Question: Can you clarify “Customers,” “Vendors,” “Employees” and “Other Names?” Too often I use “Other Names.” Is that right? Answer: No. It is best to set these up correctly from the beginning. Fixing later is difficult. In this section, QuickBooks allows a name to be used only one time. If you put everyone in “Other…
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Question: Do I need to make changes to my supplier’s PO to match the supplier invoice? Answer: Yes, and making this adjustment is a standard and absolute best practice in our industry. The supplier’s invoice almost always differs from the original purchase order, and it is the final invoice numbers that need to be correctly…
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Question: Why do I have supplier purchase orders that show as open in QuickBooks Premier even though I know I have paid them? Answer: There could be two explanations. First, there are times that your supplier purchase order does not mark all items as closed even though they are paid. To check this, open the…
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Question: My accountant wants me to buy some business insurance. Is that something I should have? Answer: I, too, advise my clients to purchase business liability insurance. It can protect you and your assets in the event of a lawsuit. If you are a sole proprietor, your personal assets are at risk with a lawsuit.…
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Question: I have a few company files set up in QuickBooks Premier from businesses I started but no longer run. How do I delete them from the list of companies to open? Answer: These companies can be hidden but technically not deleted. Select “File,” “Open Previous Company” to see the list of all the companies…
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Question: I use QuickBooks Premier for my distributorship. I also run another small business. Can I use my QuickBooks program for that, too, or do I have to buy Premier again? Answer: You can set up another company or companies in QuickBooks Premier at no additional charge from QuickBooks. You do not have to purchase…
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Question: I am working in QuickBooks Premier. I want to delete an item in a list, but QB will not let me. What can I do? Answer: QuickBooks will only allow you to delete an entry in a list if you have never used it before in your company file. If you have ever used…
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Question: I don’t like reconciling my checking account. Is there really a reason to do that? Answer: Monthly reconciliations are a critical part of your accounting. I could argue that it is one of the most important steps to making sure your records are complete and correct. Every month, you should reconcile each of your…
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Question: My accountant is suggesting things that I know are not legal. What should I do? Answer: I would find a new accountant right away. You do not want to be tainted by the accountant’s lack of ethics and end up owing additional taxes, penalties or worse. There is a difference, however, between income tax…
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Question: How do I record an apparel order with more than one supplier? Answer: We do have complicated orders in our business—none more so than apparel orders. In all orders, I recommend that you use your internal purchase order number to number all parts of the order in your system: customer sales order, supplier purchase…
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