Understanding QBooks - from Acctnt view

Understanding QuickBooks

(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

Today’s Outline

Getting Around QuickBooks

Balance Sheet tips & traps

Income Statement tips & traps

Reports

Q&A

Business Performance Solutions July 22, 2010


Getting Around QuickBooks

1. Each QBooks file will have a different look and personalized access

2. Lists most used:• COA• Items• Classes

3. Cash vs. Accrual


The Balance Sheet

Bank accounts

1. Making adjustments

2. Reconciled & reports (Pro+)

3. Voiding after year-end

Make bank adjustments only if bank statements have not

been reconciled


The Balance Sheet …continued

A/R – Cash Sales Receipts – income records when

recorded (deposit or undeposited funds) Invoices – income recorded when

payment is received AND connected to the invoice

Credits are recorded when applied to an invoice

If inventory or sales tax are used on an invoice, A/R will appear on the cash balance sheet

A/R – AccrualIncome records when Sales Receipts,

Invoices, and Credits are entered.

Make A/R adjustments to

specific customers only


Inventory

1. Average Cost (for all “Inventory” items)

2. Non-Inventory Parts

3. To Verify inventory values, run

Inventory Valuation Report

• Date range must go back to beginning

• Must agree with year-end balance sheet

• If off, maybe GL adjustment or

• Inventory used when less than zero in stock

Make Inventory adjustments to

specific items onlyBusiness Performance Solutions

July 22, 2010



Fixed Assets

1. Check for expenses posted here

2. Check for “loan payments” posted here

3. Check A/D and A/A for posting errors here


Accounts Payable – Cash• Bills – expenses are record when bill payments

are applied• Credits are recorded when applied to a bill• If Asset is entered via bills (equipment charged

to vendor account) A/P will appear on the cash balance sheet.

Accounts Payable - Accrual• Bills – expenses are record when bills are

entered• Credits are recorded when entered

Make A/P adjustments to

Specific vendors onlyBusiness Performance Solutions

July 22, 2010


Credit Cards• Entries are expensed or credited when posted• Choosing “record as a bill” when reconciling

sends it to A/P (cash system = A/P balance)• Do not adjust with GJ if accounts have been

reconciled

Sales Tax• Do not adjust sales taxes with journal entry if

sales tax system is being used

Payroll Liabilities• Accrued on both Cash and Accrual reports• Do not adjust with journal entries if full payroll

program is being used



Bank Loans

Opening Balance Equity

Draw / Profit Distribution / Partners Distribution

Equity / Retained Earnings


Profit & Loss

Posting Tricks

Uncategorized

Using OTHER Income & Expenses

Ask My Accountant

Other tips


REPORTS

1. Prior year reports = reports in your client file (or not…)

2. A/R and A/P = Balance Sheeta) Use Customer Balance Summary instead of

Open Invoice Report

b) Use Vendor Balance Summary instead of Unpaid bills Report

3. A/R and A/P unapplied show up on Open Invoice and Unpaid Bills

4. Mileage Report


Q & A

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

Documents

yearend balance sheet

ap balance

balance sheet bank accounts

inventory adjustments

inventory items

income expenses

ar adjustments

bank adjustments