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Quality Training Since 2001

QuickBooks Training Course 

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quickbooks-2014-training-tutorial

Course Title: Mastering QuickBooks Made Easy
Versions Covered: Pro 2014 & 2013
Hours of Content: 9
Video Lessons: 178
Manuals: 2 (Introductory & Advanced)
Download/DVD-ROM: Standard: $40 | CPE: $50 | Buy
Online: Access to ALL courses. One low price. | Info
Multi-User: Network Installation | Info
CPE Credits: CPAs (10) | Verify


Course Description

Learn QuickBooks Pro 2014 with this comprehensive course from TeachUcomp, Inc. Mastering QuickBooks Made Easy features 178 video lessons with over 9 hours of introductory through advanced instruction. Watch, listen and learn as your expert instructor guides you through each lesson step-by-step. During this media-rich learning experience, you will see each function performed just as if your instructor were there with you. Reinforce your learning with the text of our two printable classroom instruction manuals (Introductory and Advanced), additional images and practice exercises.  You will learn how to set up a QuickBooks company file,  pay employees and vendors, create custom reports, reconcile your accounts, use estimating, time tracking and much more.

Whether you are completely new to QuickBooks or upgrading from an older version, this course will empower you with the knowledge and skills necessary to be a proficient user. We have incorporated years of classroom training experience and teaching techniques to develop an easy-to-use course that you can customize to meet your personal learning needs.  Simply launch the easy-to-use interface, click to start a video lesson or open one of the manuals and you’re on your way to mastering QuickBooks.

 

Course Syllabus & Sample Lessons

Select any of the video lessons markedfreeto view them in a new window.

To view samples of the instruction manuals in PDF, click here: Introductory QuickBooks | Advanced QuickBooks

CHAPTER 1- The QuickBooks Environment
Lesson 1.1- The Home Page
Lesson 1.2- The Centers
Lesson 1.3- The Menu Bar and Keyboard Shortcuts
Lesson 1.4- The Open Window List
Lesson 1.5- The Icon Bar
Lesson 1.6- Customizing the Icon Bar
Lesson 1.7- The Chart of Accounts
Lesson 1.8- Accounting Methods
Lesson 1.9- Financial Reports
CHAPTER 2- Creating a QuickBooks Company File
Lesson 2.1- Using Express Start- 2014 free
Lesson 2.2- Using Express Start- 2013
Lesson 2.3- Using the EasyStep Interview free
Lesson 2.4- Returning to the Easy Step Interview
Lesson 2.5- Creating a Backup File
Lesson 2.6- Restoring a Backup File
Lesson 2.7- Setting Up Users
Lesson 2.8- Single and Multiple User Modes
Lesson 2.9- Closing Company Files
Lesson 2.10- Opening a Company File
CHAPTER 3- Using Lists
Lesson 3.1- Using Lists
Lesson 3.2- The Chart of Accounts free
Lesson 3.3- The Customers & Jobs List
Lesson 3.4- The Employees List
Lesson 3.5- The Vendors List
Lesson 3.6- Using Custom Fields
Lesson 3.7- Sorting List
Lesson 3.8- Inactivating and Reactivating List Items
Lesson 3.9- Printing Lists
Lesson 3.10- Renaming & Merging List Items
Lesson 3.11- Adding Multiple List Entries from Excel
CHAPTER 4- Setting Up Sales Tax
Lesson 4.1- The Sales Tax Process free
Lesson 4.2- Creating Tax Agencies free
Lesson 4.3- Creating Individual Sales Tax Items
Lesson 4.4- Creating a Sales Tax Group
Lesson 4.5- Setting Sales Tax Preferences
Lesson 4.6- Indicating Taxable & Non-taxable Customers and Items
CHAPTER 5- Setting Up Inventory Items
Lesson 5.1- Setting Up Inventory
Lesson 5.2- Creating Inventory Items
Lesson 5.3- Creating a Purchase Order free
Lesson 5.4- Receiving Items with a Bill free
Lesson 5.5- Entering Item Receipts
Lesson 5.6- Matching Bills to Item Receipts
Lesson 5.7- Adjusting Inventory
CHAPTER 6- Setting Up Other Items
Lesson 6.1- Service Items
Lesson 6.2- Non-Inventory Items
Lesson 6.3- Other Charges
Lesson 6.4- Subtotals
Lesson 6.5- Groups
Lesson 6.6- Discounts
Lesson 6.7- Payments
Lesson 6.8- Changing Item Prices
CHAPTER 7- Basic Sales
Lesson 7.1- Selecting a Sales Form
Lesson 7.2- Creating an Invoice
Lesson 7.3- Creating a Sales Receipt
Lesson 7.4- Finding Transaction Forms
Lesson 7.5- Previewing Sales Forms
Lesson 7.6- Printing Sales Forms
CHAPTER 8- Using Price Levels
Lesson 8.1- Using Price Levels
CHAPTER 9- Creating Billing Statements
Lesson 9.1- Setting Finance Charge Defaults
Lesson 9.2- Entering Statement Charges
Lesson 9.3- Applying Finance Charges and Creating Statements
CHAPTER 10- Payment Processing
Lesson 10.1- Recording Customer Payments
Lesson 10.2- Entering a Partial Payment
Lesson 10.3- Applying One Payment to Multiple Invoices
Lesson 10.4- Entering Overpayments
Lesson 10.5- Entering Down Payments or Prepayments
Lesson 10.6- Applying Customer Credits
Lesson 10.7- Making Deposits free
Lesson 10.8- Handling Bounced Checks- 2014 Only free
CHAPTER 11- Handling Refunds
Lesson 11.1- Creating a Credit Memo and Refund Check
Lesson 11.2- Refunding Customer Payments free
CHAPTER 12- Entering and Paying Bills
Lesson 12.1- Setting Billing Preferences
Lesson 12.2- Entering Bills
Lesson 12.3- Paying Bills
Lesson 12.4- Early Bill Payment Discounts
Lesson 12.5- Entering a Vendor Credit
Lesson 12.6- Applying a Vendor Credit
CHAPTER 13- Using Bank Accounts
Lesson 13.1- Using Registers
Lesson 13.2- Writing Checks
Lesson 13.3- Writing a Check for Inventory
Lesson 13.4- Printing Checks
Lesson 13.5- Transferring Funds
Lesson 13.6- Reconciling Accounts
Lesson 13.7- Voiding Checks
CHAPTER 14- Paying Sales Tax
Lesson 14.1- Sales Tax Reports
Lesson 14.2- Using the Sales Tax Payable Register
Lesson 14.3- Paying Your Tax Agencies
CHAPTER 15- Reporting
Lesson 15.1- Graph and Report Preferences
Lesson 15.2- Using QuickReports
Lesson 15.3- Using QuickZoom
Lesson 15.4- Using Preset Reports
Lesson 15.5- Modifying a Report
Lesson 15.6- Rearranging and Resizing Report Columns
Lesson 15.7- Memorizing a Report
Lesson 15.8- Memorized Report Groups
Lesson 15.9- Printing Reports
Lesson 15.10- Batch Printing Forms
Lesson 15.11- Exporting Reports to Excel
Lesson 15.12- Saving Forms and Reports as PDF Files
CHAPTER 16- Using Graphs
Lesson 16.1- Using Graphs
CHAPTER 17- Customizing Forms
Lesson 17.1- Creating New Form Templates
Lesson 17.2- Performing Basic Customization
Lesson 17.3- Performing Additional Customization
Lesson 17.4- The Layout Designer
Lesson 17.5- Changing the Grid and Margins in the Layout Designer
Lesson 17.6- Selecting Objects in the Layout Designer
Lesson 17.7- Moving and Resizing Objects in the Layout Designer
Lesson 17.8- Formatting Objects in the Layout Designer
Lesson 17.9- Copying Objects and Formatting in the Layout Designer
Lesson 17.10- Adding and Removing Objects in the Layout Designer
Lesson 17.11- Aligning and Stacking Objects in the Layout Designer
Lesson 17.12- Resizing Columns in the Layout Designer
CHAPTER 18- Estimating
Lesson 18.1- Creating a Job
Lesson 18.2- Creating an Estimate
Lesson 18.3- Duplicating Estimates
Lesson 18.4- Invoicing From Estimates
Lesson 18.5- Updating Job Statuses
Lesson 18.6- Inactivating Estimates
Lesson 18.7- Making Purchases for a Job
Lesson 18.8- Invoicing for Job Costs
Lesson 18.9- Using Job Reports
CHAPTER 19- Time Tracking
Lesson 19.1- Tracking Time and Printing a Blank Timesheet
Lesson 19.2- Weekly Timesheets
Lesson 19.3- Time/Enter Single Activity
Lesson 19.4- Invoicing from Time Data
Lesson 19.5- Using Time Reports
Lesson 19.6- Tracking Vehicle Mileage
Lesson 19.7- Charging Customers for Mileage
CHAPTER 20- Payroll
Lesson 20.1- The Payroll Process
Lesson 20.2- Creating Payroll Items
Lesson 20.3- Setting Employee Defaults
Lesson 20.4- Setting Up Employee Payroll Information
Lesson 20.5- Creating Payroll Schedules
Lesson 20.6- Creating Scheduled Paychecks
Lesson 20.7- Creating Unscheduled Paychecks
Lesson 20.8- Creating Termination Paychecks
Lesson 20.9- Voiding Paychecks
Lesson 20.10- Tracking Your Tax Liabilities
Lesson 20.11- Paying Your Payroll Tax Liabilities
Lesson 20.12- Adjusting Payroll Liabilities
Lesson 20.13- Entering Liability Refund Checks
Lesson 20.14- Process Payroll Forms
Lesson 20.15- Tracking Workers Compensation
CHAPTER 21- Using Credit Card Accounts
Lesson 21.1- Creating Credit Card Accounts
Lesson 21.2- Entering Credit Card Charges
Lesson 21.3- Reconciling and Paying Credit Cards
CHAPTER 22- Assets and Liabilities
Lesson 22.1- Assets and Liabilities
Lesson 22.2- Creating and Using an Other Current Asset Account
Lesson 22.3- Removing Value from Other Current Asset Accounts
Lesson 22.4- Creating Fixed Asset Accounts
Lesson 22.5- Setting the Original Cost of the Fixed Assets
Lesson 22.6- Tracking Depreciation
Lesson 22.7- Liability Accounts
Lesson 22.8- The Loan Manager
Lesson 22.9- The Fixed Asset Item List
CHAPTER 23- Equity Accounts
Lesson 23.1- Equity Accounts
Lesson 23.2- Recording an Owner’s Draw
Lesson 23.3- Recording a Capital Investment
CHAPTER 24- Writing Letters With QuickBooks
Lesson 24.1- Using the Letters and Envelopes Wizard
Lesson 24.2- Editing Letter Templates
CHAPTER 25- Company Management
Lesson 25.1- Viewing Your Company Information
Lesson 25.2- Setting Up Budgets
Lesson 25.3- Using the To Do List
Lesson 25.4- Using Reminders and Setting Preferences
Lesson 25.5- Making General Journal Entries
Lesson 25.6- Using the Cash Flow Projector
CHAPTER 26- Using QuickBooks Tools
Lesson 26.1- Company File Cleanup
Lesson 26.2- Exporting List Data to an IIF File
Lesson 26.3- Advanced Importing of Data
Lesson 26.4- Updating QuickBooks
Lesson 26.5- Using the Calculator
Lesson 26.6- Using the Portable Company Files
Lesson 26.7- Using the Calendar
CHAPTER 27- Using the Accountant’s Review
Lesson 27.1- Creating an Accountant’s Copy
Lesson 27.2- Transferring an Accountant’s Copy
Lesson 27.3- Importing Changes to Your Company File
Lesson 27.4- Removing Restrictions
CHAPTER 28- Using the Help Menu
Lesson 28.1- Using Help


QuickBooks Training Course Overview

Intuit‘s QuickBooks is the most popular small business accounting software on the market today. During this 9 hour QuickBooks video training course, our expert instructor will show you how to set up a QuickBooks company file, pay employees and vendors, create custom reports, reconcile your accounts, use estimating, time tracking and much more. This QuickBooks training course covers the same material as our two-day classroom training and was designed to provide a solid foundation in QuickBooks.

We offer two types of QuickBooks courses – Standard and CPE (Continuing Professional Education). The Standard training course includes all video lessons and printable classroom instruction manuals. The CPE edition includes the same training curriculum, plus a practice exam with evaluative feedback (find out why your answers are right or wrong), your final exam submission and a course certificate of completion. The QuickBooks CPE training course also qualifies for continuing education credit for CPAs (Certified Public Accountants) in certain states.

At TeachUcomp, Inc., you choose how you want your QuickBooks training delivered.

Online subscriptions offer the most flexibility and value. With online training, you can access your courses anytime and anywhere you have an internet connection (including all new releases and updates). Your subscription grants you instant access to ALL of our courses for one low price. There are no contracts and you can cancel at any time. You may choose between a monthly or annual plan.

Courses are also available individually via digital download or DVD-ROM for a one-time charge.

1.1- The Home Page:

QuickBooks Pro displays the “Home Page” when you open a company file. The Home Page provides a starting point that allows you to access many of the most commonly used features of the program. It also shows an overview of the relationships between the various windows within the QuickBooks Pro application.

The Home Page is displayed by default whenever you open a new company file, but you can close it by clicking the small “X” in the upper right corner of the Home Page. You can redisplay the Home Page by clicking the “Home” button within the Icon Bar or by selecting “Company| Home Page” from the Menu Bar.

The Home Page displays icons that show the sequence of activities often performed when using QuickBooks. Each activity is shown as an icon within a diagram of related activities underneath a general heading, such as “Customers” or “Vendors,” shown at the top of each section. New users will want to note that the flow of activities shown here is a really great way to begin learning how QuickBooks is commonly used within businesses.

For example, if you open the “sample product-based business” company file that is included with any version of QuickBooks Pro in order to examine its Home Page, you can see the different ways that the sample company can collect money from its customers illustrated within the “Customers” section of the Home Page. Studying the relationships between the icons can assist new users in figuring out how to use the program by showing the order in which the associated tasks should be performed.

You should also note that the icons shown within the Home Page can change, depending upon which features of QuickBooks are enabled or disabled within the currently opened company file. These features are often set when the user creates the company file using either the “Express Start” or “EasyStep Interview.” For example, if you indicated that your company doesn’t use estimates when creating your company file, then you will not have the “Estimates” icon within your company file’s Home Page once you have finished creating the company file. You can, however, also manually enable or disable features of QuickBooks after creating a company file, which can also change the icons shown within the Home Page.

The most important feature of the Home Page is that you can easily click the icons shown within it to open the related window. For example, clicking the “Create Invoices” icon will open the “Create Invoices” window. This allows you to have quick access to the various windows within the QuickBooks application.

1.2- The Centers:

In QuickBooks you have access to four main “Centers” within the program when a company file is opened. These “Centers” are the “Customer Center,” the “Vendor Center,” the “Employee/Payroll Center,” and the “Report Center.” These centers allow you to perform many tasks associated with the topic of each center. For example, you can add new customers to your company file through the Customer Center. We will examine the tasks that you can perform within the centers later in this tutorial in their associated chapters- however, you should learn how to access the centers now.

You can open the center in many ways within QuickBooks. For example, you can open many of the centers through the Home Page in QuickBooks. At the top of three of the sections within the Home Page, you can click the “Employees,” “Customers,” or “Vendors” buttons to open the associated center. Each center will appear in its own window, which you can close by clicking the “X” in the upper right corner of the page when you are finished using it.

You can also open a center by clicking the associated button, like “Customers,” located within the Icon Bar in QuickBooks. If you prefer to use the Menu Bar, you can also access each center under the associated command category within the Menu Bar. So, for example, you can access the Customer Center by selecting “Customers| Customer Center” from the Menu Bar.

1.3- The Menu Bar and Keyboard Shortcuts:

QuickBooks comes with a handy Menu Bar at the top of the application window that can be used to quickly access all of the commands and features within the program. To perform a command, click the Menu Bar command category, like “File,” “Edit,” or “Lists,” to display a drop-down menu of the specific sub-commands within the selected command category. You can then click on the desired sub-command to execute within the drop-down menu.

You can also use keyboard shortcuts to perform different commands in QuickBooks. The keyboard shortcuts are always listed in the Menu Bar to the right of the specific command to which they correspond. For example, if you click the “Lists” command within the Menu Bar you can see the keyboard shortcut for the “Chart of Accounts” command, which is “Ctrl+A” on the keyboard. You can then click away from the Menu Bar drop-down menu in order to retract it. Next, hold down the “Ctrl” key on the keyboard and then strike the “A” key on the keyboard to bring up the Chart of Accounts. If your goal is to become faster using QuickBooks, then learning your keyboard shortcuts will assist you. Another handy shortcut is pressing the “Esc” key in the upper left corner of your keyboard; this action closes the active window.

Also notice that not every command within the Menu Bar has a corresponding keyboard shortcut. For example, if you click the “Lists” command in the Menu Bar to display the drop-down menu, you can see that a command like “Item List” does not have a keyboard shortcut. However, there is a keystroke combination that you can perform to access the command. If you press the “Alt” key on your keyboard and then examine the Menu Bar, you will see that each command category (like “File” or “Edit”) has a single underlined letter- for example the “F” in “File,” and the “V” in the “View” command. If you hold down the “Alt” key on your keyboard and strike the underlined letter for the corresponding command category, you’ll see its drop-down menu appear. At that point if you examine the sub-commands in the drop-down menu, you’ll notice that each one of the subcommands also has a single letter underlined. At this point, you no longer have to hold down the “Alt” key, you can just strike the key on your keyboard that corresponds to the underlined letter of the subcommand that you would like to execute. So, using the example of accessing the Item List, you could simply hold down “Alt”+“L” and then strike the letter “I” on the keyboard to access the Item List. You’ll find that every command has a keyboard shortcut if you follow this method!

1.4- The Open Windows List:

In QuickBooks, you enter information and perform tasks within many different windows. Unless you close the windows after using them, they will stay opened within the application. You can view a listing of the opened windows within QuickBooks to quickly switch between opened windows in the program. This listing is called the “Open Windows” list. This feature allows you to easily switch between opened windows without having to open and close them repeatedly while working.

You can see the “Open Windows” list within the Icon Bar if the Icon Bar is placed at the left side of the application window by clicking the “Open Windows” button within the Icon Bar. The section at the top of the Icon Bar will then display the names of any opened windows. You can then click on the names of the windows within this list to toggle between them.

If you have the Icon Bar placedat the top of the QuickBooks application window, then the method of viewing the “Open Windows” list is slightly different. In this case, you can toggle the display of the “Open Windows” List on and off by selecting “View| Open Window List” from the Menu Bar. Doing this will show and hide a pane at the left side of the screen which shows the windows opened within the program. You can click on the name of a window shown in the list to bring that screen to the foreground of the stack of open windows in QuickBooks.

1.5- The Icon Bar:

Another tool you have to help you complete the most common tasks in QuickBooks is the Icon Bar. By default, the Icon Bar is located at the left side of the QuickBooks window, however, you can also place it at the top of the window if you prefer. Note that changing its placement does impact some of its functionality in QuickBooks. You can also turn the Icon Bar on and off entirely, if preferred.

When placed at the left side of the QuickBooks window, you will see the “Search” box shown at the top of the Icon Bar. Below that section you will see the icons of whichever section you have selected from the listing towards the bottom of the Icon Bar. You can click one of the choices to change the icons that are displayed. The choices are: “My Shortcuts,” “View Balances,” “Run Favorite Reports,” and “Open Windows.” When placed at the top of the QuickBooks application window, you will only see the icons available for the “My Shortcuts” section, followed by the “Search” text box.

To change the placement of the Icon Bar, or to change its visibility, select the “View” command in the Menu Bar. You can then select the “Top Icon Bar” command to place it at the top of the window, “Left Icon Bar” to place it at the left side of the window, or “Hide Icon Bar” to hide it. You can choose to display it again, if hidden, by selecting either the “Top Icon Bar” or “Left Icon Bar” to enable its display and placement.

The Icon Bar contains buttons that give convenient access to some of the most frequently used features of QuickBooks. You can hold your mouse pointer over any button without moving to view the description of the button appear in a little box called a “screen tip.” You can customize the buttons within the “My Shortcuts” section of the Icon Bar to add or remove whatever buttons you want. To use the Icon Bar, click a button to open the associated window. For example, to open the “Home Page,” just click the “Home” button in the Icon Bar.

1.6- Customizing the Icon Bar:

You can customize the Icon Bar by adding and removing buttons. To do this, select “View| Customize Icon Bar…” from the Menu Bar to open the “Customize Icon Bar” window. In the left window pane, you’ll see all your current icon choices. To add a new one, click the “Add…” button at the right side of this window to open the “Add Icon Bar Item” window. Click the feature for which you would like to add a button from the list of choices shown in the box at the left side of this window. Then, from the scroll box at the right, select the icon to represent that function within the Icon Bar. To the right of that, there are two text boxes where you can edit the button’s label and the description displayed in the “screen tip” for the button. Then click the “OK” button to add that selected feature and icon to the Icon Bar. You can then see the new feature appear in the scroll box at the left side of the “Customize Icon Bar” window. It will also immediately appear in the Icon Bar, as well. Then you can simply click the “OK” button to close the “Customize Icon Bar” window. Then you can click on the new button to use the newly added feature.

To remove a button from the Icon Bar, select “View| Customize Icon Bar…” from the Menu Bar. In the “Customize Icon Bar” window, select the icon you would like to remove from the scroll box at the left, and simply click the “Delete” button at the right side of the “Customize Icon Bar” window. The button should disappear, and you can simply click the “OK” button to save your changes.

You can also add a button to the Icon Bar for any screen currently displayed in the QuickBooks window. To do this, first open the window for which you want to add an Icon Bar button, and then select “View| Add (Window Name) to the Icon Bar…” from the Menu Bar, where (Window Name) is the name of the currently opened window. In the dialog box that appears, you can then set the label and icon you wish to use for that window’s button in the Icon Bar. Then click the “OK” button to add it to the Icon Bar. This is a handy way to add icons to the Icon Bar for frequently accessed screens as you are using them.

1.7- The Chart of Accounts:

Although you do not have to be fluent in accounting terminology to understand QuickBooks, it is necessary to have a basic understanding of some concepts prior to entering information into the program. The first concept is the “Chart of Accounts.” A chart of accounts is a listing of all of the accounts used in your company file. You can bring up your chart of accounts by selecting “Lists| Chart of Accounts” from the Menu Bar. Your chart of accounts shows the names of the different accounts used by your company, the account type (like “Income,” “Bank,” or one of the many other account types), and also the current balance of the account. There is a column called “Attach,” which shows any attached documents associated with the account. The “Document Management Service” that provides the ability to add attachments to accounts is a service that you must purchase separately from QuickBooks.

Next, let’s examine the different general account types found within the Chart of Accounts and how they are organized. The Chart of Accounts has a default sorting method: assets at the top, followed by liabilities, then equity. These accounts are also shown in the “Balance Sheet” report for your company.

Following those accounts within the chart of accounts window are the income accounts followed by the expense accounts. These are the accounts appear within the “Profit & Loss” report.

At the bottom of the Chart of Accounts are accounts for non-posting transactions, like purchase orders and estimates. Let’s review the different account types in the chart of accounts.

As mentioned before, at the top of the “Chart of Accounts” window you will see the Balance Sheet accounts, which appear on the Balance Sheet for your company file. These accounts show what you own (assets), what you owe (liabilities), and the difference (equity).Below those accounts you find the Income and Expense accounts, which track where money comes from, and what it is spent on, respectively.

Each of the Balance Sheet accounts has a register associated with it. Unlike the Balance Sheet accounts, the Income and Expense accounts each have a report that lists the transactions associated with the account. We will look at these types of accounts in more detail in later chapters, but here is a general list of the different types of accounts and whether they are appear in the Balance Sheet or the Profit & Loss Statement within QuickBooks.

1.8- Accounting Methods:

Once you begin your business, you need to decide which bookkeeping method to use- “Cash” or “Accrual.” This will determine the method used to report income and expenses on your tax forms. Please check with your accountant, tax advisor, or the IRS before choosing a bookkeeping method for tax purposes. It is important to note that when you create reports in QuickBooks, you can switch between the “Cash” and “Accrual” method at any time to see how it impacts the results, regardless of which bookkeeping method you have chosen for tax purposes. Also, regardless of how you decide to set up your reports, you always record the business transactions in the same way in QuickBooks.

1.9- Financial Reports:

You also need to know how to measure your business profitability. Two very important reports that assist you in figuring this out are the Balance Sheet and the Profit and Loss Statement (also called an Income Statement). These are most often the reports that will be requested by banks and CPA’s.

Another commonly requested report is the Statement of Cash Flows. Many people will use this to determine the stability of your cash flow (money coming in and going out of your business). This report shows money received and payments made during a specific accounting period.

2.1- Using Express Start- 2014:

You can use the Express Start feature to create a new company file. This feature simplifies and segments the steps in the EasyStep Interview into more manageable sections, so you can get started with QuickBooks more quickly. When you first open QuickBooks, the option to create a company file using the Express Start feature is displayed in the “QuickBooks Setup” screen. Note that this is the same screen that opens if you select “File| New Company…” from the Menu Bar or simply click the “Create a new company” button shown in the “No Company Open” window. If you wish to use the Express Start feature, then click the “Express Start” button within the “QuickBooks Setup” screen to begin.

Also note that for advanced features and setup, you can still use the EasyStep Interview to more thoroughly customize your company file at startup. To do this, simply click the “Advanced Setup” button that is shown within the “QuickBooks Setup” screen, instead. You can then use the EasyStep Interview, which we will discuss in a later lesson, to create your company file.

In the first Express Start screen, enter your Intuit ID or e-mail address associated with your Intuit ID into the “Email Address” field. You must be connected to the internet for this part of the company file setup. If you do not have an Intuit account, enter the business e-mail address you want to associate with your Intuit account. The account will then be created during this part of the process. The Inuit account links you to goods and services available through Intuit. Once you have entered your e-mail address, click the “Validate” button to continue.

If you have an Inuit account, enter the associated password for the account or enter a new password for the account if creating a new Inuit account. To create both a local and online copy of your company file so you can use QuickBooks online, leave the check in the checkbox for “Set up my company file locally and on Intuit’s servers so that I can access QuickBooks features online.” This is an optional step that will make a copy of your company file on both your local machine as well as on an Inuit server, which you can sync to use QuickBooks features online. If you do NOT want this to occur, uncheck the checkbox before clicking the “Continue” button. When you are ready to proceed, click the “Continue” button.

In this screen, enter your company’s name as you wish it to appear to customers and vendors. Note that if you use a different name for legal and tax filings, you will actually enter that name in the third Express Start screen.

Next click the “Help me choose” hyperlink next to the “Industry” text box to open the “Select Your Industry” window. This window allows you to select your company file’s industry. Note that the industry choice will impact which features of QuickBooks are enabled and disabled as well as determine the initial chart of accounts used by your company file. You can also change these settings later, if needed. Within this window, scroll through the “Industry” list in the lower left corner until you find the industry type that most closely matches the type of business that you operate. Then click on the industry to select it. The chart of accounts for the selected type of industry will appear in the window to the right for you to review, if desired. Note that if you cannot find a specific match, you can select the “General Product-based Business” or “General Service-based Business” choices. Note that you should only choose the “Other/None” option if you wish to create all of the accounts used by your company file manually by yourself or with your accountant. Once you have made your industry selection, you can then click the “OK” button to return to the Express Start screen.

Next, use the “Company Type” drop-down to select the legal structure of your company file. This determines the tax-related settings for your company file. You then enter your company’s FEIN (Federal Employer Identification Number) or your social security number into the “Tax ID #” field. You can then answer the “Do you have Employees?” question by selecting a choice from the adjacent drop-down menu. When finished, click the “Continue” button to move to the third Express Start screen.

In the third “Express Start” screen, you can enter your company’s “Legal Name” used for legal and tax filings if it differs from the “Company Name” that you entered in the previous screen. Then enter your company file’s address information into the “Address,” “City,” State,” “ZIP,” and “Country” fields provided. You can also enter the company’s “Phone,” “Email,” and “Website” into the fields of the same name.

When finished on this screen, you can click the “Preview Your Settings” button to open the “Preview Your Company Settings” window where you can review your company file’s default settings. On the “Features Selected” tab you can see which features will be turned on and off, by default. Note you can change these later, if needed.

You can click the “Chart of Accounts” tab to review the accounts that will be used by your company file. You can check any accounts you wish to add, or remove the check from the checkbox for any accounts you want to remove.

You can click the “Company File Location” tab to view the directory where QuickBooks will save your company file. If needed, you can click the “Change Location” button to open a “Browse for Folder” window that you can use to select a different file locationto which to save the local copy of the company file.

When finished, click the “OK” button within the “Preview Your Company Settings” window to return to the Express Start screen. Then click the “Create Company File” button to create your company file. After creating the company file, you can then add the customers, products and services, and bank accounts used by your company by clicking the “Add” button in the respective sections. We will examine doing this in later chapters.

2.2- Using Express Start- 2013:

You can use the Express Start feature to create a new company file. This feature simplifies and segments the steps in the EasyStep Interview into more manageable sections, so you can get started with QuickBooks more quickly. When you first open QuickBooks, the option to create a company file using the Express Start feature is displayed in the “QuickBooks Setup” screen. Note that this is the same screen that opens if you select “File| New Company…” from the Menu Bar or simply click the “Create a new company” button shown in the “No Company Open” window. If you wish to use the Express Start feature, then click the “Express Start” button within the “QuickBooks Setup” screen to begin.

Also note that for advanced features and setup, you can still use the EasyStep Interview to more thoroughly customize your company file at startup. To do this, simply click the “Advanced Setup” button that is shown within the “QuickBooks Setup” screen, instead. You can then use the EasyStep Interview, which we will discuss in the next lesson, to create your company file.

In the first Express Start screen, enter your company’s name as you wish it to appear to customers and vendors. Note that if you use a different name for legal and tax filings, you will actually enter that name in the third Express Start screen.

Next click the “Help me choose” hyperlink next to the “Industry” text box to open the “Select Your Industry” window. This window allows you to select your company file’s industry. Note that the industry choice will impact which features of QuickBooks are enabled and disabled as well as determine the initial chart of accounts used by your company file. You can also change these settings later, if needed. Within this window, scroll through the “Industry” list in the lower left corner until you find the industry type that most closely matches the type of business that you operate. Then click on the industry to select it. The chart of accounts for the selected type of industry will appear in the window to the right for you to review, if desired. Note that if you cannot find a specific match, you can select the “General Product-based Business” or “General Service-based Business” choices. Note that you should only choose the “Other/None” option if you wish to create all of the accounts used by your company file manually by yourself or with your accountant. Once you have made your industry selection, you can then click the “OK” button to return to the Express Start screen.

Next, use the “Company Type” drop-down to select the legal structure of your company file. This determines the tax-related settings for your company file. You then enter your company’s FEIN (Federal Employer Identification Number) or your social security number into the “Tax ID #” field. Then use the “Do you have employees?” drop-down to answer that question. When finished, click the “Continue” button to move to the second Express Start screen.

In this screen, you can enter your Intuit ID or the e-mail address associated with your Intuit ID into the “Email Address” field. Note that you must be connected to the internet for this part of the company file setup. If you do not have an Intuit account yet, then enter the business e-mail address you want to associate with your Intuit account. The account will then be created during this part of the process. The Inuit account links you to goods and services available through Intuit. Once you have entered your e-mail address, click the “Validate” button to continue. If you already have an Inuit account, then enter the associated password for the account or enter a new password for the account if creating a new Inuit account. If you want to create both a local and online copy of your company file so that you can use QuickBooks online, then leave the check in the checkbox for “Set up my company file locally and on Intuit’s servers so that I can access QuickBooks features online.” This is an optional step that will make a copy of your company file on both your local machine as well as on an Inuit server, which you can then sync in order to use QuickBooks features online. If you do NOT want this to occur, then uncheck the checkbox before clicking the “Continue” button. When you are ready to proceed, click the “Continue” button.

In the third “Express Start” screen, you can enter your company’s “Legal Name” used for legal and tax filings if it differs from the “Company Name” that you entered in the first screen. Then enter your company file’s address information into the fields provided. You can also enter the company’s “Phone,” “Email,” and “Website” into the indicated fields of the same name.

When finished on this screen, you can click the “Preview Your Settings” button to open the “Preview Your Company Settings” window where you can review your company file’s default settings. On the “Features Selected” tab you can see which features will be turned on and off, by default. Note you can change these later, if needed.

You can click the “Chart of Accounts” tab to review the accounts that will be used by your company file. You can check any accounts you wish to add, or remove the check from the checkbox for any accounts you want to remove.

You can click the “Company File Location” tab to view the directory where QuickBooks will save your company file. If needed, you can click the “Change Location” button to open a “Browse for Folder” window that you can use to select a different file locationto which to save the local copy of the company file.

When finished, click the “OK” button within the “Preview Your Company Settings” window to return to the Express Start screen. Then click the “Create Company File” button to create your company file. After creating the company file, you can then add the customers, products and services, and bank accounts used by your company by clicking the “Add” button in the respective sections. We will examine doing this in later chapters.

2.3- Using the EasyStep Interview:

In QuickBooks, you can also use the EasyStep Interview to create a company file. You complete the EasyStep Interview by entering information into different screens shown within the Interview. After entering information into a screen, you click the “Next >” button to proceed to the next screen and repeat the process. After answering all questions within all screens, you can click the “Go To Setup” button to start using QuickBooks.

Within the EasyStep Interview, if questions arise that you must answer and you are unsure of the correct answer, don’t worry! You can go usually go back and change your answers later. In most screens, you can click the “< Back” button to return to a previous screen and change your answers. Also, if necessary, you can click the “Leave…” button to exit the EasyStep Interview. However, if you leave the EasyStep Interview prior to actually saving your company file, your data entry up until that point will be lost. A message box will inform you if this is the case before you exit, so you need not worry about losing your data entry.

If you are new to QuickBooks, you should consider creating a company file that is not your actual company file, but is similar in nature: a “dummy” company. That way, you can practice creating transactions you would be likely to enter into your own company file without placing your own real company file data in jeopardy. You can create as many company files in QuickBooks as you would like. Also, if you set up a fake company file, it can be easier to train others in your company in the basic bookkeeping involved with the company without risking the integrity of your actual company’s data file.

Before entering data into the EasyStep Interview, you need to gather some information. First, and most importantly, you need to select a “start date” for your QuickBooks company file. The start date is the date as of which you will enter all of the balances in the accounts used by your company file. Because of this, you may want to pick a date that isn’t too far in the past, since you need to record each transaction that has occurred from the start date through the current date to ensure you create a company file that is both financially accurate and also ready for daily data entry.

Many people choose the last day of the previous financial period, such as a quarter or month, as the start date. Remember you have to enter all of the transactions that have occurred from the start date through the current date, or at least enter accurate journal entries representing those transaction values, to use the company file and have accurate balances. So don’t go too far into the past if you don’t want to spend hours performing data entry!

You also need to know the account balances of your checking, savings, and any other accounts within the company file as of the start date. This can often be found on a balance sheet created as of the start date. If that isn’t available, bank statements as of the start date can also be used.

