Is there a way to hire a personal book keeper? My wife and I are beyond busy professionals and we have 3 kids all with too much access to our funds (Apple pay, gas cards etc.)

I just want a book keeper once a month to classify discretionary and non-discretionay transactions and waterfall a few key categories of expenses and income streams.

Can I hire this out or am i not leveraging the right automation in my banking apps? About 500 transactions per month.

How would you handle this: New client needs clean up of 2023. There are a MASS amount of undeposited funds. The process they had in place before was for the person handling billing would match the payments to the invoices once they came in and put them to undeposited funds. The last bookkeeper did not match up their payments to the correct credit card merchant's batch. Instead they just matched random payments that would be the same amount as the batched deposit to the bank. The payments show and the invoices no longer show open. The reconciliations match as far as the ending balance, debits, credits, and ending balances. Without spending too much time and going back through to match these payments to the correct batched deposited, how do I clean up the undeposited funds. It is not an option to go back through and rematch these payments and/or re-reconcile...

Firms doing over $40,000 per month - what are you doing? What deliverables are you providing your clients, how many clients do you have, what’s your MRR per client, what do your margins look like, how much staff do you have?

I would love to hear from the high performers out there on this sub.

QB Online, no bank fees, Some cc payments show in undeposited funds but never transfer to the bank register, but they were deposited in the bank. They don’t show up in the deposit screen. For now, did a transfer UF to bank register, but now in the deposit screen, the amount shows as a negative amount to be deposited. Tried a journal entry but same thing, show up as a negative deposit to he made. Any ideas? Googled for days. Someone mentioned a sales receipt, idk. Thanks!

Quickbooks has a functionality called "Reconciliation" where at the end of the month you can enter your starting and ending balance from your bank statement and it will compare it to what has been entered in QuickBooks and lets you know if it matches or if there are any discrepancies. This is very useful to make sure no transaction was duplicated or missed by mistake. On top of that it allows you to attach the bank statement to have it as a reference.

Does anyone know if there any functionality like this in Xero?

To keep a long story short, I pretty suddenly was shifted from W-2 income to freelancing back in 2022 and had a bumpy start to self-bookkeeping when it came to home office deductions, taxes, and what not. I did my best to create an excel sheet to encompass my needs, but fast-forward to today and now I have both freelance AND W-2 income sources that are really boggling my brain. I feel I'm out of my depth at this point.

What I'm looking to do is the following:

• Track freelancing invoices and paystubs from w-2 work

• Deduct home office and self-employment expenses from Gross Income

• Generate estimated quarterly tax payments for freelancing income.

I make less than 100k a year currently and I'm a sole proprietor (no LLC or S-corp). Currently I'm sending one invoice to a client for my freelancing, and a weekly timecard for my contract employer for w-2. I was never a pro at accounting or excel, so trying to figure out how much I owe quarterly without accounting for pre-taxed W-2 income and unemployment is twisting my brain into a knot. Does anyone have any suggestions? I've taken a look at Xero and Wave and honestly those seem way over my head.

Edit: I think I've figured out how to more-accurately track this in my excel sheet, I just should've started earlier. I have different cells dedicated exactly how much I owe in state and federal taxes per bracket, so I've created a new column next to it that tracks any supplemental income and subtract that from the overall AGI which gives me my adjusted freelance income per bracket, and then that amount is multiplied by the correct tax percentage. Then I just progressively track my supplemental income until I hit my next tax bracket and mark it. It's not fully automatic like I'd prefer it to be, but better to be accurate than automated and sloppy.

I am a degreed accountant with a ton of varrying experience and I am exploring ways to become technologically up to date for myself and for any potential clients to be confident in my credentials when I have a 22 year gap in employment except volunteer bookkeeping. I currently do volunteer acounting on an online platform, so not new to the online accounting environment, just feel like some current training my be beneficial.

Is it benefical going through a ceritfication process to become a certified bookkeeper, or advanced training in a popular online accounting software, like pro Quicken ProAdvisor?

if a bookkeeper is using only journal entries to do the bookkeeping is it wrong in any way?

Thanks

I'm dealing with a situation I've never encountered before and the company's accountant is not getting back to me. I know we've just finished up tax season, so it was really busy for them... But my client is wanting answers.

Canadian Client owns two companies. One of these companies has vehicles registered to it, we'll call that Company A. Company B has been using the vehicles and paying for fuel, along with repairs and maintenance. They now know that Company A should be paying for these expenses and invoicing Company B for usage. No issues there. The issue is what do we do with the almost $9K that are sitting in Company B.

The accountant mentioned Company B invoicing Company A for reimbursement of expenses. They also said we have to put tax on the invoice.

