Teacher, I have repaired a house and we agree the owner to reduce his rent charge by som percentage. Could record it as prepaid expense? How can I record the rent the original cost or the agreed cost minus repair monthly paymen?
Can you tell me do you manage the property and you paid for repairs on behalf of the owner? And now when you collect rent you are collecting the full rent but reducing what you pay him?
This is a very helpful video- thank you! I have a large expense for which I'd like to escrow money (e.g. roof replacement on a commercial property). Would I estimate the amount and bill date even though it's 2-3 years out?
Yeah what I would do is create an asset account called "Escrow" or something like that, and then accrue an amount to that account each month - this is IF you will physically be moving money. If you are not moving money, then make this account a liability account and show the monthly amount as an expense (not deductible for tax purposes FYI)
@@QbuniversityOrg Thanks for the quick reply. Can you elaborate on your comment about physically moving money? My hope is to keep one bank account (i.e. 100k) and reflecting 50k in roof replacement as equity/liability/asset?. Thanks for clarification on taxes- I wish that was the way it worked :)
@@charlesedwards2667 Yeah I just meant are you setting up a separate bank account and physically setting the money aside or just accruing the liability and showing the expense.
I paid a 1700$ annual (12 mi) insurance premium in February. Wrote check and put into insurance expense acct. (exactly what NOT TO Do, now that I know better). Can I reverse that expense and then enter as you’ve explained in tutorial? A “do over”. If so, reverse original expense in JE? Thank you.
MS Cellaneous yeah you could do that OR you could do an entry in February to back out all of the expense except one month worth and put it to Prepaid. Then set up the monthly entry as of 3/1
@@vickischlupp3412 yeah but I would not adjust previous months. Let's say it's $100 per month then in month 6 you get an additional bill for $600. This would go to prepaid then each month after the expense would be $200 per month
thank you so much for the tutorial. now lets say, i have a supplier of fuel and i pay 10 000 overhead for fuel consumption at this vendor. how do i treat my accounts in quick books? how do i record this?
@@QbuniversityOrg its not inventory, we have drawn a contract with this company that i will fuel at his service station and paid 10k upfront for the consumption
@@janetodirile846 gotcha. I would record this as a Prepaid expense and then I assume at the end of each month you will get some kind of reconciliation showing how much of the $10k was used so you can move the appropriate amount from prepaid expense to expense.
Good Day sir, where is the impact of this payment in bank statement? for example i have paid two months advance rent, how i can record the bank transaction?
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Super helpful!!!!!
Great!!
Thanks so much for very helpful tutorial!
Welcome!
Teacher, I have repaired a house and we agree the owner to reduce his rent charge by som percentage.
Could record it as prepaid expense?
How can I record the rent the original cost or the agreed cost minus repair monthly paymen?
Can you tell me do you manage the property and you paid for repairs on behalf of the owner? And now when you collect rent you are collecting the full rent but reducing what you pay him?
This is a very helpful video- thank you! I have a large expense for which I'd like to escrow money (e.g. roof replacement on a commercial property). Would I estimate the amount and bill date even though it's 2-3 years out?
Yeah what I would do is create an asset account called "Escrow" or something like that, and then accrue an amount to that account each month - this is IF you will physically be moving money. If you are not moving money, then make this account a liability account and show the monthly amount as an expense (not deductible for tax purposes FYI)
@@QbuniversityOrg Thanks for the quick reply. Can you elaborate on your comment about physically moving money? My hope is to keep one bank account (i.e. 100k) and reflecting 50k in roof replacement as equity/liability/asset?. Thanks for clarification on taxes- I wish that was the way it worked :)
@@charlesedwards2667 Yeah I just meant are you setting up a separate bank account and physically setting the money aside or just accruing the liability and showing the expense.
@@QbuniversityOrg thanks again!
That was a very informative tutorial!! Can I go back in time and enter a prepaid?
MS Cellaneous yep you can. I’d be careful to not go back to 2018 though if taxes are already done.
I paid a 1700$ annual (12 mi) insurance premium in February. Wrote check and put into insurance expense acct. (exactly what NOT TO Do, now that I know better). Can I reverse that expense and then enter as you’ve explained in tutorial? A “do over”. If so, reverse original expense in JE?
Thank you.
MS Cellaneous yeah you could do that OR you could do an entry in February to back out all of the expense except one month worth and put it to Prepaid. Then set up the monthly entry as of 3/1
The Quickbooks University I think that is exactly what I will do. Be better than reverse JE. Very god advice once again.
Thank you so much as always.
MS Cellaneous thanks!
What do I do if the monthly premium changes, say due to an audit, as with Workers Comp?
You would have to add to the Prepaid Expense, then recalculate what your remaining expense would be over the term of the policy
@@QbuniversityOrg So then, I would first enter the premium equally and then go back after the audit and adjust? Thanks so much for the reply!
@@vickischlupp3412 yeah but I would not adjust previous months. Let's say it's $100 per month then in month 6 you get an additional bill for $600. This would go to prepaid then each month after the expense would be $200 per month
thank you so much for the tutorial. now lets say, i have a supplier of fuel and i pay 10 000 overhead for fuel consumption at this vendor. how do i treat my accounts in quick books? how do i record this?
Is the $10k you pay for fuel inventory?
@@QbuniversityOrg its not inventory, we have drawn a contract with this company that i will fuel at his service station and paid 10k upfront for the consumption
@@janetodirile846 gotcha. I would record this as a Prepaid expense and then I assume at the end of each month you will get some kind of reconciliation showing how much of the $10k was used so you can move the appropriate amount from prepaid expense to expense.
Good Day sir, where is the impact of this payment in bank statement? for example i have paid two months advance rent, how i can record the bank transaction?
It’ll still show as cash spent but instead of recording it all as expense some is Prepaid rent and some is expense