Category Archives: QBO (QuickBooks Online) Singapore

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.

QuickBooks Bank Reconciliation — Cheque issued but not yet presented

Software: QuickBooks #accounting software

Bank reconciliation is a process of comparing the Cash Book against the Bank Statement. The objective of the bank reconciliation is to confirm the withdrawals and deposits presented in the Bank Statement have recorded in the ledger correctly.

Bank Reconciliation

Although you can record the opening balance of the bank account in QuickBooks with the ledger balance, we prefer to use the bank statement closing balance instead. As the later can show the deposit in transit and the cheque, which issued but not yet presented at the bank reconciliation.

However, if the bank’s ledger balance has used as an opening balance and you realised a cheque issued in last financial year but has not yet presented in the following month, then a journal is needed to adjust the opening balance of the bank ledger.

You need to debit the bank account to increase the ledger balance and credit back the amount as a form of separating the cheque that has not yet presented from the bank opening balance.

You need to select both the original opening balance and the debit entry of the journal during the bank reconciliation and leave the credited amount of the journal as not presented.

QuickBooks Online (QBO) – The Gear Icon

Software: QuickBooks Online (QBO)

Unlike QuickBooks Desktop, QuickBooks Online does not have a traditional menu bar. It does not have an Edit menu where you can find the Preferences, it doesn’t have a Lists menu where you can locate the Chart of Accounts list or items list. QuickBooks Online (QBO) has simplified the interface by providing two icons at the top of the screen — a “+” and a “Gear”.

The “+” icon contains the daily transactions and the “Gear” icon is about the setup.

The “Gear” icon consists of four main sections; the Setting, Lists, Tools, and Your Company.

QuickBooks Online (QBO) accounting software

The Setting is like a Preferences function in the desktop version, where you can set up the Company information, template or fields used in the transactions.

The Lists consist of Chart of account (under all list), Product and Services list, recurring transactions, etc. It’s like the Lists menu of the QuickBooks Desktop version.

The Tools section gives you the ability to import lists such as chart of accounts or item list, it allows user to reconcile the bank and set up a budget.

Managing the users and QuickBooks Online (QBO) account is at the “Your Company” section.

Anything that is non-transaction related, click the “Gear” icon. Simple?