Archive for the ‘Web Casts’ Category

Transferring a credit from one job to another

April 3, 2010 Leave a comment

Sometimes you have a customer who hires you for several jobs. This is great! For one thing it means they like your work. For another thing it means revenues for you and that is the lifeblood of every business. Many of us have been in the situation where perhaps we have more than one job going for the same customer. Maybe a construction company doing build-outs for 2 different locations. Ideally you will want to tell your customer that in order to keep the accounting clean you need to invoice separately and get paid separately. Most customers will appreciate this because they will want to job cost your work separately as well. This is always the cleanest way, but it isn’t always the most practical. Also we have seen plenty of situations like this where a customer over pays on one job and asks you to apply the credit to the other. When this happens we are presented with a problem in QuickBooks. The payment was assigned to the one job when it was originally received, and will show an over payment on that job. If you go to your customer payments screen and pull up the other job, you will not find the credit there such that you could simply apply it. The only way to fix this is through a series of journal entries. I take that back. You could do some QuickBooks gymnastics with credit memos and invoices – but that’s messy. We like clean. Theoretically you would simply book one journal entry debiting Accounts Receivable for the one job and crediting Accounts Receivable for the other so that you could simply transfer the credit and then apply it. Here we run into another obstacle. QuickBooks in order to protect you from yourself does not allow you to post to more than one Accounts Receivable Account or Accounts Payable Account in the same transaction. You could make quite a mess of your books if you don’t know what you’re doing – especially if you don’t know your debits and credits. So in essence you have to accomplish this by splitting it up into 2 entries. How do you do that? Funny you should ask. We set up a clearing account and run it through there. The clearing account always has to be zero before you walk away from the computer or close QuickBooks. If it is not zero something is wrong and all kidding aside you really want to fix it immediately or start over by deleting anything you posted there because it will be much harder to figure out later on. Then you will have to hire us to log in remotely and fix it for you. And we love that, but frankly we would rather you hire us for more interesting things where you will really benefit from the money you spend with us.

So what does this all look like? Well first let’s create the “Clearing Account”. I always set this up as a “Current Asset” – it really doesn’t matter as long as it’s on the balance sheet so you have an account register to work with and I like Current Assets because it puts it near the top of the chart of accounts.

First, open your Chart of Accounts:

Then Add a New Account:

Set it up as an Other Current Asset:

Then Name the account “Clearing”, and choose Save and Close.

Once you have done this you are ready to book the journal entries to transfer the credit over from one Job to the other.

This video tutorial will show you how.


Symbol To Look For:

Video Tutorial:





Staying in Touch with your Customers and prospects in QuickBooks

January 31, 2010 Leave a comment
  • QuickBooks 2010 has an e-mail marketing feature that is worth looking into
    • This one is very cool, actually – it will track information from QuickBooks about your customers and then let you e-mail customers based on various criteria
    • Send a “We miss you” e-mail to customers who haven’t spent any money with you in a while.
    • Send a thank you to customers who have been spending a lot of money with you.
    • Send a welcome e-mail to new customers
  • Or your can do it manually
    • Customer Center show columns and customize
    • Reports – customer lists
    • Customize
    • Export
  • There are also programs like Constant Contact
    • Export your customers from QuickBooks
    • Import to Constant contact and create a list of “Customers”
  • Best Practices when it comes to e-mailing customers and prospects
    • The rules – opt-out, complete contact info in all correspondence
    • Unofficial rules – how not to annoy people
    • In each e-mail you send you want to offer something that will make the reader want to get your e-mails. So using the QuickBooks E-mail Marketing feature in QuickBooks 2010 you can send a welcome e-mail to new customers and offer them something for free as an incentive to come back and spend more money with you. The top spending customers identified by the QuickBooks E-mail marketing feature might be an area where you simply offer them something for free, no purchase required as a thank you. This will of course encourage them to want to continue being a top spender at your business.

Please enjoy the video web cast by clicking the image here:

FREE Live QuickBooks Webinar at 10am Sunday Oct 25

October 24, 2009 Leave a comment

I will be installing and reviewing QuickBooks 2010 right in front of you. It has some pretty amazing features from what I am reading, so this should be pretty exciting.

Click here and go into the ‘Live Webinars’ Meeting room:

How To Account For Return Deposited Items and Returned Checks

September 23, 2009 Leave a comment

Click here to watch the web cast

Sometimes in business and in our personal financial lives we find ourselves in that situation where we have either received a check that was returned for insufficient funds or we’ve written one. In either case the bank will act accordingly and we or our bookkeepers are left with the task of how to record this in QuickBooks or whatever financial software we use. There are some common mistakes bookkeepers make on this and I want to address those as well as the correct way to handle this.

The Difference:
A Returned Deposit Item is when someone writes me a check, I deposit it, and then it bounces. An NSF Check is when I have written a check and it is returned for non-sufficient funds.

