QuickBooks Asia

Setting up selling price for items to be inclusive of GST

Software: QuickBooks Canadian version

QuickBooks does allow user to set their selling price to be inclusive of the GST. If occasionally you need to include your selling price with GST, during the preparation of Invoice, you can simply select the checkbox “Amounts include tax” in your Invoice window.

However, if permanently you need your selling price to include GST, then, you have to set it up in both your preferences and item profile.

In your Sales Tax preferences window, under Company Preferences, you can set “Allow tax inclusive (gross) prices and costs to be entered”. Next at the item profile, you can set your prices to include Taxes by selecting the checkbox for “Amts Inc Tax”.

Now, whenever you sell this item, the price shown in the invoice window will be inclusive of GST.

Closing Date

Software: QuickBooks

One of the worry, which an Accountant had, was the user can change the QuickBooks transactions anytime (if he/she has the access right) even the account had already been closed.

A method to prevent changes is to set a Closing Date in your QuickBooks data file. Example: In the month of Oct 2008, you can set a Closing Date as of 30 Sep 2008. This will prevent user to enter data on or before 30 Sep 2008.

To set a closing date, simply go to Edit menu | Preferences | Accounting | Company Preferences tab | click  on “Set Date/Password” button and set the closing date and password accordingly.

QuickBooks will prompt for password when user try to save a transaction that is fall on or before the closing date.

To further control the security, QuickBooks Administrator can set the user don’t have the ability to edit or delete transactions that were recorded before the closing date in the user profile.

 

Tax account does not exist

Some user who uses QuickBooks Asia version 2007/08 had this error ‘Tax account does not exist’. This error was caused by corruption in tax setting (G.S.T.). When you perform a Verify and Rebuild data, QuickBooks does not pick up this error; user has to manually edit the setting to correct this error.

Before you edit your QuickBooks setting, it is best to back up your QuickBooks data. 

Then, from the Edit menu | select Preferences function. In the Preferences Window, go to Tax Preferences; then, follow by Company Preferences tab. Next, check the ‘NO’ radio button selection for ‘Do you track tax?’. Save your setting and exit Preference setting.

Next, you go back to your Tax Preferences Window and select ‘YES’ radio button selection for ‘Do you track tax?’. This will re-active your QuickBooks tax account.

The above will resolve the error on ‘Tax account does not exist’; try it, if you have a similar problem.

 

 

Accrual vs. Cash Basis

In QuickBooks financial reporting, you are being giving two options; Accrual or Cash basis.

Which reporting basis should you choose?

Accrual basis reporting will present an income or expenses in Profit and Loss report at the moment when you record an income (invoice) or expenses (Bill). 

Cash basis reporting will present an income or expenses in Profit and Loss report only when payment received from the sale or payment made for an expense.

On 02 September 2010, you record an invoice for a sale amount of $1,000.00 in QuickBooks. You gave your customer 30 days payment term. Then, your customer made a payment to you on 20 September 2010. 

If your reporting basis is based on Accrual basis, then on 02 September 2010, your Profit and Loss Report will show an income of $1,000.00. However, if your reporting is based on Cash basis, then your Profit and Loss report on 02 September 2010 will show nothing.

If you are using Cash basis reporting, you will realized your income on 20 September 2010. That is, only when customer made payment to you. Although, in General Ledger, you can see the transaction in Sales account; QuickBooks ‘hide’ the Sale value from the Profit and Loss report.

User can go to the Reports & Graph Preferences to change the reporting basis from Accrual to Cash basis. User who uses Cash basis has to be extra careful if you are GST register trader. In the Tax Preferences you have an option to use Accrual basis or Cash basis for Tax reporting.

You should check with your Accountant on the type of reporting basis that you should be using.