Using QuickBooks with Investments – Interesting article from Intuit’s ProConnection.
Accountant's Copy Rules for QuickBooks 2008 – You can download some guides here from CPA911 on the newest changes to the Accountant’s Copy function. This is the part of QB that seems to change the most from year to year, sometimes getting better and sometimes worse.
Q:
Subject: Quick Question
Hi Kerry,I understand you are probably swamped. I downloaded a free version of Quickbooks. My mother sent me her file with qbx. extension and I cannot open it on my program. I'm kind of panicking because she deleted her original copy on her friend's computer and even removed the program. (She assumed the file she sent would be safe in my hands & on my computer).I can't figure out how to open it for her to do her taxes!!!Any suggestions? I've spent hours for answers on the internet.
A:
QBX files are special versions that clients send us to work on while they continue to work on their QBW copies. There is a sub-menu under the main File menu to access the commands to open the QBX file and convert it to a QBA version that can be worked on.
I'm a little confused as to which version of QB you have. The only free downloadable version I am aware of is the Simple Start that is not really a full functioned QB program. It's been a few years since I tested Simple Start; but I don't think it has the ability to work with QBX and QBA files.
If that is the case, you will need a version of the regular QB program that is at least as new as the one your mother used. For example, if hers was the QB 2005 program, you will need to use QB 2005, 2006, 2007 or 2008. You won't be able to use an older version of QB to open that data file. You can either buy your own copy of the program or install your mother's copy on your computer, if she has her original program disc with its installation codes.
Deleting her original QBW file was not a good move. Luckily, the QB 2007 and 2008 programs have a utility built in that allows QBA files to be converted to normal QBW files. This wasn't possible with any QB program before the 2007 version.
I hope this helps. Good luck.
Kerry Kerstetter
Follow-Up:
Thank you so much for taking the time to respond. That is the problem. I don't have the full program - it is the free Simple Start. Yikes, looks like I have to buy one!Thanks again. Much appreciated!
Q-1:
Subject: Quicken importing into Quickbooks
Kerry,
I found you information online and it sounds like you are very well versed in these applications. I got Quicken in hopes I can enter information into it, then import it into Quickbooks so it's in one place. Can you please let me know how to do this? I am not well versed in these applications or with keeping books so I can only imagine I will need to turn it over to someone soon anyway, but I want to at least get the information into Quickbooks successfully before hand.Sincerely,
A-1:
Every version of QuickBooks that I have seen has a built in feature to import Quicken data. I have done it on several occasions, so I know that it works quite well.
Here is the brief overview from inside the latest QB program:
"You can convert to QuickBooks directly from Quicken 98-2008 and Quicken Home and Business 98-2008. Older versions of Quicken require a preliminary conversion before this one.
The conversion copies your Quicken data to a new QuickBooks company file, leaving your original Quicken data file unchanged for continued use. After converting your Quicken file, you will have two sets of data: your original, unchanged Quicken file and your new QuickBooks company file."
One thing I have encountered is the fact that the version of QB that you use for the conversion has to be at least as current as the version of Quicken that prepared the data. For example, if you have data produced under Quicken 2005, you can use QB 2005, 2006, 2007 or 2008 to convert the data into QB format. You cannot use QB 2004 or any earlier version.
This sets up the converted Quicken data into a new QB data file. You can't import Quicken data into an existing QB file. This means that you can basically do this function once. If you are for some reason planning to continuously enter your ongoing transactions into Quicken and then import them into QB from there, that is a flawed strategy and won't work. Once you have converted your Quicken data into a new QB data file, you should then enter all future transactions directly into QuickBooks and stop using Quicken.
Good luck.
I hope this has helped.
Kerry Kerstetter
Q-2:
Kerry,
Thanks very much for the response and info. It looks like Quicken will not work and we downloaded software that will convert IIF to Excel so that can be imported into QB.
The whole thing is to be able to import transactions into an existing QB file / account. Is it possible with any application using a conversion or is this a futile quest?
If you are available by phone I would love to take a minute to explain what we're trying to do to see if that's something you might be able to help with / be a good fit for. It's harder to explain in email especially when I don't understand the jargon very well and haven't worked with the applications. My colleague does and has so it would be awesome to have you two talk so see if we might need your services. I would be happy to call you at a convenient time or you're welcome to call me.
Thanks,
Jon
A-2:
Due to my huge backlog, I haven't been able to accept any new clients for the past few years.
