QUICKBOOKS DESKTOP ADVANC ED CERTIFICATION Supplemental Guide Module 2 Using Accountant Tools
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Table of Contents Table of Contents About the Author... 3 Module Guide Overview... 4 Purpose of this Guide... 4 Topics... 4 Note from the Author... 4 Additional Resources... 5 Training at a Glance... 6 Topic 1: Access Accountant ToolBox... 7 Learning Objectives... 7 Simplify Working with Client Files... 7 Requirements for Access to the Accountant ToolBox... 7 Tools Included with Accountant ToolBox... 10 Test your Accountant ToolBox Access Using Sample Data... 17 Topic 2: Client Data Review... 18 Learning Objectives... 18 Features and Benefits... 18 Access Client Data Review... 19 Customize Client Data Review... 20 Client Data Review Tasks... 23 Supplemental Guide QuickBooks Desktop Advanced Certification 1
Table of Contents Topic 3: Send General Journal Entries... 34 Learning Objectives... 34 Available with QuickBooks Desktop Software... 34 Recommended Uses for Send General Journal Entries... 34 When a General Journal Entry Transaction Type is Not Recommended... 37 Concerns When Using the Send General Journal Entries... 38 Best Practices for Accounting Professionals... 39 Topic 4: File Manager... 40 Learning Objective... 40 Access File Manager... 40 Whom is File Manager Recommended For?... 41 Efficiencies of Using File Manager... 42 Topic 5: Toggle to Industry Editions... 44 Learning Objective... 44 Available with Which Versions of QuickBooks... 44 Access From the File Menu... 44 Practical Uses for the Toggle Feature... 45 Topic 6: Fixed Asset Manager... 46 Learning Objectives... 46 Business Use: Fixed Asset List... 46 Accountant Use: Fixed Asset Manager... 48 Integration with Intuit s Tax Preparation Software... 51 Guide Conclusion... 52 Supplemental Guide QuickBooks Desktop Advanced Certification 2
About the Author About the Author Laura Madeira Named to the Top 10 QuickBooks ProAdvisors Author of QuickBooks training books and videos Advanced Certified QuickBooks ProAdvisor Certified in QuickBooks Online and QuickBooks Enterprise Intuit Premier Reseller www.quick-training.com info@quick-training.com Laura Madeira is the owner of ACS, Inc., an Intuit Premier Reseller located in the greater Dallas, Texas, area. She was recently selected, for the second year in a row, to the Top 10 QuickBooks ProAdvisors. Laura is one of the original members of the elite Intuit Trainer/Writer Network. She has been a guest speaker for Intuit for many years. She was also a founding member of the Intuit Customer Advisory Council. Laura is an Advanced QuickBooks Certified, Advanced QuickBooks Online Certified, Enterprise and Point of Sale Certified. Laura is also a Sage Certified Consultant representing Sage 100 Contractor software. Laura is the author of QuickBooks In Depth, an 888+ page reference and training guide. She is also the author of QuickBooks Solutions Guide, QuickBooks Live Lessons: For All QuickBooks Users, 11+ hours of self-paced video instruction, and co-author of QuickBooks on Demand, all offered by QUE Publishing. For over 25 years, Laura has worked with companies of all sizes and from varied industries. Her focus has been on helping growing businesses become more successful by automating internal accounting processes and improving overall business financial reporting. Additionally, Laura is a guest speaker for Intuit, providing national training for thousands of consultants and accounting professionals. She is also a respected author for Intuit, writing technical presentations, materials and documenting competing software. Laura earned her accounting degree from Florida Atlantic University. She enjoys photography, art and camping with her sisters and their families. When Laura is not writing, she enjoys reading a good book or two. More information can be found by visiting her website: http://www.quick-training.com or by phone: 214-705-9192. Connect with her on LinkedIn Follow her on Twitter Subscribe to her Blog via RSS Feed Follow her on Facebook Supplemental Guide QuickBooks Desktop Advanced Certification 3
Module Guide Overview Module Guide Overview PURPOSE OF THIS GUIDE This Supplemental Guide is provided to help you study for the QuickBooks Desktop Advanced Certification exam. Along with this guide are recorded training demonstrations and PowerPoint discussions to further your exam preparation. In this module, these show-and-tell demonstrations are provided to help you learn about Accountant Tools, included with your QuickBooks Desktop Accountant software, and how to use the features when working with your client s files. I feel confident that if you watch the video demonstrations, listen to the Microsoft PowerPoint discussions and review the detail found in this Supplemental Guide, you will become more profitable by working efficiently with your client s QuickBooks data. TOPICS The following topics are included in this Supplemental Guide about Using Accountant Tools: Topic 1: Access Accountant ToolBox Topic 2: Client Data Review Tools Topic 3: Send General Journal Entries Topic 4: File Manager Topic 5: Toggle to Industry Editions Topic 6: Fixed Asset Manager NOTE FROM THE AUTHOR This Supplemental Guide was prepared with features available in QuickBooks Desktop software 2015, Release 6. As future releases or versions of QuickBooks are offered, some of the details in this Supplemental Guide may change. It is always a good process to test a feature using the most current release or version of the QuickBooks software. This course focuses on QuickBooks Pro and Premier and does not include features specific to QuickBooks Enterprise Solutions. Your QuickBooks ProAdvisor membership offers you additional training and certification for QuickBooks Enterprise. Supplemental Guide QuickBooks Desktop Advanced Certification 4
