances in the Transaction File
by entering for the first transactions a deposit in the amount of
the bank account balance.
     You do not have to do the above in any specific order.  If
you are not using the payroll program or do not expect to have
any contractors, you do not have to initialize their files.

               STARTING IN THE MIDDLE OF THE YEAR

    If you are starting to use the program in the middle of the
your business year, you can either enter all your back
transactions into the system OR at the end of the year manually
add the totals from both this program any whatever system you
were using before.
      The problems with starting in the middle of the year occur
at the end of the year when you have to fill out tax forms
for the entire year and only part of the year is on the computer.
      For example, if you were keeping records by hand from
January to June and used this system from July to August, you
could add up all your sales from January to June, then add them to
the total sales from the computer.  If you want to use our system
to print the W2 forms, you would need to enter a "paycheck" for
each employee containing the sum of his pay and taxes withheld
from January to June that are not on the system. If you wanted
to use the system to print 1099 tax forms, you can enter the
total paid each contractor manually using the Secondary Program
instead of letting the computer compute it.

                             ERRORS

     If there are any errors in the program the computer will
print an error message looking like :

                  ERROR DISK FULL on line 21400
             ***** Press any key to continue ******

     Some errors are correctable.  For example, replace the full
disk with an empty disk, then press "any key to continue".  The
computer will take you back to the main menu where you can try
the operation again.
     If you run into any problems that you think are errors in
the program, please call or write to us.  We learn from and value
customer's suggestions.
     A device not available error means either that your printer
is not on line or that your disk drive is not closed.
     If your printer is not turned on or a disk drive is not
closed, the program will wait for about 20 seconds before giving
you the error message.  If the program appears to stop just
before it should be printing on paper make sure your printer is
turned on AND on line.

                   BUSINESS INCOME TAX BASICS

     One of the main reasons you are keeping records is probably
that the IRS requires you to.  It helps if you know the basics of
business accounting.  The IRS gives away dozens of different
publications on taxes.  You can call you local IRS office and get
a copy of Publications 334 "Tax Guide for Small Business" which
is a 184 page book that contains useful tax information.

                   PROFIT = REVENUE - EXPENSES

     Revenue is your sales.  In your record keeping it is
important to distinguish revenue or sales from other money coming
in.  Not all money coming in is revenue.  Your initial investment
is not revenue.  Borrowing money from a bank is not revenue.  If
your brother repays a loan to you, that is not revenue.  A sale of
a capital asset is a capital gain (or loss), not revenue.

TOTAL EXPENSES =  DEDUCTIONS + COST OF GOODS SOLD + DEPRECIATION

     All expenses must be "ordinary and necessary" to be
deductible.  There are no firm rules telling you what you can and
cannot deduct.  People are tempted to deduct personal expenses
to lower there taxes.  For example, one tax accountant tried to
deduct the costs of his yacht as an advertising expense because
he flew a 12 inch flag on it with his name on it.  He never
obtained a client from this "advertisement", nor did he probably
expect to.  He barely escaped jail.  On the other had our local
boat dealer runs his sailboat in races.  He uses the opportunity
to meet other sailing enthusiasts.  He has made more money from
resulting sales then the cost of the boat.  Therefore, a sailboat
to run in races is a legitimate business expense for him.  The
point is there is no firm rule starting "No you can not deduct a
sailboat" or "Yes you can deduct a sailboat" because there are
many different situations.  If you reasonably expect to make more
money from your expense then its cost, then it is a reasonable
business expense.  On transactions such as deducting home office
expenses, luxury cars, vacations, or expensive meals which could be
considered personal expenses, the IRS has developed rules for
these situation which you should check.

     There are three kinds of expenses.  Deductions are deducted
directly from your gross income. Examples of deductions are
advertising, car expenses, insurance, and administrative wages.
Deductions are all the expenses that are not in the cost of goods
sold or depreciation.
     Cost of Goods Sold is also deducted from your gross income.
However, cost of goods sold is complicated by the fact that you
have an inventory at the beginning and end of year.  You must
keep your cost of goods sold separate from other deductions.
If you are a small service business, you may not have any
inventory or cost of goods sold.

