Updated July 4, User Manual Canadian Edition EASYBOOKS ONLINE. Access Your Financials From Anywhere at Anytime

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1 User Manual Canadian Edition Updated July 4, 2004 EASYBOOKS ONLINE Access Your Financials From Anywhere at Anytime

2 Contents Page Page Chapter 1 GETTING STARTED Chapter 5 4) Banking 50 Chapter 2 1) Setting up your computer for Easybooks 2) Computer System Requirements 3) Overview of Easybooks 4) Getting Started Checklist 5) Contacting Easybooks SETTING UP YOUR LISTS & OTHER INFORMATION 1) Company Information Cont d a) Cash Transfers b) Bank Deposits c) Bank Reconciliation 5) Payroll a) Pay Employees b) Payroll Calculator 6) Journal Entries 7) Reprinting, Editing & Deleting Posted Transactions ) Chart of Accounts 3) Items 4) Customers 5) Vendors Chapter 6 TAX REPORTS 1) Financial Reports 2) Tax Remittance Reports 58 6) Form Templates 7) Classes Chapter 7 MANAGEMENT REPORTS 58 8) Terms 9) Customer Messages 10) Payment Methods 11) Sales Tax Codes Chapter 8 TOOLS & UTILITIES 1) Opening Your Company in Another Window 2) Printing from Forms Queue 59 Chapter 3 SETTING UP YOUR PAYROLL 12) Payroll Items Setup 13) Employee Setup ) Keeping a Record of Your Data Entry 5) Verifying Your Easybooks Data Chapter 4 ENTERING OPENING BALANCES Chapter 9 SECURITY 1) Close Books 59 Chapter 5 ENTERING TRANSACTIONS & PRINTING FORMS 1) Selling to Customers 38 2) Setup Users 3) Change Password 4) Access Report a) Create Invoice b) Receive Customer Payments c) Cash Sales d) Issue an Invoice Credit 2) Non-Customer Receipts 3) Purchases & Payments a) Write Cheques b) Cash Payments c) Accounts Payable Tracking

3 GETTING STARTED 1) Setting up your computer for Easybooks a) Software Installation Easybooks does not require any software to be installed on your computer as it is accessed using your Internet Explorer browser that comes preloaded with your computer. This is the same browser software you use to surf the Internet. If you would like to upgrade your Internet Explorer to the most current version (version 6.1) you will find a link to Microsoft in the Resource Section of Upgrades to Easybooks are done instantaneously such that whenever you access Easybooks you are always using the most current version of the software. This also applies to payroll tax tables updates so that your employee payroll is calculated using the most current tax tables. b) Optimize Internet Explorer i) To ensure that Easybooks displays properly on your computer and your cheques and invoices print correctly start Internet Explorer and complete the following setup procedures: (a) Page Setup from File on the menu bar, select Page Setup. Delete all text in the Header and Footer section to ensure that this information does not print on your invoices and cheques. Set your margins for Left, Right, Top and Bottom to.3 inches. Click "O.K" to save your changes. If you have an inkjet printer you may not be able to get your bottom margin set to.3 inches, as the minimum may be.5 inches. This is acceptable. (b) Trusted Site some versions of Internet Explorer may prevent you from printing your reports, invoices and cheques from Easybooks unless you add Easybooks as a trusted site. From Tools on the menu bar select Internet Options. Select the Security tab and click on Trusted Sites. Click on Sites and under Add this Web site to the zone type in Click "O.K" to save your changes. Easybooks will now be recognized as a Trusted Site by your computer and you will be able to print to your local printer. (c) Text Size from View on the menu bar, select Text Size. Your text size should already be set to medium by default. If not, reset your text size to medium. 2) Computer System Requirements a) Minimum Requirements - IBM compatible Pentium II 233 MHz computer with 64 MB of RAM, Windows 98, Internet Explorer 5.5 and a high speed internet connection b) Get Better Performance for better performance we recommend an IBM compatible Pentium IV computer with 256MB of RAM, Windows XP, Internet Explorer Version 6 and a high speed Internet connection. 3) Overview of Easybooks Easybooks was developed to meet the bookkeeping and tax reporting needs of small businesses by providing them with a comprehensive, yet easy to use, accounting package that would allow them to practice good financial management while maintaining the link with their accountant. Easybooks takes advantage of the anywhere, anytime access of the Internet to create a more efficient bookkeeping process for small businesses and their accountants. Easybooks allows the business owner and the accountant to actively participate in the bookkeeping process by allowing both of them to access the company s financials from their respective offices or other offsite locations. To access your Easybooks company file, first go to click on the picture to the left labelled Existing Clients and enter your access codes as follows: 1

4 Once you are logged in to Easybooks, take a look around at the Home screen to become familiar with the following items: a) Your Company Name, User logged on and Logo The top right of the screen will show your company name, the name of the current user logged on and if you uploaded it, your company logo. b) Menu Bar File, Enter Transactions, Tax Reports, Management Reports, Lists, Security and Help are the functions you will be using to enter data into your company file and to print reports and other information for your company. Click on each of the items and become familiar with the functions under each menu item. i) File allows you to print forms you have stored in the Print Queue and to access certain Utilities to help you use Easybooks. ii) iii) Enter Transactions all of the transactions you need to enter for your bookkeeping can be found under this menu item. No need to look elsewhere. Tax Reports these are the reports that your accountant will need to prepare your business tax returns. You will also find tax remittance reports to help remit the correct amount of GST/HST, PST and other taxes your business owes. iv) Management Reports as your business grows and as you access outside financing to help you grow, you will need to keep on top of the various financial aspects of your business. You will find reports to help you manage your accounts receivable, track your sales by segments, manage your payables, etc. v) Lists all the information you need to setup to use Easybooks is located under this menu item. You will use the functions under Lists to setup your customers, vendors, products you sell, etc. vi) vii) Security we want you to have a safe and uneventful computing experience when you use Easybooks. This starts with adopting good computing practices. Remember to change your password at least once a month, inactivate users when they leave your employ, review your access report whenever you log on and of course log off from Easybooks immediately after completing your session. To avoid accidental changes to prior years data, close your books once you have completed a fiscal year. Help an extensive Help library can be found here to make Easybooks fun and easy to use. We will keep adding to this Help library as we receive feedback from you. c) Contact us this provides you with a list of address and phone numbers to contact Easybooks for support. d) Log off Click here to end your Easybooks session. 4) Getting Started Checklist To help you get up and running with Easybooks as quickly as possible we have put together a Getting Started Checklist to guide you in setting up your company. To ensure that you are always using the most current version of this checklist we have made it a part of the Easybooks application. To print a copy of the checklist login to Easybooks, from Help on the menu bar select Getting Started Checklist. You can print this checklist directly from the screen or download a pdf copy of the checklist then print. 5) Getting Help If you encounter any technical issues in using Easybooks please contact us at or by phone at or toll free For efficiency, please use to request support as your question may need to be routed to more than one person before a response can be made. 2

5 SETTING UP YOUR LISTS & OTHER INFORMATION In this section your will learn how to setup various Lists that you will use while entering transactions or that will be used to keep track of data you will be entering. Lists allow you to setup information once that you will be using repeatedly. The information in brackets alongside each heading shows you the link to the screen. 1) Company Information (Lists Company Information) From Lists on the menu bar, select Company Information. This non-editable screen shows you the Company Information already setup. 3 This screen is used to enter data about your company. Most of your Company Information would have been entered during your company setup by Easybooks and if applicable, by your accountant. Review the information on this screen. If you need to make changes select Edit. Make changes on the editable screen. Select Save to update your changes or Cancel to discard your changes or to close the form. You will be returned to the non-editable screen. Review the screen to ensure that your changes have been made. Close the screen by clicking on the "X" at the top right of the screen. a) Business Name/Alias - the name you enter here will print on your invoices and other forms. If you wish you can enter an alias for your company name for additional security comfort. b) Address - enter the address you would like to print on your invoices and other forms. c) Postal Code, City - enter your city and postal code. This will show on invoices and other printed forms. d) Phone, Fax - enter your phone and fax # as you would like to see them on your invoices and printed forms. e) Web Site enter your company s web site. This will show up on your invoices and printed forms. f) enter a general address for your company. This will also show up on your invoices and printed forms. g) Last Month of Fiscal Year enter the last month of your fiscal year-end. Easybooks uses this to set a default end period for reports you select for viewing. h) Business No. enter your CCRA Business No. (GST number). This will automatically appear on your printed invoices and other reports that require your business number to be displayed. i) Vendor for GST/HST Payable enter Receiver General here as the vendor that GST is paid to. j) Vendor for PST Payable enter the provincial payee for PST, e.g., Minister of Finance.

6 k) Entitled to GST ITCs if you are entitled to claim GST input tax credits on your purchases select Yes ; otherwise select No. l) Using Account Number - if you select Yes account numbers will appear on your Chart of Accounts, your transaction screens and reports. We recommend you select Yes. m) Using Class - Class is used to define cost centres, profit centres, departments, divisions, etc. Basically, any category that you would like to use to track revenues, expenses or both. If you would like to use Class select Yes ; otherwise select No. n) Type of Ownership - this is initially used to help us recommend an appropriate chart of accounts for you. Any changes after you have loaded your chart of accounts will have no effect on your chart of accounts. o) Province of Business Operations - Select from the list the Province in which your business is registered. This will determine the type of sales taxes your business is subjected to. p) Nature of Business Operations - this is initially used to help us recommend an appropriate chart of accounts for you. Any changes after you have loaded your chart of accounts will have no effect on your chart of accounts. q) Company Logo if you would like to have your logo printed on invoices click Browse and select a jpeg picture file of your logo that you have stored on your computer. You can change your logo at any time by coming back to this screen and selecting another jpeg file. r) Delete Logo if you wish to delete your logo click the check box and select Save. 2) Chart of Accounts (Lists Chart of Accounts) From Lists on the menu bar, select Chart of Accounts. This is your Chart of Accounts List. a) Chart of Accounts Overview If you requested Easybooks to setup a sample Chart of Accounts you will see a list of the ledger accounts available to post your transactions to. If you did not request a Chart of Accounts to be setup this screen will only show the Easybooks system ledger accounts. Your Chart of Accounts is the heart of your accounting system as it determines how your accounting data is stored and eventually reported on your financial reports. i) Active/Inactive/All this allows you to switch between active ledger accounts and inactive ledger accounts. You may choose to make an account inactive if you no longer make postings to that account. To see all ledger accounts click All. ii) Add New Account click here to add new ledger accounts. iii) Print you can print your Chart of Accounts List by clicking on Print. iv) Account Name the account name is used to describe a ledger account. Account names are used in your financial reports to group related transactions together. Choose account names that make sense for your business and that is acceptable to your accountant. Ask your accountant to review your Chart of Accounts before you start posting transactions. If you see account names that are indented and fall below another account, these are sub-accounts of the account at the top. Sub-accounts are used to create groups of accounts that are related. For example, in the Chart of Accounts List above, Buildings, cost and Accum depn buildings are sub-accounts of Buildings, net. Buildings, net is called a Parent account. If you create a report for a Parent account it will include information for all of its sub-accounts. 4

7 v) Type or more fully, Account Type determines whether a ledger account shows up on your balance sheet or income statement. Easybooks uses 14 account types. Select one of the following when adding ledger accounts: (a) Cash/Bank for all cash and bank ledger accounts. (b) Accounts Receivable for all customer receivable ledger accounts. (c) Other Current Assets for inventory, short-term investments, prepaid expenses and all other current asset ledger accounts. (d) Fixed Assets for ledger accounts being used to record fixed assets such as machinery, furniture, buildings, etc and the related accumulated depreciation ledger accounts. (e) Other Long Term Assets for ledger accounts used to record other capital assets, other than fixed assets, such as goodwill, incorporation costs, customer lists, etc. (f) Accounts Payable - for all vendor payable ledger accounts. (g) Other Current Liabilities for current liabilities, other accounts payable, such as GST payable, Withholding taxes payable, etc. (h) Long Term Liabilities for ledger accounts used to record liabilities that are repayable over more than one year, such as mortgages payable, term loans, long-term shareholder loans, etc. (i) Equity for ledger accounts used to record the receipt and distribution of capital from the business, such as shares sold, capital contributed, dividends paid and retained earnings. (Accounts using the above types will appear on the Balance Sheet) (j) Income from Operations for ledger accounts used to record revenue earned by the business, generally from the sale of goods and services, such as Sale of Auto Parts, Consulting Revenue, etc. (k) Direct Cost (also called Cost of Goods Sold or variable costs) - for ledger accounts used to record expenses directly related to the earning of your operating revenue, such as purchases for resale, direct wages, etc. (l) Expenses/Indirect Costs for ledger accounts used to record your general and administrative expenses such as accounting fees, advertising, office supplies, rent, etc. (m) Other Income for ledger accounts used to record incidental income not directly related to the core business activity, such as interest income, gain on the disposal of assets, dividends received, etc. (n) Other Expense - for ledger accounts used to record incidental expenses not directly related to the core business activity, such as tax penalties, income tax provisions, capital taxes, etc. (Accounts using the above types will appear on the Income Statement) vi) vii) viii) ix) Balance shows the balance for the ledger account as at the date you are logged on. Accounts with Income Statement types do not have a balance shown as they are used to track transactions over the current fiscal period and are then closed out to Retained Earnings. View click here to see the setup details for the selected ledger account. From here you will be able to edit or delete ledger accounts. Ledger click here to see the general ledger report for the selected ledger account. This report shows the transactions posted to this account for the current fiscal year. You can drill down from this report to find the source transactions. Status shows the current account status for the selected ledger account. The green arrow indicates the account is active. To make the account inactive click on the green arrow. In the Inactive Chart of Accounts List, you can make a ledger account active again by clicking on the red status button for that account. 5