Return Deposit Item:
The mistakes bookkeepers often make on this:

  • Delete the original deposit (or line item from the deposit) for the check that was returned.
  • Booking the deduction in the bank account for the amount received from the customer to Bank Service Charges.

Returned Check:

The mistakes bookkeepers often make on this:

  • Delete the check that was written.
  • Record the return of the funds to the account as income.

The correct way to handle these in QuickBooks – Book and entry to offset the original transaction while leaving the original transaction unchanged.

The Returned Deposit Item:

 We want to mirror what the bank does. In the case of the returned deposit item, the bank has already given us credit for the deposit and then subsequently taken the money out when the deposited item was returned for insufficient funds. In QuickBooks terms, this means we record a check to reflect the money being taken out. If this was a check from a customer then we are left wondering where to record the check we write to reflect the act of the bank taking the money back. The key again is to reflect in QuickBooks what the bank did and what happened at large. So we break the transaction down in the simplest components in order to understand how to post it. Here are those components:

  • A customer paid us
  • We deposited that check
  • The bank took it back
  • The customer still has credit for having paid their invoice even though it was taken back.

So when we post the check to reflect the fact that the bank has taken the money away we have to record it as follows:  

  • Date = the date the bank took the money
  • Payee = The Bank (this is how it will show up on the bank statement, not based on the customer name)
  • Account = Accounts Receivable (this puts the customer’s receivable back on the books)
  • Customer: Job – we have to associate the receivable with the customer whose check was returned.

Finally the bank may charge us a fee (which we will pass along to the customer). We can even charge the customer more than the bank charges us – every state has a maximum. This is meant to account for the time we have to spend on the bookkeeping for this. It does pose an inconvenience when someone bounces a check to us. The fees will be taken out separately by the bank and should be recorded in QuickBooks as an EFT check (A check with EFT on the Check # Line). When we charge the customer for it, we can book that to a RDI Fee income account or as a direct offset to the fees we paid the bank. It is cleaner to show it separately as an income item. 

The Returned Check

 Again we want to mirror what the bank does and reflect this in QuickBooks. We wrote a check and the bank paid it (i.e. the money was taken out of our account). When the check was then returned the bank credits our bank account back with the amount of the check that was returned and then charges us a fee, let’s say $20. This will come out separately in QuickBooks and should be recorded accordingly as an EFT Check booked to “Bank Service Charges” and if you wish, a sub-account for NSF Fees. 

Click here to watch the web cast

QuickBooks – The Basics

August 23, 2009 1 comment


QuickBooks – The Basics

Purchase the video tutorial today.


This is a comprehensive beginner course on QuickBooks covering everything from each menu item that you could possibly need to know in order to set up a company file and work with the different types of files as well as enter all sales and expenses. If you are new to QuickBooks this is a complete and thorough beginning. You can pause and resume play so you can watch at your own pace. The entire running time is about 3 hours and 5 minutes, so you know we have covered a lot of ground here.

Below is an outline of what we go over. Please feel free to call us at (866) 945-8070 if you have any questions.

Purchase the video tutorial today.

QuickBooks Inventory Process – how the transactions flow from balance sheet to profit & loss

August 19, 2009 Leave a comment

When you are in the business of selling products it is important to understand how those transactions flow in QuickBooks or any accounting software.

When you purchase inventory you now own something – an asset. This is not an expense. In fact because without the right marketing and customer base, you might never sell it, it is not an expense.

When you sell the inventory you have 4 things that happen:

    A sale = Income

    Inventory moves = reduction in invenory

    Cost of Goods Sold Incurred = that reduction in inventory is offset in effect by recognizing it’s cost (which is equal in amount to the reduction in value of inventory)

    Either a payment or a receivable = either I get money or someone owes me money for the sale.

The difference of course between what I sold it for and my Cost of Goods Sold (COGS) is the profit on that product sale.

In this web cast we go over how this works using QuickBooks – the accounting & bookkeeping concept is the same regardless of whether you use QuickBooks or something else.

Please enjoy the web cast by clicking here:

QuickBooks Real Estate – accounting for the return of a security deposit

August 19, 2009 Leave a comment

Last week’s web cast went over how to account for a security deposit received. This is a follow up to that web cast in which we go over how to account for the return of the security deposit, particularly where you have to withhold monies to cover for damages. We also discuss the issue of properly formatted financial statements. When you pay a company like ours to get it done “right”, you save money because you are able to get that line of credit at a better rate or become more profitable because of your ability to better analyze your business, what is working, and what isn’t.

We also discuss how we are able to work with companies to provide a much higher level of service compared with what you get with your average bookkeeper. If you want financial statements properly formatted so you can get financing with your bank, you want to make sure that you hire someone like us who knows more than just how to post a check or bill and what account it goes to. You want someone who understands QuickBooks and accounting together such that you get the best result in terms of financial statement presentation.

Please enjoy the video tutorial by clicking here: