Marie Nugent. Help Desk. QuickBooks Solutions for Your Business.

Transcription

1 @ Marie Nugent Help Desk QuickBooks Solutions for Your Business. 1

2 @ Marie Nugent Help Desk Table of Contents A Note From Marie... 3 QuickBooks in a Nutshell 5 QBO Test Drive... 6 Objectives.. 6 Entering Transactions TOPIC #1 Money In... 7 Setup New Customer 8 Create Invoice.. 8 Create Estimate... 8 Customer Refund & Credit Memo. 9 Customer Forms 10 Printing From the Customer Center 10 TOPIC #2 Money Out Writing Checks.. 13 Spending Cash 13 Entering Credit Cards. 13 Entering Debit Card Charges.. 14 Entering Bills 14 Pay Bills.. 15 Pay Multiple Vendors. 15 Setup Recurring Transactions. 15 Print Reports Reconcile Bank & Credit Card Accounts TOPIC #3 Downloaded Transactions Assign & Categorize Downloaded Transactions.. 17 Disconnect or Delete Bank or Credit Card. 19 TOPIC #4 Inventory & Purchase Order

3 Setup Product for Inventory Tracking Buying Inventory with a PO 22 Entering Vendor Bill with a PO. 22 TOPIC #5 Journal Entries.. 23 Set Up Users & Assigning Privilege. 24 QuickBooks Services What Clients Are Saying 26 Contact Marie What makes Marie Nugent unique amongst the QuickBooks advisors we have hired is her very practical approach to tailoring QuickBooks to our needs. Her indepth knowledge of the inner workings of QuickBooks has transformed our operation in a very short time. She may appear a bit more expensive than other QuickBooks advisors until you realize that she covers in an hour what takes others many hours, and has made our operation smooth and stress-free through clever short-cuts so few know of. I highly recommend her for setting up QuickBooks right. My employees know much more about QuickBooks now, as she has made it simple to use, and has shown us how to avoid issues in the future. In just a short time with Marie, she has made something that appeared daunting and difficult to use, simple and effective. I can now sleep at nights knowing that my business is under control, and I can accurately view the state of my business at any moment by simply opening QuickBooks. Marie has not only made this possible, but did so in a very costeffective manner. Jack Canterbury, Esq. General Counsel & Regulatory Director Allied Home Health, LLC 3

4 Marie Nugent Help Ø Ø Ø About Marie Don t let QuickBooks get the best of you! Get the best of QuickBooks for your business. Put Marie s 20 Years of Experience to Work for You Your training has literally revolutionized the way we run things here. Everyone in our entire company - from Customer Service, Purchasing, Marketing, Shipping to Management has benefitted greatly from what you have taught us! I couldn t recommend your expertise more! In fact, I would tell anyone new to QuickBooks that a session with you is mandatory. The ROI is literally 50 fold for our company. Thank you! Michael Louis Perry MLP & Company Contractor Engineers 4

5 QuickBooks in a Nutshell THE MOST COMMON TASKS YOU WILL BE DOING IN YOUR BUSINESS 1.Money In 2.Money Out 3.Other Functions with Transactions 4.Inventory and Purchase Orders 5.Journal Entries Setup Customers Create Invoices Sales Receipts Receive Payment/Income Issue Customer Refunds Credit Memo Time Activity Setup Vendors Write Checks Enter Credit Card Expenses Debit Cards Enter Bills Pay Bills Pay One Vendor Pay Multiple Vendors Download transactions Setup Recurring Transactions Print Reports Reconcile Bank & Credit Card Accounts Selling Products and/or Services Setup a Product for Inventory Tracking Purchase Products for Inventory with a PO Selling Inventory Products Making Journal Entries Transaction & Accounting in QuickBooks Online Here you will explore the types of transactions that bring money into your company. There will be many activities to create receipts and receive payments. You will be able to see your customer unbilled, unpaid, and paid summary at a glance at the top of your Customer page, and you can click on each option to see the complete list. If you create an Invoice, you will need to use the Receive Payment feature to record the payment instead of the Bank Deposit. This part of the overview will help you learn the correct way to account for the checks you write. In most cases, paying the bills in QuickBooks Online requires you to have a bill matched to a payment so that reporting is correctly displayed. If you enter a bill, you will need to use the Pay Bills feature to make the payment instead of the Check feature. You will also learn how to enter credit card expenses, and use the register. This is an overview of several additional functions related to transactions like, Downloading Transactions from the bank, setting up recurring transactions and Printing. You will also learn how to reconcile bank and credit card transactions. This training will help you setup inventory correctly and match the sale of your products to invoicing and vendor purchases using Purchase Orders. No one wants to run out of a certain hot selling item in inventory. You will also learn how to setup service items. Sometimes it requires a Journal Entry to correct or change reporting data. This training will help you make those kinds of changes behind the scenes. 6.Setup Users Setup users and assign privilege You may have multiple employees who you need to access different areas of QuickBooks. You are able to set them up with access only to those areas. QuickBooks Online has three (3) menu bars: 1 at left, 1 at top center, and 1 at top right. See image with red arrows pointing to menu areas at this link: Use the Test Drive link below to see Sample Company. 5

