Very helpful and informative! I've been racking my brain trying to figure out why none of my reports made any sense for over a year and a half now... it literally never even occured to me (although I asked the accountant what method he was using, he never answered me), but my reports showed tons and tons of income that we simply just never received. It wasn't until on a new computer I went to go run a report and/or maybe it was an update that happened since the last time I ran reports??? But, it asked me what accounting method I wanted the reports in... it wasn't until that message today that I realized why our numbers were so skewed, as we have alot of invoices hanging out there that need to be cleaned up in one way or another. I appreciate your videos so very much more than you realize! I just wish I would of known this was a problem or actually, simply just a setting before that message popped up today. I've wasted countless hours trying to figure out why the numbers are so skewed and watched so many videos... But, not being an accountant, nor having any classes past 'computerized accounting" that mainly taught excel spreadsheets formulas back in 1998, I didn't even realize that the reports would be different! So, I didn't even have a clue as to what to even search to figure out what the issue was... This video went above and beyond. I like the quickness of it. And, I've saved it for future reference!!
Very helpful and informative. these Unapplied accounts are simply place holders until Invoices or bills are created after the fact of receiving or submitting payments. Helps a lot.
What an awesome video and I definitely loved the pace. It was quick and rapid fire. Tremendous value in distinguishing deltas between cash and accrual based reports. Thanks for posting this.
Good video...even years later. Would like to see the credit memo example on the bill/bill pmt side for prepaid expenses. And, for bonus, include a loan. For example, financed liability insurance is pretty common. So, let's say I have a $12,000 insurance premium. The broker gets paid a down payment, the balance is part of a premium loan that is paid off over 9 months. From an accrual basis, I want $1000 per month insurance expense. But, from a cash basis (I think) I want to see the entire insurance expense with the down payment and loan. Then of course, the interest expense on the loan over the 9 monthly payments. That's my current dilemma. Any way, very good content Hector!
I'm from india. It was very helpful. Can you please make video on matching bank balance with real example. Because I am very confuse in duplicate, clear, unclear,matching transactions.
Complicated but clear. What impact would a credit card purchase have on the BS or P&L if bought in March but credit card paid in April, using cash basis.
Questions: How do you enter tips? Since they’re not part of the invoice. How do you enter reimbursement of materials received from customer? Should that reimbursement be part of the invoice?
As always, thank you Hector for getting into the weeds to enhance our understanding. My question is related to the unapplied cash payment income. How do we clear the unapplied cash payment income if the customer overpaid and just wants us to keep the extra as donated income? They don't want the overage applied to a future invoice. (I paused the video at 10:26, so I apologize if you answer this question later in the video that I haven't seen yet)
Click on the "new" button on the left then hit "pay credit card". Then select the business account as the one paying down the credit card. If you paid the card already and have both accounts connected onto QB, you will also be able to just match the transactions as a payment to accomplish the same thing
Great video, as always! I learn so much for you-- thank you! I was hoping this video would cover if there's a way to clear out old Unapplied Cash Payments from previous years. Did a conversion from Desktop to Online, and old invoices/payments got messed up, so now customers show Unapplied Cash Payments when they shouldn't have them. Is there a way to fix these?
Hi Hector, I've cleaned up the Unapplied Cash Payment Income report for the most part. What remains is a pair of transactions with the same date: "Payment" (overpayment by customer) and "Check" (refund check issued by the business); the payment is applied to the check. Why are they still showing on the report, and how can I clean them up? Thank you in advance for your expertise.
@@HectorGarciaCPA My client actually runs the Balance Sheet reports on accrual basis, while Profit and Loss on cash basis. In what circumstances would this make sense? And that's why it's important to clean up the Unapplied Cash Payment Income account.
Hi, Hector! Your videos helped me so much! I have a problem, QBO. I have a customer who is also a supplier to us, we owe him money for an invoice and agreed we send him goods in exchange (sales invoice). How do i set the sales invoice against the purchase/expense? QBO doesnt let me use undeposited funds…so im strugling to come up with a solution.🙏 Thank you!
@@HectorGarciaCPA thank you so much for your direction!!🙏 Im using qbo at work, and started a L2 AAT course, and i got lost with this one. I learned using QBO from your videos, they are a tremendous help for total beginners, i would be lost without them! Thank you again for the work that you do! From the UK:)
Your videos are a truly a gift from the heavens! Thank you so much! Quick scenario & question: Does QBO or even QBD has a functionality like restricting amendments/posting to closed period for reporting purposes; i.e. period controls? I noticed that the bills/invoices are reported based on the bill date/invoice date. What if for example a "lost bill" dated 12/15/2021 has been received in March 2022. If we record it in QBO, I think it will change the P/L in Dec 2021 which has been closed and finalized already. It should be reported in March already, right? Instead of using the actual Bill date in the invoice, we should use a date in March (perhaps Received Date) just to have it shown and reported in March 2022 P/L.. That's the only way I can think of. Haven't used QBO yet so.... XD
Hi hector, thank you for this amazing tutorial. Question though, what if the invoice date crosses to another calendar year say 1/15/2021 , but the company received cash on 11/25/2020, will the unapplied cash income present a balance amount in P&L for year 2020? Or do we have to close it to sales? Thank you. 😊
Puede por favor hacer un video completo en español enseñando a trabajar con quickbooks online ,o por lo menos enviarme el link si ya ha hecho alguno ...gracias
Cash basis accounting is awful, I'm not sure why anyone would want to do their accounting that way instead of doing accrual than just switching to cash basis view if you want to see cash basis stuff.
