*These questions have to be answered as you are a dental student. Thanks!* Why Q
ID: 217531 • Letter: #
Question
*These questions have to be answered as you are a dental student. Thanks!*
Why QuickBooks in the first place? Remember this Everyone needs to record their financial transactions in some way and archive them for future use 1. Why use QBs in the first place? 2. How to order the educational version 3. Separating business from personal files 4. Establishing an initial "company s. Keeping the accounts current going forward 6. Using QBs while in dental school 7. Basic skills to be acquired Income sources Expense transactions Savings & investments Bills to be paid It can be done in one of two formats 9 Hard copy e Electronic (digital) QuickBooks, the financial software from Intuit., nc., is the current electronic gold standard for individuals and small businesses e Mint.com and other apps have significant limitations 4 Ordering QuickBooks Maintaining separate files » Just as maintaining separate business and QuickBooks Pro 2017 can be purchased retail for around $300; for $190 on Amazon.com; and directly from Intuit Educational Division for $120 personal checking accounts and credit card accounts is good business strategy, so too is maintaining separate QuickBooks company files > You can create 999 different files in QBs Business (company) account, e.g. Midwest Dental , Your contact is: education@intuit.com and the educational sales rep is Lisa Schwartz Becoming proficient using QuickBooks software may be one of the most valuable skills you take from dental school Personal (company) account, e.g. Michelle Logan The account descriptions (chart of accounts) differ between personal and business files Personal and business transactions are not comingled and are tracked in the appropriate file (or company)Explanation / Answer
1] Personal and business files should be kept separate so that the expenses for the two can be categorised and access to the two will become easier.
The business expenses are different from personal ones because in business expenses the money involved is much more and falls under different headings. There are some expenses which cannot be delayed and have to be furbished on time.
Personal expenses can be managed by cutting down on some comodities and managing others.
For business expenses , all the transactions should be kept under a 'Chart of Accounts' .
Separate headings should be alloted to the account types according to the category under which they fall.
For example, * bank accounts
* income [profit and loss statement]
* expenses [ profit and loss statement]
* assets [ balance sheets]
* liability [ balance sheet]
Sub-accounts for each category can be created for easier accessibility , like for expenses, the categories can be as- wages, electric bills, rent for office space etc.
Likewise, for for personal expenses, the sub headings for expenses could be as -- grocery, gasoline bill, electric and telephone bills , tuition fee [if there are school going kids in the family] , vacations etc.
2] Quickbook accounts can be updated on a daily, monthly or yearly basis. Of the above three, it is the easiest to keep the accounts updated on a daily basis. The advantages are--
* it is less time consuming as the bills and payment are fresh in the mind and can be updated quickly
* the amounts involved are generally small so the calculations are easier.
* if updated daily, one is aware of the expenses, income, dues etc and can plan the future [weekly or monthly] expenses better.
* at the end of the month or the year, the finances are clear and ready for instant review, making it less tedious and time taking .
3] [a] Bank -- Sub headings
* Outstanding loan
* Interest to be paid
* Current Account status
* Fixed deposits , if any
[b] Expenses- Sub-headings
* payment to staff
* electric bill
* rent for clinic space
* chemicals and medicines
[c] Income -- Sub-heading
* bill from patients
* interest from fixed deposites or other bank deposites
[d] Assets-- Sub-heading
* Bank deposites
* clinical instruments and gadgets used in the clinic
[d] Liability -- Sub heading
* Bank loan
* outstanding loans
* wages to clinical staff.
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