Bookkeeping Tips

Line of Credit Bookkeeping

Bookkeeping for a line of credit and perhaps some loans as well, can be confusing when those monthly closing statements list BOTH a Principal Balance and a Total Balance. The question you may have to ask yourself is which balance do you want to reconcile to each month?   Example: A Business Line of Credit

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Grossing Up Payroll in QuickBooks Desktop

This article addresses the concept of grossing up a paycheck and touches on how to do this within the QuickBooks Desktop payroll platform.   Grossing up payroll means that you are going to pay an employee based on the NET wages and not on the gross wages. Typically, when you process payroll, you already have

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How To Apply Vendor Credits to Open Bills in QuickBooks Online

Note: This article assumes you do NOT have the “Automatically apply bill payments” setting turned on in your QuickBooks company settings. Let’s say you process an Unpaid Bills report and get the following results for one of your vendors: Vendor has an unpaid bill in the amount of $300. Vendor ALSO has an unapplied credit

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Posting Payroll Entries – Part 3

Part 3 of this series of payroll entry blogs will look into the payroll entries that can be posited to recognized unpaid payroll tax liabilities.   If you process a payroll for your employees and you decide to wait until a later time to submit the corresponding tax payments to the appropriate tax agencies, then

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Chart of Accounts Setup – Part 4

In part 4 of these series regarding the Chart of Accounts setup, I will delve into thinking about recognizing Overhead Expenses in your Chart of Accounts. Overhead costs, which are sometimes referred to as General Administrative or Indirect Costs, can be fixed in nature, such as rent and insurance, or can be purchases that have

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Posting Payroll Entries – Part 2

Part 2 of this series of payroll entry blogs will look into how you can post manual payroll entries that recognize payroll-related 401(k) obligations.   As a reminder, if you subscribe to a separate 3rd party payroll provider that is NOT integrated into your bookkeeping platform, then you will have to post the payroll expenses

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Apply Customer Credits to Open Invoices

Here is a video showing how to apply customer credits to open invoices:

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Posting Payroll Entries – Part 1

This series of blogs will look into the various ways you can recognize your payroll costs in your bookkeeping platform. If you subscribe to a separate 3rd party payroll provider that is NOT integrated into your bookkeeping platform, then you will have to post the payroll expenses into your financials yourself. There are certainly different

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Chart of Accounts Setup – Part 3

In part 3 of these series regarding the Chart of Accounts setup, I will delve into thinking about the various ways you can recognize Direct Costs in your Chart of Accounts. Direct Costs (also can be known as Cost of Goods Sold or Cost of Services) can be recognized based strictly on what you are

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Reconciling a Paypal Account

If you are constantly using a Paypal payment account to transact both payments from customers and payments to vendors, then you should be treating your Paypal payment account just like a typical bank account in your bookkeeping files. I would recommend that you complete a reconciliation of this account at least on a monthly basis

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