On my website page with QB Resources, I have links to some companies that sell file transfer utilities for QB files.Karl Irvin's: www.q2q.us/index.htm
Big Red Consulting: www.bigredconsulting.comYou might find what you need there.
Good luck.
Kerry Kerstetter
I routinely request my clients and their bookkeepers to clean up their QB data before sending it to me to use for their tax returns. I had a shocker a few days ago while reviewing the data file for a client who had recently switched to the QB 2008 program and had sent me his file to use for his 2005 1040.
I sent him the following email:
I downloaded that newest QBX file and tried to set up the main reports I need for the 2005 tax returns. Unfortunately, I wasn't able to get the reports that I need, especially the P&L with columns by Class.
I'm not sure if there was a miscommunication in my general advice to clean up the data files before sending them to me, or what happened. I actually wasn't aware of this change in the program, but it looks like Intuit recently changed the terminology for condensing large data files from the long used "Archiving" to the new term "Clean Up." It appears that you or someone ran this new Clean-Up feature on your data file and it removed all of the details for the 2005 transactions, including all of the class postings. At first, I thought you had just forgotten to include classes in your postings, until I figured out what had happened. I will have to start using a different term than "Clean Up" because I definitely do not want anyone to use that specific function from inside the QB program again. It is very important to retain all of the details; not wipe them out.
Fortunately, I had a copy of the data file that you had sent me back in September from the QB 2006 program. I verified that the totals for 2005 match those in the most recent file, but that older file has all of the details intact for 2005; so I have been using that to assemble the reports for these tax returns.
(Click on image for full size)
Q:
Subject: Love your website!
Hi Kerry,
I am a real estate broker and in need of a bookkeeping program. Any thoughts about what is best for my business?THANKS!
A:
Almost all of my clients, most of whom are Realtors, are functioning quite well with QuickBooks.
Check out my QB info on my website.
Good luck.
Kerry Kerstetter
Follow-Up:
Many Thanks!
When a client who uses QB sent me her tax info, she had a separate hand prepared list of credit card interest charges for the year with the following note.
I had to add up interest on each statement since credit cards are no longer sending out interest paid at year end.
I wrote this back to her:
You also need to learn how to enter credit card charges and how to reconcile the QB accounts with the monthly credit card statements. That way, all of the interest charges will be picked up during the year. It really doesn't matter that many credit card companies don't automatically provide interest paid details at the end of the year if each of the monthly statements has been reconciled through your QB.
As a QuickBooks Pro Advisor, I just received a flyer in the mail with coupons to give to clients and readers to receive a 20% discount on QuickBooks checks and supplies. You don’t need the actual coupons. You can get the discount by calling Intuit at 1–800–433–8810 and mention Special Offer Code C39741 or order online at:
www.IntuitMarket.com/C39741
This deal expires 12/31/08.
Q-1:
Subject: Using Multiple Versions of QuickBooks On One Computer?I just Googled your reply to this question-- except my query was about using 2 versions of Quicken ('04 & '08) on the same computer.
Does your answer apply to these two versions of QUICKEN as well?
Since I'm not local, and not lucky enough to be your client, I won't impose on your time for details: I'll be satisfied with a simple "Yes", "No", or "I don't know" answer to my question.
(If "Yes" I'll proceed to do as you suggested with QB, and install Quicken 2008 in its own separate directory as a new file that starts with Jan.1 '08 , leaving my already-installed but no longer Quicken-supported Quicken 2004 version as an archive that dates back to 1994.)
Thanks for taking your time.
A-1:
Just as with QuickBooks, you can simultaneously have multiple versions of Quicken on the same computer, each in its own separate folder. I used to do that when most of my clients used Quicken, before the QB program improved to the point that I moved everyone over.
I'm not clear as to your objective for having two simultaneous versions. The only reason I did so, and still do for the dozen or so versions of QB, is so that I can work on other persons' data and be able to send the files back to them to continue to use in their version. For data files that I have for our companies, I always roll them forward into the most current version of the program.
In your case, if your objective is to have a separate data file for your 1994-2007 data and a new smaller one for 2008 and on, there is really no need to have both Quicken 2004 and Quicken 2008 installed. I would roll the old data file over into the Quicken 2008 program so that it will be accessible via it. I would then start up a band new data file for your 2008 and on data. That will allow you to jump back and forth between the old file and new file from within the Quicken 2008 program
Of course, you can run both the 2004 and 2008 programs on your computer if there is some other reason, such as the e need to share your data file with someone else who only has the 2004 program.
