I enjoyed your article about zero dollar checks, but I have a question for you regarding potential impact on 1099 amounts. If a zero dollar check is recorded for a 1099 recipient, won’t the amount debited flow through to their 1099 even if the credit is to clearing (assuming the DR account is a mapped 1099-NEC account)? I’ve had that problem with journal entries coming through to 1099 amounts and it’s caused problems.
-Stephanie Krist, CB, Precision Bookkeeping, San Rafael, Calif.
Yes, a ZDC to a 1099 Vendor would definitely appear in the 1099-NEC totals for that Vendor (assuming the Vendor is marked as a 1099 Vendor).
Depending upon what the situation/reason is that a ZDC is being created for that Vendor, I suppose the ZDC could potentially overstate a Vendor’s 1099 reportable balance.
That is [an] old technique which has many uses, not only as a workaround for corrections needed to QBO.
Have the programmers been notified of the search and report deficiencies?
-Philip R. Powell, CPA, Whitaker, Spinks & Koslovsky, LLP, Waco, Texas
I have not personally notified Intuit about the Search in QBO not finding Names in Journal Entries, but it is a known issue as a colleague of mine who does paid training for Intuit has it in his curriculum.
I have been using Zero Dollar - Expense Form in QBO. Does it matter?
-David Magallanes, SBBK, Lompoc, Calif.
Do you mean you’re using the Expense screen instead of the Write Checks screen?
If Yes, no I don’t think it matters – the concept still works. On the Expense screen, you still have to select a bank or register to post the Expense to. I do recommend creating and using a Clearing Bank for the ZDC, and normally Checks are written from Bank accounts, and the Expense form is for credit card charges. But the Expense form will still work for a Zero Dollar entry.
I found myself wondering if ProAdvisor members who use QuickBooks Online Accountant would be included in this offer - it would be amazing!!! And is it available for QuickBooks Online Canada?
-Angela Meharg, Datisfy, Toronto
Response from the Intuit QuickBooks Team:
If a user of QuickBooks Online Accountant uses QuickBooks Online Advanced for their own books, then yes, they would have access to it. Additionally, the DocuSign eSignature Connector by QuickBooks is currently available only in the U.S.