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Archive for March, 2010

Send us your QuickBooks file

March 26, 2010 Leave a comment

Upload your QuickBooks File to us and we will give you a free exclusive video report with our analysis of your books.

Simply click the link on our main site at www.nerdenterprises.com

Oh and hey! If you use QB for mac please save a backup for Windows (we do not have MAC computers in our facilities even though we know QB for Mac very well).

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10 Tips to help you work faster in QuickBooks

March 18, 2010 Leave a comment

  1. Learn the keyboard shortcuts – hold ‘ALT’ and note any underscored letters in any menu items.
  2. Use the tab key to move between fields, Shift + Tab to move backwards between fields.
  3. When doing something repetitive, count your keystrokes (eg it takes 5 Tab key strokes to get from the amount of a check to the account.)
  4. When entering dates you can use a “.” to separate the components – this is faster than using the “/”.
  5. All numeric fields provide for you to perform calculations, just enter a number and then enter an operator (+, -, /, *)
  6. When in a date field or a ref# or check # filed hold CTRL and press an up or down arrow to advance the date or number.
  7. CTRL + 1 Gives you your company file location and in QB 2010 you can copy and paste that into windows explorer for quick access to the file.
  8. In a drop down or date field hold ALT then press your down arrow. Then release ALT and use your arrow keys alone to navigate from there.
  9. Try not to have too many window open – especially in a multi-user environment that really seems to slow QB down.
  10. While reconciling, check off the box at the top right that says “Hide transactions after the statement’s ending date”.

If you want a video tutorial showing you tips 10 X more powerful than these add this to your cart:
QuickBooks Tips and Tricks

Categories: QuickBooks Tips

Download The $2 Paper on Social Media – From Action Plan To Strategy

March 16, 2010 Leave a comment

Social Media – From Action Plan To Strategy

What is My strategy / what do I want?

What can I offer people?

What am I looking for from people?

What are my topics of interest?

Then where do I find the people who meet the criteria set forth above (ie the people who want what I am offering, and the people who are offering what I want)?

This is what you will read and even watch some videos about in this $2 Paper on Social Media – From Action Plan To Strategy

Add this to your cart here I can take you on a brief journey with a year’s worth of my learning all for only $2.

Correcting Customer Payments and Deposits

March 14, 2010 Leave a comment

Don’t miss our live webinar on Saturday March 20 where we go over this and much more in a lot greater detail. REGISTER NOW

QuickBooks – how to correct a customer payment when the deposit has already been recorded.

Why?

What if you find that you made a mistake on a customer payment? Simple right? Find the payment and correct it in QuickBooks. But what if QuickBooks tells you that you cannot make that change because the payment is already included in a deposit? Ok sure, then just go to the deposit and delete it so you can fix the payment. But wait! There are othe    r payments included in this deposit, and those payments are ok! Moreover the deposit may be reconciled so I definitely do not want to delete it! What can I do then? This web cast will answer that question for you.

What?

This can actually be handled in a few simple steps.

  1. Delete the line item from the deposit containing the payment that was recorded incorrectly.
  2. Replace it with a temporary line item containing the same amount.
  3. Fix the payment
  4. Bring the payment back into the deposit
  5. Delete the “place holder” created in step ‘2’

So let’s say we just realized we received payments are recorded a deposit but we accidentally recorded a payment from “David Hughes” that was really from another customer, Erika Pretell. We don’t want to delete the deposit because there are other payments recorded there.

We also never want to delete a deposit that has already been reconciled. How could it be wrong if it is already reconciled? Easy – let’s say you’re a bookkeeper and you’ve been hired to clean up the books of Larry’s Landscaping and supply. You find that Larry really doesn’t know bookkeeping too well. What he has been doing is posting invoices and applying payments, but not recording the deposit, leaving the applied payments in “undeposited funds”. Then when he gets his bank statements he sees that none of his deposits are on the books, so he records the lump sum deposits and books them all to an income account. Well besides having a ton of money sitting in undeposited funds that needs to be cleared out, Larry has now duplicated his income. This is going to make Larry unhappy when he has to pay his taxes on twice the income, but doesn’t have twice the amount of money in his account. Also when Larry presents his Profit and Loss Statement to the bank for a Line of Credit and the bank finds out that his income is doubled there, they will not be too happy and will likely not extend credit to Larry. So it is really important to fix this stuff and it is equally important to know how to fix it without creating an even larger mess. You cannot delete a deposit that has been reconciled – it will through your reconciled balance off, so even if your payment is the only one in the deposit, on a reconciled deposit you cannot delete it, you have to use the method described above and demonstrated in the video.

