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QuickBooks online fastest bookkeeping start from Crash
Welcome to the QuickBooks online fastest bookkeeping start from Crash where you can self-teach QuickBooks and be able to keep books and records of your company spending the least amount of possible time. This article will be a summary of the informing you about what records and documents you will need to prepare before you even start using QuickBooks online.
If you have any questions about this topic you can leave them in the comments section below and I’ll do my best to help you and of minimum bookkeeping if you feel the article helped you I hope you will click like.
This article is a very easy fast and summarized way of doing the minimum amount of bookkeeping required for a small business in this QuickBooks online fastest bookkeeping start from Crash. You will be able to quickly and easily record all necessary transactions that are required by the IRS or any other regulatory agency for the purposes of keeping proper financial records and creating accurate financial reports.
So what must you prepare for this minimum bookkeeping well that's as easy as one two three
- 1. You have to prepare all your Expense Categories
- 2. All your Income Sources and
- 3. All of your Financial Accounts.
Expense Categories
Now the expense categories that's very easy. All you have to do is make a list of what you spend money on specifically in order to run your business. These are things like utilities, supplies, transportation and repairs things. That you must pay for in order to provide service to your customers. You need to have a list of these categories prepared and each category will be a separate record.
You will have to have a separate record of each of these categories to record each of the transactions. That go in those categories for example if you pay for utilities, you would write that down in an account called utilities expense. But if you every time you pay for repair, you should write that down in a separate account called repair expense and so on. So have a list of your expenses prepared before you get to QuickBooks online.
Income Source
You should also identify each income source that you have in the same way that you identified each expense. Now if you want you could have just one account called income and no matter how you earned that money, you could just record each transaction one by one into the income account. This is because the IRS does not require that you separate the transactions of each income source.
If you don't want to it may help you for management purposes but again we're trying to do the absolute minimum amount of bookkeeping, so you may need for someone else or yourself if you want to see where your money is really coming in from, so this would help you with management purposes and there might be a day that you might have to report your financial records and documents to someone who might need to see.
The difference between how much you're earning from one service compared to how much you're earning from another. So have that list handy right before you go to QuickBooks online.
Financial Accounts
The third set of information that you have to prepare is all your financial accounts. Any account with a financial institution would be considered a financial account. Anything that behaves like a bank account or credit card account for example PayPal behaves like a bank account. So you would have to prepare the company's PayPal information. Any line of credit you have behaves like a credit card. so in my example I have both a PayPal account and a PayPal line of credit and my PayPal line of credit behaves the way a credit card would and my PayPal account or any other pay type of platform that I can both collect money into and pay out from would behave like a bank account. So anything you have that fits that description you need to gather the information before you open up QuickBooks online.
Monthly Statement
Basically anything that you get a monthly statement for where the statement lists the transactions during the month and declares an ending balance so the statements are what you will use when doing crash minimum bookkeeping. Minimum bookkeeping you will read the transactions from these statements and enter them into QuickBooks online.
This is the fastest and most summarized way of doing minimum acceptable bookkeeping. Please note however that in theory statements are not the best place to record the transactions from each transaction. At the moment it happens usually has a source document like a receipt or a check that documents the details of the transaction in other words. It records the date and the amount and so on. At exactly the moment the transaction happens the source document is really what you are supposed to use. When recording the transactions into QuickBooks online.
However for practical purposes the statements can be used unless there is a question that can only be answered by the source document and by the way many business owners never save that document. But you should for yourself or for your bookkeeping client. If you're doing the books for someone else here are the sample accounts, that we will use in our example wedding video company in order to learn QuickBooks during this crash minimum bookkeeping.
Notice we have a separate record for each of the different ways that we earn income. We have four separate expense accounts where we will record the appropriate transaction as needed and these are the three financial type of accounts that we have. So these are all the accounts that we are going to add to the chart of accounts in QuickBooks online.
Cash On Hand
Each one of these is a record it is simply a list of transactions that go into that category and you may ask about this last one at the bottom cash on hand we haven't really spoken about that, well cash on hand could physically be a lock box where you put the cash from the bank into the box. So that you can pay cash related expenses it could simply be the owner's wallet in other words. It does not have to be an actual physical place it's simply an account or a record of the incoming or outgoing cash. If we use that method of payment to receive money from customers or pay money to vendors in order to operate our business and the final question should be what if we pay money but it's not for a regular expense what if we buy something that we will have for a long time into.
Asset
The future how do we record asset purchases, well don't worry because QuickBooks online already comes with sample accounts and some of those are fixed assets and current assets. And we will lump them into one asset account that will be given to the accountant. so any asset that we purchase we will just use one of the existing accounts or use a summary asset account and then the asset account will be given to the tax professional at the end of the year to handle managing the assets or at least the tax related issues for the assets before submitting the tax return so you can have just one account that says all other current assets. Another account that says all other fixed assets and as long as you have the receipts and the details of those purchases you don't have to put them into QuickBooks online once.
