MOMS

MOMS allows orders to be assessed for their profitability. This is suitable for any business working on an order basis, e.g. builders, retailers, service companies. Most accounts systems work on an account basis which works well when you have a few accounts. But it is not possible to match costs to a particular order. So most accounting systems will provide summaries of the accounts which provide a monthly total of the profits. The disadvantage is that the merchant or supplier cannot determine which actual orders are making or losing money. A large problem in business is wrong invoicing, and the MOMS system allows invoices to be matched to an order so everything will point to a specific order. For example, if a builder does work for a customer - Mrs Jones - all his costs for that customer will be recorded against her order for his work. He then can record her payment and her actual invoice. This will allow the actual profit to be calculated and also the intended profit based on invoices.MOMS comes from years of running a business and the owners being failed by existing accounting systems which work out totals for accounts only and they do not work on an order basis.