In this video tutorial we will show you how to correct both scenarios.

Interactive Component Click the symbol to watch / download

Video Tutorial:

Practice

Review this video several times until you really understand the material. Then open a sample company file and practice doing this. Do this 3 or 4 times and you will get it for sure!

Now What?

Now that you know how to do this you can first be aware of and look for situations like these where income is duplicated, and/or a payment was mis-posted on the books and you will now have mastered the knowledge required to correct these issues. You will know how to do this blind.

How to write off a customer balance in QuickBooks

March 2, 2010 3 comments

Hi! This is something that comes up often enough and someone asked the question on twitter, so I thought it would be helpful to post on the subject of how to write off a customer’s balance in QuickBooks. The process can be accomplished in a few simple and quick steps. But first a word on what not to do.

The temptation might be to post a discount on the customer’s invoice to reduce that invoice’s balance to zero. This works in theory, but here’s the problem with that. Ultimately as you create your set of books you are leaving a trail of crumbs for someone else to pick up on and look at later. It may be the person preparing your taxes and it may be someone looking to buy the company who’s books you are compiling as you do the bookkeeping each day. So it is really important to tell the right story. If I discount a customer’s invoice to zero that suggests that everything was ok and I decided for whatever reason to create some goodwill by giving that customer a discount. This paints a very different picture compare with when I am writing off a customer’s balance as Bad Debt because they chose not to pay.

So the correct way to handle this transaction in proper context is to record a journal entry and write the balance off as Bad debt. In QuickBooks it is simple and the video tutorial will demonstrate how to do this. First here is a screen shot of what it looks like in QuickBooks:

Then you have to apply the credit produced by going into Customer Payments and applying the credit of $13,500 for this customer.

Description:

Video Tutorial:

Click to watch the web cast

Payroll

March 1, 2010 4 comments

Payroll can be tricky and is often posted incorrectly. One very good clue that your payroll is off is that your balance sheet shows Payroll Liabilities in it. Or worse, you have negative payroll liabilities. Every time payroll is posted in its entirety payroll liabilities should zero out. At the same time if you double click your payroll liabilities from your chart of accounts you should see entries going in and zeroing out for each pay period. If there is no activity in the payroll liabilities account then you may be suffering from the classic payroll mistake that many bookkeepers make – they book the net payroll as the payroll expense, and the book the tax payment as the employer tax expense. This is not correct.

This video is not the web cast – it is simply a video on payroll the tutorial is further down in the post:

Here is a sample payroll report (A replica I created based on a well known payroll company here in the US):

Figure 1 Click for a clearer image

Payroll is made up of several things. The first thing that happens is that we pay the employees some gross amount. So let’s say that the total payroll for a pay period is $9,462.79. That gross payroll number may be made up of several things. Regular Hourly Pay, Overtime, Salaries, and let’s say Holiday Pay. When it comes to the bookkeeping, that particular breakdown doesn’t usually matter.

Here is what really does matter. In fact if you are looking at a new payroll report format this is the information you want to find in the report and gather for bookkeeping purposes:

Gross Payroll

  • Withholdings
  • Other Deductions (Health Insurance, Workers Comp)
  • Total Taxes
    • Employer Share
    • Employee Share
  • Payroll Fees

There are 3 Payments to record:

  • Net Pay
  • Taxes
  • Fees

The Net Pay is made up of several things:

Gross Pay 9,462.79
Less Employee Taxes (2,298.90)
Less Medical and Other Deductions (54.50)
Net Pay 7,109.39

Payroll Taxes:

Then the payroll taxes have to be figured. This is made up of 2 parts. The remittance of the payroll taxes ($2,298.90 from above) and the employers share of the taxes ($1,393.63)

Total Payroll Taxes are $3,692.53

So the Payment is recorded as follows:

Net Check $3692.53

Split:

Payroll Taxes (employer expense): 1,393.63

Payroll Taxes Payable (to zero out the liability): 2,298.90

Description:

File Download:

Download the excel template from the webinar here

Video Tutorial:

Click to watch the web cast