6 QBO Plus Test Drive If you have not yet subscribed to QuickBooks Online, or does not feel confident jumping right in, you can access the sample company Intuit created called Craig s Design & Landscaping Services at this link: You can practice in this sample company, doing pretty much everything that you will be doing in your company, with the exception of payroll. There are three (3) subscription options for QuickBooks Online: 1) QuickBooks Online Simple Start 2) QuickBooks Online Essentials, and 3) QuickBooks Online Plus. QuickBooks Online Plus does what the Simple Start and Essentials do, and more. This test drive is using the QuickBooks Online Plus plan. You do not have to create an account or sign in to use this sample company, just complete the security validation and click Continue. This test drive is designed for you to explore and try out new things without worrying that you will break something or make a mistake. It is not designed to retain any changes you make. Once you close the QBO Plus test drive, it is completely refreshed, so please remember to allow sufficient time to complete each activity. Nevertheless, no worries if you have to close the Test Drive before you are finished! You can always begin again J Setup QuickBooks Preferences Once you login to the Sample Company, you will need to setup the preferences so that all key features you will need to use in your real company, will function. To get to the Preferences click on the Gear Icon at the top right corner where the company name is located, and select Account and Settings under Your Company. Next, you want to click on each of the Items in the left menu bar Sales, Expenses, Advanced and configure based on the features you will be using in your real company. To edit the fields in each menu, click on the pencil icon to the right of each option. You will be able to subscribe to Payroll and make changes to your plan in your real company by clicking the Billing & Subscription option in the left menu bar. Objectives Create transactions related to receiving money: Money In Create transactions related to spending money: Money Out Work with Downloaded Transactions: Assign or Match Utilize Inventory and identify its relationship to Purchase Orders Utilize Journal Entries for making Backend transactions 6

7 TOPIC #1: MONEY IN Unless you are a non-profit organization, you are in business to make money. Some businesses such as restaurants and Laundromats are instant payments companies, and as such you pay at the time you get the good(s) and/or service(s). In this case, they issue instant cash receipts. Other companies such as construction and engineering offer their services upfront while requiring payment within a period of time. In this case, they issue an Invoice to their customer and enter the monies owing in an account called Accounts Receivable. Accounts receivable is simply you allowing your customer to purchase your goods and services on account with a timeframe to pay usually 30 or 60 days. (Your Accounts Receivable balance can be found on your Balance Sheet, by going to Reports in the left menu bar and selecting the balance sheet option.) Transactions you will be exploring that these scenario affects are: Customers Sales Receipts Invoices Estimates Receiving Payments Credit Memos Refund Receipts Customers In addition to showing your customers and a list of Sales Receipts or Invoices, the Customers menu is like a Command Center where you can track your income source - unbilled activities, unpaid Invoices, overdue Invoices, as well as Invoices recently paid. This colorful bar display is called the Money Bar, and it gives you a graphic way to instantly get a sense of how your Income potential and received, is moving through your business. You can click on each section to view complete list of transactions. The Customer menu saves time by putting your customer tasks in one central location. It helps you to manage your workflow and reduce errors, so that you can spend more time on your business analysis and planning and not on clearing up errors. You can click on each customer to view all their transactions, and use the Filter to show only what you need to see such as Overdue Invoices, Open Invoices, Credit Memos, Recently Paid Invoices etc. There are batch actions you can take such as multiple Invoices, and you can use the Gear Icon at right of Transaction List to add columns in order to view more such as Method of payment, Invoice Aging, Last Delivered etc. 7

8 Setup a New Customer To add a new customer, click on the New Customer tab at top right of Customers Center screen. Click on the drop-down at New Customer and select Import customers to import your customer list from an excel sheet or CSV (comma separated value) file. If you do not have a customer list to import, you will need to add them individually. To add new customers individually: 1. Go to Customers in the left menu bar, and click New Customer at top right of screen. 2. Input all customer information and click Save. NOTE: If you will be submitting your Invoices to your customers via , you need to enter their addresses. You can setup sub-customer for each customer job in order to be able to run reports for each job and also be able to see which job(s) particular Invoices are for. There is an option to either bill sub-customer or individual jobs with the customer or parent or bill separately. Create Invoices To Create an Invoice: 1. Go to the Plus sign at top center of screen and select Invoice under the Customers tab. 2. Choose the customer from the dropdown at top left of screen. 3. Input the date, terms, product/service, quantity, taxable or non-taxable, and click Save or Save and send to the customer right away. You can include a message for your customer at Message displayed on Invoice, and a message for you at Statement memo. Create Estimates To Create an Estimate: 1. Go to the Plus sign at top center of screen and select Estimate under the Customers tab. 2. Choose the customer from the dropdown at top left of screen. 3. Input the date, product/service, quantity, taxable or non-taxable, and click Save or Save and send to the customer right away. You can include a message for your customer at Message displayed on Estimate, and a message for you at Statement memo. You can click the drop-down option to the right of each customer to see a list of options you can use such as: Create Sales Receipt, Create Estimate, Create Statement etc. at Create Invoice. And finally, you can apply the payments you receive from your customers to their Invoices by clicking Receive Payment to the right of each customer. You can also click on the drop-down option at Receive Payment to see a list of optional actions you can take such as: Create Invoice, Create sales receipt, Create estimate, Create statement etc. See screenshot illustration below. 8

