QUICKBOOKS UPDATE
Tips and Tricks to Help You Better Use QuickBooks. | Hawkins Ash CPAs
In this Edition
September 2020

Verifying Data in QuickBooks

Recording Funds Received from the SBA CARES Act

QuickBooks Connect How-To Series - Oct. 20
Upcoming Session: Budgeting

FFCRA: Paid Leave Payroll Calculator

How to Ditch the USB Drive

Don’t Forget About the Search Feature in QuickBooks

Payroll and Year-End Reporting Webinar - Dec. 3
Verifying Data in QuickBooks
Verify Data is a QuickBooks utility that can determine whether or not your data file has become corrupted. Verifying data also keeps your software running smoothly.
Common reasons to use the Verify Data feature include:

  • Discrepancies on reports, such as invoices or bills that post with a negative value
  • Fatal errors
  • Balance Sheet not showing all accounts or being out of balance
  • Transactions missing
  • Names missing from lists

If any of these situations occur, the Verify Data utility should be run.

  • From the File drop-down menu, choose Utilities > Verify Data.
  • If you have open windows, QuickBooks will need to close these.
  • When asked, “Do you want to continue?” click Ok.

  • If the Verify Data completes with the message, “QuickBooks has detected no problems with your date,” the data is good.

  • If the Verify Data completes with the message, “Verify Results: Errors you can fix by rebuilding your data” you should Rebuild the file.

To rebuild the file:

  • From the File drop-down menu, choose Utilities > Rebuild Data.
  • QuickBooks will prompt you to make a backup copy of the file. The Rebuild will start as soon as the backup is complete.

  • When the Rebuild process has finished, the message, “Rebuild has completed” will appear.

  • You can then choose View Issues or Close.

  • Most issues can be resolved with the Rebuild Data Utility.

If you are condensing your QuickBooks file, remember to run Rebuild prior to condensing the file; make sure there are no errors prior to condensing.

Verify Data and Rebuilding the file cannot always fix all the issues. For more assistance contact your Hawkins Ash CPAs QuickBooks consultant.

Author: Renee Kabat, QuickBooks Certified ProAdvisor
Direct: 608.793.3154
Recording Funds Received from the Small Business Administration (SBA) Coronavirus Aid, Relief, and Economic Security (CARES) Act
Note: It is important to keep these funds separate for income tax reporting.

Economic Injury Disaster Loan (EIDL)
Loans up to $2 million

Create a new account:

  1. Click Lists on the top menu bar
  2. Click Chart of Accounts
  3. Click the Account drop-down (or right-click in the list)
  4. Click New
  5. Click Other Account Types and choose Long Term Liability from the drop-down list
  6. Click Continue
  7. Enter “EIDL Loan” in the Account Name field and complete any additional information that you track (account number, description, etc.)
  8. Click Save & Close

Economic Injury Disaster Loan (EIDL) Grant
Grant up to $10,000 for applicants of EIDL loans

Create a new account:

  1. Click Lists on the top menu bar
  2. Click Chart of Accounts
  3. Click the Account drop-down (or right-click in the list)
  4. Click New
  5. Click Other Account Types and choose Other Income from the drop-down list
  6. Click Continue
  7. Enter “EIDL Grant” in the Account Name field and complete any additional information that you track (account number, description, etc.)
  8. Click Save & Close

Depositing the Funds Received

  1. Click Banking on the top menu bar
  2. Click Make Deposits
  3. If there are any “Payments to Deposit” click Cancel
  4. Click the drop-down in Deposit To and choose the bank account the funds were deposited in, then Tab
  5. Change the date to the date the funds were deposited, then Tab to From Account
  6. In the From Account column, enter “EIDL Loan” or “EIDL Grant,” then Tab to Amount
  7. In the Amount column, enter the amount of funds received
  8. Click Save & Close

Author: Debbie Denny, Advanced Certified QuickBooks Desktop ProAdvisor, Certified QuickBooks Online ProAdvisor
Direct: 920.337.4558
QuickBooks Connect How-To Series
Upcoming Session: Budgeting
Tuesday, October 20
12 noon - 1:30 p.m.

Register today to participate in our upcoming QuickBooks Connect event in October. During this call-in session, our conversation will center around budgeting in QuickBooks.

Debbie Denny, an Advanced Certified QuickBooks Desktop ProAdvisor and a Certified QuickBooks Online ProAdvisor, will lead the dialogue, answering questions and providing tactical advice to topics you submit during registration. Topics she will cover include:

  • How to create a budget
  • How to create a forecast
  • Setting up and utilizing comparative reporting
FFCRA: Paid Leave Payroll Calculator
Under IRS guidance, eligible employers who pay qualifying sick or childcare leave under the Families First Coronavirus Response Act (FFCRA) will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and childcare leave that they paid, rather than deposit them with the IRS.

The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees.

If there are not sufficient payroll taxes to cover the cost of qualified sick and childcare leave paid, employers will be able to file a request for an accelerated payment from the IRS using Form 7200. The IRS expects to process these requests in two weeks or less.

