QuickBooks Period End Tasks: The Accounting Side – Chpt.1

Posted by on Aug 17, 2011 in Fiscal Period End Tasks | 4 comments

I’m going to start a series to do with QuickBooks accounting side of the Fiscal Period End, and the tasks involved.  Now although these articles are aimed at the more senior accounting person, I do feel that the less experience person can pick up some useful information on what is expected from them.

This will have to do with reviewing and reconciling the Balance Sheet.

Unless you are the in-house accountant that prepares the financial statements, most of your will be preparing the working papers in order for the external accountant to file the tax return. You can save time and money for the company by reviewing and reconciling the balance sheet.

As I start out, I will deal with the Asset portion of the balance sheet and work through to the Liabilities. You will have to follow along and work through this series in order for it to benefit you and the company.

First of all you need to open up your Balance Sheet for the fiscal period that has ended. To do this, go to your Menu Bar/Reports/Company & Financial and choose Balance Sheet Standard. Once that opens up make sure to use the correct date, which should be Last Fiscal Year.

Bank Accounts –  There are two bank accounts for this sample company, chequing and savings. What needs to be proven here is that the December, 2008 bank statement has been reconciled to the QuickBooks bank amount displayed on the balance sheet.

Since I have covered bank reconciliations in a previous article, I will assume that you have enough knowledge to perform that task. With that in mind, I would take the bank statement and attach a copy of the December QuickBooks bank reconciliation report to it.

If you look closely at the Master Chequing Account on the Balance Sheet and the Reconciliation Detail Ending Balance, you will notice that the figure of 158,624.52 is the same, thus reconciling.  This figure would also be the closing balance on the bank statement.

As you can see from the Reconciliation Detail there are a number of cheques that are still Uncleared as at the end of the fiscal year.

I would repeat the same steps to reconcile the savings account.

Accounts Receivable – next asset on the balance sheet is the accounts receivable. To reconcile this account will entail matching the figures from the Accounts Receivable Aging Summary to the balance sheet.

 

As displayed by the screen shots, the amount of 24,990.77 is the same in both reports, i.e. Balance Sheet and A/R Aging Summary.

What needs to be investigated here, is the over 90 day amount of  2,462.00 that is still outstanding from Greene, Jeremy. Is this amount still collectible or will it have to be written off?

This depends on how old the invoice is. If there have been repeated attempts to collect this with no result, than this amount (2,462.00) would have to be moved to an Allowance for Doubtful account and the off-set would be Bad Debt expense.

Inventory – continuing on, the inventory balance sheet figure on the left will have to reconcile to the Inventory Valuation Summary Report.

What is also performed at the end of the fiscal year is a physical count of the inventory in stock. Depending on the outcome of this task, will determine whether an inventory adjustment has to be made to any of the items.

If an adjustment is made, this will change the figures on both the inventory balance sheet and valuation summary report.

Another evaluation that should be done is whether the inventory items have changed in value. By that I mean, is there any inventory that needs to be de-valued because of age, or is it obsolete – in which case it should be written off.

Next Up – Prepaid Expenses and Fixed Assets

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4 Responses to “QuickBooks Period End Tasks: The Accounting Side – Chpt.1”

  1. Do you care if I reference thing about this on my site if I post a link back to this website?

  2. Chapter 2 of Quickbooks period end task – the. Accountant side, Do you have a completed guide for sale or download for this material ?

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