How to Post Prepaid Expenses in Quickbooks

[@QbuniversityOrg]

www.QBUniversity.org - feel free to post a question or comment here!

[@louietoltolvlog9699]

Thank you

[@QbuniversityOrg]

@@louietoltolvlog9699 you’re welcome!

[@louietoltolvlog9699]

I work for accounting at restaurants business. Having a trouble understanding….with tip… Tips is payable to employees and my CPA said it’s not an expense… Im confused of card tip… Restaurant has card sales including card tips… Should gross sales exclude card tips? What about sales tax? Even if card tips excluded in gross sale, those tips are paid as bank card merchant service fee…and payroll taxes are also included those tips… So my question is 1. Should gross sale not include sales tax, card tip? 2. In qb, is it okay for p and I statement not matched with balance sheet ? 3. Payroll taxes are automatically paid in the bank account…and it’s lump sum payment… When I write a paycheck for payroll, qb calculates payroll taxes for each employees… For bank reconciliation, I’m having difficulty….payroll taxes on paycheck and payroll taxes autopay in bank.. Those are not matched to reconcile…And it can be duplicated payroll taxes…. But anyway in bank account, those both withdrawn in a bank… Should I just add lump sump payroll taxes autopay in qb to reconcile?

[@QbuniversityOrg]

@@louietoltolvlog9699 1. Correct gross sales should not include taxes or tips, those go to sales tax payable and tips payable. 2. Not sure of the question. Net income on PL should match Net income closed to retained earnings on the balance sheet. 3. You can enter as a lump sum to reconcile but will still have to break them out between expense and liability for the withheld portion. Payroll companies withhold the taxes for both employee and employer portion and the employer portion is an expense and employee portion is a liability.

[@riyadcosta867]

I am so glad your channel offers free QuickBooks videos, it's a one-stop-shop for everything I need!

[@QbuniversityOrg]

Awesome!

[@BimmerBabe]

as a person working with a company currently running Great Plains 2010 Quickbooks amazes me!!! its so slick and has everything . that memorize feature was pure gold. Cant wait to start my new gig and apply my new knowledge

[@QbuniversityOrg]

Awesome!

[@sheilaschmitt383]

Thank you for your help. You explain things clearly. I have watched other videos and refer to you when I need advice.

[@QbuniversityOrg]

That’s great! Thank you!

[@jena3044]

Hi my husband is considering taking your Master class online after watching your short video on accounts receivables because of your simple explanation. Now my question to you is this 1. Is that how simple it is in a real world scenario? 2. Does he need to be certified as a Quick books Accountant to do accounts cleanup for clients? He is currently taking the course online through Intuit U.S even though we are in Canada 3. Can he get support from after taking your course and runs into some challenges when he starts working 4. Does your Master program covers the tax aspect of both the U.S and Canada? I appreciate your contributions to the benefits of humanity through this medium. Thanks

[@QbuniversityOrg]

Thanks so much Jen! Simple answers are as follows: 1. Sometimes yes sometimes no 2. No 3. Yes with my course it’s lifetime support for the one time fee 4. Do you mean answering questions related to taxes? It depends on what it is but in general, yes, I answer those questions as well. I do tax work essentially as my career through my CPA firm, The Hultquist Firm (www.thehultquistfirm.com). I am not a Canadian tax expert but have helped answer various questions on Canadian taxes over the years.

[@marvinnichols2819]

THANK YOU

[@timetothink8537]

Your Content is help full. Keep up the good work

[@QbuniversityOrg]

Thanks!

[@mumtaztaj]

Thanks for your great and valuable information, but I have faced that you entered in enter bill menue, you know that goes to pending mean how can we clear that pending with this prepaid account

[@QbuniversityOrg]

When the expense is to be recognized you would do a journal entry to move it from prepaid to the expense

[@evtyler]

Excellent video! Thank you for sharing the information.

[@Natureshoot312]

My employees at a company receiving monthly salary but sometime we pay them before the month like prepaid to employee; so how can I record it? Or sometimes giving money to Boss?

[@jeb6764]

When do you remove the adjustment tick when entering journal entries. Lovely presentation. I got some ideas from it, especially memorizing the transactions for automatic entry- Great

[@QbuniversityOrg]

What do you mean by adjustment tick?

[@humingbird2187]

Thank you for sharing. I appreciate it.

[@QbuniversityOrg]

Welcome!

[@leontino7778]

Bravo!!!! Thank you so much!

[@QbuniversityOrg]

You’re welcome!

[@natalyagordon8861]

Hello! May I ask for a tutorial on creating a 401K & 401K (Roth) payroll item on QB Enterprise Solution 22 Desktop. Many thanks in advance

[@dtnlivinglife6731]

Great video thanks. What about prepaid expenses that are different each month and those expenses are billable to clients. Tolls equals to a prepaid amount and then debits that prepaid amount. I pass tolls onto my client. What should Indiana ezpass toll be in QBO as? Indiana ezpass charges a deposit for tolls to be debited from. Then when a toll is processed and debited from the balance of ezpass, how should that entry be put in QBO? When the balance gets to a certain point, Indiana ezpass charges the bank or credit card to build its balance. How should that entry be put in QBO? Thank in advance, hope to see a video of setup and then how to process it.

[@Userj.5224]

Very interesting! One question: When the monthly registration is automated and the date arrives when Quickbooks makes the monthly accounting entry, does Quickbooks notify you that it did? Or in any case, is there a special classification in the journal of this type of transaction to be able to check if Quickbooks did the job well?

