Quickbooks Project

Scenario:

You decide to open up your very own moving company. After three months of business, you realize your current accounting system (throwing all your invoices and moving schedules into a drawer) is no longer working. Additionally, you would like to take out a loan from the bank to purchase more moving trucks and grow your fleet. In order to do that, you need accurate financial statements of your company to present to your loan officer.

Required:

1. Sign up for a free trial of QuickBooks (https://quickbooks.intuit.com/t/qbks-15214/pricing/) - I recommend using Essentials and please note that the free trial only lasts for 30 days

2. Give your new moving company a unique name

3. Record all transactions for your new moving company :

1. Record your initial investment of $100,000

2. Record the energy bills (January, February, and March)

3.Record all moving jobs that are listed on your calendar (January, February, and March). You will record the sale, the contractor expense, and supplies expense for each job.

4. Record the two separate truck purchases and calculate depreciation for January, February, and March

5. Record the leasing agreement

Other notes on the project: I recommend playing around in Quickbooks for a little bit before beginning the project. See how things flow through to the financials after paying vendors or entering invoices. Begin a new company file when you feel confident about how Quickbooks works. Any trucks purchased will be depreciated over 12 years with no residual value. Depreciation is calculated at the end of each month. You have a 5 year loan on all the vehicles you purchase and the payment is due the 1st of every month. You pay your movers (you consider them contractors) at $20 per man hour for each moving job. They are paid at the end of each week. You do not owe payroll taxes on their wages. You expense the cost of supplies (boxes, tape, paper) for each job. The supply cost is listed for each job on the moving calendar. You pay your bills on the due date, not when received. You take full payment from the customers on the day of the move.