Download Running QuickBooks 2009 Premier Editions: The Only by Kathy Ivens PDF

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Accounts Receivable and Accounts Payable do not have special hidden markers, because they’re earmarked as unique accounts by their account type. Accounts Receivable is an account type Accounts Receivable in QuickBooks, even though it’s technically a current asset in standard accounting terms. Accounts Payable is an account type Accounts Payable in QuickBooks, even though it’s technically a current liability in standard accounting terms. QuickBooks created these account types to make sure the software linked transactions properly.

For example, the totals for accounts of the type Other Current Assets (excluding inventory) and Other Assets are usually easy to calculate. Most Current Liabilities and Long Term Liabilities totals are equally straightforward. However, the totals you enter for your bank accounts, fixed assets, and payroll liabilities need special attention and are covered in the following sections. 41 42 Running QuickBooks 2009 Premier Editions Entering Opening Bank Account Balances To enter bank account balances, use the reconciled balance as of the last day of the last fiscal year in your journal entry (most banks generate statements as of the last day of each month for business accounts).

They’ll wash when you enter the transaction that paid them during the current year. Entering Sales Tax Liabilities Balances If you have taxable sales for the last reporting period, you have to enter the total sales tax liability for those transactions not included in the historical transactions you entered. Paid (not open as of the end of the year) transactions also contributed to your tax liability, and you have to add Chapter 1 • Getting Started that total to the sales tax liability account in order to remit taxes accurately.