Using QuickBooks®
 Accounts Receivable QuickBooks Tips

QuickBooks for Dummies
 

$15.39

<

Take control of your finances!

as low as $29 Spend less time with your 1040 taxes Walks you through your returns. Imports from Quicken, QuickBooks,  M. Money. Alerts to tax changes & opportunities

Which TurboTax is right for you?

  
QuickBooks Support
that fills the gaps!

Would you like someone to help you fine tune QuickBooks, explain what reports work best, point out where the mistakes are and how to correct them? What if this person understands taxes, payroll, and business management & can provide QuickBooks help, QuickBooks training, create organization, and offer solutions for a low price? 

Call 800-216-0763 for a demonstration

Do-it-yourself ( 'ers) look no further - we fill in the missing links that the books fail to mention!  Our services are more than a check-up, they are a jump-start on the climb to business success.  Learn more

Use QuickBooks and TurboTax to file your own business tax return under the guidance of a seasoned CPA  & QuickBooks Pro Advisor  Learn more

Most companies will eventually deal with the customer who bounces a check. To make your reconciliation an easier task, we suggest the following procedure:

1.  Leave the original "receive payment" transaction as is.
2. Record a new receivable for the amount the customer still owes to you: From the customer menu select "enter statement charge".  Select the customer account. Enter the new transaction as follows: Item- enter a new item "Bounced check" (set up the item as an other charge, code the new item to the bank account "company checking account"). Enter the amount of the bounced check and in the memo enter the customers bounced check number.
3.  Enter a second "statement charge" transaction on the customers account using a new item called "bounced check fee" for the amount the bank will charge you for the bounced check bank fee. The new item will be an "other charge" and coded to account "bank charges" or "other income" account.
4.  Reduce your checking account for the amount the bank will charge for the bounced check. Use "write checks" or enter directly into the bank account register.  The payee name is up to you, but I use "bounced cust ck bank charge" (vendor). code to account "bank service charges" and enter the customer name
5. Are you re-depositing the check?  From the customer menu select receive payments, choose the customer name, and apply to the amount entered in step 2 above. In the memo field type "redeposit".  Top

Purchase and sell to the same company

 (bartering)

1.  Set up a new bank account called Barter account in your chart of accounts.
2.  Record your sale on an sales receipt, invoice, or statement charge. Enter a "receive payment" transaction to remove the Invoice or statement charge from the customer's account. Be sure to select "deposit to: barter account" on the sales receipt or receive payment transaction.  Enter a memo or description explaining the barter and the vendor name & invoice number.
3.  Enter the vendor charge using enter bills or write checks. Enter in the memo "barter and your invoice number which the adjustment is applicable to. If using an "enter bill, you will need to use a pay bill transaction to remove from accounts payable. On the pay bill transaction, in the lower left of the screen is the field to choose the bank account "barter account". If writing a check, change the bank account to "barter account".
Top

• Receive notification when your customer has viewed the e-mailed forms
• Send automatic payment reminders for outstanding invoices
• Provide customers with an online Customer Account Center for viewing their account information on the Web

To use the free service, in the activity window (invoices, statements, estimates) click on the email icon > click on send> click on send now.  For a screen shot view on how to set-up your free e-mail service with QuickBooks Click here  The first time you will be taken to a page on QuickBooks website to register your e-mail address. You will need to have your internet connected.  There is no option to e-mail a purchase order from QuickBooks 2003 but later versions do include this option. .  See E-mail reports on our Quickbooks Add On webpage for other options.

From the receive payments window, select the invoice to be written off, click on discount. From the discount window enter the amount to be written off and select "bad debt expense" as the account. This write-off method will not adjust the liability included for sales tax on the invoice. Neither will it reduce the sales reported on your sales by item reports. Therefore a more comprehensive method is to use a credit memo. Plus you may need to set up a new item called "bad debt write-off taxable " – Item type = other charge, account = bad debt expense, tax code = tax . To write off bad debt that did not include sales tax, set up a second item called “bad debt write-off non taxable. First create a credit memo with the tax or non taxable bad debt item and save. For versions 2005 and later, a POP-UP will ask you if you want to link this to an invoice. For earlier versions, at the customer payment window, highlight the invoice to offset with the credit memo and click the Set Credits button
.
Are you entitled to a bad debt deduction? If a customer does not pay your invoice, that bad debt may or may not be deductible; it depends on a number of factors. If your business sells goods, you can typically deduct the cost of goods you sell but are not paid for as a bad debt. However, before you can claim a bad debt write-off, the IRS requires that you take reasonable steps to collect payment. That can include giving the debtor written warnings or going to a collection agency or small claims court. Since a bad debt deduction can generally only be taken in the year in which the debt becomes totally worthless, you should step up your collection efforts (and document them) if you have some bad debts you want to write off this year

Top