All posts by Monika Phillips
IRS Updated Online Services – A complete Guide for Start Ups and Small Business Owners
Tax season has finally passed and it is a good idea to get tax records in order now to streamline the process for the next season. For most of us business owners tax rules and compliance is a major headache. Just one tax question can trigger an avalanche of research. Reading through tax forms and […]
Continue readingReconciliation
Bank Reconciliations Bank reconciliations are the top priority to ensure accuracy of records that all financial transactions have been recorded on the books. Matching bank activity with QuickBooks activity helps to uncover errors such as unrecorded transactions, bank errors and even certain types of fraud. As a general rule all accounts that receive statements from […]
Continue readingRecording & Reconciling Customer Prepayments
A Customer Prepayment can be recorded two ways in QB desktop Create a negative receivable by recording the payment on the customer account before creating the invoice. Enter the payment in the receive payment window when a customer payment is received but don’t apply it to any open invoices so that it creates a negative […]
Continue readingAccrual and Cash Accounting in QuickBooks
QuickBooks is designed to handle both accrual and cash basis accounting methods. The default setting in QuickBooks is accrual accounting. An example of accrual accounting is entering bill and invoicing transactions that generate Accounts Payable/Accounts Receivable reports. The cash basis transactions in QuickBooks are sales receipts for customers and write check and credit card charges […]
Continue readingKnow your Accounting Method
Every small business uses one of the two accounting methods, cash or accrual accounting. The main difference between the accounting methods is the timing when expenses and revenue is recognized and reported for taxes. Cash Accounting The cash method is most commonly used because it is simple to use and takes cash flow into consideration. […]
Continue readingHow to record Standard Mileage versus Actual Expenses in QuickBooks
Standard Mileage Method You can use QuickBooks Desktop mileage-tracking feature that lets you track your business miles. On the top icon bar choose Company then Vehicle Mileage. This feature is not available in QuickBooks online. Any other mileage app can be used to record business miles as well if the QuickBooks mileage-tracking feature is not […]
Continue readingStandard Mileage Versus Actual Expenses
Basics Two methods can be used, the standard mileage method and the actual expense method for business use of car. If the car is used for both business and personal use, only the cost of the business use can be deducted. Not every business qualifies for the standard mileage deduction and, therefore, it is advisable […]
Continue readingYear-End Guide
Reconcile all bank and credit card accounts Make year-end corrections and journal entry adjustments Review petty cash entries for the year Review accounts receivables for any uncollected balances and write off any amounts that are deemed to be uncollectible Make sure all payables/expenses are recorded Review fixed assets for disposals and purchases and make necessary […]
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