- Joined
- Mar 4, 2014
- Messages
- 12
- Reaction score
- 0
I took a new job with a friend's company a few months ago. They needed their accounting done. I had just finished the courses needed to sit for the CPA exam, but had no prior QuickBooks experience. It is a small, growing company, and not really willing or able to send me to a QuickBooks certification class to get going. They gave me the bank statements beginning with 2011 and I just used the "make journal entries" tool to record everything. I was using cash basis, obviously. Now that I am through 2013, I want to be more detailed in the reporting.
My first question is about basis. Should I stick with cash basis? Company is around 500K annual revenue, and an LLC, all flowing to the owner's 1040.
Second question. They now want to track inventory through QuickBooks. They hadn't been doing so before. I just entered "Equipment" accounts for inventory purchases and broke them down by vendor, since that's all I had to go on from the statements. So I have about 65K in various Equipment asset accounts sitting there. I believe I enter an item list in QuickBooks for my inventory items and it gets tracked under a parent Inventory Asset account? What do I do with the equipment asset account built up? I was thinking I would just rename the equipment accounts to the inventory items desired and shuffle the balances until accurate, but that doesn't seem correct for QuickBooks.
I'm sure I have more questions, but those are the big ones to start.
Thanks for the input!
My first question is about basis. Should I stick with cash basis? Company is around 500K annual revenue, and an LLC, all flowing to the owner's 1040.
Second question. They now want to track inventory through QuickBooks. They hadn't been doing so before. I just entered "Equipment" accounts for inventory purchases and broke them down by vendor, since that's all I had to go on from the statements. So I have about 65K in various Equipment asset accounts sitting there. I believe I enter an item list in QuickBooks for my inventory items and it gets tracked under a parent Inventory Asset account? What do I do with the equipment asset account built up? I was thinking I would just rename the equipment accounts to the inventory items desired and shuffle the balances until accurate, but that doesn't seem correct for QuickBooks.
I'm sure I have more questions, but those are the big ones to start.
Thanks for the input!