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Archive for the ‘QB’ Category

Changing QB File Names

Posted by taxguru on April 8, 2007

Q:

Subject: I need to change a QuickBooks file name

Hey Kerry,

I have upgraded to QuickBooks Pro 2007 and loaded the files from 2002 and input all the checks from 2003 and 2004 to bring the file current. ( because I couldn’t find the updated file you sent back to me from the 2003 taxes)

Now, I have the 2004 stuff entered and the files have the names associated with 2002.  I would like to change them and can’t figure out how to do it and still keep them “on the radar” for QuickBooks.

If you think it’s easy enough, I would appreciate your help, sent to me at home tonight as I’m just about ready to close this place down and head home to my other job. 

Gracias senor~

 

A:

While you are not in the QB program, use Windows Explorer or whichever file manager program you prefer (we use PowerDesk), to go into the folder where you have your data files. QB 2007 uses three data files for each company, with extensions of QBW, QBW.ND, and QBW.TLG

You can right mouse click on each file and select “Rename” to change it to whatever you  prefer.  As long as the file’s extension is the same as before the change, the program will open it with no problem.

I hope this works for you.

Kerry

 

 

The best book on QuickBooks Premier Editions

 

Posted in QB | Comments Off on Changing QB File Names

QuickBooks Reports

Posted by taxguru on April 3, 2007

Q:

Subject: Quickbooks Update/Conversion

Kerry:

I just got through reading your information on “Quicken vs. Quickbooks” and it was very helpful. I am a business administrator at a church just south of Nashville and we recently upgraded from Quickbooks 2002 to Quickbooks Pro 2007. We have used Quickbooks for 15 years.

Everything went great except the reports for one of our accounts will not convert over. It tells us that we will have to recreate all of the reports. We have four accounts in Quicken; Budget, Savings, Reserve and a construction pledge account. All of the reports transferred over with no problem except for the budget account. We have spent hours on the phone with Intuit support and they have not really been helpful. About the only thing we can get out of them is that since our reports are set up on a cash basis instead of an accrual basis they will not convert over. This is not really accurate since the other three accounts are all set up on a cash basis and all of the reports converted over just fine. 

The budget account is our largest account and has the most reports that are set up so this will be a major pain to redo all of the reports.

Any thoughts you might have on this? Have you seen this before and if so do you know a solution?

Thanks,

A:

I don’t have any easy solutions for this kind of problem. Having been through very similar situations myself – especially going from Quicken to QB – I do want to share my experiences. 

First, I only work with Cash basis reports and have in fact been quite frustrated with the way in which most Intuit reports start off as Accrual and make us modify them to reflect Cash.

The first time I had the kind of problem you mentioned, I ended up spending hours and hours researching online tech support, user forums and having phone calls with Intuit.  The end result was the same as you had; the reports had to be set up from scratch in the newer program. However, when I did that, it only took about 15 minutes to set up the new report, and it turned out to be much more useful than the original one in the older program.

Needless to say, I was kicking myself for wasting so much time trying to iron out the automatic conversion process when it took so little time to just set up a new report from scratch.  Now, when I encounter similar problems, I just automatically design a new report form scratch to give the same info I want.  These usually only take about five minutes to do.

I’m sure this wasn’t the answer you were hoping for; but if you were to just set up your reports, starting with the pre-configured ones in the new version of QB you are using, you will find that it takes much less time than you thought it would.

Good luck.

Kerry Kerstetter

Follow-Up:

Thanks for your response Kerry…That is what I figured and we will start making the new reports. We, like you, spent way too much time
trying to solve the problem when we could have recreated the reports by now.
 
God bless…

 

 

 

Posted in QB | Comments Off on QuickBooks Reports

QB File Migration Is One Way

Posted by taxguru on March 30, 2007

Q:

Subject: Quicken versus Quick Books
 
KMK:
 
I liked your comparison of Quicken vs QB on the webpage http://www.taxguru.org/qb/qbvsquicken.htm as I am considering that exact question now for a non-profit (daycare) company.  I have been doing books for a church on Quicken for a number of years and have found it satisfactory but I admit that I may not know what I’m missing.
 