You also need to have a Federal Employer Identification Number (FEIN) or the Social Security Number found on your company’s tax returns. Once you have all of this information, you can start the EasyStep Interview.

To create a company file in QuickBooks, select “File| New Company…” from the Menu Bar or click the “Create a new company” button in the “No Company Open” dialog box that appears in QuickBooks when there is no company file opened to open the “QuickBooks Setup” window. Click the “Advanced Setup” button within this window to open the EasyStep Interview.

Within the EasyStep Interview, you can see the “Interview Progress” meter at the left side of the screen. As you complete the screens in the EasyStep Interview, your overall progress is reflected within this meter. In the first screen, labeled “Enter your company information,” you enter information about your company. Required fields are noted by a red asterisk to the left of the field name. Begin by entering the name of your company into the “Company name” field. You can then move to the next field by simply pressing the “Tab” key on your keyboard or by clicking into the next field with your mouse. The next field is the “Legal name” field. This is most often the same thing as your “Company name” field, but can be different for DBA businesses. If you have a question about this field, you can click the “Explain” hyperlink to show an associated help file explaining this field’s purpose in a new window. You can read this and close it when finished. This type of assistance is everywhere in the EasyStep Interview, and is found generally throughout the QuickBooks application. For example, you can click the “Get answers” hyperlink in the upper right corner of any screen within the EasyStep Interview to open an associated help file regarding the content that is entered into that particular screen. Once again, you can read this information and close it when you are finished. Help like this is woven throughout the program, so it is almost always available for any screen in QuickBooks! This is just another great aspect of using this program.

Next, enter either your FEIN or Social Security Number, as appropriate, into the “Tax ID” field. Then enter your complete street address into the “Street address” field set. Enter your city into the “City” field. Then select the abbreviation for your state from the “State” drop-down menu. Next enter your zip code into the “Zip” field. Select your country from the “Country” drop-down menu, if necessary. Enter your phone number and fax number, if desired, into the “Phone” and “Fax” fields using the formatting you want displayed on your forms within QuickBooks, like invoices for example. You can enter a default e-mail address for the company into the “E-mail address” field. You can also enter the website address of your company into the “Web site” field, if you would like. Once you have finished entering data into this screen, click the “Next >” button to continue.

In the next screen, titled “Select your industry,” you select the type of company for which you are creating a company file from the list of choices shown. The choice you make here determines which features are enabled and which default accounts are placed into your chart of accounts. You can always customize these features later, but selecting an industry from the list will typically reduce the amount of customization required. If your specific industry isn’t listed, either select the closest industry listed or select “General Product-based business” or “General Service-based business” from the list of choices. An important point to note is that the answer you make here will change what questions the EasyStep Interview will pose to you as you continue. So, the questions posed to an individual who selects “Retail Shop or Online Commerce” will be different from an individual who selects “Church or Religious Organization.” For example, setting up sales tax would be a part of the EasyStep Interview for the “Retail Shop or Online Commerce” selection, but not for the “Church or Religious Organization” selection.After making your industry selection, click the “Next >” button to continue.

The next screen asks how your company is organized. Select the option button that corresponds to the legal structure of your company. This assists QuickBooks in choosing accounts for your company’s chart of accounts and also in assigning accounts to tax form lines. Once you have made your selection, click the “Next >” button to continue.

In the next screen you select the first month of your fiscal year from the drop-down menu shown. Your fiscal year is quite often the same as your tax year. A fiscal year is simply a 12-month period used for reporting a company’s financial status. For many companies, the first month of the fiscal year is “January.” This allows them to have the fiscal year coincide with the income tax year. Once you have selected the first month in your fiscal year, click the “Next >” button to continue.

In the next screen, titled “Set up your administrator password,” you can create a password for the “Administrator” account of your company file. The “Administrator” account has access to all of your company’s financial information. This is an optional step, and you can create users and assign access privileges at any time. However, if you wish to create a password for the “Administrator” account, you can enter it into both the “Administrator password” and “Retype password” fields. If you do this, make sure that you know what this password is. Also, note that passwords you create are case-sensitive. When you are ready, click the “Next >” button to continue.

In the next screen, called “Create your company file,” you create the actual QuickBooks company file that you will use. This is when you decide what to name the company file, and where you will save it. Note this information, as you will most likely need it later. When you are ready to save the company file, you can click the “Next >” button to continue. This will launch the “Filename for New Company” dialog box. This is a standard Windows “Save As” dialog box. So, you use it to select the folder into which you want to save the company file. Once you have selected where you want to save the company file, you can then enter the name that you want to give to the company file into the “File name:” field. This defaults to the name of the company, but you can change it if needed. Once you know where you will save the file and what you will name it, click the “Save” button to save the company file and return to the EasyStep Interview.

The next screen you will see in the EasyStep Interview is the “Customizing QuickBooks for your business” screen. This screen informs you that the next several screens will customize your QuickBooks company file by asking you questions about your company, your customers, and how you pay your bills. At this point and hereafter, you can click the “Leave…” button in the lower left corner of the EasyStep Interview screen to save your progress and return later to complete the EasyStep Interview, if needed. Once you are ready to continue, click the “Next >” button.

Next, for your industry selection, the EasyStep Interview shows a series of screens that allow you to customize your company file for your industry type. Answer any questions posed in each screen and then click the “Next >” button to continue until you have finished customizing your company file.

When you have finished answering all of the questions in the EasyStep Interview, you will see the final congratulations screen. Click the “Go To Setup” button to open a window that instructs you to create your customers, inventory, and vendors. You can close this window when you are finished reviewing the next steps that you should take to complete setting up your company file.

2.4- Returning to the EasyStep Interview:

You can leave the EasyStep Interview at any point after you have saved the company file by clicking the “Leave…” button in the lower left corner of the EasyStep Interview. When you return at a later point to continue filling out the EasyStep Interview (which can be a lengthy process), just opening the company file will automatically return you to the point at which you left off in the EasyStep Interview. However, once you have completed the EasyStep Interview you cannot return to the EasyStep Interview again. From that point on, you can only change the default preferences of the program by selecting “Edit| Preferences…” from the Menu Bar and then changing the settings shown in the “Preferences” dialog box.

2.5- Creating a Local Backup Copy:

You should always backup your data to prevent data loss. You must be in single-user mode to do this. QuickBooks recommends that you backup your files daily. That way, if the data in your company file becomes corrupted or lost, you can restore a copy of the file from a backup. After restoring the file, you will need to re-enter all of the transactions that you entered since that date that you created the backup file up through the current date in order to make your company file current. However, that is far less work than having to re-create the entire company file again.

In QuickBooks, you have the option to create both “local” and “online” backup copies of your company file. The “online” option allows you to create backup copies of your company file on Inuit’s servers. This is, however, a fee-based service that you will need to purchase separately. You can create “local” backup copies for free within the software and simply store them off-site for added security, if desired.

To create a local backup copy of the current company file in QuickBooks, select “File| Back Up Company| Create Local Backup” from the Menu Bar to open the “Create Backup” window. The option button for “Local backup” should already be selected within the initial screen.

Click the “Options” button at the bottom of the screen to open the “Backup Options” window where you can specify the settings of your local backup copy. In the “Local backup only” section, enter the pathway or folder directory where you want to store the backup copy. You can click the “Browse…” button to open a “Browse for Folder” dialog box that allows you to visually select the location into which you want to save the backup copy. Once you have selected the folder or drive where you want to save the backup copy within the “Browse for Folder” dialog box, click the “OK” button to close the dialog box. Your selection will then appear in the “Tell us where to save your backup copies (required)” field in the “Backup Options” window. You can then check or uncheck either of the two checkbox options shown in the “Local backup only” section of the window, if desired. The first checkbox, labeled “Add the date and time of the backup to the file name (recommended),” will add those elements to the copy of the backup file that is created so that you can tell when the copy was made. The second checkbox, labeled “Limit the number of backup copies in this folder to,” will limit the number of backup copies within the selected folder to a number that you enter.

In the “Online and local backup” section, you can check the checkbox shown to set QuickBooks to remind you to create a backup copy after you close the company file a specified number of times, if desired. You can also select the option button that shows what type of data verification to perform on the information within the backup copy that you create. This ensures that your backup copy is free from data corruption. Once you have made your choices in the “Backup Options” window, click the “OK” button to close the window, and return to the “Create Backup” window. Then click the “Next” button to continue.

In the next screen, you choose when you want to create the local backup copy. To create a local backup copy immediately, select the “Save it now” option button. To save a copy right now and also set a schedule for future backup times, choose the “Save it now and schedule future backups” option button. To only schedule future backups, choose the “Only schedule future backups” option button.

Once you have made your selection, click the “Next” button to continue. If you are saving a local backup copy right now, then QuickBooks will open the “Save Backup Copy” dialog box. Here you can change the file name or destination folder of the backup copy, if desired. Note that it defaults to saving into the folder you selected earlier in the “Backup Options” window. When you are ready to create the local backup copy, click the “Save” button. Once QuickBooks has finished creating the local backup copy, it will display a small message box informing you of its success. You can then click the “OK” button to dismiss the message box.

2.6- Restoring a Company File from a Local Backup Copy:

If you corrupt your company’s data file and need to restore the data from a local backup copy, you can- as long as you created local backup copies. You must, however, be in single-user mode to do this. When you restore your company file, you overwrite your corrupted company data with the data that you saved when you created the local backup copy. You will then have to re-enter all of the transactions that occurred since the date that you created the backup copy up through the current day to bring your company file up to date.

To restore a corrupted company file from a backup copy, select “File| Open or Restore Company…” from the Menu Bar. In this situation, you want to restore your data from a backup copy. So select the “Restore a backup copy” option button. Then click the “Next” button to continue.

The next window asks where the backup copy that you want to use is saved. Select the “Local backup” option button if you are using a local backup copy saved to your network or to removable media. If you saved the backup copy online using that feature, then select the “Online backup” option button. For this example, we will select the “Local backup” option. Once you have made your choice, click the “Next” button to continue.

QuickBooks will next open the “Open Backup Copy” dialog box. Use this dialog box to navigate to and then select the local backup copy that you want to use for the restore process. Once you have selected the file to use, click the “Open” button within the “Open Backup Copy” dialog box to return to the “Open or Restore Company” window. Then click the “Next” button to continue.

You will next need to select the file that you wish to overwrite with the selected backup copy. In the “Save Company File As” dialog box that appears, navigate to and then select the company file that you want to overwrite with data from your previously selected backup copy. Once you have made your selection, click the “Save” button to continue. If you are overwriting a corrupted company file, QuickBooks may ask you if you wish to overwrite the file. You can click “Yes” in the message box that appears to overwrite the selected file.

Next, QuickBooks cautions you to be absolutely sure that you want to do this by making you type the word “YES” into the text box in the “Delete Entire File” window since you will likely be deleting the most current copy of your company file. You can type the word “yes” into the box and then click “OK” to begin overwriting the corrupted company file with the data from your selected backup file.

Once QuickBooks has successfully restored the company file, it will inform you of that fact in a message box. Just click the “OK” button to finish. You will then need to re-enter any transactions that were entered into the company file from the time that the backup copy was created until today to make the company file “current” once again.

2.7- Setting Up Users:

QuickBooks allows you to set up users and passwords for the individuals that will access your company file. You can also decide which types of activities users can perform and what areas of the application they can access. You can set up the users by selecting “Company| Set Up Users and Passwords| Set Up Users…” from the Menu Bar. That will open the “User List” dialog box.

First you will first need to create a master user, usually called “Admin,” that can access all of the areas of QuickBooks. That user account can then create the other user accounts. You typically create the “Admin” user account during the EasyStep Interview. That is then the default user account for all activities until you create more user accounts.

After you are logged in as the “Admin” user, you can click the “Add User…” button in the “User List” dialog box that appears to create additional profiles and decide which areas of the application the other users that you create will have access to by using the wizard provided.

Within the wizard provided, you specify the user name and password. You then click the “Next” button in each screen, answering questions posed. The screens allow you to decide what areas of the company file the user will have access to, and what editing changes they can perform in each area to which access is granted. When you are finished, click the “Finish” button in the wizard to add the user account into the “User List” dialog box.

You can also select a user account from the “User List,” and then click the “Edit User…” button to change the security settings for the selected user through the wizard provided. You can also select a user in the “User List,” and click “Delete User” to delete the user. You will need to click “Yes” to delete the selected user permanently. When you are finished with this dialog box, you can click the “Close” button to close it.

2.8- Single and Multiple User Modes:

Some activities, like doing a backup or restoring a company file, require that you open QuickBooks in single-user mode. You must make sure that all of the other users of the application are logged off before you switch user modes.

If you need to have multiple people accessing the same QuickBooks data file, then you can switch to multiple-user mode. However, QuickBooks must be set up to allow multi-user access before you can switch modes. If you try to switch to multi-user when you are not set up for that, QuickBooks will helpfully prompt you to set up QuickBooks for multi-user access. Once you have configured QuickBooks to allow multi-user access, you then have the ability to switch between single-user and multi-user access.

When you are in multiple user mode, you will have to enter your username and password in order to open and access the company data file on the shared computer. To switch user modes once you have multiple users enabled, just select “File| Switch to Multi-user Mode” or “File| Switch to Single-user Mode” from the Menu Bar. This is a “toggle” command and will always switch to the opposite command from the user mode in which you are currently running.

2.9- Closing Company Files:

If you want to close your company file, you can simply select “File| Close Company” from the Menu Bar. That will leave the QuickBooks application open so that you may open up another company file if you would like.

2.10- Opening a Company File:

If you would like to open a company file in QuickBooks, you can select “File| Open or Restore Company…” from the Menu Bar. Alternately, if the “No Company Open” dialog box is showing onscreen, you can click the “Open or restore an existing company” button to launch the same dialog box.

Either way, the “Open or Restore Company” dialog box appears. Here you can select the “Open a company file” option button, and then click the “Next” button to continue. That will then launch the “Open a Company” dialog box. Use this dialog box to navigate to the folder in your computer that contains the company file that you would like to open. You can then double-click on the company file you want to open, or click it once to select it and then click the “Open” button in the lower right corner of the dialog box to open the selected company file.

3.1- Using Lists:

In QuickBooks, you store much of the information for your company file in lists. In QuickBooks you keep lists for all of your vendors, customers, inventory items, and accounts. They are there so that you will not need to retype information that you use frequently every time you want to place it into a form. You also don’t need to enter all of your information into the lists at startup. You can add additional information into all of your lists as you use QuickBooks. In this chapter, we will cover manipulating the main lists that you will need in order to run QuickBooks efficiently: The “Chart of Accounts,” the “Customers & Jobs” list, the “Employees” list, and the “Vendors” list. These lists, with the exception of the “Chart of Accounts,” are maintained within the related “Center” within QuickBooks. So, for example, you can open the “Customer” center to access the “Customers & Jobs” list.The lists within the centers also share a similar layout and structure. So, once you have learned how to perform list-related tasks in one of the centers, you will be able to quickly master using the lists in the other centers, as well.

3.2- The Chart of Accounts:

One of the most important lists in QuickBooks is the chart of accounts. You can open this list by selecting “Lists| Chart of Accounts” from the Menu Bar. The chart of accounts lists all of the accounts within your company file. These accounts track all incoming and outgoing money, and tell you how much you currently own and owe. When you set up your business in QuickBooks, you get a default list of accounts. Once that has been done, you will probably need to make some changes.

You can add, edit, inactivate, delete, and rename accounts in this list. Generally, you can perform any of these tasks by first selecting the account within the chart of accounts that you would like to change. Then click the “Account” button in the “Chart of Accounts” window. From the pop-up menu that appears, you then select the desired command to perform.

Conveniently, in any list that you can open by choosing the “Lists” command in the Menu Bar, you can rely on being able to click the button in the lower left corner of the list to perform the basic list-related tasks. The button is always named the same thing as the list within which it appears. So for example, the “Account” button is the one to click to perform list management in the “Chart of Accounts” window; the “Item” button is the one to click when using the “Items List,” and so on.

To illustrate, assume you wanted to add a new savings account into your chart of accounts. First, select “Lists| Chart of Accounts” from the Menu Bar, or press “Ctrl”+“A” on your keyboard, to open the list. Next, click the “Account” button in the lower left corner of the “Chart of Accounts” window and choose the “New” command from the pop-up menu that appears. This opens the “Add New Account: Choose Account Type” window, where you will begin entering the new account information.

You must first select the account type from the account options shown. Technically, a savings account is an asset. However, in QuickBooks, when working with asset accounts that have a cash basis, like checking, savings, petty cash, and others, you will want to assign the account as a “Bank” account type to note its cash nature and be able to use it within transaction windows.

After selecting the desired account type, click the “Continue” button to move to the next screen. You will then see the “Add New Account” window. Note that when you selected the account type on the previous screen and then clicked the “Continue” button, all it really did was select an account type from the “Account Type” drop-down shown at the top of this window.

Next, you need to enter a name for the account into the “Account Name” text box. For now, skip the “Subaccount of” checkbox and drop-down, as we will discuss creating subaccounts momentarily, and we shall assume that the account that we are creating is not a subaccount of any other main account.

The account “Description” field is optional, as are the “Bank Acct. No.,” “Routing Number,” and “Tax-Line Mapping” fields. When you are finished, you can click the “Save & Close” button to create the new account and close the “New Account” window. Alternately, you may continue creating new accounts without having to close and reopen the “New Account” window by clicking the “Save & New” button instead. Doing this will create the account and clear the “New Account” window, but leave the window open so that you can continue creating accounts. If you choose to do this, then note that this time you will need to select the account type to create from the “Account Type” drop-down at the top of the window to start creating the new account. Also note that you could click the “Cancel” button if you want to close the “New Account” window without creating an account.

To create an account that had a balance as of the start date of the company file, click the “Enter Opening Balance…” button. This will open the “Enter Opening Balance” window where you can enter the amount as of the start date of your company file into the “Statement Ending Balance” field. Then select the statement date, which must be either before or as of the “start date” from the “Statement Ending Date” calendar selector. Then you can click the “OK” button to save the account’s opening balance. The amounts entered here are attributed to the “Opening Bal Equity” account in the chart of accounts. Note that for accounts created after the start date, you simply create the account and then enter transactions that show where the new account received its initial funds from. When creating accounts, you will not need to use the “Opening Balance” field after entering your beginning account balances when starting your company file.

You can also create subaccounts of accounts that have been created within the chart of accounts. This allows you to attribute transaction amounts to specific subaccounts of a main account for reporting purposes. For example, if you had an “Automobile” expense account, you could create subaccounts for “Gas” and “Maintenance/Repairs” to easily show the different amounts spent on gas versus repairs and maintenance for company vehicles, along with the total amount spent on automobile expenses, within a report. The balance of any account that has subaccounts is the total of all the transactions attributed to the main account, including all balances within its subaccounts.

You create a subaccount in the exact same way in which you create any other type of account within the chart of accounts. Just ensure that you have the primary account for which you want the subaccount created, first! The only difference when creating a subaccount versus a primary account is that you must check the “Subaccount of” box and then choose the primary account. Note that subaccounts must be of the exact same account type as their parent accounts.

If you wish to edit the information associated with an account, you need to select the account that you want to edit within the chart of accounts. Next, click the “Account” button in the lower left corner of the list and then choose the “Edit Account” command from the pop-up menu that appears. If you like to right-click, then you can also just right-click on the account you want to edit, and then select the “Edit Account” command. Next, you will see the “Edit Account” window appear. Here you can edit the account information and then click the “Save & Close” button to close the window and save your changes.

You may have accounts that you never use listed in your chart of accounts. If you have an account that you would like to delete in the chart of accounts, you may do so only if there are no transactions associated with the account. Once there are transactions assigned to an account, you can no longer delete it, as that would compromise your company’s financial information. In that case, you would first need to remove the transactions from the account- either by reassigning each transaction in the account to other accounts, or by deleting them entirely, if they are incorrect. However, this may not be feasible for your situation. After there are no transactions in the account, then you can go ahead and delete it.

To delete an empty account shown in the chart of accounts, first select the account. Then click the “Account” button in the lower left corner and choose “Delete Account” from the pop-up menu that appears.

After selecting the delete command, you will need to click “OK” in the message box in order to permanently delete the account.

If you have an account that you used at one time in the past, but no longer actively use, you can inactivate it to hide it since you cannot delete it. When an account is inactivated, it will not appear by default in your chart of accounts. However, the information is retained for reporting in QuickBooks. You can actually make items in almost all of your lists inactive to hide items you no longer use. In the chart of accounts, you can inactivate an account by simply selecting the name of the account, clicking the “Account” button in the lower left corner of the list window, and then selecting the “Make Account Inactive” command from the pop-up menu. Inactivating list items will be covered in depth in Lesson 3.8.

3.3- The Customers & Jobs List:

You can perform all activities associated with your customers through the Customer Center. While there are a great many features available in the Customer Center, one of the most important parts of it is the “Customers & Jobs” list. This list is where you can add, edit, and display all of your customer’s information as well as information for any jobs that you create for each customer, if you use the “Jobs” features in QuickBooks. You may notice that this list is called the “Customers & Jobs” tab within the Customer Center, and called the “Customer:Job” list within forms. Sometimes it is simply called the “Customers” list. It really doesn’t matter what you call it- as long as you realize that it’s all the same listwithin QuickBooks.

If you have created a new company file in QuickBooks, and you have customers who owed you money as of the start date of your company file, then enter those people into the Customers & Jobs list right after you finish creating the company file. After you have done that, you can then add customers and jobs to your list as the need arises through the daily use of the program.

To add a new customer to the Customers & Jobs list, first open the Customer Center. You can do this by clicking the “Customers” button in the Icon Bar, by clicking the “Customers” button in the Home Page, or by selecting “Customers| Customer Center” from the Menu Bar. You can also use the keyboard shortcut of “Ctrl+ J” to open the Customer Centerand display the Customers & Jobs list.

At the left side of the Customer Center window is a tab called “Customers & Jobs.” Click this tab to view customers and jobs entered into the QuickBooks program. To add a new customer to this list, click the “New Customer & Job” button that appears above the “Customers & Jobs” tab at the top of the Customer Center window. From the small drop-down menu that appears, click the “New Customer” choice. This will invoke the “New Customer” window where you enter the new customer information.

In the “New Customer” window, begin by typing a name for the customer as you would like it to appear within the “Customers & Jobs” tab into the “Customer Name” field. Note that each customer must have a unique “Customer Name” value.

If you are adding a customer who owed you money as of the “start date” of your company file, then enter the amount owed by the customer as of the start date into the “Opening Balance” field. Then select the start date of your company file from the “as of” calendar drop-down. These fields are only used when adding customers who owed you money as of your start date. For any future customers that you add, you will skip these opening balance fields.

Next click the “Address Info” tab that appears at the left side of the window, if needed. In this tab you will enter the customer address information, as you would like it to appear on invoices and other customer-related documentation. Start by typing the name of the company, which can be different from the “Customer Name” value, into the “Company Name” field. For individual customers, enter their name into the “Mr./Ms./…,” “First,” “M.I.,” and “Last” name fields. Enter the customer’s job title into the “Job Title” field.

You can then enter the customer contact information that you wish to record into the next eight fields that are available. There are eight data field choices that are shown by default. However, for each field, you can select what data to record by choosing the name of a data field from the drop-down field labels shown. You then record the associated customer information within the adjacent data field to the right of each drop-down field label. The data fields shown by default are, from top to bottom and left to right: “Main Phone,” “Work Phone,” “Mobile,” “Fax,” “Main Email,” “CC Email,” “Website” and “Other 1.” Your choices of alternate fields for which you can substitute the default information are: “Home Phone,” “Alt. Phone,” “Alt. Mobile,” “Alt. Fax,” “Alt. E-mail 1,” “Alt. Email 2,” “LinkedIn,” “Facebook,” “Twitter,” “URL 1,” “URL 2,” “URL 3,” “URL 4,” “Skype ID,” “Other 2,” and “Other 3.”

In the “Address Details” section at the bottom of this tab, you can enter billing and shipping address information for the customer. You can type the customer’s billing address directly into the “Invoice/Bill To” text box or click the “Edit” button to the right of the “Invoice/Bill To” field and then enter the billing address into the fields within the “Edit Address Information” window that appears. If you choose to enter the address information into the “Edit Address Information” window, then click the “OK” button when you are finished to display the address you entered within the “Invoice/Bill To” text box.

If the shipping address is the same as the billing address that you entered, then just click the “Copy >>” button to copy the billing information into the “Ship To” text box that appears to the right.If they are not the same, you can enter the shipping address into the “Ship To” text box.

In QuickBooks you can create and save multiple shipping addresses for each customer. You can add a shipping address by clicking the “Add” button that appears to the right of the “Ship To” text box. In the “Add Shipping Address Information” dialog box that appears, enter a name for the shipping address into the “Address Name” text box. Then type the address into the “Address,” “City,” “State/ Province,” “Zip/ Postal Code,” and “Country/ Region” fields. If creating multiple addresses, check the “Default shipping address” checkbox of the address that you want to set as the default shipping address. When you are ready to save the address, click the “OK” button. You can then add more shipping addresses by repeating the process until you have entered all of the necessary shipping addresses of the customer. Also note that you can select a shipping address from the “Ship To” drop-down to display it within the address field on this tab. You can then use the “Edit” and “Delete” buttons that appear to the right of the displayed shipping address to edit or delete the information shown, if needed.

To continue entering customer information, click the “Payment Settings” tab at the left side of the “New Customer” window. On this tab, you enter the default payment information for the customer. You can enter the account number that you have assigned to this customer, if you use account numbers, by typing it into the “Account No.” field. If you want to assign a credit limit to this customer, enter their credit limit amount into the “Credit Limit” field. Next, use the “Payment Terms” drop-down field to select the default purchasing terms that you want to assign to the customer. If the customer has a special pricing level assigned to their purchases by default, select it from the “Price Level” drop-down field. If you think that you will need to use pricing levels, please review the separate chapter on price levels. You can then select a default delivery method for customer forms from the “Preferred Delivery Method” drop-down. If you accept customer payments through the Intuit PaymentNetwork system, you can choose how you want the payment links to display within customer invoices by selecting a choice from the “Add Online Payment Link to Invoices” drop-down field. You can then select a default payment method for this customer by selecting one from the “Preferred Payment Method” drop-down. If you select a credit card type from this drop-down, then you can enter the customer’s cardholder information into the “Credit Card No.,” “Exp. Date,” “Name on card,” “Address,” and “Zip Code” fields within the “Credit Card Information” section.

Once you have finished data entry on this tab, click the “Sales Tax Settings” tab at the left side of the

“New Customer” window to continue. On this tab, use the “Tax Code” drop-down to choose whether the selected customer is taxable or non-taxable. If the customer is a taxable customer, then choose the sales tax to apply to their purchases from the “Tax Item” drop-down. We will look at collecting sales tax in a separate chapter, which you should review if you will be collecting sales tax. If the customer has a resale number for use, then you can enter it into the “Resale Number” text box.

After entering the customer’s sales tax information, click the “Additional Info” tab at the left side of the “New Customer” window to continue. On this tab, you can enter a customer type into the “Customer Type” field, or select a previous entry you have made from the field’s drop-down list. The values you enter into this field can be used as a way to filter customer reports that you create. You can use the “Rep” drop-down to assign one of your sales reps to the customer. In the area to the right of this tab, you can enter any information into the customer’s custom fields that you have created. We will examine creating custom fields for customers, vendors, and employees in Lesson 3.6.

If you are creating a new customer, then you are finished at this point. You won’t use the “Job Info” tab, as that is only used when creating a new job for an existing customer. We will examine creating jobs in the chapter on estimates. For now, to add the customer to the Customers & Jobs list, click the “OK” button.

You can edit an existing customer’s information in the future if their information changes or if you need to return to enter additional customer data. To edit a customer within the “Customers & Jobs” tab, first select the name of the customer in the list whose information you wish to edit. You can then either double-click on the name of the customer in the “Customers & Jobs” tab, click the “Edit ” button at the right end of the “Customer Information” section to the right, or right-click on the customer name in the “Customers & Jobs” tab and then select the “Edit Customer:Job” command from the pop-up menu that appears. Performing any of these actions will open the “Edit Customer” window. You can then edit any of the information shown in the tabs of the window. Just click the “OK” button to save your changes and close the window when you are finished.

Like accounts, once you have used a customer in a transaction you cannot delete them from the “Customers & Jobs” tab. Instead, you can inactivate customers that you will no longer need to view to hide them in the list. Please review Lesson 3.8 to learn how to activate and inactivate customers.

If you did, however, create a customer record that you did not use and no longer need- you can delete it. You would do this by first selecting the entry to delete from the Customers & Jobs list and then choosing “Edit| Delete Customer:Job” from the Menu Bar. You then need to click the “OK” button in the confirmation message box that appears to permanently delete the selected customer entry.

3.4- The Employees List:

If you are using QuickBooks to handle payroll and indicated that you have employees during the EasyStep Interview, you can later setup payroll for your company file and then enter employees into the Employees tab in the Employee Center. The Employee Center allows you to handle all transactions that involve your employees and payroll. You can open the Employee Center by selecting “Employees| Employee Center” from the Menu Bar. To view the Employees tab within the center, click the tab at the left side of the window that says “Employees.” You can add, edit, and delete or inactivate employees in the list.

To add a new employee to the list, click the “New Employee…” button in the upper-left corner of the Employee Center. This will open the “New Employee” window.

The information within this window is divided into tabs that are displayed at the left side of the window. The first tab that is displayed by default when you open this window is called the “Personal” tab. In this tab, you enter the employee’s name into the “Legal Name” fields. You can then enter their name as it should appear on paychecks into the “Print on Checks as” text box. Then enter their social security number into the “Social Security No.” field. You can then enter their gender and date of birth into the “Gender” and “Date of Birth” fields. When you have finished data entry on this tab, click the “Address & Contact” tab to continue.

In the “Address & Contact” tab, you can enter the employee’s home address information into the “Address,” “City,” “State,” and “Zip” fields available. You can then enter their main phone number into the “Main Phone” field. Then enter their primary e-mail address into the “Main Email” field. You can then enter the employee information that you wish to record into the next six fields that are available. There are six data fields that are shown by default. However, for each field, you can select what data to record by choosing the name of a data field from the drop-down field labels shown. You then record the associated employee information within the adjacent data field to the right of each drop-down field label. The data fields shown by default are, from top to bottom and left to right: “Work Phone,” “Mobile,” “Fax,” “CC Email,” “Website” and “Other 1.” Your choices of alternate fields for which you can substitute the default information are: “Home Phone,” “Alt. Phone,” “Alt. Mobile,” “Alt. Fax,” “Alt. E-mail 1,” “Alt. Email 2,” “LinkedIn,” “Facebook,” “Twitter,” “URL 1,” “URL 2,” “URL 3,” “URL 4,” “Skype ID,” “Other 2,” and “Other 3.” Once you have entered any employee information you wish to record, click the “Additional Info” tab to continue.

In the “Additional Info” tab, you can enter an employee ID number into the “Account No. (Employee ID)” field, if needed. You can also enter any information into whatever custom fields you create for your employees into the “Custom Fields” section of this tab. If you want to add custom fields to your customer, vendor, or employee lists to record information of your choosing, please review the section of creating customized fields in a later lesson of this chapter.Once you have finished the “Additional Info” tab, you can then click the “Payroll Info” tab to continue.

On the “Payroll Info” tab, you enter the specific payroll earnings for the selected employee. We will discuss entering information in the “Payroll Info” and “Workers’ Comp” tabs in depth in a later chapter on payroll. If you will be performing payroll activities in QuickBooks, you should review the entire chapter on payroll before entering employee payroll data. Also note that if you start to create a new employee, but don’t enter payroll information, then you will be prompted by QuickBooks to enter that information when you click the “OK” button within the “New Employee” window to save the record and close the window. If you want to save the record as is, then just click the “Leave As Is” button within the prompt window. If you want to return to enter payroll information, then click the “Set Up Now” button and enter the payroll data.

Next, select the “Employment Info” tab. Here you enter the employee’s hire date into the “Hire Date” field. When the employee leaves, you can enter the last payroll date into the “Release Date (Last Date on Payroll)” field. In the “Employment Details” section, you can classify the type of employee as a “Regular” (W-2) employee, a “Statutory” (1099) employee, or an “Officer” or “Owner” of the company.

You can then click the “Workers’ Comp” tab to enter worker’s compensation rates into the fields within this tab. Once again, please review the “Payroll” chapter to learn how to enter information in this tab in detail.

Once you have entered the employee information, click the “OK’ button within the “New Employee” window to add the selected employee into the “Employees” list within the “Employee Center.”

If you need to edit an employee record in the future to change employee or payroll information, then you can start by selecting the name of the employee to edit from the “Employees” tab in the Employee Center. You can then either click the “Edit ” button to the right of the “Employee Information” section to the right of the list, or simply double-click on the name of the employee shown in the “Employees” tab to open the “Edit Employee” window. Change or add whatever employee or payroll information is necessary through the tabs within this window, and be sure to click the “OK” button when you are finished to save the data entry.

Like all the other QuickBooks lists, you cannot delete an entry made in the Employees list once it has been used in a transaction. Once a record is associated with a transaction, you can only inactivate the record to hide it from view. You should review Lesson 3.8 on inactivating and reactivating list items to learn how to perform this task in your QuickBooks lists.

However, if you created an employee record but did not use it in any transactions, then you can delete the record from the “Employee” tab. To do this, first select the record to delete from the Employees list and then choose “Edit| Delete Employee” from the Menu Bar. You will then need to click “OK” in the confirmation message box that appears in order to permanently delete the selected employee record.

3.5- The Vendors List:

You keep information about the companies and people from whom you purchase goods or services in the Vendors tab within the Vendor Center. In QuickBooks, you keep parts supply vendors, utility companies, subcontractors and more within this list. The list of vendors tends to be one of the larger lists that you maintain. QuickBooks uses the information you enter to fill out purchase orders, bills, and checks as you make purchases for your company. You can open the Vendor Center by selecting “Vendors| Vendor Center” from the Menu Bar.

To access the Vendors tab from within the Vendor Center, click the “Vendors” tab located at the left side of the Vendor Center. You can add vendors, edit vendor information, and inactivate or delete vendors that appear within this tab. To add a new vendor to this tab, click the “New Vendor…” button that appears in the upper-left corner of the Vendor Center and then select “New Vendor” from the drop-down menu that appears. That will open the “New Vendor” window.

Start by typing a unique name for this vendor into the “Vendor Name” field. If you are adding a vendor to whom you owed money as of the start date of your company, enter the total amount outstanding into the “Opening Balance” field and select your company file’s start date from the adjacent “as of” calendar selector field. You only perform this task when initially adding vendors to whom you owed money as of the start date of your company file. If you are creating a vendor that you did not owe money to as of your company file’s start date, then you will skip the “Opening Balance” and the “as of” fields.

Next, click the “Address Info” tab in the “New Vendor” window. You can enter the company name of the vendor into the “Company Name” field. If the vendor is an individual, you can enter the person’s information into the “Mr./Ms./…,” “First,” “M.I.,” and “Last” name fields. You can enter the vendor’s job title into the “Job Title” field.

