Accounting settings

Accounting Settings decide how your books are kept. If you're not sure about a setting, ask your accountant before changing it. Each card has its own Edit and Save.

Accounting, sales tax and deposits

1. 1Accounting method: Accrual (income and expenses count when invoiced or billed) or Cash (when money changes hands).
2. 2First month of fiscal year: where "This year" starts in reports.
3. 3Track classes: tag transactions with a class, such as a department, either One to each transaction or One to each line item.
4. 4Inventory costing method: how the cost of items you sell is worked out, Average cost or First in, first out (FIFO).
5. 5What you sell: services, products or both.
6. 6Collect sales tax: whether you charge sales tax.
7. 7Where your books are today: Starting New, QuickBooks Online, Xero or Other.
8. 8Use Undeposited Funds: holds customer payments in Undeposited Funds until you record the bank deposit, for when several payments go in as one deposit.

Payroll and closing

Payroll says where payroll withdrawals and payroll reports from Smart Capture are filed. It works with any payroll provider.

1. 1Payroll taxes are paid by: The payroll company, from each run, or Us, separately, in which case the taxes wait in the liability accounts below until you pay them.
2. 2Wages and salaries: the expense account for gross pay.
3. 3Employer payroll taxes: the expense account for your share of payroll taxes.
4. 4Employer benefits: the expense account for benefits you pay for.
5. 5Employee reimbursements: the account for expenses paid back to employees.
6. 6Payroll service fees: the expense account for the payroll company's fees.
7. 7Bank account payroll comes out of.
8. 8Federal taxes (941): the liability account for federal withholding and FICA.
9. 9Federal unemployment (940): the liability account for FUTA.
10. 10State payroll taxes: the liability account for state taxes.
11. 11Retirement plan: the liability account for retirement contributions.
12. 12Other payroll liabilities: anything else held back from pay.
13. 13Close the books stops changes to transactions on or before a date without a password. The easiest way to close is the Period Close checklist, which sets the same date.