Multiple Accounts Receivable Accounts

Do you need more than one Accounts Receivable account? If you have more than one location or profit-center, you might consider setting up other Accounts Receivable accounts.

The procedure is simple. Just add a new account to your Chart of Accounts. Choose Accounts Receivable for the Type of Account. Give the new account a different name than the original Accounts Receivable account. You might want to change the name of the original Accounts Receivable account. An example would be to have an Accounts Receivable-Downtown Location and an Accounts Receivable-Uptown Location. You now have two Accounts Receivable accounts. Read more

How Do I Record an NSF Check From a Customer?

It would be great if every transaction was quick, simple and easy. However, we live in an imperfect world. There is a chance that once in a while, a customer’s payment will bounce. Before the bounced check, your QuickBooks records showed that the Customer’s balance was zero. Now his balance has changed. Next time this happens to you, try this four step process. Read more

Dealing with QuickBooks Retained Earnings

QuickBooks deals with Retained Earnings in a very unique way. In QuickBooks, Retained Earnings is calculated on prior year profit and loss transactions. It is recalculated any time you run financial statements. If you look at the Chart of Accounts, you will not see a balance in Retained Earnings. If you double click on Retained Earnings in the Chart of Accounts, you get an Account Quick Report, not an Account Register as you do on any other account. The only transactions displayed in the Quick Report will be the end of year closing entries.

If your client makes an entry in a prior period, it will change the balance in Retained Earnings. Since Retained Earnings does not produce an Account Register, you are not able to see what changed the balance. Read more