     Inventory at beginning of year
   + Purchases of Inventory Items
   - Items withdrawn for personal use
   + Cost of Manufacturing Labor
   + Other Manufacturing Costs
   + Material and Supplies used in manufacturing
   - Inventory at End of year
  ----------------------------------------------
     Cost of Goods Sold

     If you are not a manufacturer you should not have any labor
or material and supplies in the cost of goods sold.  If you are
not a manufacturer, then figuring the cost of goods sold is
relatively easy.  Your inventory purchases are the the only item
you have to keep track of.
     If you are a manufacturer, you have more problems determining
what goes into cost of goods sold.  Manufacturing labor goes into
the cost of goods sold.  If an employee works partly on
manufacturing and partly on sales, you have to allocate his labor
costs between the two.  You also have to allocate overhead
expenses such as rent, heat, insurance, depreciation, supervision
cost, and other costs to cost of goods sold.  Manufactures will
also have a more difficult time determining the cost of inventory.
     For example, if you are a sailboat retailer for one sailboat
the inventory value is the cost you paid to the manufacturer.
However, if you are the sailboat manufacturer and have that same
boat in inventory, you have to figure the cost of raw materials +
assembly labor + allocated rent + allocated other expenses.  The
main thing the IRS is worried about is that you don't say at the
end of the year that the sailboat is worth only $120 which is the
cost of raw materials, when it actually cost you $500 to make
once you add the cost of labor, rent etc.
     Manufacturers should note that it does not affect your income
or taxes whether you deduct indirect cost as a deduction or in the
cost of goods sold.  The factor that affects your income tax is
how you value your inventory at the end of year.

                      DEPRECIATION EXPENSE

     If you purchase any business assets (except inventory items)
with a life of more then a year, then you cannot deduct the cost
of the asset all in one year because you are going to be using the
asset for several years (Except for Section 179 Depreciation).
You have to allocate the cost of the asset over several years.
In using the program, you should enter all assets you purchase
into the class "Asset Purchase".  At the end of the year, you need
estimate the depreciation for each asset.  Depreciation is rather
complicated, and the results greatly affect your taxes.  If you
are not familiar with depreciation, you should let your accountant
advise you on which depreciation method to use.
     The secondary program will calculate depreciation and
the investment tax credit for you.  This program only does the
numerical calculations.  It will not tell you which method is
best for you.  Your state probably has different depreciation
requirements then the Federal Government.  Most states tax
business property.  The higher the value of the property the more
money the state raises in taxes.  Therefore, most states only
allow straight line depreciation or a fixed percentage deduction
each year.  You may need to keep two depreciation methods for all
your assets.  You will probably use the ACR for your Federal
taxes and straight line for your state.  Use the depreciation
calculations to print the both depreciation schedules for each
asset on one sheet of paper.  Then keep that page and the pages for
all your assets together.  You will need them in future years
because depreciation covers several years. (Don't Lose Them)

                             PROMPTS

     Y/N - The Y/N prompt stands for Yes or No.  Press either
capital Y or small y for yes.  Press either capital N or small n
for no.
     The "PRESS ANY KEY TO CONTINUE" prompt occurs after an
instruction for you do to do something such as turn your printer
on.  Obviously, all you have to do is press any key to continue.
     It is not advisable to randomly tap on the keyboard while
the program is running.
     The letter prompts give you a series of letters to chose
from.  Just press the letter of the option you want to use.  The
default value is 0 if just return is pressed.
     The data entry prompts look like :
>__< or
>_______< or
>_________________________<
     If a number is requested the computer will not accept any
letters.  For numbers you may enter 1,2,3,4,5,6,7,8,9,0,-,+,$,.,
,,, or %.  If an integer number is requested the computer will
not accept the decimal point entry.  If a number is outside its
range the computer will ask for another number by repeating its
prompt.  For example if you ask to see employee number 25 and
there are only 20 employee the computer will ask again for the
employee number.
                         Entry Controls
RETURN : Press return when you are done with the entry
CONTROL-Q OR BACKSPACE  : Moves the cursor back and erases the
                          last character
CONTROL-D OR RIGHT ARROW: Moves the cursor right
CONTROL-S OR LEFT ARROW : Moves the cursor left
CONTROL-F OR INSERT     : Inserts a space where the cursor is
CONTROL-A OR DELETE     : Deletes a character or space where the
                          cursor is
     This is one of the areas of incompatibility between
computers, so not all of the above entry controls may work on
different computers.
     Some of the menus may give you use a negative number for an
option.  For example :

Enter the Employe Number or 0 to return or -1 to print on paper

     Enter -1 if you want to print on paper.

