If you're in business long enough, there will come a time when a customer is unable or unwilling to pay you. If you use cash basis accounting, you don't need to record bad debt expense because you don't have accounts receivable. However, if you do extend credit to your customers and, after attempting to collect the payment, you become aware that you will not be able to collect a payment, you should write off the bad debt. This will ensure that your financial statements remain accurate and that revenue is not overstated. There are three steps you need to follow to write off bad debt: first, you need to add a bad debt item to the products and services list, next, you need to create a credit memo, and finally, you need to apply the credit memo to the unpaid customer invoice. We will walk you through these steps in this section.
...Mastering QuickBooks 2020
By :
Mastering QuickBooks 2020
By:
Overview of this book
Intuit QuickBooks is an accounting software package that helps small business owners to manage all their bookkeeping tasks. Its complete range of accounting capabilities, such as tracking income and expenses, managing payroll, simplifying taxes, and accepting online payments, makes QuickBooks software a must-have for business owners and aspiring bookkeepers.
This book is a handy guide to using QuickBooks Online to manage accounting tasks and drawing business insights by generating reports easily. Using a fictitious company, the book demonstrates how to create a QuickBooks Online account; customize key settings for a business; manage customers, vendors, and products and services; generate reports; and close the books at the end of the period. QuickBooks records your debits and credits, so you don't need to learn accounting. However, you will find out what happens under the hood and understand how your financial statements are impacted by what you do in QuickBooks. You'll also discover tips, shortcuts, and best practices that will help you save time and become a QuickBooks pro.
By the end of this book, you'll have become well-versed with the features of QuickBooks and be able to set up your business and manage all bookkeeping tasks with ease.
Table of Contents (19 chapters)
Preface
Free Chapter
Getting Started with QuickBooks Online
Company File Setup
Migrating to QuickBooks Online
Customizing QuickBooks for Your Business
Managing Customers, Vendors, Products, and Services
Recording Sales Transactions in QuickBooks Online
Recording Expenses in QuickBooks Online
Managing Downloaded Bank and Credit Card Transactions
Report Center Overview
Business Overview Reports
Customer Sales Reports in QuickBooks Online
Vendor and Expenses Reports
Managing Payroll in QuickBooks Online
Managing 1099 Contractors in QuickBooks Online
Closing the Books in QuickBooks Online
Handling Special Transactions in QuickBooks Online
Shortcuts and Test Drive
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