Tag Archives: business

QuickBooks transfer fund

Software: Intuit QuickBooks Desktop

QuickBooks has an easy way of recording a transfer fund from a bank to another. You may have a bank for trading and another to facilitate the repayment of a loan or for payroll purposes which you may require to ‘top-up’ from time-to-time,

From the Transfer Fund wizard, record the amount, To and From bank account, enter an exchange rate if it is a foreign currency transfer and hit the ‘Save & Close’ button and the system will take care of the transfer fund in the accounting system without you worry about the double entry.

QuickBooks transfer fund.png

You can delete a transfer from the Edit menu if you discover a mistake made after the transfer fund. Although QuickBooks has a deleting feature for the transfer, you should not remove any bank related transaction if reconciliation has already done. You should consider passing a general journal to reverse the entry instead.

Contact us if you are considering upgrading your older version of QuickBooks Desktop.

By account or by Item?

Software: MoneyWorks accounting software

You have an option of recording the invoice, payment or receipt transaction either via by account or by item tab. What’s the difference?

itemised product

You use the ‘By Account’ tab to record transactions which charge directly to the GL (general ledger) such as rent, repayment of the loan, purchase of assets, etc.; or some time cost of goods sold when you are not using the accounting software to track the inventory.

Use the ‘By Product’ tab when you itemised the products and services. Itemised product save time in data entry as the item description filled up automatically when using it in the transaction. It’s unlike the ‘By Account’ scenario where you have to type the item description as and when you use it.

It updates the quantity on hand and debits the inventory asset account when the inventory item has purchased, it then debits the cost of goods sold when the sales invoice has posted. It gives a real-time inventory status when the itemised product has used.

It depends on the business requirement whether to use the ‘By Account’ or ‘By item’ tab to enter data. Itemise your product if you want to standardise the product description and better data analysis on the data which you have captured.

MoneyWorks accounting system is suitable for small businesses managing their business finance. Book a demo today to find out how MoneyWorks works for your business.

GST on imported goods

Software: MoneyWorks accounting software

Oversea suppliers are not supposed to charge GST if they are not a GST registered trader. The GST is paid to the Custom or a forwarder (if they paid the GST on your behalf) when goods arrived.

You can use the cost of goods sold or an expense account as a dummy account in the account tab of a payment transaction to record the GST paid. For example, you paid $700 GST on goods purchased; the entry will be:

Detail line 1:
Account: Cost of Goods Sold
Taxable amount: 10,000
Tax Code: IM
GST: 700

Detail line 2:
Account: Cost of Goods Sold
Taxable amount: -10,000 (negative)
Tax Code: OP (or *)
GST: 0

Imported GST

The Cost of Goods Sold contra off with each other and left the GST paid.

Due to differences between the internal exchange rate and the rate used by the Custom, the taxable amount could be different from the purchase value in Singapore dollar.

Note: You are supposed to record the import permit number in either Transaction user field 1, 2, or 3 on both purchase invoice and the GST payment, which will use in the IAF (Iras Audit File) report later if required. The Transaction User field label can be renamed to ‘Permit No’ from the Document Preferences to ease the data entry.

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