8 b) Add Ledger Account To add a new ledger account, select Add New Account from the Chart of Accounts List. Before adding a new ledger account, review your Chart of Accounts List. Determine what type of account you would like to create, an account name and a number to use for the new account. Enter the requested information: i) Account Type select an account type from the drop-down list. If you are setting up a Cash/Bank account you will have an option to select a colour for your cheque screen. When you are entering cheques your screen colour will change as you select different bank accounts to write cheques from. ii) Account Number enter your account number, maximum 7 alpha/numeric characters. iii) Account Name enter the account name you would like to use, maximum 30 alpha/numeric characters. iv) Sub-account of select the parent account if the account you are creating is a sub-account. Sub-accounts are used to create groups of accounts that are related. For example, you can have a Parent account called Sales you can then have sub-accounts for Flower Sales, Gift Baskets Sales, etc. v) GIFI Number this number is used to generate special tax reports for your accountant. Select a GIFI number from the list. If uncertain leave blank for your accountant to complete. vi) Active the default is Yes so no changes are required. vii) Cheque Colour select a colour that closely matches the colour of your bank cheques. This is optional. Select Save to create your ledger account. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Ledger Accounts To change details of a ledger account or to delete a ledger account: i) Select View for that ledger account from the Chart of Accounts List to go to a non-editable screen showing details of the selected account. ii) iii) iv) To delete a ledger account, select Delete. To make changes to a ledger account, select Edit from this screen to go to an editable screen. Make changes to the account information and select Save to update your changes, or Cancel to discard your changes or to close the form. 6

9 v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Chart of Accounts to return to the Chart of Accounts List. 3) Items (Lists Items) From Lists on the menu bar, select Items. This is your Item List. Items refer to the products or services you sell to your customers or clients. a) Item List Overview i) Active/Inactive/All this allows you to switch between active Items and inactive Items. You may choose to make an Item inactive if you no longer sell that item. To see all Items click All. ii) Add New Item click here to add new Items. iii) Print you can print your Item List by clicking on Print. iv) Item Name this is the Item that you will be selecting on invoices to bill your customer for products or services. Keep this name as short as possible as shown in the sample Item List above. v) Description this is full description of the product or service that relates to the Item Name. This description will appear on your invoices. vi) Type this is used when you are setting up new Items to distinguish between different types of products or services. vii) Account all Items are assigned to a ledger account so that the related revenue (or expense) can be reported on your income statement. viii) Price if entered during Item setup, the price of the Item is shown here. ix) View click here to see the setup details for the selected Item. From here you will be able to edit or delete Items. x) Status shows the current status for the selected Item. The green arrow indicates the Item is active. To make the Item inactive click on the green arrow. In the Inactive Item List, you can make an Item active again by clicking on the red status button for that Item. b) Add Items To add a new Item, select Add New Item from the Item List. Enter the requested information: i) Item Type select an Item type to match the product or service you will be selling. 7

10 ii) Item Name enter an Item name, maximum 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully when you are entering invoices. iii) Item Description enter a description of the product or service you will be selling. This description will appear on your invoices. Completing this field is optional and there is no limit to the alpha/numeric characters you can enter. iv) Account select the account that will be used to track the revenue for this Item. v) Tax Code select a suitable tax code for this item from the list provided. Tax codes are described in full details in section 11. vi) Price/Amount enter the unit price/rate you will be charging for this product or service. Completing this field is optional. vii) Active the default is Yes so no changes are required. Select Save to create your Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Items To change details of an Item, or to delete an Item: i) Select View for that Item from the Item List to go to a non-editable screen showing details of the selected Item. ii) iii) iv) To delete an Item, select Delete. To make changes to an Item, select Edit from this screen to go to an editable screen. Make changes to the Item information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Item List to return to the Item List. 4) Customers (Lists Customers) From Lists on the menu bar, select Customers. This is your Customer List. Customers refer to the individuals or businesses you sell your goods or services to. Some businesses refer to this as their Client List. 8

11 a) Customer List Overview i) Active/Inactive/All this allows you to switch between active Customers and inactive Customers. You may choose to make a Customer inactive if you no longer sell to that customer. To see all Customers click All. ii) Add New Customer click here to add new Customers. iii) Customer Name this is the Customer that you will be selecting on invoices to bill for products or services. iv) Balance this is the balance owing from your Customers. Only Customers that you extend credit facilities to will have balances owing. v) View click here to see the setup details for the selected Customer. From here you will be able to edit or delete Customers. vi) History this report shows all transactions that have occurred between the Customer and your company. This report can be used to find or review transactions that have been entered for this Customer. vii) Aging this report shows an aging of the customer invoice(s) outstanding. viii) Status shows the current status for the selected Customer. The green arrow indicates the Customer is active. To make the Customer inactive click on the green arrow. In the Inactive Customer List, you can make a Customer active again by clicking on the red status button for that Customer. b) Add New Customers To add a new Customer, select Add New Customer from the Customer List. Enter the requested information: i) Customer Short Name enter a short name for your Customer that will be easy to remember. ii) Customer Legal Name enter the full legal name of the customer. iii) Customer Name & Billing Address this information will be inserted into your invoices automatically when this Customer is selected. This is also the customer s mailing address. iv) Shipping Address if the shipping address is different from the billing address enter the shipping address here, otherwise click Same as Above for the billing address information to be automatically copied into this section. This information will be inserted into your invoices automatically when this customer is selected. This information is optional. v) Contact enter the name of the Customer contact. This information is optional. vi) Phone, Fax, , Web Site enter the information as requested. This information is optional. vii) Active the default is Yes so no changes are required. 9

12 Select Save to create your Customer. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Customers To change details of an Item, or to delete an Item: i) Select View for that Customer from the Customer List to go to a non-editable screen showing details of the selected Customer. ii) iii) iv) To delete a Customer, select Delete. To make changes to a Customer, select Edit from this screen to go to an editable screen. Make changes to the Customer information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Customer List to return to the Customer List. 5) Vendors (Lists Vendors) From Lists on the menu bar, select Vendors. This is your Vendor List. Vendors refer to the individuals or businesses you purchase services from or goods for resale. Some businesses refer to this as their Supplier List. a) Vendor List Overview i) Active/Inactive/All this allows you to switch between active Vendors and inactive Vendors. You may choose to make a Vendor inactive if you no longer make purchases from that vendor. To see all Vendors click All. ii) Add New Vendor click here to add new Vendors. iii) Vendor Name this is the Vendor Name that you will be selecting on cheques and other screens to record purchases of products or services. 10

13 iv) Balance this is the balance owing to your Vendors. Only Vendors that you purchase from on credit will have balances owing. v) View click here to see the setup details for the selected Vendor. From here you will be able to edit or delete Vendors. vi) vii) viii) History this report shows all transactions that have occurred between the Vendor and your company. This report can be used to find or review transactions that have been entered for this Vendor. Aging this report shows an aging of the vendor s bill(s) owing. Status shows the current status for the selected Customer. The green arrow indicates the Vendor is active. To make the Vendor inactive click on the green arrow. In the Inactive Vendor List, you can make a Vendor active again by clicking on the red status button for that Vendor. b) Add New Vendors To add a new Vendor, select Add New Vendor from the Vendor List. Enter the requested information: i) Vendor Short Name enter a short name for your Vendor that will be easy to remember ii) Vendor Legal Name enter the full legal name of the Vendor. iii) Print on Cheque As enter the Vendor s name, as you would like it to appear on printed cheques. iv) Vendor Name & Mailing Address this information will be inserted into your cheques and other forms automatically when this Vendor is selected. This is also the Vendor s mailing address. v) Contact enter the name of the Vendor contact. This information is optional. vi) Phone, Fax, , Web Site enter the information as requested. This information is optional. vii) Business No or SIN enter the business number of the vendor or if an individual, the social insurance number. viii) Report on T4A select if you would like payments to this vendor to be reported on a T4A slip, e.g., commission payments to independent sub-contractors. ix) Report on T select if you would like payments to this vendor to be reported on a T5018 slip - payments to construction sub-contractors. x) Active the default is Yes so no changes are required. 11

14 Select Save to create your Vendor. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Vendors To change details of a Vendor, or to delete a Vendor: i) Select View for that Vendor from the Vendor List to go to a non-editable screen showing details of the selected Vendor. ii) iii) iv) To delete a Vendor, select Delete. To make changes to a Vendor, select Edit from this screen to go to an editable screen. Make changes to the Vendor information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Vendor List to return to the Vendor List. 6) Form Templates (Lists Form Templates) a) Invoice Templates From Lists on the menu bar, select Form Templates Invoice. This is your Invoice Template List. Invoice templates are used to customize the invoices you use for customers that you sell on credit terms to. For example, you can setup separate templates for product invoice, service invoice, professional invoices, etc. We recommend that you also setup a template called Invoice Credit to use for issuing credits to your customers in the event that this becomes necessary. 12

15 i) Invoice Template Overview (a) Add New Template click here to add new Invoice Templates. (b) Template Name these are the names of the templates that you will be able to select when you are creating invoices. (c) Default Template select the template that you would like to automatically load when you are creating invoices. If you do more product type billings then select your Product Invoice template as your default. If you primarily bill time, then select a Fee Billing Template. (d) View click here to see the setup details for the selected Template. From here you will be able to edit or delete Templates. ii) Add New Invoice Template To add a new Invoice Template, select Add New Template from the Invoice Template List. 13 Enter the requested information: (a) Template Name enter a short name for your Template to describe the type of billings it will be used for. (b) Print Items/Page this is the number of sales items that will print on an Invoice form before it breaks to another page. Leave the number unchanged until you get some experience printing Invoices. (c) Additional Top Margin the default top margin is 0.3 inches. If you are printing invoices onto your letterhead paper you may need to select additional top margin to ensure that your invoice data does not print onto the preprinted area of your letterhead. (d) Logo, Company Name, Address check the ones you would like to print on your Invoices. (e) Phone, Fax, Web Site check the ones you would like to print on your Invoices. (f) Form Name the default form name is INVOICE. You can, however, use a different name if you wish. For example, some users usually create a PAST DUE INVOICE to use for receivable collections. (g) Shipping Address if required, check to show on Invoice screen and check to print on your Invoices. (h) Custom Fields there are 5 customizable fields for you to use. Fill in additional information you would like to record on your invoices. See the sample above for some typical field names. Remember to check the ones you would like to show on the Invoice screen and the ones you would like to print on your Invoices. (i) Terms by default, terms will show on the Invoice screen and will print on your Invoices.