You can then enter the vendor contact information that you wish to record into the next eight fields that are available. There are eight data field choices that are shown by default. However, for each field, you can select what data to record by choosing the name of a data field from the drop-down field labels shown. You then record the associated vendor information within the adjacent data field to the right of each drop-down field label. The data fields shown by default are, from top to bottom and left to right: “Main Phone,” “Work Phone,” “Mobile,” “Fax,” “Main Email,” “CC Email,” “Website” and “Other 1.” Your choices of alternate fields for which you can substitute the default information are: “Home Phone,” “Alt. Phone,” “Alt. Mobile,” “Alt. Fax,” “Alt. E-mail 1,” “Alt. Email 2,” “LinkedIn,” “Facebook,” “Twitter,” “URL 1,” “URL 2,” “URL 3,” “URL 4,” “Skype ID,” “Other 2,” and “Other 3.”

In the “Address Details” section at the bottom of this tab, you can enter billed from and shipped from address information for the vendor. You can type the vendor’s billing address directly into the “Billed From” text box or click the “Edit” button to the right of the “Billed From” field and then enter the billing address into the fields within the “Edit Address Information” window that appears. If you choose to enter the address information into the “Edit Address Information” window, then click the “OK” button when you are finished to display the address you entered within the “Billed From” text box.

If the shipped from address is the same as the billed from address that you entered, then just click the “Copy >>” button to copy the billing information into the “Shipped From” text box that appears to the right. If they are not the same, you can enter the shipping address into the “Shipped From” text box.

To continue entering vendor information, click the “Payment Settings” tab at the left side of the “New Vendor” window. On this tab, you enter the default purchasing information from the vendor. You can enter the account number that you have been assigned by this vendor, if the vendor gives you an account number, by entering it into the “Account No.” field. This number will print in the “Memo” field of checks that you remit to this vendor. If the vendor assigns you a credit limit, enter your credit limit amount into the “Credit Limit” field. Next, use the “Payment Terms” drop-down field to select the default purchasing terms

that you have been assigned by the vendor. You can then enter the name of the vendor as you want it to appear on checks that you issue to the vendor into the “Print Name on Checks as” field.

Once you have entered the vendor’s payment information on this tab, click the “Tax Settings” tab to continue. On this tab, you can enter the vendor’s tax id number for 1099 subcontractors into the “Vendor Tax ID” field. If the vendor is eligible for a 1099, then check the “Vendor eligible for 1099” checkbox. After entering any vendor tax information, click the “Account Settings” tab to continue.

On the “Account Settings” tab, you can enter vendor account prefill information. You can enter up to three accounts, most commonly expense or cost of good accounts, that can appear automatically when you enter a bill received from this vendor. These accounts will then appear within the accounts field within the bill if you select this vendor record when entering the bill. This can save you some time if you always attribute the amounts from a particular vendor to a selected expense account. For example, if entering your telephone company as a vendor, you can select the “Telephone Expense” account from the first drop-down on this tab to have that account selected when entering a bill from this vendor in the future. Once you have entered any account information for the vendor, click the “Additional Info” tab to continue.

On the “Additional Info” tab, you can use the “Vendor Type” drop-down to select a vendor type from the drop-down available, or you can simply enter a new vendor type into the “Vendor Type” drop-down. This allows you to classify and categorize your vendors, as desired, for reporting purposes. At the right side of the “Additional Info” tab, you will be able to enter any custom field values for any custom fields that you have created for your vendors. We will cover creating custom fields for your QuickBooks lists in a separate lesson of this chapter.

Once you have finished entering the vendor information, you can click the “OK” button to save the new vendor record and close the window. To cancel the creation of the vendor record, click the “Cancel” button to cancel your changes and close the window.

You can edit existing vendor records to add missing information or to otherwise change the vendor records. To edit a vendor record, first select the name of the vendor whose information you wish to change from the “Vendors” tab in the Vendor Center. You can then either double-click on the name shown in the list, or click the “Edit” button at the right of the “Vendor Information” section to the right of the Vendors List to open the “Edit Vendor” window. You can then make whatever changes are needed in the tabs displayed in this window, and click the “OK” button to save the record.

Like all of your QuickBooks lists, you cannot delete a list record once you have used it in a transaction. Once a record is associated with a transaction, you can only inactivate the record to hide it from view. You should review lesson “3.8- Inactivating and Reactivating List Items” to learn how to perform this task in your QuickBooks lists.

However, if you created a vendor record but did not use it in any transactions, then you can delete the record from the “Vendors” list. To do this, just select the record to delete from the list and then choose “Edit| Delete Vendor” from the Menu Bar. You will then need to click “OK” in the confirmation message box that appears in order to permanently delete the selected record.

3.6- Using Custom Fields:

You have the ability to add your own customized fields to the “Customers & Jobs,” “Vendors,” “Employees,” and “Item” lists in QuickBooks. This feature allows you to create fields that you want to have appear for each record in a list. This lets you track information that is specific to your particular business. For example, you could add fields for “Color,” “Size,” and “Style” to your “Item” list that would allow you to create items with the same general description in your inventory, and then differentiate between them by color, size and style.

If you add custom fields to your sales forms or purchase orders, QuickBooks will automatically enter the values specified for the employee, customer, vendor, or item that you selected if you entered a value. This doesn’t mean that you must use customized fields in your forms, however. You could simply add a custom field as a way to record information strictly for your own use (recording your opinion of a customer’s credit rating, for instance). However you use it, QuickBooks will remember the information that you enter into the customized fields when you import and export the data and also when you memorize transactions.

You can add up to seven customized fields to each of the following lists: “Customers & Jobs,” “Vendors,” and “Employees.” You can only create up to five customized fields within the “Item” list. Custom fields that you add to a list are available to every record within the list.

You can create custom fields that can appear in the “Customers & Jobs,” “Vendors,” and “Employees” lists by opening any one of the three lists, and then opening either the “New ” or “Edit ” windows within the selected list. Within the window, click the “Additional Info” tab for the record and then click the “Define Fields” button that appears at the right side of the tab in the “Custom Fields” section. This will open a “Set Up Custom Fields for Names” dialog box, where you can create your custom fields for all three lists at once.

You can add a new custom field to a list by clicking into the first blank row in the “Label” column at the left side of the dialog box and then typing the label you want to give to the new field. To the right of that, you then check the checkbox for each list, shown as a column of checkboxes, within which you would like this field to appear. A field can be used by one or more lists.

Repeat these steps until you have created all of the necessary custom fields for the three lists shown. Once you are finished, click the “OK” button to save your changes and return to the selected list item window. You can then input custom field data for new list entries, or edit existing list items to add the new data to the custom fields you just created. Custom fields are always shown on the “Additional Info” tab of the “New” and “Edit” windows for the “Customers & Jobs,” “Vendors,” and “Employees” lists.

Adding custom fields to the “Item” list is a bit different from adding custom fields to the other lists. While we haven’t examined working with the “Item” list in much detail yet, it is an important list in QuickBooks. You place any item that appears in a QuickBooks purchase order, sales receipt or invoice into the “Item” list. You can access the “Item” list by selecting “Lists| Item List” from the Menu Bar. In the “Item” list, you can add custom fields through the “New Item” or “Edit Item” windows.

You can select either the “New” or “Edit Item” commands from the “Item” button in the lower left corner of the list to access either window. Once there, add custom fields to this list by clicking the “Custom Fields” button at the right side of the window. This will open a “Custom Fields for Items” dialog box where you can enter the values for any custom fields that you create for your Item list.

You can create custom fields by clicking the “Define Fields” button to open the “Set Up Custom Fields for Items” dialog box where you can add a new custom field by typing a label for the new custom field into the first available blank row under the “Label” column and then checking the adjacent “Use” checkbox for that row. When you are finished, you can click the “OK” button to create and use the new fields. You can then enter a custom field value for the current item, if needed. Click the “OK” button again in this window to return to the main item window when finished, and then click “OK” again to save the record.

3.7- Sorting Lists:

You can sort information in your QuickBooks lists manually or automatically. If you want to manually sort the items within a list, you can simply click and drag on the small diamond at the left side of any list entry and drop it in a new location within the list. However, it is important to note that you cannot manually arrange items in a list when you have automatic sorting applied to the list. Also, be careful when manually arranging items, as you may accidentally place subentries in a list (like subaccounts in the Chart of Accounts, or Jobs within the “Customers & Jobs” list) under an incorrect main account. The only way to fix this is to manually place it back from where it came- you cannot automatically re-sort the list to fix that type of mistake. Also, when manually arranging list items in the Chart of Accounts, you can only arrange accounts adjacent to accounts of the same “account type.” For example, you cannot place an “income” account into the “expense” accounts within the list.

In addition to manually arranging list entries you can also automatically sort list items, in ascending or descending order, by the values shown in any column within the list. You can do this by simply clicking on the column heading at the top of the column by whose values you wish to sort the list. You will see a small arrow appear next to the column heading, pointing up or down. An “up” arrow indicates an ascending sorting order, and the “down” arrow indicates a descending sorting order. Clicking the name of the column shown in the column heading will toggle the arrow between the “up” and “down” positions.

Note that when you automatically sort a list, a large diamond appears at the far left side of the row of column headings. This indicates that the list is being automatically sorted. You won’t be able to perform some actions, like manually arranging list items, while the automatic sorting is being applied. To remove the automatic sorting and return the list to its default sorting order, just click the large diamond to remove the applied sorting.

You can also re-sort a list to return it to its original sorting order. To do this, click the button with the name of the list in the lower left corner of the list and then select “Re-sort List” from the pop-up menu that appears. For the lists that appear within the Centers, however, you must re-sort the lists using a different method. In these lists, you can simply right-click on an entry within the list that and then select the “Re-sort List” command from the pop-up menu that appears, or select “View| Re-sort List” from the Menu Bar to return the list to its original sort order.

3.8- Inactivating and Reactivating List Items:

In QuickBooks lists, you can only delete list items if you have not used them in any transactions. If you try to delete a list item that has been used in a transaction, QuickBooks will warn you that the item cannot be deleted. If you don’t want to use a list item but you can’t delete it, you can make it inactive instead to hide its display by default within the list.

To inactivate an item in any QuickBooks list, you can simply right-click on the list item that you want to make inactive within the desired list. From the pop-up menu that appears, you select the “Make Inactive” command to inactivate the selected list item and hide its display.

To see the inactive list items within a list, you can click the “Include Inactive” checkbox at the bottom of the list window. You will be able to use this method of viewing inactive list entries in any list except the “Customers & Jobs,” “Vendors,” and “Employees” lists. In these lists, you can instead view all items by using the “View” drop-down that appears within the tab and above the list to select “All [item type].”

When you do this, you will see a new column appear at the left side of the list showing the inactive items, which will appear with an “X” next to their names. You can then click on any of these “X” symbols to make that particular list item active again.

3.9- Printing Lists:

To print a list, open the list to print and click the button in the lower left corner of the list. From the pop-up menu that appears, select “Print List.”If, however, you are trying to print either the “Customers & Jobs,” “Vendors,” or “Employees” lists, then instead click the “Print” button at the top of the respective Center, and choose the name of the list from the drop-down that appears.

Next, click the “OK” button to bypass the “List Reports” message and then set your printing settings as necessary in the dialog box that appears. Finally, click the “Print” button to print the list.

3.10- Renaming and Merging List Items:

Although there is no specific “Rename” command available within the QuickBooks lists, to rename a list item you simply open up the “Edit ” window for the selected item from the desired list. Then type a new name for the entry into the “Name” field at the very top of the window, and the entry will adopt the new name after you click the “OK” or “Save & Close” buttons to save your changes. When renaming list items, if you name an entry the exact same thing as another existing entry, QuickBooks will ask you if you wish to merge the two items into one item. If you do, click “Yes” at the merge prompt window and QuickBooks will make a single entry from the two entries. This can be handy if you have two different entries in a list, often created by multiple people performing data entry, that should be a single entry.

3.11- Adding Multiple List Entries from Excel:

A feature that can really improve the speed of company file creation is the ability to copy and paste data into lists within QuickBooks from Microsoft Excel. You can easily copy and paste data from an Excel worksheet into the “Customers,” “Vendors,” “Service Items,” “Inventory Part,” and “Non-inventory Part” lists within your company file.

In order to perform this task, first select “Lists| Add/Edit Multiple List Entries” from the Menu Bar. Doing this will open the “Add/Edit Multiple List Entries” window. As you can see from the information shown at the top of this window, copying and pasting data into this window from Excel is a three-step process. First, use the “List” drop-down at the top of this window to select the list into which you would like to copy data from your Excel worksheet. When you select a list, you will see the appropriate columns of information displayed at the bottom of the window. All lists must contain the “Name” column shown, as that is the column used to identify the items within the list.

Next, you can customize the columns shown in this window to match the columns within your Excel worksheet. In order to do this, you can click the “Customize Columns” button that appears in the upper-right corner of the window. In the “Customize Columns” window that appears, you can select column names from the “Available Columns” and “Chosen Columns” lists, and then click either the “Add >” or “< Remove” buttons to add or remove desired columns. If you wish to reorganize their display, you can select the name of a column shown in the “Chosen Columns” list and then click the “Move Up” or “Move Down” buttons in order to move the selected fields up or down within the list. The order that they are displayed from top to bottom within the “Chosen Columns” list is the order in which they will be displayed from left to right in the window once you click the “OK” button to approve your changes.

After you have the desired columns shown in the correct order within the “Add/Edit Multiple List Entries” window, you can then copy the data from your Microsoft Excel worksheet and paste it into the columns shown within the “Add/Edit Multiple List Entries” window. Once you have finished copying and pasting the data, you can then click the “Save Changes” button to save your new list entries.

4.1- The Sales Tax Process:

Collecting and paying sales tax can be complicated for some companies. For example, a company may have to collect and pay more than one sales tax. Many companies have a mix of taxable and non-taxable products and services to sell, and many also have some customers that are taxable while other customers are not.

In QuickBooks, you can apply sales tax on selected items for taxable customers during the sales process. It also keeps track of how much sales tax is collected and for which taxing agencies the sales tax is collected. From this information, QuickBooks later can create the check or checks for the appropriate tax agency or agencies when the sales taxes collected are due. However, in order to use QuickBooks to track and pay sales tax, you must perform the following steps listed in the table below. We will examine each part of this process in detail, to assist you in setting up your company to track and pay sales tax.

4.2- Creating Tax Agencies:

The first thing to do when setting up QuickBooks to collect sales tax is to create the agencies for whom you collect sales taxes, and to whom you pay the sales taxes collected, as vendors within the Vendors List. This will allow you to remit checks for the sales taxes that you have collected to the selected vendors when the time comes for you to pay your sales tax within QuickBooks. If you would like to review the process of adding a new vendor record to the Vendors list, please review lesson “3.5- The Vendors List.”

You must create the vendor records before creating the sales taxes, because when you later create the individual “Sales Tax Items,” you must specify the vendor for whom you are collecting the sales tax. Once you have created vendor records for all of the agencies to whom you must submit sales taxes, you can then continue to create the actual “Sales Tax Items” needed by your company file as items within the Items list.

4.3- Creating Individual Sales Tax Items:

After creating the vendor records to indicate the agencies for whom you are collecting sales taxes, you can then create the actual sales tax rates within the QuickBooks Item list. You can open the Item list by selecting “Lists| Item List” from the Menu Bar.

Within the “Item List” window, you must create a separate “Sales Tax Item” for each sales tax that you must report, not necessarily for each sales tax you collect. This is because in states that collect both a state and county sales tax, some states want you to report state sales tax and county sales tax as separate items, while other states want you report them as one item.

To create a “Sales Tax Item” within the Item list, click the “Item” button in the lower-left corner of the “Item List” window and then select the “New” command from the pop-up menu that appears to open the “New Item” window.

In the “New Item” window, select “Sales Tax Item” from the “Type” drop-down at the top of the window that is displayed immediately upon opening the window. Then click into the “Sales Tax Name” field and enter the name for the sales tax. You can then enter a description of the sales tax into the “Description” field. Note that if this “Sales Tax Item” is the only sales tax collected within customer forms, then you will want to enter the sales tax description as you want it to appear within customer sales forms into the “Description” field. Then enter the sales tax rate, as a percentage, into the “Tax Rate (%)” field. Then use the “Tax Agency (vendor that you collect for)” drop-down to select the name of the vendor to whom you submit the payments of this sales tax that is collected. When you are finished creating the “Sales Tax Item,” click the “OK” button to save the item into the “Item List.”

If needed, you can then repeat this process until you have created all of the individual sales tax rates that you must report that are required for your company file.If you collect and pay more than one sales tax for multiple taxing authorities, such as a state sales tax and a city sales tax, you can now create a “Sales Tax Group” within the “Item List” so that customers will see one cumulative sales tax amount on invoices and sales receipts. In the next lesson, you will learn how to create a “Sales Tax Group” item within the Item list to collect multiple sales taxes for multiple taxing authorities as a single line item within the sales forms.

4.4- Creating a Sales Tax Group:

If you have to collect a combination of sales taxes that you report separately, like a county sales tax and a city sales tax, you don’t want to possibly confuse customers by itemizing the sales taxes as separate line items within your sales forms. Many customers may mistakenly assume they are being taxed twice.

Therefore, QuickBooks lets you group individual “Sales Tax Items” that you have created within the “Item List” together as a “Sales Tax Group” item, so that customers will see a single sales tax line item amount on their sales forms, while QuickBooks will still report on and collect each “Sales Tax Item” within the “Sales Tax Group” separately.

You create the “Sales Tax Group” as another type of item in your Item List.Note that you must first create the individual “Sales Tax Items” you collect as items within the “Items List” before you can create the “Sales Tax Group.” Once you have created the individual “Sales Tax Items” for each tax you must report, you can then create a “Sales Tax Group” within the “Item List” by selecting “Lists| Item List” from the Menu Bar to open the “Item List” window. Then click the “Item” button in the lower-left corner of the “Item List” window and select the “New” command from the pop-up menu that appears to open the “New Item” window.

In the “New Item” window, select “Sales Tax Group” from the “Type” drop-down at the top of the window that appears automatically when you initially open the window. Then enter a name for the sales tax group into the “Group Name/Number” field. You can then enter the line-item description that you want the customers to see within their sales forms into the “Description” field.  Then click into the first row under the “Tax Item” column at the bottom of the window and select the name of the first “Sales Tax Item” that will be collected as part of this group. You can then click into the next row of the “Tax Item” column and select the next “Sales Tax Item” that will be collected as part of this group. Repeat this process until you have entered all of the “Sales Tax Items” that will be collected as part of this “Sales Tax Group.” When you are finished, click the “OK” button to save this “Sales Tax Group” into your Items list.

4.5- Setting Sales Tax Preferences:

You should inspect your sales tax preferences within QuickBooks before you begin collecting sales taxes through your sales forms, in case you wish to edit any of the default settings. To do this, select “Edit| Preferences…” from the Menu Bar to open the “Preferences” dialog box. In the scroll box at the left side of this screen, click the “Sales Tax” icon and then click the “Company Preferences” tab that appears to the right to set your company defaults for sales tax.

At the top of the “Company Preferences” tab, the “Yes” option button for “Do you charge sales tax?” should be selected to enable sales tax within your QuickBooks company file. Under the “Set Up Sales Tax Item” section, you can use the “Your most common sales tax item” drop-down to select the default sales tax item or sales tax group to use within sales forms if you create a sales form for a customer that does not have a sales tax setting specified. In the “Assign Sales Tax Codes” section, you can set the default codes used to indicate taxable and non-taxable customers and items within QuickBooks. You can also check the checkbox for “Identify taxable amounts as “T” for “Taxable” when printing” to print a “T” for taxable amounts within sales forms. In the “When Do You Owe Sales Tax?” section, select the correct option button to indicate when you owe sales taxes that are collected. The options are “As of invoice date (Accrual Basis)” or “Upon receipt of payment (Cash Basis).” Then select an option button within the “When Do You Pay Sales Tax?” section to indicate how frequently you make sales tax payments. You choices are: “Monthly,” “Quarterly,” or “Annually.”When you have finished setting your default sales tax preferences, click the “OK” button in the “Preferences” dialog box to save your settings.

4.6- Indicating Taxable & Non-taxable Customers & Items:

To collect sales taxes in QuickBooks, you must indicate who and what gets taxed within your company file. So, in the Customer:Joblist you enter which customers are taxable and non-taxable on the “Sales Tax Settings” tab within the “New Customer” or “Edit Customer” windows. On this tab, you select the default tax code for the customer from the “Tax Code” drop-down by choosing either “Tax” for taxable customers or “Non” for non-taxable customers. For taxable customers, you then select the default sales tax to apply to their sales from the “Tax Item” drop-down.After that, you must also set the taxable and non-taxable status of the line items used within your sales forms in the Items list. When creating items within the “New Item” or “Edit Item” window within the “Items List,” use the “Tax Code” drop-down to select either “Tax” for taxable items or “Non” for non-taxable items. QuickBooks can then show whether or not an item is taxable when you enter it into a sales form. It then collects the appropriate taxes from taxable customers.

At that point, you are ready to collect sales taxes through the sales forms in QuickBooks, like the “Invoice” and “Sale Receipt” form. We examine collecting sales taxes when using these forms in “Chapter 7- Basic Sales,” and then examine the process for paying your collected sales taxes in “Chapter 14- Paying Sales Tax.”

5.1- Setting Up Inventory:

For many companies, inventory is enabled if you create your company file using the “EasyStep Interview.” However, if you did not enable inventory when you created your company file, you can enable it at a later point in time. You can enable inventory within your company file and view the default inventory preferences, by selecting “Edit| Preferences…” from the Menu Bar. In the “Preferences” dialog box, select “Items & Inventory” from the scroll boxat the left side of the window. To the right, click the “Company Preferences” tab and make sure the “Inventory and purchase orders are active” checkbox is selected in order to enable inventory-related features in your QuickBooks company file. Then set any additional default settings needed for inventory and items. Click “OK” to set your default inventory preferences.

If inventory is enabled, QuickBooks uses the average cost method to determine the value of inventory. QuickBooks cannot use FIFO or LIFO methods. The average cost of the inventory equals the total cost of the items currently in stock, divided by the number of items in stock. With QuickBooks, you can track the number of items in stock and the value of your inventory after every purchase and sale. As you order, receive, and sell inventory items, QuickBooks records each inventory-related transaction and adjusts the inventory quantity and value accordingly.

In order to track inventory, you must enter each item that you want to track as an “Inventory Part” within the Item List. QuickBooks tracks the quantity and value only for “Inventory Part” items within the Item List as you sell or reorder the items. You use the Item List to add, edit, delete, and inactivate inventory part items. You can display the Item List by selecting “Lists| Item List” from the Menu Bar.

5.2- Creating Inventory Items:

You can set up “Inventory Part” items within the Item List to create items for which you want to track the quantity and value in QuickBooks. You cannot show inventory value for a manufacturing company or where the inventory value is changed as it goes through a process, as it is simply too complex for QuickBooks to compute. However, if you have items that you purchase from a vendor, hold as inventory, and then resell to customers, you can set up those items as “Inventory Parts” for ease of tracking in QuickBooks.

To create a new “Inventory Part” within QuickBooks, click the “Item” button in the lower-left corner of the “Item List” window and then select the “New” command from the pop-up menu to open the “New Item” window.

Select “Inventory Part” from the “Type” drop-down at the top of the window within the list that appears automatically when you open the window. Then enter the part name or number for the inventory item into the “Item Name/Number” field. If the item that you are creating is a subitem of another larger item category, then check the “Subitem of” checkbox and then select the main item for which this item will be a subitem from the adjacent drop-down menu. Note that when creating subitems, the subitem must be of the same item type as its parent item and that you must create the main item first, before creating its subitems.Then enter the manufacturer’s part number, if used, into the “Manufacturer’s Part Number” field.

Next, in the “Purchase Information” section, enter the description that you want to have appear within your purchase forms within the “Description on Purchase Transactions” field. You can then enter the default purchase cost of the item into the “Cost” field. This amount, if entered, will appear by default within your purchase forms when you select the item but you can always change it at that time, if needed. Then select the cost of goods sold account used to track the cost of purchasing the item from the “COGS Account” drop-down field. If you have a preferred vendor for this item, select the name of the vendor from the “Preferred Vendor” drop-down field. If this item is the first item selected within a purchase form, the preferred vendor’s information will automatically be filled-in within the form.

In the “Sales Information” section, enter the description of the item as you want it to appear within your sales forms into the “Description on Sales Transactions” field. You can then enter the default sales price into the “Sales Price” field. This amount will be the default amount displayed within your sales forms when this item is selected. You can always change it at that time, if needed. Then select the tax code used by the item from the “Tax Code” drop-down menu. Then enter the account used to track the amount of income generated by the sale of this item from the “Income Account” drop-down menu.

In the “Inventory Information” section, select the asset account used to track the value of inventory within the company file from the “Asset Account” drop-down. Then enter the quantity at which you want to reorder this item into the “Reorder Point” field.

If creating an inventory item for inventory that you possessed as of the start date of your company file, you can enter the total quantity on hand as of the start date into the “On Hand” field. Then enter the total value of the quantity on hand into the “Total Value” field. Then select the start date of the company file from the “As of” field. After creating the “Inventory Part” item, click the “OK” button to save the item.

5.3- Creating a Purchase Order:

After entering inventory parts into the Item list, you need to order the items to keep your inventory parts stocked. While QuickBooks doesn’t require that you use purchase orders, it is recommended. If you use purchase orders, you can see what items you have ordered and when they are due to be received. You will also be able to compare the items you receive against the items listed in the purchase order. If you don’t order items in advance or just don’t want to use purchase orders, you can buy inventory directly by using the “Items” tab within the “Write Checks” window or “Enter Credit Card Charges” window to select the inventory items that you will purchase from vendors.

You can create a purchase order by selecting “Vendors| Create Purchase Orders” from the Menu Bar. You can select a vendor from the “Vendor” drop-down at the top of the window to fill-in the vendor data within the form. Then enter the date of the purchase order into the “Date” field. The next available purchase order number will appear within the “P.O. Number” field. If you have multiple shipping addresses, select the name of the shipping address to send the items to from the “Ship To” drop-down field.

Then click into the first row under the “Item” column in the line item area and select the name of the inventory part item that you want to order. The information for the selected inventory part will then appear within the “Description” and “Rate” columns within the form, but you can change it if needed. You then enter the number of items to order into the “Qty” field. The “Amount” shown will be calculated by QuickBooks by multiplying the “Qty” by the “Rate” fields. You can then repeat this process until you have entered all of the items needed within the purchase order.

If you want to enter a message to the vendor, you can enter the message into the “Vendor Message” field. You can enter a memo into the “Memo” field, if needed. Once you have completed the purchase order form, you can click the “Save & Close” button to save the purchase order and close the window or you can click the “Save & New” button to save the purchase order and then open another new purchase order form.

After you initially create a purchase order, QuickBooks creates an account called “Purchase Orders” within the Chart of Accounts. This is a “Non-Posting” account type created by QuickBooks and it does not appear within your balance sheet or income statement. The Purchase Orders account is simply used to produce a QuickReport showing current purchase orders, so that you’ll always know what has been ordered.

5.4- Receiving Items with a Bill:

After creating and submitting a purchase order to a vendor, you will either receive the inventory parts that you ordered along with a bill for those parts, or you will receive the inventory ordered while the bill for the inventory arrives separately. In QuickBooks, you must receive the inventory ordered in order to sell the inventory. However, you must enter the bill when it is actually received for accounting purposes, especially if using accrual accounting methods. In the following lessons, we will examine how to enter inventory when it is received along with a bill, as well as how to receive inventory without a bill in order to match it up with a bill when the bill finally arrives.

If you receive the inventory items along with the bill for the inventory items that you have ordered with your purchase order, you have to enter the items into inventory and also note the fact that you have also received the bill for these items.

You can receive items into your inventory along with the bill for the items by selecting “Vendors| Receive Items and Enter Bill” from the Menu Bar. In the “Enter Bills” window that appears, select the vendor from whom you are receiving the items from the “Vendor” drop-down. If the vendor you select is one with whom you have open purchase orders, an “Open POs Exist” message box will appear to inform you of that fact. To receive inventory and enter the bill, click the “Yes” button in the message box to open the “Open Purchase Orders” window. The open purchase orders that you have with the selected vendor will then appear within the window. Click to place a checkmark into the leftmost column of the row that has the purchase order containing the inventory you want to receive. Then click the “OK” button to return to the “Enter Bills” window. The items from the purchase order will then appear in the “Items” tab at the bottom of the “Enter Bills” window. Check to ensure that the quantities that you ordered are correct. If they are not, you can change the quantities shown, if needed. Then be sure to enter the correct date that the bill was received into the “Date” field within the “Enter Bills” window. You can also check the other bill information, such as the “Terms” and the “Bill Due” date. You can then enter the number assigned to the bill into the “Ref. No.” field. When you have finished entering the bill, click the “Save & Close” button to finish.

Once you have entered the inventory items that arrived, QuickBooks will move the items into inventory and create a bill for you to pay. Make sure that you record the inventory when it arrives, because QuickBooks must have the inventory on hand before you can enter a sale for the inventory parts.

5.5- Entering Item Receipts:

When you receive inventory items from a purchase order, you have to enter the items into inventory in order to sell them in your sales forms. Sometimes you receive these items without a corresponding bill for them. In this case, you create an item receipt that you can match up to the vendor bill when it finally arrives.

You can create an item receipt for items received without a bill by selecting “Vendors| Receive Items” from the Menu Bar. This is essentially the same process as entering items received along with a vendor bill. So once again, in the “Enter Bill” window that appears, select the vendor from whom you are receiving the items from the “Vendor” drop-down. If the vendor you select is one with whom you have open purchase orders, an “Open POs Exist” message box will appear to inform you of that fact. To receive the inventory, click the “Yes” button in the message box to open the “Open Purchase Orders” window. The open purchase orders that you have with the selected vendor will then appear within the window. Click to place a checkmark into the leftmost column of the row that has the purchase order containing the inventory you want to receive. Then click the “OK” button to return to the “Enter Bills” window. The items from the purchase order will then appear in the “Items” tab at the bottom of the “Enter Bills” window. Check to ensure that the quantities that you ordered are correct. If they are not, you can change the quantities shown, if needed. However, notice that this “Enter Bills” window has no checkmark in the “Bill Received” checkbox, which makes it an item receipt only. When the bill does arrive, you will match it to the appropriate item receipt to enter the bill at the time it is actually received. To assist you in finding this particular item receipt, as well as distinguishing it from any others you may have entered, you can enter a item receipt code or other distinguishing information into the “Memo” field. This can help you match the bill to the item receipt later on when the bill arrives. At this point, you can simply click the “Save & Close” button to save the item receipt.

5.6- Matching Bills to Item Receipts:

Once the vendor bill for items already received finally arrives, you must match the vendor bill to the item receipt that was created for the items when you received them. To do this, select “Vendors| Enter Bill for Received Items” from the Menu Bar to open the “Select Item Receipt” window.

In this window, select the vendor from whom you received the items and created the item receipt by using the “Vendor” drop-down. The item receipts for the selected vendor will then be displayed in the columns below. Select the desired item receipt that you want to now convert into a bill from the listing shown. If you used the “Memo” field when creating the item receipt, this can help you in distinguishing between them. Once you have selected the item receipt that matches the bill received, click the “OK” button to continue to the “Enter Bills” window.

QuickBooks will automatically create the bill from the item receipt by placing a checkmark into the “Bill Received” checkbox field. Make sure that you have correctly entered the date that the bill was received into the “Date” field, and verify the accuracy of the other billing information. When completed, click the “Save & Close” button to save your changes and close the window. If prompted by QuickBooks to save your changes to the transaction, click the “Yes” button to save your changes in order to record the bill. The change that is referred to is simply the checkmark that is placed into the “Bill Received” field, changing the transaction from an item receipt into a bill.

5.7- Adjusting Inventory:

When you have loss, spoilage, or send out samples of your products, you will need to adjust your inventory levels manually. QuickBooks allows you to do this in the “Adjust Quantity/Value on Hand” window. To view this window, simply select “Vendors| Inventory Activities| Adjust Quantity/Value on Hand” from the Menu Bar.

First, select the type of inventory adjustment to make from the “Adjustment Type” drop-down menu. You can adjust the “Quantity,” “Total Value,” or both the “Quantity and Total Value.” Then enter the date of the adjustment into the “Date” field. You then need to select the account that the adjustment will affect from the “Adjustment Account” drop-down menu. To the right, you can enter an adjustment reference number into the “Reference No.” field. You can also assign a “Customer:Job” or “Class” to the transaction, if needed. You can also enter the reason for the adjustment into the “Memo” field at the bottom of the form.

Then click into the “Item” column and select the first item to adjust from the drop-down list. Then if making a “Quantity” adjustment, either type the “New Quantity” or the “Quantity Difference” into the respective column. If you enter a loss of items in the “Qty Difference” column, be sure to enter the difference as a negativenumber! If entering a “Total Value” adjustment, enter the new total value into the “Total Value” column. Once you have adjusted the inventory, click the “Save & Close” button to finish.

6.1- Service Items:

You can set up “Service” items in the Item List for services that you provide. This helps you avoid having to enter new line item information repeatedly into sales forms. Like all items, you create “Service” items by first opening the “Item List.” To then create a new item, click the “Item” button in the lower left corner of the list window and then select the “New” command. In the “New Item” window that appears, you can then select “Service” from the “Type” drop-down.

The fields that then appear in the “New Item” window are similar to the ones shown when you created an “Inventory Part” item. First, enter a name for the service into the “Item Name/Number” box. If you want this service to be a subitem of another service, check the “Subitem of” checkbox and then select the main service item under which the current item should be categorized. Then enter a description of the service to display in invoices and sales receipts into the “Description” field. You can then enter the “Rate,” set the “Tax Code,” and assign the amount to an income account using the “Account” drop-down.

For services which are purchased and then applied to customer invoices, such as subcontractor labor, you can check the “This service is used in assemblies or is performed by a subcontractor or partner” checkbox in order to change the fields that are available. If checked, this changes the fields to resemble the ones used when creating “Inventory Part” items. In this case, you enter the information for the purchasing side of the service into the fields shown in the “Purchase Information” section. You can then enter the information used for the sales aspect of the service into the “Sales Information” group of fields. This then allows you to use the service item in both purchase and sales transactions, if necessary.

Once you have created the “Service” item, click the “OK” button to save the item into the “Item List.”

6.2- Non-Inventory Items:

You can set up “Non-inventory Parts” in the Item List. A non-inventory part is used to create items that are bought and/or sold, but that are not tracked as “inventory parts.” QuickBooks tracks neither the quantity on hand nor the value of “non-inventory part” items.

Like all items, you create “Non-inventory Part” items by first opening the “Item List.” To then create a new item, click the “Item” button in the lower left corner of the list window and then select the “New” command. In the “New Item” window that appears, you can then select “Non-inventory Part” from the “Type” drop-down.

The fields that appear in the “New Item” window are similar to the ones shown when you created an “Inventory Part” item. First, enter a name for the part into the “Item Name/Number” box. If you want this to be a subitem of another part, check the “Subitem of” checkbox and then select the main non-inventory part item under which the current item should be placed. If needed, you can then enter a part number into the “Manufacturer’s Part Number” field. Next enter a description of the part to display in invoices and sales receipts into the “Description” field. You then enter the “Price,” set the “Tax Code,” and assign the amount to an income account using the “Account” drop-down.

