Setting Up My Business in QB

joanneVenus · ‎October 24, 2023

Hi,

I am trying to set up our company business in Quick Books and not having an accounting background is making this difficult. I've watched videos and tried to work it out but am struggling to do what should be simple. Hoping someone on here can help. Let me explain our business and my rationale for what I've done so far and then what I'm trying to do.

We are a mobile audiology practice that has 4 providers. At this point we exist from insurance plan referrals. Insurance company refers a patient. One of the providers provides the service. The insurance company is billed a fitting fee. Payment of fitting fee on behalf of the patient is made to our company. Our company then pays the provider 60% of that fee.

I have set up all 4 providers as vendors and set them for 1099 and also set their pay rate at 40% below the fitting fee rate. I've entered all the fitting fees under lists so they are drop down that we can select. I've set the insurance companies as customers and then entering patients as jobs under the customer.

Professional services should be both an expense and an income -- correct? If so, how to I set that? If not, what do I do?

I need to be able to tie the job billed to the insurance back to the provider who receives the payment for service rendered. That's where I'm struggling. Do I create a bill for each provider when they have a fitting fee that we invoice insurance for? If so, how do I connect it to the job? I keep looking at the forms and can't figure out what I've missed so I have a drop down to tie them.

Thanks for your help

Joanne

GlinetteC · ‎October 24, 2023

Thank you, Joanne, for joining our Community and selecting QuickBooks as your trusted accounting partner. I can share some insights regarding your concerns.

In QuickBooks, the Chart of Accounts provides a comprehensive list of all the accounts associated with your company. It offers various account types that allow you to categorize and organize your transactions effectively. You can check this article to learn more: Work with the chart of accounts in QuickBooks Desktop.

Concerning your question about whether professional services are income or expenses, I recommend consulting with your accountant to provide you with the expertise on what account to use to ensure your books are accurate.

On the other hand, it is essential to create a bill for each provider when invoicing insurance for a fitting fee. This practice ensures precise tracking of the payments made to providers for their services. And to connect them to the job, you'll have to make it billable. To accomplish the task, you'll have to enable the Mark all expenses as billable.

Here's how:

From the Edit menu, select Preferences.
Navigate the Time and Expenses tab in the left panel.
Click the Company Preferences.
Check the box that says Mark all expenses as billable.
Then, click on the OK button to save the changes.

With these steps, you can make an expense billable to track the billable expenses and invoice them to the appropriate customer or job.

Please know that the Community is always here whenever you need help navigating your account and assist you with any concerns you may have.

joanneVenus · ‎October 24, 2023

Thank you. I knew it would be something simple I was missing.

CamelleT · ‎October 24, 2023

Hello, @joanneVenus. We are glad to have been of assistance to you. Our primary objective is to provide you with an exceptional experience with our software.

If you have any further questions regarding setting up your business in QuickBooks Online, please don't hesitate to reach out to us anytime. We're always here to help. Have a nice day!

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Setting Up My Business in QB