9 Customer Refund or Credit Memos The difference between Credit memo and a Refund A credit memo is issued to a customer for the overpayment of an Invoice or Invoices. This is usually applied to the customer s account and reserve to be used to decrease their next Invoice. Unlike the credit memo that is reserved to be applied to the customer s next Invoice decreasing it, a refund is returning the overpayment to the customer in the form of cash, check or other monetary form. A refund is also issued if a customer returns items, or cancels a pending service. 9

10 Customize Forms 1. Go to the Gear icon at top right (your company name), and select Account and Settings under Your Company tab. 2. Click on Sales at left, then Customize look and feel. (Here you can Edit Intuit s Standard template or create a new one). 3. Click Edit, and use the menu options at left to customize each section you desire. 4. Click Preview or print to preview or print, and Save if you are finish customizing. (You can always come back and make changes). NOTE : You may want to spend some time in the Account and Settings turning on the features you will be using, also in the Advance tab. Printing from the Customer Center Printing from the Customer Center is handy for a number of reasons. You can: Print the transactions themselves (invoices, sales receipts, estimates), either individually or in a batch Print packing slips for invoices and sales receipts, either individually or in a batch Print the Customer List, or specific Transaction List To print a single transaction or multiple, select the transaction(s) by checking the box(es) to the left of it, then Batch Action and select Print Transactions from the drop-down list of actions. To print Transaction Lists, click on the Print Icon to the right of screen. The transactions on the page you are viewing will print. For more options related to customer, click on the plus sign at the top center screen menu, and see list under customer. Click on each to view or use. NOTE: If you create an Invoice, you must use the Receive Payment option to record the payment; however, if you create a Sales Receipt, you will not need to do anything else as Sales receipt is for money you receive instantly and it will go directly to the bank once you hit the Save button. This is a common mistake made in entering a Sales Receipt, then ALSO going to the Receive Payments screen and recording a Payment. This results in recording the money twice. So the bank balance is incorrect and the Accounts Receivable balance holds a credit for this customer, or in other words, showing that you owe them. That s it for Customer Center Overview. Let s move on to Vendor Center Overview. 10

11 TOPIC #2: MONEY OUT If you are doing any type of business, it is inevitable that monies will leave your hand. You may be making instant payments for some expenses, but may be extended credit by some of your vendors, in which case you will be given a specific timeframe within which to make your payment to them. For instant payments, use the Check option to pay your bill and record your expenses. To do this: Go to the Plus sign at the top center menu, and click Check under Vendors. For expenses in which you are extended credit, you will need to create a bill and use the Pay Bills option to record the payment for that bill when you are ready to make the payment. To do this: Go to the plus sign at the top center menu, and click Bill under vendor to create bill, and Pay Bills when you are ready to pay the bill. You can also go to the vendor in the left menu bar, and click the Make Payment button to the right of the vendor. When you create the bill, the monies you owe will be stored in an account called Accounts Payable. When you make the payment for the bill using the Pay Bills option, the monies will be removed from the Accounts Payable account and the bill marked PAID. As you can see, if you use the Check option to pay this bill, the bill will not be marked paid and will remain in the Accounts Payable account as unpaid. Accounts Payable transactions are considered "accrual basis" of accounting where expenses are reported on an income statement in the period when they occur or expire. These transactions are entered in the Vendors tab. The other method is called "cash basis" where expenses are reported on the income statement when the cash is paid out. These types of transactions are entered using the Check option. Transactions you will be exploring that these scenario affects are: Vendors Writing Checks Spending Cash Entering Credit Card Charges Entering Debit Card Charges Entering Bills Paying Bills Paying One Vendor Paying Multiple Vendors Vendors In addition to showing your vendors and a list of Purchase Orders and Bills, the Vendors menu is like a Command Center where you can track your expenses - unbilled activities, unpaid Bills, overdue Bills, as well as Bills recently paid. This colorful Money Bar gives you a graphic way to get a sense of the volume of your expenses and how they are affecting your business. 11

