Why is there a discrepancy if I'm using auto bookkeeping?

We offer two services, a revolving line of credit and net terms on business purchases. This information applies to the revolving line of credit service.

 

After enabling auto bookkeeping, you may get a message that your Fundbox liability recorded in you Quickbooks account doesn't match your current outstanding balance.

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There are a few reasons this might have happened.

If the amount currently recorded is lower than Fundbox’s calculation:  

  • The interest portion of the repayment was recorded as a reduction to the liability. Solution: the interest should be reclassified as an expense.
  • The advance was “matched” with an outstanding invoice. Solution: Make sure that Fundbox advances never mark invoices as paid.  Your receivables should only be marked as paid when funds are received from your customer. 
  • Fundbox advances were not recorded in a liability account. Solution: Please adjust to the amount provided by Fundbox. Any interest associated with previous advances should be recorded as expenses.  

If the amount currently recorded is higher than Fundbox’s calculation:

  • Fundbox repayments were not recorded in a liability account. Solution: All repayments should reduce the liability amount by the difference between the cash paid and the interest expensed.

 

We recommend that you consult your accountant before making any adjustments.

 

 

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