What account does everyone use for Questions for their client?

Choosing an Account for Client Inquiries

When managing client accounts, how do you handle queries? Do you categorize these under a specific account similar to “Ask My Accountant”? Alternatively, do you leave them as uncategorized transactions or split them into uncategorized expenses and income? I’m currently in the process of standardizing this for my clients.

I appreciate any insights you can offer. Ideally, I want to generate a report that can be shared with clients to address their questions.

When handling questions related to your clients’ financial transactions, it is important to have an effective and standardized system for categorizing these queries. This approach not only helps maintain organized records but also facilitates easy communication and resolution with the client. Here’s a detailed strategy using QuickBooks as an example, though the principles can be adapted to other Accounting Software as well.

Strategies for Managing Account Questions

1. Use an “Ask My Accountant” (AMA) Account

Purpose: This method involves setting up a dedicated account specifically for queries and unclear transactions. The “Ask My Accountant” account acts as a temporary category to house transactions that require clarification from your client.
Setup:
Create an Expense account named “Ask My Accountant.”
Depending on your needs, consider sub-accounts for more granular tracking. For example:
- AMA – Expenses
- AMA – Income
Advantages:
Centralizes all inquiries, making it easy to review in one location.
Simplifies communication with clients by allowing you to run reports on this specific account.
Disadvantages:
Transactions may linger in this account if not regularly reviewed and reclassified once queries are resolved.

2. Categorize as “Uncategorized Transactions”

Application: Some Accounting Software provides default accounts for uncategorized income and expenses. These can be used temporarily until you have enough information to properly categorize the transaction.
Setup:
Utilize existing “Uncategorized Income” and “Uncategorized Expenses” accounts for pending queries.
Advantages:
Keeps your chart of accounts clean by utilizing existing categories.
Can leverage built-in reports specific to uncategorized transactions.
Disadvantages:
Lack of specificity can lead to more time filtering through transactions when reviewing.

3. Consider Using a Custom “Question” Tag or Label

Purpose: Instead of using separate accounts, leverage custom tags or labels to mark transactions for which you have questions.
Setup:
Create a custom tag called “Client Query” or “Follow-Up Required.”
Apply this tag to any transaction where further clarification is needed.
Advantages:
Allows flexibility across income and expense accounts.
Supports detailed reporting based on tagged transactions.
Disadvantages:
Requires diligent effort in tagging and untagging

One response

APAdmin

25 February 2025 at 8:04 PM
When handling questions related to your clients’ financial transactions, it is important to have an effective and standardized system for categorizing these queries. This approach not only helps maintain organized records but also facilitates easy communication and resolution with the client. Here’s a detailed strategy using QuickBooks as an example, though the principles can be adapted to other Accounting Software as well.

Strategies for Managing Account Questions

1. Use an “Ask My Accountant” (AMA) Account
- Purpose: This method involves setting up a dedicated account specifically for queries and unclear transactions. The “Ask My Accountant” account acts as a temporary category to house transactions that require clarification from your client.
- Setup:
- Create an Expense account named “Ask My Accountant.”
- Depending on your needs, consider sub-accounts for more granular tracking. For example:
  - AMA – Expenses
  - AMA – Income
- Advantages:
- Centralizes all inquiries, making it easy to review in one location.
- Simplifies communication with clients by allowing you to run reports on this specific account.
- Disadvantages:
- Transactions may linger in this account if not regularly reviewed and reclassified once queries are resolved.
2. Categorize as “Uncategorized Transactions”
- Application: Some Accounting Software provides default accounts for uncategorized income and expenses. These can be used temporarily until you have enough information to properly categorize the transaction.
- Setup:
- Utilize existing “Uncategorized Income” and “Uncategorized Expenses” accounts for pending queries.
- Advantages:
- Keeps your chart of accounts clean by utilizing existing categories.
- Can leverage built-in reports specific to uncategorized transactions.
- Disadvantages:
- Lack of specificity can lead to more time filtering through transactions when reviewing.
3. Consider Using a Custom “Question” Tag or Label
- Purpose: Instead of using separate accounts, leverage custom tags or labels to mark transactions for which you have questions.
- Setup:
- Create a custom tag called “Client Query” or “Follow-Up Required.”
- Apply this tag to any transaction where further clarification is needed.
- Advantages:
- Allows flexibility across income and expense accounts.
- Supports detailed reporting based on tagged transactions.
- Disadvantages:
- Requires diligent effort in tagging and untagging
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