Not Capitalizing Things Correctly Let’s say you bought a new equipment for $3,000. Instead of having $3,000 in Office Supplies expense for that computer, you should create a new Fixed Asset. A fixed asset is an item purchased for long-term use that is not likely to be converted quickly into cash, such as land, buildings, and equipment. Capitalizing fixed assets is not only good bookkeeping, it is also required by the IRS. The good news is the IRS now allows you to no capitali

Separate Interest and Principal on Loan Payments If you have a loan, you probably know that part of your monthly payment goes towards the principal of the loan and part goes to pay interest. You need to tell QuickBooks about this break down too. If you don’t split out your loan payments each month, you can easily end up with tens of thousands of dollars being moved to interest expense when you have your tax return prepared. It’s no fun to see your books go from owing $300,000