12 You can click on each section to view complete list of transactions. The Vendor menu saves time by putting your vendor tasks in one central location. You can click on each vendor to view all their transactions, and use the Filter to show only what you need to see such as Overdue Bills, Open Bills, Purchase Orders, Recently Paid Bills etc. There are batch actions you can take such as re-categorizing expenses and printing transactions. You can use the Gear Icon at right of Transaction List to add columns in order to view more such as Method of payment, Due date, Status etc. To add a new vendor, click on the New Vendor tab at top right of Vendors Center screen. Click on the drop-down at New Vendor and select Import vendors to import your vendor list from an excel sheet or CSV (comma separated value) file. You can click the drop-down option to the right of each customer to see a list of options you can use such as: Write check, Create Expense, Create Purchase Order etc. at Create Bill. And finally, you can make the payments to your vendors by clicking Make Payment to the right of each vendor. You can also click on the drop-down option at Make Payment to see a list of optional actions you can take such as: Create Bill, Create expense etc. See screenshot illustration below. 12

13 Writing Checks It is impossible to be in business and not spend money, and in most cases a check is used to make the payments. In QuickBooks, you use the Check option to make payments that you did not create bills for. If you created a bill, you must use the Pay Bills option to pay the bill. Bills and Pay Bills go together, you cannot use one without the other! If you do, your payables will be inaccurate as the bills you use the Check option to write, will remain unpaid in QuickBooks. To use the Check option, go to the plus sign at the top center of screen, and select Check, under the Vendor menu. To use the Pay Bills option you can either: go to the plus sign at the top center of screen and select Pay Bills under the Vendor menu, OR you can click Vendor on the left menu tab, locate the vendor you wish to pay, and click Make payment to the right of the Vendor you are making the payment to. Spending Cash If you use cash to make purchases or pay expenses for your business, you need to set up a Petty Cash account in QuickBooks Online so that you can track the use of this cash. Petty Cash is an amount of money set aside for small expenses, and is usually a fixed designated amount. To setup a Petty Cash, you can either: go to Transactions in the left menu bar, then select Chart of Accounts, OR you can access it by clicking on the Gear Icon at the top right of screen (at your company name) and select Chart of Accounts under the Your Company tab. Once there, click on New to the top right of screen, select the Category Type (QuickBooks uses Bank), and the Detail Type (which would be Cash on hand), give it a Name (Petty Cash is good) and enter the balance you have as at the date you are setting it up. You can also add a description and sub account if there is one. Then click Save and Close. If you use your personal funds to pay for business expenses, you are either investing it in your business or loaning it to your business. Either way, you will need to enter it appropriately in your business QuickBooks. Learn more at this link: Entering Credit Card Charges Most popular credit cards can be linked to QuickBooks, and setup so that the transactions can be downloaded into QuickBooks. You will need to go the download center to update at regular intervals, and also input the entries directly to the relevant accounts. Yes, the transactions that are downloaded are held in a designated area where you will need to use the Add or Match feature to 13

14 get them directly added to QuickBooks. In order to use this download feature, you will first need to setup the credit card in QuickBooks. To do this: go to Chart of Accounts and click New at the top right corner. Select Credit Card at the Category Type, give it a distinguishable name (especially if you have several cards with the same company), enter the balance as at a particular date (preferably the ending date of a credit card statement). You will be entering transactions in QuickBooks from that point on, so decide where you want to begin. (You could leave this blank and do it later, and you could also edit this amount later on.) Click Save and Close. Now to link your credit card to this account you have just created, go to: Transactions in the left menu bar and select Banking. Click Add Account at the top right corner and start typing your credit card company in the search field and select the one you need from the pop up options. (If you do not see your credit card as an option, you can choose to export the data from your credit card company in excel (csv) format and then importing the list to QuickBooks.) You will then sign in to your credit card company account and follow the instructions to link your account. You will select the credit card you just created, when it prompts you to choose where to download transactions to. If you do not wish to use the download option, you can enter the transactions manually by going to the Chart of Accounts under Transactions in the left menu bar, locating the Credit Card you are updating, and then click to open it s register. You will be able to enter both charges and credits for the card. NOTE: This is the same procedure used for setting up your bank account(s). Entering Debit Card Charges Debit Card charges are usually linked to a bank account, and therefore will be downloaded to the bank with the checks, deposits and other banking transactions. They will be listed on your bank statement and does not need any individual setting up or reconciliation. Entering Bills Bills are used to record and keep track of bills that you receive and will not be paying immediately or in full. They are also used in accrual basis of accounting and not cash basis. To enter a bill: go to the plus sign at the top center of page and select Bill under the Vendors tab. Select the Vendor you are preparing the bill for from the dropdown menu at top left, and input the information in their respective fields - including the bill date and terms. Click Save or Save and New to create a new bill. You can also go to Vendor at left menu bar, locate the vendor, and click on the Create bill link to the left of the vendor. 14

