Didn't find the QuickBooks tip you were looking for?Email me so I can answer you directly and then write a blog about it.
In accrual accounting you may find it necessary to record certain transactions as prepaid expenses. You will then need to follow certain steps to properly record the prepaid expense in QuickBooks. A prepaid expense is a purchase you make for goods or services you will receive in the future or over a specified period of time. A good example of this would be insurance. Most insurance agencies require that you pay your premium in annual or semi-annual payments. In order to show more accurate financials that are not skewed by a large expense in one month it is necessary to use a prepaid expense. This will properly spread the expense over the entire coverage period that you are paying for. Another example of an expense you might want to consider prepaid expenses for is a quarterly utility bill. Watch this video which demonstrates how to properly handle recording prepaid expense in QuickBooks.
Follow us on Google+
© 2013 slcbookkeeping.com