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Archive for the 'Preferences' Category

How to Assign Sales Tax Codes in QuickBooks QuickTip

Friday, October 12th, 2012

Assigning New Sales Tax Codes in QuickBooks

QuickBooks uses sales tax codes to track the taxable or non-taxable status of the products and services that you sell, and of your customers. QuickBooks starts with two sales tax codes—Tax (which means liable for sales tax) and Non (which means not liable for sales tax). For many businesses that’s enough. But in some cases those two tax codes aren’t enough, because some taxing authorities want more information—such as why a customer isn’t liable for sales tax; is a customer nontaxable because it’s out of state and the rules say you don’t have to collect taxes for out-of-state sales, or is the customer nontaxable because it’s a nonprofit organization, or a government agency? If your state requires this information, you must create tax codes to match the reporting needs required by your state. For example, you could create an NPO code for nonprofit organizations, or a GOV code for government agencies that don’t pay tax. To assign sales tax codes for sales tax in QuickBooks:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Sales Tax icon on the left pane and click the Company Preferences tab.
  3. In the Assign Sales Tax Codes section in the middle of the page, click on the Taxable Item Code drop-down list and select <Add New> to open the New Sales Tax Code dialog.
  4. Enter the name of the new code, using up to three characters.
  5. Add a description to make it easier to interpret the code.
  6. Select Taxable if you are entering a code to track taxable sales or select Non-taxable if you’re entering a code to trace nontaxable sales.
  7. Click OK to save this code.

 

 

How to Enable Sales Tax in QuickBooks QuickTip

Monday, October 1st, 2012

Set Up a Sales Tax Item in QuickBooks

If your business collects sales tax, you must set up your sales tax preferences in QuickBooks. QuickBooks uses the Sales Tax Items to calculate the Tax field at the bottom of sales forms and to prepare reports for tax authorities. When you enable sales tax in the Preferences dialog, the first step is to specify the most common sales tax, which means you must create a sales tax item in QuickBooks. To do this:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Sales Tax icon on the left pane and click the Company Preferences tab.
  3. Click the Yes radio button in answer to the question Do You Charge Sales Tax.
  4. In the Set Up Sales Tax Item section, click the button labeled Add Sales Tax Item to open the New Item window. Sales Tax Item will be preselected in the Type drop-down list.
  5. Enter a name for the sales tax. [You can make it descriptive. For instance, use your state abbreviation if your state has a single sales tax structure.]
  6. QuickBooks has an optional space for more information in the Description section for this sales tax.
  7. Enter the sales tax rate.
  8. Select the Tax Agency That You Collect For using the drop-down list if you have already created a vendor for the tax agency. If the vendor does not yet exist, select <Add New> from the drop-down list and add the tax agency to your vendor list.
  9. Click OK to return to the Sales Tax Preference dialog.
  10. When QuickBooks asks if it should configure all of your existing customers, non-inventory items and inventory items as Taxable, say Yes if most of your customers and items are taxable.

How to Set Up Aging Reports in QuickBooks QuickTip

Thursday, September 27th, 2012

QuickBooks Due Date or Transaction Date Reports

QuickBooks can generate your aging reports either by using the due date of your invoices and bills, or by using their transaction dates. Aging reports track unpaid invoices or bills by showing how much is currently due and how much is overdue. You can tell QuickBooks whether you want to generate your accounts receivable and accounts payable aging reports starting from the due date on your invoices and bills, or from the date you wrote an invoice or received a bill. To specify which type of aging report you want QuickBooks to generate:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Reports & Graphs icon on the left pane and click the Company Preferences tab.
  3. In the Aging Reports section, choose Age From Due Date or Age From Transaction Date by clicking the corresponding radio button.
  4. Click OK to save this setting.

Assigning Accounts to the Statement of Cash Flows Report in QuickBooks QuickTip

Saturday, September 22nd, 2012

See Which Accounts QuickBooks Uses for Reports

In QuickBooks, a Statement of Cash Flows is a report that displays the history of your cash position over a period of time. It is an accrual report that self-modifies to report on a cash basis, and it shows you the adjustments that were made behind the scenes to provide cash-based totals.  QuickBooks allows you to choose which accounts you want to use to display the automatically generated Statement of Cash Flows reports—but you shouldn’t mess around with the available selections without checking with your accountant. To see which accounts QuickBooks uses for the Statement of Cash Flows:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Reports & Graphs icon on the left pane and click the Company Preferences tab.
  3. Click the Classify Cash button in the Statement of Cash Flows box to display the Classify Cash dialog.
  4. Select or deselect the accounts you want to include on the report.
  5. Click OK when you are finished.

How to Enable Progress Invoices in QuickBooks QuickTip

Thursday, September 6th, 2012

Partial Billing in QuickBooks

In QuickBooks, progress invoices are connected to estimates; you start by creating an estimate for the job, and then as you complete each phase of the job you move items from your estimate to a progress invoice (a partial billing). Using progress invoicing in QuickBooks allows you to invoice your customers in stages, as each invoicing plateau arrives, rather than all at once at the end of the job. You can create an invoice for part of the estimate, and you can show how much of the estimate you have already billed to the customer. In QuickBooks, when you use estimates to create progress invoices, you can track your estimated costs and compare them to your actual costs. In order to do progress invoicing you must create estimates, as the progress invoices are based on the estimates. To enable progress invoicing in QuickBooks:

  1. Choose Edit | Preferences from the QuickBooks menu bar.
  2. Click the Jobs & Estimates icon on the left pane and then click the Company Preferences tab.
  3. Be sure that the Do You Create Estimates box has the Yes box checked.
  4. Choose Yes in the Do You Do Progress Invoicing box, and decide whether or not you want zero amount items printed by checking the Don’t Print Items That Have Zero Amount box, or not.
  5. Click OK to save these options.