BudgetEase Blog - Making YOU Profitable™

    How to Set Up and Process IOLTA Accounts in QuickBooks Online

    Wondering how to properly keep track of your Interest on Lawyer Trust Accounts (IOLTA). To many small businesses, keeping records is downright confusing. We recommend keeping track of individual client funds. The best way to accomplish that is to set up your Chart of Accounts using subaccounts for each client.

    Should I Expense or Capitalize Purchases?

    Capitalizing versus expensing purchases is a common question for small business owners. The way purchases are accounted for can sometimes make the difference between a year-end income statement that shows a profit and one that shows a loss. Having a Capitalization Policy will help your bookkeeper easily enter transactions into your QuickBooks or other financial software.

    Cash vs. Accrual Basis Accounting

    There are two ways of accounting – cash basis accounting and accrual basis. The main difference between them lies in the timing of when revenue and expenses are recognized.

    7 Things for Small Business to Include in Expense Reports

    What do you need in an Expense Report? To save you and your bookkeeper time, incorporate the following seven features into your Expense Report.

    How to Update Your QB File for Fixed Assets and Rental Property Improvements Using Your Tax Returns

    If your small business has fixed assets or property, how do you determine the amount of depreciation to be entered into QuickBooks? Best practice is to use your accountant’s depreciation schedule, adjusting journal entries or an accountant copy update file to bring your QB in line with the tax return. If none are available, use this approach:

    Review Your General Ledger – And Skip the Year-End Headache

    It's all about the report! How often are you checking your books for accuracy? Reviewing a P&L (profit and loss statement) is a great practice to see how you’re netting out each month. But reviewing the GL (General Ledger) can quickly show you where something’s not adding up, or you've incorrectly entered data.

    What To Do When Opening Balance Doesn’t Match the Bank Statement

    Have no fear! When the opening balance does not match the bank statement there are two common reasons:

    Feeling the Tax Time Crunch?

    5-Point Checklist: What to Send Your Accountant

    Where does the time go? If you are already looking at the calendar and wondering how to accomplish a lot of reporting in a short time for tax season, we understand.

    1099s - How Do I File With QuickBooks?

    Yes it is 1099 season! If you are a small business and don’t have bookkeeping support, what is the quickest way to get your 1099s out to the correct vendors?

    Businesses are required to send a 1099 to:

    • Service providers that you paid $600 or more
    • Your landlord for the rent you paid
    • All attornies even if they are incorporated

    Who don’t you send a 1099 to?

    • Corporations
    • Suppliers of products like utilities or office supplies

    The two easiest ways to file are:

    Our Clients' Biggest Bookkeeping Nightmares

    1. Old uncleared checks in the bank register

    2. Payments in Undeposited Funds that have been deposited

    3. Payments on invoices that have been deleted

    4. Unreconciled bank accounts going back a year

    Subscribe to Email Updates

    New Call-to-action

    Recent Posts

    Small Business Bookkeeping