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    29 Replies Latest reply on Dec 9, 2008 3:12 PM by SBC Team

    Event: Preparing for year-end with QuickBooks

    SBC Team Guide
      This event will cover some target areas that you can troubleshoot in your QuickBooks file and how to fix them, some tips and techniques to examine and verify that your QuickBooks file is as accurate as possible and how to prepare your file to be ready to take to your tax accountant.

      Amy Vetter, CPA.CITP leads the Florida office for Technology In A Box, LLC and serves as CFO and Executive Director for the company. Technology In A Box, LLC is a national consulting firm that offers complete end-to-end solutions to small to mid-market businesses and franchises.

      Amy Vetter is an accomplished author of QuickBooks reference materials and is a contributor and speaker for Intuit's courses for Certification and Training of QuickBooks ProAdvisors and Accountants. Amy has been recognized by The CPA Technology Advisor as an outstanding 40 under 40 technology-based Accountant and was also awarded South Florida Business Journal's Up & Comer Award in 2007 for her expertise in accounting. Visit her at http://www.TechnologyInABox.net

       

      Amy can answer questions such as:

       

       


      • How does QuickBooks data directly relate to financial statements and tax returns?
      • When and how do I make corrections to the QuickBooks data file?
      • How do I identify changes made to QuickBooks lists?
      • Can I resolve open items in A/P and A/R?
      • How do I troubleshoot bank reconciliation errors?

      Post your question here and then check back on December 9 at 2:00PM EST, or any time thereafter for Amy's reply. You can also pose a question any time during the event hour.

      What's your QuickBooks's question?
        • Re: Event December 9: Preparing for year-end with QuickBooks
          SBC Team Guide

          Community,

          How many of you are using QuickBooks? Amy Vetter of Technology In A Box will be here to give some tips and best practices to make your year-end tax prep that much easier.

           


          Ask your question now or join us live on December 9 @ 2PM EST and ask it then. We hope to hear from you!

           


          The SBOC Team
            • Re: Event December 9: Preparing for year-end with QuickBooks
              QB_Accountant Newbie

              Typically you don't write it off to Retained Earnings because you don't want to affect prior period financial statements that have been submitted. So, before you do anything, you may want to speak with your CPA and decide with him or her on whether the adjustment would be in the current year or prior year and amend the return. No matter which direction you take it, the actual invoices have to be written off, not just a journal entry made. You can do this 2 ways:

               


              1 - Create an item for Bad Debt in the Item List and link it to the Bad Debt Expense account. Create a Credit Memo for each customer with the amount you want to write off and use the Bad Debt Item. Create the Credit Memos on the same day so it is easy to track your adjustments and apply them to the invoices you want to write off. If it is for the prior year - then do them all at 1/1 in the current year.

               


              2 - On the Receive Payments window for each customer, highlight the invoice you want to write off - choose Discounts and Credits. Enter the amount to write off and code it to Bad Debt expense for the discount account. Enter in your discounts on the dates stated in #1.
              1 of 1 people found this helpful
            • Re: Event December 9: Preparing for year-end with QuickBooks
              Robinsky Newbie
              In cleaning up, if one finds outstanding numbers from a previous year that you just want to write off- do you write it off to Retained Earnings?
              • Re: Event December 9: Preparing for year-end with QuickBooks
                cedar13 Newbie
                I have customers in Canada that I have to bill in Canadian $'s. What is the best way to handle the difference collected in USD from the change in exchange rates from time of invoice to time of payment.
                Thanks.
                • Re: Event December 9: Preparing for year-end with QuickBooks
                  caffeinated Scout
                  Amy,

                  If I converted to QuickBooks mid-year, and the first half of the year's numbers are on a convoluted spreadsheet, how do you suggest I merge the data? Is there an automated way to accomplish this? And if there is, how do I verify that all the data came across and is correct?

                  Thanks for helping
                  caffeinated
                  • Re: Event December 9: Preparing for year-end with QuickBooks
                    ICEDOTS Newbie
                    Amy,
                    I use QB 2005.
                    In 1/08 I used Vendors Pay Bills for my purchases. When I went to reconcile I forgot to use this vendor bill and wrote a check and use the check to reconcile. I tried to correct the problem by going to my chart of accounts and delete the check and replace it with the Vendor pay Bill. How do I correct this matter without undoing the 10 previous statements?

