plz answer the questions individually Setting up a company file Keeping your com
ID: 2556673 • Letter: P
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plz answer the questions individually
Setting up a company file Keeping your company current QBs calls a collection of all of your transaction categories a Chart of Accounts Set up major headings of account types for each separate company Accounts should be kept current frequently (daily?) Time involved is usually 5-10 minutes per update Bank feeds are available through many banks Tvpical daily tasks for QBs users: Bank accounts (usually just one per company) Income (profit & loss statement) Expense (profit & loss statement) Asset (balance sheet) Liability (balance sheet) Entering deposits (income) Entering bills that are received (bills owed) Handling accounts payable (paying your bills when due) e Generating computer checks and sending them Typical monthly tasks: Create sub-accounts in as much detail as you desire Income>>Wages, loan proceeds, gifts, refunds, other Expense>>Utilities>>Electric, gas, water, alarm Entering credit card statement data into proper accounts Reconciling your QBs company numbers with your bank statement This task is essentially done once when creating the company and then revised as needed over time e Generating and analyzing various financial reports Tvpical yearly tasks: Transferring information to your accountant for tax urposes 7 8 Using QuickBooks in school QuickBooks basics How would a dental student use this software platform before graduating?: 1. Tracking your PERSONAL financial transactions 2. Understanding your "monthly number" 3. Planning a personal/family budget 4. Creating data for tax returns 5. Keeping track of outstanding loans 6. Generating reports for strategic planning 1. Creating personal and business files 2. Setting up a chart of accounts 3. Entering transactions (income & expense) 4. Credit card statement entry s. Bank statement reconciliation 6. Financial statement reports .Income statement, balance sheet, cash flow 7. Paying bills and writing checks 8. Keeping track of savings and investments (if any)Explanation / Answer
1-It is important because business transactions are generally need to be separately recorded so as to determine the profit and loss from the productivity activity which is different from the personal transactions and also keeping transactions separate is considered as a good business strategy.STEPS-
A-Quickbooks can be effectively used for the above process.it is possible to create 999 different accounts in QB.hence we can create two different accounts for the personal and business purpose.
B-The different account descriptions for the personal and the business can be given in the quickbook in order to different between the two transactions.
C-There is proper tracking methodology in quickbook and hence it is ensured that personal and business transactions are not comingled so a clear distinguishment can be made between the two transactions.
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