For non-inventory parts which are purchased for specific customer jobs, you can check the “This item is used in assemblies or is purchased for a specific customer:job” checkbox in order to change the fields that are available. If checked, the fields available will be the same ones used when creating “Inventory Part” items. In this case, enter the information for the purchasing side of the item into the fields shown in the “Purchase Information” section. You can then enter the information used for sales into the “Sales Information” group of fields. This allows you to use the item in both purchase and sales transactions. Once you have created the “Non-inventory Part” item, click the “OK” button to save the item into the “Item List.”

6.3- Other Charges:

You can set up “Other Charge” items within the Item List. An “Other Charge” could be used to collect amounts for things such as freight charges or photocopying charges in an invoice. You could also use it to collect membership dues or assess some other type of miscellaneous fees to customers.

You create “Other Charge” items by first opening the “Item List.” To then create a new item, click the “Item” button in the lower left corner of the list window and then select the “New” command. In the “New Item” window that appears, you can then select “Other Charge” from the “Type” drop-down.

In the “New Item” window, enter a name for the charge into the “Item Name/Number” box. If you want this charge to be a subitem of another charge, then you can check the “Subitem of” checkbox and then select the main charge item under which the current item should be categorized from the adjacent drop-down menu. You can then enter a description of the charge to display in invoices and sales receipts into the “Description” field. Enter the amount or percentage for the “Other Charge” item into the “Amount or %” field. You can then enter the “Tax Code,” and assign the amount of the charge to an income account using the “Account” drop-down.

For reimbursable charges, you can check the “This item is used in assemblies or is a reimbursable charge” checkbox in order to change the fields that are available. If checked, this changes the fields to resemble the ones used when creating “Inventory Part” items. In this case, you enter the information for the purchasing side of the charge into the fields shown in the “Purchase Information” section. You can then enter the information used for the sales aspect of the charge into the “Sales Information” group of fields. This then allows you to use the charge in both purchase and sales transactions, if necessary.

Once you have created the “Other Charge” item, you can click the “OK” button to save the item into the “Item List.”

6.4- Subtotals:

You can set up “Subtotal” items in the Item List. A subtotal will total all of the items in the invoice up to the last subtotal entered, if there was one. This can be handy for totaling all of the previous line items in an invoice before applying a discount to the subtotal amount.

You create “Subtotal” items by first opening the “Item List.” To then create a new item, click the “Item” button in the lower left corner of the list window and then select the “New” command. In the “New Item” window that appears, you can then select “Subtotal” from the “Type” drop-down.

In the “New Item” window you can enter a name for the subtotal into the “Item Name/Number” box. You can then enter a description of the subtotal to display in invoices and sales receipts into the “Description” field. Once you have created the “Subtotal” item, you can click the “OK” button to save the item into the “Item List.”

6.5- Groups:

You can create “Groups” in your Item List for items that you may purchase individually, but want to display as a single line item in a sales form. For instance, if you sold gravel by the ton and also assessed a service charge for the delivery, you could create both the gravel (a “non-inventory part”) and the service charge (an “other charge”) and then create a “Group” (like “Gravel Delivery”) that consists of gravel and the delivery charge. You can then display a single line item in the invoice, instead of two separate line items. However, you can also show the component items, if you prefer. Note that before you can create a group, you must first create all of the necessary items that will be included as parts of the group in the Item List.

After creating the items to add to the group, you can create the group item by clicking the “Item” button in the lower left corner of the Item List window and then selecting the “New” command. In the “New Item” window, select “Group” from the “Type” drop-down menu. Then enter a name for the group into the “Group Name/Number” box. Then enter the line item description of the group to display within sales forms into the “Description” field.

To then add the items to the group, click into the “Item” column and use the drop-down that appears to select the first item to add to the group. To specify a quantity of that item, click into the “Qty” column and enter the desired quantity. Note that you can leave this blank to specify the quantity when you use the “Group” item within sales form, if desired. You then repeat this process of adding items and specifying quantities, until you have added all of the necessary items into the group.

Note that if you wish to print the items within the group in the sales forms when this item is used, then you must check the “Print items in group” checkbox to enable the display of the group’s items in the printed view of the sales forms. Also note that the items listed in a “Group” item are always displayed in the data entry view of the sales forms, so that you can change the quantities if needed. Once you have created the “Group” item, click the “OK” button to save the item into the “Item List.”

6.6- Discounts:

You can create “Discount” items in your Item List to discount the previously entered line item within your sales forms. If you create a discount and then use it in an invoice, it will apply the discount to the line item amount directly above it- but not to any other line items entered. Therefore, this item is often used in conjunction with the “Subtotal” item in your sales forms. For example, you can place the subtotal item underneath a list of line items within an invoice to get a subtotal, and then place the discount item under the subtotal item- removing the specified amount or percentage of the discount from the subtotal.

To create a “Discount” item, open the “Item List” and then click the “Item” button in the lower left corner of the list window. Select the “New” command from the pop-up menu to open a “New Item” window. In the “New Item” window, select “Discount” from the “Type” drop-down. Then enter a name for the discount into the “Item Name/Number” box. If the discount is a subitem of another discount item you have created, then check the “Subitem of” checkbox and select the main discount item from the adjacent drop-down.

Then enter a description of the discount to display in sales forms into the “Description” field. Next enter either the percentage or amount of the discount into the “Amount or %” field. Note that you must include the percent symbol if the number that you want to enter is a percentage discount. Otherwise, QuickBooks will assume the number entered is a flat amount.

Next, select the account used to track discount amounts from the “Account” drop-down. Finally, decide whether the discount is taken before or after sales tax has been calculated. To do this, use the “Tax Code” drop-down to set either “Tax,” which applies the discount before sales tax is calculated, or select “Non,” to apply the discount after tax has been calculated. Once you have created the “Discount” item, click the “OK” button to save the item into the “Item List.”

6.7- Payments:

You can create “Payments” in your Item List to subtract the amount of a customer payment from the total amount shown in an invoice while you are creating the invoice. You need a payment item when you receive a partial payment that you need to apply to an invoice at, or before, the time you create the invoice.Note that this is not what is used when receiving full payment at the time of sale. In that case, you simply fill out a “Sales Receipt.”

When creating payment items, you have to create one for each unique type of payment that you accept (i.e. “Cash,” “Check,” “VISA,” etc…). When this item is used, it actually receives funds from the customer. Therefore, when creating this item type, you will also have to select whether the amount received when this item is used in an invoice is to be directly deposited into a specific account, or placed into the “Undeposited Funds” account for deposit at a later time.

To add a new “Payment” item into the Item List, click the “Item” button in the lower left corner of the “Item List” window and then select the “New” command from the pop-up menu that appears. In the “New Item” window that then displays, select “Payment” from the “Type” drop-down.

Next, click into the “Item Name/Number” text box and enter a name for the payment item. You can then enter the description that you want to have appear within your sales forms when this item is used into the “Description” field that is available. Next, use the “Payment Method” drop-down to select the method of payment associated with this particular payment item. You must then decide where to place the money received when this item is used by either selecting the “Group with other undeposited funds” option button, or by selecting the “Deposit To” option button and then selecting the account to deposit the amount directly into from the adjacent drop-down. Once you have created the “Payment” item, you can click the “OK” button to save the item into the “Item List.”

6.8- Changing Item Prices:

While you can always edit an item’s price in the Item List by opening up the “Edit Item” window and changing the price directly in that window, you can also change the price of multiple items in the Item List simultaneously. If you’d like to do that, just select “Customers| Change Item Prices” from the Menu Bar to open the “Change Item Prices” window.

Here you can use the “Item Type” drop-down to filter the list to show only items that you have created in the Item List that match the item type you select: “Service,” “Inventory Part,” “Non-inventory Part,” or “Other Charge.”

You can then click into the leftmost column next to any items for which you want to change the price to mark them with a check. You can check or uncheck the “Mark All” checkbox to assist you in your selection, if needed. Once you have selected the items whose prices you want to adjust, type either an amount or a percentage (you must type a percent sign in that case) into the “Adjust prices of marked items by (amount or %)” text box. Then use the adjacent drop-down to select whether you are marking it up based on the “Unit Cost” or the “Current Price.”

Below that, you can use the Round up to nearest” drop-down to select how to round the amounts that are calculated. You can select a choice from the listing shown, or you can enter your own rounding specifications. To actually adjust the pricing, click the “Adjust” button to adjust the pricing of the selected items. After that, you should see the new amount in the “New Price” column. Notice that this is a white column, so you can also click into the column for any item and type a new price if you want.

In order to set the pricing shown in the “New Price” column, click the “OK” button at the bottom of this window to close the window and save your pricing changes.

7.1- Selecting a Sales Form:

When you sell anything for your company, you have to fill out one of the sales forms in QuickBooks. The sales form that you use will depend on whether you expect payment in the future, or at the time of the sale. If you expect to be paid in the future, you will fill out an invoice for sales. Later on, you will be able to match the customer payment to the associated invoice. However, if you take full payment at the time of sale, then you will instead fill out a sales receipt to give to the customer.

You can create an invoice for a customer by selecting “Customers| Create Invoices” from the Menu Bar. You create a sales receipt by selecting “Customers| Enter Sales Receipts” from the Menu Bar. You can see that these forms are very similar in their layout and usage. In this chapter, we will examine how to perform data entry into the sales forms in QuickBooks.

7.2- Creating an Invoice:

When a customer agrees to make a purchase for which payment will be made at a later point in time, you enter the sale into an invoice. The invoice lists the customer’s information, along with an itemized list of how much that customer owes for the goods or services purchased. To create an invoice, select “Customers| Create Invoices” from the Menu Bar. The particular invoice form used for the transaction can be changed by using the “Template” drop-down in the upper right corner of the invoice form to select the particular type of invoice to use for the transaction.

You enter customer information into sales forms by using the “Customer:Job” drop-down to select a customer you have entered into the “Customer List,” or by typing the customer information into the “Bill To” and “Ship To” areas of the form. If you select a customer from the drop-down, then their information will automatically populate the fields in the form. You may need to specify additional information if manually entering customer data, such as selecting the desired sales terms from the “Terms” drop-down, for example. Once you have entered the customer information, select the invoice date from the “Date” field.

At the bottom of the invoice, you list each item purchased on its own line by selecting a choice from the “Item” column in the line item area. For each line item, you also specify the quantity and amount that the customer owes for that item. In QuickBooks, you enter line items from entries made into the Item list, so you won’t have to repetitively type the names of services or products you sell frequently. Line items are also not limited to goods or services. You can also enter items like discounts, subtotals, or sales tax lines. If this invoice is to be printed later, ensure that the “Print Later” checkbox in the “Main” tab of the Ribbon at the top of the window is checked. When you are finished, click the “Save & Close” button to save the invoice.

If you fill out an invoice, QuickBooks places a record for the invoice into the “Accounts Receivable” account. If creating a sales receipt, the amount received is typically placed into the “Undeposited Funds” account. You can see how much is in either one of these accounts by opening the Chart of Accounts.

7.3- Creating a Sales Receipt:

If you are taking payment from the customer at the time of sale for a purchase they have made, you enter the transaction into a sales receipt. You can create a sales receipt by selecting “Customers| Enter Sales Receipts” from the Menu Bar. In the “Enter Sales Receipts” screen, you enter information much the same way you use an invoice. Also, just as with invoices, you can select which sales receipt template to use by selecting one from the “Template” drop-down that is available in the upper right corner of the form.

You enter the customer’s information into the sales receipt by either selecting a customer from the “Customer:Job” drop-down, or by manually entering the customer’s information into the “Sold To” field. You then enter data into any of the other customer fields, as needed. Be sure to enter the date of the sale by selecting the date from the “Date” field. Then select the method of payment from the “Payment Method” drop-down. If they pay by check, you can enter the check number into the “Check No.” field.

Then enter the line items used in the sales transaction by selecting the items from the “Item” column. Then enter the “Qty” and “Rate” or “Amount” for each item, as needed. If this receipt is to be printed later, ensure that the “Print Later” checkbox in the “Main” tab of the Ribbon at the top of the window is checked. Once you have entered the necessary sales information, just click the “Save & Close” button to save the sales receipt and close the window.

Money received through a sales receipt is deposited into an “Undeposited Funds” account, by default. There is no “receiving” payment at a later point in time when using a sales receipt- as you have taken the payment up front. You just save and close the screen to enter the sale.

7.4- Finding Transaction Forms:

If you want to find any transaction form at a later point in time, you can use the “Find” feature of QuickBooks to locate it. To find an invoice, or any other type of transaction, open the associated form for which you want to search. So using the example of finding an invoice, you would open the “Create Invoices” window.

Next, select “Edit| Find [form type]…” from the Menu Bar, which will bring up the “Find [form type]” window. You could also just click the “Find” button in the “Main” tab within the Ribbon at the top of the form to open this window, as well.

In the “Find [form type]” window that then appears, you will have different parameters that you can fill-in to use as the search criteria. Type what you’re looking for, and then click the “Find” button to open a result set. You can then double-click on the item you were looking for, shown in the result set, to open it.

7.5- Previewing Sales Forms:

If you would like to see how the sales form that you are currently entering information into will look in its printed version, you can click the drop-down arrow below the “Print” button in the “Main” tab of the Ribbon at the top of the sales form, and then select the “Preview” command from the drop-down menu that appears. QuickBooks will then display the sales form as it will look when printed.

7.6- Printing Sales Forms:

When you want to print your invoices or sales receipts, just open the form that contains the information that you would like to print, and then click the “Print” button in the “Main” tab of the Ribbon at the top of the invoice. That will open the “Print” dialog box, where you can set the printing parameters. After you have set any printing parameters, click the “Print” button at the right side of the “Print” dialog box to continue printing to your selected printer.

8.1- Using Price Levels:

Sometimes businesses want to vary an item’s price when selling the item to different customer types. For instance, you may charge different rates for residential customers versus commercial customers. You can associate price levels with specific customers so that each time you create a sales form for that customer, QuickBooks will use the appropriate price level when calculating rates and amounts for the line items listed within the sales form for the selected customer.

You can also associate price levels with specific line items within a sales form, if desired. Using this method, you are only discounting specific items in a sales form- not all items for a specific customer or type of customer. Price levels make it easy to use different rates for line items within sales forms without having to calculate percentage amounts manually. Price levels can affect amounts for service, inventory, and non-inventory part items only. Also note that price levels are, however, only a feature of QuickBooks Pro or QuickBooks Premier. In QuickBooks Pro, you can only set Price Level discounts as a flat percentage. If you use the QuickBooks Premier version, however, you can set price levels for various quantities of individual items, if preferred.

In this lesson, we will examine how to create basic price levels in QuickBooks Pro. To access and create price levels, first open the “Price Level List.” You can do this by selecting “Lists| Price Level List” from the Menu Bar in order to open the “Price Level List” window.

To create a new price level, click the “Price Level” button in the lower left corner of the “Price Level List,” and then select the “New” command from the pop-up menu. That will then open the “New Price Level” window, where you enter the information about the new price level.

Start by entering a name for the new price level into the “Price Level Name” text box. Then use the drop-down to the right of the “This price level will” text to select either “decrease” or “increase.” Next enter the percentage by which you wish to increase or decrease the item prices into the text box to the right of the “item prices by” text. You can then use the “Round up to nearest” drop-down to select how you wish to round the pricing that is calculated. Once you have set the price level, just click the “OK” button to add it into the “Price Level List.” As with your other lists, you can select an entry that you have made and then click the “Price Level” button to edit or delete your entries, if needed, in the future. Once you have created your price levels, you can then either assign them to specific customers in order to apply a selected price level to all future sales to this customer, by default, or you can apply a selected price level to specific line items in your sales forms manually when the need arises.

You can apply a default price level to any customer when using the “Edit Customer” or “New Customer” windows. In either of these windows, you can select the “Payment Settings” tab and then use the “Price Level” drop-down to select a default price level to associate with this customer’s sales. Then just click the “OK” button to set the price level for the customer. Now when you create a sales form for this customer and select items in the line item area of the form, you will see that the customer’s price level is calculated an applied by default.

Also notice that after you have created price levels, you can then use the “Rate” drop-down that appears in your sales form to select a price level on a per-line-item basis, if needed. This allows you to manually set a pricing level for selected items in a sales form, if preferred.

9.1- Setting Finance Charge Defaults:

You can set your preferences for finance charges that you assess in customer statements through the “Preferences” window in QuickBooks. You can access this window by selecting “Edit| Preferences…” from the Menu Bar. That will then open the “Preferences” window where you can set the default behaviors of your currently opened company file.

In the scroll box to the left of the “Preferences” window, click the “Finance Charge” icon and then click the “Company Preferences” tab. Here you can set your finance charge information for your billing statements, if you charge finance charges. Note that it is not required that you assess finance charges, and you should consult the laws for your district regarding assessment of finance charges before assessing them to customers.

In this tab you can enter the annual interest rate to charge, as a percentage, into the “Annual Interest Rate (%)” field. You can then enter a minimum finance charge to apply in the “Minimum Finance Charge” box. Next enter the number of days that you want to use as the grace period into the “Grace Period (days)” box. Use the “Finance Charge Account” drop-down to select which account is used to track income from finance charges. If needed, you can check the “Assess finance charges on overdue finance charges” to enable that feature when calculating finance charge amounts. Below that, you can then select either the “due date” or “invoice/billed date” option button to set what date should be used when calculating charges. Also, if you want the finance charge invoices that are created to be marked as “To be printed” by default, then check the “Mark finance charge invoices ‘To be printed’” checkbox. That way you can print them as a batch after assessing finance charges, if needed. Once you have set your finance charge defaults, click the “OK” button to apply them.

9.2- Entering Statement Charges:

Entering statement charges is the first step in preparing billing statements that you can then send to customers. This can be a more effective way to collect customer charges over a period of time for certain types of businesses that do not need to send out an invoice for each charge assessed to a customer. With statement charges, you simply enter the charges directly into each customer’s “accounts receivable” register as they are accrued. Later on at the end of the billing cycle, you can then send the customer a statement that lists all charges that are due or past due.

You can access the customer’s “accounts receivable” register by opening “Customers & Jobs” list within the Customer Center. Select the customer to whom you want to assess statement charges and then select “Customers| Enter Statement Charges” from the Menu Bar. This will display that customer’s “accounts receivable” register.

To make an entry in the register, enter the date, the item, the quantity, and the account receivables account under which you want to place this charge in the next available entry within the register. Then click the “Record” button to record the statement charge.

9.3- Applying Finance Charges and Creating Statements:

A QuickBooks statement prints information already recorded by statement charges and other receivables transactions. Therefore, you can’t edit the statement’s information directly through the statement window. A typical statement covers a time period and shows the customer’s previous balance, any new charges, any payments or credits that you’ve received and applied to the account, and the new balance for the customer during the period specified. A statement can simply show information- like invoices sent to and payments received from a customer over a time period, or they can be used for billing- showing statement charges due and requesting payment of those charges.

To create statements, select “Customers| Create Statements…” from the Menu Bar in order to view the “Create Statements” window. In the “Create Statements” window you can decide what type of statement you will be creating by setting the desired parameters.

First, you can enter the statement date by using the “Statement Date” calendar date selector. This date will appear at the top of each statement, and will also appear as the “Billed Date” for billing statements.

Next you decide what type of statement to send. The statement can either show transactions from one date to another, or it can show all open transactions as of the statement date entered. To create a statement that shows all transactions over a specified date range, select the “Statement Period from” option, and then select the first date from the adjacent calendar date selector. Then select the ending date for the transactions by selecting the ending date from the “To” calendar date selector. To show all open transactions instead, select the “All open transactions as of the statement date” option. If you select that option, you can check the “Include only transactions over [blank] days past due date” option button and then enter the number of days in order to create a statement that shows only past due charges, if desired.

Next, select the customers to whom you want to send the statements by choosing one of the available option buttons and then making any additional selections, as needed, in the “Select Customers” section. Once you have finished that, you can then set any additional options that you would like your statements to possess by making your desired selections from the checkboxes available in the “Select Additional Options” section. Also note that you can use the “Template” drop-down to select a custom statement template, if available.

If you would like to assess finance charges, click the “Assess Finance Charges…” button within the “Create Statements” window to bring up the “Assess Finance Charges” window. Here you will assess finance charges on any customers and customer:jobs that are selected with a check. You can remove the checks if you don’t want to assess a charge on them. The finance charges are shown in the rightmost column. They are calculated based on the default finance charge settings that you created within the “Preferences” window. You can change the amount shown by typing the desired amount to charge into the column. Then click the “Assess Charges” button to assess the charges shown.

That will return you to the “Create Statements” window again. Here you can click the “Preview” button to preview the statements that you will send. When you are ready, click the “Print” button to print the statements.

10.1- Recording Customer Payments:

If you’re receiving payment at the time of sale and fill out a sales receipt, QuickBooks records a customer payment. When you invoice a customer and you receive payment on that invoice at a later point in time, you enter the payment into the QuickBooks “Receive Payments” window. This allows you to match the customer payments to the customer invoices. You can open this window by selecting “Customers| Receive Payments” from the Menu Bar.

The simplest payment case occurs when a customer has one outstanding invoice and sends you a payment for the full amount. However, you can also enter partial payments, if you receive those. You can even select to which invoices you apply the payment amount. If you have one payment, you can also apply the amount to multiple invoices, as well. QuickBooks can also handle prepayments, down payments, and over payments. In this chapter you will look at the different ways that you can handle customer payments.

To enter a full payment that you receive, start by selecting the customer or customer:job from whom you are receiving the payment from the “Received From” drop-down in the “Receive Payments” window. Any unpaid invoices for the selected customer or customer:job will then be displayed at the bottom of the window. Then select the date the payment was received from the “Date” calendar selector.

Next, enter the amount of the payment into the “Amount” text box. Use the “Pmt. Method” drop-down to select the method of payment. Enter the check number into the “Check #” field, if payment was made by check. At the bottom of the window, ensure that you have a checkmark placed in front of the invoice against which you are receiving payment. Note that all funds received within this window are placed into the “Undeposited Funds” account, by default.

When you have finished receiving customer payments, click the “Save & Close” button to save and close the “Receive Payments” window. If you have other customer payments to process, then you may find that it is easier to click the “Save & New” button to save the transaction, but leave the “Receive Payments” window open so that you can continue entering customer payments.

10.2- Entering a Partial Payment:

If entering a partial customer payment, begin by selecting “Customers| Receive Payments” from the Menu Bar to open the “Receive Payments” window. Then select the name of the customer or customer:job from the “Received From” drop-down. Enter the partial payment date, amount and method by using the fields available at the top of this window. The unpaid invoices will appear at the bottom of the window. If you want QuickBooks to attribute the payment to anything other than the oldest invoice, click the “Un-Apply Payment” button in the “Main” tab of the Ribbon at the top of the window to clear the checkmark(s) from the selected invoice(s).

In the listing of unpaid invoices, you can click into right-most white column and change the amount applied to the desired invoice by typing the partial payment amount. In QuickBooks, entering a partial payment also allows you to select either the “Leave this as an underpayment” or “Write off the extra amount” option buttons at the bottom of the screen. You may want to use this feature to “Write off the extra amount” if a customer accidentally shorted you by a small amount that is not worth rebilling. By default, though, “Leave this as an underpayment” is selected, and you will be able to receive payments on that item in the future.

When you are finished, click either the “Save & Close” or “Save & New” buttons to save the transaction and accept the partial payment amount.

10.3- Applying One Payment to Multiple Invoices:

You can also apply the amount that a customer pays you to multiple outstanding invoices by simply placing a check in front of the invoices to which you want to apply the cumulative payment amount received, until the total payment is attributed to the correct invoices.

To do this, select “Customers| Receive Payments” from the Menu Bar to open the “Receive Payments” window. Then select the customer or customer:job who sent you the payment from the “Received From” drop-down. Enter the total payment amount and select the payment method by using the “Amount” and “Pmt. Method” fields. Once again, QuickBooks should attribute the amount entered to the outstanding invoices shown. You can check and uncheck the invoices to attribute and remove payment amounts, as needed, until the entire amount received has been attributed to the correct invoices in the correct amounts. Note that you can also change the amounts applied to each invoice, if needed, by changing the amounts shown in the “Payment” column at the right end of the outstanding invoice list.

Once you have attributed that payment to the correct invoices, you can then click either the “Save & Close” or “Save & New” button to save the transaction and then either close the window or open another new transaction window.

10.4- Entering Overpayments:

If the customer pays you more than is due, you can enter the entire amount received into the “Receive Payments” window. The amount that is left over after you have applied the amount due to outstanding invoices will be shown in the “Overpayment” area at the bottom left corner of the “Receive Payments” window. You can select the option button to indicate what you want QuickBooks to do with this overpayment. You can select the “Leave the credit to be used later” option button to receive the money and issue a customer credit in the amount of the overpayment, or you can select the “Refund the amount to the customer” option button to issue a refund check to the customer when you save the transaction. Select the desired option button and then click either the “Save & Close” or “Save & New” buttons to save the transaction window and either generate a credit or issue a refund check.

If you choose to issue a credit to the customer for the amount that was overpaid, then later on you can apply the credit to future invoices for that specific customer or customer:job (and only that specific customer or customer:job). You can also issue the customer a refund check later on for the amount that was overpaid if it turns out that they will not be needing the credit for any future invoices.

10.5- Entering Down Payments or Prepayments:

Just as when you receive an overpayment, if a customer gives you a down payment or prepayment which you want to take and then invoice them at a later date, you can enter the entire payment received for the customer or customer:job into the “Receive Payments” window. Since they have no outstanding invoice against which to apply the amount entered, the entire amount will be saved as a customer credit when you click either the “Save & Close” or “Save & New” buttons.

Later on, after you have invoiced the customer or customer:job, you must return to the “Receive Payments” window to apply the credit against the invoice that was created. In the next lesson, we will examine how to apply customer credits that are created by overpayments, down payments, or prepayments to outstanding customer invoices.

10.6- Applying Customer Credits:

When a customer overpays you or gives you a down payment or a prepayment, you record the amount that you received in the “Receive Payments” window. Doing this creates a credit for the customer or customer:job specified. Later on, after you have created an invoice for the specific customer or customer:job, you can return to the “Receive Payments” window to apply the customer’s existing credit.

To apply an existing customer credit to an outstanding invoice in the “Receive Payments” window, select the name of the customer or customer:job who has the outstanding invoices and the credit that you want to use. Then select the invoice against which you wish to apply the credit from the listing shown. Note that you should NOT attempt to place a checkmark in front of the invoice, as that indicates that it is being paid. Instead, click anywhere else within the line of the invoice, except for the checkmark column, to select the desired invoice against which you wish to apply the customer’s credit.

Once that has been accomplished, click the “Discounts & Credits” button in the “Main” tab of the Ribbon at the top of the window to open the “Discount and Credits” window. Here you should select the “Credits” tab, if necessary, in order to view any available customer credits. To apply the entire credit shown, click the checkmark column next to the credit shown in the “Available Credits” section. The amount shown will be displayed in the “Amt. to Use” column in this window. Note that to apply a partial credit amount, you can change the amount of credit applied by changing the amount shown in the “Amt. to Use” column. Once you have entered the amount of credit to apply. Click the “Done” button to apply the credit amount indicated to the selected invoice and return to the “Receive Payments” window.

The amount of credit applied will appear in the “Discount and Credits Applied” section at the bottom of the window. You can then finish receiving customer payment, as needed, within the “Receive Payments” window. When you are finished, click either the “Save & Close” or “Save & New” buttons to save the transaction and either close the window or clear the window, leaving it open for additional entries.

10.7- Making Deposits:

When you receive funds from customers in the “Receive Payments” window and place the funds into the “Undeposited Funds” asset account, QuickBooks tracks that money until it is actually deposited into the bank. Later on, when you’re ready to take your payments to the bank, you can record the deposit in QuickBooks and group the various payments that you received and placed into the “Undeposited Funds” account into a single amount that is shown as being deposited into your selected bank account. This makes the amounts recorded as deposits for the bank account match the amounts recorded by your bank statements, which makes account reconciliation much easier.

Also, when you are preparing the funds for deposit in QuickBooks, you can print a deposit slip to bring with you to the bank if needed, and then make the deposit at the bank.

Note that when you record the deposit within QuickBooks, it takes the deposited funds and adds it to your selected bank account register. You can also tell it to leave out a certain amount for cash back, if needed, that you can then record to an account like “Petty Cash.”

To make a deposit in QuickBooks, select “Banking| Make Deposits” from the Menu Bar. This will most often then cause the “Payments to Deposit” window to appear onscreen. In the “Payments to Deposit” window you can see all of the customer payments that you have received through the “Receive Payments” window and elected to move to the “Undeposited Funds” account. Use the “View payment method type” drop-down at the top of this window to select the type of payments to view, if needed. You must then check any received amounts that you will actually be taking to the bank to deposit. Once you have made your selections, click the “OK” button to continue to the actual “Make Deposits” window.

In this window you will see the amounts that you just selected shown in a listing. Use the “Deposit To” drop-down to select the name of the bank account into which you would like to deposit the selected funds. Enter the date of the actual deposit into the “Date” field. If necessary, you can click into the next available blank row in the deposit to record any other miscellaneous amounts that will be deposited, such as owner’s contributions.

If you need to get cash back from the deposit, use the “Cash goes back to” drop-down to select the account used to record cash back, such as “Petty Cash.” Then enter the reason why cash was held back into the “Cash back memo” field. You can then enter the amount of cash to be held back from the deposit into the “Cash back amount” field.

If you want to print a deposit slip or deposit summary to take with you to the bank, click the drop-down arrow to the right of the “Print” button within the toolbar at the top of the window and then select either the “Deposit Slip…” or “Deposit Summary…” command. You can then print the selected form within the “Print” dialog box that appears.

Once you are ready to record the deposit amount, click the “Save & Close” button to save and close the “Make Deposits” window.

10.8- Handling Bounced Checks- 2014 Only:

QuickBooks 2014 has introduced an easy way to handle bounced checks that you receive from customers and take as payment. This feature will mark the previously paid invoice or sales receipt as “Unpaid,” remove the funds received from your bank account, allow you to enter any bank service fees assessed by your bank, and also create a new invoice for these fees that you can pass on to the customer who bounced the check. This is a terrific feature that allows you to easily deal with a situation that often caused many headaches in the past when it occurred.

To record a bounced check, simply open the “Receive Payments” window by selecting “Customers| Receive Payments…” from the Menu Bar. Then find or navigate to the specific payment that you received from the customer that contains the check that bounced and display that received payment within this window. With the payment displayed, click the “Record Bounced Check” button within the “Main” tab in the Ribbon at the top of the window.

In the “Manage Bounced Check” window, enter the amount of the bank fee associated with this bounced check into the “Bank Fee” field. Then select the date that the bank fee was assessed by your financial institution from the adjacent “Date” field’s calendar drop-down, or simply type the date value directly into the field. Then use the “Expense Account” drop-down to select the expense account that you use to track bank service charges or bank service fees. If you have class tracking enabled within your company file, you can select a class from the “Class” drop-down to classify this bank fee.

Next, enter the amount to charge the customer for the bounced check into the “Customer Fee” field. Usually, this amount is for more than the bank fee incurred for the bounced check. After entering the amount to bill to the customer, click the “Next” button to continue.

On the next screen, titled “Bounced Check Summary,” you will see a listing of the various actions that QuickBooks will take when you click the “Finish” button shown in the middle of the screen. Note the various transactions that will occur, and then click the “Finish” button to proceed. QuickBooks will then create the various transactions that it listed within this screen to account for the bounced check. You can then re-invoice the customer with the original invoice as well as the new bounced check invoice that QuickBooks creates. The “Receive Payments” window for that original payment transaction will also be marked as “Bounced Check.” Just click the “Save & Close button to save the transaction and close the “Receive Payments” window when you are finished.

11.1- Creating a Credit Memo and Refund Check:

You can easily refund a customer’s purchase if they return merchandise by creating a credit memo and then issuing a refund check. To do this, you first have to create a credit memo for the return. After creating the credit memo, you can then create a refund check for the amount of the credit memo to refund the customer.

To create a credit memo for a customer’s return, select “Customers| Create Credit Memos/Refunds“ from the Menu Bar. In the “Create Credit Memos/Refunds” window that appears, select the name of the customer or customer:job for whom the credit memo is being issued from the “Customer:Job” drop-down. Next, enter the items that were returned in the line items area at the bottom of the window.

Then click the “Use credit to give refund” button in the “Main” tab of the Ribbon at the top of the window to issue a refund check for the amount of the credit memo.

Within the window that appears, select the account used to withdraw funds for the refund check and then enter any other information needed for the refund into the fields shown. Then click the “OK” button to continue. Finally, ensure that you save and print the refund check, as well as the credit memo to give to the customer.

11.2- Refunding Customer Payments:

If a customer overpays an invoice or statement, or gives you a down payment or prepayment, you create a credit for that customer when you enter the payment into the “Receive Payments” window. Later on, if the customer requests that you send the amount back or cancels the order, you can issue a refund check on the credit for the payment that you accepted.

To create the refund check, just select “Banking| Write Checks” from the Menu Bar in order to open the “Write Checks” window. At the very top of the window, use the “Bank Account” drop-down to select the account against which the funds will be withdrawn. Then enter the date of the check into the “Date” field. Use the “Pay to the Order of” drop-down to select the name of the customer or customer:job to whom you are issuing the refund. If you will be printing this check, then check the “Print later” checkbox in the “Main” tab of the Ribbon at the top of the window.

Enter the amount of the credit refund into the “$” field, and set the account in the “Expenses” tab to “Accounts Receivable.” Then save and print the check and give it to the customer.

After that, you must return to the “Receive Payments” window to match the credit to the refund check that you just wrote to the customer or customer:job. To do this, simply open the “Receive Payments” window, and then select the name of the customer or customer:job from the “Received From” drop-down. In the listing at the bottom of the window, you should see the refund check that you just wrote listed. Select the check in the list and then click the “Discounts & Credits” button that appears in the “Main” tab of the Ribbon at the top of the window. Then select the “Credits” tab in the “Discount and Credits” window, choose the credit that matches the refund check amount, and then click the “Done” button to apply the credit to the check. You can then click the “Save & Close” button to finish the transaction.

12.1- Setting Billing Preferences:

You can set your bill payment preferences before you use the Accounts Payable features of QuickBooks by selecting “Edit| Preferences…” from the Menu Bar in order to open the “Preferences” dialog box. In the scroll box at the left side of the preferences window, you can click the “Bills” icon. Then click the “Company Preferences” tab that appears at the right side of this dialog box to view and set your default billing preferences.

In the “Entering Bills” section, you can enter the default number of days after entry that bills without a due date should be paid by entering that number into the “Bills are due __ days after receipt” text box. You can also check the “Warn about duplicate bills from same vendor” checkbox to be alerted to that fact, if it occurs.

In the “Paying Bills” section, if you wish to automatically use discounts and credits when available, then check the “Automatically use credits” and/or the “Automatically use discounts” checkboxes. If selected, use the adjacent drop-down to select the account to use for tracking vendor discounts and credits. Now, once you have set your desired billing preferences, click the “OK” button to apply them.

12.2- Entering Bills:

You should always enter bills into QuickBooks as soon as you receive them. Use the “Enter Bills” window to do this. To enter a bill, select “Vendors| Enter Bills” from the Menu Bar. The top half of the “Enter Bills” window is where you enter your bill information. The bottom half of the window is where you assign the bill amount to different expense accounts, or list the inventory items purchased.

