In a previous blog I talked about setting up customized payroll in QuickBooks. At that time I mentioned that in order to complete the process, it was necessary to set up the necessary Payroll Items. QuickBooks uses Items to control how transactions are recorded in the Chart of Accounts, but Payroll Items are a separate menu item under the Lists menu.
The purpose of this blog will not be to discuss the details in setting up Payroll Items. It will be to simply outline this feature of the software.
Setting up a Payroll Item is a two-step process. First, the Item must be created in QuickBooks, and second, the Item must be customized so transactions using it are directed to the correct account in the Chart of Accounts.
There are six types of Payroll Items using the EZ Setup feature:
Compensation (such as wages, salaries, bonuses, and commissions)
Insurance Benefits Deductions (such as health, dental & vision insurance, and HSA deductions)
The reconciliation feature in QuickBooks is a very powerful tool, but my experience has been that the majority of users aren't utilizing its features effectively. In addition, the most common usage of this feature is to reconcile bank statements, but it can also be used to reconcile other accounts as well.
Starting a reconciliation is relatively easy, but the reconciliation window that appears after you click on
Continue has some features that may not be all that obvious. The first feature is the fact that every column in the reconciliation window can be sorted simply by clicking once on the column heading. If you want the sort in reverse order, click on the column heading a second time. This is especially useful if the bank statement lists cleared checks separately from all other transactions. Click on the
Ref# column so the transactions are listed by number and reconcile those. Then click on the
Date column so that the entries match the rest of the transactions listed...
In working with other company's QuickBooks records, I have noticed that many users record all sources of income as Customers and all payees of expenses as Vendors. Although that method may seem to be sufficient, QuickBooks has a feature that is often underutilized - the Other Names List.
First, let's consider Vendors. QuickBooks was designed so that when a company receives a Bill from a Vendor, the bill can be recorded against the vendor and QuickBooks will track unpaid Bills as Accounts Payable. When the Bill is paid, then the balance in Accounts Payable is reduced. This is especially helpful for businesses that want to track their outstanding liabilities.
But there are often many expenses that a business may incur that it will never receive a Bill for. For instance, an employee on a business trip may use a company credit card to purchase gasoline for a rental vehicle, pay tolls and parking, eat meals in various restaurants, and stay overnight in a hotel. A sole...
One feature of QuickBooks that many corporate accountants really hate is the fact that you can change almost anything you have entered in the software. Unless the entries have been locked (which I will discuss later), QuickBooks is a completely open bookkeeping software.
However, the ability to make changes is not necessarily a bad thing. Let's face it. I have yet to meet a bookkeeper or any QuickBooks user (includng myself) who doesn't make mistakes. And sometimes the information you may have entered in QB is incomplete or incorrectly distributed to the wrong account. For instance, you may have found it necessary to change one or more of the following in a transaction:
Bill or invoice number
Purchase Order number
Job or Customers an expense is to be billed to
Chart of Accounts category
So how do you find the transactions that need to be changed, and how do you change them? There are a number of different...
When it comes to processing payroll for a small business, QuickBooks Payroll provides a very powerful tool. However, setting up payroll in QuickBooks can be a daunting task because the default process is totally inadequate for many businesses, especially corporations and partnerships.
By default QuickBooks only provides a couple of accounts for tracking payroll activity such as
Payroll Expenses and Payroll Liabilities. But any payroll professional will tell you that tracking payroll and payroll taxes is much more complicated than that. Therefore, QuickBooks Payroll is best used if it is manually set up by the user or a qualified professional.
The first step in manually setting up QB Payroll is to add the necessary accounts to the
Chart of Accounts. Accounts must be added in two locations: expenses and current liabilities.
Expenses in payroll include salaries and wages paid to employees and payroll taxes.
Salaries and wages may have to be broken...
As a new tutor with WyzAnt I have noticed that there a number of potential students requesting assistance in setting up QuickBooks, and this is often in addition to receiving help in learning how to use the software. Although Intuit markets QuickBooks as a bookkeeping application that even amateurs can use, there are many features that cannot be used effectively without some knowledge of bookkeeping and training. Therefore, I have decided to start a blog that will address some of the issues in setting up and using QuickBooks.
In this first blog I would like to address the Chart of Accounts. As every bookkeeper knows, how a business reports its income, expenses, and financial condition is dependent on the accounts included in the Chart of Accounts and how they are structured. QuickBooks will provide a default Chart of Accounts, and the user has some control when installing the software because he has to choose what type of business he will be using the software for. However,...
Many students and new business owners dislike Accounting because they think it is boring and they don't understand the "language of Accountants". Here are my five ways to help you get through Accounting:
- Compare it to a company that you can relate to - Inventory costing at Nike
- Explain stock options and grants through the eyes of executives at Apple and you as a potential stockholder
- Use Fixed Cost vs. Variable Cost examples at Chipotle
- Demonstrate why accounting is important for failing businesses
- Show real examples on accounting software like Quickbooks not just Microsoft Excel.
Accounting can be fun!
The IRS have opened up form 8863 Education Credit and you can file that form now.
Many other credits are still not ready and taxpayers await these in order to file. What is my opinion as a tax professional for 26 year? See below.
It is perfectly legal to plan your tax affairs to your advantage as long as you don't break Tax Law. Many people don't know this. Some avoid tax professionals, claiming that they file their own taxes yearly...
WORD OF ADVICE----when you are sick you visit a doctor, when you car needs repairs you take it to the mechanic---Trust me if you don't take your taxes to a seasoned tax preparer , I guarantee you that you are losing out on solid TAX PLANNING ADVICE ... Food for thought.
Hola a todos!!
Recien comienzo a utilizar los servicios de WyzAnt como tutora y creo que es una magnifica oportunidad, ya he hecho mi primera tutoria en este caso en Excel , aunque tambien me he certificado para dar tutoria en QuickBooks, Computacion Basica, MS Word, Power Point y otras.
REVISA MI PERFIL HOY!! PUEDES ESTAR NECESITANDO MI AYUDA!!:
Mis preferidas son Quickbooks, MS Excel, y MS Word softwares que uso a diario para mi trabajo y que no dejan de sorprenderme con sus features y su alcance.
No me imagino a un professional o estudiante que pueda tener exito y/o preparar reports o procesar data sin utilizar estas aplicaciones (o sus similares en otros sistemas operativos ok! Es cierto: no todos son usuarios de Microsoft, pero creo que somos muchiiiiiisimos no?) Crees que tengo razon?
En cuanto a Quickbooks solo les puedo decir que I LOVE QB! lo recomiendo tanto a individuos como a empresas, y muy en...