Monday we did a QuickBooks support and training due to an issue with accounts receivable that an educational consultant client discovered in his books. This training was a good reminder of the accounts receivable process and how important it is to follow the workflow in QuickBooks.
The client was invoicing his clients and receiving payment which cleared the client’s balance. However, failed to complete the last step and make Deposit to the check register. Since the deposits weren’t showing up in his check register, he added a new deposit and booked it to Sales. He missed a critical step.
Good rule of thumb in QuickBooks if you are invoicing your clients:
- RECEIVE payment against the client and deposit to your checking account in QuickBooks. All done.
- If you have multiple checks to deposit or need to record bank fees, or cash back, receive payment to UNDEPOSITED FUNDS.
- Make Deposit, select invoice, enter adjustments, and then make DEPOSIT to the checking account to put it into your checking register.
In reviewing your QuickBooks, this to look for:
- Your income account in QuickBooks should have the transaction type Invoice, Sales Receipt, or Credit.
- If you see the word deposit, open it and make sure the deposit is made up of invoices from undeposited funds.
- If you see the word deposit, and it is booked to Sales/Services or another income account, it is wrong and you are potentially overstating sales. We don’t like to pay taxes on stuff that isn’t real.
- If you see the word check, this could be a refunds booked against sales. This is OKAY.
If you need a second pair of eyes to review your books or you’re not sure your QuickBooks is reporting correctly, please feel free to contact our office for a free consultation.
Call or email today for a free consultation and
see if we’re a good match to work together.
907-222-3019 | Office@DBCAK.com
4 days until the new year!! Let’s take a look at your books. Are you using the software to max capability? Are you still using a calculator and an excel spreadsheet? You’re working too hard on your accounting and losing money. Here is the Year End Quick and Dirty Cleanup List. These are a couple of areas that we can typically assess and offer solutions to speed up the year end reconciliation and review. If you feel like you got it covered, AWESOME! If you aren’t quite sure or need a helping hand, we are here for you. Give us a call 907-222-3019
Accounting Processes – How To’s
- Have you hired new staff this year and trained them?
- Have you clearly documented the operating procedures for each duty, deadline in your office?
- Can they function without you in the office answering questions?
Accounting Technology – Systems and Integration
- Did you move to QuickBooks Online this year? During the transfer, there are a lot of things to clean up and re-reconcile.
- Have you added on 3rd Party Apps or any software integration? Have they been fully implemented and accounts properly mapped?
- Have you trained your Staff to use these applications and clearly documented the procedures?
- Is the application working for you or do you need additional assistance to take a look?
Accounting Reports – Tracking and Profit Margins
- Do you AP and AR Report Balances match what is reported on your Chart of Accounts/Trial Balance?
- Do you have ZERO balances on the AR or AP Reports?
- Do you know which AP bills are still open to pay?
- If you use Class Tracking, do you have Uncategorized balances in this column?
- If you use Job Costing, do you have a balance in the Uncategorized Customer?
- How is your profit margin? Are you getting the number you expected?
Year End Financial Documents – Taxes and Year End
- Have you collected W9s from your subcontractors and professional service vendors?
- Did you close your previous year or months with a password?
- Have you reviewed Uncategorized Expenses, Miscellaneous Expenses, and the ominous Ask My Account?
While this is our short list, we offer an accounting system/year end review of your books.
We have heard of Artificial Intelligence and machines taking over the world. QuickBooks Online is won’t be taking over anytime soon. The Transaction Bank Download feature is only as good as the brains behind the operation which is YOU or your bookkeeper. You have to enter the basics and train your QuickBooks Online. Otherwise, your reports may not tell an accurate story or a truthful financial picture of your business.
During a recent review of a new client’s Monthly QuickBooks Online account, we prepared a Profit and Loss report for review. The client asked about several inflated accounts and wanted to know the transactions that were posted in each expense account. This should be a NO brainer in QuickBooks Online since we can run the Transaction History for the account and email directly from QuickBooks Online.
Unfortunately, the report only listed the date, expense account, and the dollar amount. This report didn’t tell the client where he was spending the money. We joked about it being dummy proof. I asked the client if they added the details when he added the transactions to the register via the BankFeed Transaction Download window He said, “No, I just ADD TO REGISTER.” I said, “Egads!, Now I will have to review every expense account and transaction to code the vendor and make sure the expenses are recorded in the right general ledger account.
CLEANUP JOBS = EXPENSIVE
It’s more to clean it up than to do it right the first time.
Here are a couple of practical tips if you’re a do it yourselfer:
- Make it a practice to review each transaction and the bank memo BEFORE you add it to the register.
- Code the vendor and expense account if known. If not known, create an 99999 UNCATEGORIZED Expenses. Your bookkeeper or accountant can sort through these later. DO NOT put everything here unless you want to pay the bookkeeper more moola!
- Automatically code all checks to 99999 UNCATEGORIZED Expenses. then review the checks on the bank and update the coding.
- Reconcile your bank accounts!!
- Regularly review your financials for unusual or large balances on accounts and research.
If you want a hands off approach to your bookkeeping, we offer Live and Historical (After the Fact) bookkeeping services that will save you the headache, time, and moola! Service Listing Call our office to setup a free 30 minute consultation for your business and see if we’re a good match to work together 907-222-3019.
Denali Bookkeeping Team
The best way to avoid a QuickBooks Nightmare? Get assistance form a QuickBooks Pro!! We offer telephone/email support in 2 hour or 4 hour blocks per month. Talk to a human that understands QuickBooks and Accounting. This includes a QuickBooks Backup Review of your file each month to make sure your data file is in good health and your financial data is posted properly. We will review it with our accounting eyeballs and let you know what needs to be fixed or any areas of concern.
Support 1 – 2 hours of telephone/email support and monthly QuickBooks Backup Review – $90.00
Support 2 – 4 hours of telephone/email support and monthly QuickBooks Backup Review – $180.00
If you would like more information on our support plans or to get signed up , please call 907-222-3019 or email email@example.com.
If you have a hot date with your QuickBooks this weekend, Intuit issued a notice about maintenance updates. The system will be down Friday, July 10th from 9-10 pm pst and Sunday, July 12th 5-6 am pst. If you need reporting or assistance, we can help you get it done!
Have a happy Wednesday
LeAnn & Kim, The Denali Team