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Subject Author Date
Odd Business Type mikelaskey 09-27-2007
Posted by mikelaskey on September 27, 2007, 1:42 pm
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>
>
>
>
>
>
> > Hi,
>
> > I'm relatively new to QB, and the type of "business" I have is a bit
> > unique.
>
> > Basically, it's a student government that has a lot of faculty
> > associations underneath it. Once per year, we get a big payment that
> > then needs to be divided up among all of the associations by a
> > particular formula. After that, the faculty associations can
> > requisition cheques against that amount, and make deposits if they
> > have any revenue.
>
> > However, we only have one bank account. I'm wondering what the best
> > way to structure this in QB would be, so that it will be relatively
> > easy to see the state of each faculty association at a glance. Should
> > I create an income account for each association and then write cheques
> > as they're needed? And if so, how should I handle incoming money
> > (should I create and invoice for a dummy "product" associated with the
> > group's income account each time they have something new to deposit)?
>
> > We also have vendors and inventory, etc., unrelated to the above
> > problem, but that I can handle normally. I'm just curious as to what
> > the best way to handle the above dilemma would be.
>
> With all due respect to Joanne who has made some valid sugestions, I submit
> that this is indeed possible in QuickBooks but is probably beyond the scope
> of a Newsgroup discussion. In any event the exact solution would probably
> require a lot more information from you. You may want to research how QB
> handles "trust accounts" as part of your solution.
>
>
>
>
>
> > Thanks for your help!
> > Mike- Hide quoted text -
>
> - Show quoted text -- Hide quoted text -
>
> - Show quoted text -

I looked into using separate classes as Joanne suggested, and this
seems to be exactly what I'm looking for!

There are still just a couple of things I'd like to clarify. First,
Joanne suggested using one line (on the deposit entry) per association
when we distribute their initial amounts. Unfortunately, we receive
one big lump sum, and have to divide it up ourselves. Is there any
way to receive a large lump sum payment, and then distribute it later
among classes? If not, I can just wait to record the deposit in QB
until we know exactly how much will go to each class.

Second, is there a particular way you suggest I should set up my
income and expense accounts? Should I have a separate income and
expense account for each association, or separate expense accounts for
types of expenditures rather than associations (i.e. phone bills,
office supplies, etc. - general accounts to which all associations'
office supply purchases will go)? Or does it really just come down to
preference?

I'm a bit new to QB, and I'm trying to do something off the beaten
path, so I really do appreciate all your help!


Posted by Joanne on September 27, 2007, 2:20 pm
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> I looked into using separate classes as Joanne suggested, and this
> seems to be exactly what I'm looking for!
>
> There are still just a couple of things I'd like to clarify. First,
> Joanne suggested using one line (on the deposit entry) per association
> when we distribute their initial amounts. Unfortunately, we receive
> one big lump sum, and have to divide it up ourselves. Is there any
> way to receive a large lump sum payment, and then distribute it later
> among classes? If not, I can just wait to record the deposit in QB
> until we know exactly how much will go to each class.


You can omit the split when recording the deposit and change the entry when
you have the detail. This is the beauty and the danger of QB.


>
> Second, is there a particular way you suggest I should set up my
> income and expense accounts? Should I have a separate income and
> expense account for each association,


No; this is what "classes" does. One income account, many classes.


or separate expense accounts for
> types of expenditures rather than associations (i.e. phone bills,
> office supplies, etc. - general accounts to which all associations'
> office supply purchases will go)? Or does it really just come down to
> preference?

One expense account per expense category such as "office supplies",
"telephone", and many classes. You'll have to see a P&L by Class to
appreciate the reason why.


>
> I'm a bit new to QB, and I'm trying to do something off the beaten
> path, so I really do appreciate all your help!