I hope this helps and isn't too confusing for you.
Kerry Kerstetter
Q-2:
Thanks so much for your detailed answer; it was very helpful, and I appreciate your taking the time.
RE: ".. not clear as to your objective for having two simultaneous versions."
My intent is to prevent Intuit from wiping out 15 years of financial records by replacing them with a dysfunctional upgrade that just doesn't work.
From the blogs, support and chat groups about Quicken, it's clear that that Intuit is unique in the amount of hatred and distrust it has generated in a community of customers who continue to use it anyway, despite complaints of greed-inspired buggy updates, crashes and lack of meaningful support.
I've used Quicken since its first DOS iteration, and have been limping along for the past few years with v. 2004, crippled by Intuit's "sunset" policy to enforce upgrading.
Reading thru the blogs I discovered many complaints that Qkn 2008 doesn't work right. Even worse, v.2008 deletes the old version in the upgrade process.So, my intent is to keep my options open by keeping the old version fully functional while testing out v.2008 as a new user.
Unfortunately, in trying to do this over the weekend, I learned that the only way I could keep Q2008 from hunting down and overtaking the old Q2004 files into the update was to keep the 04 files from being found ... by putting the letter Z in front of crucial 04 files (example: Zqw.exe.)
So, I now have a new install of Quicken 2008 in a different directory, and so far it seems to be working. But I doubt that the stand-alone Q2004 program will be workable on the same computer just by erasing the Zss. Well, that's OK, I have fully functional installations of the old 2004 Quicken on a couple of different laptops that I could go back to, if/when Q2008 suffers a meltdown. To be safe, I may start over: by uninstalling both the 04 & 08 versions of Quicken from my main computer, then using the just-purchased 2008 Quicken Deluxe download to install it as a new program.
Sincerely,
A-2:
Thanks for the additional info on the Quicken programs. I really haven't been following Quicken much in the past few years as I've focused on QuickBooks.
There was a similar problem with the QuickBooks 2005 program. It was a big mess and I really have problems when I have to use it for the few clients still using it. When I discovered the QB05 problems, I advised everyone to hold off buying it and to use the QB04 program instead if they needed a newer version.
In your case, you may want to consider buying a copy of the Quicken 2007 program, which you can probably find for next to nothing on eBay and using that until its support vanishes.
Good luck.
Kerry Kerstetter
Follow-Up:
Thanks, KerryI'll do that if v.2008 turns into a problem. Meanwhile I'm muddling thru with the aid of good input from other users.
Q:
Subject: Invoicing in EUROsHi Kerry,I'm supposed to start invoicing my client in EUROs instead of USD. I've noticed that QB doesn't support that in any straight way. Do you have any recommendations how to handle that?thanks
A:
That is a tricky situation. I've been checking out the message boards around the web to see if there is a way to handle multiple currencies in the same QB data file. I've seen some mention of multiple currency capabilities in the UK version of QB, but none in the USA version. I've sent a comment to the official Intuit QuickBooks feedback folks to see what they suggest for a company having to work with more than one currency. I'll let you know what they say.
I've been trying to think of a way for you to work with this and the only thing I can come up with is to have two separate QBW files; one for the banking checks and deposits that I will use for the tax returns, and another for billing your customers if you like how QB does that. Since your taxes are on the Cash basis of accounting, the invoices sent out really aren't relevant for tax purposes. We just need to work with how much has been actually received. We will obviously need to work with one currency for this, which may mean manual conversions to US dollars for money that you keep in Euros.
You also have the option to do your invoicing with an alternative program that is more suited to Euros. I understand that such things as VAT are not handled well by QB, so there is probably a program that is more capable of billing for that. While I have tried to use the QB invoicing for my CPA work so as to better synch up with my bookkeeping, I have never liked how it's handled; so I use a completely separate program, TimeSlips, for all of our billing and then post the actual money received into QB. It's not as efficient as having everything inside one software package; but it's really not that much more work with the average of around one client check received each day. Your volume of payments received shouldn't be so high as to make it an unworkable burden.
I hope this helps at least a little bit. If I come up with any more ideas, I'll pass them along.
Happy New Year; which you've already beat us to.
