I've been getting conflicting information online regarding receipts for transactions and what is necessary for saving in the event of an audit. I have read that bank statements suffice. However, I do enter journal entries for ...
  1. The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that su ... Read more

I use QuickBooks Online for majority of my clients. I have a new one who has a mortgage through his bank and wants me to get this into his chart of accounts so he can view the ...
  1. Unfortunately, QBO does not have an option to link a Bank Loan account, the way you can link a Bank Account or Credit Card Account. You can set up a long term l ... Read more

A few accountants of the clients I work for have me using Due to/Due from liability accounts we created to keep track of expenses paid by the owner and then reimbursed. I have another accountant having me ...
  1. Yes, your logic is correct. Due to/Due from are typically used when you want to maintain a payable/receivable relationship between the funds and transfer accoun ... Read more

If something was changed to a COG but really wasn't a direct expense for the sale, or vice-versa, does that impact anything on taxes? I get the importance of understanding it for management, pricing, and reporting purposes for just ...
  1. Hi there, for tax purposes there is no effect of moving items from COGS to Expense or vice versa, the net income (which is what is taxable) will remain the same ... Read more