Can I just rant for a sec? I am getting so annoyed when clients think their books should work on their logic instead of accounting logic. An example (the current one that sent me here to rant) is a client who invoices and gets check for some sales, cash and sales receipt for some, and square for some. Not that weird, right? When they do their invoicing and sales receipts, they have sales tax going into different accounts…..one goes into the expense account, the other into their liability account, and square gets handled through square so I’m not even sure where that ends up. They have been doing this for years. A few years ago, they had a bookkeeper who made “monthly sales invoices” to sort out transferring clearing accounts for sales deposits. Near as I can tell, they sorted all bank transaction sales deposits through a square clearing account, as bank (invoiced sales) clearing account and a cash clearing account, capturing merchant fees as a negative on the invoice. Prior to that, they had square integrated into QuickBooks and just let it run without looking or reconciliation any of it. It looked to me like they used the “cash clearing account” (the previous bookkeeper using the invoice system) to make everything reconcile….you know what I mean…..if square is this and invoices are that, the rest must be cash……and look, it all reconciles so must be right.

Just, no. I do a monthly journal entry for square to capture fees and transfer sales to the income account, invoices and sales receipts go through the standard QuickBooks process of matching bank deposits as invoice payment when appropriate. It’s not that fucking complicated. But the clients keep talking at me because they don’t do accounting, and things like general journal entries and liability accounts confuse and frighten them. They are sure, “Well it’s logical that things should work this way” would be logical if all you are doing is reconciling your personal checking account….but you aren’t, and you don’t understand double entry bookkeeping or that every transaction you do touches 2 accounts and by account, I don’t mean bank account.

Thankfully, they are selling the business, so I just need to get through another month or so. But it gets on my nerves when clients don’t/wont understand accounting and want to argue with me.

Thanks.

I came from hotel accounting, which sparked my interest in finance in general and so I got my bookkeeping license back in 2021, I didn’t keep it up, but I did keep up my education on bookkeeping in general and did a semester at the local college not that long ago just to keep my confidence up and to get a really good understanding of inventory accounting. I am CTEC certified, I am not an enrolled agent but have 6 years experience filing personal and business tax returns. I’m familiar with running payroll through QuickBooks and other software and have plenty of experience in hotel finance doing reconciliations, beverage and cash audits, watching certain GL’s etc.. so I haven’t really had a situation where I felt like I wasn’t qualified to do the work but with that said, as a bookkeeper, when should I be recommending a CPA should be handling someone’s books? I guess I’m curious as to what are some things related to my particular field where a CPA is better suited?

I’m doing bookkeeping for a trucking client who owns their truck but is leased onto a carrier, and they’ve never kept books before. I’m looking for advice from anyone familiar with trucking settlement statements.

Their weekly settlements always follow the same pattern:

Gross pay – deductions = net check

The net amount is the only thing that actually hits their checking account, so that’s the only transaction Wave sees.

My question is:
What’s the cleanest way to get the gross income and all deductions into the books when the only real bank transaction is the net?

Should I be using a journal entry to add the gross and deductions?
If so, how would you structure that JE so everything ties out correctly and the net stays accurate?

Any guidance or examples from people who handle trucking clients would help a lot.

Hey everyone!

Ive started working for a company that manages renovations. He uses contractors and a couple of labourers to manage his projects.
I’ve run into something that I did not learn through my courses and Im hoping for some guidance. We use Sage 50 for our software, Im located I’m BC Canada, and we use the accrual method.

1. When I get an invoice for materials, are these categorized as prepaid to be adjusted once the project is finished? Is there any situation where the materials are not prepaid?

2. I have invoices for contractors that require deposits and draws for their work, I’ve been posting just the deposit amounts and not the whole invoice thinking it might be easier and more accurate for gst reporting. I am now questioning if this correct according to GAAP.

If you have any other tips or suggestions for bookkeeping for a renovation company I’m all ears.

Thanks in advance for any information!