Category Archives: QBO (QuickBooks Online) Singapore

QuickBooks Online (QBO) – offset a deposit received

A deposit received is a payment for goods and services which yet to deliver. It’s liabilities. The balances are cumulative presents in the Balance Sheet. It has to offset against the invoice when goods and services have fulfilled at a later stage.

All the balances in the Balance Sheet have to transfer over when the accounting system changed. And that includes the deposit received from various customers.

Let’s assume that you have decided to move your business accounts to the cloud and adopted QuickBooks Online (QBO) accounting system.

You can use the general journal to transfer the balances from the Balance Sheet to the QuickBooks Online. Set the date of the journal as the crossover date, and then debit the opening balance equity and credit the deposit received account when transferring the deposits over to the new system.

Receive payment in QuickBooks Online (QBO)

Issue an invoice when goods and services have fulfilled on the following financial year. Then, use a journal to transfer the deposit, which paid by the customer in the previous year, to the receivable account. It reduces the amount owed by the debtor when the journal credits the accounts receivable.

Offset the journal with the outstanding invoice when payment received.

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How to record JSS (Job Support Scheme) payout?

JSS (Job Support Scheme) is a cash grant given by the government to offset part of the local employee wage costs during the outbreak of COVID-19.

If you are using MoneyWorks accounting software:

There are two income account types (Sales and Income) in MoneyWorks. The Sales account type is a trading income, whereas the Income account type is for capturing non-trading income such as interest income or cash grant received. The Income account (a.k.a. Other Income) presented after the gross profit of the Profit and Loss report (You can have a custom report if you prefer to change the default presentation).

Create an Income account and name it as JSS (or Job Support Scheme if you preferred). Then, use a receipt transaction to record the cash grant received from the government (IRAS), the entry debits the Bank account and credit the JJS income account.

if you are using QuickBooks accounting software:

QuickBooks uses the Income account type for trading income and Other Income account type for capturing non-trading income such as the interest income mentioned earlier. The Other Income presented at the bottom of the Profit and Loss report after the expenses.

Create JSS as an Other Income account type and use a Make Deposit feature or a General Journal to record the cash grant received, it debits the Bank and credits the JSS income account.

Stay safe and healthy.

How to record a dividend?

When the company is profitable, part of the earnings may return to the investor as a dividend. A Dividend is not an expense but a shareholder fund (equity), which the declared value will be less off from the Retained Earnings.

The accountant may debit the Retained Earnings and credit the Dividend Payable account, which is a Current Liabilities account type when a dividend has declared.

Instead of directly debiting the Retained Earnings account, the accountant may sometimes debit the Dividend account (Shareholder Fund/Equity account), which is a temporary account, and transfer out from Dividend to the Retained Earnings account later.

Below is a screenshot of the equity section of a Balance Sheet report:

Dividend

Check with your accountant for more information about the dividend.