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4 posts from June 2008

QuickBooks Chart of Accounts - Asset section

Ok, put your bean counter hat on for just a microsecond and get a better understanding of the asset section of the QuickBooks chart of accounts. Remember: assets are things your business owns.

The chart of accounts is nothing more than a big digital filing cabinet that is used to store copies of your QuickBooks transactions (checks, invoices, etc.) When you create a financial report such as the profit and loss in QuickBooks, it rifles through the filing cabinet to put together the appropriate transactions for the report from the filing cabinet.

Click Lists in your menu bar, then Chart of Accounts to access it. When you click the "Account" box in the lower left hand corner and then "New", and you can choose from:

  • Bank account - not much guesswork here. Your checking and savings accounts would be "bank" accounts in QuickBooks.
  • Accounts Receivable - unless your business is quite unique, you will only have one account in the chart of accounts called Accounts Receivable. This is the money your customers owe you when you sell to them on credit.
  • Other Current Asset - something you own that you hope to convert into cash within the next 12 months (or sooner). The classic example of an "other current asset" is inventory. You certainly want your investment in inventory to convert into your checking account in less than a year!
  • Fixed Asset - used to track your investment in significant items that have a lifespan of more than one year. Examples here are: machinery, computers, buildings, etc. Be sure to check with your CPA on anything classified as a fixed asset in QuickBooks.
  • Other Asset - the easiest way to remember this is that it is for anything that doesn't fit in any of the other categories above!

Correct setup and usage of your chart of accounts is critical to your success with QuickBooks. Unsure if yours needs help? Contact me for a review - it is one of the best QuickBooks investments you'll ever make.


Tip on Better QuickBooks Performance

Before you close out of QuickBooks at the end of each business day, take one quick, extra step that will save time when you re-open QuickBooks the next day...

Simply click on Window in the menu bar, then Close All.

This one step will close ALL the open windows you have in QuickBooks at one time (a timesaver right there) AND will also help optimize QuickBooks to open faster the next time too. If you are in the midst of entering a transaction when you do this, QuickBooks will ask if you want to save it or not, so no worries about losing anything.

For more QuickBooks tips, visit my QuickBooks newsletter archives.


Tip for QuickBooks Merchant Services (and others too!)

Do you find that the process of reconciling your bank account with your credit card deposits in QuickBooks is a pain in the rear because your credit card merchant takes the fees out of each transaction? You know the drill - this deposit looks "close to" the right one, but not quite, etc.

Here's a little tip that can simplify your bookkeeping life...

Call QuickBooks Merchant Services (or any other merchant service provider your business may be using) and ask them to take your MasterCard, Visa, Discover and AmEx fees out of your account once per month instead of with each credit card deposit.

Benefits to you of asking this simple question?

  1. The credit card transactions are posted to your bank account in their "gross" amount (not the net amount after fees). Makes the reconciliation process MUCH easier.
  2. You keep your cash longer - you simply settle up once per month for your credit card processing fees.

Naturally, the merchant will try to get their fees sooner rather than later - that's why they set you up this way by default. Turn the tables, and ask them to stop their method and start yours - just take the fees once per month!


QuickBooks invoices - on a post card?

I read a recent news release from Burris Computer forms indicating they are now offering businesses the ability to print their QuickBooks invoices on post card stock. Why? To save money on postage and paper among other things. Their claim is that a business can deliver an invoice for just 35 cents, including the cost of the card, printing, and postage. An interesting idea for sure...

So, are your customers ready to get their invoices on a post card instead of in a regular window envelope?

Share your comments below on this idea...