Classifying Transactions
On a weekly basis, your transactions that come through the automatic bank feed connected to Quickbooks Online will be categorized into the appropriate category. These categories make up your Chart of Accounts and reflect the categories that you will use in reporting your numbers to the IRS.
At the beginning, you will need to answer questions about what certain transactions are in order to get them classified correctly. However, as time goes on and I become more acquainted with your business, less and less of your time will be required.
Monthly Reports
The two monthly reports you will receive are the Balance Sheet and the Profit/Loss report (or Income Statement.) The Balance Sheet tells you the amounts in each of your accounts as of the last day of that month, how much equity you have in the business, and your running total of Net Income for the year. The Profit/Loss report tells you how much money came in that month, how much was spent on expenses, and what you ultimately profited that month.
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Blessings,
Valerie Johnston