Adding aws accounts buy to Quickbooks is very easy, the warning here is that it is so easy that making a mistake either in placement of the account or the identification of where to put it may be a little deceiving. It is always advisable that you consult a professional to help you as once you add these accounts and begin using them, it can be a long procedure to correct mistakes. And because each business is unique in it’s accounts, it may take a little creative maneuvering to best fit your type of business. Having said that, let’s look at your different options in adding accounts.
I. Income Accounts
There may be several ways that your business receives income. (this is where the help of a ProAdvisor comes in) For example if you are a service industry business, let’s use a lawn care company as an example. The overall easy way to handle this is to enter ALL income into one account. However, this doesn’t help you as a business owner decide which of your services is more profitable than another. You may not care about that, but it only takes another few minutes of effort to get it right, so let’s make sure we do so. Create an account for income for lawn maintenance, another for landscape design and yet another for pest control or another similar service. Create a parent account named Lawn Services and a sub account for each of the areas you earn income in.
Upon entering these sub-accounts you will see a box labeled sub-account of, check that box and type Lawn Services. The description, note and tax-line mapping boxes are optional, for the best results however, at least utilize the tax-line mapping and an income account will more than likely fit the first category listed which is Income: Gross Sales or Services. Consult your tax professional for more help with this area.
II. Expense Accounts
The expense window looks identical to the income in every way. I highly recommend a wise use of sub-accounts in the expense accounts area as well. For example, grouping your electrical, water and phone bills under utilities is what a lot of businesses do, however, what happens when you add a cell phone?
I would create a parent account for utilities and sub-accounts for power, water, phone, and other utilities. I would also suggest doing the same with advertising expenses, having one parent account for advertising and sub-accounts for signs, yellow pages ads, internet ads, and more so you can keep more careful track of your cash flow.
When you get to payroll expenses, you are definitely going to need to use sub-accounts appropriately and create sub-accounts for FICA payable – Company, Social Security Payable – Company, Worker’s Comp, etc. If you do not use Intuit’s Payroll services, that’s okay, but it increases the risk of mistakes in transmission of information from the payroll companies’ to the Quickbooks files.
III. Fixed Assets
There is a step by step procedure in entering fixed assets into Quickbooks and a detailed explanation of how to categorize your fixed assets. Fixed Assets include buildings, land, Machinery, vehicles and Accumulated Depreciation. The only difference in the Fixed Assets window is that the Tax-Line Mapping is automatically entered for you.