QuickBooks Blog

Everything you want to know about Owner’s Draw in QuickBooks

Owner's Draw is an equity account on the Balance Sheet. It represents the sum of personal money that the owner has added and removed from the business. I recommend that sole proprietors do the following. 1. Change the name of Retained Earnings to Owner's Draw. If there is already an Owner's Draw, Owner's Investment, or … Continue reading Everything you want to know about Owner’s Draw in QuickBooks

COGS equation: calculating cost of goods sold

Let’s review the traditional cogs equation. It’s very easy to understand. I call this the old-fashioned way to compute cogs since it's not the formula used by modern accounting software such as QuickBooks, which relies on the perpetual inventory system. Even though it seems old fashioned, it's a good formula to memorize. The cogs equation's … Continue reading COGS equation: calculating cost of goods sold

Ledger Light logo… from before LedgerLight.com existed

Years ago, I was looking to buy a document stamp that said Reconciled. Seemed logical to me to have one, and I knew I'd use it a lot. I looked and looked, but when I couldn't find one I decided to have one custom made. I thought it would be cute to have a little image on it, so that's what I did. Imagine my delight at seeing it again today after not seeing it for a long time.

What does Other Comprehensive Income do?

It makes sense to think of the OCI statement as sort of like a reconciliation statement. It accounts for the difference between the FMV reporting and the amortized cost reporting on the two financial statements. But off the top of my head, there is something inconsistent about this. The two most important financial statements used by large firms and investors are required to be reported on different bases.