                    602-725-8653
                    • Re: Event December 9: Preparing for year-end with QuickBooks
                      amspcs Ranger
                      Here's a QB related question I hope you can help me with:

                      I've updated QB version several times. The old versions remain on my hard disc and are taking up valuable space which I need as the disc is nearly full. I can't seem to UNinsall them, when I go to Control Panel and attempt to uninstall, I get some sort of error message about a missing component. Is there a trick to freeing up space by uninstalling older versions of QB? Thanks.

                      AMSPCS
                        • Re: Event December 9: Preparing for year-end with QuickBooks
                          QB_Accountant Newbie

                          Yes, QuickBooks will take up a lot of space on your computer. So, if you no longer need those versions, you should remove them. However; since this may have something to do with the specific hardware you have or conflicting software on your computer, your best bet is to call Intuit Technical Support on this. They have lots of ways to get support if you don't want to call - here is the link - http://support.quickbooks.intuit.com/support/Default.aspx?homepage=true
                            • Re: Event December 9: Preparing for year-end with QuickBooks
                              amspcs Ranger
                              My QB file is HUGE--dates all the way back to 1996! Any suggestions on how to deal with and/or store
                              such old data without losing it permanently? I don't necessary want to delete it, but I don't normally need to see it every day on the register either. I believe there is a function in QB known as 'archiving', but I'm
                              not sure how to safely use it. Thanks.
                                • Re: Event December 9: Preparing for year-end with QuickBooks
                                  QB_Accountant Newbie

                                  There are a couple options here. If you are in later versions of QuickBooks, there is no longer an option to Condense a QuickBooks file. Instead, there is a Cleanup Utility you can run. However; it does not reduce the file size of your QuickBooks file anymore.

                                   


                                  The first option is that you can upgrade to QuickBooks Enterprise. QuickBooks Enterprise is built to run larger databases so that you do not have problems keeping all of this history as your file size grows. If you are interested in learning more about QuickBooks Enterprise, you can email me at amy.vetter@technologyinabox.net and I can go through more of the details on this.

                                   


                                  The next option is to use the Clean-up Utility. This option is under your File Menu, Utilities, Clean-up Company Data. It will ask you first to Verify Your Data to make sure there are no errors in the QuickBooks file. After that, you are going to want to back-up your QuickBooks file to archive it so that you have a copy of the history of your data. Then it will walk you through a wizard of removing transactional data and will create a summary Trial Balance for that year instead of leaving the history of all the transactions there.

                                   


                                  The 3rd option - which you should work with an Expert on - is using a utility created by an Outside Company to delete transactions from the QuickBooks file. However, I would not suggest you do that yourself. Again, you can contact me offline if you want assistance with that.
                            • Re: Event December 9: Preparing for year-end with QuickBooks
                              ICEDOTS Newbie

                              How do I get my inventory in check? I don't use the unventory on QB.....to complicated...So I use Excel and compare a end of the month physical inventory...How do I get my inventory in check?
                                • Re: Event December 9: Preparing for year-end with QuickBooks
                                  QB_Accountant Newbie

                                  Actually, if you learn about the inventory in QuickBooks, your life would actually be a lot easier. There is always a learning curve with any new feature you learn with QuickBooks - however, the time invested upfront to learn it will help you for the future to make your like more efficient. In QuickBooks, under the Vendors menu, there is an option for Inventory Activities. There you can print off a Physical Inventory Listing to do a Physical Count. Physical Counts can be done in a variety of ways.

                                   


                                  There are people that run Perpetual Inventory counts, which means that each day you take 15-20 minutes before starting operations and section off a piece of your warehouse and count it. That way by the end of the month, you have completed a full count. You would not want it to be predictable to your staff though as to which area of the warehouse you would be counting.

                                   


                                  The other way you can do it is at the Last Day of the Month. You will complete a full Physical Inventory and then adjust your Quantity level based on the Physical Count.
                                  1 of 1 people found this helpful
                                  • Re: Event December 9: Preparing for year-end with QuickBooks
                                    ICEDOTS Newbie
                                    I really only have 2 products. each product has different flavors. Can I sent up my 2 products as an inventory part. Is this the correct way to set it up? Also I get rebates back on one of my products. How would I create that account under the inventory system?
                                  • Re: Event December 9: Preparing for year-end with QuickBooks
                                    Tori Adventurer
                                    Hi Amy,

                                    Thanks for participating in the SBOC!

                                    What's the best way to track petty cash expenses?