Currently in Company B these expenses are sitting in a "due from" account. Which is the correct way to invoice this reimbursement? Does Company B invoice Company A for $9K PLUS tax? Or is it $9K inclusive of tax? From my understanding Company B cannot claim ITC on the expenses currently in their books related to fuel and maintenance, because the vehicles are not registered with the company.

Any guidance is greatly appreciated.

there's two different lines in my bank statement (on same date) that i want to do journal entries for.

But i could also do 1 journal entry for both of those lines....if that wouldn't cause any issue

is there any difference if i do them separate or both at once?

Thanks

Do i need to create one bank account for each currency in the bookkeeping software?

I am using Revolut, and it stores amounts in each currency, i'll be using 2-3 different currencies

I will have to create a bank account in quickbooks for each currency? thanks

Does it matter if i make many deletions/corrections in the bookkeeping software? I don't know if that matters if its time to audit or things like that...

i assume if everything ends up to be correct, its ok...but getting ur opinions

thanks!

What are you guys using as a replacement for QBD Accountant payroll? I often need to run payroll for a household employee, single member SCorp, calculate a one time random paycheck for some reason.

It was so easy in QB accountant payroll. I could run a whole quarter of payroll and file state reports for a household employee in like 20 minutes at almost zero cost to me. Lots of these clients don't need a subscription like gusto. I really don't want to run this type of thing in excel. I'm so frustrated without desktop payroll.

Just curious, the business I work for is dabbling in both and I am genuinely concerned at the long term prospects for bookkeepers with the advent of AI especially. Will I still have a job in 10 years?

On one of the Intuit Academy questions has this

A wafer manufacturer sells the microchip maker $300,000 worth of silicon wafers on March 22nd, to be paid at the end of the month.

After 60 days of non-payment, both companies agree to issue a promissory note stating that the microchip maker will pay the wafer manufacturer the $300,000 with a 10% annual interest rate, compounded monthly over the next three months.

The microchip maker makes its first payment of $100,000 plus the required 10% interest on July 22nd.

There are drop down menus that give two possible answers:

102,465.75

102,547.95

It says earlier that interest is calculated using the formula:

P*R*T

But that formula doesn't produce those numbers.

First off, I'm assuming the first 60 days still accrued interest? (the numbers don't work either way)

Compounding every month I get an interest payment of 2584.20

Even using other methods I can't get it to be the same as their numbers.

My excel formula is this:

What is going on here? Is the intuit academy answer wrong?

Introduction:

In the world of finance and accounting, few concepts are as fundamental and crucial as the accounting equation. Whether you're a business owner, investor, or student of accounting, grasping this concept is essential for understanding the financial health and performance of any organization. In this comprehensive guide, we'll look into the intricacies of the accounting equation, exploring its components and providing real-world examples to enhance your understanding.

What is the Accounting Equation?

At its core, the accounting equation represents the relationship between a company's assets, liabilities, and equity. It is expressed as:

Assets = Liabilities + Equity

This equation serves as the foundation of double-entry bookkeeping, a system where every financial transaction affects at least two accounts to ensure that the equation remains balanced. Let's break down each component of the equation and explore its significance.

Understanding Assets:

Assets are resources owned by a business that have economic value and can be used to generate future benefits. These include cash, inventory, equipment, property, investments, and accounts receivable, among others. Assets are typically classified into two categories: current assets and non-current assets.

Current assets are those that are expected to be converted into cash or used up within one year. Examples include cash in bank accounts, accounts receivable (money owed by customers), and inventory. For instance, let's consider a retail store that has $50,000 in cash, $100,000 in accounts receivable, and $150,000 in inventory. The total current assets would be $300,000.

Non-current assets, also known as long-term assets, are resources expected to provide economic benefits beyond one year. This category includes property, plant, equipment, investments in securities, and intangible assets like patents and copyrights. Suppose the same retail store owns a building valued at $500,000 and equipment worth $200,000. The total non-current assets would be $700,000.

Understanding Liabilities:

Liabilities represent the obligations or debts owed by a business to external parties. These obligations may arise from borrowing money, purchasing goods or services on credit, or other contractual agreements. Like assets, liabilities are also classified into current and non-current categories based on their maturity.

Current liabilities are debts that must be settled within one year. Examples include accounts payable (amounts owed to suppliers), short-term loans, and accrued expenses like salaries and utilities. Suppose our retail store owes $50,000 to suppliers, has a short-term loan of $100,000, and accrued expenses totaling $30,000. The total current liabilities would be $180,000.

Non-current liabilities, also known as long-term liabilities, are obligations that are due beyond one year. This category includes long-term loans, bonds payable, and deferred tax liabilities. Continuing with our example, suppose the retail store has a long-term loan of $300,000. The total non-current liabilities would be $300,000.

