QuickBooks is accounting software that allows you to manage and organize a wide range of accounting activities such as bookkeeping, creating financial statements, and much more.
In QuickBooks, accounts can list into different categories according to their nature, i.e., assets, liabilities, income, and expenses. Coming across a situation when you’d like to investigate the information regarding a line item in QuickBooks, you will have to set up a separate account for that line item. Similarly, when you need to report financial information on a tax return, you must create an account to collect and report the required data.
Account creation: How to create a new account?
In QuickBooks, if you want an expense account to assign to a tax line, you will have to create a new account. To do so, first, open the menu called “Chart of Accounts” and then click on the button labeled “Account.” After that, click on the “New” button. You will now open a menu where you can choose between multiple account types. Choose the “Expense” account option and then click on the button labeled “Continue.” You’ll prompt to enter the name that You will use to identify your new account. You’ll then give the option to make this account either a sub-account or the main narrative. After checking the appropriate box, you can click on the button labeled “Patent Account.” With this, you will have created the expense account that you will later assign to the tax line.
Add additional information to the account
Once you complete the creation of the expense account, you’ll be able to record information relevant to your account. For example, suppose you just created an expense account related to a particular utility. In that case, you can mention the name of the utility or the service provider, your unique customer number, and any specific dates such as the billing dates. Different drop-down menus are available to allow you to enter and sort the information relevant to the expense account you just created.
Assigning the expense account to a tax lien
To do this, you first select the “Tax Line Mapping” menu in QuickBooks. Here, you’ll be able to see a drop-down menu that will include multiple tax lines, allowing you to select and choose the one that you think is relevant to the expense account you created. Once you’ve chosen the tax line, you’ll give a list of expense accounts to choose from. Here, you can select the version you want to assign to the tax line.
Alternatively, you might want to assign a preexisting account to a tax lien
In QuickBooks, if you want to assign an expense account that exists beforehand, you first need to go to the “Chart of Accounts” menu. Once there, you can right-click the specific expense account you want to assign to a tax lien. Once you see the right-click menu, choose the edit account option. Next, select the opportunity that allows you to change the “Tax Line Mapping” data. The drop-down menus you will see next can select the relevant tax line and tax form.
What your accountant can do for you
Suppose you have given your accountant or bookkeeper access to the data you enter QuickBooks. In that case, the best possible decision is to let them handle the assignment of any expense account to the respective tax liens—QuickBooks help ensure the accuracy and consistency of bookkeeping and other activities. If you think you must adjust any expense accounts and their relevant tax line, then it is recommended that you consult your accountant before making any changes to the mapping in QuickBooks. QuickBooks prevents any hassle in the future where you might need to backtrack through incorrectly entered or calculated data.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.