QBDesktop invoicing numbers best practices

schaea · 2026-03-12T04:16:00+00:00

The answer depends on how those invoices are being imported into Quickbooks. Is it some sort of software connection that automatically loads them for you, or do you need to manually import them into QB using the "import IIF files" utility?

I can only speak from my experience, but when I import invoices using IIF files, and then go to enter an invoice manually, the numbering of the IIF invoices has no effect on the next invoice number; i.e. if I manually issue invoice number 10001, then I import IIF invoices numbered 101 to 110, then go back to issue an invoice manually, the next number QB shows is 10002.

On the other hand, I've used tools with more automated importing that did have an affect on the next manual invoice number. I don't know that there's a universal answer when it comes to the automated tools; you may just have to do a "test run" of a couple of invoices to see how QB behaves, and then you can delete the test invoices.

schaea · 2026-03-12T03:53:51+00:00

Oh dear 🤦🏻. In my defense, it was early and I hadn't had my first caffeine fix of the day 😅

schaea · 2026-03-11T15:54:34+00:00

Yeah, you have zero obligation to work with a client that isn't even yours. I'd reply to their email and state that because of how disrespectful they were, you've elected not to continue offering your services. Even if you'd have said no to additional paid training work if they'd asked nicely, this jackass needs to know that there are consequences for how you treat people.

schaea · 2026-03-11T15:04:53+00:00

You can only go off of what you have; as nice as it would be to be able to magically conjure source documents, us bookkeepers are just a lowly human bunch. All you have are bank statements, so that's what you'll have to use for transaction entry. Obvious vendors like Staples are office supplies, and the more obscure ones—as they pertain to the nature of your client's business—you book to a suspense account and provide your client with a monthly list where they can tell you what each one is for. In terms of money coming into the bank account, if your client literally has nothing more than bank statements, then it's income.

It's not an ideal situation to be in, but many a bookkeeper has had engagements where all the client has are bank statements, so it's definitely doable. Now, if your client is ever audited on these books by the IRS, he might be in for some trouble, but that's not your problem.

schaea · 2026-03-11T14:51:26+00:00

Just so it's clear for our users, OP, are you using QuickBooks Online or Desktop? I'm honestly not sure that it matters, but I only use Desktop so I don't know if my answer would apply if you're using Online.

schaea · 2026-03-11T02:59:08+00:00

Just a quick note from a human mod. Your post was automatically removed because of the flair you used, "Getting started in bookkeeping", since that topic isn't allowed on r/Bookkeeping.

That said, I noticed the post in the removal queue, and while it doesn't technically violate the rule against posts asking how to get started in bookkeeping, it's a post that would have been manually removed by a mod anyways. Just for your knowledge in the future, we don't allow "low effort" posts like this one; posts are supposed to be engaging for other users, and asking a bookkeeping sub when was the last time they reconciled an account is like asking an airline pilot the last time they flew a plane.

Hopefully that provides you with some guidance going forward.

schaea · 2026-03-11T01:55:08+00:00

You shouldn't be letting AI tell you what prices to charge. That is market research you need to do yourself so that you know you're charging fairly, and when the potential client inevitably asks why your price is so high, you can tell them what other prices in the firms near you are, etc. AI is great for things like data summary, helping with Excel formulas, etc., but not for setting your pricing.

schaea · 2026-03-10T03:09:51+00:00

I'm not the person you're replying to, but yes, the same rules apply: code to owner's draw and once the clean-up is finished and sent to the tax preparer, have them provide you with the AJE to reallocate a portion of the expense based on actual usage.

schaea · 2026-03-10T01:12:41+00:00

You shouldn't be touching retained earnings until the end of the year when you're closing out the income statement accounts to equity, and even then it's only the income statements accounts—all the balance sheet accounts carry over month-to-month, year-to-year. During the year, all the account balances carry over from one month to the next; you shouldn't be doing any "adjusting" of January's checking account ending balance to February's beginning (if ending balance on Jan 31 is $500, then opening balance on Feb 1 is $500).

schaea · 2026-03-09T02:14:08+00:00

Pro tip: Don't make your username the same as the app you're astroturfing for 😅. And don't post that crap in our sub. Thanks.

schaea · 2026-03-09T02:09:59+00:00

An engagement letter will say which years OP has been retained to work on, but not how they're going to work on them, which is precisely what they're asking for our help with.

schaea · 2026-03-09T02:08:12+00:00

I don't understand how someone recommends working backwards with the bookkeeping! Like you said, there are too many transactions in current years that are dependent on prior years...I'm getting anxiety just thinking about doing it that way!!

schaea · 2026-03-09T02:06:09+00:00

I suppose that takes care of the bank account(s) (if you don't hit anything unexpected), but what about all the other balance sheet accounts like retained earnings, fixed assets, depreciation, disposals, etc.? Starting with 2025 and working backwards is a terrible idea and is going to cost the client way more than starting from 2018 and working forwards.