Understanding Equity:

Equity represents the owner's claim on the company's assets after deducting liabilities. It reflects the residual interest in the assets of the business that belongs to the owners. Equity can be contributed by the owner(s) or generated through the business operations over time, such as retained earnings.

There are various forms of equity, including common stock, preferred stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income. Common stock represents the initial capital invested by the owner(s) in exchange for ownership shares in the company. Preferred stock is a type of equity that gives its holders priority over common stockholders in terms of dividends and liquidation proceeds.

Additional paid-in capital arises when investors pay more for shares than their par value. Retained earnings are the accumulated profits or losses of the company that have not been distributed to shareholders as dividends. Accumulated other comprehensive income includes unrealized gains or losses on certain financial instruments and items like foreign currency translation adjustments.

Let's illustrate equity with an example. Suppose the retail store was initially funded by its owner with $500,000 in common stock. Over the years, the company has generated $200,000 in retained earnings through profitable operations. Additionally, it has issued preferred stock worth $100,000. The total equity would be $800,000 ($500,000 common stock + $200,000 retained earnings + $100,000 preferred stock).

Balancing the Equation:

Now that we've examined each component of the accounting equation, let's revisit the equation itself:

Assets = Liabilities + Equity

The equation must always balance, meaning that the total value of assets must equal the total of liabilities and equity. This balance ensures that the company's resources are effectively utilized and financed, providing a clear picture of its financial position.

To illustrate the balance of the equation, let's use the examples we've discussed:

Total Assets = $300,000 (current assets) + $700,000 (non-current assets) = $1,000,000

Total Liabilities = $180,000 (current liabilities) + $300,000 (non-current liabilities) = $480,000

Total Equity = $800,000

Now, let's verify if the equation balances:

Assets ($1,000,000) = Liabilities ($480,000) + Equity ($800,000)

$1,000,000 = $480,000 + $800,000

$1,000,000 = $1,280,000

Since $1,000,000 equals $1,280,000, the equation does not balance. This discrepancy indicates an error in the calculations or data. Let's correct the error:

Total Liabilities = $180,000 (current liabilities) + $300,000 (non-current liabilities) = $480,000

Total Equity = $800,000

Now, let's verify if the equation balances:

Assets ($1,000,000) = Liabilities ($480,000) + Equity ($800,000)

$1,000,000 = $480,000 + $800,000

$1,000,000 = $1,000,000

Now the equation balances, indicating that the company's assets are financed by its liabilities and equity.

Examples of Transactions:

To further understand how the accounting equation works in practice, let's explore some common transactions and their impact on the equation:

1. Purchase of Inventory:

Suppose the retail store purchases $50,000 worth of inventory on credit from a supplier. This transaction affects both assets and liabilities:

· Assets (Inventory) increase by $50,000

· Liabilities (Accounts Payable) increase by $50,000

The equation remains balanced since both sides increase by the same amount.

2. Sale of Goods:

The retail store sells $30,000 worth of inventory for cash. This transaction affects assets and equity:

· Assets (Cash) increase by $30,000

· Assets (Inventory) decrease by $30,000

Equity (Retained Earnings) increases by $30,000 (assuming no expenses incurred)

The equation remains balanced since both sides increase and decrease by the same amount.

3. Payment of Salaries:

The retail store pays $10,000 in salaries to its employees. This transaction affects assets and equity:

· Assets (Cash) decrease by $10,000

· Equity (Retained Earnings) decreases by $10,000

The equation remains balanced since both sides decrease by the same amount.

The accounting equation is a fundamental principle in accounting that underpins the recording and reporting of financial transactions. By understanding the relationship between assets, liabilities, and equity, stakeholders can assess the financial health and performance of a company. Through real-world examples and transactions, we've explored how the equation works and its importance in maintaining accurate financial records. Whether you're managing a business, investing in stocks, or studying accounting, mastering the accounting equation is essential for making informed financial decisions.

accounting software for a smaller bookkeeping service. Currently using QB but am wondering what else is out there that people, here, have used?

I couldn't justify Practice Ignitions prices after the last round of increases. Since I have started with them my price has gone up 136% in three years. I don't see these increases stopping anytime soon and I am looking for alternatives. We are a small firm and use their software for proposals and payment processing. I am thinking I might just use Docusign or another signature software with reoccurring invoicing and payment processing in QBO. Anybody else in the same boat or care to share their setup/process?

For context, I charge upfront and automatically for monthly clients and send a few dozen proposals a year on a boilerplate template.