I have a question about QB that maybe you can answer for me.  Can QB exchange files with an earlier edition of QB?  I know that the 2002 version of Quicken that I am available with will not do a “Save to an earlier version of Quicken.”
 
Thanks for your time,

 

A:

QB data files have always been the same as Quicken’s.  You can roll them forward to a newer version of the program, but can’t roll them backwards to an older version.  Thus, you need to be careful of upgrading data files, because you can’t go back after you’ve moved forward.

I hope this helps.

Good luck.

Kerry Kerstetter

 

The best book on QuickBooks Premier Editions

 

Posted in QB | Comments Off on QB File Migration Is One Way

Payroll Info In QB

Posted by taxguru on March 3, 2007

Q:

As far as changing the payroll taxes from the payroll expense account, should I go into payroll item lists and edit each account and create one new account called “Payroll Taxes” for all the different taxes or create an account for each tax? Or create sub accounts for each tax under a payroll tax account?

 


A:

For the QB payroll set-up, it is completely customizable, starting from how the program comes, with all of the liabilities lumped together and all of the payroll related costs lumped together. 

At a minimum, we need to separate out the gross wages from the payroll taxes because one of the basic reviews IRS does is a match between the wages expense deducted on the corp tax return and the total from the W-2s for the year.

For reconciliation purposes, I like to have sub-accounts that tie into the tax forms.  On the expense side, I like to set up a sub-account called Payroll Taxes under the main Taxes expense account.  Then, under the Payroll Taxes account, there should be a sub-account for each payroll tax form:
941 (FICA + Medicare)  
940 (FUTA)
SUI (State Unemployment)

Then, those company expense items in the payroll item list should be edited to be mapped to their new sub-accounts.  Items reflecting withholdings from the employees’ checks, such as Fed and State income taxes and their share of FICA + Medicare, should not be mapped to the expense accounts. Those need to be mapped to the appropriate liability accounts.

Similar to the sub-accounts for the payroll tax expenses, I like to have sub-accounts under the Payroll Liabilities accounts that correspond to the various tax forms:
941 (FICA + Medicare + FITW)
940 (FUTA)
SUI
SITW

The balances in these accounts can then be reconciled at the end of each month to agree with the payments that need to be sent in.

I hope this isn’t too confusing.  Until a few years ago, I was actually able to make all of these changes in my QBX version of client files.  For some reason, the QB programmers removed that capability a few versions ago, and those changes can only be done on the master QBW file.

Assuming the program hasn’t been changed too much, if you make those edits to the payroll items now, they will be effective for all payroll entries in your data file, including all prior years.  This will make doing the 2006 1120S even easier.

Kerry

 

 

 

 

Posted in QB | Comments Off on Payroll Info In QB

Recording Stocks In QB

Posted by taxguru on February 11, 2007

Q:

Subject: Quickbooks for Investing
 
I noticed that you stated QB is fine for recording investments and don’t need Quicken’s ability to track fluxuating values in the stock.  I agree, and from a business point of view, your costs don’t change daily and remained fixed.  When you sell the stock, you derive your COGS from this data.
 
However, I noticed that you didn’t mention other costs associated with the purchase and sale of individual blocks of stock, such as commissions paid on purchase and on sale?  How well does QB record this information.  Do I have to do a PO every time I buy and a Invoice every time I sell, just to have a place to add commissions to the costs, or does QB have an easier way to handle this?
 
Thanks!


A:

When you make the entries for stock purchases, you need to post the total cost, including commissions.

When you sell stocks, you can either post the gross sales price to the SalePrice Income account and the Expenses to a sub-account for selling costs under that; or just enter the net sales price (gross less commissions) into the SalePrice account.  Since more and more 1099-Bs from brokers are reporting the net sales price instead of the gross price, the latter approach may be easier when it comes to reconciling the QB reports to the 1099-Bs.

Your professional tax advisor should be able to help you set up the accounts and sub-accounts in your QB file that will enable him/her to more efficiently prepare your Schedule D.