15 Paying Bills In order to pay the bills you have created, you will need to use the Pay Bills option. (Do not use the Check option to pay a Vendor that you have created a bill for. If you do this, the bill will remain unpaid in QuickBooks, which makes your Payables (money owing) incorrect. Paying Multiple Vendors You can pay multiple vendors in one shot. To do this: go to the plus sign at the top center of screen and select Pay Bills under Vendors. Select the bank or credit card account you want to pay from at the top left of screen, insert the payment date, the starting check# you will be using, then select the vendors you are paying by checking the boxes to the left of each vendor and inserting the amount in the payment column for each vendor. Click Save. If you are using your bank account to pay the bills, after clicking Save you will be taken to the Print screen. If you wish to print the checks later, check the Print Later box before clicking the Save button. You can use the search option at the top center of screen to locate the bill payments that you have generated when you are ready to pay them. You can also go to the Chart of Accounts, click on the bank account that you generated the checks through, and double click on each bill payment. Next click Edit, then Print check at bottom of screen. Setup Recurring Transactions In order to setup a recurring transaction you need to setup a template. There are two ways to start creating a template: 1) To just create a template, start from the Recurring Transactions 2) To start from an existing transaction and create a template from it, find the transaction and then make it recurring. To create a new template: 1. Go to the Gear icon (at your company name) and select Recurring Transactions under the Lists column. Click New at top right of screen, then select the type of transaction you need to make recurring, and click Ok. 2. Start setting up your new template by giving it a name. Select the payee from the dropdown list, and complete all the other relevant fields. 3. Click Save template. To locate and make edits to your recurring transactions: Go to the Gear icon (at your company name) and select Recurring Transactions under the Lists column. Click the Edit button to the right of transaction you wish to edit. Make the changes and click Save template. 15

16 Print Reports As discussed above, you can print varying reports from various places in QuickBooks such as the Vendor Center, Customer center, etc. However, there is a Report Center where you can access all reports. To locate the report center and print reports, go to the left menu bar and select Reports. You will see the column options which when clicked will reveal multiple report types from which you can generate a plethora of reports based on the information you are seeking. These reports can be further customized by clicking on the Customize button at the top right of report screen. The filter is a very useful tool that allows you to narrow down the report by a specific account, Vendor, Customer, Product, etc. Remember you can access Intuit s Sample Company to practice in without making any mess of your books. Access it here: Reconcile Bank or Credit Card Accounts Reconciling your accounts is the only way to ensure your accounts as well as reports are accurate. To reconcile an account: 1. Go to the Gear Icon (at your Company name top right of screen) and select Reconcile under the Tools column. 2. Select the bank or credit card account you are reconciling from the dropdown bar at Account, and click Reconcile Now. 3. Enter the statement ending date, and ending balance. (NOTE: The beginning balance should match the beginning balance on your statement). See 4. Click Ok. 5. Check the box at top right of screen that says: Hide transactions after statement s end date, then check the box to the left of Date on the left as well as the right side of entries. This will select all the entries from the period you are reconciling. (The Checks and Payments are on the left, and the Deposits and Other Credits are on the right). The Difference at bottom should be zero (0.00); if it is not, your account is not reconciled, and you will need to locate the difference. The most common reason for this is checks that you have written that are not yet cashed by your bank. So, you may want to check the checks on your statement with QuickBooks list to see which ones are not on statement, and uncheck them on the screen. Also, you can check the Deposits and Other Credits figure at bottom center of recon window to see if it is the same as the total deposits on the statement. If it s not, calculate the difference and locate it. If it is, then the difference lies with the Checks and Payments. You can also deselect all the entries by unchecking that box to the left of Date, and comparing and checking them off one by one with the statement entries. 6. When you have resolved the difference and it is zero. Click Finish Now. (Your Account is now reconciled!) It will be shown on the Reconciliation History & Reports page. NOTE: Be careful not to delete or change transactions that have already been reconciled. It will throw off your beginning balance and make your account(s) and previous reconciliation incorrect. When you go to reconcile for the next period, should your beginning balance be different from your statement beginning balance, click on the amount in the Changes column to see what amount(s) were changed. 16