Kerry
As I’ve often said, it is possible to save quite a bit of money on the more expensive software, such as QuickBooks and Microsoft Office, by buying them from eBay sellers. I have saved substantial amounts of money that way over the past several years, including some times where I bought an earlier version of a program in order to be able to buy the newest version from the manufacturer at their much lower upgrade price.
The most expensive version of QuickBooks is their heavy duty Enterprise Solutions (ES), which used to come only in a 10 user version that cost $3,500. I have been using ES for our books here since it first came out, but only because I received a free copy as part of my ProAdvisor membership. For accountants who are not ProAdvisors and who have clients using ES, it could get expensive being able to support them. Luckily, Intuit recently started expanding the flavors of ES, offering versions for 5, 10, 15 and 20 simultaneous users, costing as much as $9,000 plus another $2,000 per year for their service plan.
The best aspect to this product line expansion, from a purely selfish sense, has been the introduction of a special single user version for professional accountants that allows us to work with client files from any of the other larger programs. It retails for only $849.
I am discussing this now for an even more selfish reason. As a beta tester for the 2008 program, Intuit sent me a free copy of this special accountant version of the newest Enterprise Solutions program. Since I already had a copy as part of my ProAdvisor update, this redundant copy has been put up for sale on eBay by Sherry at a huge discount off of the retail price. The auction expires next Sunday, January 6, 2008.
From a client:
Kerry, I have completed my books on last year, 2007 for our corporation. I purchased a winzip file to send compressed messages but I am having a difficult time useing it. I have someone coming to help me in the morning if that does not work I will copy to a disk and drive it up to Harrison tomorrow myself. I will let you know.
My reply:
There is no need to use WinZip for QuickBooks files. We used to use that for Quicken files because that program had a terrible backup function. QuickBooks has its own built in compression tool when you make Portable Company Files (QBM) or Accountant's Review (QBX) copies.
Go into the "File" menu, then to "Accountant's Copy", then "Client Activities", then "Create Accountant's Copy"
Save the QBX copy to a folder on your computer where you can remember its location. Then either attach it to an email to me or upload it to my online service.
To send the file to me, or upload it to my online server, check out the instructions on my website.
Good luck.
Kerry
From the client:
Kerry, I think I did what your inst. told me to do. If this is not correct please have Sherry let me know when we can get together on a phone call, and she can waik me through this process. At any rate thank you very much for all your help and info. Look forward to heraing from you.
I wrote back:
You sent the 15.3 mb full size QBW file.
I will look it over.
Next time, please make either a Portable Company File (ending in QBM) or an Accountant's Review copy (ending in QBX). Both of those are only about one tenth the size of the QBW, making for much faster uploading and downloading.
Thanks for your help with this.
Kerry
Q:
Subject: verification
Hi,
I haven't downloaded this yet as it didn't come directly to me from intuit.Can you verify it's for real? I am thinking it is...
A:
Surprisingly, I didn't receive that message myself. I went to the Intuit website and it does look legit.
However, even though I have more Intuit programs installed on my computer than anyone I can think of, I am not planing to run this special patch from Intuit. I do frequently run the Update function inside QuickBooks, as well as the Tuesday Microsoft patches via Windows Update; so I will let those patches take care of this issue.
If you're not experiencing any of those special problems with your QuickBooks, you should be able to bring everything the more natural way, as I am doing.
Thanks for checking with me before you accepted that Intuit patch.
Kerry
Follow-Up:
Thanks,
UPDATE: I was just going through my incoming email backlog and found that I had actually received this security alert directly from Intuit on 12/11/07.
Q:
We have faxed a check to you guys for our tax prep fee for several years now. I would like to be able to receive faxed checks from my out of state clients, but we, and our bank, don't know how to get set up to do that. Is that something that our Quick Books Program can do for us? We would really appreciate any help or direction you could give us about doing that.
Thank you,
A:
The ability to accept faxed checks to create new check drafts is just one of the various features that make the VersaCheck program a very handy tool. I haven't had to buy any preprinted checks for any of our accounts for the last ten or so years. I buy blank check stock from the same company that makes VersaCheck and use it to print up blank checks to hand prepare, as well as the check drafts. It also comes with a driver that allows checks to be printed from QuickBooks right onto blank check stock.
They also sell printers and toner with magnetic ink, but I have never used any of those. I have always printed the checks and drafts on the same laser printer with regular toner that I use for all of my other printing and they clear the banks just fine.
