Your accountant might be charging more than this is worth to you. Many businesses do their own payroll and filings.

However, it is a big responsibility, that I suggest you consider with caution.

If you make a mistake paying your utilities bill, they turn out your lights. If you make a mistake in your payroll taxes, it t’ain’t so pretty.

If you buy $100 of lumber, that is posting cash (or payables) vs inventory assets – assuming that you are handling the lumber as an inventory part (if you are using non-inventory parts, it is a different process). If you sell the lumber for $200 and you are using an invoice, two transactions occur. Inventory asset is reduced by $100 vs increasing COGS by $100. Sales is increased by $200 vs A/R increasing by $200. This all assumes that the inventory part item is set up properly.

Lots of ways of dealing with this, it all depends on how you have set things up.

This is our first year our accountant is doing taxes for our new company. She is not familiar with QB so we are running into a big problem. She is asking me about a missing journal entry although I rarely use the general journal. We bring in lumber and resell it, our business is very simply. She put her question in this format: You bought $100 worth of lumber and sold it for $200. There’s $100 that comes out of inventroy assets but how do you account for the other $100? How did I book that $100? She says she has to make a journal entry to account for the $100 I made on that lumber I sold. I’m just assuming that it shows as gross profit on my P&L. How do I explain how QB accounts for inventory and maybe I need another accountant!