Quickbooks Categorization Insights using AI - FountIQ 🐚

Okay, so we're back here in our product section, and, we're going to work on the categorization at GPT.

We're going to head and launch the tool here, and it brings us right to it.

And we'll do a little refresh to, get it started there, get it kick started, and let's go ahead and get going.

So I'm just going to talk to it, and then I will copy and paste, a transaction here or there.

So I'm reviewing my client's books, and she's an interior designer, she's a sole proprietor, and there's that one transaction, a Chase credit card for $2841.76 on January 15th.

So the previous bookkeeper recorded it as a credit card expense.

Something about that doesn't look right to me.

So, can you check?

I didn't, paste the transaction, but let's just see what happens.

don't like red.

Red X's.

Let's see here.

mis categorization.

Right.

Credit card P payments are not expenses.

Okay, let's see here.

See, it exceeds the 2500 de minimis.

So we got to fix this.

Duplicate.

Duplicate entry check.

Okay, so.

no.

no.

so every single purchase on her credit card was already recorded as an expense when she swiped it, and then the payment was also recorded as an expense.

That means everything is doubled.

See what it says here?

okay, so if they're recorded Expensive.

Yeah, it's double counting.

All right.

Okay, so we got to worry about 1099 too, right?

So we got to move this stuff over to the liabilities.

so this has been happening for eight months in the previous bookkeeper did this every single month.

So how do I fix all of them?

All right, so, yeah, it's going to be fixable.

So it's good.

And, and so the bot is going to walk us through how to do it.

And, so we're gonna have to identify it.

Then we're going to reclassify everything using the, Reclassify Transactions tool, and it shows us how to do that.

And then we're going to have to do a retroactive reconciliation, and then we're going to have to clean up some of the rules to make sure that it is, you know, that the rule routes properly.

And then we have to look at the $2,500 threshold as well as the 1099 to make sure we clear those.

And, so lots of stuff to go through.

But step by step I think that we could get through this pretty easily.

Okay but let's just ask so that's a lot of cleanup.

should I flag this for my CPA or do you think I can handle it myself?

Did mention that should only take about 10 minutes however let's just see I think that it's going to take longer than 10 minutes.

so yeah it's it's probably best to flag this with CPA make sure that they're understood and they can double check everything Right.

So reclassify, reconcile and then identify the shift in net income because it's going back eight months and it looks like 22,000 in taxable income possibly just not great eight months so possibly could have rolled over on a previous tax year.

So all of this is really good stuff to get flagged on.

It's really important to kind of pay attention to that so that is that.

Okay, so here is another one.

I got a lot of transactions.

This is actually a batch transaction.

So can you help me categorize this week's transactions for my landscaping client?

They're a, they're sole proprietor.

they have three crew members on the, on the payroll.

And they are.

Let me get, let me get the transactions here.

Okay, just paste that in.

Let's just see.

These are large transactions, so, let's just see what it comes up with.

Okay.

great chart.

Good.

Let's see.

All right, so let's just kind of go through this.

L.

So cogs.

That's right.

Expense for vehicle, Home Depot.

What is that?

Check that.

And then Chipotle, 50% deductible.

And then state tax commission is not what's going on there.

I check it.

And then, looks like the, contract labor.

you know what, Actually, I think that I over.

I, had a bunch of transactions and I over.

copied.

So let's just say, ignore the state tax and the web designer from another client.

All right, and then what?

Let's see here.

But the other one that stood out to me was this Home Depot one, which is interesting.

Let's see, it looks like Home Depot.

See here, Safe harbor.

fixed assets.

Whoa.

Okay, hold on.

So, for the Home Depot one, let's see, he bought a new commercial lawnmower.

It's just one item.

$3,127.

So that's a fixed asset.

See what it says here?

Yeah, there we go.

Yeah, those are gone.

that's 2500.

Yeah, of course.

De minimis.

Safe harbor.

So we fixed that.

So that's good.

But then the other one is a, Chipotle.

So let's, let's inquire about that.

So for the Chipotle, it was lunch for the crew after a big install job, it was all four of them.

So that's 50% deductible.

Correct.

Yep.

That works.

Four crew members, lunch.

All right, great.

So everything is green.

We are looking good.

thanks, so much.

It's faster than doing them one by one.

Can I send you batches like this every single week?

Beautiful.

So this is all good.

thank you.