                                    ~Tori
                                      • Re: Event December 9: Preparing for year-end with QuickBooks
                                        QB_Accountant Newbie

                                        Petty Cash should be tracked like any other Bank Account - even though it is not a "real" bank account. A lot of fraud happens with Petty Cash, so if you do not track it properly, you can be unpleasantly surprised with how much cash is disappearing. You don't want your staff to make an entry in your Bank Register and code it to Petty Cash Expense - that does not tell you what it was used for. Instead, create another "Bank" type account in your Chart of Accounts in QuickBooks. Then transfer the money from your Operating Account to your Petty Cash Account. Within your Petty Cash Bank Register, make entries - just like you would write checks in your Operating account - to show how the cash was used. If $10 is used for lunch, make a cash entry for $10 and code it to Meals in your Petty Cash Bank Register. You can reconcile this account as it is drawn down before replenishing it again. That way your employees know you are tracking and monitoring your cash.
                                      • Re: Event December 9: Preparing for year-end with QuickBooks
                                        SBC Team Guide
                                        All great responses Amy!

                                        Community,

                                        Get those questions in and remember to refresh your browsers often to see the latest content.

                                        The SBOC Team
                                        • Re: Event December 9: Preparing for year-end with QuickBooks
                                          tallship Newbie

                                          I work for a small nonprofit and we need to set up our first contra revenue account. How can we do this?
                                            • Re: Event December 9: Preparing for year-end with QuickBooks
                                              QB_Accountant Newbie

                                              Go to your Chart of Accounts. At the bottom of the list, choose Account, then New. You are then going to select the type of Account you want to create - which will be an Income type account. Even though it is a Contra Account - or negative amount - it will still be an Income type account so that it nets against your Gross Revenue. For example, Sales Discounts - which is a negative income account - is a Contra Account.
                                            • Re: Event December 9: Preparing for year-end with QuickBooks
                                              iserviceceo Newbie
                                              Amy,

                                              I am having some difficulty matching transactions downloaded from my finanical institution (Bank of America) with transactions that have been exported to my QuickBooks company file by a field service management package ServiceCEO.

                                              Essentially, I do all of my invoicing and receive all of my payments from customer in ServiceCEO. There is an integration utility using the QuickBooks SDK that allows me to automatically export batches of Income, A/R, and Cash Receipt transactions from batch processing queues in ServiceCEO directly to QuickBooks.

                                              QuickBooks accepts these transactions as GL entries in my chart of accounts. There is NOT a customer level integration. Each invoice in ServiceCEO does NOT create a matching invoice in QB's. Each Deposit from ServiceCEO might contain multiple checks, Credit Card Transactions, etc. The deposit total can be written to any account on my chart of accounts by the import. If the deposit contains payments of multiple types (checks and cash) then it will create two journal entries, one totalling all of the checks in the deposit, another totalling all of the cash in the deposit.

                                              The problem that these deposits are currently dropping directly into my BoA checking account in the GL. Later, I download the transaction history from BoA Online, and the deposit is being added to the same checking account again. I'm getting duplicate payments.

                                              When I use the matching utility, I have 2 major problems:
                                              1) A single journal entry in the GL (ServiceCEO Depost #3 - $3000 Checks) might be coming from 3 separate checks from 3 separate customers, because the deposit is the total of all checks included in Deposit #3 (3 checks for $1000 each). This would make it difficult to match the transactions on it's own.

                                              2) When using the match utility available from the "Online Banking" utility, I choose to view the register above my unmatched transactions, but it's empty.
                                              a) Shouldn't my existing journal entries be there so that I can line things up and match them?
                                              b) Is the fact that I don't have actual deposits in QuickBooks (just journal entries in the bank account) the reason that they aren't showing up in the register? (Or could it be that anything in the Undeposited Funds Account doesn't show up in the register view?)

                                              I've been testing an alternate setup in a duplicate of my QB's company file where I have all deposits from ServiceCEO exporting to the "Undeposited Funds" account instead of directly to BoA.
                                              I'm imaging a solution where I never actual deposit the funds from my undeposited funds account, but instead wait for the deposit to show up in the online banking download, and then somehow remove the transaction from undeposited funds (or void it) Could this work?

                                              I know that's a whole lot of questions, but any insight you can lend to my situation would be much appreciated.

                                              Thanks!
                                                • Re: Event December 9: Preparing for year-end with QuickBooks
                                                  QB_Accountant Newbie

                                                  Great thinking on this one! Yes, I would suggest that you have it import to Undeposited Funds - not the Bank Account directly, if you do not have an option to match this in ServiceCEO. That way you can take the entries from undeposited funds and group it yourself into a deposit. When you do the Online Banking matching, then the 2 will match.

                                                   


                                                  I do not believe Journal Entries will show up when working in your Online Banking window. That is probably the reason you are not seeing it there. You would have to verify that with Intuit Technical Support, but I believe it is looking for transactions, not journal entries.

