38007045
Description
Flashcards by Stephanie Poole, updated more than 1 year ago
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Created by Stephanie Poole
over 1 year ago
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| Question | Answer |
| QBO SatNav | your satellite navigation for Quickbooks online, assisting you in navigating QBO |
| Check register | a record of all transactions affecting the checking account |
| Money in | Money coming into the business must be recorded in QBO so there is a record and paper trail. Three main ways to use QBO to record money coming in are: Customer Sales using Sales Receipts Customer Sales using Invoices > Receive Payments Bank Deposit |
| MONEY OUT | A business needs to track all money out, including all cash paid out of the company’s Checking account. Examples of payments include purchases of inventory, office supplies, employee salaries, rent payments, and insurance payments. Supporting documents (source documents) for payments include canceled checks, receipts, and paid invoices. These source documents provide proof that the transaction occurred; therefore, source documents should be kept on file for tax purposes. QBO permits us to add source documents as attachments. Four main ways to use QBO to record money out include: Expense Check Bill > Pay Bills Purchase Order > Bill > Pay Bills |
| Bank reconciliation | the process of comparing, or reconciling, the bank statement with your accounting records for the Checking account. |
| error | Errors can be either the bank’s error(s) or the company’s error(s) |
| Timing differences | This occurs when the company records an amount before the bank does or the bank records an amount before the company does. |
| Deposits in transit | Deposits the company has recorded but the bank has not. |
| Outstanding checks. | Checks the company has written and recorded but the bank has not recorded yet. |
| Unrecorded charges. | Charges that the bank has recorded on the bank statement but the company has not recorded in its accounting records yet. Unrecorded charges include service charges, loan payments, automatic withdrawals, and ATM withdrawals. |
| Interest earned on the account. | Interest the bank has recorded as earned but the company has not recorded yet |
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