We have developed an FFCRA Calculator to help you determine the 941 payroll tax credit and/or advance from the IRS (Form 7200). This calculator will assist you in keeping your documentation organized by employee.
Using QuickBooks to Pay FFCRA Leave?
Until QuickBooks has the function working on the back-end, use these instructions as a workaround for paying FFCRA leave in QuickBooks.
How to Ditch the USB Drive
Do you mail or hand deliver a USB drive to provide a QuickBooks backup to your ProAdvisor or accountant? Did you know there is a way to possibly eliminate both of these steps? Hawkins Ash CPAs gives all of our clients access to a secure, online portal that provides an easy-to-use and secure method to transfer files between you and your accountant, and this includes QuickBooks files. Here’s how it works.

Set Up Your Client Portal

First, if you have not yet set up your client portal, contact your Hawkins Ash ProAdvisor and they will help you with the setup.

In QuickBooks, create a Portable Company File (click File > Create Copy)

This backup type is condensed and is the recommended file type to send your ProAdvisor. In a Portable Company File, a ProAdvisor has no limitations when reviewing the financial data.

Note: You should use a QuickBooks backup (click File, Back Up Company) to back up your company data in the case of data corruption or loss. The Portable copy does not include images, logos, templates, etc. whereas the backup does.

After you have created the file to share with your ProAdvisor, upload the file to your Hawkins Ash CPAs client portal—and you’re done!

Some advantages and limitations to consider:

Advantages to Using the Portal

  • Your ProAdvisor receives your QuickBooks file immediately.

  • Contactless; if you’re looking for more ways to decrease the spreading of germs in this current COVID-19 climate, portal usage is ideal.

  • Postage expense and delivery time is eliminated. There’s no chance of your USB drive getting lost in the mail, either.

Limitations to Using the Portal

  • Access to a reliable internet is required to upload files to your client portal.

  • The maximum individual file size the portal can send is 2GB. This is another reason we emphasize sending the condensed Portable Company File type. Even many large QuickBooks Enterprise company files can be condensed small enough as a Portable Company File to be sent through the portal. If the Portable Company File is larger than 2GB, then providing a QuickBooks backup file would still require a USB drive.

Author: Rachel Blumenshine, CPA, Certified QuickBooks Desktop ProAdvisor
Direct: 715.301.7648
Don’t Forget About the Search Feature in QuickBooks
The search feature is one of my favorite time savers. Below are easy steps for you to access this feature in both the Online and Desktop versions of QuickBooks.

QuickBooks Online

In the upper right corner click on the magnifying glass.

Next, in the lower right corner of the pop out menu click the Advanced Search hyperlink. (Tip: The advanced search works much better than just the basic search.) Here you can enter as much or as little information as you like.

Your search should provide the following detailed columns:

  1. DATE: This is the date of the transaction.
  2. TYPE: Is the transaction an invoice, a bill, journal entry, check, expense, etc.?
  3. NO: The transactions reference number (for example, a check number).
  4. CONTACT or NAME: The Client, Customer, Vendor or Employee.
  5. AMOUNT: The specific monetary amount.
  6. LAST MODIFIED DATE: The last date any modifications were made to the posted transactions. You can search the Audit Trail.

QuickBooks Desktop

Go to Edit > Find or press Ctrl + F. Frequently used search fields will appear at the top of the filters to narrow down your search. You can enter as much or as little information as you have available. The resulting columns are very similar to what is given in the online version.

No matter which version of QuickBooks you are using, both offer a search tool, putting the transaction you’re looking for at your fingertips. When you see what you’re looking for in the results, you should be able to double-click on the transaction and edit as needed.

If you have any questions, feel free to call us. We are always here to help. Happy searching!

Author: Jennifer Kiehne, CPP, Certified QuickBooks Desktop ProAdvisor, Certified QuickBooks Online ProAdvisor
Direct: 507.252.6682
Payroll and Year-End Reporting Webinar
Thursday, December 3, 2020
12 noon - 2 p.m.

As an employer, you know that year-end payroll processing and reporting is a complex undertaking that adds to the stress of closing the books for the year. To help ensure a smooth, error-free year and get the latest information register for this webinar with Accounting Services Manager Debbie Denny.

Debbie will address compliance issues of year-end payroll processing and reporting, and bring you up-to-date on the latest changes that affect the close of 2020 and the beginning of 2021. Topics covered in the two-hour webinar will include:

  • Fringe benefits
  • W-2 add backs
  • ACA reporting
  • Independent contractor issues
  • 1099 rules and due dates
  • Families First Coronavirus Response Act (FFCRA)
  • Coronavirus Aid, Relief and Economic Security (CARES) Act
More Resources from CPA-HQ
QuickBooks How-To: Recording Funds Received from the SBA Paycheck Protection Program

Get detailed instructions on how to track the spending of your PPP loan.
Don’t Forget about the Payroll Tax Credit

If your company has been able to keep some or all of its workers on its payroll, remember that you may still be able to qualify for the payroll tax credit created under the CARES Act.
IRS Releases Guidance on Employee Social Security Tax Deferral

While there are still many questions remaining in regard to employee Social Security tax deferral, here is an overview of recent IRS guidance.
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