@HectorGarciaCPA how so? If the goal of doing tax an accounting work is to view your expenses relative to when they occurred, I think this method doesn't help at all and creates more problems. By taxes do you mean "could reduce the amount you owe"? That seems almost like trying to manipulate Financials to reflect a reality that is different than what happened. Wouldn't you agree?
@@dpruittt09 there is a “cash basis” election on tax returns, that allows you to only pay tax in net income based on revenues measured by cash received and not open invoices… that is the context of potential tax savings
This video was extremely helpful since I'm converting to accrual after 50 years of only using cash basis. Thank you so much!
:)
Started bookkeeping a month ago. No experience. This video saved my day. Thanks!
Awesome
Very helpful and informative! I've been racking my brain trying to figure out why none of my reports made any sense for over a year and a half now... it literally never even occured to me (although I asked the accountant what method he was using, he never answered me), but my reports showed tons and tons of income that we simply just never received. It wasn't until on a new computer I went to go run a report and/or maybe it was an update that happened since the last time I ran reports??? But, it asked me what accounting method I wanted the reports in... it wasn't until that message today that I realized why our numbers were so skewed, as we have alot of invoices hanging out there that need to be cleaned up in one way or another. I appreciate your videos so very much more than you realize! I just wish I would of known this was a problem or actually, simply just a setting before that message popped up today. I've wasted countless hours trying to figure out why the numbers are so skewed and watched so many videos... But, not being an accountant, nor having any classes past 'computerized accounting" that mainly taught excel spreadsheets formulas back in 1998, I didn't even realize that the reports would be different! So, I didn't even have a clue as to what to even search to figure out what the issue was... This video went above and beyond. I like the quickness of it. And, I've saved it for future reference!!
:)
Very helpful and informative. these Unapplied accounts are simply place holders until Invoices or bills are created after the fact of receiving or submitting payments. Helps a lot.
:)
1.30.21 Hector, was interesting to see how the amounts flowed around. I will have to watch a few times to follow. Thanks
Complicated
What an awesome video and I definitely loved the pace. It was quick and rapid fire. Tremendous value in distinguishing deltas between cash and accrual based reports. Thanks for posting this.
Good video...even years later. Would like to see the credit memo example on the bill/bill pmt side for prepaid expenses. And, for bonus, include a loan. For example, financed liability insurance is pretty common. So, let's say I have a $12,000 insurance premium. The broker gets paid a down payment, the balance is part of a premium loan that is paid off over 9 months. From an accrual basis, I want $1000 per month insurance expense. But, from a cash basis (I think) I want to see the entire insurance expense with the down payment and loan. Then of course, the interest expense on the loan over the 9 monthly payments. That's my current dilemma. Any way, very good content Hector!
Yea.. cash/accrual is the never ending dilema
I'm from india.
It was very helpful.
Can you please make video on matching bank balance with real example. Because I am very confuse in duplicate, clear, unclear,matching transactions.
It's a little confusing at the first watch but when I rewatched it again, I get it.
Great video Hector. It really helped me understand better the concept of CCRUAL BASIS.
Great.. its a hard thing to grasp without the examples
Been experiencing those transactions, thank you for this video sir.
Happy to help
Hector, you are always entertaining! Great video.
You welcome
Complicated but clear. What impact would a credit card purchase have on the BS or P&L if bought in March but credit card paid in April, using cash basis.
Thank you very much, Hector! A worthwhile endeavor.
Monies received before the invoice is created (in advance) is a Liability and not Current Asset as reported in your example
Please tell me when in the video i said that please, so I can issue a correction
Thanks a lot Hector. A great piece of work as usual!
Questions: How do you enter tips? Since they’re not part of the invoice. How do you enter reimbursement of materials received from customer? Should that reimbursement be part of the invoice?
You can invoice it or enter the deposit as a Tips Liability account it’s not income
Exactly what I was looking for! Thank you Hector!
As always, thank you Hector for getting into the weeds to enhance our understanding. My question is related to the unapplied cash payment income. How do we clear the unapplied cash payment income if the customer overpaid and just wants us to keep the extra as donated income? They don't want the overage applied to a future invoice. (I paused the video at 10:26, so I apologize if you answer this question later in the video that I haven't seen yet)
Create an Invoice for it.. and apply the payment
@@HectorGarciaCPA I later saw that! Thank you!
It was valuable.. I understand. Thanks Hector
I’m looking thru your videos to see if you have a video that pays a business credit card using the business account. But I can’t find any.
