Set up payroll item for health insurance that is employer paid.
payroll items are the driving components to how QuickBooks navigates the system. The payroll items will help QuickBooks process payroll and select the correct accounts to be effected.
We have set up payroll items related to dental insurance and vision insurance in the past. We set these items up to be paid by the employee.
In contrast we will set up this health insurance item to be paid by the employer so that we can then run payroll and examine the differences.
For more accounting and QuickBooks information see accounting instruction website.
Payroll Items are items QuickBooks uses to help run the payroll process and direct the journal entries and accounts that will be effected by processing payroll.
We will add payroll items related to dental insurance. When adding dental insurance payroll item to QuickBooks we will have multiple options. The insurance can be employer paid, employee paid, and if employee paid can be before tax or after tax. We will add dental insurance that is employee paid after taxes in this example and compare it to other insurance options in future videos.
For more accounting and payroll information see accounting website.
Payroll Items are items QuickBooks uses to help run the payroll process and direct the journal entries and accounts that will be effected by processing payroll.
We will add a payroll item related to a 401K plan, a type of retirement plan. Adding the 401K plan payroll item will result in two payroll items, one for the employee portion and one for employer matching.
Once the 401K payroll item is setup we can add the 401K option to employees and process payroll with the 401K.
For more accounting and QuickBooks information see accounting website.
accountinginstruction.info/
List, description, and formatting of month end documentation for a small bookkeeping business. We will list out forms and documents a bookkeeper can provide to a client at the end of each month.
The forms a bookkeeper provides are the end product and service provided and it is best to format them in as presentable a way as possible.
When working with small clients and even large clients the main concert of the bookkeeping client is often year end. The monthly Quickbooks documents help to provide assurance that the QuickBooks bookkeeping client is in good hands.
The bookkeeper will need to generate standard financial statement type documents including the balance sheet and profit and loss, or income statement.
The bookkeeper may also generate accounts receivable detail reports from QuickBooks, as well as deposit and check detail. QuickBooks also has the capability of generating some graphs and charts that can look nice in the monthly documentation. If the bookkeeper in running payroll or working with a payroll company payroll reports and helpful as well.
Once the reports are generated from Quickbooks, the bookkeeper needs to decide how to deliver them. The bookkeeper can mail the reports or provide them in some kind of digital format. The bookkeeper can e-mail the reports with PDF file attachments.
When e-mailing it is nice to zip the file for easier client use. QuicKbooks also allows the bookkeeper to export reports to Excel and we can use the Excel report to generate one PDF file with multiple reports which can help with the presentation of the financial information.
For more accounting and QuickBooks instruction see accounting website.
Options for entering equipment that was financed into QuickBooks. When entering equipment into QuickBooks we need to record the purchase as an asset rather then an expense. To do this we will create an account in the chart of accounts with the account type of fixed assets.
When large equipment is purchased we often have another problem for the data entry into Quickbooks. The equipment may by partially financed. In other words, we may have purchase the equipment with a loan.
When entering transaction into Quickbooks on a cash basis, from the bank statement, we will only see the portion of the equipment purchased with cash.
We have some options for recording the equipment on the books under a cash basis.
The first option, the easy option, is to just enter the equipment at the value we payed and depend on year end adjustments to record the difference. When using this option we can enter the cash payment in the check register and record the other account to a fixed asset called equipment.
Our next option is to get the loan agreement and record the equipment and the loan. We can still enter the transaction into the check register if we paid some cash, but if no cash was paid we may need to enter the transaction into QuickBooks using a journal entry.
We can enter the transaction into QuickBoosk check register by using the split function and charging the equipment account for the full purchase price and charging a loan payable for the difference between the purchase price and amount paid.
For more accounting information see accounting website.
We setting up a new QuickBooks bookkeeping system for a new company file we need to outline how the process will work, how we will enter data into the system, how we will sort data, and how we will give the data to clients. When designing a bookkeeping system there are many problem areas we can anticipate and think about how we will deal with them. Inventory is one area that we need a plan for. Does the company have inventory? Do we want to track inventory in QuickBooks? Credit card payments and tracking outstanding balances is another area we need to consider. How will we enter credit card payments into the system. Payroll is an area of concern and one we need to plan for in our bookkeeping system. For more accounting and bookkeeping information see accounting website. http://accountinginstruction.info/
Easiest way to record insurance payments in QuickBooks. Insurance is an account that usually requires an adjusting entry at the end of the time period. In other word, even if we record insurance perfectly we will usually need an adjustment at the end of the period to make it correct on an accrual basis for financial reporting in an accrual system. When recording insurance for a small business we may have different needs for our bookkeeping records. We may need financial statement preparation or our primary need may be year end tax preparation.
We are usually taught to record interest as prepaid asset called insurance expense and then adjust the expense portion at year end. When entering transactions into QuickBooks, however, and when considering tax preparation, it may be easier to enter the insurance as an expense and let our accountant or tax preparer adjust the portion that is prepaid if needed. One reason for this method is that the tax return may be on a cash method with record to insurance payments. Another reason for this method is that it will show insurance on the income statement, making it less likely for a tax preparer to miss.
For more accounting information see accounting website.
Networking opportunities for QuickBooks bookkeepers.
Once we have decided our specialization in QuickBooks bookkeeping we can decide how we want to interact with other accounting professionals.
Our focus here will be on specializing as a bookkeeper and not moving into taxation, financial statement preparation, and payroll.
By not focusing on areas outside of QuickBooks bookkeeping we can often build strong relationships with other professionals.
One reason we can build other relationships with other accounting professionals is because they do not have to worry about us competing with them. I’m not saying we should not consider going into other areas. This is just one strategy for a QuickBooks bookkeeper .
Other accounting professionals are more likely to recommend our services and may even provide referral for recommending clients to them. If we do get commissions, however, we want to be very open with clients about them.
For more accounting and QuickBooks information.
Simple bookkeeping system for a small business or small bookkeeping practice. When we set up a bookkeeping system, whether it be our baseness or a client, we need to specialize the service to the needs of the business. We will set up a bookkeeping system designed for small businesses and discuss the types of businesses our bookkeeping system will work well for. Small businesses often need to compile financial data in a fast and easy way so it can be used to create financial statement, often for tax preparation at year end. The main financial statement needed for tax preparation is the income statement or profit and loss, a list of income and expenses, the bottom line being net income. We will set up a cash basis system where most of the financial data is gotten from the bank statement and entered directly into QuickBooks using the cash register. For more accounting information see accounting website. http://accountinginstruction.info/
Enter cash outflows, checks and other outflows, from a bank statement to the QuickBooks Pro 2019 system. We will put together a cash based bookkeeping system we can use for a small business or as a bookkeeping business. We will enter transaction from a bank statement directly inter the QuickBooks check register. As we enter the first months worth of data a will need to check the vendor names and assign the correct expense accounts. We will have a list of expense accounts provided by QuickBooks when we set up a new QuickBooks file. The chart of accounts regenerated by QuickBooks will be based on the industry we select. If we cannot find an appropriate account we will create new accounts.
We will also enter many new vendors as we enter data from the bank statement to the check register. We may have ask the client about why the vendors are to assign the correct account. As we run into question we will enter an account called uncategorized expense so that we can keep moving forward. Once we get answers about the vendors QuickBooks will allow us to recatagorize the transactions we were not sure about.
For more accounting and QuickBooks information see accounting website.
