If you did NOT purchase the SchoolLeader Accounting Package, then you can bypass this entire section 'Setting Up Accounting Rules' .
SchoolLeader provides a flexible accounting system for tracking Accounts Receivable, Accounts Payable, and General Ledger. You choose which of these accounting features you want to use without using all of them.
The SchoolLeader accounting system is based on standard accounting principles and procedures. By following the standards of a controlled accounting environment, you will effectively manage, maintain, and audit the integrity of your data. You will quickly establish an accounting 'rhythm' that represents your business processes while maintaining tight control over the information.
SchoolLeader allows for either cash or accrual based accounting methods. If you are unfamiliar with how to run your business you should consult with your accountant. There are many factors to decide BEFORE setting up and using SchoolLeader's accounting system.
One of the basic accounting concepts in SchoolLeader is that every student will be assigned one and only one Primary Guardian. The primary guardian is the person identified as being financially responsible for the student's charges. The accounting detail is managed at the primary guardian level. It is the Primary Guardian who is charged for the services NOT the student.
Even if a mom and dad are happily married, you need to identify one of the parents as the primary guardian. The primary guardian does not have to be a parent; the primary guardian can be any adult who is financially responsible for the student's account. NOTE: There are no limits to the number of moms, dads, step-parents, grandparents, and friends that can be associated with a student. However, you need to pick one of these associated guardians to be the primary guardian.
Now that you understand the term Primary Guardian, the first thing we need to do is define all of your accounting rules and definitions. These rules are grouped within each accounting subsystem:
General Ledger (G/L)
Accounts Receivable (A/R)
Accounts Payable (A/P)
You only need to define the rules for the accounting subsystems you use. Once all of the rules are defined, then they can be associated with Students, Guardians, Vendors, etc.
These are the rules and definitions governing your General Ledger (G/L) system. The G/L rules need to be defined so that SchoolLeader can accurately track and report your general ledger activity. The G/L rules we'll need to define include:
G/L Chart of Accounts
G/L Account Categories (e.g. assets, liabilities, equities, revenue, etc)
These are the rules and definitions governing your Accounts Receivable (A/R) system. There are many components of your revenue stream. These revenue items need to be defined so that SchoolLeader can accurately track and report your revenue. The A/R rules we'll need to define include:
A/R Chart of Accounts
Recurring Fees (for up to 8 different billing cycles, such as weekly, monthly, bi-weekly, every 3rd Tuesday, etc.)
Attendance Based Fees (Drop In, Early Drop Off, and Late Pickup Fees)
Late Payment Fees
Enrollment/Registration Fees
NSF Fees (bounced checks)
Activity Fees
Advance Charges Rules for Payments
Account Statement Messages
These are the rules and definitions governing your Accounts Payable (A/P) system. The A/P rules will be used to accurately track and report your expenses. The A/P rules include:
A/P Chart of Accounts
A/P Bill Schedule (e.g. Mortgage, Utilities, Supplies, etc.)
These next chapters describe how to set up your accounting rules to allow for maximum flexibility within your accounting functions. After the rules are defined and associated with Students, Guardians, Vendors, etc., we can then discuss how to 'use' the accounting functions.