Even Dollar Accounting Savings With QuickBooks

Even Dollar Accounting

Here are the fastest, easiest & most efficient ways to get big Even Dollar Accounting savings. A 1961 U.S. Joint Financial Management Improvement Program report discussed applying it in 1961. Also, it discussed $10 rounding. Even Dollar entries are not for bank or credit card feeds. They post each entry with pennies. However, use them to enter QuickBooks entries manually. Drop pennies for 49 cents or less. But, round up 50 cents or more. Our money lost more than 86% in value since Warren Buffet began managing Berkshire Hathaway. Therefore, pennies are near worthless. You waste about 50 cents each time you enter them. Also, pennies never go on income tax returns.

Even Dollar Accounting Savings

Few QuickBooks small business entries are more than $999.99. A QuickBooks Desktop Edit, Preference, Accounting (decimal) helps with Even Dollar Accounting savings:

  1. Numbers like 123.56 take 7 keystrokes (count decimal and Enter) vs 124 (4 keystrokes) – save 43%
  2. 12.35 vs 12 – save 50%
  3. 1.23 vs 1 – save 60%

Speeding Up QuickBooks Bank Reconciliations

Speeding up QuickBooks works with Even Dollar Accounting savings. Therefore, click Reconciled if differences are less than $50. That is too small to find. Increase this to $100+ based on company size. Therefore, it is easier to find big differences than small ones. A QuickBooks Preference can use a large expense account for differences. But I prefer using Reconciliation Differences. It lets you see and move small amounts. For more on Speeding up QuickBooks, Speeding up QuickBooks has a free 13 page download. Here is what Scott Wilder (#5 of 10 Amazing QuickBooks Endorsements) wrote after my QuickBooks “Ask the Expert” session: “Thank you Mike!!!!! Great job, can we clone you??? THANKS so much for being a stellar expert. You were awesome. You are the only expert that answered ALL questions. We took your advice and will add your error page. We will use your other web content later.

 

Scott Wilder, former QuickBooks Community Manager, QuickBooks endorsements, Even DOllar Accounting

Scott Wilder, former QuickBooks Community Group Manager, About Speeding up QuickBooks with Even Dollar Accounting

More Even Dollar Accounting Savings

  1. Work from bank statements, not checkbooks. Outstanding checks and deposits tend to even out over time for Even Dollar Accounting savings.
  2. Enter total monthly bank statement deposits as a month-end sales deposit (split non-sales amounts).
  3. Add many entries, like ATM withdrawals, on bank statements. Therefore, enter only a total.
  4. Do not post to accounts with the most entries (except Sales). Reconciled differences catch this and other differences.
  5. Limit extra bank and credit card accounts. Otherwise, you substantially increase accounting costs.
  6. Get $100 and a credit card that pays you to use it, for the fastest, easiest and most accurate QuickBooks entries.
  7. CPAs certifying financial statements usually ignore differences of less than .5% of sales as immaterial. Therefore, combine small accounts.
  8. Also, combine even dollar financial statements with all these, to focus on accounts with large balances.

Even Dollar Tax Savings

Even Dollar Accounting does not cut taxes. It only save accounting time. IRS un-officially approves it by having even dollar income tax returns. In many years of heavy IRS dealings, with 20 years of even dollar work, I never heard of IRS making small adjustments. In conclusion, this saves time, so you have more money for taxes and everything else you want.

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Fastest, easiest, accurate, low-cost QuickBooks! Intuit - QuickBooks CEO, "You're fantastic Mike! Absolutely fantastic!" Tax fighting CPA.

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