I actually had my first rejected check draft just a few weeks ago for a check a client had faxed in on an insurance company account. All of the other check drafts drawn on banks all around the country have been accepted with no problem; so that was a fluke.
You can see more info and buy the programs via the company's website.
While they have a growing number of versions of their program, I have been using their Gold one for the past six or seven years and it has been working perfectly.
Just like QuickBooks, there is a new version of VersaCheck released each year. Also like QuickBooks, you don't need to buy the new ones and can make do with an older version for several years if you don't want the newest features.
Good luck. I hope this helps.
Kerry
Follow-Up:
Kerry,
Thank you so much for the information. The only program I had found info about was from a company called CheckWriter. It looks like the VersaCheck program does substantially more than CheckWriter, and even costs less. This looks like the product we've been needing.
Thanks again for your help and the information.
Q:
Subject: Quick BooksI seen your page on QB and I was wondering if you know how many years I can use my QB Pro 2007?
Simply Accounting stated on the box that it can save up to 7 years. Is there any limits in QB2007?
Kindest Regards,
A:
None of the regular QuickBooks programs has ever had any limits on how many years' data you could keep in a single company file. It's just a matter of your hard disk space. I actually prefer to keep as many years as possible in the same file for easier reporting and comparisons of multiple year data. I currently have the entire history of our first corporation, covering from 1994 to the present, in a single QBW company file and have every intention of letting it accumulate forever.
I encourage all of our clients to do likewise. I frequently need to look up older data. This has especially been useful while preparing 2006 tax returns and locating the 2003 through 2006 phone bill charges for the special long distance tax credit. Clients who didn't have those back years in their QB files had to accept the measly standard $30 to $40 credit, while those whose data extended back often received credits of over $1,000.
I have no idea of the space limitations present in the two crappy versions of QuickBooks that I advise against using, Simple Start and QuickBooks Online; but wouldn't be the least bit surprised to see limitations in both of them, especially the online version, where your files are stored on the Intuit servers and you have no control over how many years they choose to hold onto.
All of the desktop versions of QuickBooks, from the first one to the current 2008 versions, allow you to accumulate an unlimited number of years of data in a single company file.
I hope this helps.
Good luck.
Kerry Kerstetter
Q:
Subject: QBX File 06Kerry I created a QBX file as requested but at the end it asks you to save it and I did but I don't know were it is now to send it to you. So were does it go after it is saved? Sorry.
A:
You should set up a folder on your hard drive with a name such as c:\QBBackup or SendtoCPA. When the program asks where to save the QBX file, browse to that folder.
When e-mailing that QBX file, browse to the folder while in your email program to locate it.
Or you can upload the file to my online service per the instructions on my website.
Good luck. I hope this helps.
Kerry
Courtesy of the latest Intuit Pro Connection newsletter, we can download the following free PDF files:
Sharing Data in QuickBooks 2008
PDF File (36 pages)
Official Guides for:
Enterprise Solutions 8.0 (593 pages)
Premier 2008 (593 pages)
Q:
Subject: stock sales on quickbooksI read what you wrote regarding tracking stock investments in Quickbooks. You make it sound very easy to record a stock sale and purchase for that matter. And I am sure it is. However, for the weak at heart or maybe the mind, I don’t get it.For example, say I buy 100 shares of IBM for $50 in June 2000. I should have recorded that under Stock Account: IBM Other Asset Correct?Then I sell it in June 2007 for $100. I should record it under Stock Account: IBM Income account ? and then I don’t understand how I transfer the cost of the stock, the $5000 to a Cost of assets Sold contra-income account. Is that a journal entry? Don’t get any of that.If you could make it even easier for someone like me, I would be very appreciative.Thank you,
A:
You are on the right track; and I'd be glad to elaborate in more detail.
First, you need to understand that there is no one perfect way to do this and any game-plan you use should be reviewed with your personal professional tax advisor to ensure that you are in synch with what works best for his/her needs in regard to tax planning and tax return preparation work. My comments represent how I prefer to see these transactions entered to make it easier for me to have the critical data I need to prepare my clients' tax returns as efficiently as possible.
You should have an Other Asset account called something like "Stocks." While some people do set up a sub-account for each stock they buy, I find that to be overkill that ends up making the chart of accounts and balance sheet too large and unwieldy. One main account will work fine as long as you are thorough in the info you enter for each transaction. For purchases, be sure the proper date is used for the QB entry and the Memo section is filled in with the name of the stock and the number of shares.
