QuickBooks Mastery for Small Business Success

Erica Northrup & Lee Davis
  • 4.6 (9)
  • Entrepreneurship

Running a business is hard. QuickBooks shouldn’t make it harder. Welcome to QuickBooks Mastery for Small Business Success—the podcast for growth-minded small business owners who are ready to stop drowning in financial confusion and start making confident, data-driven decisions. Hosted by Lee Davis & Erica Northrup, the father-daughter duo behind Lee Davis & Company, each episode delivers practical advice, proven systems, and real-world strategies to help you clean up your QuickBooks, simplify your bookkeeping, and grow your business with clarity. Whether you’re stuck in a bookkeeping mess, unsure how to read your reports, or ready to finally outsource your financial chaos, this show gives you the tools and insight to move from overwhelm to control—one episode at a time. Because your time should be spent on your craft and building your business—not buried in spreadsheets and reconciliations. ⸻ Perfect for: • Service-based small businesses • Business owners making $750K–$2.5M annually • Entrepreneurs tired of trying to “figure out” QuickBooks on their own • Leaders who want to spend less time managing their books and more time growing Subscribe today and take the guesswork out of your numbers.

  1. 5d ago

    Episode 43: Can You Actually Write That Off? Practical Tax Planning in QuickBooks

    Episode 43: Can You Actually Write That Off? Practical Tax Planning in QuickBooks“Can I write this off?” may be one of the most common questions business owners ask—but the answer does not begin with the card used to make the purchase or the account selected in QuickBooks. In this episode of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis explain how to think more clearly about business expenses before tax season. QuickBooks can organize the financial story, but it cannot turn a personal purchase into a legitimate business expense. The transaction still needs a real business purpose, appropriate tax treatment, and records that support both the amount and the reason for the purchase. You will learn the four questions to ask before treating a purchase as a possible deduction, how the Chart of Accounts supports tax planning, and why some categories deserve extra attention. Erica and Lee walk through meals and entertainment, vehicles and mileage, equipment and fixed assets, and the split between loan principal and interest. They also clear up several common myths: a write-off does not make a purchase free, a bank statement does not necessarily prove business purpose, and buying equipment before year-end does not automatically guarantee a full current-year deduction. Finally, Erica gives you an eight-step, 15-minute expense review you can complete in QuickBooks now—while there is still time to gather records, identify questions, and speak with your bookkeeper or qualified tax professional before year-end. Key TakeawaysA business expense generally needs to be ordinary and necessary for the business, with a genuine business purpose.Paying with a business account or categorizing a transaction as an expense does not determine whether it is deductible.A deduction generally reduces taxable income. It does not make the purchase free or create an automatic dollar-for-dollar refund.Before claiming an expense, ask: What did we buy? Why did the business need it? Was any part personal? What document proves the amount and business purpose?Separate business and personal activity so personal purchases do not accidentally land on the Profit & Loss.A clean Chart of Accounts gives the owner, bookkeeper, and tax professional a useful financial filing system.An LLC's federal tax filing depends on ownership, activity, and tax elections. The letters “LLC” do not automatically determine the return.Direct job costs may belong in cost of goods sold, while general overhead usually belongs in operating expenses.Qualifying business meals, including travel meals, are generally subject to a 50% limitation unless a specific exception applies. Entertainment is generally nondeductible.Mixed-use vehicles require documentation and an allocation between business and personal use. A logo on the vehicle does not replace a mileage or use record.Equipment expected to provide value beyond the current year may need to be treated as a fixed asset. The $2,500 de minimis safe harbor is conditional—not a universal automatic-expense threshold.Loan principal reduces a liability on the balance sheet; qualifying interest may be an expense. One payment can affect both the balance sheet and Profit & Loss.A bank or credit-card statement may prove payment, but it may not prove what was purchased or why it served the business.Attach receipts and record the business purpose while the transaction is fresh. Questions to Reflect OnWhat did the business buy, and why did it need it?Was any part of the purchase personal?Do you have a receipt or invoice that shows what was purchased—not merely proof that money left the account?Does your Chart of Accounts reflect how your business actually operates?Are direct costs separated from general operating expenses where appropriate?Do meal records identify who attended and the business purpose?Do you have a reliable mileage or vehicle-use record?Are large equipment purchases supported by invoices, purchase dates, financing details, and placed-in-service information?Are loan payments separated between principal and interest?Are unusual or unclear purchases sitting in Uncategorized Expense, Ask My Accountant, or Miscellaneous Expense?What questions should you bring to your bookkeeper or tax professional before year-end? Mentioned in This EpisodeOrdinary and necessary business expenses.The four-question deduction test.Owner draws and personal purchases.The Chart of Accounts as a financial file cabinet.Schedule C and differing federal tax treatment for LLCs, partnerships, S corporations, and C corporations.Cost of goods sold versus operating expenses.Advertising, fees, subscriptions, insurance, professional fees, repairs, supplies, rent, utilities, travel, meals, automobile costs, interest, and depreciation.The general 50% limitation for qualifying business meals.Nondeductible entertainment and separately stated meals.Standard mileage versus actual vehicle expenses.Fixed assets, depreciation, Section 179, bonus depreciation, and the de minimis safe harbor.Loan principal versus interest.Receipts, invoices, business-purpose memos, and supporting records.The 15-Minute QuickBooks Expense Review.The free QuickBooks Clarity Scorecard.The upcoming QuickBooks course. Recommended ResourcesDownload the 15-Minute QuickBooks Expense ReviewFree QuickBooks Clarity ScorecardListen to QuickBooks Mastery for Small Business SuccessLee Davis & CompanyQuickBooks training and course informationQuestions or support: support@leedavisandcompany.comIRS Publication 583: Starting a Business and Keeping RecordsIRS Publication 463: Travel, Gift, and Car ExpensesIRS guidance on tangible-property regulationsIRS guidance on records to keep Timestamps00:00 - QuickBooks Mastery Podcast Intro 00:56 - Episode 43: Can You Actually Write That Off? 02:46 - Important U.S. Tax Disclaimer 03:24 - What Makes a Write-Off Legitimate? 08:25 - What Makes a Business Expense Deductible? 09:57 - How the Chart of Accounts Supports Tax Planning 16:05 - Meals, Travel, and Entertainment 19:39 - Vehicles and Mileage 22:57 - Equipment and Fixed Assets 26:50 - Loan Principal Versus Interest 29:26 - Six Common Deduction Myths 31:28 - Records That Support a Deduction 33:11 - The Practical Habit to Begin This Week 33:56 - The 15-Minute QuickBooks Expense Review 37:06 - Why Deductions Begin Before Tax Time 37:39 - Clarity Scorecard, Course Waitlist, and Questions 38:45 - Final Sign-Off 38:55 - Podcast Outro Call to ActionOpen QuickBooks, set a timer for 15 minutes, and complete the expense review from this episode. You are not trying to prepare your tax return or reclassify every questionable transaction. You are identifying the places where the records, categories, or business purpose need more attention. [Download the 15-Minute QuickBooks Expense Review](ADD PDF DOWNLOAD URL AFTER UPLOAD), then take your question list to your bookkeeper or qualified tax professional before year-end. If you are unsure whether your QuickBooks can give you the information you need, begin with the free QuickBooks Clarity Scorecard. Email support@leedavisandcompany.com with your QuickBooks questions, subscribe to QuickBooks Mastery for Small Business Success, and share this episode with another business owner who has ever wondered, “Can I write this off?” This episode provides general educational information for United States small-business owners. Tax rules depend on the facts, entity, activity, elections, and tax year involved. Consult your own qualified tax professional before making tax decisions.

