A 1099-MISC form is a tax form used to report miscellaneous income, such as income earned as a non-employee, as well as fees, commissions, rents, or royalties paid during the last tax year. You can think of the 1099 form as the equivalent of a W-2 form for independent workers; both forms are information returns. Whether you hire people to perform services that help your business run smoothly, or you receive payment for services as an independent contractor, 1099-MISC is the form you’ll need.
QuickBooks inventory management is a feature that allows for the tracking of the inventory ‘ledger’ — specifically items, quantity on-hand and value – in the system. Ideally, this ledger provides the detailed information that supports the Balance Sheet balance for the Inventory Asset account.
But, there are several scenarios and uses of QuickBooks that will cause the Balance Sheet balance for Inventory Asset account to not be in-line with the Inventory Valuation reports from QuickBooks.
So, why does this happen?
How do we fix this?
And, how do we prevent this in the future?
QuickBooks “class tracking” is a valuable feature for many businesses. Sometimes this feature is misunderstood and therefore isn’t used to its full potential. Classes provide another dimension of understanding your business financials.
Is your business struggling with determining the profitability of a specific line of business? Are you creating many duplicate accounts to manage different overhead departments or budgets? Is your chart of accounts unwieldy?
Class tracking may be an answer for some of these business challenges.