Contact woodardaccounting.com for more information and tips on improving your quickbooks experience.
If your quickbooks file is not in order you could easily double the cost of your business tax return because you are paying extra for your CPA to balance your books before he can touch the taxes.
Here are some simple steps to follow to make sure your file is in order before you send it to your CPA to file your return.
- Chart of Accounts: All of your bank accounts, checking accounts, credit cards and loans need to have their OWN account in Quickbooks.
- Revenue and Expense accounts: Each one of the vendors you use needs to have it’s own account as well. Don’t put your internet service and your phone together under utilities with your garbage pick up. They need to be separate.
- Loans and Credit Cards: in order for your books to balance you need to have all the balances correct in all at the end of the year. Create a separate account for your interest expenses, this is a deductible expense. For every payment you make, split the entry in the ledger, so you know how much goes to principle and how much for interest on the loan.
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