What many people overlook is reinvested dividends when keeping track of their stock investments. To properly do this, you need to use the General Journal to enter the dividends as a credit to Dividend Income and a debit to the Stocks asset account. Be sure to fill in the memo sections of both sides of the entry to record the relevant details, including name of the stock and number of shares purchased. With most DRiPs (dividend reinvestment plans), the new purchases are fractional shares; so you need to be careful when entering this.
For the sale of stocks, you do use the General Journal to transfer the cost of the shares sold from the Stocks asset account to the AssetCost contra-income account. Again, be sure the date of the entry matches the sale date and that you fill in the memo section with all of the relevant data, including name of stock and number of shares. If the number of shares sold is different than any single purchase, you will need to make an entry for each lot sold so you can keep track of which sales are long term (over 12 months holding) and short term (under 12 months).
I hope this helps you better understand how to record stocks in QuickBooks. These comments are by necessity general in nature. Your personal professional tax advisor should be able to give you more specific tips for your unique circumstances.
Good luck.
Kerry Kerstetter
From a client using QB 2007:
Hi Kerry,Any insight on the reconciliation changes in the 2008 version yet?Thank you, sir!
My Reply:
I haven't had a chance to experiment with the 2008 QB program's reconciliation capabilities yet. After I get some more tax returns finished, I'm hoping to be able to do more testing on it. From the release notes from Intuit, I'm not really expecting much change from your perspective because they seem to have focused more attention on making it easier for us to perform reconciliations on the Accountant's Review copies of files that we receive from clients rather than the other way around.
I'll let you know how it looks.
Kerry
From a client's bookkeeper:
Kerry,
The clients need their Personal first, We are still working on the other two accounts. They use Quick Books 2007 and we are still in the learning curve for it. Do you want a QBX File or QBM? I am not clear on how to import changes from a edited QBM back into the master QBW or even if you can. I really don't want to have another mess on my hands.
My Reply:
I'm not aware of any way to import changes from a QBM or other kind of file; so if you plan to continue working on their stuff while I have their data, you will need to send me a QBX copy of the file.
If you won't be working on their personal stuff while I am, you can send me a QBM file that will make it easier and faster for me to make a lot more kinds of changes. You will then have to use the revised QBM file that I will be sending back to you.
Thanks for your help with this.
Kerry
Q:
Subject: Quicken Home and Business 2007
Kerry,I am trying to use Quicken Home and Business edition 2007. I have a consulting business, which comprise of two business I invoice and get paid from, my wife has a small beauty shop and my personal accounts are in the same data file. I doing a good job in inputting the data and keepping my account correct. I doing a really bad job on the reports and making sense of the data. I think I have my account set up wrong but they balance. Do you hirer out to help people like me? or know of someone that helps? Let me know.
A:
For various reasons, I no longer support the use of Quicken and haven't actually used it in a number of years; so I can't give you any specific tips on your 2007 program. When the few clients who do use it send me their data in Quicken format, I just convert it into the more reliable QuickBooks format and work with it in that much more useful program.
You can see more details on my experiences with both Quicken and QuickBooks on my website.
Good luck.
Kerry Kerstetter
From a client who uses QB 2007:
Hi Kerry,
I found that I did input the data for the corporate tax yr ended 03/31/06 into Quickbooks.
Would you like me to send an "Accountant's Copy"?
Faxing a check ? Can you receive color ? Do I make a copy, then fax it to you, then mail the original?
My reply:
If you plan to be entering new data into your copy of the data file while I am working on the one you send me, you need to send me a QBX copy of your file.
If you won't be dig anything to your copy while I am working on my copy, please send me a QBM copy.
For several years, I have been using a program called VersaCheck that takes the bank info and produces substitute check drafts that I then deposit just like the originals. It will go through your bank account just like a normal check. There is no need to also mail the original check and any color is irrelevant. I just need to be able to read the info on the check.
Thanks for your help with this.
Kerry
Q:
Subject: Line Of Credit vers Proprietors InvestmentKerryMoney to pay the business bills that is obtained from an equity line of credit, should they be entered in to the books as proprietors investment ? Or as a line of credit ? Which is the most beneficial? Is there any difference?
A:
There is only one way to properly do this. Running line of credit activity through the owner's equity account makes no sense whatsoever.
