Just a quick question as I am having a blonde moment,(bad morning already boiler on the blink), I have another set of journals from an accountant to do for a client, I am getting them done early (not leaving them to the last minute), everything is straightforward, and I have to set up some new accounts on the COA in Quickbooks, my question is they have put down the accountants fees as an accrural on the bal sheet, I am assuming I need to creat a liability account in the bal sheet for this? Everything else on there is OK.
This is the first year on a conputerised system for my client as they were manual before this. Any help will be much appreciated.
Thanks Neil, in QB they have the COA so you can choose which section it should be in like expenses, accounts payable etc, so would you say set it up as a liability account?
Thats were I think it should be but want confirmation.
I have not used quickbooks for a while but setting up a code for accruals under 'accounts payable' sounds about right. It should appear as a credit balance under current liabilities in your balance sheet then you will know you have posted it right.
Hello Amanda agree with neil and littlebookkeeper. You can Journal the Accountancy fees as a debit balance and credit the Accruals Account under Current Liabilities you can create an account for accruals if need be. ie
dr cr
Accountancy fees 2000 example code 7300
Accruals 2000 example code 9600
make sure you create the Accrual under current liabilities and not long term.
-- Edited by Davey on Tuesday 23rd of March 2010 02:36:17 PM
