Have you been wondering what is the proper process?
For month end? Is there something I should be checking? Or
I good to go
Well, you are in the right place if we've never met before. Hi,
I'm Candus Kampfer. And I love to help both business owners and
bookkeepers create Confidence and simplicity
within QuickBooks. So today's video is all about what is the month-end process.
I do have a PDF that you can always
get access to at Canduskampfer.com/month-end but we're gonna be jumping in,
in looking at them step by step,
the most important areas to be checking at the end of your month.
So come look over my shoulder. Let's jump into QuickBooks.
So when you're in here,
a couple of things, the first thing that you want to be looking at
is what's going on with your
accounts receivable.
What is going on with your accounts payable?
So let's look for first at
accounts receivable.
So why do we check accounts receivable? What is the purpose of it?
Remember that there are three ways to track your income in QuickBooks.
And if you are using create invoices,
then you have what's called accounts receivable. It's a way for you to
track who is gonna pay you later.
The reason this is so important is it's cashflow, right, like
who owes you? When is it gonna come in?
And then in a minute, we'll be talking about accounts payable which is
who do you owe? And when do you owe it by, so when you go in,
you can look at
customers receivables under Reports,
I will be showing the online in a moment. And you can do either
aging
summary or detail
summary is gonna be exactly that it's more summarized,
it's gonna be your customers names. Are they current? How many days out?
This is a sample file. So it's further out than
most likely yours is hopefully,
you can also look at the details.
Or there's one extra little bonus report that I'll teach you, which is the open invoices.
What I love about this one is it's by customers and then what invoices are open.
Now can you go in and look at their exact
inside the Customer Center? Yes, you can look at them there as well.
Let's go look at the online version.
And let's go under Reports.
You can type it in if you want or you can scroll down and you'll see these are different sections
who owes you is going to be your accounts receivable
if you start it,
it will then populate up here under your favorites.
You've probably heard me talk about that in a prior video.
So you can go under Accounts Receivable,
aging summary or detail whichever one you want.
You also have open invoices here as well, there you go.
So if you're not already and you use invoices, which
for online users is gonna be right here,
you definitely want to be checking this to make sure everything is
accurate.
So that's the first thing that we uncheck number two,
we want to go in and we want to check
our vendors accounts payable.
So just as customers is cashflow of
who as I said owes you and
vendors is gonna be,
who do you owe.
Now this is a two step process.
I don't recommend it for every business. It depends what you have going on.
But if you are using Enter Bills,
then you can come in here and use under vendors
Accounts Payable summary, to see who you owe, and how far out it is
to help you manage your what?
Cash flow Exactly.
If you're an online user, you can go under Reports.
You can type it in up here on the search or you can scroll down
to
what you owe. And you can look at your
accounts payable, aging, detail or summary.
Whichever one so you can see who do you owe and how far out before you have to pay them
As I said this is to manage your cash flow.
I also really like the unpaid bills report as well,
because it's going to show you just like open invoices,
unpaid bills, so go in and check those reports out.
Let me know down below in the comments.
Which of these reports do you love the most? I love teaching reports.
It's one things I teach inside Confidence with QuickBooks.
Just because
you really want to be able to manage your business, right?
That's the whole point of all these reports.
Why use QuickBooks if you're not using it as a tool for your business?
Wouldn't you agree? All right, so we checked customers
and payables or receivables and payables.
The next thing that I like for you to check is I want you to go in,
and if you have petty cash.
So this is where you have a cash till or you have some cash on hand,
you want to go in and make sure
that whatever the balance is, if it's supposed to be $500, 1000, like whatever it is for your business,
that, that is staying up to date
that all the receipts have been entered, that everything is accurate and been verified.
If you use online,
your words, it's good going to be,
if you will, for your Chart of Accounts, it's here under accounting chart of accounts.
You want to set this up as a bank account,
and you would have it here and you'd go in and you'd verify that everything's been entered properly.
This is actually one of the better ways
to enter in like cash receipts to make sure you have
where you spent it and where it went for tracking purposes.
Next,
you want to be checking and reconciling your bank accounts.
Whether that's checking, savings, whatever you have,
every single month, you want to match it, the statement
to your QuickBooks.
Okay? Let me know below if you are reconciling,
both on desktop and online.
And don't forget, I have this entire checklist
that if you're like, Oh, I heard what she said, but I like this checklist, you can get the PDF version of it
Canduskampfer.com/month-end
And you can come in here and you want to be verifying.
And you can find on your online
your reconciliation, there's a few different ways, but you can click here
and go in and look at it. Now remember,
reconciliation is comparing what happened at the bank
to what happened in QuickBooks.
So you're gonna go ahead and click on reconciliation, and you just verify
what happened,
make sure you're doing that every single month,
also on your credit card. So bank accounts, credit cards,
any type of account that you have
to make sure that it matches,
I also recommend actually setting up PayPal as its own bank account,
and reconciling it
so that you know exactly where that money went. Because,
Because PayPal is typically used, like an actual bank account,
So whether your desktop or online, you want to be doing that
okay, so make sure you're setting up.
PayPal has a bank account.
You also want to be verifying and reconciling your loans, either quarterly,
or yearly to make sure why? Why does that matter?
Because you want to break down your principal and interest.
So that when you go to file your taxes you're writing off
if the interest is a business, expense it off on your taxes, right?
Okay, next we have on our list.