                        FILE EXPLANATION

     Most of your data is stored in random access files.  A file
contains records.  Each record contains information stored in
different fields.  A simple example of the CARLOG file is shown
below :

FILE : CARLOG
RECORD #1
   FIELD #1
      FIELD NAME: Destination
      ENTRY     : Post Office
   FIELD #2
      FIELD NAME: Mileage
      ENTRY     : 5
RECORD #2
   FIELD #1
      FIELD NAME: Destination
      ENTRY     : Computer Store
   FIELD #2
      FIELD NAME: Mileage
      ENTRY     : 10
RECORD #3
   FIELD #1
      FIELD NAME: Destination
      ENTRY     : Computer Club Meeting
   FIELD #2
      FIELD NAME: Mileage
      ENTRY     : 31

     A file may contain any number of records up to the storage
limits of the disks.  Each record contains the same number and
type of fields.  Your information is stored in a field which is
part of a record.  All the records make up the entire file.

                    DISCLAIMER OF WARRANTIES

     Before ordering updates read this disclaimer of warranties
and license agreement.  If you do not agree with all of the
conditions then because of potential liability problems we
cannot license you to use this program.

Note: This is almost the same agreement you get with any program
you purchase from IBM, Microsoft or any other software firm.

PPE Inc. licenses this program solely on an "as is" basis.

PPE Inc. shall have no liability or responsibility to Licensee or
any other person or entity with respect to any liability, loss or
damage caused or alleged to be caused directly or indirectly by
this product, including but not limited to interruption of
services, loss of business or anticipatory profits or consequential
damages resulting from the use or operation of this program.

PPE Inc. make no warranties, either express or implied regarding
this program, its merchantability and/or its fitness for a
particular purpose.  Licensee agrees that PPE shall not be held
liable for any consequential damages, even if PPE has been
advised of the possibility of such damages.

It is entirely the responsibility of the user to check the
results of the program and design a temporary accounting system
for use if your computer breaks down.

                       LICENSE AGREEMENT
     The programs and manual are copyrighted by PPE Inc.  The
program is not sold it is licensed under the following
conditions :
     1. You may make as many backup copies of the program as you
want.
     2.  The $49 license fee entitles you to use the program on
multiple computers.
     3.  You can use the program for free for a short period of
time to evaluate its usefulness.
     4.  You can give away copies of the program to other people
to evaluate for their own use.
     5.  Computer dealers can sell copies of the program or give
it away to their customers as long as they sell it for not over $7
for the one disk. (We don't want people paying $50 or $75 for a
copy of the program.)
     6.  This software may be placed on bulletin boards.
     7.  Individuals (not business) may use this program for
balancing a non business checking account for free.

                    UPDATE AND SERVICE POLICY

     Accounting Programs are different from other programs in
that due to changes in tax rates and tax laws you need a new
program almost every year, especially if you are using it for
payroll.  You can keep using the same word processor for the rest
of your life.  Next year the IRS will probably change the W2
Forms or the 1099 Forms, or a change in the tax law will make all
1986 accounting programs obsolete in 1987.
     Unfortunately, many people have spent hundreds of dollars on
accounting software only to discover that they have to spend one
or two hundred dollars more every year for updates  and/or
support.  Even with DAC-ACCOUNTING and DAC-PAYROLL, the most
reasonable accounting package available, they want you to pay $50
per year per package for support plus $22.50 for each payroll
update and $7.50 for each accounting update.  You have to pay $50
per package just to have the right to call for support and
receive notice of the updates.  You have to spend $100 for
support even if you may not use it, but like most people you are
probably going to spend the hundred dollars just in case a problem
comes up and you need help.  So even though their original cost
is $69 for DAC-ACCOUNTING and $49 for DAC-PAYROLL, you could end up
paying over $150 each year for support and updates.
     We charge only $20 for updates.  If you pay the $49 registration
fee you will receive notices of major updates.  If we find a
major bug we send the update to registered users for free.
We also charge $5.00 per phone call of less then ten minutes and
$5.00 for every ten minutes thereafter.  You have to be a
registered user to call for support unless you just received the
program and are still evaluating it.  There is no charge for support
if you are calling concerning a bug in the program.
     We are not Certified Public Accountants nor tax layers and are
not qualified to answer questions concerning tax laws.
       The new updates each year might contain the W2 tax forms,
1099 tax forms and a new payroll calculation if the tax laws
change.  Updates may be sent to correct a bug or error in the
program.  If you have used any other software you know that
bugs in software are a fact of life.  Lotus 123, Dbase II and
even IBM's DOS are infamous for their bugs.  While it is
theoretically possible to design a perfect bugless program, it is
also theoretically possible to design a car to last a lifetime or
have a completely fair government but don't expect to see one.
Most of the bugs are relatively minor and rarely happen.  You should
become a registered user so you can get the most debuged program
we have.  Bugs in accounting software can cause greater problems
the bugs in other kinds of software.

