Tag Archive for: QuickBooks

Reconciling Your Checkbook in QuickBooks


Quickbooks got your stressed? We have a class for that!

Have you been entering checks and deposit into QuickBooks, but the checkbook balance doesn’t equal what’s on your bank statement.  It is most likely due to outstanding checks or deposits, which have not cleared the bank.  It could also be a transaction that was not recorded or recorded incorrectly.  Doing a bank reconciliation will help you identify the problem and is a fairly simple procedure.

  • Start by clicking on the “Reconcile” button from the home page.  Be sure you are in the correct bank account and enter the ending balance from your bank statement and any service charges or interest income earned.
  • Then click continue.  This will bring you to a list of your transactions with the checks on the left and deposits on the right.
  • Mark off all the transactions that cleared the bank.
  • Once that is done, the bottom right of the screen shows the difference.  If it’s zero, you are in balance. If not, you have an error.

To fix this, start by looking at the bottom left for the total deposits and checks that cleared.  Your bank statement will have the same totals.  If the deposits don’t match, then the issue is with the deposits. If you need to adjust an entry, highlight the entry and click “Go To”, which will bring you directly to that entry so you can change it.  If you need to add missing entries, you can click ”Leave”, go to the checkbook, make the entries, return to the reconciliation, and continue.  After making all the adjustment and your difference becomes zero, click reconcile now.  I recommend printing both reports and keeping them with your bank statements.

An accurate checkbook is a huge step in having an accurate financial statement that you can use to manage your business.

Interested in learning more about QuickBooks? Register for our QuickBooks Seminar at a location near you, learn more >

How to Set Up a Loan in QuickBooks

Entering loans in QuickBooksOne of the most common mistakes we see in QuickBooks involves the setting up and paying of loans.  Many QuickBooks users don’t set the loan up at all and just expense the total payment.  Intuitively, this may make sense, but it is incorrect.

The loan should be set-up as a liability account on the balance sheet.  The payments should be split between the interest and loan principle.  The interest would be charged to interest expense and the principle to the loan liability account.  You may have to set-up the loan as a new general ledger account.  This is done in the chart of accounts by right clicking and choosing “New Account”.  Be sure to use either a current liability or a long-term liability as the type of account.

As an example lets say you borrowed $10,000 and your first monthly payment is broke down as $900 principle and $100 interest.  After setting up the account, you would record the deposit of $10,000 and use the loan account as the category.  The payment would be split between $900 to the loan account and $100 to the interest expense account.  This will drop the amount due on the loan to $9,100.

By entering the loan this way your balance sheet will be correct, and your expenses will not be overstated causing a surprise at tax time.

Interested in learning more about QuickBooks? Register for our QuickBooks Seminar at a location near you, learn more >

QuickBooks Seminars 2012

QuickBooks Flyer

Does QuickBooks give you a headache? Let our Certified QuickBooks ProAdvisors teach you the ins and outs of this complicated program. We are offering two class levels – one designed for beginners and one for intermediate users.


Never opened QuickBooks before? No problem. We’ll teach you what you need to know to get started. From setting up a company to processing payments to sharing files with your accountant, you’ll be up and running in no time.


Have you been using QuickBooks for a while but need to sharpen your skills? This class is for you. We’ll walk you through everything from customizing forms to creating reports and graphs to share with your team.

Things to Know

  • Each class will be from 8 am to noon on the assigned date. Registration begins at 7:30 am.
  • If you have QuickBooks 2012, please arrive no later than 7:30 am so you have time to install the sample material.
  • Each class will be taught by a Certified QuickBooks ProAdvisor.
  • The cost to attend is $125. Please register on-line at hscompanies.com.

Class Schedule + Locations


Beginner — 9/25/12
Intermediate — 10/24/12

H&S Fremont
711 W. Main St.
Fremont, MI 49412

Grand Rapids

Beginner — 10/3/12
Intermediate — 10/25/12

Country Inn & Suites
3251 Deposit Dr. NE
Grand Rapids, MI 49546

Mount Pleasant

Beginner — 9/27/12
Intermediate — 10/30/12

Comfort Inn & Suites
2424 S. Mission St.
Mt. Pleasant, MI 48858


Beginner — 10/2/12
Intermediate — 10/23/12
H&S Muskegon
4985 S. Harvey St.
Muskegon, MI 49444

To learn more, download our QuickBooks Seminar flyer.

Undeposited Funds Account

Petty_cashIs your undeposited funds account growing?  If it is, the bad news is you are recording deposits incorrectly. The good news is, it is easy to fix.  The general flow of QuickBooks is that you create an invoice, receive payments against those invoices, and make the deposit.  Many people skip the “make a deposit” step and just enter the deposit in the check register.  This missed step will cause the undeposited funds account to grow and, depending upon which account you post your deposit to, it may overstate your sales or understate your accounts receivable.  On the home page, there are icons for creating invoices, receiving payments and making deposit with work flow arrows between them.  Use the icons and follow the arrows and QuickBooks will behave as it should.

When you use the “make a deposit” icon you will see a list of all the payments received that are ready for deposit.  If you have not been using this icon, you will have a large list of payments going back to the first payment that was applied.

Need help cleaning up your payments list? Contact Mike Farmer.

Interested in learning the more about QuickBooks? Keep an eye out for QuickBooks seminars, being lead by Certified QuickBooks ProAdvisors.