Questions on reconciliation and entering expenses

dbbrestaurantgroup · ‎March 05, 2019

Hi everyone!

I am just starting my QB set up and so far all I have done is set up my chart of accounts, vendors and link my bank account to QB and uploaded all of my bank transactions for the last 16 months. Now I am a bit stumped on a couple of things on how to proceed.

1. Since I uploaded 16 months of bank transactions, how do I reconcile? Right now every transaction back to October 2017 shows as "C", but not "R". My ending balance for current date is correct, but I am not sure how to proceed with reconciliation that far back.

2. My vendors for me to pay bills are set up, and my transactions that have been uploaded from the bank are showing under each vendor. Is that all that has to be done as far as setting them up? Since we were just starting the business, I have some bills that we received for supplies that were billed in October, but not paid until December. Do I enter the bill when I receive it, but the payment when I actually pay the bill? What do I do here? Or do I enter the bill when I actually pay it?

3. Moving forward, do I enter bills (such as utilities) in QB, and then when I reconcile the bank account at the end of the month just "match" the uploaded entry to the bill due?

4. If I am writing paper checks rather than through QB, how do I enter the bill, then show it paid when I am not paying it with QB?

5. Lastly, my first payroll for my company was all done by manual check. Does each employees check just get entered into QB as a vendor and categorized to payroll?

It appears our QB is set up on an accrual basis.

Thanks so much in advance!

Adrian_A · ‎March 06, 2019

Welcome to the QuickBooks Community space, dbbrestaurantgroup.

1. The letter C means that it's already been cleared from your bank. It will appear once the transactions are matched and added from the banking page. On the other hand, the letter R will only show if the transactions were manually reconciled.

You'll want to check this article: How to reconcile accounts.

2. Regarding with your vendors, you're doing it right.

About the bill that you've received, you'll have to use the date when you received the bill. And then pay it when the it is due and check if the date is correct. To do that click the Plus (+) icon and choose Bill. To pay it, click again the Plus (+) icon and choose Pay Bills. On the Payment date box, enter the correct date.

3. When you received your utility bill, you'll have to enter them in your QuickBooks account. The system will allow you to match the payment. You can refer to this article on how to add and match download banking transactions.

4. There's no need for you to create a bill. You'll have to create a Check or Expense since you're going to pay it right away.

5. As for your payroll, you'll need to set up your employee first and enter their payroll history. You'll want to check these article on how to set up payroll and record payroll transactions manually using a Journal Entry.

I would also recommend using our Payroll service. It is an add-on service of QuickBooks Online. This will help track the taxes and contribution of your company. Once you've subscribed, we'll provide you the payroll tax forms you need so you can file them to the Federal and State agencies.

If you have other concerns, feel free to post again. Have a good day!

dbbrestaurantgroup · ‎March 07, 2019

Thanks so much for the help on these items! As I have been working on QB today, I =
have unearthed a couple more questions.

1. Can I add additional entries in expenses after reconciliation?   If =
so, how do I go about that?
2. I have expenses that I used a personal credit card for that need to =
be entered, such as utilities.   I don=E2=80=99t want to link the =
account as it is a person credit card.   How do I enter these?
3. Lastly, I have a promissory note that I pay a monthly payment on. I =
put the payment in expenses under expenses.    Is that the correct way =
of entering it, or should i have done something different with it?

Thanks so much!

RenjolynC · ‎March 07, 2019

Thanks for getting back to us, dbbrestaurantgroup.

For the first question, you will be prompted that the expense is already reconciled and editing it will change the balance. Please see sample screenshot below.

To record the business expenses using the personal funds, please see this article: How to pay for business expenses with personal funds.

If the promissory note is considered a loan or a long term liability, you can follow the steps in this article: Record a loan and payment.

Please let us know if you need anything else.

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Questions on reconciliation and entering expenses