17 TOPIC #3: DOWNLOADED TRANSACTIONS As briefly discussed in a previous topic, downloaded transactions are not directly entered into QuickBooks. Instead, they are held in a designated section where you will need to review and add them to QuickBooks. Assign & Categorize Downloaded Transactions For each downloaded transaction, QuickBooks Online analyzes all the information received from the bank and tries to give you the best possible suggestion for accepting the transaction. As such, you will need to check to see if the transactions are correctly assigned to their appropriate account before adding them to QuickBooks. To review downloaded transactions: 1. Go to Transactions in the left menu bar, and select Banking. You will see all your Bank and Credit Card accounts in the top section of page. 2. Click on each account to reveal the list of transactions below. To the right of each transaction you will see either Add or Match. The Match with the green color means that that transaction is already in QuickBooks and QuickBooks is certain it is the correct match. The Match with the grey color means that the transaction is already in QuickBooks, but QuickBooks has found multiple matches. In this case, click on the transaction to reveal a list of the possible options. Choose the correct one and click Match. The Add button to the right of the transactions means QuickBooks cannot locate those transactions in QuickBooks. This does not mean the transaction is not in QuickBooks, it could be! For example, if you received a payment for an Invoice in QuickBooks, but did not deposit that exact amount to the bank. In this case, you will need to check to ensure what the deposits are for. Also, if you are using the downloaded feature for the first time, you may have a lot of transactions coded to Uncategorized Expense. Click on each transaction and input the Vendor s name and the expense account to which the expense belong. If you do this and assign all the vendors to an account, QuickBooks will remember the vendors next time you download, and assign them to their appropriate accounts. You will also see three (3) sections: For Review, In QuickBooks, and Excluded. As you review and add the transactions to QuickBooks, they will move from the For Review column to the In QuickBooks column. If some of the transactions are already in QuickBooks but not showing a match, you can exclude those transactions from the review column. To do this: check the box to the left of the transactions to be excluded, then click on the Batch actions drop down tab (seen just above the list of transactions), and select Exclude Selected. Those transactions will now be moved to the Excluded column. To accept or add multiple transactions to QuickBooks at one time, click the boxes to the left of the transactions, then Batch actions at dropdown top left, and select Accept Selected. See screenshot illustration below: 17

18 You can match a downloaded transaction amount to more than one QuickBooks Online transaction. For example, if you receive payments for three invoices with three separate checks for $100 each, and you grouped them in the undeposited funds account and subsequently made one deposit for $300 at your bank. In this case, you would want to match the $300 downloaded amount to the three $100 payments you received against those invoices. To do this: Click on the $300 deposit transaction in the download window, and check Find match. QuickBooks will display all the possible matches, from which you will select the three individual $100 payments by clicking the box to the left of each, then Save. 18

19 You may at some point need to undo a match you have made, and it doesn t matter if it was matched to a single transaction or multiple, it can be unmatched. To do this: click the In QuickBooks option from the downloaded transaction window, and click Undo to the right of the transaction in question. This will remove the transaction from the In QuickBooks column back to the For Review column. Disconnect or Delete Bank or Credit Card Accounts You can disconnect an account's connection, which stops QuickBooks Online from downloading your transactions from your financial institution. You can set up a new connection, if needed, for any accounts you disconnect. You can also completely delete an account from QuickBooks Online. But exercise caution! You can't restore a deleted account, and it may have unintended consequences. If you're unsure, check with your accounting professional before deleting an account. To disconnect an account: 1. Go to Transactions in the left menu bar, and select Banking. This will take you to the Downloaded Transactions page. Select the account you want to change, and then click the Edit button (that small pencil icon at top right). 2. Choose Edit Account Info and check the box that says Disconnect this account on save. 3. Click Save and Close. (The account you deleted will remain in QuickBooks, just not linked to your banking organization anymore) To delete an account: NOTE: It is important to bring the account you are deleting to zero balance before deleting it. If there are a couple transactions, delete them before deleting the account. If you delete it with a balance, it will give you this message: This account has a non-zero balance. Deleting this account will cause an adjusting transaction to be created. Is this OK? If you choose Yes, QuickBooks will transfer that balance to your opening balance equity, which will make it incorrect. If the account is reconciled and you no longer will be using it, do not delete it. To delete: 1. Go to Transactions in left menu bar, then Chart of Accounts and click on the dropdown to the right of the account you want to delete. 2. Select Delete, and answer Yes to the question. 19

