Jump to content
Kathy H

Bookkeeping question

Recommended Posts

I just recently took over the bookkeeping for a current client, and have a few questions I thought maybe someone on the forum could answer for me.


The books were previously being handled by an older woman who was an accountant. I'm not. I'm a very simple bookkeeper, and find the easiest way to get the job done. This is a VERY small company who does maybe five invoices a month. He does pay himself via the payroll settings on Quickbooks online. So, it's a very simple job....or it should be very simple.


Just wanted to give some quick background.


Jen, the previous bookkeeper did some training during the previous month to get me up to speed on what she does/did and how to do everything. Frankly, she's done some things that I honestly don't understand why she did them the way she did. It seems like if there was an easy way and a hard way to do the same thing, she chose the hard way. But maybe it's just the difference between an accountant and a bookkeeper.


Anyhow, my question is this: I need to track the company credit card. When she "trained" me she told me she always used journal entries to keep track of the credit card. When I asked her why she did it that way, she said it was so she could keep the charges assigned to the month they were actually charged. Keep in mind this is a very small one person company. There are maybe 20 credit card charges on the account for the month, and only one (possibly two) were for the next or previous month. She didn't really tell me HOW she did this, so I've been a bit confused as to how to go about doing what she did, and whether or not I can simply just use the register (or the credit card feature of QB online) to do these charges. If I do it the journal entry way, do I add the credit card total payment on one journal entry, and then do separate journal entries adding all the charges? Seems like the hard way to me, or am I missing something? Honestly, I'm so confused at this point, I'm wondering why I even agreed to do the books for him!


So can someone who is a stronger bookkeeper than me please explain why someone would use a journal entry over just putting something directly into the register? She also did that with checks that the owner wrote. She would fill out a journal entry when he wrote a check instead of using the check register.


Thanks for everyone's help!

Share this post

Link to post
Share on other sites

I'm not a bookkeeper so don't have the answer and hopefully one of the members who are will chime in.


But your post did made me think of something my accountant told me this past year. I can use my credit card expenses as deductions for income tax purposes but if I am ever audited I better have the receipts to these credit card expenses else they the tax office won't allow these expense deductions.


So do make sure the client has the receipts too and not just the credit card statements showing the expenses.


Share this post

Link to post
Share on other sites

The previous person handling the books was not using QuickBooks to its fullest. While you can enter this information using journal entries, this is an "old school" way of doing things. The credit card should be setup with its own register. Depending on who the credit card is with, you can even download the transactions into its register (keep in mind you will still need to review where each entry is being expensed to). or you can enter each credit card transaction yourself into the credit card register.

Let me know if you need any help with this.


Dana Mitchell
Advanced Certified QuickBooks ProAdvisor

  • Like 1

Share this post

Link to post
Share on other sites

Hi Kathy


A bit late in the day to be replying to your question posted last April but I'm only seeing it now.


The previous person was not using Quickbooks in the manner in which she should have been. It seems like she didn't actually know how to use it. Journal entries were and are an old way of doing things.


You really should be entering the credit card charges under Banking - Enter Credit Card Charges (depending on your version). The credit card should be set up as a Bank Account with it's own register and opening balance. Each credit card entry still needs to posted to the relevant expense account i.e travel, motor, etc.

You need to be using the Credit Card entry system as you'll be receiving monthly statements which will need to be reconciled just like your bank statements.


Journal entries should really only be used by an expert and/or accountant to amend and make adjustments where necessary to the end of year accounts.

Cheques (excuse me I'm from Ireland :shamrock: and we spell the word that way) or should I say checks, should also be entered using the Write Cheque (check) function, unless it's to pay a bill received. Then you use the pay bill function to enter that cheque.


Again, depending on your version, Quickbooks comes with a very good inbuilt help index. I think it would be good for you to use it. Just type in the question you want an answer to and it will bring up suggestions for you. Failing that, there's always Google :) and you will find loads of help there. I've been using Quickbooks for over 15 years now and on the rare occasion, I run into a problem and can't find the answer in my Help Index, I turn to Google for help by just typing in to Google "How do I do....... in Quickbooks (and add your version).


If it's feasible for you to take a course in Quickbooks, I would recommend that you do, particularly if you've been shown how to do things in an incorrect way.


Hope the above is of some help to you Kathy and best of luck.


Kind regards


Trish Brennan






Share this post

Link to post
Share on other sites

Journal entries is the ‘old school’ method of accounting dictates each transaction should be an entry in a literal journal, so it’s not uncommon for people to intuitively use journal entries in QuickBooks to record various transactions.

Share this post

Link to post
Share on other sites

Yep, Online quickbooks will definitely gonna resolve the problem. Practically look out for some thing that can manage the things in one platform and that is some what which will have more proficiency in the game. I was too using quicbooks for the same bookkeeping purpose but later on I got some thing more effective than quickbooks for certain features and I jumped onto that, its basically the expense reporting software from Replicon ( http://www.replicon.com/olp/expense-reports.aspx ) that even gets integrated with quickbooks with the open API to help manage the things in a better fashion.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Want to Become a VA?
    Invest in The VAC!
    How Do YOU Startup A

    Virtual Assistant Organization Association
    Upgrade Your FREE Account & Receive Today...
    * Access to Our Bus JOB Board *
    * Group Coaching & Training*
    *Training Tracks*
    * Private Mastermind Area *
    * Business Templates *
    * Contracts & Forms*
    * Plus VAinsider Perks! *

    Virtual Assistant Organization Association

    Virtual Assistant Organization Association

  • Create New...

Important Information

By using this site, you agree to our Terms of Use.