To protect transactions in previous accounting periods from being changed, you can “Close the books” and set a closing date and password in QuickBooks Desktop and QuickBooks Online. You’re a small business owner, and you’ve just sent your QuickBooks data file off to your accountant to complete your tax return for the year ended December […]
Bad debt is a term for accounts receivables that will never get collected. Many business owners simply leave the balance on the books and never do anything about it because they don’t know how. This, however, does apply only to accrual basis accounting since in a cash basis business there are no receivables and therefore […]
As a firm that manages multiple bookkeeping client accounts, we need comprehensive Standard Operating Procedure (SOP), especially when just starting out with a new client. We have our staff draft the SOP in a standardized format with attachments of sample documents and control processes as needed. This helps make sure that our staff have a […]
Conventional thinking! If you are a construction company owner who has been told that QuickBooks Online won’t work for your construction company, you may want to take a second look. There are still quite a few folks who tend to think of QuickBooks Online in the same way as they view the QuickBooks Desktop software […]
The bank statement. All staff involved in bookkeeping with more than accounts receivable or accounts payable know the importance of regular and frequent reconciliation of the bank statement with the bank account as reported in the accounting system. The reconciliation of the monthly bank statement with the bank account balance reported in the accounting system […]
Currently, QuickBooks Online doesn’t have a feature to automatically do amortization. Amortization of debts and assets will have to be done through manual transactions, such as checks and journal entries. For example, the Amortization of debts can be done with a check/cheque. Select the Plus icon (+) at the top, then Check or Expense. List the bank account that payment is made from […]
Most small businesses ask new customers for a deposit before work begins. This is a prudent policy when it is uncertain if the new customer will pay promptly and consistently pay for goods and services provided. The accountants and bookkeepers have a standard way of recording such deposits that is mumbo-jumbo to most business owners. Their standard […]
Credit memos, credits and refunds can be confusing, so here is some information that will help explain the differences. Sometimes, the wrong type of transaction is used. If that is the case, you may need to delete the transaction and re-enter. What’s the difference between a credit memo, credit and a refund? A credit memo is a […]
It may be time to adopt a new Best Practice – Posting Sales to the General Ledger At STENSON Bookkeeping Simplified we hear that one of the biggest headaches for many bookkeeping departments is when confidence in the financial records starts to erode…especially in sales reporting! It often starts with…”those sales can’t be right, […]
The Cash Basis Balance Sheet (CBBS) should not show Accounts Receivable (A/R) or Accounts Payable (A/P) balances because these accounts track open (unpaid) invoices and unpaid bills. Many companies use A/R and A/P accounts and report on the cash basis. QuickBooks was not designed to be used in this way and reporting anomalies result. […]