20 TOPIC #4: INVENTORY & PURCHASE ORDERS QuickBooks Online Plus has this key feature where you can track the quantity, purchase costs, sales revenue, and cost of goods sold for your Inventory Items. Here are some key points: The value of an inventory item in your books is the amount you paid for it Products using inventory tracking must be assigned an inventory asset account, a sales of product income account and a cost of goods sold account The balance of the inventory asset account appears on the Balance Sheet report Recording the purchase of an inventory item increases the Inventory Asset account on your Balance Sheet report by the cost of the item and increases the Quantity on Hand units for that item Recording the sale of an inventory item decreases the Inventory Asset account by the original cost of the item and decreases the Quantity on Hand units for that item The Cost of Goods Sold (COGS) represents the cost incurred by your company for purchasing goods to resell The COGS is not realized until a product is sold. The COGS account is an expense account. The difference between revenue from the sale of a product and the product s COGS is called the Gross Profit As products are sold from inventory, their costs are removed from the Balance Sheet report and transferred to the COGS account on the Profit & Loss report QuickBooks Online uses the FIFO accounting method to figure the COGS. FIFO stands for First-In, First-Out Recording this sale also increases the Cost of Goods Sold account (COGS) by the original cost of the item and increases the Sales of Product Income account by the amount your customer paid you for the item. The difference between the income amount and the COGS amount is your gross profit on that item. FIFO requires that products being tracked for inventory in a particular product group must be homogeneous in nature. Homogeneous means of the same or similar in nature. For example, if you are tracking Townhouse in your inventory, all Townhouses in that product category must be the same such as Townhouse: 1 bedroom, or Townhouse: NYC, etc. At times, you might pay more for some units of a given product than for other units due to price fluctuations. When this happens, QuickBooks Online uses FIFO to manage the cost accounting as you sell units of that product. 20

21 Product and Services List Products and services let you: Create products and services Create subs Items and Jobs Enter charges on invoices and use in estimates Quickly enter a consistent description and price/rate in transactions Report on income and/or expenses from different products or services Set up products or services that are either taxable or non-taxable by default To turn on products and services: Like a lot of features in QuickBooks, you need to turn on the preferences for products and services before you can access them. To do this: 1. Go to the Gear Icon at top right (your company name) and click Accounts and Settings under Your Company column. 2. In the left menu bar, click Sales, then the pencil icon to the right of Products and Services to edit that section. 3. Check boxes at left of each, and click Save. Set Up a Product for Inventory Tracking 1. Go to the Gear Icon (your company name) at top right of screen, and select Product and Services under the Lists tab. 2. Click New at top right of screen, then select Inventory. 3. Complete the fields with the product name, (Sku is optional), category (if you will be having a variety of a product and you want to track each, create a category to group them under. You will setup the other products as sub-category of this category later on), description (this will show up on the forms whenever you select this Item), quantity on hand with date, the selling price, uncheck box if item is non-taxable, enter cost (how much you paid for each of the item), add an Item image (optional), then Save and Close. You can go back to edit Item at anytime by going to the Gear Icon, and selecting Products and Services under the Lists tab, and clicking the Edit button to the right of the Item. You can adjust the quantity, starting value as well as all other info. but you cannot change the inventory type. 21

22 Buying Inventory with a PO 1. Go to the plus sign at top center of screen and select Purchase Order under the Vendors tab. 2. Select the Vendor at top left dropdown, then enter the PO date, product you are ordering, and quantity. 3. Select the customer only if you are purchasing this item for a specific customer. 4. You could type a message to your Vendor and input a memo for you. 5. Click Save or Save and send to to vendor. (You will need to input the vendor in the field above before you can it). (You can also make this PO recurring by clicking the Make recurring at bottom center of screen). To edit or print the Purchase Order: 1. Go to the plus sign at top center and select Purchase Order under the Vendors tab. 2. Click on the clock icon at top left of screen (This will display the recent purchase orders). 3. Select the PO in question, and make edits, or Print at bottom center of screen. 4. Click Save or Save and send, if you made changes to PO. You can also access the PO by going to Vendors at left menu, and clicking on Purchase Orders at top left blue shaded area. Enter a Vendor Bill with a PO 1. Go to the plus sign at top center, and select Bill under the Vendor tab. 2. Select the vendor from the dropdown at top left. 3. Click Add or Add all. (This will add the PO content to the bill. You can make changes on bill.) 4. Click Save or Save and new. (You can also make this bill recurring by clicking Make recurring at bottom center, and setting it up). If you added the entire PO content to the bill, the PO will now be closed and the Inventory Quantity on Hand as well as the Inventory Asset will be increased. 22

23 TOPIC #5: JOURNAL ENTRIES The Journal is an account ledger where various types of entries are recorded. Most commonly, the Journal is used to record transactions that cannot be recorded in one of the specialized forms such as Write Checks, Receive Payments, Enter Bills, etc. What is a Journal Entry? In traditional accounting, a journal entry is a transaction in which: There are at least two parts a Debit and a Credit called distribution lines Each distribution line has an account from the Chart of Accounts The total of the Debit column equals the total of the Credit column When you record a transaction with Make Journal Entry, QuickBooks Online labels the transaction as Journal in a register and General Journal on reports that list transactions. Why Make Journal Entries? QuickBooks Online users would use Journal Entries: To record non-monetary adjustments make accruals, deferrals, and corrections. Examples include recording depreciation, amortization, unearned income and prepaid asset adjustments. You prefer the traditional system of accounting entering debits and credits in a general journal or ledger What Does a Journal Entry Look Like? Account Any account on the Chart of Accounts Debit or Credit Often the first line is Debit. After you save the transaction, find it in the Recent Transactions report to see if the Debit had the desired effect Memo (Optional) This memo appears on the account reports in the Memo/Description field and will show the transaction details Name Choose a customer, vendor, or employee associated with the line, if any If the account is Accounts Payable, the Debit line must have a vendor name associated with it If the account is Accounts Receivable, the Debit line must have a customer name associated with it To locate your Journal entries, click the Search Icon at top center of screen and select Journal Entries from the dropdown list. 23