I have been posting these transactions through checks, deposits and general journal entries.  I have never used POs or invoices to do this. 

Good luck.  I hope this helps.

Kerry Kerstetter

 

 

 

 

Posted in QB | Comments Off on Recording Stocks In QB

Quicken and Multiple Files

Posted by taxguru on February 2, 2007

 

Q-1:

Subject: Multiple Quicken files
 
Dear kerry
I read your web site and blog with great interest.  I use Quicken 2006 DeLuxe for my personal finances on one machine, and I also use it on an older machine to keep books for our home owners association.  The old machine is on it’s last leg and I was thinking of trying to do them both one one machine.  I couldn’t find anything in Quicken help on how to do it.  I first thought I could create a seperate directory and do a backup and restore, but was afraid the data would get comingled.  Would this work?  And what about all the saved reports, and categories, etc.   I hope you can help.  thanks.

A-1:

You can have an unlimited number of company Quicken files on the same computer and switch back and forth between them.  Before I made all of our clients upgrade to QuickBooks, most of them were on Quicken and I had hundreds of their files on my computer.  I like to set up separate folders for each client just for ease of locating; but each client folder had multiple Quicken data files, covering their personal and corporate finances, as well as multiple years.  As long as each company file has a different name, the program doesn’t mix them up.

So, all you need to do is copy the Quicken data files to your new computer, either directly or via Backup & Restore.

Good luck.

Kerry Kerstetter

 

Q-2:

Kerry
I really appreciate you quick response.   Thanks so much.  Do the reports, categories, etc follow the data files?  That is, are the reports, categories, etc. for my personal quicken file seperate from the ones for the homeowner reports?

 

A-2:

Each file will have its own saved reports and other data, with no reference to any of the other files.  There is no commingling of any kind between the data files because you can only have one open at a time.

As I said, I used to have literally hundreds of different Quicken client data files on my computer and would switch back and forth between them with no problems.  It’s that way currently with QuickBooks data files.

Good  luck.

Kerry

Follow-Up:

Kerry
Thanks a lot for helping.  If I could, I’d steer some business your way.
 
 

 

 

Posted in QB | Comments Off on Quicken and Multiple Files

Posting Stocks in QuickBooks

Posted by taxguru on January 28, 2007

Q:

Subject: Stocks

 
Kerry,
 
I have made the dividend entries as I understand your instructions.  Of course the balance in QuickBooks does not agree with the balance on the statement for this account.  Since I only pay tax on the dividend income, I assume this in not a problem.
  
P.S.  I see my question made your newsletter so I don’t feel too dumb!


A:

Most non-accountants are confused as to the proper way of handling reinvested dividends; so I thought your question was perfect for educating others.

If you are referring to the market value of the shares, you are correct that the stockbroker’s statement will not match the figures in your QB because QB is strictly a record of your cost basis, or what you have invested into the shares.

However, the dividend income reported by the stockbroker for the previous year should match what you have in your QB and is the most important way we have of double-checking the accuracy of the QB data.

Kerry


Follow-Up:

Kerry,
 
My dad just had his 88th birthday.  He is a retired accountant so I thought you might enjoy seeing his reply.

He is much better on the computer than I am.  He teaches classes at the senior center!

Thanks for sending Kerry’s reply.  I am impressed with him and his explanation.

Your QB is more detailed and accurate, as he said.

Over the years I have become accustomed to the automatic steps taken by
Quicken and MS Money and forgot I ever used a General and other Journals.

In MS Money,  my portfolio page shows in each investment the number of
shares owned,  The total value as of the last entry date and the amount
of gain.  This is a backward way to arrive at the investment cost, but
arrives at the same answer.
 
 

The best book on QuickBooks Premier Editions

 

Posted in QB | Comments Off on Posting Stocks in QuickBooks

Working With Quicken

Posted by taxguru on January 6, 2007

 

Q-1:

Subject: Quicken
 
I googled a question that I had to do with categorizing multiple business income/expense transactions in the same file without having to make subcategories galore. Your site came up and I want to thank you for your tips that helped me sort out these issues. For some reason I never thought of using classes for that.