Click on the "new" button on the left then hit "pay credit card". Then select the business account as the one paying down the credit card. If you paid the card already and have both accounts connected onto QB, you will also be able to just match the transactions as a payment to accomplish the same thing
Thanks for the tutorial sir!
Great video, as always! I learn so much for you-- thank you! I was hoping this video would cover if there's a way to clear out old Unapplied Cash Payments from previous years. Did a conversion from Desktop to Online, and old invoices/payments got messed up, so now customers show Unapplied Cash Payments when they shouldn't have them. Is there a way to fix these?
Unapplied cash payments do not get “cleared out” they need to be applied or deleted
@@HectorGarciaCPA, Awesome! Thank you so much! :)
Thank you. All your videos are helpful.
Hi Hector, I've cleaned up the Unapplied Cash Payment Income report for the most part. What remains is a pair of transactions with the same date: "Payment" (overpayment by customer) and "Check" (refund check issued by the business); the payment is applied to the check. Why are they still showing on the report, and how can I clean them up? Thank you in advance for your expertise.
Not sure.. but you should be running accrual based reports anyway :)
@@HectorGarciaCPA My client actually runs the Balance Sheet reports on accrual basis, while Profit and Loss on cash basis. In what circumstances would this make sense? And that's why it's important to clean up the Unapplied Cash Payment Income account.
Hi, Hector!
Your videos helped me so much!
I have a problem, QBO.
I have a customer who is also a supplier to us, we owe him money for an invoice and agreed we send him goods in exchange (sales invoice).
How do i set the sales invoice against the purchase/expense?
QBO doesnt let me use undeposited funds…so im strugling to come up with a solution.🙏
Thank you!
Search “quickbooks barter” in UA-cam, im sure there is a video or two explaining the process
@@HectorGarciaCPA thank you so much for your direction!!🙏
Im using qbo at work, and started a L2 AAT course, and i got lost with this one.
I learned using QBO from your videos, they are a tremendous help for total beginners, i would be lost without them!
Thank you again for the work that you do!
From the UK:)
Your videos are a truly a gift from the heavens! Thank you so much! Quick scenario & question: Does QBO or even QBD has a functionality like restricting amendments/posting to closed period for reporting purposes; i.e. period controls? I noticed that the bills/invoices are reported based on the bill date/invoice date. What if for example a "lost bill" dated 12/15/2021 has been received in March 2022. If we record it in QBO, I think it will change the P/L in Dec 2021 which has been closed and finalized already. It should be reported in March already, right? Instead of using the actual Bill date in the invoice, we should use a date in March (perhaps Received Date) just to have it shown and reported in March 2022 P/L.. That's the only way I can think of. Haven't used QBO yet so.... XD
Sorry cant troubleshoot accounting issues via email.
@@HectorGarciaCPA No problem. Thanks, Sir Herctor.
Yes this is called "closed periods" it is a setting you can turn on.
Hi hector, thank you for this amazing tutorial. Question though, what if the invoice date crosses to another calendar year say 1/15/2021 , but the company received cash on 11/25/2020, will the unapplied cash income present a balance amount in P&L for year 2020? Or do we have to close it to sales? Thank you. 😊
It will be there in a cash basis report in 2020 and will be reversed in 2022
@@HectorGarciaCPA great! This is very useful insight. Thanks again. 😊
How can I add past invoices and receipts of a customer or supplier with accumulated transactions?
Just create them with their original dates
Puede por favor hacer un video completo en español enseñando a trabajar con quickbooks online ,o por lo menos enviarme el link si ya ha hecho alguno ...gracias
Videos en español no es muy fuerte
Very good and informative video. Please keep it.
Thanks
It was really helpful
:)
this did not help me with my client and their amount under unapplied cash payment income
Sorry about that, if you want to hire a consultant for 1 on 1, we have some on the team
NERD! All kidding aside, succinctly done. Another great tutorial.
LOL, thanks
One question I have is how do you record accrued salaries?
Journal entry debit Salary expense, credit accrued salary (asset)
@@HectorGarciaCPA isn't accrued salary a liability account? i'm not so sure though
@@juliusalistado8404 yes, Julius. dr salary expense cr accrued p/r (a liability)
Great information but please slow down a tad.
Thanks, will try
very helpful!
It's helpful
:)
Cash basis accounting is awful, I'm not sure why anyone would want to do their accounting that way instead of doing accrual than just switching to cash basis view if you want to see cash basis stuff.
Because of Taxes
@HectorGarciaCPA how so?
If the goal of doing tax an accounting work is to view your expenses relative to when they occurred, I think this method doesn't help at all and creates more problems.
By taxes do you mean "could reduce the amount you owe"? That seems almost like trying to manipulate Financials to reflect a reality that is different than what happened. Wouldn't you agree?
@@dpruittt09 there is a “cash basis” election on tax returns, that allows you to only pay tax in net income based on revenues measured by cash received and not open invoices… that is the context of potential tax savings