Understanding QuickBooks – Part 2 (From an Accountant’s View) Terry Stone Business Performance Solutions, LLC 38 Poor Farm Rd. Colchester, VT 05446 802-878-3550 [email protected] www.bpsvt.com
Understanding QBooks - from Acctnt view Part 2
Aug 17, 2015
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Understanding QuickBooks – Part 2
(From an Accountant’s View)
Terry Stone
Business Performance Solutions, LLC
38 Poor Farm Rd.
Colchester, VT 05446
802-878-3550
www.bpsvt.com
Today’s Outline
Review of Balance Sheet Issues
Income Statement Posting Tips
Other Tricks & Tips
Report Features
Client Data Review
Verify & Rebuild Feature
Other Q&A
Business Performance Solutions December 6, 2010
Business Performance Solutions December 6, 2010
ReviewBalance Sheet Issues
Bank accounts:
o Make adjustments only if bank statements have
NOT been reconciled (or, carefully document)
o Check for un-cleared transactions at eoy
o Do not use “Void check” feature if voiding checks
in closed years. (post offset in current year –
check off during next reconciliation)
A/R & A/P – cash vs. accrual
o Cash reporting shows income & expenses when
invoices and bills are paid AND APPLIED
o Assets entered via a “bill” will show up as A/P on a
cash basis balance sheet
o Inventory sold & sales tax collected will show up
as A/R on a cash basis balance sheet
Balance Sheet Issues …continued
Inventoryo Average Cost (for all “Inventory” items)
o Make inventory adjustments to specific
inventory items only
o To Verify inventory values, run Inventory
valuation report
Fixed Assetso Check for “expenses” posted here
o Check for “loan payments” here
o Check for A/D and A/A posted here
Business Performance Solutions December 6, 2010
Balance Sheet Issues …continued
Credit Cards
o Entries are expensed or credited when posted (only
if using the credit card entry system)
o Choosing “record as a bill” when reconciling sends it
to A/P (cash system = A/P balance)
Sales Tax
o Do not adjust sales taxes with journal entry if sales
tax system is being used
Payroll Liabilities
o Accrued on both Cash and Accrual reports
o Do not adjust with journal entries if full payroll program
is being usedBusiness Performance Solutions
December 6, 2010
Balance Sheet Issues …continued
Opening Balance Equity
o Should always be ZERO
o Closing out a reconciliation that’s out of balance
will post difference here
Draw or Distributions
o Can sort by payee or memo to capture deductible
personal expenses
o Can become a “catch-all” (like Misc. Exp.)
Equity / Retained Earnings
o User is warned when entering IF preference is
set – usually ignored
o No “manual” year-end closing needed
Business Performance Solutions December 6, 2010
Income Statement
Posting Tips
Uncategorized Income & Expenses
o Appears if “Require Accounts” is NOT checked
(find under: preferences / accounting / company
preferences)
Using OTHER Income & Expenses
o “Net Ordinary Income” appears BEFORE these
entries
Ask My Accountant – o Have clients post questionable entries here
Business Performance Solutions December 6, 2010
Other Tricks & Tips
Set Closing Date
o Access under Accountant or Company drop-down
menu
o Can be used throughout the year
Set up Users
o Allows for separate log-in for each user
o Allows for control of access to specific sections of
QuickBooks for each user
o Lets you know who entered specific data, and, who
changed it after-the-fact (Audit Report)
Business Performance Solutions December 6, 2010
Other Ticks & Tips ……continued
Chart of Accounts Format
o Sort by name to quickly locate un-numbered
accounts
o Re-sort function
TOGGLE featureo Accountants Edition only
o Allows you to use other program versions
o Especially useful with “Industry-Specific” versions
o You see what the client sees
Business Performance Solutions December 6, 2010
REPORTS Modify Reports
o Adding columns for prior year comparisonso Advanced… “non-zero”
A/R and A/P reports = Balance Sheeto Use Customer Balance Summary or A/R aging
reports NOT Open Invoice Report
o Use Vendor Balance Summary instead of Unpaid bills Report
A/R and A/P unapplied payments show up on Open Invoice and Unpaid Bills
Audit Trail – powerful but complicatedo Entered/Last Modifiedo Last Modified “by”o Prior vs. Latest entries
Business Performance Solutions December 6, 2010
Client Data Review(CDR)
Log-on as “External Accountant”o Under company / Set up users & passwords / Set
up users
o Add Users and follow prompts
From Accountant dropdown, access CRDo CRD appears on icon bar (wrench)
Most used tools:
o Troubleshooting Prior Account Balances
o Reclassifying Transactions
o A/R – fixing unapplied payments & clearing up
Undeposited Funds
o Troubleshooting Inventory
Business Performance Solutions December 6, 2010
Verify & Rebuild Data
Access: File / Utilities / Verify Data
It’s recommend that you verify data during backups – do so by choosing it in backup options
Access: File / Utilities / Rebuild Data
Rebuild when…
o … data begins to act unstable
o … the Trial Balance is not in balance
o … A/R or A/P doesn’t = balance sheet
o … the program tells you to do so
Business Performance Solutions December 6, 2010
Other Q & A
Terry Stone
Business Performance Solutions, LLC
38 Poor Farm Rd.
Colchester, VT 05446
802-878-3550
www.bpsvt.com
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