24 Setup Users & Assign Privilege You can setup users so that they can access various parts of your QuickBooks Online company file. To do so: 1. Go to the Gear Icon at top right (your company name), and select Manage Users. 2. Click New and select the appropriate privilege or access point you want the user to have. (Note: In order to make administrative changes to QuickBooks, administrative privilege is needed.) So, if you want a particular employee to be able to make administrative changes such as Add a User, Edit a User, Change billing option, etc., you need to set the employee up as an administrator. 3. Click Next and make selection, then Next and continue until you are through. 4. Enter the employee s , first and last name, and click Next. 5. Click Finish. (Your employee will now receive an asking them to accept your request by creating their username and password to connect. You will see the user you created in Manage Users, and it will say pending until they accept your request. When they accept your request, the pending will change to Active.) You can subsequently edit or delete Users as you see fit. Reminder: If you have time on your hands, and you really want to learn QuickBooks on your own, use the QBO Test Drive link above to access the Sample Company and practice, practice, practice. Explore all the options you will be using in your company so you can be more confident once you dive into entering transactions in your real company. Just remember to give your self ample time to complete a task or set of tasks each time you are ready to use it. If left inactive for more than 30 minutes, it will log you out and you will not be able to pick up where you left off. You will need to start all over. Also, the same will happen if you refresh the page or move away from it, as the Sample Company does not store any information we add to it. 24

25 Marie s QuickBooks Services ONE-ON-ONE CONSULTATION Let me help resolve areas of confusion and ensure you are using QuickBooks the right way. Don t waste time sitting in a QuickBooks class and then discover the class doesn t answer your specific questions! We can meet on-site or over the Internet for as little as an hour, or as long as it takes to get things right! INITIAL QUICKBOOKS SETUP Just starting with QuickBooks? If your company data file is not set up correctly, you will be paying for it over and over again in higher accounting fees and troubleshooting expenses. Ensure you start your QuickBooks journey with a solid foundation. Don t blow this critical step in your QuickBooks journey! TRAINING INDIVIDUAL OR GROUP Put my QuickBooks expertise to work with your staff and adapt QuickBooks to the specific needs of your business. I make QuickBooks training easy, and you don t have to leave the office. Don t guess on how to use QuickBooks to meet your specific needs! TROUBLESHOOTING/PROBLEM RESOLUTION Working together, we can determine the extent of your QuickBooks problems and put a solution in place to prevent them from happening again. Let s talk before you give up on QuickBooks or toss your computer out the window! CONVERSION FROM AN EXISTING SYSTEM Tap into my expertise to help minimize the pains of converting to QuickBooks and ensure success for you and your team. Moving from your existing accounting software to QuickBooks doesn t have to be a scary or budget-busting event. HELP SELECTING THE RIGHT QUICKBOOKS ADD-ON SOFTWARE Trying to extend the functionality of QuickBooks? Avoid the classic mistakes many businesses do when looking for new software - especially packages that integrate with QuickBooks. Work with an experienced QuickBooks advisor to ensure your success. 25

26 @ Marie Nugent Help Desk What Clients Are Saying: Marie is extremely knowledgeable in QuickBooks and very personable. I have had an issue with this program since we purchased it and with Marie s help, we have been able to grasp a better understanding and actually put the program to correct use. Marie makes your learning experience relatively painless and interesting. She listens to your concerns and addresses them by importance and never make you feel stupid for not understanding. Marie, thank you for all your help! Katherine KLP & Company Consulting Your training has literally revolutionized the way we run things here. Everyone in our entire company - from Customer Service, Purchasing, Marketing, Shipping to Management has benefitted greatly from what you have taught us! I couldn t recommend your expertise more! In fact, I would tell anyone new to QuickBooks that a session with you is mandatory. The ROI is literally 50 fold for our company. Thank you! Michael Louis Perry MLP & Company Contractor Engineers Marie just a quick note to thank you for your help this morning. It is a pleasure to work with you. You are easy to communicate with, and actually understand what I was trying to do with my QuickBooks. Having your assistance has made my QuickBooks a much more productive piece of software and well worth the money I spent for it. Again, thanks! Kimberly The KLASP Foundation 26

27 @ Marie Nugent Help Desk Contact Info: Phone: Twitter: Facebook: ookstutorial LinkedIn: Website: om QuickBooks is a registered trademark of Intuit. 27