November 28, 2010

Recording Returned or Bounced Check from a Client

Lately I have been getting questions on how to record a bounced check from a client in QuickBooks. The first thing you have to know is how did you record the check the first time.

If the returned check was one that was applied to Accounts Receivable do the following:
1. Open the check register that the money came out of.
2. Type the date of the returned check
3. No check number
4. Enter the amount of the returned check
5. Click the Split button
6.For the Account choose Accounts Receivable
7. Enter a memo "returned check" in the memo column
8. Choose the client in the Customer column that it was returned against.

By doing this you will put the money back into the clients accounts receivable.

If you just deposited the money to begin with and applied to something like legal fees do the following:
1. Open the check register that the money came out of.
2. Type the date of the returned check
3. No check number
4. Enter the amount of the returned check.
5. Click the split button.
6.For the Account choose Legal Fees or whatever account you used when you first deposited it.
7. Enter a memo returned check
8. Choose the client that it was returned against.

This will then reduce your income for the bounced check.

Hope this helps out. If you have any questions you are welcome to contact me at my office. (904) 284-4480.

November 27, 2010

Setting Up Users and Passwords in QuickBooks

QuickBooks allows you to setup Users & Passwords. This allows you to secure your data. In setting up users you can also assign rights to the user. For example, you may have someone who helps you with your billing and receiving payments. You would set them up to only be able to see the accounts receivable information.
To setup users and passwords:1. Click on Company from the Main Menu.
2. Click on Setup Users and Passwords.
3. Click on Set up Users.

The User List box will appear. This lists all of the users that are currently set up. The Admin account is set up by default. You may want to set a password for the Admin account, click on Edit User. Enter the new password and enter it again in the confirm password box. Select a challenge questions, and input the answer. When you are finished, click on Next. Click on Finish to complete the process.

Now we can add Users to your QuickBooks file.1. Click on Add User. Type in the name they will use to log in with and a password. Click Next.

2. Choose Selected Areas of QuickBooks.

3. Since Julie is going to be helping with billing and receiving payments we will want to give her full access on the Sales and Accounts Receivable window, choose Full Access and click Next.

4. Go through the additional windows and choose the options that fit your user.

5. Once you are done you will see a summary of the choices you picked. You can now review them and then click Finish. It is a good idea to log off and then log back on as them so you can test it out and make sure you have selected the right choices.

If you need help with learning more about QuickBooks I offer online consulting services. To find out more visit our Quickbooks Consulting service page at

May 14, 2010

Backing Up Your QuickBooks Data

Backing up your QuickBooks data is very important. If something ever happens to your computer, you will be able to restore you data file to another computer IF you have a backup.

The easiest way to backup your data is:

  • Click on File from the menu bar and Save a Copy or Backup. The following dialog box will come up.

  • Click Next.
  • Choose Local backup and click Next.

  • Choose your option. I recommend Save it Now and Schedule Future backups.

  • Choose how often and click Options to choose the location.

  • Name your file and enter time and days to do backup and click OK.

March 23, 2010

Setting Up Payment Plans Using QuickBooks

Here is an easy way to setup a payment plan in QuickBooks using the Invoice method.

You may have situations in which you want to setup a payment plan for a client using QuickBooks. Let’s say you are going to bill a client $2000.00 to do a case. One way you might want to do this is to create an invoice that day for the amount they are paying to start. Then create the remaining invoice or invoices individually with the date that they are due to make a payment. Use the terms as Due upon receipt. This will also allow you to create an aging report in the future so you can forecast what is coming in that month.

My new book for Law Practice Accounting using QuickBooks is available at I show how to do this and so much more.

March 22, 2010

Creating an Invoice in QuickBooks Grouped by Timekeeper

You may want to create an invoice that has time activity grouped by item type or timekeeper. I will use the attorney sample file in QuickBooks to show you how to do this.
To do this, when you click on add time and cost to invoice you will first select the items you want to come into the invoice. For example we want to show Jonathan's time first.

When the invoice comes up go to the bottom and add a line for the subtotal. This will add up all the lines above this group.

This is also great for grouping the expenses for things like postage and copies or other fees.

Here is what the invoice could look like.

You may want to get my new book Law Practice Accounting Using QuickBooks for 2010 and prior versions.

March 16, 2010

Checking for Conflicts of Interest with QuickBooks

QuickBooks has added a new find field in the customer list that can help you check your customer list for conflicts of interest. You can use the define fields to store other names that are associated with your clients. It is easy to use and attorneys may find it very helpful.

From the Home Page, choose Customers. QuickBooks displays the Customers: Jobs list.
Click on the Customer Job that you would like to add a custom field to.
Click the Additional Info tab.
Click Define Fields.
QuickBooks displays the Define Fields window.

In the first blank label field, type Versus.
Select the Customers: Jobs checkbox.
Click OK to close the Edit Customer window.
Close the Customers: Jobs list.

Finding names in the customer list
When you want to find a client or a name in your client list click on the find field on the customer list and then click the search box.