This is not unique. The smartest thing you could do in the set-up phase of
QB is to have someone who is knowledgeable in both QB and accounting
involved. This is the critical time when you can set it up to result in a
mess with which you will wrestle forever or set it up to run like a dream
and enable it to give you the clean, correct reports you will ultimately
want. The cost for this initial consultation should not be high and is an
investment. Unlike the expectation the ads would have you believe, QB is
only as good as the user's depth of understanding of accounting and
understanding of the software and it's potential for application.

--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

http://www.jobird.com
Wonders of Western Washington Video collection:
http://www.jobird.com/private/wondersindex.htm




Posted by Allan Martin on September 27, 2007, 5:20 pm
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>
>> I looked into using separate classes as Joanne suggested, and this
>> seems to be exactly what I'm looking for!
>>
>> There are still just a couple of things I'd like to clarify. First,
>> Joanne suggested using one line (on the deposit entry) per association
>> when we distribute their initial amounts. Unfortunately, we receive
>> one big lump sum, and have to divide it up ourselves. Is there any
>> way to receive a large lump sum payment, and then distribute it later
>> among classes? If not, I can just wait to record the deposit in QB
>> until we know exactly how much will go to each class.
>
>
> You can omit the split when recording the deposit and change the entry
> when you have the detail. This is the beauty and the danger of QB.
>
>
>>
>> Second, is there a particular way you suggest I should set up my
>> income and expense accounts? Should I have a separate income and
>> expense account for each association,
>
>
> No; this is what "classes" does. One income account, many classes.
>
>
> or separate expense accounts for
>> types of expenditures rather than associations (i.e. phone bills,
>> office supplies, etc. - general accounts to which all associations'
>> office supply purchases will go)? Or does it really just come down to
>> preference?
>
> One expense account per expense category such as "office supplies",
> "telephone", and many classes. You'll have to see a P&L by Class to
> appreciate the reason why.
>
>
>>
>> I'm a bit new to QB, and I'm trying to do something off the beaten
>> path, so I really do appreciate all your help!
>
> This is not unique. The smartest thing you could do in the set-up phase
> of QB is to have someone who is knowledgeable in both QB and accounting
> involved. This is the critical time when you can set it up to result in a
> mess with which you will wrestle forever or set it up to run like a dream
> and enable it to give you the clean, correct reports you will ultimately
> want. The cost for this initial consultation should not be high and is an
> investment. Unlike the expectation the ads would have you believe, QB is
> only as good as the user's depth of understanding of accounting and
> understanding of the software and it's potential for application.

This is why you are a good writer and I'm not. "Beyond the scope of a
newsgroup discussion", is the most I'm willing to say. In any event 99.999%
of all QB users are either unable or unwilling to pay a consulting fee for
help so why bother to bring it up?



>
> --
> Sincerely,
> Joanne
>
> If it's right for you, then it's right, . . . . . for you!!!
>
> http://www.jobird.com
> Wonders of Western Washington Video collection:
> http://www.jobird.com/private/wondersindex.htm
>
>
>



Posted by Joanne on September 28, 2007, 12:09 pm
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>> This is not unique. The smartest thing you could do in the set-up phase
>> of QB is to have someone who is knowledgeable in both QB and accounting
>> involved. This is the critical time when you can set it up to result in
>> a mess with which you will wrestle forever or set it up to run like a
>> dream and enable it to give you the clean, correct reports you will
>> ultimately want. The cost for this initial consultation should not be
>> high and is an investment. Unlike the expectation the ads would have you
>> believe, QB is only as good as the user's depth of understanding of
>> accounting and understanding of the software and it's potential for
>> application.
>
> This is why you are a good writer and I'm not. "Beyond the scope of a
> newsgroup discussion", is the most I'm willing to say. In any event
> 99.999% of all QB users are either unable or unwilling to pay a consulting
> fee for help so why bother to bring it up?

They had the money to buy the software; the consultation makes the
difference in whether they spent that money wisely or not.

