Accounting Software for Dealers, Traders, and Brokers

 

Introduction

 When we are speaking about accounting software, it is expected to manage, record, and report the day-to-day financial transactions of a firm. Of course, there are many types of accounting software for the specific needs of an industry or business. This accounting software can be used for multi-currency transaction recording.

The purpose of this project is to control and record daily financial transactions and business deals in multi-currency for reporting daily customer's account balances by using accounting software based on Microsoft Excel.

How does this software wotk?

The most powerful and distinguishing feature of this accounting software is its ability to manage and record business deals, and by recording the appropriate format of any deal, the system automatically calculates the complicated tasks.

Let me start with some examples:

Suppose you are managing a network of customers, deals, and financial transactions just like the one cited below:

 You agreed with your customer (X), who will transfer EUR 480,000 on behalf of you due to your Performa Invoice (Buying some industrial machinery), while you will pay him Dirham (AED). Your deal is as follows:

 Company "X" will charge you a fee of 0.4% for your EUR remittance (1- 0.004 = 0.996), and this company will also consider the ask-bid spread of 35 pips on the rate of EUR / AED = 4.0856.

 How can you calculate the cost of this business deal, which is your loss?

 Solution:

Let me record this deal in a cell of Excel as follows:

Purchase 480,000*1.004 EUR @ 4.0856+0.0035 AED

 Or

Purchase 480,000/0.996 EUR @ 4.0856+0.0035 AED

 Please see the below video:

As you can see, this software automatically calculates the amounts of sale, purchase, and Profit or Loss where we have:

Your purchase (Received) of EUR = EUR 481,920

 Your sale (Paid) of AED = AED 1,970,619

 Your loss = AED (9,531)

In the next business deal, you will sell this industrial machinery to company "Y" for 2% profit plus an ask-bid spread of 45 pips, and you will receive Russian rubles (RUB) from company "Y."

We can calculate your profit due to this deal as follows:

The deal will be:

 Sell 480,000*1.02 EUR @ 101.2297+0.0045 RUB

 See below video:

Then, Mr. "Z" will pay you CAD for all amounts of your RUB by 0.135% less than the rate of CAD/RUB = 68.6724.

Definitely, you will gain from this deal as follows:

This deal will be:

 Sell 49,564,264 RUB @ 68.6724/1.00135 CAD

 See below video:

Finally, the time is over, and you should pay your debt to company "X.". In this case, you have to sell to Mr. "W" the amounts of CAD to receive Dirham. He will charge you a remittance fee of 0.3% and an ask-bid spread of minus 30 pips on the rate of CAD/AAED = 2.7778 as follows:

We can record this deal just like the one cited below:

Purchase 1,970,619*1.003 AED @ 2.7778-0.003 CAD

 I will also record this business deal into accounting software, and then we can glance at the final account balance as follows:

Here is a screenshot from account balance:

According to the above balance account:

 You have a debt to company "X" equal to AED 1,970,619

When you receive the industrial machinery from company "X" and deliver it to company "Y", the amounts of EUR 481,920 and EUR 489,600 will automatically be cleared.

You should receive the amount of RUB 49,564,264 from company "Y" due to the delivery of the industrial machinery.

In exchange for receiving CAD 722,724, you are expected to pay the amount of RUB 49,564,264 to Mr. Z.

Your debt to Mr. W is equal to CAD 712,315 and your credit is equal to AED 1,976,531.

 You only need to record the deals in the mentioned format into a cell, and then you will automatically have all account balances on a sheet of Excel. I have named this model Artificial Intelligence by Microsoft Excel.

The next step is to keep track of the accounts that your customers have paid and received in order to update the balances.

For clearing accounts, Mr. "W" will transfer the amount of AED 1,970,619 on behalf of you to the banking account of company "X.".

When you deliver the machinery to company "Y", the amounts of EUR 481,920 and EUR 489,600 will be settled.

The company "y" will pay the amount of RUB 49,564,264 to Mr. Z," and he will pay the amount of CAD 712,315 to Mr. W on behalf of you.

The difference between the amounts of AED 1,970,619 and AED 1,976,531 will be equal to the fee charged for the business deal with Mr. W," which should be cleared.

Now, you will have the updated balances for all your customers.

As a result, your total profit will be equal to CAD 10,409.

Please see the below video:

If you have any questions, do not hesitate to send your request to my email:

soleimani_gh@hotmail.com