16 (j) Item by default, items will show on the Invoice screen. Check if you would like items to print on your Invoices. (k) Date this date field is generally used for professional/service invoices to indicate the date on which the client work was done. If required, check to show on Invoice screen and check to print on your Invoices. (l) Description by default, item description will show on the Invoice screen and will print on your Invoices. (m) Qty if you are billing products, check Qty ; if you are billing time, check Hours. If required, check to show on Invoice screen and check to print on your Invoices. (n) Rate this is your unit product price or your hourly billing rate. If required, check to show on Invoice screen and check to print on your Invoices. (o) Amount this is the result of Rate multiplied by Qty or Hours and will show on the Invoice screen and print on your Invoices. (p) Class if in your Company Information setup you selected Class, then this column will show on your Invoice screen. Class is used for internal accounting purposes and will not print on your Invoices. (q) Tax this column shows the tax code assigned to the item being invoiced. This column will show on your Invoice screen but will not print on your Invoices. Select Save to create your Template. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. iii) Edit/Delete Invoice Template To change details of an Invoice Template, or to delete an Invoice Template: (a) Select View for that Invoice Template from the Invoice Template List to go to a non-editable screen showing details of the selected Invoice Template. (b) To delete an Invoice Template, select Delete. (c) To make changes to an Invoice Template, select Edit from this screen to go to an editable screen. (d) Make changes to the Invoice Template information and select Save to update your changes, or Cancel to discard your changes or to close the form. (e) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Template List to return to the Invoice Template List. 14

17 b) Cash Sales Templates From Lists on the menu bar, select Form Templates Cash Sales. This is your Cash Sales Template List. Cash Sales templates are used to customize the Cash Sales invoice you use for customers that you sell to on a cash basis. For example, you can setup separate templates for product invoice, service invoice, etc. i) Cash Sales Template Overview (a) Add New Template click here to add new Cash Sales Templates. (b) Template Name these are the names of the templates that you will be able to select when you are creating Cash Sales invoices. (c) Default Template select the template that you would like to automatically load when you are creating Cash Sales invoices. If you do more product type billings then select your Product Cash Sales template as your default. If you bill products plus time, then select a Service Cash Sales Template. (d) View - click here to see the setup details for the selected Template. From here you will be able to edit or delete Templates. ii) Add New Cash Sales Template To add a new Cash Sales Template, select Add New Template from the Cash Sales Template List. 15

18 Enter the requested information: (a) Template Name enter a short name for your Template to describe the type of billings it will be used for. (b) Print Items/Page this is the number of sales items that will print on a Cash Sales form before it breaks to another page. Leave the number unchanged until you get some experience printing Cash Sales. (c) Logo, Company Name, Address check the ones you would like to print on your Cash Sales. (d) Phone, Fax, Web Site check the ones you would like to print on your Cash Sales. (e) Form Name the default form name is CASH SALES. You can, however, use a different name if you wish, e.g., CASH SALES RECEIPT. (f) Shipping Address if required, check to show on Cash Sales screen and check to print on your Cash Sales forms. (g) Custom Fields there are 5 customizable fields for you to use. Fill in additional information you would like to record on your Cash Sales. See the sample above for some typical field names. Remember to check the ones you would like to show on the Cash Sales screen and the ones you would like to print on your Cash Sales forms. (h) Payment by default, payment type will show on the Cash Sales screen and will print on your Cash Sales forms. (i) Item by default, items will show on the Cash Sales screen. Check if you would like items to print on your Cash Sales forms. (j) Date this date field is generally used for professional/service invoices to indicate the date on which the client work was done. If required, check to show on Cash Sales screen and check to print on your Cash Sales forms. (k) Description by default, item description will show on the Cash Sales screen and will print on your Cash Sales forms. (l) Qty if you are billing products, check Qty ; if you are billing time, check Hours. If required, check to show on Cash Sales screen and check to print on your Cash Sales forms. (m) Rate this is your unit product price or your hourly billing rate. If required, check to show on Cash Sales screen and check to print on your Cash Sales forms. (n) Amount this is the result of Rate multiplied by Qty or Hours and will show on the Cash Sales screen and print on your Cash Sales forms. (o) Class if in your Company Information setup you selected Class, then this column will show on your Cash Sales screen. Class is used for internal accounting purposes and will not print on your Cash Sales forms. (p) Tax this column shows the tax code assigned to the item being billed. This column will show on your Cash Sales screen but will not print on your Cash Sales forms. Select Save to create your Template. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. 16

19 iii) Edit/Delete Cash Sales Template To change details of a Cash Sales Template, or to delete a Cash Sales Template: (a) Select View for that Cash Sales Template from the Cash Sales Template List to go to a non-editable screen showing details of the selected Cash Sales Template. (b) To delete a Cash Sales Template, select Delete. (c) To make changes to a Cash Sales Template, select Edit from this screen to go to an editable screen. (d) Make changes to the Cash Sales Template information and select Save to update your changes, or Cancel to discard your changes or to close the form. (e) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Template List to return to the Invoice Template List. 7) Classes (Lists Other Classes) From Lists on the menu bar, select Other then Classes. This is your Class List. Classes, sometimes called cost-centres or profit centres, are used to classify your income and expenses among business segments, geographic regions, departments or in any other meaningful way that is suitable for your business. 17 a) Class List Overview i) Active/Inactive/All this allows you to switch between active Classes and inactive Classes. You may choose to make a Class inactive if you no longer use that Class. To see all Classes click All.

20 ii) iii) iv) Add New Classes - click here to add new Classes. Print you can print your Class List by clicking on Print. Class Name this is the Class Name that you will be selecting on your transaction screens to categorize your revenues and expenses. If you see Classes that are indented and fall below another Class, these are sub-classes of the class at the top. Sub-classes are used to create groups of classes that are related. For example, in the sample Class List above, Toronto Sales Office and Whitby Sales Office are sub-classes of Central Ontario Region. Central Ontario Region is called a Parent class. If you create a report for a Parent class it will include information for all of its sub-classes. v) View click here to see the setup details for the selected Class. From here you will be able to edit or delete Classes. vi) Status shows the current status for the selected Class. The green arrow indicates the Class is active. To make the Class inactive click on the green arrow. In the Inactive Class List, you can make a Class active again by clicking on the red status button for that Class. b) Add New Classes To add a new class, select Add New Classes from the Class List. Enter the requested information: i) Class Name enter a name for your Class. ii) Sub-class of select the parent class if the Class you are creating is a sub-class. Sub-classes are used to create groups of classes that are related. If you create a report for a Parent class it will include information for all of its subclasses. iii) Active the default is Yes so no changes are required. Select Save to create your Class. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Classes To change details of a Class, or to delete a Class: i) Select View for that Class from the Class List to go to a non-editable screen showing details of the selected Class. ii) iii) iv) To delete a Class, select Delete. To make changes to a Class, select Edit from this screen to go to an editable screen. Make changes to the Class information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Class List to return to the Class List. 18

21 8) Terms (Lists Other Terms) From Lists on the menu bar, select Other then Terms. This is your Term List. Terms are used on invoices to advise customers when payment is due, what discounts they are entitled to for early payment, what penalties they will incur for late payment, etc. a) Terms List Overview i) Active/Inactive/All this allows you to switch between active Terms and inactive Terms. You may choose to make a Term inactive if you no longer use that Term. To see all Terms click All. ii) Add New Terms - click here to add new Terms. iii) Print you can print your Term List by clicking on Print. iv) Term this is the Term Name that you will be selecting on invoices to advise customers of payment terms. v) View click here to see the setup details for the selected Term. From here you will be able to edit or delete Terms. vi) Status shows the current status for the selected Term. The green arrow indicates the Term is active. To make the Term inactive click on the green arrow. In the Inactive Term List, you can make a Term active again by clicking on the red status button for that Term. b) Add New Terms To add a new Term, select Add New Terms from the Term List. Enter the requested information: i) Term enter a name for your Term. ii) Active the default is Yes so no changes are required. Select Save to create your Term. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Terms To change details of a Term, or to delete a Term: i) Select View for that Term from the Term List to go to a non-editable screen showing details of the selected Term. ii) To delete a Term, select Delete. 19

22 iii) iv) To make changes to a Term, select Edit from this screen to go to an editable screen. Make changes to the Term information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Term List to return to the Term List. 9) Customer Messages (Lists Other Customer Messages) From Lists on the menu bar, select Other then Customer Messages. This is your Customer Messages List. Customer Messages are used on invoices and cash sales generally to bring non-accounting information to the attention of your customer. a) Customer Messages List Overview i) Active/Inactive/All this allows you to switch between active Customer Messages and inactive Customer Messages. You may choose to make a Customer Message inactive if you no longer use that Customer Message. To see all Customer Messages click All. ii) Add New Customer Messages - click here to add new Customer Messages. iii) Print you can print your Customer Messages List by clicking on Print. iv) Customer Message this is the Customer Message that you will be selecting on invoices and Cash Sales to bring non-accounting information to your customer s attention. v) View click here to see the setup details for the selected Customer Message. From here you will be able to edit or delete Customer Messages. vi) Status shows the current status for the selected Customer Message. The green arrow indicates the Customer Message is active. To make the Customer Message inactive click on the green arrow. In the Inactive Customer Messages List, you can make a Customer Message active again by clicking on the red status button for that Customer Message. b) Add New Customer Messages To add a new Customer Message, select Add New Customer Messages from the Customer Messages List. Enter the requested information: i) Customer Message enter a name for your Customer Message. ii) Active the default is Yes so no changes are required. Select Save to create your Customer Message. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. 20

23 c) Edit/Delete Customer Messages To change details of a Customer Message, or to delete a Customer Message: i) Select View for that Customer Message from the Customer Messages List to go to a non-editable screen showing details of the selected Customer Message. ii) iii) iv) To delete a Customer Message, select Delete. To make changes to a Customer Message, select Edit from this screen to go to an editable screen. Make changes to the Customer Message information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Customer Messages to return to the Customer Messages List. 10) Payment Methods (Lists Other Payment Methods) From Lists on the menu bar, select Other then Payment Methods. This is your Payment Methods List. Payment Methods are used on cash sales to indicate how the customer paid for their purchase. a) Payment Methods List Overview i) Active/Inactive/All this allows you to switch between active Payment Methods and inactive Payment Methods. You may choose to make a Payment Method inactive if you no longer use that Payment Method. To see all Payment Methods click All. ii) Add New Payment Methods - click here to add new Payment Methods. iii) Print you can print your Payment Methods List by clicking on Print. iv) Payment Method this is the Payment Method that you will be selecting on Cash Sales invoices to indicate how your customer paid for their purchase. v) View click here to see the setup details for the selected Payment Method. From here you will be able to edit or delete Payment Methods. vi) Status shows the current status for the selected Payment Method. The green arrow indicates the Payment Method is active. To make the Payment Method inactive click on the green arrow. In the Inactive Payment Methods List, you can make a Payment Method active again by clicking on the red status button for that Payment Method. 21

24 b) Add New Payment Methods To add a new Payment Method, select Add New Payment Methods from the Payment Methods List. Enter the requested information: i) Payment Method enter a name for your Payment Method. ii) Active the default is Yes so no changes are required. Select Save to create your Payment Method. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Payment Methods To change details of a Payment Method, or to delete a Payment Method: i) Select View for that Payment Method from the Payment Methods List to go to a non-editable screen showing details of the selected Payment Method. ii) iii) iv) To delete a Payment Method, select Delete. To make changes to a Payment Method, select Edit from this screen to go to an editable screen. Make changes to the Payment Method information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Payment Methods to return to the Payment Methods List. 22

25 11) Sales Tax Codes (Lists Other Tax Codes) From Lists on the menu bar, select Other then Tax Codes. This is your Tax Codes List. Tax codes are used on cash sales and invoices to indicate what sales taxes (GST and/or PST) are payable by the customer on the items purchased. Easybooks has setup all of the standard sales tax codes that you will need to create invoices and cash sales. a) Tax Codes List Overview i) Active/Inactive/All this allows you to switch between active Tax Codes and inactive Tax Codes. You may choose to make a Tax Code inactive if you no longer use that Tax Code. To see all Tax Codes click All. ii) Add New Tax Codes - click here to add new Tax Code. iii) Print you can print your Tax Codes List by clicking on Print. iv) Tax Code This is the Tax Code that you will be selecting when you are setting up Items, or creating invoices or cash sales to automatically calculate the sales taxes payable on the item. v) Description this describes the components of the Tax Code. For example, if you assign a Tax Code of B to an item, Easybooks will automatically calculate both GST and PST on that item. vi) GST/HST%, PST% - the amount of GST and PST that will be charged for the specific Tax Code. vii) View click here to see the setup details for the selected Tax Code. From here you will be able to edit or delete Tax Codes. viii) Status shows the current status for the selected Tax Code. The green arrow indicates the Tax Code is active. To make the Tax Code inactive click on the green arrow. In the Inactive Tax Codes List, you can make a Tax Code active again by clicking on the red status button for that Tax Code. b) Add Tax Codes To add a new Tax Code, select Add New Tax Codes from the Tax Codes List. Enter the requested information: i) Tax Code enter a single alpha or numeric character to serve as the tax code. ii) Description enter a short description of the components of the tax code. iii) GST/HST Percentage enter the current GST/HST rate your business is required to charge. iv) PST Percentage enter the PST rate your business is required to charge in your province. v) Calculate PST on GST if your province calculates PST on top of GST select Yes, otherwise leave as No. vi) Active the default is Yes so no changes are required. 23

26 Select Save to create your Tax Code. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Tax Codes To change details of a Tax Code, or to delete a Tax Code: i) Select View for that Tax Code from the Tax Codes List to go to a non-editable screen showing details of the selected Tax Code. ii) iii) iv) To delete a Tax Code, select Delete. To make changes to a Tax Code, select Edit from this screen to go to an editable screen. Make changes to the Tax Code information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Tax Codes to return to the Tax Codes List. 24

