Posting A/P & A/R entries.

Question:

My name is Greg and I am a Business Manager for a non profit. Our year goes from July 1 to June 30 and our full year audit is due today. I went to post the year-end journal entry and quickbooks is telling me that a customer name must be provided on this split line entry. I am confused and getting frustrated. Any advise or help would be greatly appreciated.........

Answer:

Anytime that you post to an accounts receivable account, you must include a customer on the split line, otherwise your receivable accounts would be inaccurate. The same is true with accounts payable...you must include a vendor to keep A/P aging reports accurate.

The FAIR TAX - Finally a Solution to our Income Tax System.

I have been an avid listener to the Neal Boortz show, I also make it a point to read "Neal's Nuze". He has done a great job over the last few months explaining how the travails of our current tax system can be fixed by the "Fair Tax." Through my experience as a CPA, I have seen both low income and high income taxpayers for lack of a better word...screwed by our tax system.


With a consumption tax, you are taxed when you spend...but don’t worry, there will be no 4 dollar gallons of milk. Under the current system, when you pay for that gallon of milk you are paying for the income taxes of the dairy farmer, the dairy/bottler, the wholesaler, the truckers that distribute the milk, and the grocery store. Under the "Fair Tax" that all goes away plus you keep 100% of your income (look ay your pay stub that will probably be a 30-50% raise...not bad).

On top of this, all taxpayers will be given rebate checks for the amount that the average person would spend on basic necessities.

This is a truly fair system...you don't spend...you don't pay tax. Rich or poor there are no loopholes and you don't have to pay me $300 to find out how much you owe (I hope I still have a job).

'You absolutely need to check out this book, I can't wait to get my copy.

Customer Insurance Payments.

Question:

We are an insurance company and are setting up QuickBooks for the first time. In some cases the insurance company we are placing the business with will not accept customer check. We write the insurance company a check and the customer writes us a check. We are unsure how to enter these transactions into QuickBooks as they are not income or expenses. They just wash each other out. Thanks for the help.

Answer:

This is a very common question in your industry. The way that I have my clients set this up is as follows:

1. Set up a new current liability account named "Insurance Transfer Account" or something similar.

2. Set up a new invoice item named "Customer Premium Payment" classify it as an "Other Charge" and have it post to the account that you created above.

3. Receive the payment and deposit it just as you would any other invoice item.

4. When you pay the insurance company on behalf of your client, put the Insurance Transfer Account as the expense on the check expense section.


This has worked very well for several clients who are in this industry. You can always check the amount that you have in this account by looking at the current balance sheet.

NetSuite Conversion. Help Needed!

Question:

We are converting from QuickBooks to Netsuite. Is there an easy data transfer program so that we do not lose all of our previous data?

Answer:

I am not aware of anything designed for this purpose...Is anyone else aware of something?

Netsuite is a big time accounting package, so I am sure that they offer a conversion service. However, with any of the big time accounting software packages come big time consulting fees. If you are just now buying their product you may be able to negotiate a good rate as part of a package deal.