A-1:

I’m glad you found that tip useful.  I’m actually amazed at how many people still overlook the ability of Classes in Quicken and QuickBooks to easily handle several different businesses in one data file. 

Good luck.

Kerry Kerstetter


Q-2:

Thanks for your response. I do have one related question.

Because we provide childcare, I need to send a report to each client at the end of the year and have used classes to separate them. If I isolate the different business accounts with classes, the Deposits I record will not appear because the transactions are split in classes for each client (Income:Private Clients/name) under each deposit.  Is it suggested to record deposits in a separate account then record the total deposit again in the business account applied to, or do you know of another way?

Thanks.

A-2:

It shouldn’t be necessary to double enter anything ion order to be able to produce those reports.  I used to print those out with Quicken with no problem.

Unfortunately, it has been so long since I’ve done anything with Quicken files except covert them to QuickBooks that I am too rusty on the detailed steps to be able to explain how to produce your desired reports. 

This also brings up the fact that you would be better off upgrading to QuickBooks for the reasons I laid out in this article a long time ago.  You wouldn’t lose any of your data and it would allow you a number of different ways to produce the detailed client/customer reports you are having problems with in Quicken.

Good luck.  I’m sorry I couldn’t be more help.

Kerry Kerstetter

  

The best book on QuickBooks Premier Editions

 

 

Posted in QB | Comments Off on Working With Quicken

Recording Reinvested Dividends

Posted by taxguru on January 2, 2007

 

Q:

Subject: Stocks
 
Kerry,
 
I am trying to straighten out a stock account that my dad gave me in 2004.
 
He says with Quicken and Microsoft Money he can enter a dividend payment showing the number of shares and the price paid for them and the entire shares held are updated to that price.  Thereby keeping it up to date of the last purchase.  Is there a way to do that on Quickbooks? 


A:

For reinvested dividends in QB, you need to use the general journal to make entries where you credit the Dividend Income account and debit the asset account for the stock.  This will keep a running tally of the total amount you have invested in those shares and accurately reflect your actual cost basis. 

If you sell all of the shares at one time, we can just apply the total amount in that account against the sales price to get your gain or loss. 

If you only sell part of your holdings, we have to manually take the total amount in the account and divide it by the total number of shares you owned before selling some off to compute the average price per share and then make the appropriate journal entry for the number of shares you sold. 

QB isn’t as automated as Quicken is in regard to tracking stocks; but it is actually a lot more accurate in keeping the proper documentation of the correct cost basis.  Quicken too frequently inflates the book values of stocks to their market values, which is wrong to do before you actually sell the stock.  This is one of the many reasons why I prefer QuickBooks over Quicken. 

I hope this isn’t too confusing.  Let me know if you need any more help in understanding this.

Kerry


Follow-Up:

Thanks.  I will do my best!

 

 

 

Posted in QB | Comments Off on Recording Reinvested Dividends

Updating QuickBooks

Posted by taxguru on November 14, 2006

 

Q:

Kerry:

What do you think about the new versions of Quickbooks as I am thinking of upgrading. Do you like the online version?
 
Thanks
 


A:

So far, the 2007 QB program has been working well.  I have been using it for our stuff and haven’t had any problems.  It’s supposed to have a more powerful Accountant’s Review capability, but I haven’t had any clients use it yet. 

In spite of Intuit’s heavy promotion, I have never been a supporter of their online QB service because the data is not transferable to the desktop program, making users prisoners.  I have told them for several years that  I would be more willing to recommend their service if the data could flow in both directions.  I reviewed the service in my blog a few years ago.

In spite of that, I do have one client in Oklahoma who has been using the online version for a partnership for a couple of years and I have used it to prepare a couple years of partnership tax returns.  They like it because everyone can have access to the data without having to send files back and forth.  While I was able to get enough data for the tax returns, I found it much more difficult to work with than the desktop program and I am still advising against its use.  It also still has al of the limitations I mentioned in 2004.

I hope this helps.

Kerry

 

 

 

Posted in QB | Comments Off on Updating QuickBooks