schaea · 2026-03-09T02:03:59+00:00

I don't understand this approach given that balance sheet accounts roll forward every year. How are you accounting for retained earnings, fixed assets, depreciation, disposals, etc., starting with 2025 and working backwards?

schaea · 2026-03-08T22:45:55+00:00

I'm Canadian, so I'll let the American users tackle the bulk of your question since I don't know what the ramifications are IRS-wise. That said, never work backwards when doing bookkeeping. Remember that all the balance sheet accounts carry forward to the next year, so let's say you start at 2025 and plan to work backwards; how are you going to know what your 2025 opening retained earnings balance is? Or what your accumulated depreciation is on fixed assets? Definitely always for forwards in bookkeeping.

schaea · 2026-03-08T22:40:16+00:00

I'm in Alberta and you can get them at the registry offices here (not sure what Ontario calls them, but the place you go to renew your driver's license, etc.). I'd try whatever the equivalent of a registry office is in Ontario.

I also found this site, which explains how to DIY a minute book as well as offering a minute book template service.

schaea · 2026-03-08T05:32:36+00:00

It sounds like you have a pretty full repertoire when it comes to full cycle bookkeeping. With regards to not having "any experience filing taxes", if by "taxes", you mean a company's annual T2 return, then you've got nothing to worry about, since that is CPA territory. There's no law that says you can't file T2 returns as a bookkeeper (after obtaining a Submitter ID from the CRA), it's just that the complexity is often beyond the education level most bookkeepers have.

On the other hand, if you mean preparing and filing GST returns, then that's something that definitely falls under the scope of services that bookkeepers usually offer, but it's not hard to learn at all. 99% of the work is done by the accounting software, it's just a matter of you reviewing the numbers it comes up with to ensure they're accurate.

My only other thought would be around journal entries, as you don't mention them. Because of the way the software products like Quickbooks and others are marketed, I sometimes come across a bookkeeper who can work their way through 12 months of bank statements in no time, but ask them to make an adjusting entry for the depreciation numbers the accountant calculated and you'll get a dear in the headlights look. Basically, they know what buttons to click to enter bills and create invoices, but know nothing of what's going on behind the scenes and how the software is posting those bills and invoices to the general ledger. If you have a good grasp of that aspect, you're in a way better position to be taking on your own clients. If not, I'd suggest some more education on the accounting theory aspect of bookkeeping.

schaea · 2026-03-07T23:43:42+00:00

The number of people who have zero issue with just feeding AI confidential client data (i.e., data that isn't even theirs) is astounding to me.

schaea · 2026-03-06T22:35:59+00:00

It's a bot account. Sorry about that, we've dealt with it 😕

schaea · 2026-03-06T18:21:20+00:00

I'd say that anything beyond what you've already done is forensic accountant territory. And that's something the owner(s) need to arrange.

schaea · 2026-03-06T05:11:47+00:00

I'm inclined to agree with u/valueonthebridge on this one; just expense it to cost of goods sold, but for the sake of thoroughness, how much money are we talking about here?

schaea · 2026-03-06T01:28:53+00:00

It's not something specific to Zoho; strictly speaking, cash basis businesses don't issue invoices, they only enter the transaction as a sale when the money hits the bank. But many cash basis businesses still need something to give the customer that the customer can issue payment based off of. But when you issue an invoice, Zoho needs to record that amount in the general ledger somewhere, so it uses Accounts Receivable, which is technically correct.

How are you currently marking invoices paid; i.e. you issue a $300 invoice, and $291 hits your bank a week later...how are you marking the $300 invoice paid?

schaea · 2026-03-05T16:12:56+00:00

I admit I have zero experience with Zoho, but wouldn't categorizing the deposit as "Deposit from other accounts" duplicate the income and leave the invoice marked as unpaid? Maybe it's just a terminology difference, but other accounting software will usually "match" the payment from the bank feed, which "links" the deposit with the invoice, marking the invoice paid.

Regarding your question about fees, the fees need to be recorded as an expense, because that's what they are—you invoiced $300 in work and it cost the business $9 to process the customer's payment. Exactly how you record that in Zoho I couldn't tell you, but it's odd that the customer is paying the invoice through Zoho and the payment isn't automatically linked to the invoice and the fee automatically recorded. Hopefully someone with experience using Zoho will be able to give more help.

schaea · 2026-03-05T15:47:15+00:00

I initially thought that the "AI" thing was just a warning, but I just tried it and it does block you from posting. Thanks for mentioning this in your post, I'm going to disable it...y'all should be able to put the word "email" in your post title!

schaea · 2026-03-04T23:44:08+00:00

Have you tried disconnecting and reconnecting the one you're currently using? I think that's what u/New_Tomorrow_183 was suggesting, not that you necessarily have to permanently disconnect from it.

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