When entering bills for inventory items that have been received, notice that the “Bill Received” checkbox at the top of the window has a checkmark within it by default. You should only clear the check from this box if you are using QuickBooks for purchase orders and inventory, and want to record items that you have received but have not been billed for yet. Removing the check from this box in that situation changes the transaction into an “Item Receipt,” instead.

When entering a bill, select the name of the vendor that sent you the bill from the “Vendor” drop-down. Ensure that you have entered the date on which you received the bill into the “Date” field. You can then enter the bill’s number into the “Ref. No.” field. Then enter the amount of the bill into the “Amount Due” field. Ensure that you have the correct due date set in the “Bill Due” field.

For bills that you receive that are not related to purchasing inventory parts, you enter the expense account that this bill will affect in the “Expenses” tab at the bottom of the bill payment. That way, when you create the check that pays this bill, you won’t have to re-enter any accounting information.

Note that on the “Expenses” tab, you can allocate the total amount of the bill entered in the “Amount Due” field between multiple expense accounts. To do this, choose the first account that the bill affects and then enter the amount that will be attributed to that particular expense account in the “Amount” column. Then click down into the next row under the “Account” column and select the next account that would be affected by the amount of the bill. Then enter the amount to attribute to the second selected account in the “Amount” column. Repeat this process, as needed, until you have allocated the total amount of the bill to the necessary expense accounts.

Once you have entered the bill and attributed it to the correct accounts, you can then save the bill by either clicking the “Save & Close” button to save the bill and then close the window, or by clicking the “Save & New” button to save the transaction and leave the “Enter Bills” window open for further bill entry.

12.3- Paying Bills:

To pay bills that you have entered, you have to open the “Pay Bills” window. You can do this by selecting “Vendors| Pay Bills” from the Menu Bar. At the top of the “Pay Bills” window, select either the option button to show bills that are “Due on or before” a date that you select or to “Show all bills.” Then place a checkmark in front of the bill or bills that you’d like to pay by clicking within the column to the left of the bills you will pay. QuickBooks will place the amount to pay in the rightmost “Amt. To Pay” column. Notice that this is a white column. If necessary, you can change the amount that is shown here in order to make a partial payment on a selected bill.

In the middle of the “Pay Bills” window you’ll see the vendor, discount, and credit information for the currently selected, or highlighted, bill. You can click the “Go to Bill” button in order to open the original bill in the “Enter Bills” window if you need to review it. The “Set Discount” and “Set Credits” buttons are used to take early payment discounts and apply vendor credits to selected bills, if available. You will see how to perform these tasks in separate lessons in this chapter.

In the “Payment” section of the “Pay Bills” window, select the account from which the funds to pay the checked bills will be withdrawn by choosing the desired account from the “Account” drop-down. Use the “Method” drop-down to select the desired method of payment for the checked bills. If you select “Check” from this drop-down, then you must select either the “To be printed” or “Assign check no.” option button. If you select the “To be printed” option, then the checks will be assigned a check number later when you print them. If you select the “Assign check no.” option, then enter the starting check number to print in the adjacent field. Also, ensure that you have the correct payment date entered into the “Date” field. At that point, just click the “Pay Selected Bills” button to pay the checked bills in this window.

When you pay a bill through QuickBooks, an entry is made in the “Accounts Payable” register, showing a decrease by the amount of the bill payment to the total accounts payable balance. QuickBooks also creates a check from your checking account to pay the bill. You can open the “Accounts Payable” register by opening the “Chart of Accounts” and then double-clicking on the “Accounts Payable” entry to see its register. You could also view the check that is created by double-clicking on your checking account in the “Chart of Accounts” to view that register. You may also notice that this type of check is called a “Bill Payment” check, and differs from the typical check that you use when creating checks in the “Write Checks” window. On those checks you see the expenses directly on the check voucher portion, while in the “Bill Payment” checks the bottom portion shows the bills paid by the check, instead.

12.4- Early Bill Payment Discounts:

If you take advantage of discounts for early payment offered by some vendors, you can record the discounts directly in the “Pay Bills” window when you pay the bills by the date specified by your vendor’s terms. This allows you to let QuickBooks track the discount amounts. You can manually take this discount as you pay the bill in the “Pay Bills” window if you do not have QuickBooks set up to automatically take vendor discounts and credits.

To do this, first select the qualifying bill to pay and then click the “Set Discount” button. QuickBooks will then display the “Discount and Credits” window where the amount of the discount based on the terms of the agreement will be displayed. Here you will select the “Discount Account” that you use to track the amount of early payment discounts. Once you’ve selected the appropriate account, click the “Done” button to close the “Discount and Credits” window. Then continue to pay the bill as you normally would.

12.5- Entering a Vendor Credit:

If you receive a credit from your vendors that you want to enter and later use against the next bill you receive from them, you can easily do that in QuickBooks. To enter the vendor credit, open the “Enter Bills” window by selecting “Vendors| Enter Bills” from the Menu Bar. Next, select the option button for “Credit” at the top of the “Enter Bills” window. The word “Credit” should appear in the top of the form.

At that point, select the name of the vendor who issued you the credit from the “Vendor” drop-down. Then enter the date that you received the credit from the “Date” calendar selector. If there is a number associated with the credit, you can enter that number into the “Ref. No.” field. Next, enter the amount of the credit into the “Credit Amount” field. Next, select the accounts that the credit will affect on the “Expenses” or “Items” tabs, as appropriate, at the bottom of the window. Then click the “Save & Close” button to save the credit for later use when you go to pay the next bill from that vendor through the “Pay Bills” window.

12.6- Applying a Vendor Credit:

If you’ve received a credit from a vendor and entered it into QuickBooks, you can use it on the next payment that you make to that vendor. You can manually take this credit as you pay the next bill in the “Pay Bills” window, if you do not have QuickBooks set to automatically apply discounts and credits.

To do this, open the “Pay Bills” window by selecting “Vendors| Pay Bills” from the Menu Bar. Then simply select the bill to which you have a vendor credit that you would like to apply. Then click the “Set Credits” button. QuickBooks will then display the “Discount and Credits” window and show the “Credits” tab where the amount of the credit will be displayed. You can select how much of the available vendor credit to use by typing it in the “Amt. To Use” column, if you only want to use a portion of the credit. Next, click the “Done” button to close the “Discount and Credits” window.

From this point, just enter the rest of the bill payment information as normal to finish paying the remainder of the bill.

13.1- Using Registers:

You can enter checks directly into the checking account register rather than through the “Write Checks” window, if you prefer. This doesn’t allow you to see how the check will appear if printed, but it may seem familiar to you since it looks like a typical check book register. Also, for businesses that may not write very many checks and do not use QuickBooks for printing checks, it may simply be easier to transfer the information from the paper check register into this register for accounting purposes.

You should note that for any of the accounts that appear on the “Balance Sheet” of your company, you have an associated register that you can access in order to view and/or edit the transactions contained within them. Using the register can be useful to view the transactions in any account, such as “Accounts Payable” or “Accounts Receivable.”

To open an account register, first ensure that you do not have any screens open within QuickBooks. Then select “Banking| Use Register” from the Menu Bar to open the “Use Register” window. In the “Use Register” window, use the “Select Account” drop-down to choose your desired account, like “Checking” for example. Once you have the account selected, click the “OK” button to continue to the register window.

To record an entry in the account register window, you simply use the next available blank row to enter the transaction information. When you are finished, click the “Record” button at the bottom of the window to save the transaction record. You can view any of the transactions in a register individually by double-clicking on the desired transaction to open it within its corresponding form view in QuickBooks.

13.2- Writing Checks:

In QuickBooks you can enter checks directly into the QuickBooks “Write Checks” window. When you enter a check into this form, you can see address information and easily allocate the check’s amount between multiple accounts if necessary, at the bottom of the “Write Checks” window. This form also corresponds to the “check” entries made in the register for the selected checking account.

To write checks in QuickBooks, select “Banking| Write Checks” from the Menu Bar to display the “Write Checks” window. Start by selecting the checking account from which the funds will be withdrawn from the “Bank Account” drop-down at the top of this window.

Next, decide whether you will be printing this check, or whether you will simply be recording a check or other electronic withdrawal transaction. If you are recording a check that you have already written, or recording an electronic withdrawal, simply enter the check number that was issued into the “No.” field. You can enter your own code for checking withdrawal transactions that lack a code, such as an ATM withdrawal. Otherwise, if you intend to print this check at a later point in time, check the “Print Later” checkbox that appears in the “Main” tab of the Ribbon at the top of the window.

Then enter the date of the check into the “Date” field, or select the date from the field’s calendar date selector. Then select the name of the payee from the “Pay to the Order of” drop-down. The payee’s name and address information will then appear in the check. Then enter the amount of the check into the “$” field.

Once you have completed the upper portion of the “Write Checks” window, assign the amount of the check to one or more of the accounts in your company’s chart of accounts by using the “Expenses” tab in the lower section of the window. To do this, select the first account to which you want to attribute the amount spent from the first row in the “Account” column. QuickBooks will attribute the entire amount to that account, shown in the “Amount” column. If you need to split the total amount of the check to multiple accounts, then simply change the amount shown in the “Amount” column to indicate how much of the total amount of the check to attribute to the selected account. You then repeat the process of selecting the next account from the next available blank line under the “Account” column, and then entering the amount to attribute to that account into the adjacent “Amount” column.

Once you have distributed the total amount of the check to all of the correct accounts, click either the “Save & Close” button to save the check and close the “Write Checks” window, or click the “Save & New” button to save the check and then leave the “Write Checks” window open so that you can continue writing more checks.

13.3- Writing a Check for Inventory Items:

If you don’t use purchase orders to acquire inventory parts that you sell to customers, then you can write a check to purchase inventory items instead. To write a check for “Inventory Part” items that you have stored in your “Item List,” select “Banking| Write Checks” from the Menu Bar. Doing this will display the “Write Checks” window.

Fill out the upper portion of the check with the appropriate vendor information. Next, you then indicate which inventory items you are purchasing by clicking the “Items” tab at the bottom of the “Write Checks” window and using the “Items” drop-down to select the inventory parts that you are purchasing.

For each item purchased, you will also need to enter the “Quantity” purchased. The total amount of the check will be determined by the total of the inventory parts entered into the “Items” tab. When you have finished listing the purchased inventory on the “Items” tab, click either the “Save & Close” button to save the check and close the “Write Checks” window, or click the “Save & New” button to save the check and then leave the “Write Checks” window open so that you can continue writing more checks.

13.4- Printing Checks:

You can click the “Print Later” checkbox that appears in the “Main” tab of the Ribbon at the top of the “Write Checks” window to save it and print it later. When you do want to print your checks later, open the “Write Checks” window by selecting “Banking| Write Checks” from the Menu Bar.

To print a single check, use the “Previous” and “Next” buttons that appear in the “Main” tab of the Ribbon at the top of the “Write Checks” window to display the check that you want to print. Then click the drop-down arrow on the “Print” button that appears in the “Main” tab of the Ribbon at the top of the “Write Checks” window. From the drop-down menu that appears, choose the “Check” command to display the “Print Checks” dialog box, where you set the printing options for the check.

To print a batch of checks that you have saved and marked to “Print Later,” open the “Write Checks” window and then click the drop-down arrow on the “Print” button that appears in the “Main” tab of the Ribbon at the top of the “Write Checks” window. From the drop-down menu that appears, choose the “Batch” command to display the “Select Checks to Print” dialog box.

In this dialog box, you can remove the checkmarks from any checks listed that you don’t want to print, if needed. You can also use the “Select All” and “Select None” buttons to help you make your selections, if needed. Ensure that you have the correct account selected from the “Bank Account” drop-down, and then enter the first check number to assign to the batch of checks into the “First Check Number” field. Once you have set the desired options, click the “OK” button to open the “Print Checks” dialog box.

Next, place the paper checks into your printer and set any desired printing options in the “Print Checks” dialog box. This dialog box displays three tabs: “Settings,” “Fonts,” and “Partial Page.” On the “Settings” tab, use the “Printer name:” drop-down to select the printer that contains the checks that you are going to print. If needed, use the “Printer type” drop-down to select the type of printer that you are using. In the “Check Style” section, select the option button that corresponds to the check style that you will use for printing checks: “Voucher,” “Standard,” “Wallet.” To the right of that, you can enter the number of copies of each check to print in the “Number of copies:” text box. You can check the “Collate” checkbox to ensure that they print collated. Check the “Print company name and address” checkbox to print your company name and address on the checks if they are not pre-printed and you are using either the “Voucher” or “Standard” check styles.

If you want to include a company logo on your checks, check the “Use logo” checkbox. If you haven’t loaded a logo yet, click the “File” button in the “Logo” dialog box that then appears to browse for the logo file for your checks. The logo file must be of an acceptable type for use in QuickBooks. The accepted types include JPEG, GIF, and bitmap file types. The logo must also be a perfect square. The smaller the logo file size, the more quickly the logo will be loaded into QuickBooks and printed on your checks. Also note that you can only print your logo on “Voucher” and “Standard” check styles, and that you must be in single-user mode in order to load a logo into QuickBooks. Assuming that all of these criteria are met, you can easily load a logo by clicking the “File” button in the “Logo” dialog box to open an “Open Logo File” window where you can browse for and then select the logo file to print on your checks.

If you have an endorsement signature that you want to print on the checks, instead of having to sign each check individually, then check the “Print Signature Image” checkbox. Note that you must have your signature image saved as a graphic file before you can add it to your checks. If you do, then use the “Signature” dialog box that appears to select your signature file. You use this dialog box in the same way you use the “Logo” dialog box. Simply click the “File” button to launch an “Open Logo File” window where you can browse to and then select your signature image to use within the checks.

You can click the “Fonts” tab to set the font style to use within checks. You can click the “Address Font” button to open the “Select Address Font” dialog box where you can set the font appearance for your company name and address. Then click the “OK” button when finished to return to the “Fonts” tab. You can then click the “Font” button to open the “Select Font” dialog box where you can choose the font used for most of the text within the checks. Note that you cannot change the text used to display the amount. When finished, click the “OK” button to return to the “Fonts” tab.

You can print partial pages of multi-page checks, like the “Standard” or “Wallet” sizes, by using the “Partial Page” tab to select the option button that corresponds to the envelope loading style used by the envelope feeder on your printer.

Once you have set your desired printing options for your checks, click the “Print” button at the right side of the “Print Checks” dialog box to print your checks. Before printing your checks, note that the total number of checks to print and the total dollar value are displayed at the top of the “Print Checks” dialog box. This can be a great way to double-check the number of checks to print before actually printing the checks.

13.5- Transferring Funds Between Accounts:

You can easily transfer money between accounts within QuickBooks by using the “Transfer Funds Between Accounts” window. You can access this window by selecting “Banking| Transfer Funds” from the Menu Bar. In this window, start by entering the date of the transfer into the “Date” field. Next, select the bank account to transfer funds from by using the “Transfer Funds From” drop-down. Then select the name of the account to transfer the funds into by using the “Transfer Funds To” drop-down. Then enter the amount of the transfer into the “Transfer Amount” field. When you are ready to save the transaction, click the “Save & Close” button to finish the funds transfer and close the window.

13.6- Reconciling Accounts:

Reconciling is the process of ensuring that your checking account record in QuickBooks matches the bank statement of the account. Reconciling your checking account is a very good habit to get into because it allows you to spot bank errors and avoid overdraft fees. When reconciling accounts, the goal is to make your bank statement and your account balance within QuickBooks match. While you will most commonly reconcile your checking account, you can actually reconcile several different types of accounts, if desired- such as other asset accounts, for example.

To begin reconciling an account, select “Banking| Reconcile” from the Menu Bar. In the “Begin Reconciliation” window, first select which account you want to reconcile from the “Account” drop-down. Then enter the “Statement Date” for the bank statement of the account you are reconciling with your QuickBooks account. Next enter the “Ending Balance” from your bank’s account statement. Next enter any service charge or interest earned shown on the bank statement, but not yet recorded in QuickBooks. To record service charges, enter the amount of service charges into the “Service Charge” field. Then select the date that the service charges were assessed from the adjacent “Date” calendar selector. You can then use the adjacent “Account” drop-down to select the account that is used to track service charge amounts, such as “Bank Service Fees.” If the account has gained interest, then enter the amount of interest earned, as shown on the bank statement, into the “Interest Earned” field. As with service charges, you then enter the date that the interest was earned into the “Date” field and select the income account used to track interest income from the adjacent “Account” drop-down.

In QuickBooks, you have a “Locate Discrepancies” button that you can click to launch the “Locate Discrepancies” dialog box. Here you can click the “Discrepancy Report” button to view a report that shows any changes to previously cleared transactions from prior account reconciliations. This can be a useful tool for locating data entry errors that can cause reconciliation problems. You can also click the “Previous Reports” button to select a type of reconciliation report to run. The report will show the transactions that were marked as cleared from your last reconciliation.

Also notice the “Undo Last Reconciliation” button at the bottom of the “Locate Discrepancies” and “Begin Reconciliation” windows. If you click this button, it will undo your last account reconciliation for the selected account. This is an extreme move, and doing it will completely unreconcile the last account reconciliation you performed on the selected account. If you are still viewing the “Locate Discrepancies” window, you can return to the “Begin Reconciliation” screen by clicking the “Restart Reconciliation” button.

In the “Begin Reconciliation” window, click the “Continue” button to view the “Reconcile” window. In the “Reconcile” window, place checkmarks next to the appropriate withdrawals and deposits within this screen that also appear within your bank statement to mark them as being “cleared.” As you do this, the “Difference” shown in the lower right corner of the screen will slowly approach zero.

If you try to reconcile the account and the “Difference” amount shown is not zero, you may have to enter an “adjustment” transaction that modifies the QuickBooks account balance so that it will agree with the bank statement. You will still have to account for the difference later, though. So, a better idea is to instead try and find the discrepancy between the check register and the banking statement and then correct it.

If needed, you can exit a reconciliation by clicking the “Leave” button at the bottom of the “Reconcile” window. This will not affect the checks and deposits that you marked as being “cleared.” You can return later by simply choosing “Banking| Reconcile” from the Menu Bar. However, you will need to re-enter the information in the “Begin Reconciliation” screen again and click “Continue” to return to the “Reconciliation” window. When you are done in the “Reconciliation” window and the “Difference” displayed is zero, you can then click the “Reconcile Now” button to finish the reconciliation. At this point, a dialog box will appear which allows you to print a reconciliation report, if you would like one.

13.7- Voiding Checks:

You can void a check that you have created, if necessary. To void a check, first open the check that you would like to void and display it in the “Write Checks” window. Then, select “Edit| Void Check” from the Menu Bar to void the check displayed in the “Write Checks” window.

14.1- Sales Tax Reports:

If you are required to collect sales tax from customers, you must also make periodic payments of the sales tax you have collected to the appropriate taxing authorities. QuickBooks gives you three ways to view the amount of your sales tax liability. You can use either the “Sales Tax Liability” report, the “Sales Tax Payable” register, or the “Pay Sales Tax” window to view your sales tax liability amounts.

In addition to this basic information, you also have two sales tax reports that you can use to show information about the sales tax owed. The “Sales Tax Liability” report provides complete information about the sales tax the company owes for a specified time period. It will show, for the date range selected, the total taxable sales, total non-taxable sales, and the total amount of sales tax owed to each taxing agency. QuickBooks displays your sales tax liability report on an accrual basis, unless you have changed the default setting in the “Sales Tax” category within the “Preferences” window. To view the “Sales Tax Liability” report, select either “Reports| Vendors & Payables| Sales Tax Liability” or “Vendors| Sales Tax| Sales Tax Liability” from the Menu Bar to open the report.

Another report that can be useful when dealing with sales tax is the “Sales Tax Revenue Summary” report, which shows where your sales tax revenue is coming from. It shows the sources of all taxable and non-taxable transactions, broken down by individual sales tax codes. You can view this report by selecting either “Reports| Vendors & Payables| Sales Tax Revenue Summary” or “Vendors| Sales Tax| Sales Tax Revenue Summary” from the Menu Bar.

14.2- Using the Sales Tax Payable Register:

Each time that you create an invoice or sales receipt that includes sales tax, QuickBooks enters the information into your “Sales Tax Payable” account register. QuickBooks keeps track of transactions for all tax vendors using the same “Sales Tax Payable” account. You can open the “Sales Tax Payable” register to inspect the entries by opening the “Chart of Accounts” list and then double-clicking the “Sales Tax Payable” account within the list.

Each entry in the “Sales Tax Payable” register represents a single tax transaction. Taxes that you record on invoices and sales receipts appear as increases to the account’s balance, and payments that you make to tax agencies appear as decreases to the balance. The ending balance of the register is your current tax liability.

Notice that some transactions within this register may have the same invoice number shown. When you record two “Sales Tax Items” on the same invoice or sale, often when using a “Sales Tax Group,” the register makes a separate entry for each separate tax collected.

14.3- Paying Your Tax Agencies:

When the time comes to pay your sales tax, you MUST use the “Pay Sales Tax” window to write a check to your tax agency or agencies. You open the “Pay Sales Tax” window by selecting “Vendors| Sales Tax| Pay Sales Tax…” from the Menu Bar.

In the “Pay Sales Tax” window, use the “Pay From Account” drop-down to select the bank account to use for the sales tax payments. Then enter the date to print on the payment checks into the “Check Date” field. You can use the “Show sales tax due through” calendar selector to choose the date through which you need to pay the sales tax collected. If the check is to be printed, then check the “To be printed” checkbox at the bottom of this window. Otherwise, you can uncheck the box and then enter the starting number of the check issued into the “Starting Check No.” field.

The list of taxing agencies to whom you owe tax will be displayed in the “Pay Sales Tax” window. You can select the agencies to pay by clicking into the “Pay” column to the left of the agencies that you need to pay. Once you have your selections made, click the “OK” button to have QuickBooks automatically create the tax payment checks. QuickBooks also updates your sales tax report and sales tax payable register to show your payment.

Note that you must pay your sales tax using this method in order for QuickBooks to accurately update the sales tax information for each taxing authority. Do not simply write a normal check for the amount due and attribute it to the “Sales Tax Payable” account! This will disrupt the way in which QuickBooks tracks the individual amounts collected and paid for each sales tax authority.

Another point worth noting is that if you need to adjust the amount of sales tax due to an authority shown within the “Pay Sales Tax” window, you can select the sales tax entry to adjust from within this window and then click the “Adjust” button to open the “Sales Tax Adjustment” window. Here you can enter a date for the adjustment into the “Adjustment Date” field. Then you can enter a number for the adjustment entry into the “Entry No.” field. You then select the sales tax authority whose amounts you need to adjust by selecting the name from the “Sales Tax Vendor” drop-down. You then select the account used to track the adjustment from the “Adjustment Account” drop-down. Then in the “Adjustment” section, select either the “Increase Sales Tax by” or “Reduce Sales Tax by” option button, as appropriate. You can then enter the amount of the adjustment into the “Amount” field. To then add the adjustment to the “Pay Sales Tax” window, so that you can select it for payment along with your original entry for the authority, just click the “OK” button.

15.1- Graph and Report Preferences:

You can set the default personal and company preferences for reports and graphs created within QuickBooks by changing the settings within the “Preferences” dialog box. You can access these settings by selecting “Edit| Preferences…” from the Menu Bar to open the “Preferences” dialog box.

In the “Preferences” dialog box, click the “Reports & Graphs” icon in the listing of categories shown in the list at the left side of the “Preferences” window. Then set default personal report preferences on the “My Preferences” tab and set default company preferences on the “Company Preferences” tab.

Click the “My Preferences” tabto begin. If you want QuickBooks to prompt you to modify report options prior to displaying a report, then check the “Prompt me to modify report options before opening a report” checkbox. In the “Reports and Graphs” section, you select how you want QuickBooks to behave when the data within a report needs to be refreshed. You can select either “Prompt me to refresh,” “Refresh automatically,” or “Don’t refresh.” If you select the “Refresh automatically” option, then when you change a report parameter, QuickBooks will refresh the report to show the change immediately. In the “Graphs Only” section, you can check the “Draw graphs in 2D (faster)” option in order to show graphs in 2D versus 3D, if desired. If you prefer to use patterns versus colors when rendering graphs, then you can check the “Use patterns” checkbox.

Then click the “Company Preferences” tab. In the “Summary Reports Basis” section, you can select how you prefer your summary reports to be displayed, by default. You can select either “Cash” or “Accrual.” In the “Aging Reports” section, you can select which date to use as the basis for your aging reports- “Age from due date” or “Age from transaction date.” In the “Reports- Show Items by:” section, select the desired option button to choose how to display items within reports. In the “Reports- Show Accounts by:” section, select the option button to choose how to display accounts within reports. For both items and accounts, you can select to show either the “Name only,” “Description Only,” or “Name and Description.”

To choose which account balances are included in the “Operating,” “Investing,” or “Financing” sections of the “Statement of Cash Flows” report, click the “Classify Cash…” button to open the “Classify Cash” dialog box. Here you can select an account shown and then check either the “Operating,” “Investing,” or “Financing” columns to assign its balance to the selected section of the “Statement of Cash Flows” report. Make any changes that you need to here, and then click the “OK” button to return to the “Preferences” dialog box.

You can combine multiple items within a transaction shown within a report into a single line by default by checking the “Collapse Transactions” checkbox. Note that this may cause report generation to take longer within QuickBooks.

You can also set the default appearance of the “Header/Footer” and “Fonts & Numbers” used within your QuickBooks reports by clicking the “Format…” button to open the “Report Format Preferences” dialog box. Here you can set your default report preferences for the “Header/Footer” and “Fonts & Numbers” by clicking the desired tab and then making any changes you want to set as the defaults for your reports. When you are finished, click the “OK” button to set the defaults. Note that if you would like to review setting these report properties, please see lesson “15.5- Modifying a Report.”

Once you have set your default graph and report preferences as desired, you can then click the “OK” button within the “Preferences” dialog box to apply your preferences.

15.2- Using QuickReports:

One way to see a report on your QuickBooks data is to create a QuickReport. QuickReports are predesigned reports that display information about the items you are currently viewing onscreen. Whenever you have a list, a register, or a form displayed onscreen, you can click a button or hyperlink to have QuickBooks create a QuickReport on the data displayed.

For example, if you are viewing the “Vendor List” and you want to see a transaction history for a selected vendor, you can create a QuickReport. To do this, select the vendor’s name from the “Vendors” list within the Vendor Center and then click the “QuickReport” hyperlink in the upper-right corner of the Vendor Center. At that point, you will see a QuickReport appear that lists your transactions with the selected vendor for the current accounting period.

You can also generate a QuickReport on any form displayed in QuickBooks or on any selected record within a list by simply pressing “Ctrl + Q” on your keyboard with the form displayed or the list entry selected. The QuickReport will display within its own window, which you may close when you are done viewing the report by clicking the small “x” in the upper right corner of the window.

15.3- Using QuickZoom:

When viewing reports displayed within QuickBooks you will often see transaction data or summary totals of those transactions. You can use the QuickZoom feature when viewing reports within QuickBooks to display the detail data used for summary values in reports. These details will appear in a separate report window. You can also use this feature on any transaction entry displayed within a report to open that transaction itself in a separate window. Also, when viewing graphs in QuickBooks, you can use the QuickZoom feature to view a breakdown of the graphic data in either a separate graph or separate report. Basically, you can use this feature to trace report data back to its original sources. As such, this tool can be an easy way to open transaction data from within reports when viewing them onscreen.

To use the QuickZoom feature on any report displayed in QuickBooks, hold your mouse pointer over any line within a report until you see your mouse pointer turn into the QuickZoom symbol. The QuickZoom symbol is a magnifying glass with a small “Z” inside of it. When you see your mouse pointer turn into this symbol, you can double-click the report line to display the original transaction, or detail report for the selected report line, within a separate window.

15.4- Preset Reports:

In addition to the QuickReports that you can view on any selected data or any form displayed within QuickBooks, QuickBooks also provides dozens of preset reports that you can view, customize, and then save as your own custom reports. The preset reports include many different types of standard business reports, such as the profit and loss report, balance sheet report, accounts receivable reports, sales reports, accounts payable reports, inventory reports, and many other types of useful business reports.

The “Reports” menu within the Menu Bar groups the preset reports into twelve major categories, which are listed in the table below. To access any report in QuickBooks, click the “Reports” command in the Menu Bar, roll your mouse pointer over the desired report category, and then click on the name of the report that you want to open from the side menu of report choices that appears.

15.5- Modifying a Report:

While the preset reports provided in QuickBooks are very useful, you will probably want to create your own custom reports for your company file. You can create reports that either detail or summarize the data stored in your QuickBooks company file. You can create a custom transaction detail or summary report from scratch to specify all of the report’s features, or you can modify one of the preset reports to display the data you want. Modifying a preset report can often save you a few steps when creating a custom report, especially if there is a preset report that closely resembles the data you want to see. Once you have modified a preset report, you can memorize it to save it as your own custom report. Modifying a preset report is a good way to learn about the report customization options available in QuickBooks. Once you have mastered the available reporting options, you can then design your own custom transaction detail and summary reports with much more confidence.

The available report customization options will change, depending on whether or not the report you modify or create is a “Transaction Detail” or “Summary” report. A “Transaction Detail” report displays detailed transaction information about data within QuickBooks. A “Summary” report summarizes totals from transaction details within QuickBooks. With the “Summary” reports, you have more summarization options available. In this lesson, we will examine how to set reporting options for both “Transaction Detail” and “Summary” reports within QuickBooks.

To modify a report based on a preset report, first open the desired preset report you want to use as the basis for your own custom report. Then click the “Customize Report” button in the toolbar at the top of the preset report to open the “Modify Report” dialog box. You use the “Modify Report” dialog box to customize the report settings.

To create a new transaction detail or summary report from scratch within QuickBooks, select “Reports| Custom Reports” from the Menu Bar and then choose either “Transaction Detail” or “Summary.” In the “Modify Report” dialog box that appears, you can then set all of the report’s aspects on the tabs shown to create your own custom report from scratch.

In the “Modify Report” dialog box you will see the major categories of report customization displayed as tabs across the top of the dialog box. These tabs are “Display,” “Filters,” “Header/Footer,” and “Fonts & Numbers.” Generally, on the “Display” tab you can add and/or customize report columns, set summarization options, and change the date range of the report. You use the “Filters” tab to choose which transactions are displayed within the report. Changing the options available on the “Display” and “Filters” tabs allows you to view anything you want to know about your QuickBooks data. Most report modification is made on these two tabs. In addition to the “Display” and “Filters” tabs, you use the “Header/Footer” tab and the “Fonts & Numbers” tab to control the general appearance of the report header and footer, and its text and numbers.

On the “Display” tab, you will see slightly different options depending upon the type of report you are creating: “Transaction Detail” or “Summary.” For both types of reports, the “Report Date Range” section is used to select the range of transaction dates used for the report. You can use the “Dates” drop-down to select from the most commonly used report ranges or you can use the “From” and “To” date selectors to specify a starting date and ending date for the records you want to use.

Also for both types of reports, you choose how the report calculates and displays income and expenses by choosing either “Accrual” or “Cash,” as desired, from the “Report Basis” section.

The next section, “Columns,” is where you will see the primary difference between the “Transaction Detail” and “Summary” reports within QuickBooks. If you are creating a “Transaction Detail” report, then in the “Columns” section you can click on the name of any column shown in the scrollable listing to place a checkmark next to it and add it to the report. To remove a column marked as being added to the report, click it to remove the check from the column name and its display from your report. You can choose how to display a total over the transactions shown by making a choice from the “Total by” drop-down menu. You can then use the “Sort by” drop-down to choose by which column’s values you wish to sort the report. You can choose any report column that you have added to the report from this drop-down menu. You can then select either “Ascending order” or “Descending order” to select the sorting method to use on the selected column’s values.

Next, for “Transaction Detail” reports, you can click the “Advanced…” button to open the “Advanced Options” dialog box. Here you will see the “Include” and “Open Balance / Aging” sections. In the “Include” section, you can select either the “All” option to include all accounts, regardless of whether or not there was any activity within the account for the date range selected, or you can select the “In Use” option to only use accounts that had activity within the date range specified. For aging reports, you can select to view the customer’s open balance as of the “Current” date or “As of Report Date” by selecting the desired option button. Once you have set any advanced options, if needed, click the “OK” button in the “Advanced Options” dialog box to apply them and return to the “Modify Report” window.

For “Summary” reports, the “Columns” section within the “Display” tab looks very different. Most “Summary” reports will show columns of totals for selected rows of data. In this section, you choose what type of data to display within the columns of the report by making a selection from the “Display columns by” drop-down. You then choose the values to summarize within the rows by making a choice from the “Display rows by” drop-down. To the right of that, you can select to display columns for the “Amount,” “Quantity,” or “Both” by selecting an option button below the “Display columns for” text. Then, to the right, you can choose how to sort the data by making a selection from the “Sort by” drop-down. You can select either to perform an “Ascending” or “Descending” sort on this data by making a choice from the “Sort in” option button group. For some types of report date ranges, such as “This Fiscal Year,” you can also add comparison subcolumns to the report by checking any desired checkboxes shown within the “Add subcolumns for” section. The choices available will depend on the date range selected. Simply check the checkboxes shown to add those summary subcolumns to your report, if desired.

Finally, if needed, you can click the “Advanced…” button to open the “Advanced Options” dialog box. For “Summary” reports, you can choose what records to use in the report by making your choice from the “Display Columns” and “Display Rows” sections. You can select “Active” accounts to only show data from accounts that had activity in the selected report period; “All” accounts, regardless of activity in the selected report period; or “Non-zero” accounts to show any account that has a non-zero balance, regardless of activity. You can then choose the reporting period to use for your data from the “Reporting Calendar” section. Your choices are “Fiscal Year,” “Calendar Year,” or “Income Tax Year.” Once you have set any advanced options within the “Advanced Options” dialog box, click the “OK” button to apply them and return to the “Display” tab within the “Modify Report” window.

For both “Transaction Detail” and “Summary” reports, the “Filters” tab within the “Modify Report” window is used to create and modify the report filters that allow you to further refine your data selection within the report. For example, assuming that you decided to display the “Account” data within your report on the “Display” tab, you could then apply a filter to the account data to only display “Expense” account types. This is simply one example of filtering the selected report data, and you can set and modify any of the available filters shown within this tab to customize your report content to create hundreds of possible filter variations.

If the report you are modifying already has filters applied, such as the filters applied to many of the preset reports, you will see the current filters and their settings shown in the “Current Filter Choices” section of the “Filters” tab. You can click on any filter shown in this list to view its settings to the left, within the “Choose Filter” section. In this section, you can change the settings of the filter by using the options available. Depending upon which filter you select, the options for filtering it will vary. Some filters need you to type a matching value, some allow you to select from a drop-down menu of choices, and some allow you to select a desired option from one or two possible options.

You can add new filters to the report by selecting the name of a filter to apply from the “Choose Filter” list and then changing its settings. To read more about how a filter you have selected can be applied, you can click the “Tell me more…” button at the bottom of this tab to open a help file about the filter and how it can be used in reports. This is a good way to familiarize yourself with many of the report filtering options available.

To completely remove a filter that has been applied to a report, start by selecting the name of the filter to remove from the “Current Filter Choices” list at the right side of the “Filters” tab. Then click the “Remove Selected Filter” button to delete the filter from the report. Also note that both the “Display” and “Filters” tabs contain a “Revert” button that will revert any changes you have made to them, if needed.