  2. Sep 17

    Episode 42: Is Your QuickBooks Ready for Tax Season? Start Now, Not in January

    Episode 42: Is Your QuickBooks Ready for Tax Season? Start Now, Not in JanuaryTax season may feel months away, but waiting until January to examine your QuickBooks can leave you trying to untangle an entire year under deadline pressure. In this episode of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis explain why tax readiness is a year-round process—and why September and October are valuable checkpoints for small-business owners. There is still time to correct bookkeeping problems, gather missing information, speak with your tax professional, and make informed year-end decisions before December 31. You will learn what “tax-ready QuickBooks” actually means, why a correct bank balance does not guarantee accurate books, which red flags deserve investigation, and what your CPA expects you to provide. Erica and Lee also walk through a practical 15-minute review you can use to identify questions without making rushed changes to transactions you do not understand. Key Takeaways● Tax readiness happens throughout the year. Consistent monthly bookkeeping makes year-end dramatically easier. ● September and October give you time to correct problems and pursue meaningful tax planning before the year closes. ● The business owner is ultimately responsible for understanding the financial picture, even when a bookkeeper manages QuickBooks and a CPA prepares the tax return. ● A matching bank balance does not prove that QuickBooks is correct. Duplicate transactions, personal purchases, uncategorized items, and incorrectly recorded assets or loans can still distort the reports. ● Review reconciliations, bank feeds, the Profit & Loss, the balance sheet, accounts receivable, accounts payable, payroll liabilities, loans, undeposited funds, and contractor records. ● Loan payments must be separated between principal and interest. Large equipment and vehicle purchases may belong on the balance sheet rather than the Profit & Loss. ● Old bank-feed items, negative balances, unexplained accounts, and receivables you do not expect to collect are questions worth investigating. ● Gather W-4s for employees, W-9s for contractors, receipts, bills, and supporting documents before deadlines to create unnecessary stress. ● Your CPA’s job is tax preparation and tax planning—not becoming your forensic bookkeeper during the busiest part of the year. ● If your 15-minute review reveals problems, make a list and investigate. Do not start deleting or changing transactions you do not understand. Questions to Reflect On ● Are all bank and credit-card accounts reconciled through the most recent statement? ● Are old or unexplained transactions still sitting in the bank feed? ● Does accounts receivable represent money customers actually owe—and that you reasonably expect to collect? ● Have all outstanding bills been entered into accounts payable? ● Do payroll-liability and loan balances agree with the underlying records? ● Were equipment and vehicle purchases recorded appropriately? ● Are there negative, uncategorized, or unexplained balances on the balance sheet? ● Do you have current W-9s for your independent contractors and complete employee information for year-end payroll forms? ● Can you explain the major changes on this year’s Profit & Loss compared with last year? ● Do you trust the numbers enough to have a productive tax-planning conversation? Mentioned in This Episode ● Profit & Loss and comparative Profit & Loss reports. ● Balance sheet review. ● Bank and credit-card reconciliations. ● Bank-feed matching and duplicate transactions. ● Accounts receivable, accounts payable, and undeposited funds. ● Payroll liabilities, W-2s, W-4s, 1099s, and W-9s. ● Loan reconciliation and principal-versus-interest allocation. ● Fixed assets, equipment, and vehicles. ● Receipts, bills, and transaction documentation. ● The free QuickBooks Clarity Scorecard. ● The upcoming QuickBooks course and Episode 43 on practical tax planning. Recommended Resources● Free QuickBooks Clarity Scorecard ● Lee Davis & Company ● Questions or support: support@leedavisandcompany.com ● QuickBooks course waitlist Timestamps00:00 - QuickBooks Mastery Podcast Intro 00:45 - Episode 42: Is Your QuickBooks Ready for Tax Season? 01:40 - When Tax-Season Preparation Should Begin 02:59 - Why the Business Owner Is Still Responsible 05:05 - What Tax-Ready QuickBooks Actually Means 07:00 - When the Bank Balance Is Right but QuickBooks Is Wrong 08:48 - The Biggest QuickBooks Red Flags Before Year-End 10:32 - Uncategorized Transactions and Old Bank-Feed Items 11:31 - Payroll Liabilities, Receivables, and Loan Balances 14:49 - Why Finding Problems Before January Matters 16:33 - Memory, Receipts, and Documenting Large Transactions 19:04 - Bookkeeping Cleanup Versus Tax Planning 20:13 - What Your CPA Expects at Tax Time 23:04 - A Practical 15-Minute QuickBooks Review 24:43 - Investigate Before You Change Transactions 26:47 - You Have Time: Start With the Clarity Scorecard 28:16 - Episode 43 and the QuickBooks Course Waitlist 30:54 - Final Reminder and Podcast Outro Call to ActionSet aside 15 minutes and open your QuickBooks. Review the bank feed, balance sheet, Profit & Loss, reconciliations, accounts receivable, accounts payable, loans, payroll liabilities, and uncategorized transactions. Write down anything that does not make sense. Begin with questions and investigation rather than rushed changes. If you are unsure whether your QuickBooks is ready for tax season, start with the free QuickBooks Clarity Scorecard. It will help you identify where you have clarity and where your books may need attention. Email support@leedavisandcompany.com with your QuickBooks questions, subscribe to QuickBooks Mastery for Small Business Success, and share this episode with another business owner who would rather prepare now than panic in January. This episode provides general educational information. Consult your own qualified tax professional about tax planning, deadlines, deductions, retirement contributions, and decisions specific to your business.

