Concepts

To understand how to use the Bridge SQ software it is important to understand the concepts with which the software was built. This chapter details the various concepts we have used and should point you to the information you need to understand the fundamentals.

Accounts

An Account is an entity within the software that is used to track the value of a business. Typically an account will represent a third party relationship where the value to the business changes over time. In classical book-keeping, these would be called Balance Sheet accounts. Bridge SQ supports different account types, listed below, and optimises the user interface and functionality to support the typical uses of these types of account.

Customer
The Customer account should be used to manage the relationship between your business and a third party to whom you sell goods or services.
Supplier
A Supplier account should be used to track the activity with a third pary from whom you buy goods or services.
Bank Account
A Bank Account should be used to track monies held by a third party financial institution.
Credit Card
A Credit Card account should be used to track payment cards that provide temporary credit and are then paid off by transfer of funds from a Bank Account.
Tax
Tax Accounts are used to track monies owed to (or by) Tax authorities. Typically you would use different accounts to cover different taxes, particularly if the calculation and payment regimes are different. Bridge SQ currently supports VAT, PAYE and CT tax accounts.
Tangible Asset
A Tangible Asset account is used to track the physical assets owned by the business. These accounts are used to support calculation of Corporation Tax liabilities and support Depreciation methods to represent changes of value over time.
Intangible Asset
Intangible Asset accounts are used to represent nominal value owned by the business. These typically include value including Goodwill, Patents and Brands. The accounts support Amortisation methods to calculate changes of value over time.

Categories

A Category is another kind of entity with the software that is used to categorise income and expenditure for the Organisation. In classical book-keeping these are called Profit & Loss accounts. Bridge SQ supports different types of category, listed below, and optimises the user interface and functionality to support the typical uses of these types.

Sales
A Sales Category is used to track the Net amount of goods or services sold by the Organisation.
Purchases
A Purchase Category is used to track the Net amount of goods or services bought by the Organisation directly as part of the sales to customers. Another name for Purchases is Cost of Sales which is more indicative of this requirement.
Expenses
The Expenses category should be used to track goods or service bought by the business as part of it's day-to-day operations. This typically includes Bank Charges, Insurance, Rent, Heating but will also include Wages and Office Consumables.
Other Income
The Other Income category should be used to track income received by the business that is not part of their normal business operations. A classic example of this is Bank Interest.
Other Expenses
The Other Expenses category is typically used to track expenses to the business that are outside the normal business activities. The main use of this category is to separate out Taxes that have to be paid based on the profitability of the business.

Documents

Documents are the primary mechanism by which Bridge SQ tracks an Organisation's activity. Individual documents represent individual business transactions and update the Account and Category totals to reflect the changes to the Organisations value.

Bank Receipt
A Bank Receipt is used to record monies received directly into a Banking Account. Typically this would be used to record interest received from a Bank or other financial institution.
Bank Payment
A Bank Payment is used to record monies paid out directly from a Banking Account. Typically this would be used to record non-specific tax payments.
Bank Transfer
A Bank Transfer is used to record the movement of monies from one Banking Accout to another.
Sales Invoice
A Sales Invoice is the primary document used to record the Sale of good or services by the Organisation. The Invoice records the transfer of gross value to a Customer and records the Net value against a Sales Category and if the Organisation is VAT registered the VAT account will also be updated.
Sales Receipt
A Sales Receipt records the receipt of monies from a Customer into a Bank Account.
Sales Credit
Sales Refund
Purchase Invoice
Purchase Payment
Purchase Credit
Purchase Refund
VAT Return
VAT Payment
VAT Refund