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Jade159012
July 18, 2023
Question

Do bills count toward taxes?

  • July 18, 2023
  • 2 replies
  • 0 views

I do my husbands books, I input bills as we receive them, but usually when he goes to pay he’ll use the company debit. Receipts rarely show which “bill numbers” he paid for at each transaction. So, I have been marking these payments in as expenses. I understand that this is a double entry, but could I just delete the “bills” since they are always accounted for as expenses? He also sometimes uses the card to pay upfront at the same places he runs up bills. I’m not worried about tracking if the bills are all paid as he pays in full when the month end statement arrives. 

Should I be deleting the bill entry’s? Should I be going through and trying to match the expenses to the bills? (Not sure how I’d even do this) and is this harmful for taxes or are unpaid bills not counted?

 

 

Thanks in advance folks, I’m a stressed out not-bookkeeping savvy wife trying to learn what’s what. 

2 replies

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JamesM4
July 18, 2023

Hello Jade159012,

 

Thanks for contacting us in the Community. QuickBooks is an easy-to-navigate program that helps you to manage your accounting with ease. I'll be glad to share more info so you're on the right track with your work. 

 

In order to get an accurate answer on whether to delete bill entries, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. Otherwise, I'm here to help you navigate the program by showing you how to delete a bill, matching transactions, and using tax codes in QuickBooks. 

 

Let me know if this info helps. I'm here to steer you in the right direction.

A
AdminAndrea
July 19, 2023

Kudos to you for giving the bookkeeping a go when you aren't familiar with the ins and outs.  

 

If you are entering a Bill and capturing the tax at that time, yes, that is being counted towards taxes.  Every transaction entered, if it has taxes allocated, will be counted. By entering the Bill, then entering the Expense/payment and deleing the Bill you are doing twice the amount of work and can make duplicate entries which you'll have to delete later or you won't have an accurate capture of your P+L.  

 

If you enter a couple of Bills (say from a hardware store), when your husband makes the payment you can enter a payment to that company and select the Bills that he is paying using that method of payment.  This will negate your need to enter the Expense using his company debit card.  

 

For example: You have Total Bills  $150.00 for the Supplier and you have a Payment made by Debit $135.00 but you don't know which Bills he has paid.

+New 

Suppliers   

Pay Bills

 -- This will open a window for you that outlines all the open Bills.  You can filter this by Supplier and it will show you all the Bills for that supplier that need to be paid.  You should be able to determine which Bills he paid based on date (most companies apply payment to the oldest Bill first unless instructed otherwise).  

You can then enter the payment amount for each Bill that was paid.  Then Save.  This will ensure that your bank account will be reflected with the payment and the Bills are paid so your Supplier file is up to date.  

 

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