  3. Sep 9

    Episode 41: Can You Trust Your QuickBooks? The Monthly Health Check Every Business Owner Should Do

    Episode 41: Can You Trust Your QuickBooks? The Monthly Health Check Every Business Owner Should DoBefore you hire an employee, buy equipment, or decide how much you can pay yourself, can you trust the numbers behind that decision? In this episode of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis walk through a practical monthly QuickBooks health check for small business owners. The goal is not perfect bookkeeping. It is understanding whether your financial reports reflect what is actually happening in your business—and knowing which questions to ask when something does not make sense. From bank reconciliations and old bank feed transactions to accounts receivable, accounts payable, payroll liabilities, and your Profit & Loss, this conversation gives you a repeatable way to review your books. You will also learn why unexplained balance sheet balances and rising expenses deserve attention before you use your reports to make a business decision. Key TakeawaysReconcile every bank and credit card account. A connected bank feed is not the same as a completed reconciliation.Investigate old or unexplained bank feed items rather than assuming the books are current.Review accounts receivable for money you realistically expect to collect and accounts payable for bills you actually owe.Understand payroll liabilities. A balance is not automatically wrong, but its timing and amount should be explainable.Look at the balance sheet as well as the Profit & Loss. Negative balances, old balances, and unfamiliar accounts can signal questions worth asking.Compare your Profit & Loss with what happened in the business. Look for missing costs, unexpected changes, and expenses that have crept up.Treat “I don’t know” as a useful starting point. Write down the question and work through it with your bookkeeper or accountant.Finish with the question that matters most: do you trust these numbers enough to make a business decision? Questions to Reflect OnWhich report or balance do you currently find hardest to explain?Does your receivables total represent cash you expect to collect—or invoices that need attention?What costs have increased without you noticing?What decision are you postponing because you are unsure about your numbers?Who will help you investigate the first “No” or “I don’t know” on your monthly check? Mentioned in This EpisodeThe 10-question Monthly QuickBooks Health Check.Bank and credit card reconciliations and bank feed review.Accounts receivable and accounts payable reports.Payroll liabilities, balance sheet warning signs, and Profit & Loss comparisons.Mystery balances, uncategorized transactions, and Ask My Accountant accounts.The free QuickBooks Clarity Scorecard. Recommended ResourcesMonthly QuickBooks Health Check PDFFree QuickBooks Clarity ScorecardLee Davis and CompanyQuestions or support: support@leedavisandcompany.com Timestamps00:00 - QuickBooks Mastery Podcast Intro 00:56 - Episode 41: Can You Trust Your QuickBooks? 03:20 - Trustworthy QuickBooks Does Not Mean Perfect QuickBooks 07:27 - Start the Monthly QuickBooks Health Check 09:29 - Bank Feed Warning Signs and Unexplained Transactions 11:29 - Accounts Receivable: What Will You Actually Collect? 13:58 - Accounts Payable and Cash Planning 15:40 - Payroll Liabilities and Balance Sheet Red Flags 19:33 - Does Your Profit & Loss Pass the Common-Sense Test? 22:15 - Cost Creep: What Has Changed? 23:44 - Mystery Balances and Uncategorized Transactions 25:23 - Can You Make a Business Decision From These Numbers? 26:59 - The 10-Question Monthly QuickBooks Checklist 32:05 - Your 30-Minute Challenge and the Free Clarity Scorecard 36:09 - Closing and Podcast Outro Call to ActionSet aside 30 minutes this month and answer the health-check questions with Yes, No, or I don’t know. Choose one item to investigate, identify who can help, and set a follow-up date. Start with the free QuickBooks Clarity Scorecard, and email support@leedavisandcompany.com with the question you would like us to cover next. Follow QuickBooks Mastery for Small Business Success in your podcast app and share this episode with a business owner who wants more confidence in their numbers. If you leave a review, a few words about what helped—or what could be clearer—give us useful feedback for future episodes.