27 SETTING UP YOUR PAYROLL In this section we will be discussing how to setup your payroll information in Easybooks. Setting up your payroll details now will allow you to generate payroll cheques quickly without having to input employee information during each pay period. To pay your employees accurately you first need to setup your Payroll Items and complete an Employee Information form for each employee. 1) Payroll Items (Lists Payroll Payroll Items) From Lists on the menu bar, select Payroll then Payroll Items. This is your Payroll Items List. Each type of income you pay to your employees or each type of deduction from their pay is setup in Easybooks as a Payroll Item. For example, if you pay your employees Salary you would setup a Payroll Item called Salary. Payroll Items capture all of the required accounting and tax information for the particular item such that you do not need to worry about the details of the accounting entries when you are running your payroll. This ensures that your payroll is always calculated correctly and the accounting entries are accurately recorded. If you requested Easybooks to setup a sample Chart of Accounts we would have also setup for you a list of standard payroll items. If you did not request a Chart of Accounts to be setup, this screen will only show the Easybooks system payroll items Federal and Provincial Income Taxes. a) Payroll Items List Overview i) Active/Inactive/All this allows you to switch between active Payroll Items and inactive Payroll Items. You may choose to make a Payroll Item inactive if you no longer use that Payroll Item. To see all Payroll Items click All. ii) iii) iv) vi) Add New Payroll Item - click here to add new Payroll Items. Print you can print your Payroll Items List by clicking on Print. Payroll Item Name this is the Payroll Item that you will be selecting to setup your employees for payroll and on pay cheques. Keep this name as short as possible as shown in the sample Payroll Items List above. Type or more fully Payroll Item Type, is used to categorize the Payroll Item either as income or deduction and to define the taxation that applies to that type of income or deduction. Easybooks uses 12 Payroll Item Types. Select one of the following when adding Payroll Items: (a) Salaried Earnings select when setting up payroll items for salaried earnings. (b) Hourly Earnings select when setting up payroll items for hourly earnings. (c) Commission select when setting up payroll items to pay employment commissions. (d) Taxable Benefit select when setting up payroll items to add taxable benefits to employees pay, such as life insurance premiums, company RRSP contributions, etc. (e) Vacation Pay select when setting up payroll items to pay vacation pay to your employees. Some companies pay employees a percentage of their wages in lieu of vacation time off. (f) Non-taxable Receipt select when setting up payroll items to pay non-taxable amounts to your employees, such as, mileage allowance, certain cash awards, etc. 25

28 (g) Deduction from Earnings select when setting up payroll items to deduct amounts from your employees pay where such amounts are tax-deductible against their income. For example, Group RRSP contributions, pension contributions, union dues, etc. (h) Other Deduction - select when setting up payroll items to deduct amounts from your employees pay where such amounts are not tax-deductible against their income. For example, long-term disability (LTD) premiums, repayment of employee loans, etc. (i) CPP select when setting up payroll items to deduct Canada Pension Plan contributions from your employees pay. (j) EI - select when setting up payroll items to deduct Employment Insurance premiums from your employees pay. (k) Federal Income Taxes & Provincial Income Taxes these are system types and as such new payroll items using these types cannot be added. Easybooks will preload the income tax types that are required by you for payroll processing. vii) viii) View click here to see the setup details for the selected Payroll Item. From here you will be able to edit or delete Payroll Items. Status shows the current status for the selected Payroll Item. The green arrow indicates the Payroll Item is active. To make the Payroll Item inactive click on the green arrow. In the Inactive Payroll Items List, you can make a Payroll Item active again by clicking on the red status button for that Payroll Item. b) Add Payroll Items The payroll items preloaded by Easybooks should be sufficient to process your payroll. However, in some situations you may need to add additional payroll items for situations that are unique to your business. In this section we will review the setup of payroll items using the various payroll item types discussed above. If you are adding new payroll items we recommend that you ask your accountant to review the item information you add. To add a new Payroll Item, select Add New Payroll Item from the Payroll Items List. i) Salaried Earnings To setup a payroll item for Salaried Earnings enter the requested information: (a) Payroll Item Type select Salaried Earnings from the drop-down list. (b) Payroll Item Name enter a Payroll Item name for this type of salary, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Calculate based on select Flat Amount as salaries are generally paid as a flat amount. (e) Expense Account select a ledger account to record the salary expense. (f) Taxes affected by this item the default is set for both CPP and EI to be checked. Uncheck if not applicable to this payroll item. 26

29 (g) Report on T4, T4A select which T-slip to report the payment on and the appropriate box to use. (h) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. ii) Hourly Earnings To setup a payroll item for Hourly Earnings enter the requested information: (a) Payroll Item Type select Hourly Earnings from the drop-down list. (b) Payroll Item Name enter a Payroll Item name for this type of wage, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Calculate based on select Hours/Quantity Amount and select the radio button $. This sets your Hourly Earnings to pay based on number of hours worked times a dollar rate per hour. If you have a standard hourly rate you use to pay your employees enter it in the Default Rate box. When you setup new hourly-pay employees this rate will automatically appear on the Employee Information form. (e) Expense Account select a ledger account to record the hourly earnings expense. (f) Taxes affected by this item the default is set for both CPP and EI to be checked. Uncheck if not applicable to this payroll item. (g) Report on T4, T4A select which T-slip to report the payment on and the appropriate box to use. (h) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. 27

30 iii) Commission To setup a payroll item for Commission enter the requested information: (a) Payroll Item Type select Commission from the drop-down list. (b) Payroll Item Name enter a Payroll Item name to describe the type of commission you are paying, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. Ensure that this name describes your commission payment fully, e.g., Commissions flat amount, Commissions dollar rate, Commissions - % rate. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Calculate based on select Hours/Quantity Amount and select the radio button $ if you pay commissions based on a unit dollar amount, or % if you pay commissions based on a percentage. If you have a standard commissions rate you use to pay your employees enter it in the Default Rate box. When you setup new commission employees this rate will automatically appear on the Employee Information form. (e) Expense Account select a ledger account to record the commission expense. (f) Taxes affected by this item the default is set for both CPP and EI to be checked. Uncheck if not applicable to this payroll item. (g) Report on T4, T4A select which T-slip to report the payment on and the appropriate box to use. (h) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. iv) Taxable Benefit To setup a payroll item for Taxable Benefit enter the requested information: (a) Payroll Item Type select Taxable Benefit from the drop-down list. 28

31 (b) Payroll Item Name enter a Payroll Item name for this Taxable Benefit, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Calculate based on Generally, you would select Flat Amount for Taxable Benefits. If you select Hours/Quantity Amount, then select the radio button $ if you calculate Taxable Benefits based on a unit dollar amount, or % if you calculate Taxable Benefits based on a percentage. If you have a standard Taxable Benefits rate you use to calculate Taxable Benefits for your employees enter it in the Default Rate box. When you setup this taxable benefit for employees this rate will automatically appear on the Employee Information form. (e) Expense Account select a ledger account to record the commission expense. (f) Taxes affected by this item the default is set for both CPP and EI to be checked. Uncheck if not applicable to this payroll item. (g) Report on T4 select the appropriate box to use. (h) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. v) Vacation Pay To setup a payroll item for Vacation Pay enter the requested information: (a) Payroll Item Type select Vacation Pay from the drop-down list. (b) Payroll Item Name enter a Payroll Item name to describe the type of Vacation Pay you are paying, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Expense Account select a ledger account to record the Vacation Pay expense. (e) Taxes affected by this item the default is set for both CPP and EI to be checked. Uncheck if not applicable to this payroll item. (f) Report on T4 select the appropriate box to use. (g) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. 29

32 vi) Non-taxable Receipt To setup a payroll item for a Non-taxable Receipt enter the requested information: (a) Payroll Item Type select Non-taxable Receipt from the drop-down list. (b) Payroll Item Name enter a Payroll Item name for this Non-taxable Receipt, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Calculate based on Generally, you would select Flat Amount for Non-taxable Receipt. If you select Hours/Quantity Amount, then select the radio button $ if you calculate Non-taxable Receipt based on a unit dollar amount, or % if you calculate Non-taxable Receipt based on a percentage. If you have a standard Nontaxable Receipt rate you use, enter it in the Default Rate box. When you setup this Non-taxable Receipt for employees this rate will automatically appear on the Employee Information form. (e) Account select a ledger account to record the payment. (f) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. vii) Deduction from Earnings To setup a payroll item for Deduction from Earnings enter the requested information: (a) Payroll Item Type select Deduction from Earnings from the drop-down list. (b) Payroll Item Name enter a Payroll Item name to describe this Deduction from Earnings you are setting up, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Liability Account select a ledger account to record the Deduction from Earnings. (e) Active the default is Yes so no changes are required. 30

33 Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. viii) Other Deduction To setup a payroll item for Other Deduction enter the requested information: (a) Payroll Item Type select Other Deduction from the drop-down list. (b) Payroll Item Name enter a Payroll Item name to describe this Other Deduction you are setting up, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Liability Account select a ledger account to record the Other Deduction. (e) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. ix) CPP Canada Pension Plan Deduction To setup a payroll item for CPP enter the requested information: (a) Payroll Item Type select CPP from the drop-down list. (b) Payroll Item Name enter a Payroll Item name to describe the type of CPP you are setting up, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Expense Account select a ledger account to record the employer (ER) CPP expense. (e) Liability Account select a ledger account to record the employee (EE) CPP Payable. (f) Liability Account select a ledger account to record the employer (ER) CPP Payable. (g) Report on T4 select the appropriate box to use. 31

34 (h) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. x) EI Employment Insurance Deduction To setup a payroll item for EI enter the requested information: (a) Payroll Item Type select EI from the drop-down list. (b) Payroll Item Name enter a Payroll Item name to describe the type of EI you are setting up, recommended maximum of 15 alpha/numeric characters. Keep this name as short as possible otherwise it will not be displayed fully on the screen for pay cheques. (c) Pay Slip Description enter a short description to appear on printed pay slips. (d) Expense Account select a ledger account to record the employer (ER) EI expense. (e) Liability Account select a ledger account to record the employee (EE) EI Payable. (f) Liability Account select a ledger account to record the employer (ER) EI Payable. (g) Report on T4, T4A select which T-slip to report the deduction on and the appropriate box to use. (h) Active the default is Yes so no changes are required. Select Save to create your Payroll Item. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Payroll Items To change details of a Payroll Item, or to delete a Payroll Item: i) Select View for that Payroll Item from the Item List to go to a non-editable screen showing details of the selected Item. 32

35 ii) iii) iv) To delete an Item, select Delete. To make changes to an Item, select Edit from this screen to go to an editable screen. Make changes to the Item information and select Save to update your changes, or Cancel to discard your changes or to close the form. After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Payroll Item List to return to the Payroll Items List. 2) Employee Information (Lists Payroll Employee Information) From Lists on the menu bar, select Payroll then Employee Information. This is your Employee List. Employees refer to the individuals that work for you and from whose income you are required by law to withhold payroll taxes to remit to the government. Independent contractors are not employees and should be setup as vendors. a) Employee List Overview i) Active/Inactive/All this allows you to switch between active Employees and inactive Employees. You may choose to make an Employee inactive if you no longer hire that Employee. To see all Employees click All. ii) Add New Employees - click here to add new Employees. iii) Print you can print your Employee List by clicking on Print. iv) Employee Name this is the Employee Name that you will be selecting on your pay cheques to record salaries and wages paid. v) SIN Number shows the employee s social insurance number. vi) vii) View click here to see the setup details for the selected Employee. From here you will be able to edit or delete Employees. Status shows the current status for the selected Employee. The green arrow indicates the Employee is active. To make the Employee inactive click on the green arrow. In the Inactive Employee List, you can make an Employee active again by clicking on the red status button for that Employee. 33

36 b) Add New Employee To add a new Employee, select Add New Employee from the Employee List. Enter the requested information. Unless otherwise indicated all information must be entered for your payroll to be calculated correctly. i) Name enter the Employee name as indicated on the form. ii) iii) Print on Cheque As enter the Employee name, as you would like it to appear on printed pay cheques. Name & Address enter the Employee name and home address. This information will be inserted into your pay cheques when this Employee is selected. 34