[@QbuniversityOrg]

It depends on how you set up the memorized transaction. If you select to automatically enter it won’t but if you tell it to remind you it will

[@BimmerBabe]

@@QbuniversityOrg so the reminder is to let me know QB did it not a reminder for me to do it?

[@QbuniversityOrg]

@@BimmerBabe it’s a reminder for you to do it

[@user-yu7bg9su6h]

I received Workers comp. dividend, how to categorize it in QuickBooks? Interest income or Dividend earned in Other Income or something else? TIA

[@khalidwasu]

We did not add tax on this insurance bill. What if there is a sales tax portion on the bill?

[@QbuniversityOrg]

Add it to the total bill

[@mohibullahayar7031]

Very helpful, Tanx

[@QbuniversityOrg]

Welcome!

[@LynnPalidwar]

I received a donation credit on account from a vendor. How do I enter the credit? Do I enter the vendor bills differently?

[@QbuniversityOrg]

Is this just like a vendor credit?

[@Brandywine-farm]

Mine do not have numbers. I just let QB enter one for manufacturing. How do I get a proper chart of accounts? We do not have any accountant

[@QbuniversityOrg]

I would go online and search for a good chart of accounts for your industry that you can model it after

[@mumtaztaj]

Still waiting for reply, a ount payable is still payable, if it is double currency it is another issue

[@QbuniversityOrg]

Pretty sure I answered you on another video

[@rajukanabar580]

What about year end accruals. ? Say last inv for light and heat is up to 5th of August and your year end is 30/9 We call these accruals Then software automatically reverses these journals.

[@jvd6220]

When it is time to write the actual check for the insurance bill, what account do you record it under?

[@QbuniversityOrg]

If you record it as a bill and then Pay Bills it’ll just run through AP like it should

[@scientist100]

How can you do this but affect the checking account so it shows a realistic balance anyway? Lets say to draw the cash from the checking accounting into a prepaid account that will be deducted over the cover period, lets say 6 or 12 months. This method is no different than just using a check and memorize that check for the next 11 or 5 months remaining which is simpler than creating journal entries, this method just gives a visibility of the balance is my guess within the other asset but I don't see how it helps on showing the actual account balance which it truly doesn't. I was hoping to see something like, draw the actual cash spent in that month but don't show the full amount as an expense for the month but rather an evenly distributed expense when it comes to profit and loss review. This method does the trick with profit and loss but doesn't give me the true balance for when it comes down to end of month reconciliation. Thank you for the video, just trying to see different ways that one can see what's actually available to expense.

[@QbuniversityOrg]

If I understand you correctly you will be overstating cash. So if you spend $12,000 on January 1 for a 12 month premium, you spent $12,000 of cash for an expense to be recognized as $1,000 per month for 12 months

[@scientist100]

@@QbuniversityOrg yes, I just saw another video where they use the checking account to debit into the asset account instead of bill and then use the journal entries to deduct every month. This is what I wanted but will that not show in the profit and loss statement report or is that a valid approach to still see profit and loss reports?

[@QbuniversityOrg]

It should show in the profit and loss correctly

[@scientist100]

@@QbuniversityOrg thank you. I will continue to watch your videos. I'm doing this to get familiar with my finances and when I'm ready to open my business. Basically like a practice thing with my own cash. I also do side jobs so I'm trying to manage personal and that income as well and I have been setting up accounts for expenses that will ultimately be sold for each jobs (cogs).

[@QbuniversityOrg]

Sounds great!

[@joannaorloff535]

Is there way to enter the first and last day of the term and the QB spreads the expense automatically on the QB? Isn't this going to create many journal entries?

[@QbuniversityOrg]

Not automatic but you can memorize the journal entry to auto enter each month with a start and end date

[@marion7032]

Does this also apply to a bulk fuel purchase as a pre payment and apply usage as you go?

[@QbuniversityOrg]

In general yes but how much are you talking about? Is it a big prepayment or a small amount?

[@marion7032]

@@QbuniversityOrg 5000 gallon of dye, we like to put our cost price and a job class as we use it. Will that work?

[@humingbird2187]

Will this show in the invoices to be paid every month so I can send payment?

[@QbuniversityOrg]

No because a Prepaid Expense means you paid it already

[@btiny36]

I have a question. At the end of the year, for our year end, we write a check for upcoming year expenses for chemical. My question is how do I record the credit to the vendor also have it come out of our bank account. Vendor xxxx 32,000.00 they cash check for upcoming year. I do have a prepaid account set up but have never used it. I think I understand, that I would simply write the check to the vendor, record it into the prepaid account and as the invoices come in, I would just do a general journal entry and post to prepaid account and our chemical account?

[@QbuniversityOrg]

Yep that’s exactly right!

[@btiny36]

@@QbuniversityOrg Awesome thanks. Some things are confusing when watching video's, as I'm on desktop and in Canada....But you explain very well. I did take training at our accountants office, but it was just skimming the surface of the program and also they don't use the sale tax portion of the program which sucked...But thank-you for responding🙂

[@QbuniversityOrg]

@@btiny36 you’re very welcome!

[@user-db3ql1ds3b]

Is there a way to migrate QB online to QB Desktop?

[@QbuniversityOrg]

Are you wanting to convert your QBO file to Desktop?

[@veronicasanchez2519]

@The Quickbooks University yes. I like to bring my info from QB online to QB Desktop. I have about 3 years of history

[@QbuniversityOrg]

@@veronicasanchez2519 unfortunately you can only bring lists, products and services etc. but there are companies out there that will do it for you for a fee