  4. Sep 4

    Episode 40: Where Is Your Profit Going? How to Use QuickBooks to Find Cost Creep

    Episode 40: Where Is Your Profit Going? How to Use QuickBooks to Find Cost CreepYour business can be growing while your profit is quietly getting smaller. A vendor raises a price. A discount expires. A software subscription renews at a higher rate. Material costs increase. Payroll or overtime creeps up. None of those changes may seem significant on their own — but together, they can slowly eat away at the profit you worked hard to create. In this episode of QuickBooks Mastery for Small Business Success, Erica Northrup and Lee Davis talk about cost creep and how small business owners can use QuickBooks to identify rising expenses before they become a much bigger profitability problem. Lee shares a real client story about noticing that a negotiated payroll discount had changed. The client wasn't notified that the amount they were paying had increased. Lee caught it because he was reviewing the numbers, questioned what had happened, contacted the payroll provider, pushed to have the correct pricing restored, and pursued the missed discount retroactively. But this episode goes far beyond payroll. We talk about how to use your QuickBooks Profit & Loss report, vendor history, purchase orders, Products & Services, cost of goods sold, payroll reports and expense trends to understand what your business is actually paying — and whether those costs are changing faster than your sales. Because increasing revenue doesn't automatically mean increasing profit. If your sales grow 5%, but your cost of goods sold grows 10% or 15%, something deserves a closer look. The goal isn't to cut every expense or always choose the cheapest vendor. The goal is to know what you're spending, understand why you're spending it, and make those decisions intentionally. QuickBooks is most valuable when it does more than record transactions. It should help you answer questions like: Where is my money going? Why did my profit change? What is getting more expensive? Are my margins shrinking? Where do I need to ask better questions? Key TakeawaysSmall increases add up. A $50 or $100 recurring increase may not seem significant until it happens every week or every month.Revenue can hide a cost problem. Growing sales don't necessarily mean growing profit if expenses are increasing even faster.Use your Profit & Loss report to compare periods. Look at changes in both dollars and percentages and start with the expenses that increased the most.Review vendor history. QuickBooks can show you what you paid a vendor previously so you don't have to rely on memory.Purchase orders can protect negotiated pricing. Compare the vendor's bill with what you originally agreed to pay.Know what your products and materials actually cost. If your cost rises while your selling price stays the same, your profit margin shrinks even if your revenue looks unchanged.Watch cost of goods sold. If COGS is increasing significantly faster than sales, that can be an important warning sign.Pay attention to payroll and overtime. Ask whether increasing payroll costs are producing a corresponding increase in sales, productivity or output.Use your numbers when negotiating. There's a big difference between saying, “This seems expensive” and being able to show a vendor exactly how your pricing has changed over time.The cheapest expense isn't always the best expense. Reliable vendors, quality products, good insurance and valuable employee benefits may absolutely be worth paying more for. The goal is not simply to spend less. The goal is to spend intentionally. Questions to Reflect OnWhat are the five vendors, products or expense categories that have the greatest impact on your business's profitability?What were you paying for those expenses six or twelve months ago compared with what you're paying today?If your costs increased, did your pricing, sales or business model change enough to absorb that increase? Mentioned in This EpisodeProfit & Loss ComparisonsUse your QuickBooks Profit & Loss report to compare one period with another and look for expenses that have increased substantially in either dollars or percentage. Vendor HistoryReview what you've historically paid recurring vendors and question unexpected changes rather than automatically assuming the current charge is correct. Purchase OrdersFor businesses purchasing inventory, materials or equipment, purchase orders can create a record of negotiated quantities and pricing that can later be compared with the vendor bill. Products & ServicesQuickBooks Products & Services can help you track what you're selling and, when set up properly, what those products or materials cost your business. Cost of Goods SoldWatching COGS alongside revenue can help identify margin compression that might otherwise be hidden by growing sales. Payroll and OvertimePayroll is one of the largest expenses for many businesses. Increasing overtime should be reviewed alongside the additional revenue or productivity it is generating. Duplicate BillsLee also shares a recent example of a client's health insurance bill being entered twice. Reviewing the vendor history helped identify the duplicate before the second payment went out. Recommended ResourcesFree QuickBooks Clarity ScorecardNot sure whether your QuickBooks is giving you reliable enough information to make these kinds of business decisions? Our free QuickBooks Clarity Scorecard can help you identify where your QuickBooks is working, where there may be gaps, and whether you're getting the financial clarity you need to confidently run your business. Get your free QuickBooks Clarity Scorecard here: https://lee-davis-and-company.aweb.page/unlock-clarity-free-scorecard Timestamps00:00 - QuickBooks Mastery Podcast Intro 01:14 - Where Is Your Profit Going? Understanding Cost Creep 03:11 - The Payroll Discount Story: Catching a Hidden Cost Increase 08:28 - What Cost Creep Is and Why Small Increases Matter 14:42 - Using QuickBooks Profit & Loss Reports to Find Rising Expenses 20:23 - Products, Services, Cost of Goods Sold and Shrinking Margins 24:09 - Negotiating With Vendors Using Your QuickBooks Data 38:56 - Key Takeaways: Protecting Your Profit From Cost Creep Call to ActionYour QuickBooks should do more than tell you what already happened. It should help you understand where your money is going, what is changing, and what decisions you need to make next. If you're not sure whether your QuickBooks file is giving you information you can actually trust, start with our free QuickBooks Clarity Scorecard: https://lee-davis-and-company.aweb.page/unlock-clarity-free-scorecard And if you have a QuickBooks question, something in your books that doesn't make sense, or a topic you'd like Erica and Lee to cover in a future episode, we'd love to hear from you. Email us at: support@leedavisandcompany.com We read and respond to every email. And don't forget to subscribe to QuickBooks Mastery for Small Business Success so you don't miss the next episode.

