Finance Cheat Sheet
1. PRISM AND XERO
Outlined below is the relationship between Prism and Xero and where you need to input data and sync
to ensure the most efficient possible processes.
2. TIPS AND TRICKS
2.1 ADDING CREDIT VIA NEGATIVE LINE ITEMS
As an alternative to creating a credit note, you can create an expense with a negative sale value.
This will create a negative line item in Xero but should only be used when dealing with a single invoice or single horse.
When dealing with larger credit notes that will be applied across multiple invoices, a normal credit note is recommended.
Please consult your financial advisor for the best way to approach credit notes for your owners.
2.2 USING ACCOUNTS PAYABLE IN PRISM
Prism allows you to create costs that also input the costs of any expenses that you are seeking to have reimbursed, however you should discuss with your financial advisor the benefits of utilising this function.
Utilising the Costs/Payables function will create a bill against the relevant supplier when you sync to Xero, however there is the chance of doubling up and incorrect calculations if the cost input are not correct and the final invoice provided by the Supplier is different to what you have input.
As such,
we strongly recommend using Prism only for the capturing of revenue and expenses recoverable and utilising Xero for the input of invoices and bills
2.3 USING SUPPLIERS TO TRACK EXPENSES
Prism allows you to assign Suppliers to each expense to enable you to keep track of the expenses over the month and compare to invoices provided by the Supplier.
If you wish to keep track of Suppliers without the hassle of inputting a cost/Accounts Payable, then you can assign costs to Supplier, but keep the Cost and Accounts Payable fields blank.
From there, you can check Supplier expenses through Filtering in the Transaction list or via the Supplier module and clicking on the Expense sub menu.
2.4 MERGING CONTACTS IN XERO
When merging a contact in Xero, you must select the contact that does not have a contact code from the contact list and click ‘merge’.
A dialogue box will then request you to select the contact you wish to merge with (this contact should have a contact code).
See a tutorial on how to do this here:
https://central.xero.com/s/article/Merge-contacts
2.5 OVERPAYMENTS
Where you have an overpayment in Xero, you will need to mark that Overpayment in Xero and then XERO SYNC on Prism to bring the overpayment through to Prism.
Only once you have clicked the XERO SYNC will the overpayment appear in the Credit section of the Owner.
2.6 PRIZEMONEY INCLUDING GST
To distribute Prizemoney back to your Owners, you need to create a Credit Note as per the following:
- Create a new Credit Note
- Select the Horse for the Prizemoney to be credited against
- Enter the total amount of Prizemoney to be credited (inclusive GST)
- The Prizemoney will be then split amongst the Owners based on their % Split
- NB: If some Owners receive Prizemoney direct, please ensure those are marked down to 0% in the split column and Prism will adjust the apportioned amoun - For those Owners who are registered for GST, the system will calculate the additional GST amount
Ensuring Owners have the right GST Setting
To ensure those who are registered for GST have the right setting, please edit their account and switch ‘GST Registration’ to ON:
Key points:
- If the ownership for a horse changes after a prizemoney credit has been added, ensure to check the credit so that the values are still correct.
- Trainer commission should be entered directly into Xero, as they are not related to the owner
- To handle nomination & acceptance fees, you enter these directly as an Expense with a negative amount value.
2.7 XERO SYNC
We encourage you to XERO SYNC daily or at the very least, before you do your next Statement Run.
This will ensure both systems are up to date, payments reconciled and ensure that data is consistent.
If there are any errors that appear during the sync process, please email
support@prism.horse and we will be able to address it asap.
2.8 IN-BUILT CHECKING TOOLS
Prism provides you with multiple tools and processes to stay on top of your Stable operations and make the day to day running much more efficient.
Key tools include:
- Daily Dashboard - shows all activity in the stable over a period - spend 5mins each morning to check all tasks and ensure there are none outstanding and all have been captured
- Overdue Task Notification - Make sure you set up your Overdue notifications so that you can see each day if there have been any tasks yet to be completed (or completed but not marked as complete)
- Transaction Filter - Use the filter in the Transaction window to review specific horse, suppliers, expenses and costs
- Supplier Expenses - Use the Expense menu in Supplier module to review all Supplier expenses and compare against invoices
- Reports - Utilise the various reports to analyse and track different elements of your stable
- Create Statement Exports - Utilise the various export functions at the bottom of each step of the Create Statement Wizard to ensure you have captured all expenses and Owner %’s
2.9 FINANCIAL ADVICE
Please always ensure you are guided by your financial adviser when setting up Prism and Xero and managing your accounts ongoing.
Every stable operates differently with different circumstances and while we can help with how expenses and recharges can be directed into Xero, ultimately it is up to you and your Financial Advisor to determine the best way to set everything up.
If you don’t have a Financial Advisor and would like a recommendation, please don’t hesitate to get in touch with us at
support@prism.horse and we will be able to make some recommendations.
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