     We may be adding new features to make the program easier to
use and more powerful.

                     PC ACCOUNTING II

     We also have a larger double-entry accounting system for
larger businesses.  It requires a hard disk.  PC Accounting II
contains Journals, Ledgers, Accounts Receivable, Accounts
Payable, Payroll, and Running Inventory.  The Payroll and the
Secondary programs are the same for PC Accounting I and II.
PC Accounting II is designed for medium size businesses.  If
you obtained this program on two disks you probably have a
copy of PC Accounting II on the second disk.  You may obtain
a copy of PC accounting from us for $7.

                   USER SUPPORTED SOFTWARE

     This software is distributed as a "user-supported program"
also know as "Freeware".  User-supported programs are copyrighted
and the author requests a registration fee or donation for the
program.  The authors of user-supported programs allow users
to make copies and share them with others with the request that
satisfied users send them a donation.

     The advantages to user-supported software are:

1. You can try the program before you pay for it.
     No program can please everyone.

2. You can't get stuck with an expensive program you can't use.

3. The cost is lower because you are not paying for advertising,
     distributor markup and retailer markup.

     If you decide to use this program please send us the $49
registration fee.  If you use this program you are legally
and morally obligated to pay for it.

     If you send us the registration fee you will receive:

1. The source code for the programs in basic.

2. The latest version of this program.  You may have an old
      version.

3. Notice of all updates.







                     REGISTRATION ORDER FORM

Please add me to your list of registered users.  Send me the
source code and the latest version of the program.  Enclosed
is a check for $49.  I have read and agree to the license
agreement and disclaimer of warranties.

Your Name __________________________________

Your Address _______________________________

             _______________________________

             _______________________________

The programs are only available on 360K DSDD disks.

Optional: Send the 10 disk package mentioned below $32  Yes / No

All programs require an IBM PC or Compatible with 192K

Mail To : PPE Inc.
          Box 2027
          Gaithersburg, MD 20879


Phone [phone]



























                     OTHER SOFTWARE FROM PPE
     If you liked our accounting program try some of our other
programs.  You can receive all of the below programs on 10
diskettes for only $32.  No other "donation" or registration
fee is required for the below programs.

                     Database Management System
* Report Generator       * Sorts on 3 fields
* Global Field Changes   * Relational
* Written in Basic for easy Modification
* 3 files open simultaneously  * Transfer Data between files
* 14 Ways to calculate fields  * Global Field Changes
* Customizable Screens          * Retrieve on Conditions
* Not recommended for computer novices
* Requires IBM or Microsoft Basic

                           Spreadsheet
* 21 ways to calculate numbers or write your own subroutine
* Source Code given            * Full cursor control
* Automatic Recalculation
* Numbers and Text may be placed anywhere on the screen

                 Expert System Inference Engine
* Design your own expert system  * Diagnoses Multiple Solutions
* Assign probability with rules  * Detects Contradictory Evidence
* Explanation of Reasoning * Accepts unknown input
* Intelligent Search Pattern with Manual Override
* Logic Path through subcategories shown

                        Decision Support
* Helps you make better decisions faster
* Your decisions look and are well thought out
* Makes decision making easier like word processing make typing
easier    * Brainstorming Techniques  * 96 page printed manual

                  Near Typeset Quality Printing
* Requires a letter quality printer with Diablo 630 escape codes
and Wordstar  * Variable letter spacing
* Individual letter spacing with 8,000 combination look up table
* Right justification  * Micro Centering
* See the insert that tells how to print the manual for a sample
  of the typesetting program's type.

Plus 7500 word Vocabulary Builder, Typing Teacher,and Math
Teacher
* Most of the Manuals are on Diskette

Trademarks : The following names contained in the manual are
trademarks of their manufacturers:  PC Accounting, IBM, Microsoft
DAC, Dome Accounting, Lotus, Dbase