How To Enter Financed equipment to QuickBooks When Using a Cash Basis

Options for entering equipment that was financed into QuickBooks. When entering equipment into QuickBooks we need to record the purchase as an asset rather then an expense. To do this we will create an account in the chart of accounts with the account type of fixed assets.
When large equipment is purchased we often have another problem for the data entry into Quickbooks. The equipment may by partially financed. In other words, we may have purchase the equipment with a loan.
When entering transaction into Quickbooks on a cash basis, from the bank statement, we will only see the portion of the equipment purchased with cash.
We have some options for recording the equipment on the books under a cash basis.
The first option, the easy option, is to just enter the equipment at the value we payed and depend on year end adjustments to record the difference. When using this option we can enter the cash payment in the check register and record the other account to a fixed asset called equipment.
Our next option is to get the loan agreement and record the equipment and the loan. We can still enter the transaction into the check register if we paid some cash, but if no cash was paid we may need to enter the transaction into QuickBooks using a journal entry.
We can enter the transaction into QuickBoosk check register by using the split function and charging the equipment account for the full purchase price and charging a loan payable for the difference between the purchase price and amount paid.
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5 Most Common QuickBooks Bookkeeping System Problems

We setting up a new QuickBooks bookkeeping system for a new company file we need to outline how the process will work, how we will enter data into the system, how we will sort data, and how we will give the data to clients. When designing a bookkeeping system there are many problem areas we can anticipate and think about how we will deal with them. Inventory is one area that we need a plan for. Does the company have inventory? Do we want to track inventory in QuickBooks? Credit card payments and tracking outstanding balances is another area we need to consider. How will we enter credit card payments into the system. Payroll is an area of concern and one we need to plan for in our bookkeeping system. For more accounting and bookkeeping information see accounting website. http://accountinginstruction.info/

 

Simple Way to enter credit card payment QuickBooks

Simple way to enter credit card payments into the QuickBooks accounting software by using the check register. The method for entering credit card payments to QuickBooks is a shortcut and it has its pros and cons. It will be a faster method but we loose some detail we would have if we used a more complex method. If we enter data into the QuickBooks system from the bank, using the bank statement or bank feeds, we will see the credit card payments as we pay them. We can record the payment directly into the check register. The challenge is to categorize the other account effected. For this we will need the credit card statements. We can enter more then one expense account into the check register by selecting the split option. We can then categorize the vendors we payed on the credit card statement to the proper expense accounts and write the vendor name in the memo section. If we did not pay the full balance we can enter the difference into credit card payable, a liability account. This method is fast but does lack some detail. For one, it will not record the expenses at the date they were incurred but rather at the date the check was paid. It will also not show vendor detail for the credit card payments by vendor.
For more accounting information see accounting website.

 

Easy Way To Record Insurance QuickBooks

Easiest way to record insurance payments in QuickBooks. Insurance is an account that usually requires an adjusting entry at the end of the time period. In other word, even if we record insurance perfectly we will usually need an adjustment at the end of the period to make it correct on an accrual basis for financial reporting in an accrual system. When recording insurance for a small business we may have different needs for our bookkeeping records. We may need financial statement preparation or our primary need may be year end tax preparation.
We are usually taught to record interest as prepaid asset called insurance expense and then adjust the expense portion at year end. When entering transactions into QuickBooks, however, and when considering tax preparation, it may be easier to enter the insurance as an expense and let our accountant or tax preparer adjust the portion that is prepaid if needed. One reason for this method is that the tax return may be on a cash method with record to insurance payments. Another reason for this method is that it will show insurance on the income statement, making it less likely for a tax preparer to miss.
For more accounting information see accounting website.

 

Who Should QuickBooks Bookkeepers Network With

Networking opportunities for QuickBooks bookkeepers.
Once we have decided our specialization in QuickBooks bookkeeping we can decide how we want to interact with other accounting professionals.
Our focus here will be on specializing as a bookkeeper and not moving into taxation, financial statement preparation, and payroll.
By not focusing on areas outside of QuickBooks bookkeeping we can often build strong relationships with other professionals.
One reason we can build other relationships with other accounting professionals is because they do not have to worry about us competing with them. I’m not saying we should not consider going into other areas. This is just one strategy for a QuickBooks bookkeeper .
Other accounting professionals are more likely to recommend our services and may even provide referral for recommending clients to them. If we do get commissions, however, we want to be very open with clients about them.
For more accounting and QuickBooks information.

