Financial Management

The Financial Management module in Softhash helps you seamlessly manage your business's finances, from accounting and invoicing to financial reporting. This guide will walk you through the setup and core functionalities to get the most out of the module.

1. Accounting Overview

1.1 Accounts

The Chart of Accounts organizes all of your company’s accounts, providing a framework for tracking transactions.

  • Accessing the Chart of Accounts: Go to Financial Management > Accounts.
  • Adding Accounts:
    1. Click New Account and select the account type (e.g., Assets, Liabilities, Revenue, Expenses).
    2. Enter the account name and a unique code, if applicable.
    3. Save to add the account to the chart.
  • Tip: Organize your accounts according to your reporting needs. For example, group expenses by department for more detailed insights.

1.2 Transactions

Record of all financial transactions that occur within your business.

  • Viewing General Ledger: Navigate to Financial Management > Transactions.
  • Entering Manual Journal Entries:
    1. Click New Entry.
    2. Select the accounts for debit and credit entries, enter amounts, and add descriptions.
    3. Save the entry to update the ledger.
  • Automated Entries: Sales, purchases, and other financial activities can generate automated ledger entries.

1.3 Accounts Payable & Receivable

Easily manage your company’s incoming and outgoing payments.

  • Accounts Payable: Track vendor payments and due dates.
  • Accounts Receivable: Monitor customer invoices, due amounts, and payment history.

Note: Use filters to sort by due dates, amounts, or vendor/customer names for quicker access.

2. Invoicing & Payments

Efficient invoicing helps ensure timely payments and accurate records. Softhash provides a flexible invoicing system tailored for various business needs.

2.1 Creating Invoices

  1. Go to Financial Management > Invoices.
  2. Click New Invoice and fill in the following:
    • Customer Name: Choose a customer from your CRM, or add a new one.
    • Products/Services: Select items from your product list or add a custom line item.
    • Payment Terms: Define the payment due date and terms (e.g., Net 30).
  3. Add any taxes, discounts, or shipping fees.
  4. Review and Save or Send the invoice directly to the customer’s email.

2.2 Tracking Payments

Track the status of each invoice from pending to paid:

  • Viewing Payment Status: In the Invoices dashboard, see which invoices are unpaid, partially paid, or fully paid.
  • Recording Manual Payments:
    • Select an invoice and click Record Payment.
    • Enter payment details such as amount, date, and payment method.
    • Save to update the payment status.

2.3 Payment Integration

Softhash integrates with various payment gateways to facilitate online payments. To set up:

  1. Go to Settings > Integrations.
  2. Select your preferred payment provider (e.g., Stripe, PayPal).
  3. Follow the on-screen prompts to authorize and connect the account.

Note: Integrations enable customers to pay directly from their invoice, speeding up the payment process.

3. Expense Management

Track and categorize expenses to maintain accurate financial records and simplify reporting.

3.1 Adding Expenses

  1. Go to Financial Management > Expenses > New Expense.
  2. Select the expense category (e.g., Office Supplies, Travel).
  3. Enter the amount, date, vendor, and any notes.
  4. Save to record the expense.

3.2 Recurring Expenses

For regular expenses (like rent or subscriptions), set up recurring entries:

  • Click on Recurring Expenses > New Recurring Expense.
  • Define the frequency (e.g., monthly, quarterly).
  • Enter the amount, start date, and end date if applicable.

Recurring entries help reduce manual entries and ensure accuracy in expense tracking.

4. Financial Reporting

The Reporting feature within Financial Management provides insights into your business's financial health. Reports can be customized and exported for in-depth analysis.

4.1 Key Financial Reports

  • Profit & Loss Statement (P&L): Shows revenue, expenses, and net income over a specified period.
  • Balance Sheet: Provides an overview of assets, liabilities, and equity.
  • Cash Flow Statement: Tracks the flow of cash in and out of your business.

4.2 Generating Reports

  1. Go to Financial Management > Reports.
  2. Select the report type and enter your date range.
  3. Click Generate Report to view the results.
  4. Use the Filter option to narrow down data by categories, departments, or timeframes.

4.3 Custom Reports

For specific needs, create custom reports:

  • Click Custom Reports and define the report parameters, such as account types or transaction types.
  • Save custom settings for future use or export to CSV for further analysis.

Tip: Regularly reviewing financial reports helps you make data-driven business decisions.

5. Budgeting

Budgeting within Softhash lets you set financial targets and monitor your performance against these goals.

5.1 Creating Budgets

  1. Navigate to Financial Management > Budgeting > New Budget.
  2. Set a timeframe (e.g., monthly, quarterly, yearly) and assign budget amount for various categories like revenue, expenses, and capital.
  3. Save your budget to begin tracking.

5.2 Monitoring Budget Performance

  • Budget vs. Actuals: See how actual income and expenses compare to your budget.
  • Variance Analysis: Identify where spending exceeds or is below budget, allowing you to adjust as needed.

6. Tax Management

Simplify tax tracking and calculations to stay compliant with tax obligations.

6.1 Setting Up Taxes

  1. Go to Financial Management > Tax Settings.
  2. Add the tax type (e.g., VAT, Sales Tax) and define the rate.
  3. Apply tax rules to specific products or services.

6.2 Tax Reporting

Generate tax reports for filing purposes:

  • Go to Reports > Tax Reports.
  • Select the date range and tax type.
  • Generate a report that summarizes taxable sales, tax collected, and tax due.