Friday, November 16, 2007

Saving a QBX File


Subject: QBX File 06


Kerry 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.



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.




Thursday, November 15, 2007

New free QB 2008 guides

Courtesy of the latest Intuit Pro Connection newsletter, we can download the following free PDF files:

Sharing Data in QuickBooks 2008

Described here

PDF File  (36 pages)


Official Guides for:

Enterprise Solutions 8.0  (593 pages)

Premier 2008  (593 pages)  


Thursday, November 8, 2007

Posting Stock Sales In QB


Subject: stock sales on quickbooks


I 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,


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




Reconciliations in QB 2008

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.




Wednesday, November 7, 2007


From a client's bookkeeper:

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.




Tuesday, November 6, 2007

Monday, November 5, 2007

Customizing Quicken


Subject: Quicken Home and Business 2007


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.


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



Thursday, November 1, 2007

Which kind of file to send to tax preparer...

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.