Here's a tip to simplify your accounting even more...
Take advantage of the fact that QuickBooks will allow you to reconcile ANY asset, liability or equity account balance!
Many businesses are already taking advantage of the QuickBooks reconciliation feature for their bank and credit card accounts (if you're not doing that, you should be!). But it can offer even more to you.
When you get into the reconciliation window, you can choose ANY balance sheet account from the drop down list that appears, as shown in the sample below:
Where could this come in handy?
Pretty much any account where you are tracking activity in and out of the course of a month, including:
- Reconciling prepayments of inventory or other prepaid assets
- Employee advances
- Reconciling accruals and payments of payroll taxes
- Reconciling partner distributions and payments
Once you've completed the process, if you go to look at the account register for the account you just finished, you'll note the familiar "check box" to indicate the transaction has been properly reconciled and the account is up to date:
That's all there is to it!
Note that this trick works in both the desktop and online versions of QuickBooks.