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If you already have the transaction in QuickBooks, you should use the "match" feature to match the expense to what is already in QuickBooks instead of adding a new expense. The "add" feature should not be adding two expenses unless there is some sort of glitch in QuickBooks.

If you are paying yourself or an employee back for a business expense, then you would simply record it as any other expense of the business. The category would be the expense account category, and the payee would be the employee or owner being reimbursed (debit expense account, credit checking account being used to pay the person back). You could skip recording it as an owner draw since it's simply an expense reimbursement.

It would be really hard to answer that question without seeing that specific situation.

I'm not sure. I haven't used it for that type of company.

It lets you have uncleared deposits and withdrawals.

If you put sales tax on the invoice itself, then that would be part of your payment total (the plus + line item of the deposit).

I’m on a computer so yes it probably looks different. I haven’t made any videos on an ipad app but I’ll look into it.

The Profit & Loss has the summary of expense totals for the year. If you want to see all of the individual transactions, the General Ledger report would show that.

@ thank you Michelle

Rent expense is what I would use.

I typically use a category that relates to the expense itself. Rent expense, telephone expense, automobile expense, etc.

You have to edit from the Accounting>Transactions screen. Look for the payment there and then edit. I showed it in the video at 1:46.

I recorded the payment in the invoices tab. Then went to the accounting and transactions, when I try to edit the transaction, it's all greyed out saying 'system entries cannot be edited'.

@@SarabjeetSanghera That’s so strange. Are you using a Wave Payments account and posting to that instead of a checking account? I’m not sure without seeing it.

Thank you

I don't have a video with that much detail at the moment.

You could enter a journal entry instead. If the journal entry doesn't auto-match to the downloaded transaction, you would have to delete the downloaded transaction to avoid duplicates. I have a payroll video playlist on TH-cam. I also have a payroll journal entry template on my website - newberryaccounting.com/downloads/. You might find these helpful.

Glad it was helpful!

@@michellenewberry I’m planning to start a bookkeeping business for law firms. Any advice on how I should get started? I am a CPA and worked mainly for large companies overseas. I thought this would be a good niche because I used to be a paralegal when I graduated from college. I am retired now but wanted to start a small side business.

Yes it would definitely be a good niche. I started by getting a part-time bookkeeping job at a local law firm in person. That job led to them recommending me to another law firm to do remote bookkeeping. Other suggestions: be a guest speaker at continuing education classes, go to networking events, and bid on jobs on Upwork and other online platforms.

@@michellenewberry thanks for the feedback!

@@michellenewberry thanks for the suggestions 💡

Do you mean dividends to shareholders? I don't have one yet but plan on making one soon.

Wave doesn't have that feature.

@@michellenewberry Thank You!

You can customize estimates but I don't think there is a way to upload your own.

I'm definitely not intentionally competing but thank you. I've been teaching accounting for a really long time and am glad it's helping people.

On my website. The link is in the description.

You would have to put the check number in the description and then you can search for it using the general search feature at the top of the list of transactions. Wave doesn't have a designated check number box.

I think it presents in that way because it's a credit or subtraction from the bank account (asset) balance, and in the reconciliation you are looking at it from the bank account point of view. The debit would be in the expense account itself. If you run a profit and loss and drill down to the bank service charges account, you will see it as a debit there.

@@michellenewberry if it's a substraction from the bank account, it cannot be a credit, it's an obvious debit. Money was debited from the bank account. It's the same reason why debit cards are called as such, because we use them to debit amounts from our bank accounts to purchase things. I don't understand the people that make these softwares. The bank statement itself has a credit and a debit column, and when reconciling accounts, we have to inverse columns. It's so confusing.

@mellkiades banks are looking at your bank account from a different perspective. Accounting software reflects how the debit/credit rules work in accounting textbooks. This article explains the bank entries: www.accountingcoach.com/debits-and-credits/explanation/4

Glad it was helpful!

Where is it? I need it by tomorrow.

Thanks for the feedback! Good luck in your property management company.

You're so welcome!

Your way sounds great.

Glad it was helpful!

When taking over any account from another bookkeeper, I try to schedule a video meeting with them where they walk me through their main month-to-month processes. And I also look back at prior entries to see how they posted things. I've taken over accounts where I wasn't given any information and had to piece things together by looking at prior entries. In that case I simply write out what I can find in the system, and add my own processes from there based on general accounting knowledge.

I have some more Trust account videos planned in the next few months. I'll keep your comment in mind.

@@michellenewberry thank you. The latter might be the case for this client. Hopefully I’ll get enough information from her, I’m yet to access the books but I was told she used her own QB.

@@michellenewberry thank you. I’ll appreciate your videos and I look forward to watching and learning more from you.

Wave reports are very limited. I don't know of a Wave report that would show you sales by products and services.

If you don't want it to show up on the Profit & Loss, I suggest creating a current asset account for reimbursable expenses. Then create an item under Products & Services for reimbursable expenses and map it to the asset account you created. Make sure you use your reimbursable expense category on the expense itself, and then when you bill it to the customer use your product & services item that maps to the same asset account.

@@michellenewberry, thank you so much! Should I also go to Company Settings and then Expenses and then uncheck the box next to "Track billable expenses and items as income" ?

@@TobyMiller1970 Yes. When you pull the item onto the invoice you may have to change the line item to your new product & service item. That's what I usually do.

@@michellenewberry Thanks again! :)

Generally the sales tax on the purchase/expense side is included as part of the expense total and not separated, but it's best to contact a tax accountant in your state for specifics for your situation and location. Here is a general article related to sales tax and purchases of inventory that might clarify things: ttps://www.accountingtools.com/articles/how-to-account-for-sales-tax-paid-on-inventory.

This would be admin access.

The system would pick up the $0 net expense on the expenses by vendor report as long as you have a line item with an expense category. It would pick up the positive line.

You would simply write a check as if you were paying for any other regular business expense, except the employee would be the payee. I would recommend attaching a receipt. Some companies process expense reimbursements with their payroll service instead of writing checks.

It would depend on the situation and business structure. If the owner is normally paid with Draws (using Equity accounts), then any payments out that are personal would be treated as an owner draw. Yes a JE could be done. If the owner is a W-2 employee, then it would possibly be treated as a garnishment and payment.

@@michellenewberryI think garnishment should come from payroll, but that's not the case. The owner is S-CORP, he receives payroll and no amount is being withheld to pay child support. So he pays using business bank account. I did code it as owners draw. Am I right?

@@relaxedclub9425 Usually in a corporation it's called something like shareholder distributions but if they call it owners draw that's fine. But yes what you're doing sounds right.

Thank you. I appreciate the feedback.

Glad it was helpful!