You can click the “Header/Footer” tab in the “Modify Report” window to change the display of content within the header and footer of your report. In the “Show Header Information” section, check any content that you want to show in the header of your report. You can then type the text to display into the adjacent fields. You then repeat this process for the “Show Footer Information” section to display the content you choose in the report footer area. Then use the “Alignment” drop-down in the “Page Layout” section to select the desired layout for your header and footer content within the report.

You can click the “Fonts & Numbers” tab in the “Modify Report” window to set the display of the fonts used within the various sections of your report shown in the “Fonts” section of this tab. You can also set the display of number values in your report within this tab. To set the font used within a report section, start by selecting the report section to format from the “Change Font For” list. The current font used for the display of the selected item will be shown to the right of the list. Then click the “Change Font…” button to open a dialog box that will allow you to change the appearance of the text. Select your desired font options from the choices shown and then click the “OK” button in the dialog box to apply them and return to the “Modify Report” window. You then repeat this process for any other report sections whose fonts you wish to modify.   You can set the display of negative numbers within the report by making your desired selections from the options shown in the “Show Negative Numbers” section. You can set optional display settings for all numbers in the “Show All Numbers” section by checking any available checkboxes, if desired.

Once you have finished modifying your report, click the “OK” button within the “Modify Report” window to apply your report settings.

15.6- Rearranging and Resizing Report Columns:

You can rearrange the order of columns from left to right within any QuickBooks report. To do this, first display the report you want to rearrange onscreen. Then place your mouse pointer over the name of the column to move that appears in the column headings at the top of the report until you see your mouse pointer change into a “hand” icon. You can then click and drag the column left or right. As you are dragging the column, you will see a small upward-pointing red arrow appear between the column names. This arrow indicates where the column will be placed when you release the mouse button. When it is in the desired location, release the mouse button to move the column to the selected location.

You can also resize columns in a report by placing your mouse pointer to the right of the name of the column that you want to resize, where the diamond icon is located, until the mouse pointer changes into a thin vertical line intersected by a horizontal arrow. Click and drag with your mouse at that point in time to resize the column. Then release the mouse button when the column is the size that you desire.

15.7- Memorizing Reports:

After you have modified a report, you can have QuickBooks memorize the report so you can quickly reproduce the same report in the future without having to reapply all of your customization.

To memorize a modified report, click the “Memorize” button in the toolbar at the top of the modified report’s window to open the “Memorize Report” dialog box. Type a name for the new report into the “Name” field. If you want to save it into a memorized report group, check the checkbox for “Save in Memorized Report Group” and then choose the desired group to save it into from the adjacent drop-down menu. When you are finished naming the memorized report, click the “OK” button to save it.

Note that when you memorize a report, you cannot name it the same thing as one of the preset reports because that would overwrite them. So you will have to change the name if modifying a report that was originally based on one of the preset reports.

15.8- Memorized Report Groups:

As you begin to create your own custom reports within QuickBooks, you can create memorized report groups that allow you to organize your memorized reports in a way that makes sense for your company. Memorized report groups allow you to quickly print or view a batch of memorized reports at once.

For illustrative purposes, QuickBooks comes with a few preset memorized report groups that contain common reporting examples for each grouping. You can add your own memorized report to these memorized report groups, or you can create your own groups. When you create a memorized report, note that you can click the checkbox for “Save in Memorized Report Group” and then select the desired memorized report group to save it into from the adjacent drop-down field.

To create a new memorized report group, select “Reports| Memorized Reports| Memorized Report List” from the Menu Bar. In the “Memorized Report List” window, click the “Memorized Report” button and select “New Group” from the pop-up menu that appears. In the “Name” field of the “New Memorized Report Group” window, type a name for the new report group. Click the “OK” button to have QuickBooks add this memorized report group to the list.

Once you have added reports to the memorized report groups, you can then use the groups that appear within the “Memorized Report List” to batch print or batch display the reports contained within a selected group. To do this, just select the name of the memorized report group to print or display within the “Memorized Report List.” Then click either the “Display…” or “Print…” buttons shown at the bottom of the “Memorized Report List” to open the “Process Multiple Reports” window. In this window, you can use the “Select Memorized Report From” drop-down at the top of the window to select the desired memorized report group that contains the reports you wish to batch display or print. Note that you can choose the “<Ungrouped Reports>” choice from this drop-down menu to select memorized reports that you have not saved into a memorized report group.

For whichever grouping is selected, the reports within the group will then be displayed in the list below. If there are reports that you do not want to batch print or display, then you can click the checkmark at left side of their name in this list to remove the checkmark and de-select them.

When you have the reports that you want to batch print or batch display selected, then click either the “Display” or “Print” buttons at the bottom of this window to batch display or batch print the reports.

15.9- Printing Reports:

You can easily print any report displayed in QuickBooks. To do this, open the report you want to print and then click the “Print” button in the toolbar of the report and then select the “Report” command from the drop-down menu. That will display the “Print Reports” window where you can set options for the printer that you would like to use, page orientation, page breaking behavior, the print range, and the number of copies of the report. Once you have set the options that you would prefer, just click the “Print” button in the “Print Reports” window to print the currently displayed report.

15.10- Batch Printing Forms:

If you want to “batch print” a set of forms, like all your paychecks or all your bill payment checks, you can. You can also print mailing labels and other assorted forms. To print forms, you can select “File| Print Forms” from the Menu Bar. You can then select the type of form to print from the side menu of choices that appears.

15.11- Exporting Reports to Microsoft Excel:

You can export report data from QuickBooks to Microsoft Excel. You must have Excel 2003, 2007, 2010, or 2013 for this feature to work and either QuickBooks Pro or Premier. Since the data is exported to Excel, changes that you make to it in Excel will not impact the data in QuickBooks. So feel free to change it as needed in Excel. To do this, open the report that you want to export. Then click the “Excel” button in the toolbar at the top of the report, and select either the “Create New Worksheet” or “Update Existing Worksheet” commands.

When you export a report to Excel in the dialog box, you can save it as a new sheet in a workbook or create a new workbook. You can also save it as a CSV file, which would be opened using Excel. You can also indicate whether or not you want to preserve the QuickBooks formatting by clicking the “Advanced…” button. You can then turn on or off several Excel options, including: AutoFit, which sets column widths in Excel wide enough to display all of the data; Freeze Panes, which allows you to scroll through information while keeping row and column headers in view; and Show Gridlines, which shows the gridlines in Excel. Also, you can select the option to update an existing worksheet in Excel. When you are ready, click the “Export” button to export your report data.

15.12- Saving Forms and Reports as PDF Files:

In QuickBooks, you can also save any report, invoice, estimate or any other form as a PDF (Portable Document Format) file that you can then send as an e-mail attachment through your e-mail program.

To save any form or report as a PDF document, just open the form or report that you want to save as a PDF document. Then select “File| Save as PDF…” from the Menu Bar. This will launch the “Save document as PDF” dialog box where you can select where you want to save the PDF file and what to name it. Just click the “Save” button when you are finished to create the PDF file.

16.1- Using Graphs:

While a report can show numbers that are critical to understanding the overall health of your company, some people like a visual representation of the data. That’s where graphs come into play in QuickBooks. A QuickInsight graph shows your data as either a bar graph or a pie chart (except for the “Budget vs. Actual” and “Net Worth” graphs). The bar graphs and pie charts are just different visual ways of presenting the same financial information that you view in a typical report. QuickBooks has six types of graphs that can provide up to 15 different views of your data.

The QuickInsight graphs that QuickBooks produces have several features in common. One commonality is that every graph window (except “Net Worth” and “Budget vs. Actual”) shows a bar graph in the top half of the graph window and a pie chart in the bottom half of the window. In the graph window, the bar graph will display totals of the data broken down by a specified period and the pie chart will show a summary total of some type of information shown in the bar graph above.

Also, every graph comes with a graph toolbar which you can use to customize the graphs in much the same way as reports. Like the reports, you can also use QuickZoom in a graph to see the actual numbers represented by the selected items in the graph. You will typically get summary reports that you can continue to QuickZoom to trace backwards to the original transactions from which the totals you view in the graph are derived.

17.1- Creating New Form Templates:

Every form that you enter information into has its own layout of fields, images and labels used for data entry and printed display. In QuickBooks, you can customize the layout of a form to better suit your company’s needs. For example, there are three preset formats for invoices: professional, service, and product. If these templates don’t precisely fulfill your needs, you can customize them as needed. You can also customize much more than just invoices in QuickBooks. The forms that you can customize in QuickBooks are: invoices, sales receipts, credit memos, statements, purchase orders, and estimates. Note that estimates are only available in QuickBooks Pro and Premier. For each form, you can choose which fields and columns to include, where they are placed in the form, and what they are called. Once you have finished customizing the form, you can save the new layout as a custom template to use at your convenience.

In QuickBooks, you use the “Basic Customization” and “Additional Customization” windows to make general customization settings for your forms. In these windows, you decide what fields to add to your form for both onscreen display and within the printed version. After performing the basic customization, you can then use the “Layout Designer” to arrange the selected fields, set additional formatting options, and add text boxes and images to the printed version of the form.

You begin the process by selecting “Lists| Templates” from the Menu Bar to open the “Templates” list. In the “Templates” list, click the “Templates” button in the lower left corner to show a menu of choices. To make a new template, select the “New” command from the pop-up menu. That will present you with the “Select Template Type” dialog box, where you select the option button that corresponds to the type of form you are trying to create. Then click the “OK” button to begin customizing your selected form template.

17.2- Performing Basic Customization:

Once you have selected a type of form to customize, you will then be presented with the “Basic Customization” window. This window displays the most commonly used and basic customization options for forms. You can make any changes to the options shown here, and then examine how your choice impacts the preview of the form displayed at the right side of the window.

At the very top of the “Basic Customization” window, you will see the name of the new template that you have created shown within the “Selected Template” section.

In the “Logo & Fonts” section, you can check the “Use logo” checkbox to add your company logo to the printed version of the form. When you do this, the “Select Image” dialog box will appear. Use this dialog box to browse for and then select the image file to use as your logo. Once it has been selected, click the “Open” button to return to the “Basic Customization” window. You can choose a color scheme for your form by making a selection from the “Select Color Scheme” drop-down menu. You can then click the “Apply Color Scheme” button to apply the selected scheme to the preview shown at right. You can change the font used within the sections of the form by selecting a section within the “Change Font For” list. Then click the “Change Font…” button to open an “Example” dialog box where you can change the font attributes for the selected item. When you have finished making your font choices, click the “OK” button to return to the “Basic Customization” window. Your choices will then be displayed in the preview to the right.

In the “Company & Transaction Information” section, check the checkboxes for any company information that you want to add to the printed version of the form. If you need to update your company information, note that you can click the “Update Information…” button to open the “Company Information” window where you can input any company information required. If you do this, click the “OK” button to return to the “Basic Customization” window when finished.

Once you have completed the basic customization, you can then choose what you would like to do next. You can click the “Additional Customization…” button to display the “Additional Customization” window where you can set more advanced features of the template. You can click the “Layout Designer…” button to open the “Layout Designer” window where you can change the placement of elements within the printed version of the form. You can click the “OK” button to save the template into your Template List as it is. You can also click the “Cancel” button, if needed, to cancel the changes as well as the creation of the new template.

17.3- Performing Additional Customization:

After completing the basic form customization within a template, you can click the “Additional Customization…” button to set additional form customization options within the “Additional Customization” window. The “Additional Customization” window uses several tabs to display different sets of options for customizing the various sections of the selected type of form. Each area within the form is represented by a tab. Click on the name of the tab that corresponds to the area of the form you would like to customize.

Next, check or uncheck the checkboxes next to the names of the fields underneath the “Screen” and “Print” columns to show or hide their display within both the “Screen” version of the form- where you perform data entry, and the “Print” version of the form- which is the version that you print. Then enter the titles you want to display for those fields into the adjacent text boxes. Note that for some fields you can have a field that appears in one version but not the other, if desired. For example, if you have a custom field that you want to enable within the screen version so that you can enter or view information, but don’t want the customer to see this information within the printed version, then select the “Screen” checkbox for that field and clear the “Print” checkbox.

For any tabs that display columnar information, such as the “Columns” tab, you can change the order that the columns are displayed from left to right within the line item area of the form by typing a number into the “Order” field. The columns will be arranged and displayed from left to right from the lowest to the highest number.

To apply print settings to the printed version of the template, click the “Print” tab. On this tab, you can specify default print settings for the template, if desired.

After performing additional customization on the form template, you can click the “Layout Designer…” button to change the display of elements within the printed version of the form template within the “Layout Designer” window. Alternately, you can click the “OK” button to return to the “Basic Customization” window.

17.4- The Layout Designer:

The “Layout Designer” window lets you change the appearance and placement of data fields, text boxes, labels, and images within the printed version of the form template. Within the “Layout Designer” window you will see the printed version of the form within the main screen, surrounded by a ruler at the left and top sides for measurement purposes. You should also see the margins of the printed version of the form. There is also a grid displayed onscreen that you can use to align onscreen objects. You can scroll the content within the window to view the objects within the printed version of the form template.

There is a toolbar at the top of the window that contains buttons that allows you to manipulate the selected objects within the window. At the bottom of the window you will see the name of the currently selected object, the current magnification level, the placement of the selected object onscreen, and its dimensions. There are also two buttons, named “Margins…” and “Grid…” that allow you to control the appearance of the margins and grid within the window. You also have a checkbox for “Show envelope window,” which you can check in order to display two areas within the window where window envelopes will display billing and return address information. This can assist you in placing that data within the correct areas within the form if you intend to use window envelopes for mailing these forms.

You can change the magnification level of the “Layout Designer” window by clicking the “In” and “Out” buttons within the “Zoom” button group in the toolbar at the top of the window to increase or decrease the size of the area shown onscreen.

As you learn how to make changes to the objects within the “Layout Designer,” you may find that you make a mistake or make change that you do not like. You can click the “Undo” button in the “Undo/Redo” button group of the toolbar at the top of the window to reverse the changes that you make. If you accidentally click the “Undo” button too many times, you can click the “Redo” button to reapply a change you have accidentally reversed.

After making your changes within this window, you can click the “OK” button at the bottom of the window to save the layout changes and return to either the “Basic Customization” or “Additional Customization” window, depending upon which window you were previously viewing before you clicked the “Layout Designer…” button. Note that you can also click the “Cancel” button, if needed, to cancel any layout changes you made and return to the previously opened customization window. In the next few lessons within this chapter, we will examine the tasks that you can perform within the “Layout Designer” window.

17.5- Changing the Grid and Margins in the Layout Designer:

Before you begin changing the layout of objects within the “Layout Designer” window, you should ensure that the margins and the grid shown onscreen are set as needed. The margins and grid aid you in placing the objects into the correct positions within the form so that they will appear correctly when printed.

To change the margin settings for the form, click the “Margins…” button at the bottom of the window to open the “Margins” dialog box. Here you can input the desired margin width in inches into the “Top,” “Bottom,” “Left,” and “Right” fields shown. After settings the margins for the printed form, click the “OK” button to apply them to the view shown within the “Layout Designer” window.

You can change the settings of the grid shown within the “Layout Designer” window by clicking the “Grid…” button at the bottom of the window to open the “Grid and Snap Settings” dialog box. In this dialog box, you can hide the display of the grid within the “Layout Designer” window by removing the checkmark from the “Show grid” checkbox. If you do not want to have the objects within the “Layout Designer” window align themselves to the grid when moving them, then remove the checkmark from the “Snap to grid” checkbox. This allows for more precise placement of objects onscreen, but makes aligning those same objects more difficult. Finally, you can change the amount of spacing between the lines in the grid by making a selection from the “Grid spacing” drop-down menu. When you have finished changing any grid settings you want, click the “OK” button to apply them to the “Layout Designer” window.

17.6- Selecting Objects in the Layout Designer:

Before you can perform any task within the “Layout Designer” window, you must first learn how to select the form objects shown within the window. You can select an object within the “Layout Designer” window by clicking it to select it. You can tell when an onscreen object has been selected because it will appear with a border comprised of slashes with eight squares around it. These squares are the resizing handles and are used to resize the object. For some activities you perform within this window, you may also want to select multiple objects simultaneously. When multiple objects are simultaneously selected, actions that you perform are then applied to all selected objects. This is helpful when applying the same formatting to multiple objects or when moving multiple objects as a single group. For example, if you want to move a label and its associated data field from one area of the form to another, you could select them both and then move them together to a new area within the form. To select multiple form objects, click the first object to select it and then hold down the “Shift” key with your free hand. Then click on any other objects that you want to select as part of the group. Then release the “Shift” keywhen you are finished. To de-select a selected object or objects, simply click into the blank or empty area within the form.

17.7- Moving and Resizing Objects in the Layout Designer:

To move selected objects within the “Layout Designer” window, click and drag the objects from one place to another in the form. To resize a selected object, place your mouse pointer over one of the resizing squares until the mouse pointer turns into a double-pointed arrow. At that point, click and drag with your mouse to resize the selected object in either direction shown by the arrows. Note that you cannot resize multiple selected objects using this method. However, you can make multiple selected objects the same height, the same width, or the exact same size. To do this, first simultaneously select the objects that you want to make the same height, width, or size. Then click either the “Height,” “Width,” or “Size” buttons within the “Make Same” button group in the toolbar at the top of the window. The selected objects will then be the same height as the tallest, the same width as the longest, or the exact same size as the largest, depending upon which of the three buttons you click.

17.8- Formatting Objects in the Layout Designer:

You can change the text, border, and background of a text box or data field within the “Layout Designer” window. To do this, double-click the text box or data field that you want to format to open the “Properties” dialog box. Alternately, you can select a text box or data field and then click the “Properties…” button in the toolbar at the top of the “Layout Designer” window to also open the “Properties” dialog box.

Within the “Properties” dialog box you can set the appearance of the text box or data field by changing the settings shown within the “Text,” “Border,” and “Background” tabs. For text boxes and labels, you can enter the text to display into the text box field that appears at the top of the “Properties” dialog box.

To set the appearance of the font used to display the text within the object, click the “Text” tab. In the “Justification” section, you can select either “Left,” “Right,” or “Center” for the “Horizontal” section and “Top,” “Bottom,” or “Center” for the “Vertical” section to set the horizontal and vertical text alignment. Note that if you want to indent the first line of text within a text box, then click the “Indent First Line of Text” checkbox within the “Horizontal” section. To select the font used to display the text within the object, click the “Font…” button to open the “Example” dialog box. Here you can change the “Font,” “Font style,” Size,” “Effects,” and “Color” of the text within the object by making your choices from the fields within this dialog box. When you have finished setting the font attributes, click the “OK” button to apply them and return to the “Properties” dialog box. You can set the font color for the object within the “Text” tab by clicking the “Color” button shown to open the “Change Color” dialog box. Here you can select any color you want for the font, and then click the “OK” button to return to the “Properties” dialog box.

To change the border of the selected object, click the “Border” tab within the “Properties” dialog box. Then choose the sides of the object to apply a border to by checking the “Top,” “Bottom,” “Left,” and “Right” checkboxes, as desired. If you apply a border to the object, you can select the increment used to round the corners of the borders by making a selection from the “Rounded Corners” section. You can select the desired border pattern to use from the “Pattern” section, as well as select a desired border thickness from the “Thickness” section. You can click the “Color” button to open the “Change Color” dialog box. Here you can select a color for the border, and then click the “OK” button to return to the “Properties” dialog box.

To set a background color for the object, click the “Background” tab within the “Properties” dialog box. Then check the “Fill Background” checkbox. After checking this checkbox, click the “Background Color” button shown to open the “Change Color” dialog box. Here you can select any color you want for the background of the object, and then click the “OK” button to return to the “Properties” dialog box.

After you have finished applying any formatting settings that you want the object to have, click the “OK” button within the “Properties” dialog box to apply your changes to the selected text box or label.

17.9- Copying Objects and Formatting in the Layout Designer:

You can easily copy a selected object within the “Layout Designer” window by clicking the “Copy” button within the toolbar at the top of the window. The copy of the selected object will then appear slightly down and to the right of the original. You can then move the copy to a new place within the window and edit it as needed.

You can also copy the formatting properties of a selected object and then paste only the formatting onto other objects within the “Layout Designer” window. This is a useful feature that allows you to format the appearance of a single object and then copy that appearance onto other objects without having to manually open the “Properties” dialog box in order to change the formatting for each item individually.

To copy the formatting of a selected object, click the “Copy Format” button within the toolbar at the top of the window. The button will then change to the “End Format” button. You then place your mouse pointer over the object to which you want to paste the formatting of the object whose formatting you just copied. Note that your mouse pointer now appears as a “paint brush” icon when held over the objects within the window. Then click on the object to paste the copied formatting. Repeat this process until you have applied the copied formatting to all of the necessary objects within the “Layout Designer” window. When you are finished, click the “End Formatting” button to turn this feature off and return to your normal arrow selector mouse pointer.

17.10- Adding and Removing Objects in the Layout Designer:

You can also add additional images, data fields, and text boxes to your form by clicking the “Add” drop-down button in the toolbar at the top of the “Layout Designer” window. From the drop-down menu that appears, you can then choose the type of object to add to the form: “Text Box,” “Data Field,” or “Image.”

If you select the “Text Box” choice, then the “Properties” dialog box will appear onscreen. Enter the text that you want the text box to display into the “Text” field at the top of the dialog box and then set any formatting properties you want the text box to possess in the “Text,” “Border,” and “Background” tabs. Then click the “OK” button to add the text box to the form.

If you select the “Data Field” choice, then the “Add Data Field” dialog box will appear onscreen. Click on the name of the data field that you want to add to the form within this dialog box. Then click the “OK” button to add the data field and its associated label into the form.

If you select the “Image” choice, then the “Select Image” dialog box will appear onscreen. Use this dialog box to navigate to and then select the image that you want to add to the form. After selecting the desired image, click the “Open” button to add the image to the form. Note that if the image is not within the same directory as the company file, then QuickBooks will display a message informing you that the image must be copied into the “Images” folder within the company file’s directory. Click the “OK” button within the “Warning” message box to then copy the image to the correct folder and add the image to your form.

You can remove objects from your form by selecting them and then clicking the “Remove” button in the toolbar at the top of the window.

17.11- Aligning and Stacking Objects in the Layout Designer:

In QuickBooks you must manually align objects to one another by clicking and dragging the objects into position and using the grid for alignment of the left and right edges. You must also manually align objects vertically by clicking and dragging the objects and using the grid for alignment. If you wish to center two differently sized object over one another horizontally, it is possible by using the “Horz” button within the “Center” button group in the toolbar at the top of the “Layout Designer” window.

To do this, first align the objects vertically within the form. Then select the first object and click the “Horz” button. Doing this will align the selected object horizontally within the center of the form. Then de-select the first object. Next, select the second object to align horizontally to the first and click the “Horz” button again. As before, the object will align itself with the center of the form. You can then use the multiple selection method to select both objects as a group, as they should now be centered over one another, and then move the grouped objects as a single unit to the desired destination within the form. Note that if you attempt to perform a multiple selection of objects and then click the “Horz” button, QuickBooks will not center the objects in relation to each other, but rather center the objects as a single unit in relation to the form. So if you wish to center objects in relation to each other, use the previous method described, instead.

You can also change the stacking level of objects within the form. This can be useful when dealing with overlapping images or with text objects that contain a background fill. When you add objects to the form, the newer objects added to the form may appear either on top of or behind older objects within the form if they overlap. You can change the order of overlapping form objects within a stack by first selecting the object whose stacking order you wish to change. Then right-click on the selected object and roll over the “Order” command in the pop-up menu that appears. From the side menu of choices that then appears, select either “Bring Forward” to move the object to the foreground of the stack or select “Send Backwards” to send the object to the background of the stack.

Note that sometimes moving stacked objects can disrupt their stacking order. If that occurs on an object for which you have already selected the “Send Backwards” or “Bring Forwards” command, then the command will appear “greyed-out” or unavailable within the pop-up menu. If this occurs, you can fix it by selecting each object within the stack individually and then choosing the “Send Backwards” or “Bring Forwards” command, based on which command is available, on each object to reset their positions. You can then right-click on the ones that need to be brought forward or sent backwards again and choose the desired command from the pop-up menu, which should then be available, to reset the positions of the necessary objects within the stack.

17.12- Resizing Columns in the Layout Designer:

You can resize the columns displayed within the line items area of your printed form, if you have one. To do this, simply click once on the columns shown towards the bottom of the form to select the entire table of columns. Then place your mouse pointer between any two columns to the left or right of the column that you want to resize until your mouse pointer turns into an icon of a single vertical line intersected by a horizontal arrow. When your mouse pointer changes, click and drag either left or right to increase or decrease the size of the columns.

Note that you cannot select the far right or far left column borders within the table to resize those columns. You can only resize the entire table in order to change the far right or far left borders of the table area. Note that you should not expand the size of the table into the margins of the printed form.

18.1- Creating a Job:

Project-based businesses that want to track income and expenses for customer projects can use the “Jobs” feature within QuickBooks to do this. You can create a job for a customer in the “Customers & Jobs” list. To do this, open the “Customer Center” window and then select the name of the customer for whom you want to make a job within the “Customers & Jobs” list. Then click the “New Customer & Job” button in the upper-left corner of the Customer Center and choose the “Add Job” command from the drop-down to open the “New Job” window. This window is just like the “New Customer” window, except that the first three tabs in the “New Job” window will already be filled-in with the selected customer’s information. All you will need to do is enter a name for the job into the “Job Name” field at the top of the window and then click the “Job Info” tab to enter the specific job information. On this tab, you can enter a longer description for the job into the “Job Description” field. You can then enter the type of job into the “Job Type” field, or choose a previous entry made within this field from the drop-down menu. This field can help you categorize the types of projects you perform for customers. You can use its values as a report filter so that you can see income and expense by job type. You can then select the status of the job from the “Job Status” drop-down field. Be sure to update the value within this field as the project progresses. When the job starts, you can enter the start date into the “Start Date” field. You can then enter the best estimate as to when the job will be completed into the “Projected End Date” field. When the project finally finishes, enter its actual end date into the “End Date” field. When you are finished, click the “OK” button to add the job to the “Customers & Jobs” list. Note that the “Jobs” for the “Customers” appear as “subaccount” entries within this list.

Once you have created a job for a customer, you can then track income and expenses for the customer job by using the “Customer:Job” column that appears within the line items area in your forms, such as the “Enter Bills” form, for example. You can also create estimates to give to a customer for a proposed job within QuickBooks.

18.3- Duplicating Estimates:

You can create multiple estimates for the same job, if needed. Perhaps you have a client that needs a couple of different pricing options for a job, and thus needs multiple estimates for the same job. With QuickBooks, you can easily duplicate and modify an estimate to save time. If you make a copy of an estimate and then make modifications to the copy, as needed, you’ll probably save some typing time. To do this, first display the estimate that you want to duplicate within the “Estimates” window. Then select “Edit| Duplicate Estimate” from the Menu Bar to duplicate the estimate. You should see the next highest estimate number appear within the “Estimate #” field. You can then edit the details of the estimate, as needed, by changing the information in the line item area of the new estimate. Be sure to save the new estimate that you create when you are finished by clicking either the “Save & Close” or “Save & New” button.

Note that if you did not want create the second estimate by duplicating an existing estimate, you can always just create a new estimate for the same job, as well. Also, if you choose to duplicate an estimate you should be careful when you select this command from the Menu Bar, as it is located right next to the “Delete Estimate” command in the drop-down menu.

18.4- Invoicing from an Estimate:

Once you have created an estimate and the customer has approved it, you can use the estimate to invoice the customer. You can either send them an invoice for the entire amount or you can send out several invoices for smaller portions of the estimated amount. This is called progress invoicing. Progress invoicing, which is sometimes called progress billing or partial billing, allows you to invoice for jobs that you work on and complete in phases. When using progress invoicing, you start by creating an estimate for the total job. Then as you complete each phase within the job, you transfer items from the original estimate to an invoice. You can specify which items to include on each invoice and change the estimated amounts or percentages of each item. When you use estimates to create progress invoices, you can run reports to help you compare your estimated cost and revenue to your actual cost and revenue.

To create an invoice from an estimate, open the “Create Invoices” window by selecting “Customers| Create Invoices” from the Menu Bar. Then select the job for which you have created an estimate from the “Customer:Job” drop-down field.

At that point, QuickBooks will automatically display the “Available Estimates” window, which shows all of the available estimates for the selected job. Select the estimate from which you want to create the invoice. Then click the “OK” button to continue.

In the “Create Progress Invoice Based on Estimate” windowthat then appears, select the option button for the invoicing option that you want to use for the invoice. You can select either “Create invoice for the entire estimate (100%),” “Create invoice for a percentage of the entire estimate,” or “Create invoice for selected items or for different percentages of each item.” If you select the first option, then click the “OK” button to transfer all of the items from the estimate to the invoice. If you select the second option, then enter the percentage of the total estimate to place into the current invoice by typing the percentage to bill into the “% of estimate” field. Then click the “OK” button to transfer the selected percentage of all amounts within the estimate to the invoice window. If you select the third option, then click the “OK” button to open the “Specify Invoice Amounts for Items on Estimate” window.

In this window you will see all of the items listed from the estimate. You can then enter the amounts or percentage of each item to transfer to the invoice by entering the desired percentages, rates, and quantities into the columns shown. Ensure that the “Show Quantity and Rate” and “Show Percentage” checkboxes are checked to enable the display of those columns, if desired. Once you have entered the amounts for the items you want to transfer to the invoice, click the “OK” button. Note that all of the items will transfer to the invoice, but you can set zero amount line items to not print, if desired, by changing the settings within the “Jobs and Estimates” category within the “Preferences” dialog box in QuickBooks.

At that point, you will then see the items that you want to bill displayed within the “Create Invoices” window. You can then double-check and change any information needed within the invoice. After you have done that, click either the “Save & Close” or “Save & New” buttons to finish.

18.5- Updating Job Statuses:

Each time the status of a job changes, you should update its status in the “Customers & Jobs” list within the “Customer Center” window. For instance, if you began work on a job that was labeled “Pending,” you should update the information for the job to reflect the fact that you have started work on it.

You can update a job status by double-clicking on the job entry within in the “Customers & Jobs” list  or by selecting the job within this list and then selecting “Edit| Edit Customer:Job” from the Menu Bar to open the “Edit Job” window. Within this window, select the “Job Info” tab. Then use the “Job Status” drop-down to change the job’s status. When finished, click the “OK” button to save your changes.

18.6- Inactivating Estimates:

Once you have a customer with multiple outstanding estimates for a job that accepts one of the estimates, you should make any other estimates for that job inactive. When you make an estimate inactive, QuickBooks keeps a record of it but removes its value from the total estimated amount for the selected job.

To inactivate the estimate, you need to display the estimate you want to inactivate within the “Estimates” window. One way to do this is to use the “Find” feature within the “Estimates” window. Another way to find the estimate is to open the “Customer Center” and then select the desired job for which you have created the estimate. You should then see the estimates for the job displayed on the “Transactions” tab at the bottom of the right side of the “Customer Center.” You can select the desired estimate to inactivate within this list and then click the “Manage Transactions” button at the bottom of the “Transactions” tab. Then choose the “Edit Selected Transaction” command from the pop-up menu that appears to open the selected estimate in the “Estimates” window.

With the estimate that you want to inactivate displayed within the “Estimates” window, click the “Mark As Inactive” button within the “Main” tab of the Ribbon at the top of the window. Then click the “Save & Close” button to save your changes and close the window.

18.7- Making Purchases for a Job:

You can assign purchases that you make to a specific customer or job, so that you can bill for the costs later. To do this, simply use the drop-down within the “Customer:Job” column that appears in the line item area within forms such as the “Enter Bills” window to select the name of the customer:job that you will be billing for the purchase as you create a bill in the “Enter Bills” window.

Notice that this column appears in almost every type of transaction form within the line items area, from the “Create Purchase Orders” and “Enter Bills” windows to the “Write Checks” and “Enter Credit Card Charges” window. You use the “Customer:Job” column to assign line item amounts to a customer:job for future billing or to simply record job costing amounts.

For the line items entered into many forms, if you want to bill the customer for the costs later then ensure that there is a checkmark within the “Billable?” column within the same line item area for each line item that you want to bill back to the customer. If you wish to make the line item non-billable to simply record the job costing information but not be able to bill the cost, then simply click the checkbox for that line item to remove the check from the checkbox. You can then save and close the form.

18.8- Invoicing for Job Costs:

If you assign job costs that you incur to the correct customer:job, then the next time that you create an invoice for that customer:job, you can bill for the job costs. To do this, create an invoice by selecting “Customers| Create Invoices” from the Menu Bar. Then use the “Customer:Job” drop-down to select the customer:job to which you have assigned job costs.

When you do this, QuickBooks will then display the “Billable Time/Costs” window. To bill the costs, click the “Select the outstanding billable time and costs to add to this invoice?” option button and then click the “OK” button to continue and open the “Choose Billable Time and Costs” window. Note that even if you select not to bill the time and costs at this moment, you can later click the “Add Time/Costs” button that appears within the “Main” tab of the Ribbon at the top of the invoice to open the “Choose Billable Time and Costs” window.

In the “Choose Billable Time and Costs” window, click the “Expenses” and “Items” tabs, as needed, to display the outstanding expenses recorded and items purchased for the selected customer:job. Select the expenses to bill to the customer by clicking the leftmost column next to each line item to mark it with a checkmark. On the “Expenses” tab, you can even markup expenses if needed, by entering the amount or percentage to mark up the items into the “Markup Amount or %” field. Note that if you mark up the selected items by a percentage, then you must enter the percent sign into this field, otherwise QuickBooks will assume it is an amount. If you mark up expenses, select the income account to which you attribute the markup by selecting it from the “Markup Account” drop-down. If the selected expenses are taxable, check the “Selected expenses are taxable” checkbox. In both tabs, you can check the “Print selected time and costs as one item” checkbox to add all of the billable time and costs to the invoice as a single item, if needed. Once you have checked the billable items and expenses, click the “OK” button to add them to the invoice. You can then complete and save the invoice as you normally would, and close the “Create Invoices” window when you are finished.

18.9- Using Job Reports:

QuickBooks provides you with various reports that display general job information, job costing information, and estimate information. You can access these reports from the “Reports” menu within the Menu Bar, under the “Jobs, Time & Mileage” report category in QuickBooks Pro.

19.1- Tracking Time and Printing a Blank Timesheet:

QuickBooks provides time tracking for any job. Time tracking lets you keep track of the time that a person spends on each job. The person whose time you track can be an employee, an owner, a partner, or a subcontractor, as long as you have created the subcontractor as a vendor within the “Vendors” list.

You can then use the time data to perform tasks like invoicing a customer for job labor, providing hours worked on an employee’s paycheck, tracking the cost of an employee’s gross pay by job, or simply reporting the number of hours worked by a person, on a job, or with an item, like equipment.

You can enter data into QuickBooks using the “Weekly Timesheet” window or the “Time/Enter Single Activity” window. If you want to enter time for multiple jobs or multiple days, then the “Weekly Timesheet” window is the best choice. If you tend to enter a lot of detailed notes about your activities or prefer to enter time data as you complete an activity, then use the “Time/Enter Single Activity” window. Either way, the time information that you record in one displays in the other. They are simply two different ways of recording the same information. So- don’t enter the same data into both forms, as that would duplicate the time data that is recorded!

