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mrsstoll
October 17, 2023
Question

Help ... I have serious company issues

  • October 17, 2023
  • 1 reply
  • 0 views

I started a new job in September only to find out that it needed to have 10 years' worth of billing, accounts payable or receipts done in QuickBooks as the former secretary never got anything entered or it was entered incorrectly. Worse yet she set all of our employees up as vendors, so they get a 1099 and now I don't know how I am going to enter payroll.  Once I started entering the past items I ran into some problems.

 

1. My reports are not showing up right (ex: my unpaid bills report is showing the old bills as well as the new ones)

2. I haven't been able to reconcile my bank accounts because none of the amounts match up.

 

On top of all of this it is getting toward the end of the year and soon I will need to provide these employees with 1099's.

 

Can anyone help me get this mess straightened out. Any suggestions are greatly appreciated.

 

1 reply

AlcaeusF
AlcaeusF
October 17, 2023

Hi there, mrsstoll.

 

I'm here to help fix the issue you're having with your QuickBooks Desktop (QBDT) setup.

 

If the vendors are intended to be classified as employees, you will need to furnish W-2 forms instead of 1099s. To change the vendors to employees, you can refer to this article and proceed to Option 2 for further guidance: Change vendor, customer or employee name type.

 

Then, you can enter prior payroll to record the employees' historical payroll data. Here's how to do it:

 

  1. In QBDT, go to the Help menu at the top, then choose About QuickBooks.
  2. Press Ctrl + Alt + Y or Ctrl + Shift + Y to open the Setup YTD Amounts window.
  3. Press Next.
  4. Under When should YTD summaries affect accounts? section, manually enter the specific year/date period. 
  5. Tap Next.
  6. In the Earliest QuickBooks payroll date section, enter the date you'll begin using QuickBooks payroll to create paychecks. Then, Next. 
  7. To enter a YTD summary for an employee, click the Enter Summary button after selecting the employee's name.
  8. Once done, click OK and tap Leave. 

 

If the company made historical tax payments outside QBDT, you can refer to this article on how to record them manually: Enter historical tax payments in Desktop payroll.

 

For your reconciliation concern, you'll need to manually review each of the transactions and correct them, especially the dates. This way, you'll be able to match, categorize, and reconcile them. Check out these articles for more information:

 

 

I also suggest consulting an accountant to make sure the recording is accurate.

 

Please let me know if you have follow-up questions about this or anything else. I'm more than willing to assist. Take care.

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