Set Up New QuickBooks File For Both Business & Personal Bookkeeping

New QuickBooks file designed to be used for both business and personal record keeping with the use of QuickBooks class tracing feature.
It is generally recommended to have two QuicKBooks files, one business and one personal, and two bank accounts so that we keep business records as separated as possible. However, some small business owners may want to track personal and business expenses in one QuickBooks files.
We will set up a QuickBooks file designed to track both business and personal expenses and use the class tracking feature to show how such a system could work.
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How To Track Personal Charitable Contributions In Our Business QuickBooks File To Make Taxes Easier

Method to track tax related deductions for charitable contributions, in one QuickBooks file, to make year end tax filing much easier.
It is generally good advice to keep personal transactions completely separate from business transactions, keeping two separate set up books, and having two separate checking accounts.
There are benefits, however, to tracking some personal items using our business account. Once benefit is that it keeps the items we need to track for taxes in one location and tax preparation and compliance if often one of the main goals for small businesses. The business QuickBooks account is often much more organized then the personal records because special focus has been spent on tracking the accounts and on using the bank account for guidance.
If we can use the same QuickBooks account for tax related items we must track it can simplify our lives. We do run the risk, however, of combining business and personal records in a confusing way so we do need to be very careful.
For more accounting and QuickBooks Information see accounting website.
http://accountinginstruction.info/

 

How To Track Personal Tax Deduction Using Business QuickBooks File To Make Tax Preparation Easier

Method to track tax related deductions in one place, in one QuickBooks file, to make year end tax filing much easier.
It is generally good advice to keep personal transactions completely separate from business transactions, keeping two separate set up books, and having two separate checking accounts.
There are benefits, however, to tracking some personal items using our business account. Once benefit is that it keeps the items we need to track for taxes in one location and tax preparation and compliance if often one of the main goals for small businesses. The business QuickBooks account is often much more organized then the personal records because special focus has been spent on tracking the accounts and on using the bank account for guidance.
If we can use the same QuickBooks account for tax related items we must track it can simplify our lives. We do run the risk, however, of combining business and personal records in a confusing way so we do need to be very careful.
Items we may want to track in our QuickBooks files that are not business related but which we may need to deduct for taxes include schedule A deductions like charitable deductions, state taxes, medical costs. We may also need to track school costs, IRA contribution, and child care.
There are different methods we can use to track these costs in a business account. We will use a method we are calling the equity draws method.
When an owner draws money out of the business bank account we call this a draw and record it in the equity section. If the owner spends money from the business checking account on personal items we will also record the transaction as a draw rather then a business expense.
By consciously making payments out of the business checking account for personal items we want to track, like tax related items, and categorizing them in Equity draws accounts we can track these spending and still keep our income statement as business only.
To track the tax deductions as draws we will create multiple draws accounts with specific names referring to what we want to track like charitable donation, medical expenses, and son on.
When we make payments for these items we will record the decrease in cash and the other side will go to one of our new specific draws accounts. In essence we are still just recording personal expenses as draws but now we are categorizing the types of draws, and in so doing we are generating documentation we can provide our tax professional with at year end, removing the need to shuffle through a lot of personal records to find the deductions we need.
For more accounting and QuickBooks information see accounting website.
http://accountinginstruction.info

 

Payroll Item Setup Health Insurance Employer Paid In QuickBooks

Set up payroll item for health insurance that is employer paid.
payroll items are the driving components to how QuickBooks navigates the system. The payroll items will help QuickBooks process payroll and select the correct accounts to be effected.
We have set up payroll items related to dental insurance and vision insurance in the past. We set these items up to be paid by the employee.
In contrast we will set up this health insurance item to be paid by the employer so that we can then run payroll and examine the differences.
For more accounting and QuickBooks information see accounting instruction website.
http://accountinginstruction.info/

 

Payroll Item Setup Vision Insurance Employee Paid Before Taxes in QuickBooks

Set up payroll item in QuickBooks for vision insurance that is paid by the employee and paid before taxes. We will compare and contrast this payroll item that is employee paid before taxes to the a prior payroll item for dental insurance that was setup as employee paid after taxes. For more accounting information see accounting website. http://accountinginstruction.info/

 

Payroll Item Setup Dental Insurance Employee Paid After Tax in QuickBooks

Payroll Items are items QuickBooks uses to help run the payroll process and direct the journal entries and accounts that will be effected by processing payroll.
We will add payroll items related to dental insurance. When adding dental insurance payroll item to QuickBooks we will have multiple options. The insurance can be employer paid, employee paid, and if employee paid can be before tax or after tax. We will add dental insurance that is employee paid after taxes in this example and compare it to other insurance options in future videos.
For more accounting and payroll information see accounting website.
http://accountinginstruction.info/

 

Add 401(K) Payroll Item In QuickBooks

Payroll Items are items QuickBooks uses to help run the payroll process and direct the journal entries and accounts that will be effected by processing payroll.
We will add a payroll item related to a 401K plan, a type of retirement plan. Adding the 401K plan payroll item will result in two payroll items, one for the employee portion and one for employer matching.
Once the 401K payroll item is setup we can add the 401K option to employees and process payroll with the 401K.
For more accounting and QuickBooks information see accounting website.
accountinginstruction.info/

 

What Month End Documents Should A QuickBooks Bookkeeper Provide To Client

List, description, and formatting of month end documentation for a small bookkeeping business. We will list out forms and documents a bookkeeper can provide to a client at the end of each month.
The forms a bookkeeper provides are the end product and service provided and it is best to format them in as presentable a way as possible.
When working with small clients and even large clients the main concert of the bookkeeping client is often year end. The monthly Quickbooks documents help to provide assurance that the QuickBooks bookkeeping client is in good hands.
The bookkeeper will need to generate standard financial statement type documents including the balance sheet and profit and loss, or income statement.
The bookkeeper may also generate accounts receivable detail reports from QuickBooks, as well as deposit and check detail. QuickBooks also has the capability of generating some graphs and charts that can look nice in the monthly documentation. If the bookkeeper in running payroll or working with a payroll company payroll reports and helpful as well.
Once the reports are generated from Quickbooks, the bookkeeper needs to decide how to deliver them. The bookkeeper can mail the reports or provide them in some kind of digital format. The bookkeeper can e-mail the reports with PDF file attachments.
When e-mailing it is nice to zip the file for easier client use. QuicKbooks also allows the bookkeeper to export reports to Excel and we can use the Excel report to generate one PDF file with multiple reports which can help with the presentation of the financial information.
For more accounting and QuickBooks instruction see accounting website.