37 iv) Province enter the province of employment v) /Phone enter the employee home if available and home phone number. This information is optional. vi) vii) viii) ix) SIN enter the employee 9 digit social insurance number. Employee No. enter the employee number if used. This information is optional. Date of Birth enter the employee s date of birth in the date format mm/dd/yyyy. Date Hired enter the employee s date of hire in the date format mm/dd/yyyy. x) Date Released enter the date employment was terminated. xi) xii) xiii) xiv) Active the default is Yes so no changes are required. Pay Frequency select a pay frequency from the drop-down list. Vacation Pay if this employee is paid vacation pay with each pay cheque select vacation pay from the drop-down list. Earnings/Receipts select the items from the drop-down list that applies to this employee: Items Rate Std Hours/Qty Vac n Pay Class Salaried Employees Enter the flat amount to pay this employee for each pay. This is optional and can be entered at the time you are creating the pay cheque. Enter the hours this employee is expected to work each pay period. This number does not affect the pay calculation but is used to track the employee s hours for EI reporting. This is optional and can be entered at the time you are creating the pay cheque. This would generally not be checked as salaried employees are paid vacation when taken. However, you can check this box if you would like to pay vacation pay with each pay cheque. This is optional and can be entered at the time you are creating the pay cheque. If being used, enter the Class for this employee from the drop-down list. This is optional and can be entered at the time you are creating the pay cheque. Hourly Employees Enter the hourly rate to pay this employee each pay. This is optional and can be entered at the time you are creating the pay cheque. Enter the hours this employee is expected to work each pay period. This number will be used in the pay calculation and is also used to track the employee s hours for EI reporting. This is optional and can be entered at the time you are creating the pay cheque. Check this box if you would like to pay vacation pay with each pay cheque. This is optional and can be entered at the time you are creating the pay cheque. If being used, enter the Class for this employee from the drop-down list. This is optional and can be entered at the time you are creating the pay cheque. Commissions Depending on how you have set up this payroll item, enter either the flat amount of commissions to be paid each pay if the $ is showing, the unit dollar amount of commission to be paid if the $ is showing, or the commission percentage rate if % is showing. This is optional and can be entered at the time you are creating the pay cheque. If applicable, enter the Quantity on which the commission will be calculated. This amount will be multiplied by the commission rate to pay the employee the commission earned. This is optional and can be entered at the time you are creating the pay cheque. Check this box if the employee earns vacation pay on commissions. This is optional and can be entered at the time you are creating the pay cheque. If being used, enter the Class for this employee from the drop-down list. This is optional and can be entered at the time you are creating the pay cheque. Taxable Benefits Depending on how you have set up this payroll item, enter either the flat amount of taxable benefit for each pay if the $ is showing, the unit dollar amount if the $ is showing, or the percentage rate if % is showing. This is optional and can be entered at the time you are creating the pay cheque. If applicable, enter the Quantity on which the taxable benefit will be calculated. This amount will be multiplied by the benefit rate to add the amount to the employee s pay. This is optional and can be entered at the time you are creating the pay cheque. Check this box if the employee earns vacation pay on taxable benefits. This is optional and can be entered at the time you are creating the pay cheque. If being used, enter the Class for this employee from the drop-down list. This is optional and can be entered at the time you are creating the pay cheque. 35

38 Items Rate Std Hours/Qty Vac n Pay Class Non-taxable Receipts Depending on how you have set up this payroll item, enter either the flat amount to be paid each pay if the $ is showing, the unit dollar amount if the $ is showing, or the percentage rate if % is showing. This is optional and can be entered at the time you are creating the pay cheque. If applicable, enter the Quantity on which the payment will be calculated. This amount will be multiplied by the non-taxable rate to add the amount to the employee s pay. This is optional and can be entered at the time you are creating the pay cheque. N/A If being used, enter the Class for this employee from the drop-down list. This is optional and can be entered at the time you are creating the pay cheque. xv) xvi) xvii) xviii) xix) xx) xxi) xxii) xxiii) Deductions select all of the deductions items that apply to this employee from the drop-down list and enter the amount to deduct each pay period. This is optional and can be entered at the time you are creating the pay cheque. Tax Table select the tax table based on the province that the employee resides in. Federal Income Taxes select if this employee has to pay federal income taxes. Federal TD1 this shows the basic federal tax credit that the employee is entitled to. Additional Federal Tax Credits enter the total of any additional tax credits from the employee s federal TD1 form. Provincial Income Taxes select if this employee has to pay provincial income taxes. Provincial TD1 this shows the basic provincial tax credit that the employee is entitled to. Additional Provincial Tax Credits enter the total of any additional tax credits from the employee s provincial TD1 form. Additional Taxes Per Pay enter any additional taxes the employee would like to have deducted. This field is also used to deduct the Ontario Health Premium from the employee's salary. Effective July 1, 2004 Ontario employees earning greater than $20,000 per year will have deducted from their pay the new Ontario Health Premium. If you are using the Easybooks payroll module this new deduction is treated as additional tax. The following table details the salary ranges and the premium to be deducted from the employee's salary. Only half of the premium is required to be deducted for Taxable Income Premium Up to $20,000 $Nil $20,000 - $25,000 6% of income over $20,000 $25,000 - $36,000 $300 $36,000 - $38,500 $300 plus 6% of income over $36,000 $38,500 - $48,000 $450 $48,000 - $48,600 $450 plus 25% of income over $48,000 $48,600 - $72,000 $600 $72,000 - $72,600 $600 plus 25% of income over $72,000 $72,600 - $200,000 $750 > $200,000 $900 To adjust your employee's pay for the Ontario Health Premium follow the steps below (Employees earning greater than $20,000 per year): 1. Click on the check box for Additional Taxes Per Pay 2. Based on the employee's expected annual taxable income select/calculate the annual premium from the table above and then divide this annual amount by the number of pay periods in the current calendar year. Enter this amount in the Additional Taxes Per Pay box. 36

39 Example: If the employee's estimated annual salary is $30,000 then the annual premium is $300. If the employee is paid weekly and there are 52 pay periods fin the year then the Ontario Health Premium is ($300 divided by 52) amounting to $5.77 per weekly pay period. xxiv) xxv) CPP/EI select the CPP and EI applicable to this employee from the drop-down list. Generally, you would only have one item in this list unless your payroll was more complex. CPP/EI factor the Easybooks default of 100% and 140% should only be changed if your company is subjected to a different rate. Select Save to create your Employee. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. c) Edit/Delete Employees To change details of an Employee, or to delete an Employee: i) Select View for that Employee from the Employee List to go to a non-editable screen showing details of the selected Employee. ii) iii) iv) To delete an Employee, select Delete. To make changes to an Employee, select Edit from this screen to go to an editable screen. Make changes to the Employee information and select Save to update your changes, or Cancel to discard your changes or to close the form. v) After saving your changes you will be returned to the non-editable screen shown above. Review the information you have entered and make corrections if required. Close the screen by clicking on the "X" at the top right of the screen or select Employee List to return to the Employee List. 37

40 ENTERING TRANSACTIONS & PRINTING FORMS In this section we will be discussing how to enter transactions into Easybooks and print forms such as invoices and cheques. The data entry screens have been carefully designed to look like standard business forms and to make the data entry intuitive. Don t hesitate to guess at what should be entered into a particular field. Easybooks allows you to correct or delete your transaction at any time. If you have spent some time completing the tasks on the Getting Started Checklist you will find data entry much faster. You can also add ledger accounts, items, customers, vendors, classes, terms, etc. directly from the data entry screens. However, Payroll must be setup under the List menu. 1) Selling to Customers If you are selling to a customer on credit you will (1) issue an invoice to the customer, (2) sometime later receive payment of that invoice and then (3) eventually deposit the payment received. If you are selling to a customer and the customer pays you upon delivery of the goods or service you will (1) issue a cash sales invoice to the customer and (2) eventually deposit the payment received. If you receive cash from your customer and choose to hold back some of the cash in the till, Easybooks will also help you to account for that. In this section we will show you how to account for the transactions you will enter into as part of your selling activities. a) Create Invoice (Enter Transactions Sales & Receipts Create Invoice) From Enter Transactions on the menu bar, select Sales & Receipts then Create Invoice. This is the screen you will use to create invoices for customers that you sell to on credit terms. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Customer if you have already setup your Customer List (Lists Customers) your customer names will appear in the drop-down list. Select a customer from the drop-down list. If the customer is not in the list, select Add New to add a new customer. The Customer name and address information will automatically be inserted into the invoice form. ii) Invoice Class if your company is setup to use Class this drop-down list will appear on the invoice screen. If you have already setup your Class List (Lists Other Classes) your Classes will appear in the drop-down list. Select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. 38

41 iii) The Class at the top of the invoice is a Global Class and will apply to the entire invoice. If you wish to be more specific in your class allocation select a class for each Item in the lower section of the invoice. If you will be selecting Class from the lower section of the invoice, or you do not wish to use Class, leave this field blank. Template Name if you have already setup a default Invoice Template (Lists Form Templates Invoice) this will automatically be pre-selected in the drop-down list. If you did not setup a default invoice template Easybooks will load a default invoice template for you to use. If you would like to use a different invoice template select another one from the drop-down list. If you wish to add a new template or change an existing template go to Lists Form Templates Invoice. iv) Invoice Number Easybooks remembers the last invoice number used and will increment the number by 1. You can accept this invoice number or enter another invoice number. v) Billing Date enter the billing date in mm/dd/yyyy format or select a date from the calendar. vi) vii) viii) Billing Address/Shipping Address if you make any changes to the billing and/or shipping address, Easybooks will automatically save the changes for you so that the revised information is available for use the next time. Terms if you have already setup your Term List (Lists Other Terms) your Terms will appear in the drop-down list. Select a term from the drop-down list. If the term you wish to use is not in the list, select Add New to add a new term. If you do not wish to use Terms leave this field blank. Custom Fields enter the requested information in the custom fields or leave them blank. If you wish to make changes to your custom fields go to Lists Form Templates Invoice. ix) Item if you have already setup your Item List (Lists Items) your Items will appear in the drop-down list. Select an item from the drop-down list. If the item you wish to use is not in the list, select Add New to add a new item. The details you have already setup for the selected item will automatically be inserted into the invoice. Notice that the invoice automatically recalculates as you select new items or make changes. Continue selecting items you wish to bill this customer for. x) Qty enter quantity to be billed. xi) xii) xiii) xiv) xv) xvi) xvii) xviii) xix) xx) xxi) xxii) Item Class - if your company is setup to use Class this column will appear on the invoice screen. If you have already setup your Class List (Lists Other Classes) your Classes will appear in the drop-down list. Select an item class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. Tax if you wish to change the tax code for this item, select a tax code from the drop down list. Amount Received if you previously received a deposit or retainer from your customer enter it here. This amount will reduce the Balance Due by the customer. Customer Message - if you have already setup your Customer Messages List (Lists Other Customer Messages) your Customer Messages will appear in the drop-down list. Select a customer message from the dropdown list. If the customer message you wish to use is not in the list, select Add New to add a new customer message. If you do not wish to use Customer Message leave this field blank. Memo enter a memo description for your internal use. The memo field will not show on the printed invoice. If you do not wish to use Memo leave this field blank. Trans Journal if you wish to see the debits and credits the invoice will create in your accounting records click on Trans Journal. To Be Printed select this box to put your invoice in a Print Forms queue for later printing. You will then be able to print your invoices as a batch (File Print Forms Invoices). Items Per Page this number is preset by Easybooks to ensure that lengthy invoices with multiple pages break properly from page to page during printing. You may need to reduce the Items Per Page if during print preview you notice that your items are not breaking to the next invoice page properly. Alternatively, if you have a lot of blank space on page 1 of your invoice before it breaks to the next page you can increase the number for Items Per Page to a larger number. You know that your invoice is breaking correctly to the next page if the Bill To box shows on each page of the invoice. Post saves the current invoice and returns a blank invoice screen to create another invoice. If To Be Printed is selected a copy of the invoice will be placed in the Print Forms Queue for later printing. Cancel closes the screen without saving the invoice. Post & Print saves the invoice and generates a print preview screen of the invoice. From the print preview you can print your invoice by selecting Print. If your invoice has multiple pages and the invoice does not break properly to the next page you may need to reduce the number of items you are printing on a single invoice page. Clear clears the current information on the screen and returns a blank invoice screen. 39

42 b) Receive Customer Payments (Enter Transactions Sales & Receipts Receive Customer Payments) From Enter Transactions on the menu bar, select Sales & Receipts then Receive Customer Payments. This is the screen you will use to receive payments from customers when they pay the invoices you have issued to them. This screen is also used to process deposits or retainers received from customers. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Customer if you have already setup your Customer List (Lists Customers) your customer names will appear in the drop-down list. Select a customer from the drop-down list. If the customer is not in the list, select Add New to add a new customer. Once the customer is selected all outstanding invoices will appear on the lower part of the screen. ii) Deposit To all customer payments are placed in a holding account Funds to be deposited. This account is cleared out when you make a Bank Deposit. See Banking section. iii) Date - enter the billing date in mm/dd/yyyy format or select a date from the calendar. iv) Customer Cheque Number this is an optional field. Enter the customer cheque number or leave this field blank. v) Payment Method this is an optional field. Select a payment method from the drop-down list or leave this field blank vi) Amount Received enter the amount received from your customer. Easybooks will automatically allocate the amount receive to the unpaid invoices in the lower section of the screen. You can change the Easybooks allocation by entering your own allocation of the payment received or by choosing not to allocate the payment. Any part of a payment not allocated to an unpaid invoice will be carried forward as an unallocated credit. vii) Memo this is an optional field. Enter a description or leave this field blank. viii) Current Credits shows payments previously received and not allocated to invoices. ix) Total to Allocate this is the sum of the current Amount Received plus Current Credits. This is the total amount now available to allocate to unpaid invoices. x) Unallocated Amount this equals current Amount Received plus Current Credits minus amounts allocated to the unpaid invoices in the lower section of the screen. Unallocated Amount is carried forward and will appear as Current Credits for this customer. 40

43 c) Cash Sales (Enter Transactions Sales & Receipts Cash Sales) From Enter Transactions on the menu bar, select Sales & Receipts then Cash Sales. This is the screen you will use to process sales to those customers that pay you upon the delivery of the goods or services. This could be C.O.D customers, cash register sales, credit card sales or direct debit sales. If you are using a point-of-sale terminal consider batching your credit card sales and direct debit sales and posting them in such a way to match the total direct deposit amount the card issuer is making to your bank account. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Customer if you have already setup your Customer List (Lists Customers) your customer names will appear in the drop-down list. Select a customer from the drop-down list. If the customer is not in the list, select Add New to add a new customer. The Customer name and address information will automatically be inserted into the invoice form. ii) Invoice Class if your company is setup to use Class this drop-down list will appear on the invoice screen. If you have already setup your Class List (Lists Other Classes) your Classes will appear in the drop-down list. Select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. The Class at the top of the invoice is a Global Class and will apply to the entire invoice. If you wish to be more specific in your class allocation you can select a class for each Item on the invoice. If you will be selecting Class from the body of the invoice or you do not wish to use Class leave this field blank. iii) Template Name if you have already setup a default Cash Sales Template (Lists Form Templates Cash Sales) this will automatically be pre-selected in the drop-down list. If you did not setup a default Cash Sales template Easybooks will load a default Cash Sales template for you to use. If you would like to use a different Cash Sales template select another one from the drop-down list. If you wish to add a new template or change an existing template go to Lists Form Templates Cash Sales. iv) Cash Sale Number Easybooks remembers the last Cash Sales number used and will increment the number by 1. You can accept this Cash Sales number or enter another number. v) Cash Sales Date enter the Cash Sale date in mm/dd/yyyy format or select a date from the calendar. vi) vii) viii) Billing Address/Shipping Address if you make any changes to the billing and/or shipping address, Easybooks will automatically save the changes for you so that the revised information is available for use the next time. Payment if you have already setup your Payment Methods List (Lists Other Payment Methods) your Payment Methods will appear in the drop-down list. Select a payment method from the drop-down list. If the payment method you wish to use is not in the list, select Add New to add a new payment method. If you do not wish to use Payment Methods leave this field blank. Custom Fields enter the requested information in the custom fields or leave them blank. If you wish to make changes to your custom fields go to Lists Form Templates Cash Sales. 41

44 ix) Item if you have already setup your Item List (Lists Items) your Items will appear in the drop-down list. Select an item from the drop-down list. If the item you wish to use is not in the list, select Add New to add a new item. The details you have already setup for the selected item will automatically be inserted into the invoice. Notice that the invoice automatically recalculates as you select new items or make changes. Continue selecting items you wish to bill this customer for. x) Item Class - if your company is setup to use Class this column will appear on the invoice screen. If you have already setup your Class List (Lists Other Classes) your Classes will appear in the drop-down list. Select an item class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. xi) Tax if you wish to change the tax code for this item, select a tax code from the drop down list. xii) xiii) xiv) xv) xvi) xvii) xviii) xix) xx) xxi) Amount Received enter any payments you have received from the customer. This amount will reduce the Balance Due by the customer. Customer Message - if you have already setup your Customer Messages List (Lists Other Customer Messages) your Customer Messages will appear in the drop-down list. Select a customer message from the dropdown list. If the customer message you wish to use is not in the list, select Add New to add a new customer message. If you do not wish to use Customer Message leave this field blank. Memo enter a memo description for your internal use. The memo field will not show on the printed invoice. If you do not wish to use Memo leave this field blank. Trans Journal if you wish to see the debits and credits the invoice will create in your accounting records click on Trans Journal. To Be Printed select this box to put your invoice in a Print Forms queue for later printing. You will then be able to print your invoices as a batch (File Print Forms Cash Sales). Items Per Page this number is preset by Easybooks to ensure that lengthy invoices with multiple pages break properly from page to page during printing. You may need to reduce the Items Per Page if during print preview you notice that your items are not breaking to the next invoice page properly. Alternatively, if you have a lot of blank space on page 1 of your invoice before it breaks to the next page you can increase the number for Items Per Page to a larger number. You know that your invoice is breaking correctly to the next page if the Bill To box shows on each page of the invoice. Post saves the current invoice and returns a blank invoice screen to create another invoice. If To Be Printed is selected a copy of the invoice will be placed in the Print Forms Queue for later printing. Cancel closes the screen without saving the invoice. Post & Print saves the invoice and generates a print preview screen of the invoice. From the print preview you can print your invoice by selecting Print. If your invoice has multiple pages and the invoice does not break properly to the next page you may need to reduce the number of items you are printing on a single invoice page. Clear clears the current information on the screen and returns a blank invoice screen. 42

45 d) Issue an Invoice Credit Small businesses rarely are required to issue a credit note. Generally, you can recall the posted transaction, make the appropriate adjustment, reprint and send your customer a revised invoice or cash sales receipt. However, in the event that you need to correct an invoice you can handle the adjustment by issuing a negative invoice as follows: i) In Forms Template (Lists Form Templates Invoice), create a new Invoice Template and name it Credit or some other preferred name. See Chapter 4 - Setting Up Your Lists/Form Templates for further details on setting up form templates. ii) iii) From Enter Transactions on the menu bar, select Sales & Receipts then Create Invoice. From the Template Name list select the template called Credit Proceed to enter details of the credit being provided to your customer by entering the adjustment as a negative amount on the Invoice Credit. 43

46 iv) Post and Print the Invoice Credit 2) Non-Customer Receipts Non-customer receipts relate to the recording of monies your business will receive from time to time that does not relate to the sale of goods or services. This would include shareholders loans, bank loans, share capital contributions, refunds from vendors, refunds from employees, etc. a) Receive Other Payments (Enter Transactions Sales & Receipts Receive Other Payments) From Enter Transactions on the menu bar, select Sales & Receipts then Receive Other Payments. This is the screen you will use to receive non-customer payments. 44

47 Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Received From if you have already setup your Vendor List (Lists Vendors) and your Employee List (List -> Payroll -> Employee Information) these names will appear in the drop-down list. Select a payor from the drop-down list. If a vendor is not in the list, select Add New to add a new vendor. ii) Deposit To all payments received are placed in a holding account Funds to be deposited. This account is cleared out when you make a Bank Deposit. See Banking section. iii) Date - enter the billing date in mm/dd/yyyy format or select a date from the calendar. iv) Payor Cheque Number this is an optional field. Enter the payor s cheque number or leave this field blank. v) Payment Method this is an optional field. Select a payment method from the drop-down list or leave this field blank vi) Amount Received enter the amount received from your payor. vii) Allocate Payment To enter the ledger account you would like to allocate this payment to. viii) Memo this is an optional field. Enter a description or leave this field blank. ix) Class Select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. 3) Purchases & Payments In this section we will be discussing how to account for all bank and cash disbursements made by your business and how to use accounts payable tracking. a) Write Cheques (Enter Transactions Purchases & Payments Write Cheques) From Enter Transactions on the menu bar, select Purchases & Payments then Write Cheques. This is the screen you will use to process all bank disbursements: cheques, direct debits to your bank account, bank charges, etc. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. 45

48 i) Bank Account select a bank account you would like to use for this disbursement. The current bank balance is displayed on the cheque. ii) iii) Cheque Number Easybooks remembers the last Cheque number used and will increment the number by 1. You can accept this Cheque number or enter another number. Date enter the Cheque date in mm/dd/yyyy format or select a date from the calendar. You can backdate or postdate all transactions in Easybooks. iv) Pay To if you have already setup your Vendor List (Lists Vendors) your vendor names will appear in the dropdown list. Select a vendor from the drop-down list. The vendor s name and address information will automatically be inserted into the cheque form. If the vendor is not in the list, select Add New to add a new vendor. You can also select a customer name to make a payment to or an employee name to make a non-payroll payment to. v) Cheque Amount enter the payment amount. vi) vii) viii) Memo this is an optional field. Enter a description or leave this field blank. This memo will show on the printed cheque. GST Paid enter the total GST paid as part of the cheque amount. This can be found at the bottom of the vendor s invoice. Amount to Allocate this is the net amount to be allocated to the ledger accounts and is equal to the total cheque amount minus GST Paid. When this amount is fully allocated it will become zero. Easybooks will not allow you to post a cheque unless this amount is zero. ix) Account enter the ledger account you would like to allocate this payment to. You may select as many ledger accounts as you wish from the drop-down list. x) Amount enter the amount that is to be allocated to the selected ledger account. xi) xii) xiii) xiv) xv) xvi) xvii) xviii) xix) Memo this is an optional field. Enter a description for the amount allocated to the selected ledger account or leave this field blank. Cust/Vendor if this payment is to be recovered from a customer select a customer name from the drop-down list. If the customer is not in the list, select Add New to add a new customer. If you do not wish to allocate this payment leave this field blank. Generally, you do not need to select a vendor from the drop-down list as the Pay To field already shows the vendor name. In some situations, however, Easybooks will require you to select a vendor from the drop-down list, e.g., you select Accounts Payable as a ledger account to allocate a payment to. The program will prompt you when those situations arise. Class select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. Trans Journal if you wish to see the debits and credits the Cheque will create in your accounting records click on Trans Journal. To Be Printed select this box to put your Cheque in a Print Forms queue for later printing. You will then be able to print your cheques as a batch (File Print Forms Cheques). Post saves the current Cheque and returns a blank Cheque screen to enter another Cheque. If To Be Printed is selected a copy of the cheque will be placed in the Print Forms Queue for later printing. Cancel closes the screen without saving the Cheque. Post & Print saves the Cheque and generates a print preview screen of the Cheque. From the print preview you can print your Cheque by selecting Print. Clear clears the current information on the screen and returns a blank Cheque screen. 46

49 b) Cash Payments (Enter Transactions Purchases & Payments Write Cheques) From Enter Transactions on the menu bar, select Purchases & Payments then Cash Payments. This is the screen you will use to pay vendors when you are paying them in cash. For example, if you paid for purchases using the cash in your cash register you will use this screen to enter the transaction. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Paid From select a cash account you would like to use for this disbursement. The current cash account balance is displayed on the cash payment screen. ii) iii) Number Easybooks remembers the last Cash Payment number used and will increment the number by 1. You can accept this number or enter another number. Date enter the Cash Payment date in mm/dd/yyyy format or select a date from the calendar. You can backdate or post-date all transactions in Easybooks. iv) Pay To if you have already setup your Vendor List (Lists Vendors) your vendor names will appear in the dropdown list. Select a vendor from the drop-down list. If the vendor is not in the list, select Add New to add a new vendor. You can also select a customer name to make a payment to or an employee name to make a non-payroll payment to. v) Cash Amount enter the payment amount. vi) Memo this is an optional field. Enter a description or leave this field blank. vii) viii) GST Paid enter the total GST paid as part of this Cash Payment. This can be found at the bottom of the vendor s invoice. Amount to Allocate this is the net amount to be allocated to the ledger accounts and is equal to the total Cash Payment amount minus GST Paid. When this amount is fully allocated it will become zero. Easybooks will not allow you to post a Cash Payment unless this amount is zero. ix) Account enter the ledger account you would like to allocate this payment to. You may select as many ledger accounts as you wish from the drop-down list. x) Amount enter the amount that is to be allocated to the selected ledger account. xi) xii) xiii) Memo this is an optional field. Enter a description for the amount allocated to the selected ledger account or leave this field blank. Cust/Vendor if this payment is to be recovered from a customer select a customer name from the drop-down list. If the customer is not in the list, select Add New to add a new customer. If you do not wish to allocate this payment leave this field blank. Generally, you do not need to select a vendor from the drop-down list as the Pay To field already shows the vendor name. In some situations, however, Easybooks will require you to select a vendor from the drop-down list, e.g., you select Accounts Payable as a ledger account to allocate a payment to. The program will prompt you when those situations arise. Class select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. 47

