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whaywood1
September 5, 2024
Question

Balance sheet - best practices

  • September 5, 2024
  • 5 replies
  • 19 views

Hi all, I'm new to Quickbooks and enjoying the experience, but have a couple of more technical issues I'd like support with. Apologies if these are relatively simple, but I haven't been able to find these answers elsewhere, or with the intro video consultation. Any help is much appreciated! 1. What is the best practice to booking in liabilities than are not accounts payable (e.g. accruals). I have seen that posting "bills" only really works for accounts payable, so is there another way to post any other types of liabilities? Do all of these need to simply be posted as manual journals, with all adjustments then also subsequently posted with manual journals? 2. The same applies to booking inventory. Do inventory bookings need to be posted with manual journals, or is there a better approach? I am only using Quickbooks essentials for the moment. Thanks for any help!

    5 replies

    R
    RogelioLModerator
    Moderator
    September 5, 2024

    I'm glad to hear that you're having a positive experience with QuickBooks, @whaywood1. Allow me to share what to do with your liabilities and inventory.

     

    Firstly, for Liabilities that are not Accounts Payable, such as Accruals, the best practice in QuickBooks Online (QBO) is indeed to use manual Journal Entries. We should also make any adjustments to these liabilities through manual journal entries.

     

    In terms of utilizing Journal Entries and making any adjustments, I recommend consulting with an accountant to ensure accuracy and proper tracking.

     

    Second, QuickBooks Online Plus and Advanced offer specific features for Inventory tracking that automate many processes, reducing the need for manual entries and minimizing errors.

     

    However, since you're using QuickBooks Online Essentials, we can only track the value of your Inventory Assets manually. For further information and detailed guidance, please refer to this article: Track inventory manually in QuickBooks Online.

     

    Additionally, you can check out this article to learn how to set up and add accounts to your Chart of Accounts: Add an account to your chart of accounts in QuickBooks Online.

     

    You can always post here in the Community if you have more concerns about utilizing journal entries to track liabilities and inventory. Keep safe.

    W
    whaywood1Author
    September 5, 2024

    Hi @RogelioL 

     
    Thanks so much! Really appreciate it. I have 1 more question which I'll ask on here please so as to not open a new thread. This one relates to bank reconciliation:
     
    We have a number of transactions (approx. €2.6k) which we've posted over the last 1.5 months, but on our personal bank accounts. We have just set up a company bank account, and injected €3k, booking Dr cash, Cr share capital.
     
    The company bank balance is currently still €3k, and the cash balance is €400 (€3k minus the €2.6k paid with other accounts).
     
    I accidentally "reconciled" the account yesterday, stating that €3k is the opening balance, and wanted to ask how to change this. The €2.6k are currently showing up as "rec" items, but they are not "incorrect" due to me putting in €3k as the starting balance. I have seen on other forums a "opening equity balance" should be available under "Memo" in the cash and cash equivalents history, but I don't have that for some reason.
     
    Can you please advise me on how to fix this? I'm happy to send over pictures if necessary. Thanks a lot!
    J
    JoanaCQuickBooks Team
    QuickBooks Team
    September 6, 2024

    Hi @Rea_M 

     

    Thanks a lot for this. I’m attaching a few screenshots to hopefully help, apologies about the clarity, I can only log into this forum on my phone for some reason.

     

    As you see, I have entered an opening journal: Dr cash Cr opening equity on 1 May (before any other transaction). I opened this with €0, as the value in the bank at that point was nil, although I’m guessing this is incorrect?

     

    I‘m also including the reconciling screen which shows a few of the outstanding transactions, which in reality (if all were shown) add up to €2.5k. Any help in solving this would be really appreciated! Thanks!!


    I appreciate the screenshot you've shared for better clarification, @whaywood1. I'm happy to assist you in unreconciling the journal entry.

     

    We can manually remove the reconciliation status on the journal entry you've accidentally reconciled. We can also change the amount before we can save the changes. Here's how:

     

    1. Go to your Bank transactions, then click Chart of Accounts.
    2. Find the bank and then select View Register.
    3. Search and click the opening balance you want to unreconcile.
    4. In the Checkmark column, click on the tile until it's cleared. (you can also change the amount in this step)
    5. Hit Save.
    6. You will receive a pop-up notification about the changes, then click Yes.

     

    Let me share this article if you have duplicate accounts to merge: Merge duplicate accounts, customers, and vendors in QuickBooks Online.

     

    The Community is here 24/7 to assist you if you still have questions about your reconciliation. Have a great day ahead.

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