  5. Aug 26

    Episode 39: QuickBooks Payroll: Why the Bank Feed Isn’t Enough

    Episode 39: QuickBooks Payroll: Why the Bank Feed Isn’t EnoughPayroll can be one of the most confusing areas of QuickBooks because what you see leaving the bank does not necessarily tell you what actually happened with payroll. An employee may earn one amount in gross pay, receive a smaller amount in net pay, and have several deductions and withholdings moving to completely different places. At the same time, the business may also have employer payroll taxes, retirement contributions, and other payroll-related costs that never appear in the employee’s paycheck at all. That means a single payroll withdrawal in your bank feed may represent several different accounting transactions. In this episode of QuickBooks Mastery for Small Business Success, Lee and Erica break down what business owners need to understand about payroll without getting buried in the mechanics of entering payroll transactions. You’ll learn why gross pay and net pay are different, what payroll liabilities really mean, why payroll withdrawals should not automatically be categorized as Payroll Expense, and why your payroll reports are such an important part of understanding what actually happened. Lee also shares some of the common payroll problems he sees inside QuickBooks files — including growing liabilities, duplicate payroll accounts, incorrectly categorized withdrawals, and payroll numbers that reconcile to the bank but still do not make sense on the financial statements. Because reconciling the bank is important. But a reconciled bank account does not automatically mean your payroll accounting is correct. The goal of this episode is not to teach you every payroll entry or journal entry. It is to help you understand what your payroll numbers should be telling you so you can recognize when something deserves a closer look. Key TakeawaysPayroll is not one transaction. One withdrawal from your bank account can represent wages, payroll taxes, employee withholdings, retirement contributions, and several different liabilities.Gross pay and net pay are different. Your employee earns gross wages, while the amount deposited into their bank account is generally net pay after deductions and withholdings.Payroll liabilities are not automatically a problem. A liability simply means the business owes money somewhere else. The concern begins when those balances keep growing, are never cleared, or nobody can explain them.The true cost of labor can be higher than gross wages. Employer Social Security and Medicare taxes, unemployment taxes, retirement contributions, benefits, workers’ compensation, and other costs may all contribute to the actual cost of employing someone.Do not rely on the bank feed alone to understand payroll. The bank verifies that cash moved. Your payroll reports help explain what was actually inside that transaction.Payroll mistakes can distort both the Profit & Loss and Balance Sheet. Incorrectly categorized payroll can affect reported profit, labor costs, liabilities, cash-flow planning, and your ability to trust your financial reports.A reconciled bank account does not automatically mean payroll is recorded correctly. The cash can be right while the allocation between accounts is wrong.Business owners still need to understand payroll even when someone else processes it. You may have a payroll company or bookkeeper handling the mechanics, but the numbers ultimately affect the decisions you make about your business. Questions to Reflect OnAs you think about payroll inside your own QuickBooks file, ask yourself: Do I understand the difference between my employees’ gross pay and net pay?Do I know what the payroll liabilities on my Balance Sheet represent?Are payroll liabilities being cleared when the corresponding payments are made?Do any payroll liability balances continue growing month after month?Are payroll withdrawals being categorized entirely to Payroll Expense?Do the payroll numbers in QuickBooks agree with my payroll reports?Are there duplicate or similarly named payroll accounts in my Chart of Accounts?Do I know what my employees are really costing the business beyond their net pay?Does my payroll reconcile to the bank but still look wrong on my financial statements?Can I confidently use my payroll numbers when making staffing, pricing, or cash-flow decisions? You do not need to personally process every payroll transaction to answer these questions. But as the business owner, you should be able to recognize when the numbers do not make sense. Mentioned in This EpisodePayroll Register A payroll report that can help show employee gross wages and the details behind a payroll period. Payroll Summary A report that provides a broader breakdown of payroll wages, taxes, deductions, employer costs, and other payroll information. Payroll Liabilities Amounts your business may temporarily owe to taxing authorities, benefit providers, retirement plans, employees, or other parties. QuickBooks Clarity Scorecard Our free resource designed to help you evaluate the major areas of your QuickBooks file and identify where your books may need attention. Download the QuickBooks Clarity Scorecard: https://leedavisandcompany.com/wp-content/uploads/2026/02/Scorecard.pdf Lee Davis & Company: https://leedavisandcompany.com Questions? support@leedavisandcompany.com Recommended ResourcesIf this episode helped you understand why payroll depends on more than the bank transaction, these episodes will help you build on that foundation: Episode 35 — Chart of Accounts Understanding your Chart of Accounts makes it much easier to understand why payroll expenses and payroll liabilities belong in different places. Episode 37 — Does Your QuickBooks Actually Match Your Bank? Why Reconciliation Matters Learn why reconciliation is one of the most important checks you can perform inside QuickBooks — and why matching the bank is only one part of having accurate books. Episode 38 — The QuickBooks Adjustment Toolbox: Credit Memos, Vendor Credits, and Journal Entries Learn how to think about correcting transactions by first understanding what actually happened in the business instead of simply trying to make a number look right. Timestamps00:56 — Why Payroll Is More Than a Bank Transaction Why the amount leaving your bank account does not tell you the entire payroll story. 01:54 — Gross Pay vs. Net Pay Lee explains the difference between what an employee earns and what actually reaches their bank account. 06:11 — Understanding Payroll Liabilities Where employee withholdings go, why payroll liabilities appear on the Balance Sheet, and when those balances should concern you. 10:49 — What Employees Really Cost the Business Employer payroll taxes, benefits, retirement contributions, and the additional costs business owners need to consider. 15:32 — Why You Shouldn’t Categorize the Entire Withdrawal to Payroll Expense Why one bank transaction may need to be divided among several expense and liability accounts. 20:54 — The Payroll Reports Business Owners Should Know How the payroll register and payroll summary help explain what actually happened during payroll. 22:32 — How Payroll Problems Accumulate in QuickBooks Growing liabilities, duplicate accounts, incorrect categorization, payroll-provider changes, and other common payroll problems. 29:38 — Why Payroll Accuracy Matters to the Business Owner How incorrect payroll affects profit, labor costs, the Balance Sheet, cash planning, and your ability to trust your financial reports. 31:56 — Payroll Warning Signs to Watch For Specific clues that your payroll setup or historical payroll accounting deserves a closer look. 33:34 — Understanding vs. Implementation Why the podcast focuses on helping you understand what should happen while the course will provide the deeper step-by-step mechanics. 35:51 — The One Thing to Remember About Payroll Payroll is not one transaction. Call to ActionIf this episode made you realize that you are not completely sure whether payroll — or another area of your QuickBooks file — is giving you accurate information, start with the QuickBooks Clarity Scorecard. It will walk you through the major areas of your QuickBooks and help you identify what is working, what may need attention, and where you may need greater clarity. Download the free QuickBooks Clarity Scorecard: https://leedavisandcompany.com/wp-content/uploads/2026/02/Scorecard.pdf Subscribe to QuickBooks Mastery for Small Business Success so you do not miss future episodes. And if you have a QuickBooks question or something in your books simply does not make sense, we would love to hear from you. Email us at...

  6. Aug 19

    Episode 38: The QuickBooks Adjustment Toolbox: Credit Memos, Vendor Credits, and Journal Entries

