Question: I send my bank and credit card statements to my accountant at year end to do my taxes. What benefits are there to using something like QuickBooks instead? Answer: There are lots of reasons. First, in QuickBooks, you are able to write and submit orders to customers and suppliers. From there, you can track…
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Question: I am creating an item in QuickBooks Premier, and it makes me select it as “Tax” or “Non for Sales Taxes.” Sometimes it is taxable and sometimes not, depending on the customer. What do I do? Answer: If an item is ever subject to sales tax in your state, create it as a tax item.…
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Question: Can I just switch from cash to accrual basis in my company? There is a button to do that in QuickBooks. Answer: Generally, you cannot switch your basis from cash to accrual or accrual to cash without a significant and legitimate business reason, and a government sanction, too. That being said, QuickBooks does have…
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Question: I have sales reps that I pay based on gross profit. Can I do these reports in QuickBooks? Answer: Unfortunately, no, QuickBooks does not calculate gross profit by sales rep for non-inventory items, which is 98 percent of our industry. I am working on a solution to this problem for some of my clients,…
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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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