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Bookkeeping Success!. “We need a certain delight in tending the books, like in tending a garden.” ~ Connie Harvey. Organization and Filing *. Divide your paperwork into 4 sections : Action needed to be taken (folder - bills to pay, etc) Action taken but not yet recorded in the system

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Bookkeeping success

Bookkeeping Success!

“We need a certain delight in tending the books, like in tending a garden.”

~ Connie Harvey

Organization and filing
Organization and Filing *

  • Divide your paperwork into 4 sections:

    • Action needed to be taken (folder - bills to pay, etc)

    • Action taken but not yet recorded in the system

    • Completed paperwork ready to be filed (tray)

    • Completed paperwork filed away (big filing cabinet)

  • Set up and label file folders:

    • By Date – All items inDaily, Weekly or Monthly

    • By Function – Bank Statements, receipts, etc.

    • Alphabetically – Customers and Vendors

* Credit to: Bookkeeping is not a four-letter word by Janet L. Redick

It s all about balance
It’s all about balance



Assets – Liabilities = Owner’s Equity

Debits and credits


Bank Accounts

Accounts Receivable


Equipment, Vehicles, etc


Pre-paid Expenses

Debits and Credits

  • Liabilities

    • Loans

    • Credit Cards

    • Accounts Payable

    • Sales Tax Payable

    • Payroll Liabilities

    • Gift Certificates Sold

    • Rent Deposits Held

  • Equity (Shareholders)

Something to remember
Something to Remember:

  • Assets, Liabilities and Equity are part of the Balance Sheet and are normally on the top of the list in the Chart of Accounts and have a register when you double-click.

  • Income, COGS, and Expensesare a part of the Profit & Loss Statement and are normally on the bottom of the list in the Chart of Accounts and have a quick reportwhen you double-click.

Note: Before electronic bookkeeping, there were many journals to post to.

Double entry accounting
Double Entry Accounting

  • Q: What does that mean?

  • A: Posting Debits and Credits to the Balance Sheet and/or the Profit & Loss Statement.

    • Note: The Balance Sheet is for Reality,

      and the Profit & Loss is for Reporting

Bookkeeping success

Double Entry Accounting►QuickBooks does it for you behind the scenes:

  • In an Invoice:


    Accounts Receivable Sales

    Sales Tax Payable

    Cost of Goods Sold Inventory Asset

  • In a Sales Receipt:


    Undeposited Funds Sales/Sales Tax Payable

    Cost of Goods Sold Inventory Asset

Bookkeeping success

Double Entry Accounting con’t…►QuickBooks does it for you behind the scenes:

  • In the Enter Bills:


    Inventory Asset Accounts Payable


  • In the Payroll:


    Payroll Expenses Checking

    Payroll Liabilities

Some pitfalls to avoid
Some Pitfalls to Avoid:

  • Accounts Receivable

    • Recording payments without using “Receive Payment”

  • Accounts Payable

    • Recording Checks without using “Pay Bills”

  • Sales Tax Payable

    • Recording Checks without using “Pay Sales Tax”

  • Payroll Taxes Payable

    • Recording Payments without using “Pay Payroll Liabilities”

No more “widows and orphans”!

The general ledger
The General Ledger

“The Catch All”

  • Your best tool for entering transactions

    you don’t know what to do with, such as:

    • Daily Sales from a cash register tape with deposits going to several accounts due to merchant card service, cash payouts, etc.

    • Owner Investments and Draws

    • Adjustments

The financial statements
The Financial Statements

The Big Picture

  • Balance Sheet

    • Snapshot at the moment of all accounts

  • Statement of Cash Flows

    • Cash movements during a given time period derived from operating, investing and financing activities

  • Profit and Loss

    • Income and expenses during a given time period

Best practices or good habits
“Best Practices” or Good Habits

Think of it like watering your plants, or brushing your teeth… you do it as often as is needed to stay healthy.

  • Enter transactions at least once a week

    • Cash transactions

    • Checkbook transactions

    • Credit Card transactions, etc.

  • Reconcile all statements once a month

    • Checking and Saving Statements

    • Credit Card Statements

    • Loan Statements, etc.

Back up often

Another good thing to do
Another Good Thing To Do:

Map your

Chart of Accounts

to your Tax Form

(Schedule C, 1065, 1120 or 1120S)

Tax-Line Mapping is in the “Edit Account” window.

*Opening Balance Equity should come to $0.00

Employees and payroll
Employees and Payroll

Basic Forms:

  • 941 – Federal Withholding Taxes (quarterly)

  • 941N – Nebraska Withholding Tax (quarterly)

  • UI Connect – State Unemployment Tax (quarterly)

    • Note: The above three taxes may need to be deposited more frequently.

  • 940 – Federal Unemployment Tax (annually)

  • W-2’s and 1099’s

  • W-3 – Federal Withholding Reconciliation

  • W3-N – Nebraska Withholding Reconciliation

  • W-4’s

Other taxes
Other Taxes

  • Sales and Use Tax – Form 10

    • Monthly, Quarterly, or Annually

  • Property Tax

    • Semi-Annually or Annually

  • Income Tax

    • Schedule SE

    • Schedule C or F

    • Schedule A

    • Form 1040 (or appropriate form)

Prompts and automation
Prompts and Automation

  • Laminated Charts and Reminders

    • Visual color coded instructions

      • See examples…

    • Pop-ups from your computer calendar,

      • QuickBooks, Outlook, Hotmail, etc.

  • Templates, Programs and Calculators

    • Data input forms and reports using computer programs such as QuickBooks, Excel and Access

      • See examples…

Know where to get help
Know where to get help

Or, call your CPA or your REAP Business Specialist

  • Federal Taxes:

    • Click Business,

      • then Small Business/Self-Employed

  • State Taxes:

    • Click Business, then choose topic.

  • Business Knowledge Center:

    • General Information on Management and Business

  • “Help” on your computer program menu bar.

    • QuickBooks has an excellent Help tool

Bookkeeping success

Tend theBooks

Give the Books to another to tend

But don’t neglect the Books….

Or your business can’t succeed

Bookkeeping success

“Where you tend a rose,

~ a thistle cannot grow.”

Frances Hodgson Burnett