Category Archives: QuickBooks

Invoice in multiple currencies

Software: QuickBooks Desktop Accounting Software

You can record bill or issue invoice in foreign currency once you have set up to use the multiple currencies feature in QuickBooks.

A currency has to tag to each name set up in QuickBooks. For example, you tag USD to Customer A if you trade with him in USD and invoices issued will link to the USD Accounts Receivable account automatically.

QuickBooks - Multiple Currencies

Multiple Customer A has to be created if you are trading with him in multiple currencies. For example, you create two names in Customer Centre if Customer A buys from you in both USD and MYR. One set as USD and another in MYR. QuickBooks treats them as a separate entity and will both show in the receivable report separately.

 

Fixed Assets

Fixed assets, which is a non-current asset, is a balance sheet account. The Plant and Machinery, Furniture and Fittings, Office Equipment, etc. are fixed assets.

It is common for small business accounting software not includes a fixed assets module; a module which allows the user to tracks and calculates depreciation of an individual asset automatically.

You can use a spreadsheet as a fixed assets register if the requirement is simple. Do consider a fixed asset management software if you have outgrown a ‘spreadsheet’ asset register or get a custom solution which tailors to your need. Tracking and reconciling assets can be a complicated process, especially when you have hundreds or thousand of them (and in multiple locations).

The asset, which you have purchased, need to update in both accounting software and the fixed assets register. It debits the fixed asset account and credits accounts payable or a bank account (depending on the transaction type or accounting method) when recording the transaction in an accounting system.

The spreadsheet (asset register) capture information such as the assets ID, date acquired, description, cost, depreciation, accumulated depreciation, and net book value. Optionally, you may include the serial number, supplier, supplier’s invoice date and reference number, warranty expiry date, asset location, who uses it, etc. (Do consult your accountant if you do not know how to create an asset register with a spreadsheet for your region).

Fixed Assets

Based on the fixed assets register, record the monthly or yearly depreciation via a general journal; it debits depreciation expense and credit accumulated depreciation account.

It may be good to have the asset register separated from the accounting system. When you changed accounting systems as your business grow or change of business model, it does not affect the asset register.

 

 

 

Disbursement

Software: QuickBooks accounting software

Disbursement is a recovery of a payment made on behalf of another party by you as an agent or professional, such as lawyer or auditor.

Besides using an invoice with an item tagged to the same account used in Bill to recover the payment made on behalf by you, you can consider using the Job feature in QuickBooks.

You can tag a Customer or Job to the account when recording the Bill into QuickBooks. Tagging of a Customer or Job to account will not have any impact on the financial data as the account used in the detail line still get debited.

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When issuing an invoice to the customer or job, QuickBooks will prompt to select the outstanding billable time and costs. The invoice debits the accounts receivable and credits the account which has used in the bill.

quickbooks-billiable-time-and-cost

The balance of the disbursement account will be zero after the amount owing has recovered.

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