    Episode 38: The QuickBooks Adjustment Toolbox: Credit Memos, Vendor Credits, and Journal EntriesEpisode OverviewSomething looks wrong in QuickBooks. Maybe a customer owes you less than the invoice says. Maybe a vendor gave you a credit. Maybe a customer's check bounced. Or perhaps your accountant handed you a list of year-end journal entries and you have no idea what any of them mean. The temptation is to start clicking until the number looks right. But that can create an entirely new problem. In this episode of QuickBooks Mastery for Small Business Success, father-daughter team Erica Northrup and Lee Davis break down a better way to approach QuickBooks corrections: understand what happened in the business first, then choose the tool that accurately records it. Lee explains why journal entries often feel intimidating, how standard QuickBooks forms handle much of the accounting behind the scenes, and why journal entries are simply another tool in your QuickBooks toolbox—not something to automatically fear or automatically use. The conversation walks through real-world examples involving credit memos, refunds, vendor credits, bounced checks, bad debt, payroll, and adjusting journal entries. The goal isn't to memorize every possible QuickBooks procedure. It's to understand what you're trying to accomplish. What You'll LearnWhy journal entries feel more intimidating than standard QuickBooks formsHow to decide between a credit memo, refund, vendor credit, or journal entryWhy you should understand the business event before deciding what to clickHow bounced customer payments should be treated differently from normal expensesWhy preserving transaction history matters when correcting QuickBooksHow journal entries interact directly with your Chart of AccountsWhy payroll is a useful example of a transaction affecting several accountsWhat to do when a QuickBooks balance looks wrong and you don't understand why Chapters & Timestamps00:00 — QuickBooks Mastery Opening 00:56 — Episode 38: The QuickBooks Adjustment Toolbox 02:32 — Why Journal Entries Intimidate Business Owners 11:55 — When to Use Credit Memos in QuickBooks 15:00 — Refunds vs. Credits in QuickBooks 19:43 — When to Use Vendor Credits 21:55 — How to Handle Bounced Checks 26:27 — Bad Debt Write-Offs and Accounting Method 31:25 — Journal Entries Deep Dive 40:59 — Payroll and Adjusting Journal Entries 45:41 — QuickBooks Tool Lightning Round 52:29 — Episode Summary and Challenge 59:37 — Outro and Resources Key TakeawaysOne of the biggest themes in this episode is that QuickBooks should tell the story of what actually happened in your business. If a customer was originally invoiced $2,000 and you later gave them a $300 credit, simply changing the original invoice to $1,700 erases part of that story. The original sale happened. Then something else happened that caused you to issue the credit. Recording both events preserves information that may matter later. The same principle applies throughout QuickBooks. A bounced customer check isn't simply another expense because money left the bank. The customer paid you, the payment was returned, and now the customer owes you again. Understanding that sequence helps you choose the correct accounting treatment. Another important lesson: journal entries aren't inherently good or bad. Sometimes QuickBooks provides a purpose-built form—such as a credit memo or vendor credit—that keeps the transaction connected to the appropriate customer or vendor. Other situations involve several accounts or accounting adjustments that don't fit neatly into a normal transaction form. That's when a journal entry may be exactly the right tool. Why Journal Entries Feel So Different in QuickBooksWhen you create an invoice, QuickBooks handles accounting behind the scenes. You see the invoice. QuickBooks also knows that Accounts Receivable and income accounts may be affected based on how the transaction is set up. Journal entries expose more of that accounting directly. Instead of simply choosing a customer or product, you're deciding which accounts should be debited and credited. That can feel intimidating if you've never worked directly with the Chart of Accounts. But Lee's advice is simple: don't begin by worrying about the debit and credit columns. Begin by asking: What am I trying to accomplish? When a Credit Memo Is the Right ToolSuppose you invoiced a customer $2,000 but later agreed to reduce the amount they owe by $300. Rather than changing the original invoice, a credit memo allows you to preserve the original transaction while recording the later adjustment. It also keeps that adjustment connected to the customer. This creates a much clearer history of what actually happened. Credit vs. Refund: What's the Difference?A credit reduces what someone owes. A refund involves money actually leaving the business and going back to the customer. That distinction becomes especially important when a customer has already paid or accidentally overpaid. Understanding whether you're reducing a balance or physically returning money helps determine the correct QuickBooks workflow. Vendor Credits Work in the Opposite DirectionCustomer credit memos and vendor credits are similar concepts viewed from opposite sides of the transaction. A credit memo generally reduces what a customer owes your company. A vendor credit reduces what your company owes the vendor. Again, the form exists because QuickBooks knows you are dealing with a specific vendor relationship and can preserve that history. Why Bounced Checks Can Create ConfusionA bounced customer payment is an excellent example of why the bank feed doesn't tell the entire accounting story. The bank feed may simply show money leaving your account. But the underlying business event is more complicated. The customer originally owed you money. They paid. The payment was returned. Now they owe you again. There may also be a bank fee or returned-payment fee involved. The correct QuickBooks workflow needs to reflect all of those events—not simply categorize the withdrawal as another expense. When Journal Entries Make SenseJournal entries become particularly helpful when a transaction affects multiple accounts or when you need to make a true accounting adjustment. Payroll is one example. One payroll cycle may involve wages, cash, payroll liabilities, taxes, and other accounts. Year-end adjusting entries from your accountant are another common example. These may include depreciation, loan adjustments, prepaid expenses, accrued expenses, or other changes needed to properly reflect financial statement balances. Good documentation matters here. Whenever possible, include notes, descriptions, and supporting documents so someone reviewing the books later understands why the adjustment was made. What If You Don't Know What's Wrong?Don't create another transaction simply to make the number disappear. Investigate first. Lee recommends looking at the original transaction, customer or vendor history, reconciliation information, and the way the account appears on the Balance Sheet or Profit and Loss. Follow the trail until you understand what created the number. Only then should you decide how to correct it. Related EpisodesEpisode 37: Does Your QuickBooks Actually Match Your Bank? Why Reconciliation Matters — Reconciliation helps expose the problems that Episode 38 teaches you how to begin diagnosing and correcting. Resources MentionedQuickBooks Clarity ScorecardNot sure how healthy your QuickBooks file really is? The free QuickBooks Clarity Scorecard helps you identify areas that may need attention and gives you a clearer picture of where your books stand. https://lee-davis-and-company.aweb.page/unlock-clarity-free-scorecard Lee Davis & CompanyFor more QuickBooks education and resources: https://leedavisandcompany.com Questions?support@leedavisandcompany.com Take the Next StepListen to the complete episode to hear Lee and Erica work through each scenario and explain the thinking behind the different QuickBooks tools. Then, the next time something looks wrong in your books, ask three questions before you start clicking: What actually happened? Which accounts should change? Which QuickBooks tool best records that story? And if you're not sure how much you can trust the information already sitting inside your QuickBooks file, download the free QuickBooks Clarity Scorecard and take a look at the bigger picture.

  7. Aug 12

    Episode 37: Does Your QuickBooks Actually Match Your Bank? Why Reconciliation Matters

