Change to Chart of Accounts

[LaurenT]

We have been using Peachtree for nearly two years and our CPA is requesting some changes to the Chart of Accounts to simplify some items.

(1) Creating an account for items that are only 50% tax deductible - I understand that I can create a new account for these situations, however, how will the new account affect past entries? Will I need to amend past transactions to match the newly created accounts? Is there a way to set up this type of account for tax purposes?

(2) Defining business credit card payments - when payments are sent they may cover expenses that are credited to several different accounts. What is the best way to clarify that payments have been made for various transactions in a lump sum?

(3) Employee reimbursement - if an employee pays for a business expense and needs to be reimbursed, what is the easiest way to document this in Peachtree? Is it appropriate to set up an account per employee for these situations?

Thank you in advance for any suggestions and advice!

[Lisa_p]

We have been using Peachtree for nearly two years and our CPA is requesting some changes to the Chart of Accounts to simplify some items.

(1) Creating an account for items that are only 50% tax deductible - I understand that I can create a new account for these situations, however, how will the new account affect past entries? Will I need to amend past transactions to match the newly created accounts? Is there a way to set up this type of account for tax purposes?

The new account won't affect past entries. For prior years you definitely don't need to worry about it. For the current year, you could go back and edit transactions to use the new account if desired.


(2) Defining business credit card payments - when payments are sent they may cover expenses that are credited to several different accounts. What is the best way to clarify that payments have been made for various transactions in a lump sum?

I generally enter a bill using the credit card company as the vendor. Then in the apply to purchases, I breakdown what the various expenses are on the statement - so much for office supplies, so much for gas, etc. You can lump them together or itemize them line by line. Then if you only make a partial payment, the balance in payables should be your unpaid balance. Then next month you enter all the new charges and the balance in A/P will track along with the CC balance.

Now if you use the CC to pay other bills that you record in Peachtree to receive inventory and such, there's a different method. Post if you need me to go into that.


(3) Employee reimbursement - if an employee pays for a business expense and needs to be reimbursed, what is the easiest way to document this in Peachtree? Is it appropriate to set up an account per employee for these situations?


Just write a check to the employee hitting the appropriate expense account(s). You can put in the memo "reimbursement for ......"