This article will walk you through how Invoices will be handled in Quickbooks.
OVERVIEW
Invoices
During set-up, you’ll be asked to specify the accounts in QuickBooks that you would like MyCase to sync with. These accounts are:
Operating Bank Account
Income Account
Client Expenses Account
Trust Bank Account (if applicable)
Trust Liability Account (if applicable)
General Retainer Account (if applicable)
Once these accounts have been selected, MyCase will automatically create Service Items in QuickBooks, which are linked to the proper account above, based on best practices and appear on the QuickBooks invoices.
When an invoice is synced to QuickBooks, any payment associated with that invoice will also be synced. If there is a balance on the invoice at the time it is synced to QuickBooks, then that balance will be held in Accounts Receivable in QuickBooks until it is paid in MyCase, and the payment is synced to QuickBooks.
Example:
An invoice is created in MyCase with a simple $5,000 flat fee on it, and synced to QuickBooks without any payments being made on it.
Expected Behavior:
The invoice would be created in QuickBooks with a $5,000 flat fee line item, which results in a Debit (+) to Accounts Receivable and a Credit (-) to Legal Fee Income An example of that transaction on the QuickBooks balance sheet can be seen below:
What if I make a payment on the invoice in MyCase?
When the payment is made in MyCase, you will specify which account you would like that money allocated toward (Operating, Trust, or Operating as Credit). After the payment is made in MyCase, that payment can be synced to QuickBooks. Based on your selection, the following will occur:
Payment towards Operating Account: This would result in a Credit (+) into the Operating Account and a Debit (-) to remove the balance from Accounts Receivable
Payment towards Trust Account: This would result in a Credit (+) into the Trust Account and a Debit (-) into Accounts Receivable to remove the balance from Accounts Receivable
Payment towards Operating as Credit (coming soon)
Time & Expense Tracking
In order to offer better reporting within QuickBooks, MyCase syncs the Billing Activity on your MyCase invoice, and automatically creates a Service Item which then appears on the QuickBooks Invoice. This allows different types of time entries and expenses to be stored in their own category within QuickBooks. The items for Time Entries will automatically be tied to the Income account you chose during setup, and the Expense items will automatically be linked to the Client Expense account you chose during setup.
Below is a screenshot of how the Time Entries and Expenses appear in MyCase, as you can see, there are a number of different values in the “Activity” fields on the invoice:
Below is the same invoice in QuickBooks, after syncing it from MyCase:
As you can see, the “Activity” from MyCase is synced to QuickBooks as a “Product/Service” item, allowing you to track different types of time and expense entries in their own categories within QuickBooks.
Other Types Of Items
Based on the accounts selected during setup, items will be automatically created in your QuickBooks account to track the invoices you sync from MyCase. Below are the items which will be automatically created for you in QuickBooks:
MyCase Flat Fees
MyCase Discounts
MyCase Additions
MyCase Taxes
MyCase Interest
MyCase Trust Deposit (If Trust accounting is enabled)
MyCase Trust Payment (If Trust accounting is enabled)
Note: If you have set up Surcharge on credit card payments into your operating account, you will need to manually create a Surcharge service item in your Quickbooks account. Further instructions can be found here.
Below is an example of a flat fee in MyCase, and the resulting item that is created in QuickBooks automatically: