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Making QuickBooks Quicker
Tips for Efficiency and Effectiveness
Presented by:Edgar Rollins, CPAAccountency, LLC
410.964.2913
Hosted by:Paychex
Luke Berry410.581.7700
Ext 28076
Accountency, LLC 2
About Edgar & Accountency, LLC
EdgarPracticing accountant since 1986.
President, Accountency, LLC
Certified Public Accountant
QuickBooks Certified Pro Advisor (2001, 2002, 2005, 2006, 2007, 2008, 2009 2010)
Chairman, Local Practitioners Resource Committee of the Maryland Association of Certified Public Accountants.
Accountency, LLCPeer-reviewed accounting firm providing the following services:
Accounting
Bookkeeping, Compilations, Reviews, Financial statement audits
Tax preparation
Business returns for sole-proprietors, partnerships, LLC’s in all states
Individual tax returns for businesses owners and others.
QuickBooks
QuickBooks cleanup (monthly, quarterly, annually)
QuickBooks set-up
Business advising
• Paychex, Inc. is a payroll and human resourceservice company serving approximately600,000 businesses in the US.
• Paychex provides payroll processing, retirementservices, insurance, and a fully outsourcedhuman resource solution
• The company is headquartered in Penfield,New York and has more than 100+ locationsacross the country and has 12,000 employees.
Contents1. Program Basics
2. Getting Started
3. Starting a New Company File
4. Organizing Your Data in QuickBooks
5. Refining the Chart of Accounts
6. Classes
7. Jobs
8. Lists
9. Items
10. Customer Database
11. Document Storage
12. Entering Bills
13. Paying Bills
14. Receiving Payments
15. QuickBooks Data Files
16. Add-In’s
17. Tracking Time
18. Multi-User
19. QuickBooks Reports
20. Year-End
21. Preferences
22. Customizing QuickBooks
23. Tracking Cash Expenses
24. Budgets
25. Other Tips
QuickBooks
Program Basics
Are You Using the Right Edition?
Online Pro Premier Accountant
Simultaneous Users 5 3 5 5
Balance SheetTracking Yes Yes
Working in 2QuickBooksFiles
Yes
Search for Transactions Yes
Client data Review Yes Yes Yes
QuickBooks 2013 Editions
Buying tips: Amazon.com normally has the best price.Don't be afraid of online downloads. If you need to reinstall,
you can.
On line Pro Premier Accountant
Price $39/mo $199 $249 $399
QuickBooks EditionsPremier Edition
Contractor
Accountant
Manufacturing & Wholesale
Non-profit
Professional Services
Retail
Accountant Edition
Includes all premier editions
(Shows File/Toggle to Another edition)
Online
Tip: Everyone I know HATES the online version
If you need to share your file online, there are better ways.
Enterprise
Too expensive
Don't get it unless you absolutely need the Enterprise features like more concurrent users.
Mac
I tried it. Too many limitations, missing features & quirks.
Simple Start
Too stripped down to be of much use.
Tip:
The enterprise editions of QuickBooks are appropriate if you need 10,000 to 100,000:- Customers- Vendors- Employees- Inventory items
QuickBooks 2013
Customer and vendor records are more flexible and thorough. You can attach to-do's to them, assign multiple contacts and store more contact options, like Facebook addresses and Twitter handles.
QuickBooks
Getting Started
The Home Screen
Title Bar is the bar at the topMenu Bar is under the title bar
Task Bar
Icon Bar is in the middleNavigation bar is on the bottomBar is a is at the bottom
The Home Screen is arranged by function and work flow
VendorsCustomersEmployeesEtc.
Vendors
Customers
Employees
Company
Banking
…and other info
Live Community/Help
Tip:I've found it to be rarely helpful and usually
annoying.
Try Google!
You can disable Live Community
You can customize the Home Page
Starting a New Company File
Tip:
Don't use the QuickBooks sample company filesas your company file! (or as a shortcut to“Create a New Company File.”)
The New Company Interview
Tip:
Create a separate folder to hold each QuickBooks company file.
(one folder per company)
Setting up QuickBooks
Stop and Think. What is my goal?
Tax returnsFinancial management and decision makingOther reporting
Review income & expense accounts
Tip:Best option – have a good CPA or other
qualified person set up an appropriate chart ofaccounts for your business.Otherwise – carefully select only the accounts
that apply to your business (you can add morelater).
Never, ever, ever
enter beginning balances in an account
QuickBooks uses the double-entrysystem of accounting
Every transaction must have two “sides” with equal debits and credits
If you only enter one side, what happens to the other side?
Example of Double-Entry Accounting(How Debits and Credits work)
Assets: Normal balance
(to increase)
Bank, accounts receivable, other current assets, fixed assets, other assets
Debit
Liabilities:
Accounts payable, credit cards, other current liabilities, long term liabilities
Credit
Equity:
Equity Credit
Income:
Income Credit
Cost of Goods Sold:
Cost of goods sold Debit
Expense:
Expense Debit
Example: Cash sale for $100
Bank account is Increased (debited) for $100
Income is Credited (increased) for $100
In double-entry accounting, all transactions must have equal debits and credits.
The above transaction has:Debits: $100Credits: $100
Organizing your data in QuickBooks
Setting up QuickBooks
Stop and Think. (Again.)What is my goal?
Tax returnsFinancial management and decision makingOther reporting
Entering:- Checks- Deposits- Invoices
All are Fun!
The Real power of QuickBooks
(like all databases)
is the reports that show your data in different ways.
QuickBooks gives us multiple ways to organize our data:
Chart of accounts
Classes
Items
Refining the Chart of
Accounts
Reporting Considerations
Some standard reporting needs:Income tax returnsFinancial statements for banksFinancial statements for owners/investorsReports for regulatorsReports for management to run the businessBusiness planningReports for analysis
Tip:
Assume you will be audited.You will probably be correct.
Examples of Accounts Needed:
Income tax returns
Penalties (not deductible)Federal income taxes (not deductible)State income taxes (deductible)Travel (deductible)Meals (50% deductible)
Examples of Accounts Needed (cont'd)
Sales tax returns
Sales by type (product vs service)Sales by stateThink: ITEMS
1099 – MiscW-2 labor1099 labor
Other special needs
Reports by business locationReports by line of businessReports by partnerThink: CLASSES
What accounts are needed for yourtax return?
Depends on:Your IndustryYour Entity type
Schedule C Sole-proprietor/single-member LLCForm 1120S S-CorporationForm 1120 CorporationForm 1065 Partnership/multi-member LLC
Schedule C is used by sole proprietors and single-member LLCs
Sample accounts:
• Sales• Advertising• Insurance (other than
health)• Interest
• Mortgage• Other
• Legal and professional• Office expenses• Repairs and
maintenance
Form 1065 is used by partnerships and multi-member LLCs
Sample accounts:
• Sales• Salaries• Guaranteed
payments to partners
• Taxes and licenses• Interest• Other
Tip:
Don't create more accounts than you really needDo split up accounts with large balances (could help avoid an audit)Look for other ways to get your information rather than creating new accountsThink: ITEMS!Think: CLASSES!
Tip:Many people choose entities that limit their
liabilityThat limitation will be compromised if you mix
business and personal expensesKeep business & personal separate!
QuickBooks Account types
BankAccounts receivableCurrent assetsFixed assetsAccounts payableCurrent liabilities
Credit cardsEquityIncomeCost of goods soldExpenseLong term liabilities
QuickBooks Account typesAssets: Normal balance
(to increase)Bank, accounts receivable, other current assets, fixed assets, other assets
Debit
Liabilities:Accounts payable, credit cards, other current liabilities, long term liabilities
Credit
Equity:Equity CreditIncome:Income CreditCost of Goods Sold:Cost of goods sold DebitExpense:Expense Debit
Account Numbering
Examples of numbering schemes:
1001000100001000 - MD
Suggested Account Numbering
1000 Assets2000 Liabilities3000 Equity4000 Revenues5000 Costs of sales6000 Expenses9000 Other income9500 Other expenses
Account Types - Bank
1100 – 1199Example:
1110 - Checking1120 – Savings1130 – Petty cash1140 - PayPal1190 - CDs
Checking Accounts with Multiple Check Sequences
If you use different sequences of checks in youraccount (Manual checks, payroll checks, checksprinted from QuickBooks) you can create sub-checking accounts to hold them.
When reconciling, reconcile the parent (main)account.
GAAP
Accounting principles generally accepted in the United StatesVaries by industry
Account Ordering Basics
GAAP generally requires listing accounts from most current to least current.
Example: • Checking (demand deposit)• Certificate of Deposit (time deposit
w/restricted availability)• Loan to owner
GAAP: Accounting principles generally accepted in the United States
Varies by industry
“Current”
A current asset is an asset and can either be converted to cash or used to pay current liabilities within 12 months.
Current liabilities are all liabilities of the business that are expected to be settled with 12 months.
Account Types – A/R
1200 – 1299
Example:1210 – Accounts receivable1290 – Allowance for doubtful accounts*
* Required by GAAP
Account Types – Other Current Assets
1300 – 1699
Example:1300 – Inventory1400 – Prepaid expenses1500 – Deferred income taxes1600 – Other current assets
Account Types – Fixed Assets
1700 – 1799Example:
1710 – Office equipment1720 – Furniture & fixtures1730 – Machinery1740 – Vehicles1750 – Leasehold improvements1760 – Land1790 – Accumulated depreciation
General IRS Rule – Fixed Assets
All fixed assets over $100.00
(Yes it's crazy. Don't blame me.)
Internal Revenue bulletin 2012-14, V, D De-minimis rule
Tip:
The depreciable cost of a fixed asset is:The cost of the assetSales taxDeliveryInstallation by sellerInstallation by your staffAccessories required to put the asset into useInspections.
Tip:
Fixed Asset or RepairPut vs. Keep Test
If the expenditure is to put the asset into useable condition, it is a FIXED ASSET.
If the expenditure is to keep the asset in working order, it is a REPAIR.
Put vs. Keep Test Example
You buy a truck that is up on blocks with no tires.The depreciable cost of the vehicle is the cost of the
vehicle and the cost of the tires.When you need to replace the tires, that is a repair.
Tip: Splitting the cost of multiple assets
Example: You go to Best Buy and buy a computer for $1,000 and a
printer for $250.Your 2 items ($1,000 & $250 = $1,250) will cost $1,325 at
checkout (sales tax!)When entering the check or credit card charge, enter a split
transaction and show each item (computer and printer) on a separate line.
DO NOT include a separate line for sales tax.
The cost of the computer should be $1,060.The cost of the printer should be $265.
This split is easy. In a more complicated transaction with multiple items or additional charges like delivery, just make an approximate allocation of the costs to the individual assets.
Don't worry about the split if it's close and the total comes out tomatch the bill.
Tip:
Income statement accounts hold a balance for thecurrent year only.
(Income statement accounts close to retainedearning at year-end. The beginning balance atthe start of the new year is $0.)
Balance sheet accounts never close. They contain a running balance from “the beginning.”
Some balance sheet accounts will contain “zillions” of transactions. (ex: Bank, A/R, A/P)
Many balance sheet accounts are infrequently used. (ex: Vehicles, notes payable)
When possible, minimize the activity in the seldom used balance sheet accounts.
That will make it easier for you when you are reviewing account balances.
Example:
You have a contractor build a bathroom for your office for $10,000 payable in 4 installments.
Instead of using the check writing screen and posting the 4 checks individually to “Leasehold Improvement,” enter a bill from the contractor for the full amount. (You can change the bill amount later if it changes.)
Now you can look in the history for Leasehold Improvements and see the one entry showing $10,000 for the cost of the bathroom.
Opening Balances
Never enter an opening balance for:
AccountsCustomersVendorsInventory items
Never let QuickBooks make an adjustment when a bank reconciliation doesn't balance.
Account Types – Other Assets
1800 – 1999Example:
1800 – Non-current notes receivable1900 – Non-current assets – other
Examples of other assets:Franchise rightsNon-compete agreementsGoodwillPatentsAccumulated amortization
Account Types – Accounts Payable
2200 – 2249Example:
2210 – Accounts payable.
(Note: There is rarely a need to have more than 1 A/R account)
Account Types – Credit Card
2250 – 2299
Example:2250 – American Express2260 – Visa, Bank of America
Account Types – Other Current Liabilities
2300 – 2799Example:
2300 – Accrued expenses2400 – Payroll payables2500 – Income taxes payable2600 – Deferred income taxes2700 – Other current payables
Account Types – Long-Term Liabilities
2800 – 2999
Example:
2800 – Non-current notes2900 – Non-current other
Account Types – Equity
3000 - 3999Equity Accounts for
CorporationsCommon stock
Preferred stock
Additional paid-in capital
Distributions
Tax distributions
Retained earnings
Member's equity – Edgar
Beginning equity
Investments
Distributions
Earnings
Equity Accounts for Partnerships, LLC's, Sole-Proprietorship’s
Accounts in Blue on the previous slide should be zeroed out (“closed”) every year on the first day of the next year.
They should show only the current year activity.
For corporations, close to retained earnings.
For other entities, close to the beginning equity account
Account Types – Retained Earnings
Not an appropriate account for non-corporations, but QuickBooks leaves you no other choice.
Account Types – Revenues (Income)
4000 – 4999
Example:4010 – Sales
Rarely is more than 1 sales account needed.Think: ITEMS
Account Types – Costs of Sales
5000 – 5999“Costs of sales” or “Costs of goods sold”
Direct costs attributable to the production of the goods or services.
Costs of SalesPurchases (physical product that is
part of the sale)
Costs of labor
Other costs:
SubcontractorsDirect rentDirect utilities
Costs of Goods SoldPurchases
Costs of labor
Other costs:
Factory rentFactory utilitiesSubcontractorsWarehousingTransportation-in
Account Types – Expenses
6000 – 8999Example:
6100 – Labor costs6500 – Occupancy7000 – Variable expenses7500 – General business expenses8000 – Discretionary8500 – Owner's compensation
Expenses6100 - Labor Costs
WagesPayroll taxesEmployee benefitsPayroll service fees
6500 - Occupancy
Rent
Utilities
Repairs (to office)
Condo fees
Office cleaning
7000 - Variable Expenses
Expenses that vary depending on level of production or sales volume.
8500 - Owner's Compensation
Salary
Commissions
Benefits (medical, retirement, etc).
8000 - Discretionary
TravelMealsEntertainmentContributionsBusiness gifts
7500 - General Business Expenses
“Everything else”
Account Types – Other Income
9000 – 9499
Example:Interest incomePurchase discounts (optional)Gains on sales of assets
Account Types – Other Expenses
9500 – 9999
Example:Interest expenseLosses on sales of assetsDepreciation
Tip:
Most lists allow you to group items into Parent-Child groups.
Sub Accounts
- Check (or uncheck) subaccount of _________box- Pick parent account
Collapse/Expand Financial Statements
Collapse – “hides” sub-accounts and shows the total of the sub accounts in the parent account.
Expand – shows all accounts and sub accounts.
Tip:
Consider using Accounts/sub accounts to help see the “big picture.”
Example:6100 – Labor Costs (parent account)6110 – Wages (sub account)6120 – Commissions(sub account)6130 – Payroll taxes (sub account)
When collapsed, only Labor Costs will appear on the Profit & Loss statement (showing the total of the parent and all sub accounts).
Tip:In the previous example6100 – Labor costs6110 – Wages6120 – Commissions6130 – Payroll taxesWhen entering a transaction, if you select the parent account it
will show on the Profit & Loss statement as follows6100 – Labor costs6110 – Wages6120 – Commissions6230 – Payroll taxes6100 – Labor costs – other
Tip:Don't rename or delete the system accounts that
QuickBooks automatically creates:Retained earningsSales tax payableCost of goods soldEstimatesInventory AssetsPayroll liabilitiesPayroll expensesPurchase ordersUndeposited funds
Classes
Classes
Classes provide a way to group Profit & Loss transactions by:
DepartmentOfficeLocationPartnerAnything else you want to track.
You can print the P & L by class (in separate columns)Better than cluttering the Chart of Accounts.
P & L by Class
You might use classes to, for example, separate transactions that relate to different departments or locations or types of business.
A construction company might want to track classes using New Construction, Remodel, and Overhead.
Your customer types might help you isolate groups by characteristics like Industry or Geographical Location.
Tip:For amounts that can't be efficiently split among classes,
create a class to hold those entries and allocate periodically by journal entry.
Example 1: If you have 2 partners and want to allocate income and expense items between them, create 4 classes as follows:
Example 2: If you have 2 properties and want to allocate income and expense items between them, create 3 classes as follows:
Partner Partner Allocate Allocate
1 2 Equally By Sales
Property Property
1 2 Allocate
Creating Classes
Go to Edit | Preferences | Accounting | Company Preferences.
Make sure that Use class tracking is checked. If you want to be prompted for a class designation
in transactions, check that box, too.
Class Reports
QuickBooks comes with two reports specially designed for tracking class-based transactions:
Profit & Loss by Class and Balance Sheet by Class
(both can be found in the Reports menu, under Company & Financial).
Of course, you can filter other reports to include a class column. You can also create a QuickReport for individual classes.
You can filter by class in QuickBooks reports.
Jobs
Job Preferences
Create The Job Type
Create the Job
Open the Customer Center.
Right-click on a customer who needs a job tracked and select Add Job
Job Reports
You'll learn how each job is doing in terms of things like:
• Profitability • The accuracy of your estimates • Time and mileage • Unbilled costs • Job status
Lists
Customers & Jobs
Jobs are a “sub-account” of Customers
Example:Customer- Job 1- Job 2- Job 3
Tip:
You can only create invoices for Customers or Jobs
Vendors
Everyone you pay
Except payment to employees for payrollFor non-payroll payments to employees, set
them up as vendors with a unique name.
Tip:
You can only track A/P or issue 1099's to Vendors.
Other Names List
Optional – You can just use one of the other name lists
- customers- vendors- employees
Tip:
You can move other names to:- customers- vendors- employees
YOU CANNOT UNDO THE CHANGE OR CHANGE OTHER NAME TYPES.
Tip:
Some people use the other names for one-time use (ex: a vendor you will only every use once or very infrequently).
It usually works better to just make the payee a vendor and mark it as “inactive.”
Inactive Items
Tip:Some lists give you the option to show inactive
entries.If “ABC Company” is inactive, by default it will not
show up when using the drop-down list on the enter-check screen.
If you type “ABC Company” QuickBooks will give you the option to: - Use it this time (keep inactive)- make it active
Tip:
Creative use of lists are a good way to tweak QuickBooks.
For ExampleIf you don't use sales reps but want to track sales by
referral source, you could set up the sources as sales reps.
Working with Lists
You can:AddModifyDeleteMergeMark in active
Tip:
Merging List Entries1) Edit the item2) Change the name to be the EXACT as another
item3) QuickBooks will ask you if you want to merge
the items
Price Levels List
You may find that you have to offer a standard discount to one or more customers, use the price level feature, so that you don’t have to remember to include a discount item on each invoice:
QuickBooks Pro users can only establish Fixed % price levels, which are applied globally to all products. QuickBooks Premier users also have the option to create Per Item discounts, where you can selectively discount only certain items.
Price levels allow you to apply automatic discounts to everything a
customer purchases.
ITEMS
Your Company in High Definition
Are You Defining Items in QuickBooks Correctly?
Obviously, you're using QuickBooks because you buy and/or sell products and/or services
You get that information from the reports that you so painstakingly customize and create.
But their accuracy depends in large part on how carefully you define each item.
This can be a laborious process, but it's a critical part of QuickBooks' foundation.
Items are Important in QuickBooks
Any line item on a purchase order, invoice or estimate must be set up as an item.Items make data entry on sales & purchase forms more efficient.
Items Allow You to Track Non-Financial Information in
QuickBooks
QuantitiesHoursEtc.
Items allow you to keep highly detailed information and still keep a simple (understandable) Chart of
Accounts
Example:You can have 10,000 items that you track sales of, but
on the financial statements they can all be grouped as “Product Sales” or “Service Sales.”
Items allow you to track inventory
Items allow non- “accounting types” to enter transactions in
QuickBooks without messing things up.
When the item is selected on an invoice, the transaction is posted to the correct financial statement accounts (assuming you set it up correctly in the Item List).
Items act as “Pointers” to the Financial Statements.
Tip:
All items MUST be assigned to the correctexpense account.
Tip:
Items Sales and Costs should be assigned toincome and expense accounts, not balancesheet accounts.
Item Types
Generally, an item type can't be changed, so it is very important to set it up right the first time.
Service
Do you or your employees do something for clients?
• Training? • Construction labor? • Web design?
This is usually tracked by the hour.
Inventory Part
If you want to maintain detailed records about inventory that contain up-to-date information about value, quantities on hand and cost of goods sold, you must define these items as inventory parts.
Before you start creating individual records, make sure that QuickBooks
is set up for this purpose.
How Detailed Should the Item List Be?
The chart of accounts should be only as detailed as you absolutely need it to be.
The item list should be as detailed as possible.
Inventory Assembly
Sometimes referred to as a Bill of Materials. Do you sell items that actually consist of multiple
individual products, services and/or other charges (though you may also sell the parts separately)?
If you're planning to track the compilations as individual units, then you must define them as assemblies.
Non-Inventory Parts
If you don't track inventory, you can set up items as noninventory parts.
Even if you do track inventory, there may be times when you'll want to use this designation.
For instance, you might sell something to a customer that they asked you to obtain, but you don't plan to stock it. In that case, QuickBooks only records the incoming and outgoing funds.
Other Charges
This is a catch-all category for items like delivery charges or setup fees.
You can't designate a unit or measure here; they're just standard costs.
Groups
Unlike assemblies, these are not recorded as individual inventory units.
Use this designation when you sell a combination of items together frequently but you don't want them tracked as one entity.
DiscountThis is a fixed amount or a percentage that you
subtract from a subtotal or total. Discounts only apply to the previous row of the
invoice or sales receipt. To apply the discount to multiple items, you must
create a Subtotal item.
Payment
Normally, you would use the Receive Payments window to record a payment made.
But if your customer has made a partial or advance payment upfront, use this item to subtract it from the total when you create the invoice or statement.
Sales Tax Item
One sales tax, one rate, one agency.
Sales Tax Group
If a sale requires two or more sales tax items, QuickBooks calculates the total and displays it for the customer, but the items are tracked individually.
Additional Actions The Item menu provides
other options for working with items. You can:
• Edit or delete • Duplicate • Make inactive • Find in transactions and • Customize the list’s
columns.
Item ReportsSales by item summary
QuantityAmount% of salesAverage price
Purchases by item summaryQuantityAmount
Item ProfitabilityCostSalesProfit by item
Change Item PricesCompetitive or other pressures may mean that you need to globally change all
of your prices at once. Fortunately, you can use the Change Item Prices feature to do so:
1. Choose Customers, and then Change Item Prices.
2. As shown in Figure 5, select an Item Type from the list, and then select the items you wish to change, or click the Mark All checkbox.
3. Indicate a percentage or dollar amount to increase prices by. This can be based on the current price or current cost of the item. Enter a positive number to increase the price, or negative number to decrease the price.
4. Click the Adjust button to see the impact of your changes in the New Price column, and then click OK to make the changes permanent.
Timesaver: You can also manually fill-in the New Price column if you prefer to make targeted adjustments to selected items. This is easier than manually opening each item one at a time.
Customer Database
QuickBooks is a database for a variety of customer info.
Edit Customer
Edit Customer – Additional Info
Edit Customer – Payment Info
Edit Customer – Define Fields
Document Storage
Local Document Storage(Requires QuickBooks 2012 or later)
Attach documents from your computer or directly from scanner to records in QuickBooks.Storing documents is freeDocuments are stored on your computer
(Having a good backup is CRITICAL)Manage your documents in the QuickBooks
Doc Center
Attaching a Document
You can attach documents to any QuickBooks record (ex: invoices, customers, checks, estimates)
In the menu bar, click the Attach Button.Attach a document:
From your computerFrom your scannerFrom the QuickBooks Doc CenterBy dragging the document into the attachments window (from your computer or directly from Outlook.
You can attach multiple documents to one record.
Tip:
The connection between your QuickBooks data file and your attached documents will break if you rename or move your QuickBooks data file.
Tip:
When you merge records, the documents remain attached to the new merged record.
Tip:
When condensing data files, QuickBooks keepsdocuments that are attached to deletedtransactions.
Kept as unattached documents in the Doc Center.
Tip:
Attached documents are NOT included in a QuickBooksbackup.
You must MANUALLY backup the \Attach folder usinganother method.
There is no size restriction with AttachedDocuments
There is no restriction on the type of file that canbe attached
There is no limit to the number of files you canattach (per record or in total)
QuickBooks company user permissions determinewhich users have access to attachments.
QuickBooks Doc Center
Entering Bills
Bill Payment Methods
Enter bills Pay bills
Or
Write checks
Tip:
When you pick a method for paying bills (EnterBills then Pay Bills, or Write Checks) STICKWITH IT!
If you alternate methods, you will end up payingbills twice.
Bill Entry Screen
Benefits of Entering Bills
• Enter bills as they come in • Set reminders for bills due • Pay bills easily • Locate a bill or payment quickly • Enter bills as (or after) you receive items • Link bills to purchase orders • Have instant access to a bill's status
Paying Bills
Paying Bills
At the bottom of the screen, you can set the payment date and type, use any discounts or credits, and make sure the correct payment account is selected.
When you're done, click Pay Selected Bills.
Enter a check mark next to the bills you're paying, and change the amount in the Amt. To Pay field at the end of the row if necessary.
Receiving Payments
Recording Customer Payments (and other receipts)
1) Receive the customer's payment in the Receive Payments screen
2) Repeat for all customer payments received today.3) QuickBooks holds all of the payments in the
Undeposited Funds account.4) In the Make Deposits screen, record all of today's
receipts. (Add any miscellaneous receipts.)5) The total amount in the Make Deposits screen must
total the amount of the bank deposit.
Tip:
If you use QuickBooks invoicing, be sure to use the Receive Payments screen to apply the customer to the invoice.
If you use the Make Deposits screen, QuickBooks won't mark the invoice as paid.
QuickBooks Data Files(for Windows)
.qbw
The primary QuickBooks data file.
.qbw .tlg file
Logs all changes to the company data file sincethe last successful QB backup.
If the connection to the company files is lost,QuickBooks will attempt to use this file torecover the lost data.
You should always backup before moving theQuickBooks data files.
.lgb file
Contains encrypted information about user names and passwords.
It is used when an application like QuickBooks Point of Sale connects automatically with the QuickBooks data file.
.nd
The network data file is a text file that keeps trackof open connections to the QuickBooks data filein multiuser environments.
Tip:
If no Network Data file exists, QuickBooks willautomatically recreate it next time QuickBooksis started.
Tip:
Recreating .nd files can resolve issues when the QuickBooks data file won't open
Common Errors:H 101H 202H 303H 505- 6189- 82
.qbbQuickBooks
backup files.Older copies
can be deleted when no longer needed.
(When you are sure that you have a good, more recent copy.)
.qbmPortable Company FileA compressed version of the company file (for
emailing or exchanging QuickBooks data).Portable company files are more compact than
backup files, so they can be easily emailed asattachments or copied onto another computer.
But they don't contain everything that backups do.They lack, for example, letters, logos,attachments, images and templates. Don't usethis option if changes will be made, since theycan't be merged back into the file.
\Attach folder
The attach folder contains all documents attachedto records in QuickBooks “local documentstorage.”
Accountant's Copy Data Files
QBX -Accountant's copy file – Export File that can besent to your accountant.
QBA - Accountant's copy working file – Created by theaccountant while working on your QuickBooks data.
QBY - Accountant's copy import file – Export file thatyour accountant creates to return their changes back toyou to import into your QuickBooks data file.
Condensing Your QuickBooks Data File
When you condense your QuickBooks data file:
QuickBooks deletes transactions that you select.
Transactions are replaced with your choice of:Summary Journal entryMonthly general journal entriesNo entries
Add-In’s
QuickBooks Contact Sync for Outlook
Free, down-loadable tool that synchronizes QuickBooks data with Outlook.Syncs Customers, Jobs & Vendors with
Outlook Contacts.Helps prevent duplicate and out-of-date
data.Customizable field mappings.
What You Can Synchronize
QuickBooks lets you synchronize three kinds of contact information with Outlook:
1.Customer contact information contained in your Customer & Jobs list
2.Vendor contact information from your Vendor list 3.Contact information on your Other Names list Note: You can’t synchronize employee contact
information.
After you’ve completed the first synchronization, you’ll need to perform a manual sync each time you want to make the databases match.
To do so, click the QuickBooks ContactSync menu in Outlook.
Prevent Winmail.dat file from being sent
This is a “known issue” without Outlook (Exchange server).It has been a known issue for many years.Issue is caused by Outlook/Exchange sending
Rich Text Format (RTF) data to a recipient that cannot receive RTF data.Uncheck Outlook option “Always Send to this
Recipient in Microsoft Exchange Rich-Text Format.”
Tracking Time
Time TrackingSetup QuickBooks for
Time Tracking:
FilePreferencesTime TrackingCompany
preferencesDo you track time:
Yes
Time Tracking allows you to:
Print reports showing time spent by jobAccumulate hours for employee payrollInvoice customers for time spent on jobs
Step 1: Enter Time on Time sheets
Go to:
Enter:• Employee name• Customer:Job• Service Item• Notes• Hours by day – billable?
• Employees• Enter time• Use weekly time sheet
Note: You can also use the Time/Enter Single Activity screen.
Your employees can use the free QuickBooks timer program to enter their own time and export it to you periodically:
• Even if they work remotely
• Even if they don't use QuickBooks
Step 2: Print & Review Time sheets.
• File• Print forms• Print time sheets
Step 3: Invoice for time
• Select Customers• Select Create Invoices• Select the customer:job• Click Add Time/Costs . . . button• Check the time entries to include on this invoice• Print or save the invoice.