Also note that you can print blank weekly timesheets to manually record hours worked by employees or vendors on paper, which you can later transfer into QuickBooks. To do this, open the “Weekly Timesheet” window by selecting “Employees| Enter Time| Use Weekly Timesheet” from the Menu Bar. Within this window, you can then click the drop-down arrow that appears to the right of the “Print” button within the toolbar at the top of the window. Then choose the “Print Blank Timesheet…” command from the drop-down menu to open the “Print Timesheets” window. You can then click the “Print” button to print the blank timesheets.

19.2- Weekly Timesheets:

You can use the “Weekly Timesheet” window to enter the hours worked by a person within a week, what they did, for which customer:job, and, optionally, how much you paid them. You can open the “Weekly Timesheet” window by choosing “Employees| Enter Time| Use Weekly Timesheet” from the Menu Bar.

In the “Weekly Timesheet” window, use the “Name” drop-down to select the name of the individual for whom you want to view or track time. If you want to change the week you are viewing, select any date within the week you want to view from the calendar selector button at the top of the window. The days of the selected week for the selected individual will then be displayed in the window.

Then enter the “Customer:Job,” “Service Item,” “Payroll Item,” if you enable your employees to enter hours via the timesheet, “WC Code,” “Notes,” and the hours per day that the selected person spent doing the selected type of work into the columns of the same names that are displayed.

Note that you can click the “Copy Last Sheet” button in the lower left corner of this window to copy any hours that were entered for the selected person for the previous week forward into the currently selected week. This can save your some time when performing data entry for individuals who tend to have consistent timesheet entries.

After entering the information, click the “Save & Close” button to save the time recorded and close the window when you are finished.

19.3- Time/Enter Single Activity:

You can use the “Time/Enter Single Activity” timesheet to enter the hours worked by a person, what they did, for which customer:job, and, optionally,how much you paid them to do it for a single day. You can open the “Time/Enter Single Activity” window by selecting “Employees| Enter Time| Time / Enter Single Activity” from the Menu Bar.

Within the “Time/Enter Single Activity” window, select the date for the activity from the “Date” calendar selector field. Use the “Name” drop-down to select the person whose time you are entering. Then enter the “Customer:Job,” “Service Item,” “Payroll Item,” if you enable your employees to enter hours via the timesheet, “WC Code,” and “Notes” that you want to record into the fields of the same names. You can then enter the duration of time to record this activity into the “Duration” field. If you prefer to actively record the time you spend performing an activity, like “Legal Research” for example, then you can click the “Start” button when you begin the activity, “Pause” when you want to pause the time recording, and “Stop” when you have finished the activity in order to record the actual time as an entry in the “Duration” field. When you are finished entering time data, just click the “Save & Close” button to save the time and close the window.

19.4- Invoicing from Time Data:

After you have recorded the time that your employees or subcontractors spend performing services for a customer’s job, you can bill the customer for the work performed in an invoice. To do this, create an invoice by selecting “Customers| Create Invoices” from the Menu Bar. Then use the “Customer:Job” drop-down to select the customer:job to which you have assigned billable time.

When you do this, QuickBooks will then display the “Billable Time/Costs” window. To bill the time, click the “Select the outstanding billable time and costs to add to this invoice?” option button and then click the “OK” button to continue and open the “Choose Billable Time and Costs” window. Note that even if you select not to bill the time and costs at this moment, you can later click the “Add Time/Costs” button that appears within the “Main” tab of the Ribbon at the top of the invoice to open the “Choose Billable Time and Costs” window.

In the “Choose Billable Time and Costs” window, click the “Time” tab to display the billable hours that have been recorded for the selected customer:job. Select the hours to bill to the customer by clicking the leftmost column next to each line item to mark it with a checkmark.

If you would like to choose how QuickBooks will import the timesheet data into the invoice, then click the “Options…” button in the upper right corner of the tab to open the “Options for Transferring Billable Time” dialog box. Here you can select the desired option button to indicate how you want the time data to be imported. Then click the “OK” button to set your desired preference and return to the “Time” tab.

You can check the “Print selected time and costs as one item” checkbox to add all of the selected billable time and costs to the invoice as a single item, if needed. Once you have checked the billable hours, click the “OK” button to add them to the invoice. You can then complete and save the invoice as you normally would, and close the “Create Invoices” window when you are finished.

19.5- Using Time Reports:

QuickBooks provides you with reports that assist you in time tracking. They can be accessed by selecting “Reports| Jobs, Time & Mileage” from the Menu Bar in QuickBooks Pro.

19.6- Tracking Vehicle Mileage:

You can track mileage for your vehicles in QuickBooks so that you have a record of your vehicle’s mileage for tax purposes. You can also assign mileage to a specific customer job, so that you can bill the customer for the mileage. There are some limitations to the use of this data, however. You cannot use the data to reimburse employees or vendors for mileage. You also cannot track specific vehicle expenses like tolls paid, gas and other types of expenses. You can work around this by simply entering these charges as a bill, which can be charged to the customer. Also, vehicle mileage information from Quicken will not be imported into QuickBooks.

Generally, you can use either the Standard mileage rate or the actual expenses for calculating vehicle mileage expenses. You should consult with your tax advisor or the IRS to determine which method you should use, if any.

To enter vehicle mileage, select “Company| Enter Vehicle Mileage…” from the Menu Bar. This will launch the “Enter Vehicle Mileage” window. Use the “Vehicle” drop-down at the top of the window to select for which vehicle you will be entering mileage. You can type a new vehicle description into this field and then use the “Quick Add” feature to quickly add the vehicle to the “Vehicle List.” Note that you can click the “Vehicle List” button in the toolbar at the top of the “Enter Vehicle Mileage” window to open the list of vehicles if you would like to enter a detailed description about the vehicles used by your company.

Next, use the “Trip Start Date” and “Trip End Date” calendar drop-down fields to input the start and end dates of the trip you are recording. Then input the odometer start and end values into the boxes provided. That will fill-in the “Total Miles” by subtracting the two values. You may also simply type the total miles of the trip into the “Total Miles” box, if needed.

If you want to assign the miles to a specific customer or job, check the “Billable” checkbox in the upper right corner of the window and then use the “Customer:Job” drop-down to select which customer or job to assign the mileage. You can then use the “Item” drop-down to select your “Mileage” item from your “Item List.” If you are going to be reimbursed for mileage by the customer, you will need to create a “Mileage” item as an “Other Charge” or “Service” type item within the “Item List” so that you can use it to collect the mileage amounts in an invoice at a later point. After entering the mileage, feel free to add any additional notes into the “Notes” field and then click the “Save & Close” button when you are finished.

Note the “Mileage Rates” button at the top of the “Enter Vehicle Mileage” window. If you click this button, you will be presented with the “Mileage Rates” dialog box. Here you can input the most recent “Effective Date” of the federal mileage rate in the column available. You can also set the rate in the “Rate” column next to the specified date. You should check with the IRS for any effective rate changes and make sure that you keep this information current. Just click the “Close” button when you are finished entering the mileage rates.

19.7- Charging Customers for Mileage:

As long as you entered the vehicle mileage, marked it as billable, and assigned it to a customer job, you can then invoice the customer:job to collect the mileage. To do this, create an invoice by selecting “Customers| Create Invoices” from the Menu Bar. Then use the “Customer:Job” drop-down to select the customer:job to which you have assigned billable mileage.

When you do this, QuickBooks will then display the “Billable Time/Costs” window. To bill the mileage, click the “Select the outstanding billable time and costs to add to this invoice?” option button and then click the “OK” button to continue and open the “Choose Billable Time and Costs” window. Note that even if you select not to bill the mileage costs at this moment, you can later click the “Add Time/Costs” button that appears within the “Main” tab of the Ribbon at the top of the invoice to open the “Choose Billable Time and Costs” window.

In the “Choose Billable Time and Costs” window, click the “Mileage” tab to display the billable mileage recorded for the selected customer:job. Select the mileage to bill to the customer by clicking the leftmost column next to each line item to mark it with a checkmark.

If you would like to choose how QuickBooks will import the data into the invoice, click the “Options…” button in the upper right corner of the tab to open the “Options for Transferring Billable Mileage” dialog box. Here you can select the desired option button to indicate how you want the mileage data to be imported. Then click the “OK” button to set your desired preference and return to the “Mileage” tab.

You can check the “Print selected time and costs as one item” checkbox to add all of the selected billable time and costs to the invoice as a single item, if needed. Once you have checked the billable mileage, click the “OK” button to add them to the invoice. You can then complete and save the invoice as you normally would, and close the “Create Invoices” window when you are finished.

20.1- The Payroll Process:

Before you can use the payroll features of QuickBooks, you must set up payroll for your company in QuickBooks. To find out how you do this, select “Employees| Payroll| Turn on Payroll in QuickBooks” from the Menu Bar. In the window that then appears, you can evaluate the payroll plans and purchase a payroll plan through QuickBooks to begin the setup of your initial payroll data.

After you have purchased a payroll plan you can setup basic payroll information by selecting “Employees| Payroll Setup” from the Menu Bar. Use the “QuickBooks Payroll Setup” wizard to input the information that QuickBooks will need to know in order to begin processing payroll for your company file. QuickBooks uses the tax tables that come with your payroll subscription to calculate employee payroll. QuickBooks calculates each employee’s gross pay, taxes, deductions, and net pay. In QuickBooks, you can write the paycheck, record the transactions for the correct accounts, print payroll forms, and keep track of your tax liabilities.

As an employer, you must subtract taxes and other deductions before issuing an employee’s paycheck. Some typical paycheck deductions are federal and state withholding taxes (income taxes), social security taxes (FICA), Medicare taxes, and state unemployment insurance. You may also deduct for benefits such as 401 (k) plan, or contributions to your company’s medical/dental plan. When you withhold social security, Medicare, and federal withholding taxes from employee paychecks, you must submit regular deposits of the withheld money and file quarterly forms that list the amounts withheld from each employee paycheck. An overview of the payroll process is listed in the instruction manual.

20.2- Creating Payroll Items:

QuickBooks maintains a list of all the items that affect payroll amounts, including payroll expenses, in the “Payroll Item” list. There are payroll items for compensation, taxes, other additions and deductions, and employer-paid expenses. QuickBooks uses payroll items to track individual amounts on a paycheck and accumulated year-to-date wage and tax amounts for each employee.

When you set up payroll for your company in QuickBooks, many items are added to the list for you. However, you can also manually create others if you need them. You can view the current set of payroll items by selecting “Lists| Payroll Item List” from the Menu Bar. You can access the commands that you need to manage the entries in this list by clicking the “Payroll Item” button in the lower-left corner of this list.

To add a new payroll item, click the “Payroll Item” button in the lower-left corner of the “Payroll Item List” and then select the “New” command from the pop-up menu that appears. In the “Add new payroll item” window, answer the questions posed to you on each screen and then click the “Next” button until you have set up the new item. Click “Finish” when you are done to add the selected item into the “Payroll Item” list.

20.3- Setting Employee Defaults:

You can store information you want to set as the default value when you create a new employee record into your “employee defaults” in the “Employees” list. After setting default employee values, when you later add a new employee, QuickBooks will automatically fill-in the default information from the employee defaults so that you won’t have to re-enter it. All you will need to do is enter the employee-specific information.

You can access the employee defaults within the Employee Center by selecting “Employees| Employee Center” from the Menu Bar to open it. Then click the “Manage Employee Information” button in the toolbar at the top of the “Employee Center” window and select the “Change New Employee Default Settings” command.

In the “Employee Defaults” window that appears, enter any information that you would like to have appear by default whenever you create a new employee record. You can also set default tax information, or default sick and vacation time information, by clicking either the “Taxes…” or “Sick/Vacation…” buttons to set default values for those categories in the separate “Taxes Defaults” and “Sick and Vacation Defaults” dialog boxes. When you have finished setting all of your employee defaults, click the “OK” button to save them.

20.4- Setting Up Employee Payroll Information:

You can enter employee payroll information when you add new employees to the “Employees” list within the “New Employee” window. You can also edit the employee’s payroll data by using the “Edit Employee” window, if the payroll info changes. In either the “New Employee” or “Edit Employee” windows, you can enter or edit payroll information by selecting the “Payroll Info” tab at the left side of either window.

On the “Payroll Info” tab, select the payroll schedule for the employee from the “Payroll Schedule” drop-down menu. Then enter the type of pay the employee receives by selecting a compensation “Payroll Item” from the “Item Name” column within the “Earnings” section. To the right of that selected item, you can then enter the amount of compensation into the “Hourly/Annual Rate” column. Then enter any additions, deductions or company contributions in the “Additions, Deductions & Company Contributions” section by selecting the name of the desired “Payroll Item” from the “Item Name” column. Then enter the “Amount” for each item entered, as well as the annual “Limit” for each, if needed. If the employee uses time data entered into the “Weekly Timesheet” or the “Time/Enter Single Activity” windows in order to record their hours worked, then select the “Use time data to create paychecks” checkbox at the bottom of the tab. If the employee is covered by a qualifying pension plan, check the “Employee is covered by a qualifying pension plan” checkbox.

You can then set the employee’s payroll tax data by clicking the “Taxes…” button to open the “Taxes” dialog box. Here you enter the employee’s payroll tax withholding information into the “Federal,” “State,” and “Other” tabs. Note that the “Other” tab is used for any special state or local payroll tax information required. Once you have entered their payroll tax information, click the “OK” button within the “Taxes” dialog box to return to the “New Employee” or “Edit Employee” window.

You can enter the employee’s sick and vacation time by clicking the “Sick/Vacation…” button within the “Payroll Info” tab to open the “Sick and Vacation” dialog box. In the “Sick” and “Vacation” sections, you can use the “Accrual Period” drop-down to select how the employee accrues sick and vacation time. You can then enter the number of hours to accrue, the maximum number of hours to accrue, as well as if and when the number of hours are to be reset by entering the desired values into the fields available. When you have finished entering the sick and vacation information for the employee, click the “OK” button within the “Sick and Vacation” dialog box to return to the “New Employee” or “Edit Employee” window.

When you are finished setting up the employee’s payroll data, click the “OK” button within either the “New Employee” or “Edit Employee” windows to close the window and save your changes.

20.5- Creating Payroll Schedules:

In QuickBooks, you will most often create employee paychecks by using the scheduled payroll feature. However, if needed, you can also print unscheduled employee paychecks as well as termination paychecks.

Before you start a scheduled payroll, however, you must first create at least one payroll schedule. You can create and modify payroll schedules by selecting “Employees| Add or Edit Payroll Schedules” from the Menu Bar to open the “Payroll Schedule List.” To create a new payroll schedule, click the “Payroll Schedule” button and then choose the “New” command.

In the “New Payroll Schedule” window that appears, enter a name for the payroll schedule into the “What do you want to name this payroll schedule?” field. Use the next field’s drop-down to select the frequency with which this payroll will recur. After that, use the “What is the pay period end date?” calendar selector to select the final date in the pay period. Then use the “What date should appear on paychecks for this pay period?” calendar selector to select the paycheck date for the payroll. If you chose to create a semimonthly or monthly payroll, you may also need to answer a few more date-related questions in this screen. Once you have entered the payroll schedule information, click the “OK” button. You can then follow the onscreen prompts to assign employees with the same payroll frequency to the selected payroll schedule.

20.6- Creating Scheduled Paychecks:

You can create and print employee paychecks for a scheduled payroll by either selecting “Employees| Pay Employees| Scheduled Payroll” from the Menu Bar or by clicking the “Pay Employees” button in the Home page to open the “Employee Center: Payroll Center” window.

In “Pay Employees” section of the window, select the name of the payroll schedule to pay from the listing shown. Then click the “Start Scheduled Payroll…” button to open the “Enter Payroll Information” window where you will see the employees assigned to the selected payroll schedule. All employees that you want to pay on this schedule should appear here with a checkmark next to their names. You then need to check to ensure that the data shown in the “Payroll Information” section is correct. Also review the hours worked and amounts shown for each employee. If you need to make changes to a paycheck, click the hyperlinked name of the employee within this list whose paycheck you wish to inspect to open their paycheck within a “Preview Paycheck” window where you can edit the informationand then click the “Save & Close” button to finish. After reviewing the payroll information for accuracy, click the “Continue” button to continue paying the employees.

Next, review the summary information in the “Review and Create Paychecks” window. In the “Paycheck Options” section, you can select the option button for “Print paychecks from QuickBooks” to create the paychecks and print them. If you are recording paychecks that have already been created, you can select the “Assign check numbers to handwritten checks” option button and then enter the first check number into the “First Check Number” field. You can then click the “Create Paychecks” button to create the selected paychecks for the scheduled payroll. You can then use the “Confirmation and Next Steps” window that appears to finish the payroll. Within this window you can click the “Print Paychecks” button to print the paychecks that you just created if you chose to print paychecks in QuickBooks. You can click the “Print Pay Stubs” button to print paystubs for the checks, if needed. When you are done, click the “Close” button.

20.7- Creating Unscheduled Paychecks:

You can also create unscheduled paychecks for additional checks, such as bonus checks. You can select “Employees| Pay Employees| Unscheduled Payroll” from the Menu Bar to open the “Enter Payroll Information” window. Here you manually set the “Pay Period Ends” and “Check Date.” Then select the account from which the funds will be withdrawn from the “Bank Account:” drop-down. You then place a checkmark next to the names of the employees to pay. When you are ready, click the “Continue” button to continue creating the paychecks. In the next screen, select whether the check should be printed, or assigned a check number in the “Paycheck Options” section. You can then click on the hyperlinked name of the employee shown within the list to open the “Preview Paycheck” window where you can review and edit the payroll information, if needed. After entering or editing the paycheck details, click the “Save & Close” button. Once you are ready to create the paychecks, click the “Create Paychecks” button. If you are printing the paychecks within QuickBooks, you can then click either the “Print Paychecks” or “Print Pay Stubs” button, as needed, and then click the “Close” button to finish.

20.8- Creating Termination Paychecks:

You can also create termination paychecks when an employee leaves. You can select “Employees| Pay Employees| Termination Check” from the Menu Bar to open the “Enter Payroll Information” window. Here you manually set the “Pay Period Ends” and “Check Date.” Then select the account from which the funds will be withdrawn from the “Bank Account:” drop-down. You then place a checkmark next to the names of the employees who need a termination check. To the right of their names, under the “Release Date” column, enter the employee’s release date. This information will be updated within their employee record when you create the paychecks. When you are ready, click the “Continue” button to continue creating the paychecks. In the next screen, select whether the check should be printed, or assigned a check number in the “Paycheck Options” section. You can then click on the hyperlinked name of the employee shown within the list to open the “Preview Paycheck” window where you can review and edit the payroll information, if needed. After entering or editing the paycheck details, click the “Save & Close” button. Once you are ready to create the paychecks, click the “Create Paychecks” button. If you are printing the paychecks within QuickBooks, you can then click either the “Print Paychecks” or “Print Pay Stubs” button, as needed, and then click the “Close” button to finish.

20.9- Voiding Paychecks:

You can void paychecks, if needed. To void a paycheck, you will need to display the paycheck that you want to void within the “Write Checks” window or by using the appropriate checking account register. With the desired paycheck to void displayed, select “Edit| Void Paycheck” from the Menu Bar.

20.10- Tracking Your Tax Liabilities:

As the employer, you need to track both the payroll expenses and payroll liabilities. The payroll expenses you need to track are the employee’s gross pay and the employer’s payroll taxes. QuickBooks uses an account called “Payroll Expenses” to track the actual costs to your company. Whatever funds you deduct from employee paychecks aren’t shown here. Those funds are placed into an account called “Payroll Liabilities.” That makes it easy to see what payroll taxes you owe, so that you can have the necessary cash available for payment.

As long as you have a valid subscription to one of the QuickBooks payroll options, QuickBooks uses the current payroll tax tables to keep track of your tax liabilities as they accrue, so that you know how much you owe as of a given date.

When you are ready to pay your payroll liabilities, you may want to see the amount you will be paying. You can run a “Payroll Liabilities” report to see how much you owe in payroll liabilities. You can access this report by selecting “Reports| Employees & Payroll| Payroll Liability Balances” from the Menu Bar.

20.11- Paying Payroll Tax Liabilities:

Once you are ready to write a check for the payroll liabilities, you must write a “Liability Check.” Don’t just write a check to cover payroll liabilities! Unless you use the method shown, QuickBooks will not properly adjust the Payroll Liabilities account! When you write a check (or enter a General Journal entry) against the “Payroll Liabilities” account without specifying which liabilities are adjusted, it will take the total amount of the adjustment and disburse it amongst the individual liabilities. This will then cause the balance of each individual liability to be incorrect! While you can fix it by making liability adjustments to the individual liabilities, it is tedious to fix and best avoided.

When you subscribe to one of the QuickBooks payroll tax services, you set up scheduled liability payments as part of the Payroll Setup process. You can view this information within the Payroll Center in QuickBooks. To pay your scheduled payroll liabilities, just select “Employees| Payroll Taxes and Liabilities| Pay Scheduled Liabilities” from the Menu Bar. You can then check the scheduled payments to make from the listing shown in the “Pay Taxes & Other Liabilities” section of the “Employee Center: Payroll Center” window. You can then click the “View/Pay” button to open the “Liability Check” window where you can review the liability check or checks to be created. You can then click the “Save & Close” button to finish and save the checks for printing.

If needed, you can select “Employees| Payroll Taxes and Liabilities| Create Custom Liability Payments” to create a custom liability payment for your payroll liabilities. In the window that appears, you select the date range of the liabilities to pay. Then click the “OK” button to view the “Pay Liabilities” window.

In the “Pay Liabilities” window, place a checkmark next to the individual payroll liabilities that you want to pay with the custom liability payment. If you want to create checks for printing, ensure that the “To be printed” checkbox is selected. Next, make sure that the option button for “Review liability check to enter expenses/penalties” is selected and then click the “Create” button to create the “Liability Checks.” Note that this type of check has a special tab at the bottom that indicates exactly which liabilities are being paid with that check. If you have additional penalties to add, you can to that on the “Expenses” tab. If you do make modifications to the check, save and close the check when finished to save changes that you have made.

20.12- Adjusting Payroll Liabilities:

If you are using Assisted Payroll, you can’t adjust the liability balance for liabilities paid by the payroll service, meaning the federal and state tax liabilities. However, you can adjust the liability balance for local or other taxes not supported by the payroll service.

If you are not using Assisted Payroll or higher, or are in the process of signing up for it, you can enter an adjustment for any payroll item. Liability balance adjustments change the amounts that QuickBooks shows in the payroll reports.

To adjust the liability balance, select “Employees| Payroll Taxes and Liabilities| Adjust Payroll Liabilities” from the Menu Barto open the “Liability Adjustment” window.

Next, in the “Date” field, enter the date for which you are making the adjustment. In the “Effective Date” field, enter the date that you want this adjustment to affect your liability balances. QuickBooks uses this date to calculate amounts on your Forms 940 and 941 and on the payroll liability balances report.

Then choose whether this liability adjustment is for the company or a specific employee. In the “Item Name” field, choose the payroll liability to adjust and in the “Amount” field, enter the amount of the adjustment. You can either enter a positive number or a negative number, as is appropriate. Click “OK” when you are done to enter in the adjustment, which will appear as of the “Effective Date” that you entered.

20.13- Entering Liability Refund Checks:

If you overpay your payroll liabilities and taxes, you may receive a refund check which you would then need to record in QuickBooks to correct your liability balance. To do this, select “Employees| Payroll Taxes and Liabilities| Deposit Refund of Liabilities” from the Menu Bar.

QuickBooks will open the “Refund Deposit for Taxes and Liabilities” window. In this window, from the “Vendor” drop-down list, choose the vendor from whom you received the refund check. Then in the “Refund Date” field, enter the date that you want this refund check to enter your bank account. In the “For Period Beginning” field, enter the beginning date of the pay period that this refund affects.

Next, indicate whether you want QuickBooks to group this payment with other undeposited funds or deposit it directly into a bank account. In the “Item Name” column, choose the payroll liability to adjust. In the “Amount” field, enter the amount of the refund as a positive amount. If the refund is for more than one payroll item, enter the additional payroll items and their amounts. Just click “OK” when you are finished. If you overpay your payroll liabilities, your liability balance is then negative. After you record the refund check, QuickBooks increases the liability for the tax you specified which should correct the liability balance.

20.14- Process Payroll Forms:

If you are subscribed to a QuickBooks payroll service, you can print out your annual and quarterly federal payroll forms by selecting “Employees| Payroll Tax Forms & W-2’s| Process Payroll Forms” from the Menu Bar.

On the “File Forms” tab, select which document you would like to create from the list shown and then click the “File Form” button to open the “Select Payroll Form” window. In that window, select your form and filing period and then click the “OK” button.

Depending upon which form you selected, a specific wizard that will then launch to pose questions and show you information QuickBooks has collected, just like the Easy Step Interview does. Use the wizards to enter or verify information that QuickBooks has collected and answer all of the questions on each screen until you are finished creating the forms.

20.15- Tracking Workers Compensation:

If you are using QuickBooks and also subscribe to the QuickBooks Enhanced Payroll service, then you can take advantage of the workers compensation tracking feature to manage tracking workers compensation hours and make the required payments. You must, however, set up the workers compensation feature before you run a payroll. If you do not, the information may be inaccurate or incomplete. Also, this feature must be enabled at the beginning of the insurance policy coverage year in order to completely track the information in QuickBooks. There is no way to enter “year-to-date” data if starting in the middle of the insurance coverage year. In that case, you must combine the data in QuickBooks with any information you have manually tracked in order to get the correct totals for the year.

When you first sign up for the QuickBooks enhanced payroll, the workers compensation feature is not enabled. You can turn it on by selecting “Edit| Preferences…” from the Menu Bar. This will launch the “Preferences” dialog box, where you can select the “Payroll & Employees” icon from the scroll box at the left side. Then click the “Company Preferences” tab. Then click the “Workers Compensation” button. You can place a checkmark into the “Track Workers Comp” checkbox to enable the feature. You can also check the “Display message to assign codes” checkbox to enable a classification prompt when entering employee hours into the “Pay Employees” or time tracking windows. You can also check the “Exclude overtime premium from Workers Comp calculation” checkbox if your workers compensation insurance company directs you to treat all overtime hours as if they were paid at the regular wage rate. Once you have set the desired option, click “OK” to return to the “Preferences” dialog box, where you must click “OK” once again to set the preferences.

Now you must continue to set up workers compensation tracking by using the Workers Compensation Setup wizard. To open this wizard, select “Employees| Workers Compensation| Manually Track Existing Workers’ Comp Policy…” from the Menu Bar if using QuickBooks 2014 or select “Employees| Workers Compensation| Set Up Workers Comp” from the Menu Bar if using QuickBooks 2013. The first screen will display information which you will need in order to complete the wizard, and you can gather that information from your insurance company, if necessary. Then enter the information into the screens and click “Next” to move through the wizard.

After you have set up the employees and what codes they are assigned by default, you can then issue paychecks as normal and the workers compensation will be accrued as you issue paychecks. Note that if you assign a default workers compensation code to an employee, that code will be used by default when issuing paychecks or entering hours in a timesheet. You can also change the code used for any earning line item in these windows, if needed. You can view the workers compensation information in the “Preview Paycheck” window as you review the employee paychecks.

When it comes time to actually pay the workers compensation premiums, you can first run a workers compensation report by selecting “Reports| Employees & Payroll| Workers Comp Detail” from the Menu Bar. You can verify the amount to pay and where it came from using this report. Since workers compensation is tracked as a payroll liability, you can pay the premium using the “Pay Liabilities” window to create the liability check.

You can also create and modify the codes used for workers compensation classification in the “Workers Comp List.” You can open this list by selecting “Lists| Workers Comp List” from the Menu Bar when you have workers compensation tracking enabled. You can set up new codes and enter and edit experience modification factors used for calculations, if needed.

21.1- Creating Credit Card Accounts:

You should set up a QuickBooks credit card account in the Chart of Accounts for each credit card you use in your business. Like any QuickBooks account, a credit card account has its own register. The register lists all the charges and credits you’ve recorded, as well a payments you’ve made.

To create a credit card account, open the “Chart of Accounts” window by selecting “Lists| Chart of Accounts” from the Menu Bar. Then click the “Account” button in the lower left corner of the “Chart of Accounts” window and select the “New” command from the pop-up menu.

In the “Add New Account: Choose Account Type” window, select the “Credit Card” option button and then click the “Continue” button to open the “Add New Account” window. Enter the name for the account into the “Account Name” field. You can assign an account number by entering one into the “Number” field if account numbering is enabled within your QuickBooks company file. You can then enter the account’s “Description” and “Credit Card Acct. No.” into the fields within the “Optional” section, if desired. Once you have added any information you want to record, click the “Save & Close” button to create the account.

21.2- Entering Charges on Credit Cards:

QuickBooks allows you to choose when you enter your credit card charges. You can enter credit card charges incrementally as you make charges to the credit card, or you can enter all credit card charges in lump amounts by account once you receive the credit card bill. Your choice depends on whether you enjoy entering information incrementally or all at once. Also, one advantage to entering the charges incrementally as you charge items is that you can keep close track of how much you owe. Another advantage is that if the charge is made for a particular customer:job, you can keep track of how much you are spending on that job. Another advantage to recording charges as they are incurred is that you can then reconcile the charges you entered against the credit card bill when it arrives, allowing you to spot errors and non-authorized charges more easily.

To enter credit card charges incrementally as they are incurred, select “Banking| Enter Credit Card Charges” from the Menu Bar to display the “Enter Credit Card Charges” window. Within this window, select the credit card account that was used for the charge from the “Credit Card” drop-down menu at the top of the window. To the right of that drop-down, ensure that the “Purchase/Charge” option button is selected. Note that you can also record refunds and credits to a credit card account by selecting the “Refund/Credit” option button, if needed.

Next, use the “Purchased From” drop-down to select the name of the vendor with whom you made the purchase. Enter the date of the charge into the “Date” field. You can enter the credit card transaction number into the “Ref. No.” field. Then enter the amount of the charge into the “Amount” field. If desired, you can enter a note about the charge into the “Memo” field.

At the bottom of this window, just as in the “Write Checks” window, you will then attribute the amount charges to the desired expense account or accounts by selecting an account from the “Account” column on the “Expenses” tab. The total amount will then appear in the adjacent “Amount” column. If the charge is for a job, you can select the name of the job from the “Customer:Job” column, and set its billing status within the “Billable?” column. If you need to split the charge amount between multiple expense accounts, change the “Amount” value shown, and then repeat the process in the next row until you have accounted for the entire charge amount.

Also note that if you use this window for purchasing “Inventory Part” items, or buying “Services” from subcontractors, then you will not enter the charge amount within the “Amount” field at the top of the form. Instead, you will click the “Items” tab at the bottom of the window and then enter the items purchased with the credit card charge, including their quantities and amounts. The sum value of the items purchased will then constitute the total amount of the charge entered into the “Amount” field above.

Once you have entered the credit card charge information, you can click the “Save & Close” button to save the transaction and close the window. After you have input the charge, QuickBooks adds the charge amount to the credit card account’s register, increasing the total account liability by the charge amount. It will add the same amount to the appropriate expense account once the bill for the credit card is entered or paid.

21.3- Reconciling and Paying Credit Cards:

If you enter credit card charges incrementally, you can reconcile the entries that have been made against the bill when it arrives. This can be helpful in preventing unauthorized charges on the card. Reconciling a credit card account is almost identical to reconciling a bank account.

To reconcile a credit card account, open the chart of accounts and click the credit card account that you want to reconcile to select it. From there, you will click the “Activities” button in the lower left corner of the chart of accounts and select “Reconcile Credit Card” from the pop-up menu that appears.

That will display the “Begin Reconciliation” dialog box. Here you will input the statement date from your credit card statement, the ending balance from your statement, any finance charges you accrued, the date, and the account that you use to track those charges. Then click “Continue” at the bottom of the “Begin Reconciliation” dialog box to display the “Reconcile Credit Card” window for the selected account.

In this window, you will see all of the transactions that haven’t cleared. You’ll use this window to check off the transactions listed on your credit card statement. Click on each transaction to place a check mark in front of each transaction that matches your credit card statement to mark it as cleared. When you are done the “Difference” (in the lower right corner), should be zero. Click “Reconcile Now” to reconcile the account, and to select the options for the report that you’d like to have generated.

Once you’ve reconciled your credit card account, QuickBooks gives you a chance to pay all or part of the balance due by taking you immediately to either the “Write Checks” or “Enter Bills” window depending on which option you select in the dialog box that appears. The bill or check will already be set to the credit card account. The amount due for your credit card will also be entered already. You just have to select the name of the company to whom you pay the balance and then print the check or save the bill.

22.1- Assets and Liabilities:

QuickBooks has two account types for tracking the value of your short-term and long-term assets. The Other Current Asset account tracks assets that are likely to be converted into cash, or used up, within one year. Examples of “Other Current Asset” accounts include prepaid expenses and short-term notes receivable. A Fixed Asset account tracks assets your business owns that are NOT likely to be converted into cash or used up within a year. “Fixed Asset” accounts track the value of long-lived assets with a larger value that assist you in performing your business. The value of these items are expensed over the “useful life” of the asset, which will vary. Example include furniture, some office equipment, computers, and vehicles.

QuickBooks also has two account types that track long-term and short-term liabilities. The Other Current Liability account tracks liabilities that your company expects to pay within a year. An example would be a short-term loan. A Long-Term Liability account tracks debt that your business is not likely to pay off within a year. For example, when making a major purchase for your company, such as when purchasing a vehicle, you will often take out a long-term loan. The long-term loan taken out in order to purchase equipment is an example of a long-term liability.

As when creating any account in QuickBooks, you create all of your asset and liability accounts within the “Chart of Accounts” window, which you can access by selecting “Lists| Chart of Accounts” from the Menu Bar. Then click the “Account” button in the lower left corner of the window and choose the “New” command from the pop-up menu to open the “New Account: Choose Account Type” window.

In this window, you can then select the option button for the type of account to create. Note that for many asset and liability accounts, you may need to select the “Other Account Types” option button and then select the type of account to create from the adjacent drop-down menu. Once you have made your choice, you can then click the “Continue” button to open the “Add Account” window.

Here you enter the “Name” and “Number” for the account into the fields of the same name shown. Note that account numbering must be enabled within your QuickBooks company file in order to view the “Number” field. Then enter any additional account information within the “Optional” section shown. When you are finished, click either the “Save & Close” or “Save & New” buttons to save the account. If you choose the “Save & New” choice, be sure to change the account type, if needed, by using the “Type” drop-down at the top of the window to select your account type before creating the next new account.

22.2- Creating and Using Other Current Asset Accounts:

The “Other Current Asset” account type tracks assets that your company expects to use up or convert into cash in the next year. Other current assets might include short-term notes receivable, or prepaid expenses. Your inventory account is an example of an other current asset.

