16 Nov Ask the Expert – Subtotals on Balance Sheet
Ask the Expert – Subtotals on Balance Sheet
Q – I have been using QuickBooks for processing invoices and bills, and I am happy with the software. However, when I create a Balance Sheet, it looks odd. I have a heading that says “Accounts Receivable,” then a line that says “Accounts Receivable” with the dollar amount, then a subtotal that says “Total Accounts Receivable.” Why is it doing this and how can I change it?
A – Although there is not an automated way to handle this situation in QuickBooks. A possible work around will be described here. The same process will also work for other account types such as Accounts Payable or Credit Cards. The solution is as follows: Edit the existing Accounts Receivable account name to A/R to designate it as different from the one that will appear on the financial statements. Then create a new account called Accounts Receivable, but the account type should be Other Current Assets. At the end of the period, enter a journal entry to reclassify the balance. A customer name will be required, Misc. A/R works well. The first day of the next period the entry should be reversed and the two journal entries “linked” through the customer receive payment option.