Archive for Bookkeeping Tips

A Better Way to Book Purchase Discounts

b7783-aipbIf your company routinely takes all purchase discounts, you can simplify your record-keeping by recording all purchases at the net rather than gross amount.  Record missed discounts in a Purchase Discounts Lost account using the net-price method, as follows:

Your company receives an invoice for $10,000 with credit terms of 2/10, n/30.  Under the net price method, the following entry is recorded:

To record receipt of invoice:

Purchases   9,800
Accounts payable    9,800

To record payment:

Accounts payable   9,800
Cash 9,800

If, for any reason, the bill is not paid on time, the entry is:

Accounts payable 9,800
Purchase Discounts Lost 200
Cash    10,000

The Purchase Discounts Lost account does more than simplify bookkeeping—it brings attention to money-saving discounts that your firm may be missing.

For more information or to hire a professional bookkeeper please contact us –

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Bookkeeping Tip #6: Memorized Reports in QuickBooks

So you’ve finally found the report in QuickBooks that fits your needs perfectly and you want to be able to access it quickly, easily and often…memorize it!

Select any report, modify it by “customizing” and “filtering” it with the information you want to see and then memorize it.  Whenever you change the settings for a report, you can memorize the report with the new settings and save it in the QuickBooks Memorized Report List. Then, when you want to create a similar report, just go to the Memorized Report List to find it. Please note: QuickBooks memorizes the report settings, not the data in the report; so if data changes in your company file the data in the report changes. 

How do you memorize a QuickBooks Report? Glad you asked…Here are a few easy steps:

1. Customize a report with all the information you need, click Memorize at the top of the report.


2. If you have changed an existing memorized report, indicate whether you want QuickBooks to replace the earlier report, using the same name or create a new memorized report with a new name.



3. In the Memorize Report window, enter a title for the report.

4. If you want to assign the report to a memorized report group, choose “Save” in “Memorized Report Group”, and choose the group from the drop-down list.



5.  If you run several businesses or have a multi-user QuickBooks installation, choose the sharing option for your custom reports so other employees will be able to access the report templates quickly and easily.


Happy memorizing… Need more information?

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Bookkeeping Tip #125 Hire Professional Help

Hire professional help

 Unsure of where to start, consider engaging a bookkeeper or an accountant to set up your bookkeeping system. If paying a seasoned professional doesn’t fit your budget, you could hire a college student who’s majoring in accounting to assist you.


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Bookkeeping Tip #185 Segregation of Duties

Segregation of Duties: the “rule of two”

Meaning that any task involving the finances of your small  business should require  at a minimum two people to complete.
Here’s a few examples
1. Bookkeeper records all receipts, Accountant reconciles all accounts to make sure what’s recorded in the books  matches what happened in reality (as shown on the bank statements)
2. The secretary photocopies checks from clients, gives the photocopies to the bookkeeper to record, then the secretary completes the bank   deposit with the actual check
3. The bookkeeper prints checks to pay vendors, and the owner signs and mails them
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