• Post category:StudyBullet-6
  • Reading time:7 mins read


QuickBooks Pro Desktop 2019 tracks more of our year-end tax needs in one QuickBooks file by using tax tracking methods

What you will learn

Use equity draws accounts to track personal tax items in a business QuickBooks Desktop Pro 2019 file

Use classes to track personal tax items in a business QuickBooks Pro Desktop 2019 files

Add add, work with, and explain how to use classes in QuickBooks Desktop Pro 2019

Explain how the profit and loss statement is related to the equity section of the balance sheet

Description

Use QuickBooks to track personal tax item as well as business expenses easily, so that we have more of our year-end tax preparation materials in one place that is well organized.

Tracking personal tax-related items in a business QuickBooks account is actually a highly controversial topic in the world of accounting and bookkeeping, the conventional wisdom being that we should separate any personal items from the business files as much as possible, whether they be tax related or not.

Many small businesses use QuickBooks primarily to help with year-end tax documentation needs, however, and a system that can achieve more of these needs in one place will be worth the time to learn.

Professional bookkeepers can use these methods to help differentiate themselves from the competition by providing more service that client will greatly appreciate for minimal extra effort once the system is set up.

We will provide two methods for tracking personal tax items in our business QuickBooks file and let you decide if either of these methods will work well for your needs.


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One method will work with equity draws accounts and the other method will utilize QuickBooks classes to track personal tax-related items in the business QuickBooks file.

Both methods have their pros and cons and the choice between the two will come down to the individual needs and preferences of the business and bookkeeper.

QuickBooks does a great job of tracking business expenses which we can also think of a business-related deductions, deductions a sole proprietor would report on a schedule C.

There are many other personal deductions a business owner may want to track as they are paid, however. For example, a business owner may want a system for tracking charitable payments, medical payments, child care payments, college costs payments, retirement plan payments, and state tax payments.

QuickBooks can help to track these personal payments as well as business payments, and we will provide methods for doing so.

English
language

Content

Introduction

Introduction
110 Personal Tax Deductions Problem
120 Personal Tax Deductions Tracking Methods
Accounting Comic Break

Equity Method – Using Draws Accounts To Categorize Personal Tax Items

2 Equity Method – Using Draws Accounts To Categorize Personal Tax Items
Backup Files Link
Backup Files – Download & Restore
PDF – Bank Statement Download
510 Tax Deductions Tracking Equity Draws Account Method Overview
515 Tax Deductions Tracking Equity Draws Account Method Charitable Contributions
520 Tax Deductions Tracking Equity Draws Account Method Education
525 Tax Deductions Tracking Equity Draws Account Method Child Care
530 Tax Deductions Tracking Equity Draws Account Method Medical Costs
535 Tax Deductions Tracking Equity Draws Account Method Personal State Tax Costs
545 Tax Deductions Tracking Equity Draws Account Method Close Draws Accounts
545 Tax Deductions Tracking Equity Draws Account Method Subaccount
550 Tax Deductions Tracking Equity Draws Account Method Enter Data For Prior Mon
555 Tax Deductions Tracking Equity Draws Account Method Bank Reconciliation
Accounting Comic Break

Classes Account Method – Using Classes To Categorize Personal Tax Items

3 Classes Account Method – Using Classes To Categorize Personal Tax Items
Backup Files Link
Backup Files – Download & Restore
PDF – Bank Statement Download
710 Tax Deductions Tracking Using Account Classes Method Overview
712 Tax Deductions Tracking Using Account Classes Method Set Up Classes
715 Tax Deductions Tracking Using Account Classes Method Charitable Contribution
720 Tax Deductions Tracking Using Account Classes Method Education
725 Tax Deductions Tracking Using Account Classes Method Child Care
730 Tax Deductions Tracking Using Account Classes Method Medical Costs
732 Tax Deductions Tracking Using Account Classes Method IRA Individual Retireme
735 Tax Deductions Tracking Using Account Classes Method Personal State Tax Cost
740 Tax Deductions Tracking Using Account Classes Method Subaccount
745 Classed Account Method Filter Reports by Classes
750 Tax Deductions Tracking Using Account Classes Method Bank Reconciliation
Accounting Comic Break

Comparison – Equity Draws Method & Classes Account Method

4 Comparison – Equity Draws Method & Classes Account Method
Backup Files Link
Backup Files Link
810 Personal Tax Deductions Tracking Methods Comparison
Accounting Comic Break