50 xiv) xv) xvi) xvii) Trans Journal if you wish to see the debits and credits the Cash Payment will create in your accounting records click on Trans Journal. Post saves the current Cash Payment and returns a blank Cash Payment screen to enter another Cash Payment. Cancel closes the screen without saving the Cash Payment. Clear clears the current information on the screen and returns a blank Cash Payment screen. c) Accounts Payable Tracking If you only have a few bills to pay every month you should accumulate them in a folder and periodically use Write Cheque to pay these bills. Write Cheque is the most efficient way of paying bills as you save data entry time. However, if you have lots of bills with different due dates you can use Easybooks to track your accounts payable for you. This allows you to practice good cash management by only paying bills just a few days before they are due. To use Accounts Payable to track your vendor purchases you will use Enter Bills to enter your vendor purchases and Pay Bills to make payments for bills that have been recorded using the Enter Bills function. If a bill has not been entered using Enter Bills, use Write Cheque to pay that bill. i) Enter Bills (Enter Transactions Purchases & Payments Accounts Payable Enter Bills) From Enter Transactions on the menu bar, select Purchases & Payments, Accounts Payable then Enter Bills. This is the screen you will use to enter vendor purchases that you would like to track through the Easybooks Accounts Payable module Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. (a) Ref No. enter the vendor s bill number. (b) Bill Date enter the Bill date in mm/dd/yyyy format or select a date from the calendar. You can backdate or post-date all transactions in Easybooks. (c) Due Date enter the date due date on the bill. (d) Vendor if you have already setup your Vendor List (Lists Vendors) your vendor names will appear in the drop-down list. Select a vendor from the drop-down list. If the vendor is not in the list, select Add New to add a new vendor. (e) Amount enter the total Bill amount. (f) Memo this is an optional field. Enter a description or leave this field blank. (g) GST Paid enter the total GST as shown on the vendor s Bill. This can be found at the bottom of the vendor s bill. 48

51 (h) Amount to Allocate this is the net amount to be allocated to the ledger accounts and is equal to the total Bill amount minus GST Paid. When this amount is fully allocated it will become zero. Easybooks will not allow you to post a Bill unless this amount is zero. (i) Account enter the ledger account you would like to allocate this payment to. You may select as many ledger accounts as you wish from the drop-down list. (j) Amount enter the amount that is to be allocated to the selected ledger account. (k) Memo this is an optional field. Enter a description for the amount allocated to the selected ledger account or leave this field blank. (l) Cust/Vendor if this payment is to be recovered from a customer select a customer name from the drop-down list. If the customer is not in the list, select Add New to add a new customer. If you do not wish to allocate this payment leave this field blank. Generally, you do not need to select a vendor from the drop-down list as the Vendor field already shows the vendor name. In some situations, however, Easybooks will require you to select a vendor from the drop-down list, e.g., you select Accounts Payable as a ledger account to allocate a payment to. The program will prompt you when those situations arise. (m) Class select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. (n) Trans Journal if you wish to see the debits and credits the Bill will create in your accounting records click on Trans Journal. (o) Post saves the current Bill and returns a blank Enter Bills screen to enter another Bill. (p) Cancel closes the screen without saving the Bill. (q) Clear clears the current information on the screen and returns a blank Enter Bills screen. ii) Pay Bills (Enter Transactions Purchases & Payments Accounts Payable Enter Bills) From Enter Transactions on the menu bar, select Purchases & Payments, Accounts Payable then Pay Bills. This is the screen you will use to pay bills that have been recorded using the Enter Bills function. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. (a) Bank Account select a bank account you would like to use for this bill payment. The current bank balance is displayed on the Pay Bills screen. (b) Cheque Number Easybooks remembers the last cheque number used and will increment the number by 1. You can accept this cheque number or enter another number. (c) Date enter the bill payment cheque date in mm/dd/yyyy format or select a date from the calendar. You can backdate or post-date all transactions in Easybooks. 49

52 (d) Vendor select a vendor. The vendor s name and address information will automatically be inserted into the cheque form. Only vendors with outstanding accounts payable will show in the drop-down list. (e) Cheque Amount this amount will be calculated based on the bills you select from below. (f) Memo this is an optional field. Enter a description or leave this field blank. This memo will show on the printed cheque. (g) Select Bills To Pay from the lower part of the screen select the bills you would like to pay. If you are paying a partial amount change the Payment field to reflect the amount you are paying. As you select bills to pay the cheque amount will update. (h) Trans Journal if you wish to see the debits and credits the bill payment will create in your accounting records click on Trans Journal. (i) To Be Printed select this box to put your bill payment cheque in a Print Forms queue for later printing. You will then be able to print your cheques as a batch (File Print Forms Cheques). (j) Post saves the current bill payment cheque and returns a blank Pay Bills screen to pay another bill. If To Be Printed is selected a copy of the cheque will be placed in the Print Forms Queue for later printing. (k) Cancel closes the screen without saving the Cheque. (l) Post & Print saves the cheque and generates a print preview screen of the cheque. From the print preview you can print your cheque by selecting Print. (m) Clear clears the current information on the screen and returns a blank Pay Bills screen. 4) Banking In this section we will be discussing how to process cash transfers, make bank deposits and do your monthly bank reconciliation. a) Cash Transfers (Enter Transactions Banking Cash Transfers) From Enter Transactions on the menu bar, select Banking then Cash Transfers. This is the screen you will use to transfer cash from your cash register to your bank. You can also use this screen to process direct transfers between your bank accounts. However, a transfer between bank accounts is nothing more that a cheque being written on one bank account so you can use Write Cheques to also record that transaction. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Date enter the transfer date in mm/dd/yyyy format or select a date from the calendar. ii) Transfer From from the drop-down list, select the bank/cash account you are transferring from. iii) Transfer To from the drop-down list, select the bank/cash account you are transferring to. iv) Cash Transfer Number this is an optional field. Enter a number or leave this field blank. v) Amount enter the amount to transfer between accounts. vi) Memo this is an optional field. Enter a description or leave this field blank. vii) Trans Journal if you wish to see the debits and credits the Cash Transfer will create in your accounting records click on Trans Journal. 50

53 viii) ix) Post saves the current Cash Transfer and returns a blank Cash Transfer screen to process another Cash Transfer. Cancel closes the screen without saving the Cash Transfer. b) Bank Deposits (Enter Transactions Banking Bank Deposits) From Enter Transactions on the menu bar, select Banking then Bank Deposits. This is the screen you will use to transfer funds from the holding account Funds To Be Deposited to your bank account. Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Deposit To select the cash/bank account you would like to deposit to. ii) Date - enter the deposit date in mm/dd/yyyy format or select a date from the calendar. iii) Memo this is an optional field. Enter a description or leave this field blank. iv) Deposit Total the deposit total will be calculated based on the deposit items you select from below. v) Select Items To Deposit from the lower part of the screen select the items you would like to deposit. As you select items to deposit the Deposit Total will update. vi) Select All selects all of the items for deposit. vii) Clear All unselects items you selected for deposit. viii) Trans Journal if you wish to see the debits and credits the Bank Deposit will create in your accounting records click on Trans Journal. ix) Post saves the current Bank Deposit and returns a Bank Deposit screen to process another Bank Deposit. x) Cancel closes the screen without saving the Bank Deposit. 51

54 c) Bank Reconciliation (Enter Transactions Banking Bank Reconciliation) From Enter Transactions on the menu bar, select Banking then Bank Reconciliation. This is the screen you will use to do your monthly bank reconciliation. The bank reconciliation screen shows all of the bank deposits and bank disbursements you made for the current month plus any deposits and disbursements that were outstanding as at your last bank reconciliation. Reconciliation refers to the process of matching the items on your bank statement to the items recorded in your general ledger. Easybooks has made reconciling your bank a simple 6-step process for you, with the ability to drill-down from the bank reconciliation screen to make corrections as you go. i) Reconciliation Date key in the closing date shown on your bank statement. ii) iii) Account To Reconcile select the bank account you would like to reconcile. Your screen will now refresh to show only deposits and disbursement up to the reconciliation date for the chosen account. Service Charge/Interest Earned if you have not entered the service charges and/or interest earned that appears on your bank statement you can enter it now. Select an account from the drop-down list. The bank reconciliation process will generate entries to record these items. iv) Closing Bank Balance enter the closing bank balance from the bank statement. Note how this changes the Difference v) Match Items compare your bank statement to the items in the lower section of the Reconciliation screen. If an item from your bank statement matches an item on the Reconciliation screen, check the matching item on the screen. If there are posting errors you can drill-down from the Reconciliation screen to the transaction, correct the transaction and then come back to the Reconciliation screen. If there are items on your bank statement that you did not post in Easybooks, select Leave (your work will be saved), post the missing transactions and then re-enter the Bank Reconciliation screen. Re-enter your closing bank statement balance and continue reconciling. Continue checking the matched items until the reconciliation Difference is zero. At this point your bank account is reconciled to your general ledger. vi) Reconcile click Reconcile once your reconciliation Difference becomes zero. Easybooks will generate a Reconciliation Report. Print the Reconciliation Report for your records. Functions i) Select All selects all of the items and makes them matched items. ii) iii) iv) Clear All unselects all of the items and returns them to unmatched status. Leave saves the current items you have matched and closes the Reconciliation screen. When you return to the Reconciliation screen the items you previously matched will still be checked. Re-enter your closing bank statement balance and continue reconciling. Cancel unselects any items that you checked in the current session and closes the Reconciliation screen. 52

55 5) Payroll In this section we will be discussing how to pay employees. You must complete the setup steps in Chapter 3 Setting Up Payroll before paying your employees. a) Pay Employees (Enter Transactions Payroll Pay Employees) From Enter Transactions on the menu bar, select Payroll then Pay Employees. This is the screen you will use to pay employees for all amounts that are subject to payroll taxes and that are required to be reported on a T4 slip. Enter the requested information by selecting from the drop-down lists on the Pay Employees screen. You can complete a pay cheque in 7 easy steps which will take you less than 2 minutes per cheque. i) Bank Account select a bank account you would like to use for this payroll payment. The current bank balance is displayed on the cheque. ii) Employee select an employee to pay. Easybooks retrieves the employee pay information that you have setup and loads it into the Pay Employees screen. The employee s net pay is instantly calculated. Pay Slip Summary iii) Pay Cheque Number Easybooks remembers the last cheque number used and will increment the number by 1. You can accept this cheque number or enter another number. iv) Cheque Date enter the Cheque date in mm/dd/yyyy format or select a date from the calendar. The cheque date determines the payroll tables that Easybooks will use in its pay calculations. Every time the cheque date is changed Easybooks will recalculates the payroll taxes using the appropriate tax tables. v) Payroll Date - enter the payroll end date in mm/dd/yyyy format or select a date from the calendar. vi) Pay Slip Summary review the details on the pay slip summary. If the current pay differs from the last pay ensure that you approved the changes. If there are no changes to make to the employee s pay you can Post & Print the Pay Cheque. vii) Post & Print Pay Cheque - saves the Pay Cheque and generates a print preview screen of the Pay Cheque. From the print preview you can print your Pay Cheque by selecting Print. 53 If changes are required to the employee s Pay Cheque you can click on one or more of the following tabs to make the changes. These changes will not affect the Employee Information form that you completed under the Lists menu. Earnings/Receipts Tab The information showing in this section automatically loads from the Employee Information form. In this section you can make changes or add to the amounts you are paying to your employees, whether such amounts relate to salaried

56 payments or reimbursement of expenses. Any changes you make while preparing payroll cheques will not change the information saved in the Employee Information form. Deductions Tab The information showing in this section automatically loads from the Employee Information form. In this section you can make changes or add to the deductions appearing on your employee s pay cheque. Any changes you make in this section will not change the information saved in the Employee Information form. Payroll Taxes Tab The information showing in this section automatically loads from the Employee Information form. In this section you can make changes or add to the tax deductions appearing on your employee s pay cheque. Any changes you make in this section will not change the information saved in the Employee Information form. You can also switch to a manual tax calculation for the employee where the payment is unusual such as a lump-sum bonus. In this situation, you will ignore the Easybooks tax calculations and enter your own tax calculations. viii) Trans Journal if you wish to see the debits and credits the Cheque will create in your accounting records click on Trans Journal. ix) To Be Printed select this box to put your Cheque in a Print Forms queue for later printing. You will then be able to print your cheques as a batch (File -> Print Forms -> Cheques). x) Post saves the current Cheque and returns a blank Cheque screen to enter another Cheque. If To Be Printed is selected a copy of the cheque will be placed in the Print Forms Queue for later printing. xi) Cancel closes the screen without saving the Cheque. xii) Clear clears the current information on the screen and returns a blank Cheque screen. b) Payroll Calculator (Enter Transactions Payroll Payroll Calculator) From Enter Transactions on the menu bar, select Payroll then Payroll Calculator. The Payroll Calculator does not generate any postings to your accounting records so you can use it to do a variety of what-if payroll calculations. Enter the requested information by selecting from the drop-down lists on the Payroll Calculator screen. The Calculator updates automatically as each field is updated. 54

