Bookkeeping Basics1

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Sign up now for the full length course on Bookkeeping With QuickBooks: www.SchoolOfBookkeeping.com For Private 1 training visit www.QuickBooksAnswers.Info Here is a video you may find helpful talking about the difference between a Bookkeeper, A Controller, and a CFO youtu.be For more great tutorials and videos on how to use QuickBooks as well as on how to use Excel visit my blog: nerdenterprises.com Bookkeeping Basics – Understanding Account Types: Basics, Basics, Basics! I don’t care what field you’re in or what accounting program you use, you must have the basic fundamentals down in order to be truly effective and good at what you do. When it comes to bookkeeping it comes down to a thorough understanding of Debits and Credits and how they affect the financial statements. I think many so called bookkeepers have purchased QuickBooks and figured out how to post a check, a bill, an invoice and a customer payment and then they hold themselves out as a bookkeeper. That is not bookkeeping and I have seen it frustrate many business owners not to mention give “bookkeepers” a bad rap. And Bookkeepers are by and large good people . Now that I have been invited to blog on Tool Box For Finance I would like to cover some more technical accounting issues here. This is the first in a series of blog posts I plan on doing where I am going over bookkeeping based on the fundamentals and then showing what that looks like in QuickBooks. This way you can take the knowledge and apply it in

Comments

nerdenterprises says:

Thanks! Don’t forget to subscribe to the YouTube channel here!

GARRYOWEN18 says:

excellent info thanks

nerdenterprises says:

Great! I just added a page on the site today with a PDF of a list of all of the videos in the course and their lengths. Turns out there are over 6 hours of video in SchoolOfBookkeeping in addition to the template downloads and detailed writeups with screen shots etc.. Let me know if you have any questions.

Patrick McGuinness says:

Ha… but there is only a fraction of hard cash compared to bank liabilities! Cheque/bank transfers are simply book transactions between bank liability accounts. The journal entries ARE the money. And pertinently, if you ‘deposit’ cash with a bank, the cash is no longer legally yours, the bank has full title to it.

Aside from money theory I am still learning about bookkeeping, searching for the best package for my business and impressed with your promo video.

nerdenterprises says:

I think that is what I said, but OK!

In fact your deposits with the bank are BOTH; Asset and Liability. The cash is an asset that the bank uses to invest elsewhere (ie loaning money to others) and as you point out a liability in that if you demand it, they have to give it back to you.

Patrick McGuinness says:

re: bank accounts – it IS the case that the bank is presenting you with the account from their perspective. Because that’s what it is, it is their account! Your bank account is literally a liability account belonging to the bank.

nerdenterprises says:

Was I. It sounds pretty clear when I listen. Maybe better speakers are in order?

Nameless666Maggot says:

The internet.

Nameless666Maggot says:

He’s basically saying; stop slavering when you talk.

nerdenterprises says:

Huh?

codkevin23 says:

Stop passing saliva while you talk!

muiscnight says:

where can i apply for bookkeeping jobs

sonia garcia says:

That is so true I have the software but have no Idea what to do and I know it’s not the software to blame.

nerdenterprises says:

Thanks! I am assuming that’s good?

Luficarius Ratspeed says:

This is the first bookkeeping video I’ve seen that makes me want to break out the glowsticks. 😉

aprbookkeeping says:

bookkeeping is not the software but the professional knowledge and the experience in the person knowing how to use the systems and methods correctly

nerdenterprises says:

Maybe this video will help – Search my channel for “Bookkeeper, Controller, CFO”. I will also post the link in this video’s description.

A bookkeeper’s job is essentially to enter the financial transactions. An accountant’s job is to make sure that the bookkeeping is done accurately – in a way that fairly represents the financial position of the company.

korea902 says:

Hey, what is the difference between accounting and bookkeeping?

nerdenterprises says:

You have to pay sales tax by clicking ‘Vendors’ -> ‘Sales Tax’ -> ‘Pay Sales Tax’
Depending on what version you’re using the menus may vary slightly, but you cannot simply enter a bill. I can get into more detail with you on this in a private session. See the video’s description for details on that.

venadito5 says:

I need info on how to record, the sales tax I collect from customers, in the P & L . I created a bill for the period, then I paid it, and somehow this sales tax paid does not transfer into the P & L.
Would you help me? I have Quick Books for MAC. I have not found the info anywhere where help for QB is offered. I would appreciate your help. Thank you

Mo Barrie says:

Wow. this man is unbelievable.

Mo @ Highwoods & associates, accountants in shoreditch, accountants in old street

nerdenterprises says:

Well assuming you are in the business of selling carpet then presumably you would have previously purchased the carpet and put it into inventory so that when you sell the carpet it comes out of inventory and goes into COGS.

You would collect sales taxes only on the “Carpet” portion of the sale (labor is not taxable) and if you paid any sales taxes when you bought the carpet, that would be deducted from what you owe the state.

wsvitak says:

If u could just tell me one thing possibly relating to cost of goods sold I would really appreciate it. If I provide a carpet installation service to a customer and they pay me to provide them carpet, as well as the servide to installl the carpet, is the carpet itself an expense? do I deduct that from my income earned and do I pay taxes on the full amount minus the carpet as an expense, or do I minus the carpet from the income than pay the tax- Im speaking of federal tax only thanks in advance

nerdenterprises says:

Si Senorita. Hablo muy rapido.

Lucero Skinner says:

you speak very fast. habla muy rapido

nerdenterprises says:

Best think I can suggest is to keep watching free videos on YouTube.

Also set up a dummy company on your own and start playing around with entering transactions, always with a Balance Sheet and P&L open so you can watch the impact of the transactions on these reports. This will start giving you some great insight not just on how to post transactions in QuickBooks but on how to make sure the financial statements are presented well.

MrsLunna1 says:

Thanks for the video. I have Quickbooks my self but I have not used it but ‘Ive been in the administrative office field for several years and I want to learn, will be more money…..but financially i cant pay classes, give me an advice on how I can learn fast, any tips will be appreciated, i have an interview tomorrow and bookkeeping is involved.

nerdenterprises says:

The link is right in the video’s description. I can’t post URL’s in the comments here or I would.

HFEKSverigeAB says:

So when looking for a bookkeeper, rather than choosing the first one in the book or the cheapest, look at all the aspects of the company. Bells and whistles don’t always show professionalism or capability, you need to look a bit deeper

aprbookkeeping says:

A very, very, very good response. and how true it is often to late before some businesses realise this fact. Hey why not make the next video about the cost of inexperienced accountants/bookkeepers

nerdenterprises says:

Not sure what that has to do with this video, but yes. If you think it is expensive to hire a professional, try hiring someone inexperienced!

aprbookkeeping says:

So when looking for a bookkeeper, rather than choosing the first one in the book or the cheapest, look at all the aspects of the company. Bells and whistles don’t always show professionalism or capability, you need to look a bit deeper

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