I always think of my violin when I read a post by someone who is struggling
with QB out of a limited understanding of accounting and the power of the
software. I spent the money on the instrument and didn't have a clue of the
basics. Maybe I hoped I would just figure it out since I only wanted it for
my own enjoyment and Vanessa Mae makes it look easy. But there isn't a hope
of figuring out a violin if you don't know how to correctly hold it or the
bow. There are really basic things that, for me, a demonstration by a
teacher changed my use from a frustrated quitter to someone who can make an
occasional sweet sound occur. The time for the basics on the violin is
immediately; bad habits are more difficult to overcome because they begin to
feel comfortable but those bad habits limit the next level of achievement.

I'm not sure I agree with the theory that almost all QB users can't or won't
seek professional assistance. But if it is true, suggesting it and
explaining the benefits may be the seed for such a decision. On
rec.pets.birds there are many new posters who are looking for a diagnosis
and treatment for a sick bird. The regular posters always insist that the
bird be taken to an avian vet; there is no other option; it's a broken
record. Any newsgroup can spot hopelessness beyond the scope of the group's
help. I understand why QB advertises the product as the answer for everyone
to "do it yourself." It's all about sales. More discussion here about
getting professional help may be read by those considering the product
before the purchase.

--
Sincerely,
Joanne

If it's right for you, then it's right, . . . . . for you!!!

http://www.jobird.com
Wonders of Western Washington Video collection:
http://www.jobird.com/private/wondersindex.htm




Posted by John on September 29, 2007, 9:24 am
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Very, very well put. Your explanations are really good and helpful.

However, there are those who apparently have determined NOT to be helpful.
Please ignore them.

John

>
>>> This is not unique. The smartest thing you could do in the set-up phase
>>> of QB is to have someone who is knowledgeable in both QB and accounting
>>> involved. This is the critical time when you can set it up to result in
>>> a mess with which you will wrestle forever or set it up to run like a
>>> dream and enable it to give you the clean, correct reports you will
>>> ultimately want. The cost for this initial consultation should not be
>>> high and is an investment. Unlike the expectation the ads would have
>>> you believe, QB is only as good as the user's depth of understanding of
>>> accounting and understanding of the software and it's potential for
>>> application.
>>
>> This is why you are a good writer and I'm not. "Beyond the scope of a
>> newsgroup discussion", is the most I'm willing to say. In any event
>> 99.999% of all QB users are either unable or unwilling to pay a
>> consulting fee for help so why bother to bring it up?
>
> They had the money to buy the software; the consultation makes the
> difference in whether they spent that money wisely or not.
>
> I always think of my violin when I read a post by someone who is
> struggling with QB out of a limited understanding of accounting and the
> power of the software. I spent the money on the instrument and didn't
> have a clue of the basics. Maybe I hoped I would just figure it out since
> I only wanted it for my own enjoyment and Vanessa Mae makes it look easy.
> But there isn't a hope of figuring out a violin if you don't know how to
> correctly hold it or the bow. There are really basic things that, for me,
> a demonstration by a teacher changed my use from a frustrated quitter to
> someone who can make an occasional sweet sound occur. The time for the
> basics on the violin is immediately; bad habits are more difficult to
> overcome because they begin to feel comfortable but those bad habits limit
> the next level of achievement.
>
> I'm not sure I agree with the theory that almost all QB users can't or
> won't seek professional assistance. But if it is true, suggesting it and
> explaining the benefits may be the seed for such a decision. On
> rec.pets.birds there are many new posters who are looking for a diagnosis
> and treatment for a sick bird. The regular posters always insist that the
> bird be taken to an avian vet; there is no other option; it's a broken
> record. Any newsgroup can spot hopelessness beyond the scope of the
> group's help. I understand why QB advertises the product as the answer
> for everyone to "do it yourself." It's all about sales. More discussion
> here about getting professional help may be read by those considering the
> product before the purchase.
>
> --
> Sincerely,
> Joanne
>
> If it's right for you, then it's right, . . . . . for you!!!
>
> http://www.jobird.com
> Wonders of Western Washington Video collection:
> http://www.jobird.com/private/wondersindex.htm
>
>
>


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