    Episode 37: Does Your QuickBooks Actually Match Your Bank? Why Reconciliation Matters Episode OverviewYour bank account is connected to QuickBooks. Transactions are flowing into the bank feed. Expenses are being categorized. Everything looks pretty good. But does that mean your QuickBooks numbers are actually correct? Not necessarily. In this episode of QuickBooks Mastery for Small Business Success, father-daughter team Erica Northrup and Lee Davis break down QuickBooks reconciliation and why it is one of the most important checks a business owner can make when evaluating the health of their books. The episode grew out of a real reconciliation Lee performed on one of their own accounts. It was not a perfect sample-company demonstration. Lee discovered duplicate transactions, a customer payment posted to the wrong bank account, payroll transactions flowing into the wrong account through an integration, and several other issues that had to be investigated before the account could be reconciled. That real-world example reinforces one of the central lessons of the episode: reconciliation is not the problem when it discovers something wrong. Reconciliation is the process that reveals the problem. Why This Topic MattersA common misconception among QuickBooks users is that connecting a bank account means the accounting records automatically match the bank. They do not. The bank feed helps bring transactions into QuickBooks and makes it easier to categorize or match them. Reconciliation performs a different job. As Erica summarizes during the episode: The bank feed helps build the books. Reconciliation checks the books. When you reconcile a QuickBooks bank or credit card account, you compare what QuickBooks says happened with an independent source: your bank or credit card statement. You are looking for questions such as: Were all cleared transactions recorded?Were they entered for the correct amounts?Is anything missing?Was something entered twice?Did a payment go to the wrong bank account?Are transactions sitting in the account that do not belong there?Does the reconciled ending balance agree with the statement? That matters because your QuickBooks reports are built from the transactions underneath them. A polished Profit and Loss does not automatically mean the information is correct. QuickBooks will generate a report using the information it has been given. It cannot guarantee that every transaction was entered, matched, classified, or posted correctly. What You’ll LearnIn this episode, Erica and Lee explain: What QuickBooks reconciliation actually means.Why bank feeds and reconciliation are not the same thing.How duplicate transactions can distort expenses and profit.Why a customer payment may appear to disappear when it has actually been posted to another bank account.How payroll and other integrations can create unexpected reconciliation problems.Why a negative QuickBooks bank balance deserves investigation.What getting the reconciliation difference to zero actually tells you.Why a zero reconciliation does not automatically mean every account classification is correct.What to investigate when your reconciliation does not balance.Why you should not simply force QuickBooks to create a reconciliation adjustment.Why regular reconciliation gives business owners more confidence in financial reports. Key Takeaways1. A connected bank feed does not mean your books are reconciled. Seeing transactions inside QuickBooks tells you information is moving between the systems. It does not prove the accounting records accurately reflect the bank. 2. Ordinary mistakes can create significant reporting problems. A $500 transaction recorded twice becomes $1,000 of activity in QuickBooks even though only $500 actually left the bank. A customer payment posted to the wrong bank account can make one account look too high and another too low. An incorrectly configured payroll integration can send transactions into accounts where they do not belong. 3. Reconciliation helps uncover those differences. The goal is not merely to make QuickBooks display zero. The goal is to understand why the QuickBooks records and bank statement agree—or why they do not. 4. Zero is important, but it does not certify your entire QuickBooks file. A zero reconciliation difference provides evidence that the cleared activity for that bank account and statement period agrees with the bank statement. You could still have an expense categorized incorrectly or another bookkeeping issue elsewhere in the file. 5. Financial reports are only as useful as the information underneath them. Business owners use their numbers to make decisions about spending, hiring, distributions, profitability, taxes, and growth. Those decisions become much harder when the underlying books cannot be trusted. Common QuickBooks Reconciliation MistakesDuring the episode, Erica and Lee discuss several common problems: Adding a bank-feed transaction instead of matching an existing transaction.Entering the same expense twice.Posting a customer payment to the wrong bank.Accepting an incorrect category suggested through the bank feed.Payroll integration settings pointing to the wrong general ledger account.Transactions appearing in the wrong statement period.Bank charges or other transactions being omitted.Old activity sitting in a bank register long after it should have been corrected.Trying to force a reconciliation rather than finding the cause of the discrepancy. Practical Action StepsYour challenge after listening to this episode is simple. Choose one business bank account in QuickBooks. Pull the most recent bank statement. Then ask: When was this account last reconciled? If it is current, excellent. If it is not, determine where the reconciliation stopped. If you are not sure whether your accounts are being reconciled at all, that is important information to discover. Checking your bank balance tells you what the bank currently reports. Reconciling tells you whether your accounting records agree with the activity reported by the bank. Those are two different questions. Frequently Asked QuestionsWhat does reconciliation mean in QuickBooks?QuickBooks reconciliation is the process of comparing the transactions and balance in a QuickBooks bank or credit card account with the corresponding statement to identify differences and confirm that cleared activity agrees. Is my QuickBooks reconciled if my bank account is connected?No. A connected bank feed brings transaction information into QuickBooks. Reconciliation separately checks whether the resulting accounting activity agrees with the statement. Why doesn’t my QuickBooks balance match my bank?Possible causes include missing transactions, duplicate entries, transactions posted to the wrong account, timing differences, unmatched transactions, integration problems, or incorrect amounts. What does zero mean in a QuickBooks reconciliation?A zero reconciliation difference means the cleared QuickBooks activity you selected agrees with the ending balance being reconciled to on the statement. Does a zero reconciliation mean everything in QuickBooks is correct?No. A transaction could still be categorized to an incorrect income or expense account. Reconciliation tests the bank activity, not every accounting decision throughout your QuickBooks file. Can duplicate transactions affect my Profit and Loss?Yes. If an expense is recorded twice, expenses may be overstated and profit may be understated even though the bank only paid the expense once. Is looking at my online bank balance enough?No. Your online balance tells you what the bank reports. It does not tell you whether QuickBooks accurately reflects the underlying activity. What should I do if QuickBooks will not reconcile?Investigate the difference rather than automatically forcing an adjustment. Look for duplicates, missing transactions, incorrect amounts, wrong accounts, date differences, bank charges, and integration issues. How often should I reconcile?Reconciliation should become part of your regular bookkeeping routine. Staying current makes problems much easier to investigate than waiting several months and trying to reconstruct what happened. What if my QuickBooks has not been reconciled for a long time?Start by identifying the last reliable reconciliation and understanding the condition of the accounts. If several months or years of activity are involved, the cleanup can become more complicated and professional assistance may be worthwhile. Resources MentionedFree QuickBooks Clarity Scorecard: https://lee-davis-and-company.aweb.page/unlock-clarity-free-scorecard Lee Davis & Company: https://leedavisandcompany.com Have a QuickBooks...

  8. Aug 5

    Episode 36: Is Your Chart of Accounts Telling the Truth? Part Two Common Mistakes, Warning Signs, and What to Review

