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Setting Up my books for Services rendered this year as tax preparer: Bad Debt not allowed

Cristina De Franco's Profile

I am setting up my books for the first time, and I'm super thrilled to do so, but I have so many questions.

1. Bad Debt or fix invoice amount
How do I enter in QBO the fact that a client underpay me for tax services? Looks like I'm not suppose to have a bad debt account, so I guess I should just make a note on the invoice and lower the amount charged?

2. Overpayment
Looks like I did not have change for a client and he ended up paying me more that I charged him. Same as above question applies.

3. Should I create invoices for every client in QB, or should I just add the bank deposits and enter them in a single transaction? I usually produce the invoice through the tax software.

4. Paypal payments. I received some payments through paypal so I created a paypal type of account but should I just call it cash, or is it okay to call it paypal to know the difference how I got paid?

Can somebody tell me what should I add, delete from my chart of accounts.

I know is a lot to answer, but if you could help me with a few of these questions would be great!

Thank you!


Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

I would recommend sitting down with a professional who can help you get your chart of accounts set up and answer your questions. You will need someone to do your taxes so that person can also be your consultant when you have questions on how to book things.
It's difficult to answer your questions without knowing all of the details and if advised incorrectly it could cause more harm than good.


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