12 Dec 2017
Accounts Payables are documents that display the credit of a company when they make purchases in advance without paying for them. Vendor becomes the creditor and provides the organization with the accounts payable. Accounts Payables are recorded as liabilities as the money will flow out of the company. For more info. on Accounts payable, check out this article on Investopedia.
This proposes a problem for users as they will have to record the document inside QuickBooks and then transfer its rate to 0 while marking the accounts payable as paid.
Accounts payables are recorded in two ways depending upon the accounting basis that the organization follows. In cash basis, we only record the Accounts Payable when the payment is made. In accrual basis, the transaction is recorded despite the payment status. Most large organizations prefer recording transactions on an accrual basis as this represents a clearer picture of their financial standing. Also, this helps them in documenting the form in their books.
Recording this form is quite easy. When it comes to adjusting accounts payables, user’s need to be bit careful. You must deal with these forms with clinical precision. You can also record transactions into a clearing account if you do not want to deal with accounts payables. Further, clearing accounts must be cleared periodically. Hence, we recommend that you clear these accounts every week or every month. Dealing with these transactions at the year-end can become arduous.
If you have accounts payable pending within the program and you have cleared all your pending balances then the following steps will help you zero your balances:
There are a few good things about QB when it comes to accounts payables. It does not link the accounts payable directly to ledger or journal. So you need to manually add these to the balance sheet. This helps accountants tremendously. Also, make sure to attach the deposit or payment to the accounts payable. You may want to get the link to the transaction on a later date. Once you apply the deposit on particular accounts payable, you will have a direct link from within QB to that deposit. This will help you a lot in creating reports.
Request a Call Back
Talk to our Quickbooks Proadvisor and resolve your issue over a phone call.
What is Qbpro?
We are a Quickbooks and TurboTax consulting firm that takes care of all the issues that people might ever face within these programs. If you are using any of the above platforms and are continuously faced with bugs then we are here to help. You can connect with us for errors related to Quickbooks or TurboTax via any of the medium below:
Here is what people have to say about us.
Though we serve throughout the world but our clients majorly comes from Canada, USA, and the UK.
Disclaimer: QBpro.ca is a reputable QuickBooks® Consulting firm that provides professional support services related to your accounting software. It is also a front-runner in providing 3rd party technical support services for quickbooks.
Resolve your every issue on a
Free 30 minutes call
We hate SPAM and promise to keep your email address safe.
Get FREE 30 minutes, Resolve your issues now!