When you create invoices, this box will open after you select a customer:
Select the entries should be invoiced.
If there are other costs that you covered, click the Expenses tab to see all transactions that you earmarked for this client on a bill, check or credit card.
You have the option here to mark up the cost by a percent or amount (even if you established this in Preferences), and to specify an account.
Do the same for Mileage, which you would have entered previously at Company | Enter Vehicle Mileage.
Then select any Items that you purchased for the customer
Step 4: Review Time Reports
• Time by name (employee)• Time by job summary• Billed/Unbilled Hours by person (employee) and job
Multi-User
QuickBooks Users
You should set up a user for everyone that uses QuickBooks (even if only one person uses it at a time).
Different user accounts allow you to track what changes are made by whom.
Users can set up different User Preferences.
• You must have one administrator• Your may set up other users with various access privileges• You may set up a user for your accountant (with the type
“External Accountants”)
Users can have Full or Selected accessYou can control access to:
• Sales & A/R• Purchases & A/P• Checking & Credit cards• Inventory• Time tracking• Payroll• Sensitive accounting activities• Sensitive financial reporting• Changing or deleting transactions
QuickBooks lets you specify which areas and functions individual users
can access.
QuickBooks Reports
QuickZoomWhen viewing a report:
Move the cursor over an amountThe normal cursor will change to a magnifying glass cursorDouble-click to view detail for the amount.
You can:
Change the dates on the reportCustomize to change the columns that show Change column widthPrint and/or memorize the report.
Customizing ReportsCustomize button (Modify report will display)
Display
Customize datesAdd/Delete columns shown on the report
Filters
Header/Footer
You can change report title (for example to includefilter information and other options.)
Fonts & Numbers
You may change fonts and other formatting
Company Preferences: Reports
Adjusting Column Widths
Drag the diamond icon between column headings to:• Change the column widths• Hide the column in the report
Memorized Reports
You can give your memorized report any name you want
Memorized Reports
Memorize reports that you will use again in the future.
Print Reports
Export Reports to Excel
You must have Excel installed on your computer to export in Excel format.
Year-End
Closing the Year
Some accounting programs require you toperform a year-end closing procedure that:
• Zeros out all income and expense accounts and adds the net income to retained earnings.
• Prevents you from entering transactions into prior years.
QuickBooks does NOT
This is a great feature, but it does have a downside.
Once formal financial statements have been distributed and/or tax returns have been filed for the year, you can NOT change prior year transactions.*
*Unless you are preparing revised financial statements and/or amended tax returns.
Closing Date Password
You can “prevent” changes to prior years by setting a closing date password.
You should do this after:• All accounts have been reviewed for correctness• Accounts have been reconciled• All year-end accountant's adjusting journal entries
(ex: depreciation) have been made
You may:• Use a secure password to prevent anyone from
changing prior year transactions• Use a non-secure password to allow changes, but
remind yourself/others that they may be causing significant issues that will have to be corrected later.
Note:
When a user attempts to change a prior-yeartransaction, QuickBooks will ask for the closingdate password before allowing the change to besaved.
Note:
Normally, you would select a closing date of12/31/11 when you are sure that 2011 data isfinal.
When I finish making year end adjustments to aclient's file I set a closing date password.
“OUCH”
I use OUCH in all capital letters and remind theclient that if they make a prior year change it willhurt both of us!
Closing Date Exception Report
You can use this report to determine if anyone has made changes to transactions subsequent to you specifying a closing date in the QuickBooks preferences.
To do so, choose Edit, and then Preferences. Next, choose Accounting, and then Company Preferences. Finally, click the Set Date/Password button, and then follow the onscreen prompts.
Now you can choose Reports, Accountant & Taxes, and then Closing Date Exception Report to monitor any changes to closed periods in QuickBooks.
Tax Line Mapping
1099’s
We use FileTaxes.com
Preferences
Customizing QuickBooks Preferences
Change Company/User PreferencesGo to:
• Edit– Preferences . . .
Each Preference option has preferences for:The current user logged in (each user may set their own
“My Preferences”)The current company (company preferences affect all
users)
Accounting
Bills
Calendar
Checking
Desktop View
Finance Charge
General
Integrated Applications
Items & Inventory
Jobs & Estimates
Multiple Currencies
Payments
Payroll & Employees
Reminders
Reports & Graphs
Sales & Customers
Sales Tax
Search
Send Forms
Service Connection
Spelling
Tax: 1099
Time & Expenses
Customizing QuickBooks
Custom Fields
QuickBooks allows you to add your own fields to:
You may add a total of 15 custom fields.
CustomersVendorsEmployeesItems
Customizing Forms
Some forms in QuickBooks allow you tocustomize the form to show or hide certain fieldsand rename how they appear on the form.
You can customize:• Invoices• Credit memos• Cash sales• Estimates• Purchase orders• Statements
Basic Customization
Layout Designer
Additional Customization
Customize Your Icon Bar
Memorized Transactions
Tracking Cash Expenses
Petty Cash - Traditional
• Maintain a cash fund ($100)• Reimburse cash expenditures from the cash
fund.• When funds are low ($10), write a check to
Cash (Petty Cash) and split the expenses ($90) among the appropriate accounts.
