Part II Establishing Your Own QuickBooks Business in .NET

Integrate ean13+2 in .NET Part II Establishing Your Own QuickBooks Business
86 Part II Establishing Your Own QuickBooks Business
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and contact information for customers that did not have opening balances, is entered after the interview, when you set up your Customer and Job Lists. Vendors are people who supply the company with goods and services, such as of ce supplies or construction materials. If the company did not owe any money to vendors as of the start date, there is no need to enter opening balance information in the accounts payable account. There is no need to enter information about your vendors other than the balances owed to them during the interview, and you are not concerned with vendors to whom your company does not owe any money at this point. You can enter this information when you set up your Vendor Lists, as discussed in 15. You are also required to enter information as to the opening balances in the company s bank, credit card, loan, and asset accounts as of the start date. This section is a breeze if you have the right information at your ngertips and do not have to hunt for it during the interview. There are two ways to compile this information. One method is to gather all of the bank, credit card, and loan statements that include your start date. This method is a bit imprecise because the statements often do not show a day-to-day balance. Don t worry about this; you do want to use the statement balances rather than calling the nancial institutions for the exact bank or loan balances as of the start date. The reason for using the statement amounts, rather than accurate amounts for that date, is so that you can later reconcile your credit card and checking accounts using QuickBooks. The following is a checklist of information to have on hand re ecting information as of the company s start date when completing the account opening-balances section of the interview: Credit card statements Outstanding business loan balances Bank account statements re ecting start date balances Original cost of each asset owned by the business as of the start date Information as to the current fair market value of each business asset The amount of any depreciation taken for each asset (if you track this) Assets include anything of value owned by the company or owed to it. Accounts receivable is an asset account, which was dealt with in an earlier section of the interview. As 4 explained, assets are categorized as xed or current, depending on whether they are expected to be converted to cash by the company within a year of the reporting date. The value of the owner s interest in the company is the difference between its reported assets and liabilities. (Assets minus liabilities equal owner s equity.) When you add an asset account, information about the asset is recorded on the screen shown in Figure 5-12. Current assets are generally valued at an amount equal to either the cash balance of the account or the amount you expect to receive when they are converted to cash. For example, accounts receivable are valued at the amount
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5 Setting Up Your QuickBooks Company
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you are to receive in payment. Valuation of xed assets, however, can be tricky, even for seasoned accountants. Generally, xed assets are carried on the balance sheet at fair market value. There is a distinction to be made in valuing assets for which depreciation has not been tracked and assets for which it has been tracked.
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Figure 5-12: Use this screen to indicate an account name, an asset type (that is, xed or current), and a dollar value for each asset owned by the company.
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Fixed assets for which no depreciation has been taken should be valued at fair market value. For example, if your company owns a vehicle for which no depreciation has been taken, you might consider using the blue book value, which refers to a book that automobile dealers consult to determine the fair market value of a vehicle. Or you could check the going rate for similar vehicles. You can enter the fair market value of a xed asset as of the start date during the interview, or you can leave it blank at this point and enter it later. If, on the other hand, you have tracked depreciation for a xed asset, answer that you would like to set up depreciation accounts in the interview. QuickBooks will ask you to enter both the original cost of the asset and the value of the asset as of the start date in other words, the cost of the asset less any depreciation deductions taken.
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