It's also on your PDF,
taxes, accrued taxes.
So there are different kinds of taxes that you can get with
QuickBooks, you can have
payroll taxes, meaning
you process your payroll inside QuickBooks, and you come in here and you pay it
or
you might have sales tax, right. So that's
don't forget to pay your sales tax. Now, I will give you a couple tips, one,
for payroll, if you
pay at the end of the month, make sure you've processed your payroll,
then pay your taxes.
And then if it's a quarterly month, you want to make sure that you've paid your taxes
before you file your quarterlies.
Why is that?
So that it shows all of your payments when you go to file quarterly. So,
process your payroll,
pay your payroll taxes on a quarterly,
make sure that's all happened before you file your quarterlies.
Why do I say that? Because I haven't always done that. And I found it,
so much easier. So make sure you're doing that.
And if you are an online user, your payroll is gonna be here for processing payroll,
your taxes are gonna be here under taxes.
If you are processing payroll, this is a sample file so if you have it in here.
But your payroll tax will be here as well as your sales tax,
you need to process these properly. Because if you try to process them
as a normal payment
in QuickBooks, not these types of payments
it won't actually
work properly or report properly as well.
So make sure you're doing that.
Next,
you want to
check in with your clients and make sure there's nothing that they
have on hand that they haven't told you about.
If you're tracking inventory, that you've gone in and done your inventory tracking
for the month, for the quarter of the year, depending on when you do it.
As well as do they have any cash receipts,
do they make any purchases that you need to get the paperwork, whether it's
real estate, there's a HUD one, whether they bought a piece of
act like equipment,
all those things you want to be keeping for two reasons.
One, you may owe sales tax, if you didn't pay it
depending on what state you're in.
And two, you're gonna want to have that to enter into your QuickBooks
because in a minute, we're gonna talk about reports.
And
you wanna make sure you have it so that when you go to your tax professional, and they want to know,
What was the date of service,
that you put that equipment in,
when did that happen?
So if you have this little checklist,
and you do it monthly, it's gonna make it so much easier
than if you wait till the end of the year,
Right? Because we forget what we did,
sometimes two months ago.
So you want to make sure that you're doing this,
alright, then you're gonna want to go in, and two more things that we're gonna talk about,
you want to look at your profit and loss.
If you're not familiar with your profit and loss, I'd highly recommend
coming to my
customizing QuickBooks workshop, you can go to Canduskampfer.com.
To look at that,
but you're gonna want to look at last month in the sample file, I don't have it.
But you can also look at this year, last year, all that stuff year to date,
I talked about those types of things in my free training.
So I highly recommend checking it out.
If you're not comfortable.
Or if when you do pull your report, you don't feel like it was designed for you.
You don't feel like you really understand it.
This is the workshop I recommend that take
And if you are an online user,
you're gonna want to make sure that
when you come in here to your reports,
you can always pay for them don't forget so these are at the top
but you can always scroll down, to look at the business overview.
And you'll see the profit and loss is right there.
So what is a Profit and Loss it has your income
minus your expenses tells you did you have a profit for whatever period of time you've select it
or a loss. If it's a negative number, it's a loss.
So that's one report, and then the other report we'll pull it here first, while we're in here
is the balance sheet,
the balance sheet fills in the gaps. So income and expense is only
a portion of the equation in accounting,
the rest of it is also gonna be your assets,
liability, owner's equity.
So you go in here, we talked about like,
where do your bank account sit? Right? We verified that.
Do we have our fixed assets? Did we added what we purchased?
We talked about that as well?
Do we owe accounts payable, remember, we checked our bills, or
see if you owed and they're accurate.
You're verifying your credit cards, you're verifying your payroll liabilities,
your sales tax,
and all your loans. That's everything here.
And then the last piece of your balance sheet is going to be your equity,
your retained earnings. And I actually have a video on that as well.
I also linked in the PDF, some of the other
videos that I have, like on EPay and things like that if you need them,
so don't forget to grab the PDF.
The other thing that I would say is
closing date. So this is actually something I get asked often,
let me show you,
before I do how to pull the balance sheet for desktop users.
It's gonna be right here and see same thing,
same information on this one.
Now,
closing date, this is actually something I get asked often do I have to close it or not?
QuickBooks will do your closing entry at the end of your
accounting period, meaning if your calendar year it's gonna be December,
if you're a fiscal year, and you add in mid year,
it will do an closing entry for you.
But there is one thing you can do in QuickBooks, and I have a tutorial video
that will give you step by step and I'll show you
a little quick sneak peek. It's called the set closing date,
which is just where you set a period of time
where you can't go back and enter transactions before.
This is great to do.
At the end of the year after you've filed your taxes, all transactions have been entered.
So that way, nobody can go back and change anything.
because you want your profit and loss to match what you filed in the previous years.
So that if you ever get audited,
and it just makes life easier, you can also choose to do this
throughout the months as you close them as well.
So if you're looking for the video for both desktop or online, I'll link it here.
I also put the link inside of the PDF.
Let me know,
did this video help you?
Do you feel like you have all the pieces you need
to close your books.
Now you know what you could be looking at depending on what
features and functions you are using QuickBooks.
If I miss anything that you're doing,
will you let me know below? I would love to see it.
Share with us any of your brilliant things that you do on a regular basis.
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Thank you so much for being part of my community.
You can always watch this video again.
If you want to see these tips.
Have a great day
Talk to you soon.
Bye.