I'm very new to bookkeeping and have come across an issue. We had a GIC that came to term and was deposited into our account. I entered it by debiting the bank and crediting the GIC asset account. So far everything looked good on the cart of accounts. This money was then used to pay for a large renovation project but now my net income on my balance sheet and P&L are negative the exact amount of the cashed GIC. So it obviously wasn't calculated as a revenue so it looks like we spent more than we had, but we didn't. Is there a way for this cashed GIC amount to be reflected in the reports? Did I make a mistake in how I entered the cashed GIC? Thank you so much!
Running your business with QuickBooks is such a convenient way to save time and effort with all your accounting tasks. I know how important it is to make sure you've entered all the information correctly so that your bookkeeping is accurate. I'd be happy to point you in the right direction for support with this.
For matters involving accounting advice, it's always best to consult a professional. I'd encourage you to reach out to your accountant to make sure you're given the best possible advice for your bookkeeping needs.
If you're not already connected to an accountant, you can find one in your area here: Find a ProAdvisor. The best thing about ProAdvisor accountants is that they're trained and certified in QuickBooks, so they'll be familiar with the methods you're able to use.
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Have a great day.
I'm really just looking for advice on bookkeeping, not on the accounting side. I just want to know if they way I entered the cashed GIC is correct and why it's giving me a negative balance on my net income. Is the money from the cashed GIC supposed to show up as income? Thanks!
That's something best asked to a professional bookkeeper, Rania008. I want to make sure you're given the best advice and direction possible, and a bookkeeper or accountant will be able to provide that information for you. Whether or not the money from the cashed GIC should be income is something I'm confident they'll be able to answer for you.