Petty Cash – Register Method
• Create a Bank account in QuickBooks for Petty Cash.
• Enter every transaction in the Register.• This allows you to track the Vendor and date.
Tip:
Use the “check number” to organize your receipts.
Write the “check number” on the receipt and file them in order.
Budgets
To get started, click on:• Company menu. • Select Planning &
Budgeting• Set Up BudgetsIf you’ve already set up a
budget, it will appear and you can edit it or create a new one.
If you haven’t created a budget, the Create a New Budget window opens.
Budgets in QuickBooks are account-based
It’s easy to make a global dollar amount or percentage change to a row.
The Budget vs. Actual report can show variances for any date range
that you choose
The Budget vs. Actual Graph is a great way to convert boring numbers into a visual representation of how
your business is doing.
Multiple Budgets
You can only create one budget per fiscal year for each account, customer or job, and class combination.
You can create budgets for individual customers, for example, and use some of the same accounts found in your overall company budget.
Other (Random) Tips
Most Shortcut Keys are Shown On the Menus
Getting ready to send an invoice but want to check a related transaction from the same job a few months ago? You could use the Find tool, which is a seriously
underused feature that can often answer a question quickly. But that takes a few clicks.
Instead, just hit Ctrl + L, and that Customer/Job screen pops open in the Customer Center.
Click Ctrl + E from that screen to see the Edit Job dialog box.
CTRL+Y on transaction screens will open the Transaction Journal, which shows you the behind-the-scenes debits and credits.
If the Account column is truncated, click and drag the little diamond symbol to the right.
Hit F2 while you're in QuickBooks, and you'll get the Product Information screen.
It'll tell you everything you want to know about your specific copy of QuickBooks, like your release and license number, the file size, number of users logged in, audit trail status and the total number of accounts, customers, employees, etc.
Press Ctrl-W to display the Write Checks windowPress Ctrl-I to display the Invoice window. Within a transaction window, press Ctrl-N to
create a new transaction, or Ctrl-P to print. Ctrl-Q allows you to create a QuickReport on a
selected transaction or list item. Ctrl-J will display the Customer Center, although
for some reason the Vendor and Employee centers don't currently warrant their own keyboard shortcuts.
Register TricksCtrl-R to display the Use Register windowAlt-Down Arrow to display the full listWithin a register, press Ctrl-PgUp to move to the first
previous month in the register, or Ctrl-PgDn to move to the next month in the register.
Ctrl-O to copy an entire transaction within a register, and then press Ctrl-V to paste a duplicate of copy.
Ctrl-E to edit a transaction in the register.Conversely, Ctrl-D allows you to delete transactions.
Ctrl-G for certain transfer transactions to view the register of the corresponding account. QuickBooks doesn't maintain a register for income and expense accounts, but you can use this to follow transfers between bank accounts, for instance.
Ctrl-H on certain transactions to view their transaction history, or Ctrl-Y to display a transaction journal. This is a report that shows you the debits and credits that comprise the transaction.
List Shortcuts
Only two lists have their own shortcuts: Ctrl-A for the Chart of Accounts, and Ctrl-T for the Memorized Transaction List. Use Ctrl-PgUp and Ctrl-PgDn to navigate to the
top or bottom of a list. Ctrl-E to edit a record within a list, or Ctrl-P to
print the entire list. Ctrl-D will delete a list item.
Date Shortcuts
Incremental dates (and check or invoice numbers, too) can be moved up or down by pressing the + and – keys. Laptop users can press the = key, instead of Shift-Equal to access the + sign.
Navigate forward and backward in time by keeping these three words in mind: week, month, and year. Press W to move back one week, or K to move forward one week. Do the same with M or H and Y or R to move forward or back one month or year at a time.
Within a date field, press Alt-Down Arrow to display the calendar without having to click with your mouse.
Other date tricks you may find helpful are pressing [ or ] (the square bracket keys) to move to the same date in the previous or next week, or ; and ' (the semicolon and apostrophe keys) to move to the same date in the previous or next month.
Just press T in a date field to return to today's date.
Sort Bank Rec Data
The Company Snapshot serves as an executive dashboard
Tip:
Be sure to never select the bank account on the expense account line of the Write Checks screen.
(This will cause the amount to go out of and immediately back into the bank account.)
You CAN select another bank account if you are making a transfer to another bank account.
Correcting Customer Payments
To correct an incorrect customer payment that has been included in a deposit:
• Delete the deposit• Correct the incorrect payment received• Create a new deposit
Bad Debts
Go to Receive PaymentsSelect the customerSelect the invoiceClick discount infoEnter the amount to be written-offChoose Bad Debt Expense for the discount account.
Pending Invoices(Back orders, Draft invoices)
Complete the invoice as normal
From the QuickBooks menu, click “Edit” then“Mark invoice as pending.”
To see a list of pending invoices,Go to:
ReportsSales reportsPending sales
QuickZoom
Click on (almost) any number on a report to seethe transaction detail.