    Episode 36: Is Your Chart of Accounts Telling the Truth? Part TwoCommon Mistakes, Warning Signs, and What to ReviewYour Chart of Accounts in QuickBooks is the foundation of your entire accounting system. It determines how transactions are organized, where they appear on your financial reports, and whether those reports accurately reflect what is happening inside your business. In Part One of this series, we discussed the six essential questions your Chart of Accounts should help answer: What does the business own?What does the business owe?What belongs to the owners or shareholders?How does the business make money?What does it cost to deliver the work and operate the business?What may the business owe in taxes? In Episode 36, we take the next step. Lee Davis and Erica Northrup explain how the QuickBooks Chart of Accounts controls what appears on your Profit and Loss and Balance Sheet. They also walk through six common bookkeeping mistakes, warning signs that your accounts may need attention, and what you should review before changing anything inside QuickBooks. The goal is not simply to make your QuickBooks file look cleaner. The goal is to make sure your financial information is accurate, useful, and organized in a way that helps you make better business decisions. Why This Topic MattersYour Profit and Loss can look reasonable while major problems remain hidden somewhere else in your QuickBooks file. For example, you could have: An incorrect loan balanceA credit card that has not been reconciledDuplicate customer paymentsOld bills that still appear unpaidOwner transactions recorded as expensesEquipment purchases categorized incorrectlyIncome duplicated by a connected payment appMultiple accounts that serve the same purpose These problems matter because your financial reports are only as reliable as the Chart of Accounts supporting them. The account type determines where a transaction appears. An expense categorized as an ordinary operating expense will be presented differently from an expense categorized as cost of goods sold. That difference can directly affect your gross profit and the way you evaluate the performance of your business. You can enter the correct vendor, date, amount, and bank account and still produce misleading financial reports if the account classification is wrong. What You’ll LearnIn this episode, you will learn: How the Chart of Accounts builds your Profit and Loss and Balance SheetWhy QuickBooks account types matterHow net profit connects the Profit and Loss to the Balance SheetWhy credit card payments are normally not new expensesWhy loan proceeds should not be recorded as sales incomeHow owner draws differ from operating expensesWhy customer payments can accidentally be counted twiceWhen a major equipment purchase may belong in fixed assetsWhy creating more accounts does not always improve your bookkeepingHow QuickBooks classes can be used to track divisions or locationsWhich warning signs deserve closer attentionWhat to review before changing or cleaning up your accountsWhen to seek help from an experienced QuickBooks advisor Episode Timestamps and Chapters00:00 – Welcome to QuickBooks Mastery Meet Lee Davis and Erica Northrup and learn how the podcast helps small business owners simplify QuickBooks and understand their financial information. 00:56 – Episode 36 and Part One Recap Erica reviews the six questions every Chart of Accounts should help answer and introduces the focus of Part Two. 02:35 – How the Chart of Accounts Builds Financial Reports Lee explains how the setup and account types in the Chart of Accounts determine what appears on the Profit and Loss and Balance Sheet. 04:19 – Problems That Can Hide Behind a Reasonable Profit and Loss Incorrect loans, unreconciled credit cards, duplicated payments, unpaid bills, and owner transactions can remain hidden even when income and expenses look believable. 05:44 – Why the Account Type Matters A correctly entered transaction can still create an incorrect financial report when it is categorized to the wrong type of account. 08:26 – Six Common Chart of Accounts Mistakes Lee and Erica begin breaking down mistakes frequently caused by moving too quickly or blindly accepting bank-feed suggestions. 08:52 – Mistake 1: Recording Credit Card Payments as Expenses Learn the difference between recording purchases made with a credit card and recording the payment that reduces the credit card liability. 10:42 – Mistake 2: Recording Loan Proceeds as Income Receiving borrowed money increases the bank balance, but it also creates a liability. It is not the same as generating business revenue. 12:06 – Mistake 3: Recording Owner Draws as Expenses Lee explains how owner draws affect equity and why the correct treatment depends on your business and tax structure. 13:29 – Mistake 4: Recording Customer Payments as New Income Learn how invoices, accounts receivable, customer payments, deposits, and the Match feature should work together. 16:09 – Mistake 5: Expensing Major Equipment Purchases Vehicles, equipment, and other long-term purchases may need to be recorded as fixed assets rather than ordinary operating expenses. 18:05 – Mistake 6: Creating Too Many Accounts Discover why more accounts do not always create better financial information and when classes or separate company files may be more appropriate. 20:22 – Warning Signs Your Chart of Accounts Needs Attention A significant difference between the QuickBooks balance and the actual bank balance is one of the clearest signs that something needs to be reviewed. 21:29 – Red Flags and Yellow Flags Lee explains why a negative balance is not automatically wrong but should prompt you to investigate whether the balance makes sense. 23:15 – What to Do Before Changing Anything Write down your concerns and begin with only two or three priority issues instead of trying to overhaul the entire file at once. 24:37 – Finding Duplicated Income From Connected Apps Lee shares a real-world example of Square sales being recorded through an app and then added again through the bank feed. 28:00 – One Simple Review You Can Perform Today Start with one bank account, credit card account, month, or customer transaction process. 29:36 – A Five-Step QuickBooks Review Run your reports, review the major balances, compare outside documents, identify suspicious accounts, and write down questions. 32:07 – When to Stop and Ask for Help Learn when it is time to work with an accountant, QuickBooks ProAdvisor, or trusted advisor who understands your business. 34:02 – Why Business Owners Must Take Ownership You can delegate bookkeeping tasks, but you should still understand the financial information being used to make business decisions. 36:07 – Getting Back to the Basics Lee compares improving a tennis serve to strengthening your Chart of Accounts by returning to the fundamentals. 37:16 – This Week’s Challenge and Free Scorecard Run your Profit and Loss and Balance Sheet, write down your questions, and download the QuickBooks Clarity Scorecard. 40:00 – Closing and Additional Resources Six Common Chart of Accounts Mistakes1. Recording Credit Card Payments as ExpensesThe purchases made with the credit card create the business expenses. The payment from your bank account normally reduces the credit card liability. If both the individual purchases and the credit card payment are categorized as expenses, your spending may be counted twice. 2. Recording Loan Proceeds as IncomeMoney received from a loan increases your bank balance, but it also creates an amount your business owes. Loan proceeds should normally be recorded as a liability rather than sales income. Never assume that every deposit appearing in the bank feed represents revenue. 3. Recording Owner Draws as ExpensesAn owner draw is generally an equity transaction rather than an ordinary business expense. The proper treatment depends on your business structure and tax classification, but money paid to an owner should not automatically be placed in a general expense account. 4. Recording Customer Payments as New IncomeWhen you create an invoice, the sale is recorded and the amount is placed in accounts receivable. When the customer pays, the payment should be applied to the invoice. When the deposit appears in the bank feed, it should normally be matched to the payment already recorded. Adding the deposit as new income can cause the same sale to be counted twice. 5. Expensing Major Equipment PurchasesVehicles, machinery, computers, and other long-term equipment may need to be recorded as fixed assets rather than ordinary expenses. Save the invoice, purchase agreement, financing paperwork, and other documents so your accountant can determine the proper tax and depreciation...

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Running a business is hard. QuickBooks shouldn’t make it harder. Welcome to QuickBooks Mastery for Small Business Success—the podcast for growth-minded small business owners who are ready to stop drowning in financial confusion and start making confident, data-driven decisions. Hosted by Lee Davis & Erica Northrup, the father-daughter duo behind Lee Davis & Company, each episode delivers practical advice, proven systems, and real-world strategies to help you clean up your QuickBooks, simplify your bookkeeping, and grow your business with clarity. Whether you’re stuck in a bookkeeping mess, unsure how to read your reports, or ready to finally outsource your financial chaos, this show gives you the tools and insight to move from overwhelm to control—one episode at a time. Because your time should be spent on your craft and building your business—not buried in spreadsheets and reconciliations. ⸻ Perfect for: • Service-based small businesses • Business owners making $750K–$2.5M annually • Entrepreneurs tired of trying to “figure out” QuickBooks on their own • Leaders who want to spend less time managing their books and more time growing Subscribe today and take the guesswork out of your numbers.

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