57 i) Province select the province that the employee is resident in for tax purposes. This tells the calculator which tax tables to use. ii) Company Name if you would like your company name to print on the pay slip enter it here. iii) Payment Date enter the payment date. The payment date also determines which tax tables Easybooks will use. iv) Federal Tax Credits the basic federal credit is the default. Adjust this amount if you are entitled to more tax credits. v) Employee Name if you would like the employee s name to print on the pay slip enter it here. vi) Pay Frequency enter the pay frequency. The pay frequency also determines which tax tables Easybooks will use. vii) Provincial Tax Credits - the basic provincial credit is the default. Adjust this amount if you are entitled to more tax credits. viii) Earnings enter all taxable earnings the employee will receive ix) Deductions enter any additional tax deductions that the employee is permitted. x) Non-taxable Income enter all payments received by the employee that will not be taxed. xi) Other Deductions enter all deductions from the employee s pay that will not affect the tax calculation. xii) Net Pay net pay does not include taxable benefits and is equal to Total Earnings minus Taxable Benefits minus Total Deductions plus Total Non-taxable Income minus Total Other Deductions. xiii) Tax Remittance Summary shows the total source deductions payable for this pay. xiv) YTD Amounts Before This Pay for a more accurate pay calculation click to enter the YTD amounts from the last pay cheque your company issued to the employee. xv) Clear clears the current information on the screen and returns a blank Payroll Calculator screen. xvi) Close closes the Payroll Calculator screen. xvii) Print prints a pay slip for the employee and/or a tax remittance summary for the company. 6) Journal Entries (Enter Transactions Other Journal Entries) Journal entries should only be used to post transactions that cannot be posted through one of the regular data entry screens. If you find that you are constantly using Journal Entries then it is very likely that your Easybooks company file is not properly setup and you should consult with your accountant. From Enter Transactions on the menu bar, select Other then Journal Entries. The Journal Entry screen will be used to post year-end adjustments such as depreciation, etc. and will be primarily used by your accountant. 55 Enter the requested information by selecting from the drop-down lists on the screen or by typing the information directly in the field. If the List is already setup you can start typing the information you wish to select and Easybooks will auto fill the rest for you. i) Number Easybooks remembers the last Journal number used and will increment the number by 1. You can accept this number or enter another number.

58 ii) Date enter the Journal date in mm/dd/yyyy format or select a date from the calendar. You can backdate or postdate all transactions in Easybooks. iii) Memo this is an optional field. Enter a description or leave this field blank. iv) Account select a ledger account from the drop-down list. v) Debit /Credit Amount enter the debit/credit amount that is to be allocated to the selected ledger account. vi) Cust/Vendor if the amount is to be recovered from a customer select a customer name from the drop-down list. If the customer is not in the list, select Add New to add a new customer. If you do not wish to allocate this payment leave this field blank. Do the same if you wish to allocate an amount to a vendor. vii) Class select a class from the drop-down list. If the class you wish to use is not in the list, select Add New to add a new class. If you do not wish to use Class leave this field blank. viii) Post saves the current Journal and returns a blank Journal screen to enter another Journal Entry. ix) Cancel closes the screen without saving the Journal Entry. 7) Reprinting, Editing & Deleting Posted Transactions In this section we will be discussing how to reprint forms such as cheques and invoices, make changes to posted transactions and how to delete posted transactions. a) Finding Posted Transactions To reprint, change or delete posted transactions you must first find the transaction in your accounting records. Easybooks makes it easy to find posted transactions by giving you the tools to drill-down to the source documents from many different reports. For example, to find an invoice, you can go to the Customer List screen, select the History Report for that customer, locate the invoice on the History Report and drill down to the invoice. Alternatively, if you knew which G/L account the invoice was posted to you could select the Balance Sheet or Income Statement and drill down from there until you found the invoice. Or you could review one of the many Sales Reports, find the customer and drill down until you found the Invoice. However, the fastest way of finding posted transactions is using the Summary button. Using the Summary button Want to find a posted transaction quickly? Just go to the transaction screen you would normally use to enter the transaction you would like to find and click on the Summary Button. To Find: Go To: Click On: 1) An Invoice Create Invoices screen Invoice Summary 2) A Cash Sales Receipt Cash Sales screen Cash Sales Summary 3) A Customer Payment Receive Customer Payments screen Payment Summary 4) A Non-Customer Payment Receive Other Payments screen Payment Summary 5) A Cheque Write Cheques screen Cheque Summary 6) A Cash Payment Cash Payments screen Cash Payments Summary 7) A Vendor Bill processed through Accounts Payable 8) A Vendor Cheque paid through Accounts Payable Enter Bills screen Pay Bills screen Bill Summary Cheque Summary 9) A Cash Transfer Cash Transfers screen Cash Transfers Summary 10) A Bank Deposit Bank Deposits screen Deposit Summary 11) A Pay Cheque Pay Employees screen Pay Cheque Summary 12) A Journal Entry Journal Entries screen Journal Summary 56

59 For example, if you would like to find an invoice go to the Create Invoice screen and click on the Invoice Summary button, set the date range for the period you would like to search and click Submit. Click View to drill down to a non-editable Invoice Screen: b) Reprinting Posted Transactions To reprint a Posted Transaction: i) Find the Posted Transaction in your accounting records as described above. ii) Select Print from the screen if you would like to reprint a single transaction. iii) If you would like to reprint multiple transactions, check select to print as shown on the Invoice Summary. Your selected items will be place in the print queue and you can then print these items by selecting File -> Print Forms. c) Editing Posted Transactions To change details of a Posted Transaction: i) Find the Posted Transaction in your accounting records as described above. ii) Select Edit from the screen to go to an editable screen. iii) Make changes to the transaction and select Save to update your changes, or Cancel to discard your changes or to close the form. After saving your changes you will be returned to a non-editable screen as illustrated above. Review the changes you made for accuracy. 57

60 d) Deleting Posted Transactions To delete a Posted Transaction: i) Find the Posted Transaction in your accounting records as described above. ii) To delete a Posted Transaction, select Delete. TAX REPORTS A primary objective of Easybooks is to ensure that you and your accountant are provided with all of the necessary reports and accounting information to prepare the required tax compliance returns required by the government and to meet the government and business requirements relating to retention of business records. 1) Financial Reports (Tax Reports Financial) a) Balance Sheet shows your business assets, liabilities and the net equity (or net worth) of your business. b) Income Statement shows your business revenue, expenses and net income for the year. c) Trial Balance a listing of ledger accounts showing balances categorized by debit or credit. This report combines the amounts shown on the balance sheet and income statement into one report. d) General Ledger a listing of all ledger accounts showing the opening balance and all transactions that you have posted to that account during the report period. e) Journal Report each transaction you post create a journal entry in Easybooks. This report lists all of the journal entries you created over the report period. 2) Tax Remittance Reports (Tax Reports Tax Remittances) a) GST/HST Remittance this report provides the information to complete your GST/HST return. The line numbers refer to the numbers shown on the GST/HST return to make it easy to transcribe the information to the return. b) PST Remittance this report provides the information to complete your provincial sales tax return. c) Payroll Remittance this report shows the source deductions made from your employees pay and the total employee and employer remittance required for the period. MANAGEMENT REPORTS The Easybooks management reports provide you with information to use in making your business more financially efficient and to use in growing your business. We continue to add to these reports monthly as we receive requests from users. And since we are online we can make these reports available to you a lot faster. 1) Corporate Reports - these reports focus on your company as a whole with emphasis on the overall financial performance of the business entity. You will find income statements presented in different formats to allow you to see your company from a variety of viewpoints. 2) Customer Reports these reports focus on providing sales information by customer and products sold. In addition, various and collections reports are available to help you manage your customer receivables. 3) Vendor Reports reports to help you with the aging of your vendor payables and cash management. 4) Banking Reports - bank reconciliation reports and other bank related information. 5) Employee Reports payroll related reports. 6) Graphs various graphs to help you quickly see financial relationships. 58

61 TOOLS & UTILITIES The following tools and utilities will help make your accounting easier: 1) Opening Your Company in Another Window (File New Window Login) You can open your Easybooks company in multiple windows. For example, you can post transactions in one window and switch over to another window to see how this is affecting your income statement. You will need to refresh the report by clicking Submit so that it will be updated for the transaction you posted. If you have more than one Easybooks company you can open all of your companies at the same time to post inter-company transactions and instantly ensure that all inter-company amounts are in balance. 2) Printing from Forms Queue (File Print Forms) As discussed in Chapter 7 Entering Transactions, you can select to put your form in a queue for later printing by selecting To Be Printed on the transaction screen. Using this function you can batch your Invoices, Cash Sales Receipts, regular Cheques and Payroll Cheques for later printing. 3) Keeping a Record of Your Data Entry (File Utilities Trans Posting Report) Easybooks keeps an image of all transactions you post and stores these in the Transactions Posting Report. After your posting session you should print and keep a copy of this report. If you ever need to repost transactions you can post directly from the Transactions Posting Report rather than having to pull out all of your invoices, cheques, etc. 4) Verifying Your Easybooks Data (File Utilities Verify Data) This utility allows you check the integrity of your data from time to time and will among other things check to ensure that your debits and credits are in balance. SECURITY Easybooks has a number of security features designed to protect the accuracy of your data and to prevent unauthorized access to your data. 1) Close Books (Security Close Books) From Security on the menu bar, select Close Books. This is the screen that you will use to lock your books to prevent accidental changes to your data. You will still be able to post transactions to the locked period but as a precaution Easybooks will ask you for a password before allowing the changes. At a minimum, your books should be locked after you have completed your tax filings for a fiscal year to avoid accidental changes to your data. Enter the requested information: a) Date through which the books are closed enter a closing date. b) Password enter a password. You will be asked to enter this password whenever you are attempting to post a transaction to a locked period. c) Confirm password re-enter your password for verification. Select Save to set the new closing date for your books. 59

62 2) Setup Users (Security User Setup) From Security on the menu bar, select User Setup. This is your User List. a) User List Overview i) Active/Inactive/All this allows you to switch between active Users and inactive Users. If a User should not have access to your books make the user inactive. To see all Users click All. The user setup screen should only be accessed by the account administrator. ii) Add New User - click here to add a new User. iii) Login ID the ID s of all users are shown. iv) Password the password you have assigned to the Users are shown here. v) Name the full name of the User is displayed. vi) View click here to see the setup details for the selected User. From here you will be able to edit or delete Tax Codes. vii) Status shows the current account status for the selected User. The green arrow indicates the User is active. To make the User inactive click on the green arrow. In the Inactive User List, you can make a User active again by clicking on the red status button for that User. 60

63 b) Add Users To add a new User, select Add New User from the User List. There are no restrictions on the number of user accounts you may setup. Review the various sections of the screen and select the data entry screens and reports you would like the new User to have access to. In particular, consider whether this new user should be given access to functions such as User Setup, and Close Books. If you are uncertain about what level of access you should give to a user consult with your accountant to ensure that you are following good internal control practices. Select Save to create a new User. Review the information you have entered and make corrections if required. Select Cancel if you wish to discard the information you have entered. 3) Change Password (Security Change Password) From Security on the menu bar, select Change Password. This is the screen that you will use to change your password. Good computing practices require that passwords be changed frequently to prevent unauthorized access to your data. Easybooks recommend that passwords be changed at least once a month. Avoid using dates of birth, personal names, mother s maiden name or other commonly known information about yourself 61

64 that can be easily determined. A good rule of thumb is that if a close friend or relative can guess your password in 10 attempts or less then it is not a secure enough password. Enter the requested information: a) Current Password enter your current password. b) New Password enter a new password, maximum 15 characters. c) New Password Confirm re-enter your new password for verification. Select Change to create your new password. 4) Access Report (Security Access Report) From Security on the menu bar, select Access Report. This is your Access Report List. This list shows all of the users you have given access to your financials and from here users will be able to review data entry screens and reports that have been accessed under their login ID. Once you login to Easybooks you should review your Access Report to ensure that your login ID has not been used by someone else since your last login. a) Access Report List Overview i) Active/Inactive/All this allows you to switch between active Users and inactive Users. If a User should not have further access to your books make the user inactive from the User Setup screen. To see all Users click All. ii) Login ID the ID s of all users are shown. iii) Name the full name of the User is displayed. iv) View click here to see the view the access report v) Status - shows the current status for the selected User. The green arrow indicates the User is active. 62

65 b) Monitoring Your Access Report i) Login ID information shows the details of the user. ii) Login Dates shows the current login date and the prior login date. Review the date and time of the prior login to. If you did not login at that date and time review the Access History below to determine what reports or transaction screens were viewed during the login session in question. iii) Access History shows the last two access dates for each transaction screen, report and List in Easybooks. If you determine that someone else used your login you will be able to see which transactions screens and reports were looked at. This will allow you to review your Transaction Summaries to determine whether any unauthorized transactions were posted to your books. After reviewing the Access Report you can close the report by clicking on the "X" at the top right of the screen. 63