Year: 2017

Working with QuickBooks’ Vendor Records

QuickBooks never forgets. That is one of the reasons you use it. You create a record or transaction, enter a note about a customer, or write a check, for example, and the information gets stored in your QuickBooks file. If you do not remember exactly where it is, you can search for it. No more flipping through a card file or folder, or digging in drawers.

QuickBooks makes it possible–easy, even–to maintain thorough records of your vendors, the individuals, and companies who provide you with office supplies, product parts, computer equipment –everything you need to keep your business operating. Once you have started building a vendor record, you will be able to use it in transactions and reports and be able to refer to it when you need some information.

If you are just starting to use QuickBooks, part of your setup will involve entering vendor details in the record template the software supplies. If you have been a QuickBooks user for a while, but you have only supplied enough information about vendors to create transactions, consider fleshing out those elements of your accounting file as you have time.

Filling in Fields

To create a vendor record, open the Vendors menu and select Vendor Center. Above the tabbed table, there is a small toolbar. Open the New Vendor menu and click on New Vendor. A window like this will open:


Figure 1: You can store an enormous amount of detailed information about your vendors in these record templates.

At the top of the screen (not pictured here) is a box labeled Vendor Name. Enter it, then move on to the Opening Balance field and supply the amount and date. If you don’t understand the concept of opening balances, please call the office and one of our QuickBooks professionals will go over this with you.

Fill in as many of these fields as you can, and then click on the Payment Settings tab in the toolbar on the left. The fields in this window–Payment Terms, Credit Limit, etc.–are optional, but complete what you are able to. The more you can fill out now, the less work you will have to do later, since much of the information here automatically comes up when you create transactions.

The other tabs here open windows where you can specify:

  • Tax Settings. Vendor Tax ID and 1099 eligibility.
  • Account Settings. Here, you can select the default account that should be automatically selected when you enter a bill or expense for this vendor (for example, phone bills=Utilities: Telephone). Give the office a call if you aren’t clear about this particular step. It’s OK to leave it blank for now.
  • Additional Info. Vendor Type (subcontractors, for example) and Custom Fields (fields you can define for your own use).

When you are done, click OK.

Viewing Your Records

Once you have created one or more vendor records, the Vendor Center will display a list of them in its left pane. Click on one to highlight it, and you will see something like this in the right pane:


Figure 2: The Vendor Information window displays contact information in the top pane (not pictured here), and additional details below.

Here is where your conscientious work creating records starts to pay off. Click on any of the five tabs in the top toolbar to display that vendor’s Transactions, the Contacts from that company, any related To Do’s, Notes you have taken, and Sent Email. Once your lists grow unwieldy, you can search by a variety of filters.

Using Records in Transactions

There are numerous transaction types that require vendor information, like purchase orders, bills, checks, and sales tax payments. When you open one of these transaction forms and click the down arrow in the Vendor field, your list will drop down. Select one, and related details that you’ve already entered will automatically appear in the correct fields.

You can create vendor transactions from either the home page or the menus. You can also do so from the Vendor Center. With either the Vendors or Transactions tab active, you would click on the New Transactions link in the upper toolbar and select the one you want to launch.


Figure 3: QuickBooks provides numerous paths to creating vendor-related transactions.

The mechanics of filling in the fields in vendor records and using that information in transactions are not overly complicated. But as noted here, you may run across unfamiliar concepts. If you need help with any aspect of QuickBooks’ vendor records, please call.

Tips for Taxpayers: Travel Expenses for Charitable Work

Do you plan to donate your time to charity this holiday season? If travel is part of your charitable giving, for example, driving your personal auto to collect donations from local business, you may be able to these travel expenses on your tax return and lower your tax bill. Here are five tax tips you should know if you travel while giving your services to charity.

1. Qualified Charities. To be able to deduct your costs, your volunteer work must be for a qualified charity. Most groups must apply to the IRS to become qualified. Churches and governments are generally qualified and do not need to apply to the IRS. Ask the group about its status before you donate. You can also use the “Exempt Organizations Select Check” search tool on IRS.gov to check a group’s status or call the office.

2. Out-of-Pocket Expenses. You can’t deduct the value of your services that you give to charity. But you may be able to deduct some out-of-pocket costs you pay to give your services. This can include the cost of travel, but they must be necessary while you are away from home. All out-of-pocket costs must be:

  • Unreimbursed,
  • Directly connected with the services,
  • Expenses you had only because of the services you gave, and
  • Not personal, living or family expenses.

3. Genuine and Substantial Duty. Your charity work has to be real and substantial throughout the trip. You can’t deduct expenses if you only have nominal duties or do not have any duties for significant parts of the trip.

4. Value of Time or Service. You can’t deduct the value of your time or services that you give to charity. This includes income lost while you serve as an unpaid volunteer for a qualified charity.

5. Travel You Can Deduct. The types of expenses that you may be able to deduct include Air, rail and bus transportation, car expenses, lodging costs, cost of meals, and taxi or other transportation costs between the airport or station and your hotel.

6. Travel You Can’t Deduct. Some types of travel do not qualify for a tax deduction. For example, you can’t deduct your costs if a significant part of the trip involves recreation or vacation.

Don’t hesitate to call if you have any questions about travel expenses related to charitable work.

Flexible Spending Accounts (FSAs)

Flexible Spending Accounts or FSAs provide employees a way to use tax-free dollars to pay medical expenses not covered by other health plans. Because eligible employees need to decide how much to contribute through payroll deductions before the plan year begins, now is when many employers are offering employees the option to participate during the 2018 plan year.

Interested employees who wish to contribute to an FSA during the new year must make this choice again for 2018, even if they contributed in 2017. Self-employed individuals are not eligible.

An employee who chooses to participate can contribute up to $2,650 during the 2018 plan year (up from $2,600 in 2017). Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax. If the plan allows, the employer may also contribute to an employee’s FSA.

Throughout the year, employees can then use funds to pay qualified medical expenses not covered by their health plan, including co-pays, deductibles and a variety of medical products and services ranging from dental and vision care to eyeglasses and hearing aids. Interested employees should check with their employer for details about eligible expenses and claim procedures.

Under the use or lose provision, participating employees must often incur eligible expenses by the end of the plan year, or forfeit any unspent amounts. But under a special rule, employers may, if they choose, offer participating employees more time through either the carryover option or the grace period option.

Under the carryover option, an employee can carry over up to $500 of unused funds to the following plan year–for example, an employee with $500 of unspent funds at the end of 2018 would still have those funds available to use in 2019. Under the grace period option, an employee has until 2 1/2 months after the end of the plan year to incur eligible expenses–for example, March 15, 2019, for a plan year ending on December 31, 2018. Employers can offer either option, but not both, or none at all.

Employers are not required to offer FSAs. Accordingly, interested employees should check with their employer to see if they offer an FSA. Please call if you have any questions about how FSA contributions affect your taxes.

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