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Financial Guidance to Help Your Business Succeed

Archive for the ‘QuickBooks®’ Category

Receiving Payments from Customers in QuickBooks

Posted by admin On December 2nd

Receiving Payments from Customers in QuickBooks

Depending on the situation, there’s more than one way to record a payment in QuickBooks. Here are your options.

There are undoubtedly some QuickBooks tasks that are more enjoyable than others. It’s no fun paying bills, for example, and making collection calls on unpaid invoices can be downright unpleasant.

But you probably don’t mind recording payments after all of your hard work creating products or providing services, sending invoices or statements, and generating reports to make sure you’re on top of it all.

QuickBooks offers more than one way to document customer remittances, and it’s important that you use the right one for the right situation.

Defining the destination

ImageProxyServlet 20     Figure 1: Uncheck the box on the farthest right if you think you may want to direct payments to other accounts sometimes.

 

Before you begin receiving payments, you need to make sure they’ll end up in the correct account. The default is an account called Undeposited Funds. To make sure that this setting is correct, open the Edit menu and select Preferences, and click the Company Preferences tab.Use Undeposited Funds as a default deposit to account should have a check mark in the box next to it.

If you think you’ll sometimes want to deposit to a different account, leave the box unchecked. Then every time you record a payment, there’ll be a Deposit to field on the form. Talk to us if you’re planning to use any account other than Undeposited Funds, as you can run into serious problems down the road if payments are earmarked for the wrong account.

The right tool for the job

Probably the most common type of payment that you’ll process will come in to pay all or part of an invoice or statement that you sent previously.

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 Figure 2: You’ll record payments on invoices you’ve sent in this window.

 

To do this, open the Customers menu and select Receive Payments. In the window that opens, click on the arrow in the field next to RECEIVED FROM to display the drop-down list, and choose the correct customer. You’ll see the outstanding balance. Enter the amount of the payment you received in the AMOUNT field and change the date if necessary. Click the arrow in the field next to PMT. METHOD, and then select the type of payment.

If you established a credit card as the default payment method in the customer record, the card number and expiration date will be filled in. If not, or if a check was submitted, enter the information requested.

Any outstanding invoices will appear in a table. Make sure that there’s a check mark in front of the correct one(s). If the customer only made a partial payment, you’ll have to indicate how you want to handle the underpayment. Here are your options:

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Figure 3: You can select how to handle partially-paid invoices here.

 When you’re done, save the payment.

 

Instant income

There may be times when you receive payment immediately, at the time your products or services change hands. In these cases, you’ll want to use a sales receiptOpen the Customersmenu again and click Enter Sales Receipts.

Select a customer from the drop-down list or add a new one, then fill out the rest of the form like you would an invoice, selecting the items and quantities sold, and indicating the type of payment made (cash, check, credit).

 

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Figure 4: Fill out a sales receipt when payment is received simultaneously with the sale.

 

Other scenarios

 These are the most common methods of receiving payments from customers, and you may never have to do anything other than simple payment-recording and sales receipts.

But unusual situations may arise that leave you stumped. For example, a customer may want to make a partial, advance payment before you’ve created an invoice or at the same time you’re entering it. In a case like this, you’ll have to create a payment item so that the money you’ve just received is reflected on the invoice. Or you may get a down payment on a product or service, or even an overpayment.

Let us help you when such situations occur. It’s much easier -and more economical for you – to spend some time with us before you record a puzzling payment than to have us track it down later on. We’ll help ensure that your money makes it to the right destination.

Say Good-Bye to 2012 and Ready QuickBooks for 2013

Posted by admin On December 18th

 

Regarding Year-End: QuickBooks has been hard at work for the past 11+ months, recording and tracking and storing all of that financial data that you’ve entered so faithfully.

But when you turn the calendar page and make a new start January 1, your accounting software could use some closure on the year that’s just passed. Here are some actions you can take to ring out the old and ring in the new. There’s more you can do (we can help you with the advanced activities) but we’ll just hit the highlights here.

  •  Reconcile, reconcile, reconcile. Yes, we know it’s not one of your favorite chores, but we really like to see all bank and credit card accounts reconciled by the end of the year if at all possible. Void all checks necessary and enter missing transactions.

 

Figure 1: You can make yourself crazy looking for a nickel when you’re reconciling but it’s a critical function.

  • Make accrual adjustments. This is complicated, and it only applies if you accrue payroll and liabilities or prepay expenses that are then carried as assets. We’ll need to create journal entries for you.
  • Close your books. This is totally optional. It depends on whether you want to lock 2012 data to everyone except those who have the password and permissions. If you don’t close them, you’ll have easier access to last year’s transaction details. Regardless of what you chose, QuickBooks will automatically make some year-end adjustments.
  • Do a physical inventory. Then compare this with what QuickBooks says. Reports | Inventory | Physical Inventory Worksheet. 


Figure 2: It’s good to match up your physical inventory count with QuickBooks occasionally, and the end of the year is a good time as any.

  • Run income tax reports. As you know, QuickBooks lets you assign tax lines to tax-related transactions. Use the Income Tax Preparation Report and the Income Tax Summary Report. Let us know about any errors or omissions.
  • Check W-2 and 1099 data. You can’t create these forms, of course, until after your final 2012 payroll, but you can get a head start. Ask employees to verify their names, addresses and Social Security numbers for accuracy. Also, make sure that your EIN and SEIN are correct, as well as company address.
  • Clean up, back up. We can monitor the health of your QuickBooks data file anytime. But year-end is a good time to scrutinize your software’s performance. Has it slowed down, started crashing or returning error messages? We can troubleshoot to find the problem and clean it up. We’re sure you’ve been backing up your file faithfully, but archive all of 2012 and store it in a very safe offsite location — or use Intuit Data Protect for online storage.

Figure 3: Frequent backups are critical, but you should be sure to have a copy of your entire 2012 data file stored somewhere safe.

  • Double-check tax liabilities. If you’re handling your own payroll, look back to see whether all of your payments and filings have been completed.

Thanks for another year.

Again, these are suggestions. QuickBooks does not require you to do any of them. There’s more you can do, and you will need assistance with some of these. So let’s set up a early 2013 meeting to get you started right in the new year.

We want to take this opportunity to thank you for letting us serve your company in 2012. We certainly appreciate your business, and we’re happy to do what we can to help your business prosper.

P.S. It’s not too early to think about taxes so let us know if you want to get a jump on planning and preparation in January. 

© 2012 Michele M. Hoover, CPA. Alexander & Hoover, P.A., Certified Public Accountants, specializes in providing a wide range of diversified accounting, tax, finance, and consulting services to individuals and businesses. 

To learn more, contact Michele M. Hoover, CPA at 239.481.4114 or visit http://www.alexanderhoover.com