Solved

Quickbooks Pro 2012 on Cash Basis

Posted on 2012-03-10
2
592 Views
Last Modified: 2012-03-14
We run our business on a cash basis.  We are confused how to show in the register a credit card payment when we they just draft our account and there is no check involved.

With QuickBooks it looks like we have to have a credit card liability account.  Doing it that way won't work for us.

So, how do we reflect our credit card payments and tax payments that both use Electronic Funds Transfer.  Also, if you know any place I can read more about QuickBooks on a cash basis that would be helpful.
0
Comment
Question by:sharingsunshine
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
2 Comments
 
LVL 11

Accepted Solution

by:
stlinae earned 500 total points
ID: 37707194
In order to enter an EFT payment, simply enter a check and in the check number field enter "EFT" This will remove the funds from the account, allow you to reconcile with the bank statement and keep track of your payments.

QuickBooks works exactly the same way if you're on a cash or an accrual basis. The only difference is in your reporting. It should still be reflecting what it is you are doing in real life. You can change your default reporting type to cash by going into
 Edit>Preferences>Reports and Graphs. In single user mode, you will be able to change the Company Preference from Accrual to cash.

As far as setting up a liability account for your CC's, I don't. Set up your Credit Cards as Credit Card account types. Then, when you charge to the credit card, simply do so with the Credit Card Charge screen. (Banking>Enter Credit Card Charges) This will allow you to track your current balance and you expenses. Then when you need to pay on the credit card, simply 'write check' from the bank account to the CC account. Make sense?
0
 

Author Closing Comment

by:sharingsunshine
ID: 37720079
thanks for your help.
0

Featured Post

Free Tool: Site Down Detector

Helpful to verify reports of your own downtime, or to double check a downed website you are trying to access.

One of a set of tools we are providing to everyone as a way of saying thank you for being a part of the community.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

When you start your Windows 10 PC and got an "Operating system not found" error or just saw  "Auto repair for startup" or a blinking cursor with black screen. A loop for Auto repair will start but fix nothing.  You will be panic as there are no back…
Possible fixes for Windows 7 and Windows Server 2008 updating problem. Solutions mentioned are from Microsoft themselves. I started a case with them from our Microsoft Silver Partner option to open a case and get direct support from Microsoft. If s…
This Micro Tutorial will give you a introduction in two parts how to utilize Windows Live Movie Maker to its maximum capability. This will be demonstrated using Windows Live Movie Maker on Windows 7 operating system.
The Task Scheduler is a powerful tool that is built into Windows. It allows you to schedule tasks (actions) on a recurring basis, such as hourly, daily, weekly, monthly, at log on, at startup, on idle, etc. This video Micro Tutorial is a brief intro…

730 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question