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QuickBooks Tips Blog

Accounts Receivable - What A Mess!

Posted by Joe Mazur on Oct 9, 2013 7:00:00 AM

"My Profit & Loss report tells me that I'm making a lot of money, but where is it?"  This is a common question we get asked frequently.  I usually tell that person to open their Accounts Receivable report.  Accounts Receivable is one of those reports that can be scary the first time
it's opened.  This shows the amount of money that the company has invoiced its customers for whom have not paid yet.  In accrual based reporting, these amounts show up on the Profit & Loss and have a major impact on the bottom line.  Streamlining your invoicing process can eliminate having a wrong AR report.  Also, streamlining the process in which your customers pay your company can reduce your AR balance and make your cash flow much more predictable. 

 

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Topics: Cash Flow Management, Bookkeeping Processes, Accounts Receivable, credit card quickbooks, Accrual Accounting

QuickBooks Video Tip: Handling Prepaid Expenses In QuickBooks

Posted by Matt Roberge on May 8, 2013 7:30:00 AM

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.

Set Up The Prepaid Expense As An Asset

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Topics: QuickBooks, QuickBooks Tips Blog, QuickBooks Video Tips, Accrual Accounting, Prepaid Expenses