                                                   


                                                  In the Online Banking Center for 2009 - the interface changed in QuickBooks. But one thing that may help you with the new interface is that you can match a deposit from your Online Banking download to Open Invoices OR Undeposited Funds. You do not have to group it first. You can select all the undeposited funds that downloaded and match it to the deposit from Online Banking. Or, what you could do is not download the deposites from ServiceCEO, just the invoices, and match the open invoices to the Online Banking deposits if that would work.

                                                   


                                                  You should probably take some time talk with ServiceCEO as well about this issue and if they are coming out with updates to help you with this issue.
                                                • Re: Event December 9: Preparing for year-end with QuickBooks
                                                  QB_Accountant Newbie

                                                  A tip for those of you that are upgrading to 2009 this year is to create your outside Accountant as their own user! That way their changes are tracked separately from yours! If they take an Accountant's Copy of your QuickBooks File, you will want to create them as their own user first, before giving them your file.

                                                   

                                                  The Administrator of your file creates an External Accountant role for you in their data file. This is NEW in QuickBooks 2009, the External Accountant user allows the Accountant access to all areas of QuickBooks similar to the Administrator role. In the past, in order to get Administrator level access, the Accountant would have to sign in as the Administrator on the file. The downfall of signing in as the Administrator is that any changes that the Accountant makes are combined with the your changes in the QuickBooks file. Now with the External Accountant user, the Accountant has access to all sensitive accounting activities and information in the QuickBooks data file without needing to be logged in as the Administrator.

                                                   

                                                  • The only limitations for the External Accountant user role are that you are unable to add, edit or delete existing users of the QuickBooks file and you cannot view customer credit card information.

                                                   

                                                  The Administrator of the QuickBooks data file is the only person that can create an External Accountant User in the QuickBooks file. Once created, the Accountant should always log on with their own login to perform their accounting tasks in the QuickBooks file. This enables any changes made by the accountant in the QuickBooks file to be tracked separately. The External Accountant should be the only one allowed to have this user role in QuickBooks since it has Administrator-level access to the QuickBooks file.

                                                   

                                                  • The External Accountant role is available in QuickBooks Premier Accountant 2009, as well as QuickBooks Pro and Premier editions, as long as the Administrator creates this user role for you in their company file.
                                                  1 of 1 people found this helpful
                                                  • Re: Event December 9: Preparing for year-end with QuickBooks
                                                    QB_Accountant Newbie
                                                    Some other things to watch out for at Year End:
                                                    • Make sure to review your Open Invoices and Unpaid Vendor Bills Report. You want to make sure your A/R and A/P is cleaned up before providing your QuickBooks file to your Accountant. Match and Credits or Payments that are outstanding and should be applied to an Open Invoice or Open Bill. Write off any Bad Debt as we discussed earlier in this chat, and make sure you do not have checks issued for an Open Vendor Bill outstanding. Follow the process I outlined prior to this to clear out checks that should have been applied to Vendor Bills.
                                                    • Make sure you created Sales Tax Payments or Payroll Liabilities Tax Payments to pay those Liabilities down in QuickBooks rather than Manual Checks.
                                                    • Review your Chart of Accounts. Items, Customers and Vendors Listings for duplicates. Merge accounts that are similar, and clean out any miscellaneous type accounts to a specific account it should be coded to.
                                                    • Make sure to perform a Physical Inventory and adjust your inventory levels if you have inventory in your business.
                                                    • Complete all your Bank Reconciliations for the year. Make sure that you do not have any reconciliation differences. If so, make sure to resolve those.
                                                    • Re: Event December 9: Preparing for year-end with QuickBooks
                                                      QB_Accountant Newbie
                                                      In QuickBooks, since it is driven off the Items List, it sometimes hard to be sure that a transaction posted the accounts you wanted it to post to. On any transaction you are on, you can select CTRL+Y to see the Journal Entry behind the scenes to get some peace of mind it posted to the right account!
                                                      • Re: Event December 9: Preparing for year-end with QuickBooks
                                                        QB_Accountant Newbie
                                                        It was a pleasure to be your Guest here today to faciliate this discussion on Year-end issues in QuickBooks. If you would like more help or information on Training and Accounting Services we offer, you can go to www.technologyinabox.net. Under the QuickBooks menu option, we have various Consulting packages that we offer. You can also contact me by selecting the Support - Contact Executive Directors - choose Amy Vetter.

                                                        Good Luck with your Year-End Clean-up!