Categories
1099 Closings QBO QuickBooks Year End

Preparing for year-end: Hints and Tips for QuickBooks Online (QBO) users

Year-end is quickly approaching. Be prepared for the year-end. Here is a 10-point checklist you should go through to keep your QuickBooks Online accounts in order and plan for the year-end processing.

 

Helpful Checklist:

  1. Bank Reconciliations
    Make sure all bank reconciliations are up to date. This includes credit card accounts as well. Review any unmatched items (both deposits and payments) that you would not expect to be outstanding. This may be the result of a duplicate entry.
    It is important these banks reconciliations are printed (or saved) at year-end.
  2.  

    Click on the screenshots below to enlarge them
    bankrec

     

  3. Undeposited Funds
    Make sure all the customer payment items in Undeposited Funds account have not yet been deposited to the bank account. If all the deposits are already posted to the bank account, this account should show zero balance. Any balance in Undeposited Funds account (even after bank accounts are already reconciled) may be the result of a duplicate entry. Review income and account receivable accounts and resolve it.
  4. uf

     

  5. A/R and A/P Balances on Cash Basis
    Run the Balance Sheet on the cash basis accounting method. If the transactions were properly recorded, these two accounts should not show a balance in the Balance Sheet.
  6. arap_cash_basis

     

  7. Employee Advances
    Make sure Employee Advances account is reconciled. This account should include the advances that are yet to be repaid or have not been deducted from the payroll.
  8. emp_advance

     

  9. Payment to Independent Contractors (1099s)
    Make sure you have IRS Form W-9 on file and they are up to date.
    You can google 1099 and W-9 for all the handy information you need.
  10. track1099

     

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  11. Other Balance Sheet Accounts
    Review all other balance sheet accounts. Make sure all assets and liabilities are shown properly. It is also time to make adjustment entries if necessary.

     

  12. bsaccts

     

  13. Depreciation on Fixed Assets
    If you have posted your depreciation on fixed assets entry, make sure these are up to date. If not, consult your Accountant.
  14. depreciation

     

  15. Uncategorized Income & Expense / Ask your Accountant
    If you have any uncategorized income and expense in P&L that have been used to post entries that you aren’t sure what to do with, now is the time to have a look. If needed, ask your Accountant and resolve it. Also, review all income and expense accounts and make sure it makes sense.
  16. uncategorized

     

  17. Retained Earnings
    Keep a separate spreadsheet Account Analysis of Retained Earnings account. This account should include income or loss from prior years. It may also include reclassifying transactions within equity type accounts. Consult your Accountant if it involves any entry posted from outside of equity accounts.
  18. re

     

  19. Close the books
    Close the books once you have submitted final numbers to your Accountant for review and tax preparation. Consult your Accountant in case there is a need to make changes.
  20. closing

     

Categories
Chart of Accounts

QuickBooks Online Chart of Accounts

There are certain accounts QBO automatically creates when a new company is created. These certain accounts can be deleted or edited and there are certain specific accounts cannot be deleted. They are integral part of QBO company account setup.

These are specific accounts that cannot be deleted or used for anything else. Here are specific accounts that cannot be deleted or used for anything else:

  • Undeposited Funds
  • Inventory Assets
  • Opening Balance Equity
  • Retained Earnings
  • Cost of Goods Sold
  • Credit Card Receivables
  • Reconcile Discrepancies
  • Unapplied Cash Payment Income

All of these specific accounts are integral part of QBO special accounts. They cannot be changed into regular accounts. It is highly recommended not to delete it even though you may never use these certain accounts.

These accounts cannot be deleted or merged but can edit the name if needed:

  • (Sales tax agency name) Payable
  • Services
  • Owner’s Equity
  • Uncategorized Expense
  • Uncategorized Income
  • Uncategorized Asset

Services income account is the default income type account for the QBO file. It actually operates the same as any income account, but this one can’t be deleted, nor can the corresponding product service item. However, they can both be changed to the main income account you will be using.

Edit the name of Services to the name you call your income:

  1. From the home page screen, go to the Company Gear (upper right corner) and select Chart of Accounts under Settings heading
  2. Click once on Services to highlight it.
  3. Click Edit button.
  4. Change the name to your preferred name of income.
  5. Click Save.

Accounts that can be deleted by merging:

  • Billable Expense Income (Income Category Type)
  • Markup (Income Category Type)

To merge the accounts:

  1. From the home page screen, go to the Company Gear (upper right corner) and select Chart of Accounts under Settings heading
  2. Click once on the account to highlight it.
  3. Click Edit button.
  4. Change the name to Services, or the exact name that Services has been changed to.
  5. Click Save.
  6. The program will ask if you want to merge; click Yes.

Accounts that can be deleted, but are associated to a company settings. (Since the below accounts are associated to a preference setting the only way to delete them is to disassociate them from the setting .)

  • Shipping Income (Income Category Type)
  • Discounts Given (Income Category Type)

To disassociate the account you want to change:

Want to change Shipping Income?:

  1. From the home page screen, Go to the Company Gear tab (upper right corner) and click  Company Setting under Settings heading.
  2. In the left column, click on Advanced.
  3. In the Chart of Accounts section, click on Shipping Account.
  4. From the drop down list, select shipping account you will be associating this preference to income type account.
  5. At the bottom right, click Done.

Want to change Discount Income?:

  1. From the home page screen, Go to the Company Gear tab (upper right corner) and click  Company Setting under Settings heading.
  2. In the left column, click on Advanced.
  3. In the Chart of Accounts section, click on Discount Account.
  4. From the drop down list, select discount account you will be associating this preference to income type account.
  5. At the bottom right, click Done.

 

 

…more related source

 

Chart of Accounts can be also used many ways in new QuickBooks Online.

How to go to Chart of Accounts?

From the home page screen > select Company Gear (upper right corner) > select Chart of Accounts under Settings

From here, you can ADD New account, edit existing account and delete account with certain exception (certain account cannot be deleted).

Wait, you can do more…

From here, you can go the Register for all the Balance Sheet Accounts. Just highlight account and select Register.

From here, you can generate ACCOUNT QUICKREPORT for all accounts listed here on the Chart of Accounts. Just highlight account and select Report. It is also a quick way to run a report for specific General Ledger Account.

 
COA menu bar

COA quickreport