Archive for March, 2012

A/R and A/P Balances Showing in QuickBooks Cash-Basis Reports

Friday, March 30th, 2012

Understanding QuickBooks Cash-Basis Reports

We often receive queries from readers who don't understand why they see A/R and A/P balances when they select "Cash Basis" in the QuickBooks Balance Sheet report. One reader recently wrote, "I don't understand what's wrong. I run two companies and in one company the cash basis balance sheet shows A/R and A/P balances and in the other company they aren't listed. Have I done something wrong in configuring the company file that's showing these balances?"

If you are tracking inventory, and any receivables or payables involve inventory items, QuickBooks includes those transactions in cash-basis reports.


How to Resort the QuickBooks Accounts List

Wednesday, March 28th, 2012

Resorting the Chart of accounts List in QuickBooks

We receive many queries about problems with the QuickBooks chart of accounts list not displaying in the correct order. Sometimes the problem is in reports (including the balance sheet and the P&L report); sometimes the problem is in the drop-down list of a transaction window.

The cure that usually works is to resort the list. Open the Chart of Accounts window and click the Account button at the bottom of the window. Select Re-sort List. When QuickBooks asks if you're sure you want to return the list to its original order, click OK. Incidentally, the Chart of Accounts window may be displaying the accounts properly, even when reports and transaction windows don't.


How to Avoid Confusion With Multiple QuickBooks Bank Accounts

Sunday, March 25th, 2012

How to Change the Color of QuickBooks Account Registers

In our last newsletter we explained how to change the bank account that was used when a check was inadvertently created in the wrong account. A QuickBooks consultant wrote to tell us that she has clients change the display of the color of the bank registers so they match the color of the physical checks.

To change the color displayed in the bank register, open the register from the Chart of Accounts window. Then choose Edit, Change Account Color from the QuickBooks menu bar. Select a color that matches or comes close to the color of the physical checks. When you open the Write Checks window, the color of the check changes to match the color assigned to the register. Thanks to QuickBooks consultant Liz Fleming for this tip.


Bank Balance is Different in QuickBooks Balance Sheet

Monday, March 19th, 2012

How to Fix QuickBooks Bank Balance and Balance Sheet Mismatches

A reader wrote with the following problem: "When I ran this month's balance sheet, the bank balance differed from the amount displayed in the QuickBooks Chart of Accounts window. I ran the report on the last day of the month, so it's not a date difference. I ran the Verify feature and the file is fine. What could cause this problem?"

When this occurs, it almost always means that the bank balance displayed in the COA window includes transactions dated beyond the current date. Open the bank register and look for post-dated transactions (QuickBooks displays a blue line in the register above transactions dated in the future). The bank balance above the blue line should match your balance sheet amount. One common cause is post-dated paychecks, because many bookkeepers prepare payroll at the end of the payroll period and the paycheck date is later than the last date of the payroll period.

Sales Tax in QuickBooks Budgets

Saturday, March 17th, 2012

QuickBooks Sales Tax Payments Missing from Budget Reports

A reader wrote to complain that her sales tax payments aren't showing up in her P&L Budget Vs. Actual report in QuickBooks. She wanted to know if this is a known bug.

Sales tax is neither income nor expense; it's merely money that passes through your hands on its way to the state. It doesn't belong in a QuickBooks budget. Nor should there be a sales tax Expense account.