Let’s take a “Prepaid Rent” other current asset account as an example. Assume that you have signed an agreement to lease a new office space for $1,000 per month. Also assume that you needed to make a prepayment of 6 months worth of rent before you could move into the new office space. If you are using the accrual accounting method, then you must attribute expense to the period it is incurred, not when you actually pay it. So, you would NOT want to simply write a check for the next 6 months worth of rent and then attribute the entire amount to the “Rent Expense” account for the month in which you wrote the check, as that will not accurately reflect when the rent expense is actually incurred. Instead, you can use the other current asset account of “Prepaid Rent” to help you show the rent expense as it is actually incurred.

To do this, you simply open the “Write Checks” window when the first payment is due by selecting “Banking| Write Checks” from the Menu Bar. Then enter the amount of the payment (6,000) and select the landlord for the vendor. On the “Expenses” tab, you can then select the “Prepaid Rent” other current asset account. In the amount column, enter 5,000 for the account. This shows that $5,000 of the $6,000 payment is being traded to another asset account for the prepayment of the rent. Then click into the next row on the “Expenses” tab and select the “Rent Expense” account. QuickBooks should then attribute the remaining 1,000 to the account for the first month of rent as it is being incurred.For the next five months after this, you will not write a check for the rent, but rather create a “General Journal Entry” that decreases the amount in the “Prepaid Rent” other current asset account by $1,000 and increases the amount of the “Rent Expense” account by $1,000 to show the other current asset being “used up” and to show the rent expense being incurred in the correct accounting period.

22.3- Removing Value from Other Current Asset Accounts:

In this lesson, you will learn how to enter a “General Journal Entry” to decrease the value of an other current asset account. Let’s use the example from the last lesson of the “Prepaid Rent” other current asset account into which five months of prepaid rent was placed. As you later incur your monthly rent expense of $1,000 per month over the next five months, you will use up part of the prepaid rent expense and enter each change to the value of that account either through the “General Journal Entry” window or by making an entry directly into the register for that account. So for each of the following five months, decrease the amount of the rent as it is actually incurred from the “Prepaid Rent” other current asset account and assign the value of the rent to the “Rent” expense account.

To enter a “General Journal Entry” select “Company| Make General Journal Entries…” from the Menu Bar to open the “General Journal Entry” window. In this window, enter the date of the entry into the “Date” field. Then enter a reference number for the entry into the “Entry No.” field. Then click into the first row under the “Account” column and select the “Rent Expense” account. Then enter 1,000 into the adjacent “Debit” column within that row to show the increase to the selected rent expense account. Then click into the “Account” column in the next blank row and select the “Prepaid Rent” other current asset account. QuickBooks should automatically attribute 1,000 to the “Credit” column, decreasing its value. If not, click into the “Credit” column and then enter 1,000. When you are finished making the entry, click the “Save & Close” button.

Alternately, you can create a “General Journal Entry” within the associated account register by simply recording the increase or decrease to the selected account’s value. The advantage to this method is that you will not need to worry about the “Credit” and “Debit” rules for the account types, as long as you know which account should be increasing or decreasing. So using the example above, another way to create this entry is to open the “Chart of Accounts” window by selecting “Lists| Chart of Accounts” from the Menu Bar. Within the “Chart of Accounts” window, you can then double-click the “Prepaid Rent” account shown in order to open its account register. Within the account register window, click into the next blank transaction row. Enter the date of the transaction into the “Date” field. Then enter a reference code into the “Ref” field. Then click into the “Decrease” column and enter “1,000.” You can then select the “Rent Expense” account from the “Account” drop-down within the transaction row. You can then click the “Record” button at the bottom of the transaction window to record the transaction. Note that QuickBooks enters the term “GENJRN” into the “Type” field so that you can see that this is simply another way to record a general journal entry.

22.4- Creating Fixed Asset Accounts:

A “Fixed Asset” account tracks assets that your business owns that are NOT likely to be converted into cash within a year. A fixed asset is usually something of significant value that is necessary for the operation of your business, like vehicles, computers, furniture and some office equipment. Many times the purchase of a fixed asset will also incur a long-term liability, such the example of acquiring an auto loan to purchase a new vehicle.

Fixed assets are not for immediate sale, but they do have a value. Since they are useful for a long time, you don’t completely charge their entire cost to the year in which you purchased them. Instead, you spread their cost over several years (called the “useful life” of the asset). However, because fixed assets wear out or become obsolete (like computers), their value declines constantly from the day you purchase them. When the value of fixed assets decline over a period, the amount of value that is lost is called depreciation. The total amount of this decline over a period of time is called accumulated depreciation.

We will now examine one method for creating fixed asset accounts, noting their original value, and also recording their accumulated depreciation. There are many ways to track fixed asset value and depreciation and this is just one suggested method. This method works well to show the original cost, the accumulated depreciation, and the current book value for a single fixed asset on separate lines within the Balance Sheet for clarity of reporting. However if you are currently tracking your asset depreciation in other ways, you can rest assured that you can continue using your own method.

When you refer to the value of a fixed asset at any point in time you are referring to its “book value.” This is determined by subtracting its accumulated depreciation, which is the total amount of depreciation that has occurred since the asset’s original purchase date, from its original cost.

Usually, you will want your company’s Balance Sheet to show the original cost of an asset on one line with the accumulated depreciation subtracted from the original cost on a second line, and the current, or “book,” value on a third line. The method you will learn in this lesson allows you to see each asset’s cost and its accumulated depreciation separately on your balance sheet.

In order to do this, you need to create a primary fixed asset account for each asset and then create two subaccounts under each primary fixed asset account: one for the “original cost” and one for the “accumulated depreciation.”

First, create a new primary “Fixed Asset” account for the fixed asset. Leave the “Opening Balance” field blank if you are purchasing the asset after your company file’s “start date,” as that value will be determined by the two subaccounts (“original cost” and “accumulated depreciation”) that you will need to create to track its book value.

Next, create the two “Fixed Asset” subaccounts- one for the asset’s original cost and one for the asset’s accumulated depreciation. These two subaccounts should also be of the “Fixed Asset” account type. When creating these accounts, ensure you click the checkbox for “Subaccount of” within the “New Account” window and select the correct primary fixed asset account for which these subaccounts will track the original cost and depreciation.

When creating the “Original Cost” subaccount for assets purchased BEFORE your company file’s “start date,” enter the “Opening Balance” as the original cost of the asset. For assets purchased AFTER the “start date,” leave the “Opening Balance” field blank as the value of the asset will come from the value of the transactions you still need to enter, such as a loan to repay or checks to write to purchase the fixed asset. When creating the “Accumulated Depreciation” subaccount, the amount you enter as the “Opening Balance” also depends on whether you acquired the asset after or before your company file’s “start date.” If you acquired the asset AFTER the “start date,” leave the “opening balance” field blank. If you acquired the asset BEFORE your “start date,” enter the accumulated depreciation of the asset as of the start date as a negative number.

22.5- Creating Liability Accounts:

You can create liability accounts to track amounts you need to pay to someone else. If the liability is to be paid off within the year, it is an “Other Current Liability.” If you have a line of credit, that would be an example of an other current liability.

You can also create “Long Term Liability” accounts for amounts you expect to pay off in a period greater than a year. For example, when you purchase a fixed asset like a vehicle, you typically incur a long term liability like an auto loan.

When you make payments on the liabilities, note that the amount due will often be attributed partially to the liability account, reducing the amount owed, and partially to interest expense. If you make the loan payments within the “Write Checks” window by hand, be sure to record the correct amounts on the “Expenses” tab using the associated amortization table for the loan. That way you will know how much of each payment made will reduce the amount owed, and how much is interest expense. You can also make use of the “Loan Manager” within QuickBooks to assist you in creating loan payments if you know the terms of the loan.

22.6- Setting the Original Cost of the Fixed Asset:

When purchasing a fixed asset, attribute any amounts spent or borrowed to buy the fixed asset directly to the “Original Cost” subaccount. For example, if you took out a loan to buy a fixed asset, assign the value of the loan to the “Original Cost” subaccount for the fixed asset when entering the original amount of the loan into the associated long-term liability account register.

22.7- Tracking Depreciation:

Your accountant should provide you with the amounts to enter for depreciation on your fixed assets. They should at least double-check your depreciation entries. When you have those amounts, you can enter them into the “Decrease” column of the “Accumulated Depreciation” subaccount’s register you created for the fixed asset. The amount will then be attributed to an expense account like “Depreciation Expense.” The “Accumulated Depreciation” subaccount will always have a negative balance, as it tracks the loss of value to the fixed asset which is its parent account.

22.8- The Loan Manager:

Assuming you have all of the relevant information about your loan, you can enter the loan into the Loan Manager to set up a payment schedule. Using the Loan Manager allows you to manage all of the loans that you have to pay from a single screen.

To add a loan to the Loan Manager, select “Banking| Loan Manager” from the Menu Bar. This will launch the “Loan Manager” window where you can click the “Add a Loan…” button. In the “Add a Loan” window, select the name of the liability account that you want to add from the “Account Name” drop-down. The balance of the account will be shown as the “Current Balance.” Use the “Lender” drop-down to select the name of the bank who lent you the money. Then enter the “Origination Date” of the loan. This is the date used to calculate the loan maturity date and the number of remaining payments. Enter the original amount of the loan into the “Original Amount” field. In the “Term” section enter the terms of the loan by typing a number and selecting the time increments from the drop-down. Then click “Next” to continue.

On the next screen, enter the due date of the next payment in the box provided. In the “Payment Amount” field, enter the total amount of the loan payment. Then enter the “Next Payment Number,” if desired. In the “Payment Period” drop-down, select the type of payments that you make. If the loan has an escrow payment, select the “Yes” option button for that question and then enter the escrow amount and the asset account used to track escrow payments. You can also leave a check in the “Alert me 10 days before a payment is due” checkbox to have that feature applied. Then click “Next” to continue.

On the next screen, enter the interest rate here as a percentage into the “Interest Rate” text box. In the “Compounding Period” drop-down select the type of compounding used for the loan: “Monthly,” or “Exact Days.” If you select “Exact Days,” then select whether the lender is using a 360 or 365 day year for their calculations from the “Compute Period” drop-down. Select the bank account from which you make the payments in the “Payment Account” drop-down. Then use the “Interest Expense Account” to select the expense account that you use to track loan interest payments. Use the “Fees/Charges Expense Account” to select the expense account used to record the amounts assessed for late payments and other penalties. When you are finished, click the “Finish” button. The loan will be added into the “Loan List” in the “Loan Manager” window. You can click it to select it and then click the three tabs below it to view the “Summary” of the loan, the “Payment Schedule,” or the “Contact Info” for the lender.

To set up a payment for a loan listed in the “Loan List,” select the loan in the list and then click the “Set Up Payment…” button. This will launch the “Set Up Payment” dialog box where you first use the “This payment is:” drop-down to select either “A regular payment,” or “An extra payment.” Double-check the payment information to ensure that the amounts listed are correct. Then use the drop-down in the “Payment Method” section to select the method of payment you wish to use. Click “OK” to view the loan payment as either a check to pay now or bill that you can pay later, depending on your choice made from the drop-down in the “Payment Method” section.

If you need to edit a loan, select the loan name in the “Loan List” section of the “Loan Manager” window, and then click the “Edit Loan Details…” button. This will launch you through the same wizard that you used to create the loan, allowing you to change any information as needed. To delete a loan from the “Loan Manager,” select the name of the loan in the “Loan List” and then click the “Remove Loan…” button. Click “Yes” in the confirmation dialog box to remove the selected loan.

In the “Loan Manager” window you can also click the “What If Scenarios…” button to launch the “What If Scenarios” dialog box. You can use the drop-down at the top of this dialog box to answer hypothetical questions about your loans, such as “What if I change my interest rate?” You can select a question you wish to investigate further and enter in any requested information in the area below. This can be a very useful tool to compare loans and make sure that you aren’t paying too much for the money you have borrowed.

22.9- The Fixed Asset Item List:

You can use the Fixed Asset Item List to track your individual fixed assets. You can use this list to enter information about the purchase price of an asset, its purchase date, and whether the asset was new or used at purchase. You can also enter the asset’s sale price if you decide to sell the asset at a later point in time.

To open this list, select “Lists| Fixed Asset Item List” from the Menu Bar. To add a fixed asset item, click the “Item” button in the lower left corner of the list and select “New” from the pop-up menu. That will launch the “New Item” window. Enter the asset information that you wish in this screen and click “OK” when you are finished. Note that there are custom fields available for your fixed asset list. You can create up to five custom fields, just as you would create custom fields within the “Item List.” However, you must be in single-user mode to do this.

23.1- Equity Accounts:

Equity is basically the difference between what you have (your assets) and what you owe (your liabilities). If you sold all your assets today and paid off your liabilities using the money received from the sale of your assets, the money you’d have left over would be your equity.

A balance sheet shows your company assets, liabilities, and equity on a particular date. Because equity is the difference between total assets and total liabilities, it’s also true that total assets equal the sum of total liabilities and equity.

As you enter the opening balances of your assets and liabilities while creating the company file, QuickBooks calculates the amount of equity and records it in an equity account called Opening Balance Equity. In addition to the “Opening Balance Equity” account, QuickBooks often sets up another type of equity account for you called Retained Earnings. This account tracks your company’s net income from previous fiscal years. QuickBooks automatically transfers your profit (or loss) to Retained Earnings at the end of each fiscal year.

If your company is a sole proprietorship, you don’t have to add any more equity accounts to your chart of accounts. All the equity belongs to the company’s sole owner. If your business is a partnership, you’ll probably want to set up separate equity accounts for each partner.

23.2- Recording an Owner’s Draw:

If your company is a sole proprietorship, you can take draws against the equity that you have in your company. To record an owner’s draw, you simply create a check to yourself, which you may place in your “Other Names” list to avoid confusion, and assign the amount of the check to the equity account that you use to record your draws, like “Owner’s Equity:Owner’s Draws.”

23.3- Recording a Capital Investment:

As an owner of a sole proprietorship or partnership, a capital investment is personal money that you or a business partner invests in your business. You use an equity account to track capital investments. You may call it something like “Owner’s Equity:Owner’s Contributions.”

To create a capital investment, select “Banking| Make Deposits” from the Menu Bar. Click “Cancel” on the “Payments to Deposit” window and any other screen that may appear, if you want to record the investment separately, until you reach the “Make Deposits” window.

In the “Make Deposits” window, select the account into which you want to deposit the money from the “Deposit To” drop-down. In the next blank transaction line, select the name of the person making the investment from the “Received From” drop-down. Then select the appropriate equity account you use to track capital investments from the “From Account” drop-down. Then enter the amount that they are investing into the “Amount” column. Then just save the transaction by clicking the “Save & Close” button.

24.1- Using the Letters and Envelopes Wizard:

Since you are already keeping much of your vendor and customer information in QuickBooks, it can be useful to note that you can also send customized letters to them without having to retype much of the information. QuickBooks provides you with a variety of different business letters that you can edit as needed to suit your particular company.

QuickBooks uses the “Letters and Envelopes” wizard to assist you in creating these letters. To start the “Letters and Envelopes” wizard, choose “Company| Prepare Letters with Envelopes” from the Menu Bar. Then select the type of letters to create from the side menu of choices that appears.

In the “Letters and Envelopes” wizard that appears, answer the questions posed to you in each screen and then click the “Next” button to continue through the screens until you are finished. Note that in order to use this feature, you must have Microsoft Word and either QuickBooks Pro or Premier.

24.2- Editing Letter Templates:

While you can make small changes to each letter as you print them individually, you can also enforce global editing changes to all future copies of a letter by editing the letter template, which is the original copy of the letter, in order to make changes to all future copies of the letter that you produce.

To edit the letter templates, select “Company| Prepare Letters with Envelopes| Customize Letter Templates…” from the Menu Bar. In the “Letters and Envelopes” window, select the “View or Edit Existing Letter Templates” option button and then click the “Next” button. In the “Types of Letters” section, choose the option button to display a listing of letters within the selected category in the list to the right. In the “Letters Templates Available” list, select the name of the letter template that you want to edit and then click the “Next” button.

Edit the document in Microsoft Word, adding any additional fields using the “Add-Ins” tab in Microsoft Word 2007 through 2013. When you are finished, click the “Save” button in the Quick Access Toolbar at the very top of the Microsoft Word 2007 or 2013 application to save your changes to the template. You can then close Microsoft Word by clicking the “X” in the upper right corner of the application window.

When you edit the letter template, you can add and edit the body of the letter as well as change dynamic information by using the “Add-Ins” tab in using Microsoft Word 2007 through 2013 to add more fields of data. Be careful, though! Any changes that you make and save to the letter template will affect all future letters based on the template.

25.1- Viewing Your Company Information:

If you move or get a new phone number, you’ll want to change your company’s information to reflect that update. To update your company’s information in QuickBooks 2014, select “Company| My Company…” from the Menu Bar. Then click the “Edit” button in the upper-right corner of the window that appears to open the “Company Information” dialog box. To update your company’s information in QuickBooks 2013, select “Company| Company Information…” from the Menu Bar. In the dialog box that then appears, change any information that is inaccurate and just click “OK” to save your changes. You can then close the “My Company” window if using QuickBooks 2014.

25.2- Setting Up Budgets:

Budgets can be created for either Profit and Loss or Balance Sheet accounts, but they do have to be account-based. You can create them from scratch, from actual data from the previous fiscal year, or from the previous fiscal year’s budget. A budget is uniquely identified by its fiscal year, the account type (either Profit and Loss or Balance Sheet) and if desired, further identified by Customer:Job or Class.

To create a budget, select “Company| Planning and Budgeting| Set Up Budgets” from the Menu Bar. If you have already created a budget, you can click the “Create New Budget” button. In the “Create New Budget” window, choose the fiscal year for the new budget and then choose to create a budget for either “Profit and Loss” or “Balance Sheet” accounts by clicking the desired option button. Click “Next” to continue.

If you selected a “Balance Sheet” budget, then just click “Finish” to begin entering budget data. If you chose “Profit and Loss,” you can then specify the additional criteria of segmenting it by either “Customer:Job” or “Class,” if class tracking has been turned on. You can then click “Next” again to choose whether you want to “Create budget from scratch” or “Create budget from previous year’s actual data” by selecting the appropriate option button. Click “Finish” to create the new budget.

At that point, you can simply place the amounts that you want to spend for each account into the months shown. When you have entered your budget, simply click “Save” to save the data. Then click “OK” to close the budget window.

25.3- Using the To Do List:

You can remind yourself of tasks you want to complete by a certain date. You can look at your notes in the “To Do” list at any time or you can use the “Reminders” list to see the notes whose dates are due.

To create a new “To Do” note, select “Company| To Do List” from the Menu Bar. Click the “To Do” button and choose “New To Do” from the pop-up menu that appears. In the “Add To Do” window, select the type of “To Do” note that you want to create from the “Type” drop-down. Select the priority from the “Priority” drop-down. If the task requires the presence of another individual, check the “With” checkbox. Then use the drop-down below that to select the type of individual. This can be either a “Lead,” “Customer,” “Vendor,” or “Employee.” Then use the next drop-down to choose the name of the specific individual required. Then enter the date that the item is due by selecting a date from the “Due” field. If you want to specify a time, check the “Time” checkbox and then enter a time into the adjacent fields. You can then enter detailed notes about the item into the “Details” field. Then select the status of the item by choosing one from the “Status” drop-down. When finished, click the “OK” button to add the item to your “To Do” list.

When you complete a “To Do” item, you can double-click on its entry within the “To Do List” window to open the “Edit To Do” window. Here you can then select “Done” from the “Status” drop-down and then click the “OK” button. The item will then appear within the “To Do List” window with a checkmark in the far left “Done” column. To delete an item from the list, click on its name within the “To Do List” window. Then click the “To Do” button and choose the “Delete Selected To Do” command. Then click the “OK” button.

25.4- Using Reminders and Setting Preferences:

A nice feature of the QuickBooks program is that when you open it up, you can have reminders appear to tell you if you have transactions to complete, such as paying your bills, or depositing funds. If you don’t see the reminders window when you open up QuickBooks and you would like to, just turn it on by selecting “Edit| Preferences…” from the Menu Bar. Select “Reminders” from the scroll box at the left side of the dialog box and click the “My Preferences” tab. Check the “Show Reminders List when opening a Company file” checkbox and then click the “OK” button to enable the feature.

25.5- Making General Journal Entries:

You can create general journal entries to record transactions that you don’t enter through the other forms and screens in QuickBooks. Actually, you create general journal entries when you make entries directly into the account registers for transactions like depreciation expense transactions. While QuickBooks is a terrific program because it simplifies accounting using the concept of checking registers, you can still create general journal entries if you prefer to work with more traditional credits and debits.

General journal entries made in QuickBooks must use double-entry. That is, the credit and debit amounts must balance for the transaction to be posted. To create a general journal entry, select “Company| Make General Journal Entries…” from the Menu Bar. Then select the accounts involved in the transaction and enter their credit or debit amounts. To post the balanced transaction, click “Save & Close.”

25.6- Using the Cash Flow Projector:

You can use the data that you have already entered into QuickBooks along with the Cash Flow Projector to create an estimate of the cash flow in your company for the next six weeks. After you set up the information needed to create the cash forecast, you can then view the cash available in a report. You can even go in and view how making changes to estimated receipts and disbursements could affect your future cash balance.

To start the Cash Flow Projector, select “Company| Planning & Budgeting| Cash Flow Projector” from the Menu Bar. This will launch the Cash Flow Projector. Read about what this tool will provide to you on the initial screen and then click “Next” to continue.

In the second screen check any accounts that you want to use as the beginning cash balance for your company. You can then enter any manual adjustments to that balance in the “Adjust Balance” box at the bottom of this window. Note that this adjustment will be used each time you create the cash flow forecast, although it can be changed later, if desired. Click “Next” to continue.

In the next screen, you can use the drop-down under the “Itemized Cash Receipts” section to select which projection method you want to use for cash receipts. If you wish to learn more about the projection methods, you can click the helpful hyperlinks in the upper right corner of the window. If you selected the manual projection method then enter a date, description and amount for your cash receipts in the section provided below the drop-down. Repeat this to enter all desired cash receipts for each week and then enter any adjustments in the weekly summary section at the bottom of the screen. If you selected an automatic projection method then edit the itemized cash receipts as necessary and enter any adjustments in the weekly summary. If you have entered all your cash transactions in QuickBooks, an adjustment may not be necessary. Click “Next” to continue.

In the next screen, you can enter any expenses that are not accounts payable. You can either enter detailed expenses, or a summary of multiple expenses in one line. Enter these into the “Business Expenses” section. You can also make adjustments at this time, as well. Note that each screen has a “Preview Projection” button at the bottom that you can click to see how your changes will impact the forecast. Then click “Next” to continue.

In the last screen, you can review the bills in your accounts payable account. Here you can adjust the payment dates if needed. You can also adjust the weekly accounts payables summaries at the bottom of the window, if needed. At that point, you can click the “Finish Projection” button to create the Cash Flow Projection. This document can be printed by clicking the “Print…” button at the bottom of the window. You can also click the “Save as PDF…” button to save it as a PDF document file. When you are finished, click “Close” to close the projection. Then you can close the Cash Flow Projector by clicking the “Close” button.

26.1- Company File Cleanup:

In QuickBooks you can condense the data in your company file to remove old transactions from your company file. This can remove detailed transactions prior to a specified date and inactive list records from your company file and replace them with general journal entries. This can often improve performance in company files with a high volume of transactions entered.

You can start the wizard by selecting “File| Utilities| Condense Data…” from the Menu Bar. At that point, simply step through the screens answering the questions posed to you and clicking the “Next” button to continue. When you are ready to begin the backup process, click the “Begin Condense” button.

Note that during this process an additional copy of your company file- called the “archive copy” is created. The archive copy contains a copy of your company’s data before any transactions are removed. The archive file name will contain the date you run the condense process, your company name, and the label “Archive Copy.” You should never use the archive copy for active data entry. You can use the archive copy to run reports for those periods in which transactions have already been condensed.

If the condense process completes successfully the archive copy and the condensed data files co-exist on your disk. If you want to keep a separate archive in another location, you must backup the archive file in a separate backup process.

26.2- Exporting List Data to an IIF File:

You can export your list data into an IIF file. This file format stores list information in a text format for transfer to another company file, or transfer to other applications that can use IIF files. You create export files by selecting “File| Utilities| Export| Lists to IIF Files…” from the Menu Bar.

In the next screen you then choose which lists you would like to export to the IIF file. Then click “OK” to continue and open the “Export” dialog box. Here you can select the folder into which you would like to save the export file and what you want to name the file. When you are ready to continue, click the “Save” button to save the IIF file with the information from the selected lists.

26.3- Advanced Importing of Data:

You can import list data into QuickBooks using Microsoft Excel. You can also easily copy and paste data from an Excel workbook into the lists within your company file without having to perform an import. To see how you can perform this task, please review lesson “3.11- Adding Multiple List Entries from Excel” in the “Introductory QuickBooks” manual.However, in addition to being able to copy and paste the Excel data, you can also perform an advanced importing of Excel data into your QuickBooks lists.

You can import information from an Excel workbook into QuickBooks’ customer, vendor, item or account lists. To do this, select “File| Utilities| Import| Excel Files…” from the Menu Bar.

In the window that appears, click the “Advanced Import” button. On the “Set Up Import” tab, click the “Browse…” button at the right end of the “File:” text box to launch a dialog box where you can select the Excel file to import. Then you can select which sheet in the workbook to import from the drop-down below the file name. If the data that you are importing has column labels, check the “This data file has header rows” checkbox to use the topmost row of data in the selected sheet as a header.

In the “Data Mapping” section, you must then tell QuickBooks which columns in the Excel file should be imported into which fields in the QuickBooks file. Click the “<Add New>” choice from the “Choose a mapping:” drop-down to create a new data mapping for your Excel data. This will launch the “Mappings” dialog box. Here you must type a name for your new data mapping into the “Mapping name:” text box. Then select into which list you want to import the data from the “Import type:” drop-down. When you do, the available fields in the list will appear in the left column. For each piece of data that has a match in your Excel import file, click into the right column and select the name of the Excel column (if your list has headers) to which the data corresponds. When you are finished, click “Save” to save the data mapping.

To preview the data before importing, click the “Preview” button. This will show you the data as it would look when imported, along with any errors that would occur if the data was imported. At the bottom of this window you can select how you want QuickBooks to handle imported rows that cause errors. When the data looks good, click “Import” to import the data.

26.4- Updating QuickBooks:

You can ensure that your version of QuickBooks is current by selecting “Help| Update QuickBooks…” from the Menu Bar. You can either manually or automatically have QuickBooks search for updates. If you want to change that setting, in the “Update QuickBooks” screen click the “Options” tab. Here you can select to turn the feature on or off by selecting “Yes” or “No” to the “Automatic Update” option. If you have it turned off, then you have to connect to the Internet and click the “Update Now” button on the “Overview” screen to download the updates manually.

26.5- Using the Calculator:

If you need to perform some quick calculations, you can access the calculator in QuickBooks by selecting “Edit| Use Calculator” from the Menu Bar. That will bring up the calculator so you can double-check numbers, or perform whatever other task for which you need a calculator.

26.6- Using Portable Company Files:

You can create a portable company file that you can take with you on portable media or e-mail to another for use. For example, if you wanted to email a copy of your company file to your accountant, you could send them a portable company file, which has a .QBM extension. When they open the file you sent them, it will open the file and create a QuickBooks company file (with the .QBW file extension) from the data. If you make changes to a portable company file, you cannot import the changes to your original company file later without overwriting any changes made to the original company file. If you wish to still use the original copy while someone makes changes to another copy, which you can import later, then use the “Accountant’s Review” feature, instead.

To make a portable company file, select “File| Create Copy…” from the Menu Bar.

In the window that appears, select the “Portable company file” option button, and then click the “Next” button to continue. In the “Save Portable Company File” dialog box, choose where you want to save the portable copy of the company file and what you want to call it. When you are ready, click the “Save” button. Then click “OK” at the message box that tells you QuickBooks must close and reopen the company file first. QuickBooks will then create the portable copy for you. Click “OK” in the message box that appears.

To later open a portable company file to create a new company file that you can use, open QuickBooks and select “File| Open or Restore Company…” from the Menu Bar. In the window that appears, select the “Restore a portable file” option, and then click “Next” to continue. In the “Open Portable Company File” dialog box that then appears, select the portable company file you would like to open and then click the “Open” button to return to the “Open Portable Company File” dialog box. Here you can read the information, and then click the “Next” button when you are ready to continue.

In the “Save Company File as” dialog box that then appears, you can enter the name and location to which you want to save the company file that will be created from the portable copy. When that has been accomplished, click the “Save” button to open the portable copy and create a new company file from the data, which you can then use for data entry.

26.7- Using the Calendar:

You have a calendar feature that allows you to see company information, such as when bills are due, in a calendar layout. You can open the calendar by clicking the “Calendar” button in the QuickBooks toolbar, by clicking the “Calendar” icon within the Home Page, or by selecting “Company| Calendar” from the Menu Bar.

Within the calendar, you can see the current date selected within a month-style layout. For the selected date, you can also see the transactions that were entered, bills due, and other company transactions shown in a listing at the bottom of the calendar window. To the right of the calendar you can see a listing of upcoming transaction items that are due, such as to do items and bills, as well as past due items. Note that you can open any items shown within these areas by simply double-clicking on them to open the original transaction window.

At the top of the calendar is a toolbar that you can use to change the dates displayed. You can use the left and right pointing arrows to move through the months shown. The name of the currently displayed month and year is then displayed within the toolbar. If you wish to jump back to select the current date, you can click the “Today” button within the toolbar. You can change the layout of the calendar by clicking either the “Daily View,” “Weekly View,” or “Monthly View” buttons.

If you wish to select a particular date within the calendar, you can either click on the date shown in the calendar view, or you can select a date from the “Select a date” calendar drop-down shown in the toolbar at the top of the window.

You can also filter the transactions shown within the calendar by using the “Show” drop-down. The choice selected by default is “All Transactions,” however you can choose to view only selected transactions by making a choice from this drop-down menu.

When you are finished viewing the calendar window, simply close it by clicking the small “x” in the upper right corner of the window or pressing the “Esc” key on your keyboard.

27.1- Creating an Accountant’s Copy:

You can create an accountant’s copy of your company file to give to your accountant, should they ask for one. When an accountant’s copy is created, you can still use your company file and then later import changes made by your accountant in the accountant’s copy back into your company file. This gives you a bit more flexibility for data entry than the portable company file option does.

To create an accountant’s copy, open the company file for which you want to create an accountant’s copy and then select “File| Accountant’s Copy| Save File…” from the Menu Bar. You then must click the “Next” button in the wizard that appears and then select a dividing date. The dividing date is the date before which your accountant can make changes, but you cannot. Once that has been selected, click the “Next” button to continue. At that point, select the removable media to which you will be saving the copy and then click the “Save” button to create the copy. After creating the accountant’s copy, give the saved file you created to your accountant to make the necessary changes.

At this point, your original company file will display text that says “Accountant’s Changes Pending” within its title bar.You can still perform normal data entry in the original company file, but note that you cannot make some kinds of changes to the company file- such as deleting, renaming, or structurally rearranging the existing accounts in the chart of accounts.

27.2- Transferring an Accountant’s Copy:

If you work with an accountant who uses the QuickBooks for Accountants Edition, you can use the “File Transfer” ability within QuickBooks Pro to send an accountant’s copy to your accountant. To use this feature you must be using QuickBooks Pro 2013 or better, have an Internet connection and an e-mail address, and you must know your accountant’s e-mail address. This feature allows you to save the accountant’s copy to an Intuit web server, which notifies your accountant via e-mail to download the copy.

To perform this task, select “File| Accountant’s Copy| Send to Accountant…” from the Menu Bar. In the “Send Accountant’s Copy” window that appears, click the “Next” button to continue. In the next screen, use the “Dividing Date” drop-down to select a dividing date for your accountant’s copy file. The dividing date is the date before which your accountant can make changes, but you cannot. After selecting a dividing date, click the “Next” button to continue. In the next screen, enter your accountant’s e-mail address into the “Accountant’s e-mail address” and “Reenter accountant’s e-mail address” fields. Then enter your name and e-mail address into the “Your name” and “Your e-mail address” fields. Then click the “Next” button to continue. In the next screen, you can enter a password for the accountant’s copy that is stored on the web server. Your accountant will need this password in order to access your accountant’s copy. You can enter the same password that you use for the “Admin” account within your company file, if desired. You can also enter your own strong password into the “Password” and “Reenter password” fields. A strong password is at least 7 characters long with at least 1 capital letter and 1 digit. Note that you must let your accountant know what the password is so that they can download your company file. You can then enter any additional instructions for your accountant into the “Note” field. Then click the “Send” button to create and upload your accountant’s copy to the web server, and be sure to let your accountant know what the password is.

Your accountant will receive an e-mail with a link that they can click in order to download and open your accountant’s copy. Note that they will need to enter the password you created in order to do this. Also, your original company file will display text that says “Accountant’s Changes Pending” within its title bar. After creating the accountant’s copy, you can still perform normal data entry in the original company file, but note that you cannot make some kinds of changes to the company file- such as deleting, renaming, or structurally rearranging the existing accounts in the chart of accounts.

27.3- Importing Accountant’s Changes:

After creating an accountant’s copy of your company file, later on you must import your accountant’s changes back into your company file to restore full functionality to your original company file.

If your accountant sends you a file, insert the copy of the changes that your accountant gave to you on the removable media (i.e. floppy disk, CD-ROM, flash drive). Then open your company file and select “File| Accountant’s Copy| Import Accountant’s Changes from File…” from the Menu Bar. You must make a backup before you can import the accountant’s changes. Make the backup file. Then navigate to the folder or drive that contains the file with the changes and double-click on the file to open it and import the changes. Note that the “Accountant’s Changes Pending” message in the title bar of the company file has disappeared. That means that you have successfully imported the changes.

If you receive the changes from the internet by using the “File Transfer” feature, then you will receive an e-mail from your accountant informing you that the changes to the accountant’s copy are complete and that you have changes to import. At that point, you have 30 days to import the accountant’s changes into your company file. To download these changes, open your company file and then select “File| Accountant’s Copy| Import Accountant’s Changes from Web…” from the Menu Bar. After the download is completed, you will see a listing of the accountant’s changes appear within your company file. Note that the “Accountant’s Changes Pending” message has also disappeared from the title bar of the company file.

27.4- Removing Restrictions:

After creating an accountant’s copy of your company file, you will see the “Accountant’s Changes Pending” message within the title bar of the company file. You may also notice that some tasks, such as deleting accounts within the chart of accounts, cannot be performed on a company file when it is waiting for changes from an accountant. If it turns out that you will not be importing changes from your accountant, then you can remove the restrictions placed on your company file by creating an accountant’s copy. Note that if you do this you will not be able to import any changes to your company file from the existing accountant’s copy, however you will be able to restore the full functionality of your company file.

To remove restrictions from a company file, open the company file and then select “File| Accountant’s Copy| Remove Restrictions…” from the Menu Bar. In the message box that then appears onscreen, check the checkbox and then click the “OK” button to remove the accountant’s copy restrictions.

28.1- Using Help:

QuickBooks provides a multitude of different support features. Answers to almost any QuickBooks question can be found by using the “QuickBooks Help” feature. You can search for help topics by subject here and display the information that is found. Another help feature is the online “QuickBooks Support” that can assist you with technical support for your QuickBooks program, and also allow you to search for online help topics regarding the QuickBooks software.

 

 

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