 

Simple bookkeeping system for small business QuickBooks

Simple bookkeeping system for a small business or small bookkeeping practice. When we set up a bookkeeping system, whether it be our baseness or a client, we need to specialize the service to the needs of the business. We will set up a bookkeeping system designed for small businesses and discuss the types of businesses our bookkeeping system will work well for. Small businesses often need to compile financial data in a fast and easy way so it can be used to create financial statement, often for tax preparation at year end. The main financial statement needed for tax preparation is the income statement or profit and loss, a list of income and expenses, the bottom line being net income. We will set up a cash basis system where most of the financial data is gotten from the bank statement and entered directly into QuickBooks using the cash register. For more accounting information see accounting website. http://accountinginstruction.info/

 

How to enter expenses from the bank statement to QuickBooks

Enter cash outflows, checks and other outflows, from a bank statement to the QuickBooks Pro 2019 system. We will put together a cash based bookkeeping system we can use for a small business or as a bookkeeping business. We will enter transaction from a bank statement directly inter the QuickBooks check register. As we enter the first months worth of data a will need to check the vendor names and assign the correct expense accounts. We will have a list of expense accounts provided by QuickBooks when we set up a new QuickBooks file. The chart of accounts regenerated by QuickBooks will be based on the industry we select. If we cannot find an appropriate account we will create new accounts.
We will also enter many new vendors as we enter data from the bank statement to the check register. We may have ask the client about why the vendors are to assign the correct account. As we run into question we will enter an account called uncategorized expense so that we can keep moving forward. Once we get answers about the vendors QuickBooks will allow us to recatagorize the transactions we were not sure about.
For more accounting and QuickBooks information see accounting website.

 

Enter Deposits and Income Into QuickBooks the Easy Way

Enter deposits and income into QuickBooks the easy way. QuickBooks has a large amount of options and we can enter a full accounting process into the QuickBooks system. As we learn how QuickBooks works it is easy to loose track of how to set up a simple accounting system. This lecture will discuss how to set up a simple accounting system, a cash basis system based on the banking information, based on the bank statement. We will compare and contrast this cash based system to an accrual system. We will enter transactions from the bank statement directly into the check register which is the fasted way to enter the data. For more accounting and QuickBooks information see accounting website. http://accountinginstruction.info/

Bank Feeds Outflow Organization of Outflows QuickBooks Pro 2019

Bank feeds can save a lot of time on data input but once the data is downloaded from the bank we still need to organize the data and upload it to the QuickBooks software. We will discuss options for organizing checks and outflows downloaded from QuickBooks bank feeds.
Once transactions are downloaded they are not all included in the QuickBooks data. We often need to add more information to the data downloaded from the bank to add the information to QuickBooks. We also need to be careful that we do not duplicate information.
Once the data is downloaded from the bank it may require actions from us. Our options are to use Quick Add, an option that is not recommended unless all required field are filled out, add details, select bill to be marked as paid, match to existing transaction, or ignore. We will discuss each option in give example for many.
We will often us the add details field to add required information such as account and vendor. Once we add this information and approve the transaction we may be asked to save a rule that will make the same changed in the future.
The select bills to mark as paid option helps us to link the payment to the bill. In other words, if we entered a bill the journal entry would be an increase to accounts payable and whatever other account the bill was for, possibly an expense. When we get the check in the bank feed we want to make sure an match it up with the correct bill to reduce accounts payable.
The match to existing transaction option will allow us to match the transaction to an existing one which is helpful to stop duplicate transaction.
The ignore option will not add the bank feed data to QuickBooks and may be another option to reduce duplicate transactions.
For more accounting and QuickBooks information see accounting website.

 

Bank Feeds Introduction – How to Set Up in QuickBooks Pro & How to Use

Set up bank feeds in QuickBooks pro 2019 QuickBooks desktop 2019. Bank feeds can save a lot of time by reducing the data entry. Although bank feeds save a lot of time they can also cause problems and bookkeepers need to be aware of what banks feeds do and what bank feeds do not do.
The set up process for bank feeds is fairly easy, although it can take more steps then the Online version of QuickBooks and the bank may charge more fees.
To set up bank feeds we will need the name of the banking institution and our log in information. The bank may ask for a second security verification like e-mail or phone verification.
Once set up we will typically need to download transactions from the bank periodically. We can generally get data for the first 30 to 90 days depending on the banking institution.
When using bank feeds we need to be carefull that we are not imputing duplicate transactions into the QuickBooks system.
After we download transactions from the bank they will not all go directly into the QuickBooks data used to create financial statements but will first need approval.
In other words, we will need to complete any needed information provided by the bank that QuickBooks needs and approve the banking information before it is included in our financial data in QuickBooks.
For more accounting and QuickBooks information see accounting website.
http://accountinginstruction.info/