Bookkeeping Advice Archives

When to Reconcile Loans in your Bookkeeping

This article addresses the concept of maintaining your various types of business-related loans in your bookkeeping system. Small businesses will typically be in debt and thus will need to maintain some sort of loan account in their bookkeeping ledgers. There are indeed various reasons why a small business would even carry a loan in the

Vendor Expense Reports for 1099 Purposes

This article deals with utilizing the popular QuickBooks “Expenses by Vendor Summary” report to help ascertain which vendors might be a candidate to process the annual 1099-NEC form for. Typically, when you utilize QuickBooks to help with processing 1099 forms, you probably utilize the 1099 wizard or some other 1099 candidates related report to accomplish

More Bank Reconciliation Issues – Clearing Payments That You Cannot Delete or Alter

This article deals with a particular issue you may run into from time to time when trying to reconcile a bank account. Sometimes a check payment is posted in your bookkeeping software, however, the actual check that clears the bank account is for a slightly different amount. You may be tempted to simply login to

Making Changes to Already-Reconciled Bank Accounts – Part 2

This article continues a series of articles that will deal with the fact that you have decided to make a change to an already-reconciled transaction in your QuickBooks Online bookkeeping company file. Like Part 1 of this series, this examplescenario of this is: You previously received a deposit but did not know where these moneys

Making Changes to Already-Reconciled Bank Accounts – Part 1

This article deals with the fact that you have decided to make a change to an already-reconciled transaction in your QuickBooks Online bookkeeping company file. One scenario of this is: You previously received a deposit but did not know where these moneys came from, so you decided to post as an Uncategorized transaction (deposit) for

Bank Reconciliation Discrepancies

This article deals with bookkeeping reconciliation discrepancies with your bank account. Normally, when you are trying to match a bank account balance to the associated bank account balance in your books, you should be able to match each and every transaction that had occurred within a certain time period. The more often you complete a

Deferred Income

This article deals with the concept of Deferred Income and how to simply convert to regular, or earned, income in your bookkeeping using a journal entry. Deferred Income is simply monies you have received in advance of performing your obligations to earn that income. These obligations can be providing a service or shipping of products

Construction Escrow Disbursed Funds Accrued

This article continues the series of blogs regarding Construction Escrow Accounts. As per the most recent blog about this topic, I will be discussing one popular way in which a Construction Escrow account can be accounting for in your bookkeeping. As stated previously, Construction Escrow funds are disbursed (drawn) only upon request, like a Line

Different Ways to Deal with Construction Escrow Accounts in your Bookkeeping – Part 1

This article deals with Construction Escrow Accounts. A construction escrow account can be viewed similar to a line of credit. A lender loans to you a bulk sum of money, however this money is not disbursed to you all at once. Instead, you must submit periodic requests (such as in monthly intervals) to obtain a

Opening Balance Equity Account

This article deals with the purpose and usage of an equity account called “Opening Balance Equity.” The Opening Balance Equity account is primarily going to be a bookkeeping software invention and thus is automatically created by a bookkeeping software (QuickBooks) whenever you begin a new company bookkeeping (accounting) file and begin posting banking and/or credit