Each loan, whether it's a regular type or a line of credit, should have its own liability account set up in your QB. The payments you make need to be split between the principal portion, which is posted to that loan's liability account, and the interest portion, which is posted to the Interest Expense account. Use guesstimates of the breakdown when you make the payments and then correct them when you receive the bank's details on how they were applied.
On a periodic basis, the loan balance should be reconciled to the statement from the bank by using the Reconcile feature that is built into QB.
The same thing applies to credit cards. Each one should be set up with its own account in QB and each charge and payment should be posted into it. Each monthly statement from the credit card company needs to be reconciled with your QB to make sure everything is properly picked up.
I have discussed this in the QuickBooks tips I have posted on my website.
Good luck. I hope this helps.
Kerry
What's New in QuickBooks 2008 – From Intuit
Accountant's Copy Rules for QuickBooks 2008 – PDF documents that can be downloaded from CPA911. Includes the following info on the most annoying feature of the QuickBooks 2007, the inability of clients to reconcile accounts while an accountant’s copy is in existence.
Bank Reconciliation QuickBooks permits clients to reconcile accounts (bank and credit card) while an Accountant's Copy exists, but when the reconciliation process starts, you see this message.
The reconciliation is undone when you import the accountant's changes whether or not the accountant reconciles the accounts in the Accountant's Copy. For clients who do not ask accountants to perform reconciliation tasks, this can be annoying (especially if the accountant doesn't return the Accountant's Copy in a timely fashion). We expect QuickBooks to change this paradigm during an update to QuickBooks 2008.
Critical bugs plague QuickBooks' online service, warns US-CERT – I have frequently discussed why using the online QB service is not advisable. Here’s one more reason.
Q:
I have than small business for septic company what chart of accounts I would need to enter into QuickBooks Pro. If you would be so kind to help me out with this it would really help me to setup this company.
Thank you, for your time and cooperation with this matter
A:
There is no such thing as a one size fits all chart of accounts that accommodates every business, even in the same industry.
The QB program comes with several pre-configured charts of accounts. The best thing is to just start with the one that is closest to your industry and then modify it as you go.
You should be working along with your professional tax preparer to make sure that the Classes and Accounts in your QB data file dove-tail with your tax returns; so having him/her look it over and fine tune them will make everything go much more smoothly in regard to tax planning and preparation.
Good luck.
Kerry Kerstetter
Q:
Subject: Running multiple versions of QuickBooksDear Mr. Kerstetter,Your very helpful web page came up when I searched Google for my multiple versions question. I have 2003, 2005, 2006 and 2007 installed. A few years ago, I ran into a problem when I allowed one version to update. Whenever QuickBooks starts, it asks if I want to update the file. I respond with "Later" now, because when I updated before the computer decided the version I updated was the only version installed and wouldn't run other updates.Have you had a similar issue? If so, how did you resolve it? If not, would you recommend I continue to decline the updates? Finally, if you recommend I decline to update, do you know of a way to stop the programs from asking to update every time?Thank you for your time and information.Best regards,
A:
Unfortunately, such pop-up update notices are part of the experience of running multiple versions of QB. Until a few years ago, when that happened, I would uninstall and the reinstall that version of QB and that annoyance would go away.
However, I am running so many versions of QB on my main computer that I stopped doing the uninstall & reinstall thing because it was taking up far too much of my time. I just hit the "Later" button and the programs seem to work fine. I'm not aware of any way to turn off that pop-up message, so I just live with it and still consider it less time consuming than having to frequently uninstall and reinstall the programs.I'm sorry I couldn't be more help.
Kerry Kerstetter
Follow-Up:
Kerry,Thank you for your reply. It is helpful to know that I'm not alone, nor am I doing something wrong by clicking that "Later" button.Best regards,
As I have mentioned on several occasions, the key to good tax and financial planning is good records. We in the tax profession can only do so much with what we are given by our clients. GIGO - Garbage In, Garbage Out. We have long required our business clients to keep their books using the QuickBooks programs, either on their own or with the assistance of outside bookkeeping professionals.
One of the most time consuming aspects for working on tax returns is cleaning up the QB data so that it provides what we need. This is the case with many professional bookkeepers, as well as people who do their own entry work. I am planning to post copies of many of the tips I send to other QB users on this new blog. I am also hoping to be able to post short mini videos that show how certain tasks are done.
I have to admit that one of the reasons I decided to set up a new separate blog for this topic was so that I could have a chance to play with the new features that the Blogger service has developed which are not available on my old style blog, such as the poll on the right side.