Obviously it is going to vary but if you could please tell me how many clients you work with per month, the frequency of your services to your client (monthly,quarterly,annually), and how much do you charge? I currently only have one client but I do not want to bite off more than I can chew and especially if it is not at the right price.

I thought "item receipt" meant that you simply paid for something........without need to make these two steps "Enter bill" and "pay bill"

I thought its just a single step to mention you paid for something

am i wrong? cause i think it puts them in accounts payable and expects a bill...

i am confused

how can i show that i just paid for something...without needing to enter a bill and then mark it as paid?

I have a non UK established limited company. My first question is that 90k exemption applies to me? If yes how can I file vat returns myself without paying to any accountant because my monthly turnover is like 100-200 pounds for now so it doesn't even enough to pay for an accountant but also i don't want to get penalized for something I'm not sure. thank you

What have you found to be the best workflow for business owners who do a lot of volume with quickbooks invoices and collect both online, check, and cash. The online payments automatically match, but when cash and checks are deposited, it's quite the time suck to try to match the deposit to invoices. Especially if an older invoice/check is involved. Wasn't sure if you all have some documentation that is completed with each deposit as support to aid in the matching. Thank you!

I'm using quickbooks

my home currency is Euros

on 1/1/2024 i purchased from a store in USA $100 stock which my bank converted to 90 euros and utilized my euro balance.

on 1/10/2024 i asked for a refund, but upon refund...my bank (revolut) Opened a new balance in my bank in USD and deposited the $100 there (and it did not cancel the first transaction)

on 1/11/2024 i converted the $100 into euros within my bank revolut app and that is now 91 euros...

How do i journal the above?

Thanks!

Need help from the hive mind. I do payroll and books for clients of a tax prep firm. 8 different preparers who ask me to take on their clients who need payroll and books….its all small companies…..just a few employees, 1 or 2 bank accounts and 1 or 2 credit cards. They are all QB desktop or QBO.

I’m trying to figure out how to track where I am at with their books so I can quickly tell what the next steps are and I’m comfortable with Excel…I keep my payroll log there so I know who to do payroll for when and if they’ve been invoiced, etc. I also keep a time log in excel so I can track hourly time and whether it’s been invoiced.

The problem with monthly books is that I have clients with a variety of ways to do things. Some send me QBO files to dump in bank feed, some I have a log in, and some have bank feed set up. Some banks and credit cards simply won’t feed into qb automatically so I manually import QBO files.

Basically, I get the info, put it in QB, code it, reconcile, clean up, transaction report to client to check entries, correct when I get it back. I send financial statements quarterly.

I had a problem this year with clients not responding back to transaction reports or getting me statements or QBO files (for clients who send those in to me) until the end of the year. Then all of a sudden they info dump and preparers are wondering why books aren’t done for taxes and clients are grumpy.

I need some sort of tracking so I can quickly assess where I am at in the process for each client and when and how many times I bugged them to send me what and when I have things back (bank recs, transaction reports, etc). I have about 20 clients I do this for. It’s part CYA for me, part being able to quickly tell if the next step is on me or if I’m waiting for something.

I can’t be the only bookkeeper needing to track special snowflakes like this. What tips, tricks do you use to track this stuff?

My client has multiple people using QBO and mistakes happen almost everyday, including mistakes by the owner herself. This not only causes a bunch of clean up work come time to reconcile, it also effects the company's client & vendor relations.

I (mostly) handle accounts payable for the company. However, I am regularly asked to investigate problems that arise from multiple users miss-entering data in QBO, correct the mistakes and resolve any issues that may have arisen due to these mistakes. In addition, I am communicating directly with the this client's vendors and clients to maintain healthy relationships when these mistakes effect these relationships.

My question is, what would you call this service? This takes a lot time and I am looking to define it properly. Perhaps it is a part of basic bookkeeping? I have honestly never done business with a client going into QBO and messing up so much. So please, any information would be helpful.

thanks

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WHen i registered on paypal they send two small deposits on my bank account

in quickbooks i'm going to "Make deposit" i created Paypal as a supplier, and it asks me to also choose an account.....I see "interest income" as something available, would that do or do i need to make a new account?

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thanks!

when i'm paying fees to the government for my company like changing details etc they charge us a small fee each time, what is that considered to be in terms of chart of accounts? Professional fees, or should i put it as miscelleaneous expense? or something else?

Thanks!

My home currency is Euro

I was charged 50 USD by a company which my bank converted to 40 euro + 0.5 euro fee by my bank for a total of 40.5 euro.

When i go to details i can see all the above......how the 40.5 came to be

my bank statement shows the 40.5 euro and underneath it also mentions the 50 USD

but do i have to record everything that happened? or just the result that my bank charged me 40.5 euro total for that transaction?