Module Guide Overview ADDITIONAL RESOURCES Intuit provides additional resources for Accounting Professionals. Check out these sites to explore various tutorials and training opportunities available: http://accountants.intuit.com http://intuitacademy.com Supplemental Guide QuickBooks Desktop Advanced Certification 5
Module Guide Overview TRAINING AT A GLANCE Topic Content Learning Objective 1. Access Accountant ToolBox 2. Client Data Review Simplify Working with Client Files Requirements for Accessing the Accountant ToolBox Tools Included with Accountant ToolBox Features and Benefits Access Client Data Review Customize Client Data Review Client Data Review Tasks Specify requirements to access the Accountant ToolBox in your client s QuickBooks file List the steps to properly log into your Accountant ToolBox at the client s site Identify features and tools available with your Accountant ToolBox access Identify tools that are unique to Client Data Review Identify features and limitations when using selected Client Data Review tools 3. Send General Journal Entries 4. File Manager 5. Toggle to Industry Editions Available with QuickBooks Desktop Software Recommended Uses for Send General Journal Entries When not Recommended or Necessary for Use Concerns When Using the Send General Journal Entries Best Practices for Accountant Access File Manager Who is File Manager Recommended For? Efficiencies of Using File Manager Available with Which Versions of QuickBooks Access from the File Menu Practical Uses for Toggle Feature Specify the software requirements for using Send General Journal Entries Identify conditions when to recommend or not recommend using the Send General Journal Entries feature Identify steps to working with the File Manager Identify practical uses for the Toggle feature in QuickBooks Accountant Desktop 6. Fixed Asset Manager Business Use: Fixed Asset List Accountant Use: Fixed Asset Manager Integration with Intuit s Tax Preparation Software Distinguish the differences between the Fixed Asset List and the Fixed Asset Manager Recognize features and functionality available with Fixed Asset Manager Supplemental Guide QuickBooks Desktop Advanced Certification 6
Topic 1: Access Accountant ToolBox Topic 1: Access Accountant ToolBox LEARNING OBJECTIVES Specify requirements to access the Accountant ToolBox in your client s QuickBooks file List the steps to properly log into your Accountant ToolBox at the client s site SIMPLIFY WORKING WITH CLIENT FILES Wherever you go, carry your favorite tools with you. With the Accountant ToolBox, you can unlock access to powerful accountant tools while working with client data. Whatever method you choose to access your client s file, you now have the flexibility to work more efficiently with tools previously only available when you opened the client s file with your QuickBooks Accountant Desktop software. You might be accessing your client s file using any one of these methods: On-site Remote access with software such as LogMeIn, TeamViewer or GoToMyPC to name just a few Client s data hosted in the cloud REQUIREMENTS FOR ACCESS TO THE ACCOUNTANT TOOLBOX The following are requirements to accessing the Accountant ToolBox while working in the client s file: QuickBooks Version To access your Accountant ToolBox, your client must be using QuickBooks Pro or Premier Desktop 2015 or newer (as of the writing of this guide). NOTE: The Accountant ToolBox feature does not currently work with any version of QuickBooks Enterprise Solutions. Supplemental Guide QuickBooks Desktop Advanced Certification 7
Topic 1: Access Accountant ToolBox External Accountant User Login When you work in a client's file, request first that the client create a username specifically for you and assign that username the External Accountant privileges. Benefits and controls available when working in a client's file as the External Accountant user type include the following: Access to the Accountant ToolBox The capability to separate the changes you make in the data file from the changes your client makes Access to all areas of QuickBooks, except when creating new users, changing a user's access privileges or viewing sensitive customer credit card numbers Ask your client to create an External Accountant user type for you as the company accountant. To create this unique user type, log into the data file as the Admin user, then you or the client can create a user with External Accountant privileges. You will then use this new login when you begin working with the client's data file. Supplemental Guide QuickBooks Desktop Advanced Certification 8
Topic 1: Access Accountant ToolBox Intuit Account ID Login The Accountant ToolBox feature is available to accountants who have an active subscription to the QuickBooks ProAdvisor program or have subscribed to the Accountant Desktop Plus software. The accountant must be using QuickBooks Accountant Desktop Plus 2015 or newer and the client must be using QuickBooks Pro or Premier Desktop 2015 or newer (as of the writing of this guide). Supplemental Guide QuickBooks Desktop Advanced Certification 9
Topic 1: Access Accountant ToolBox To Access your Accountant ToolBox at the Client Site Take these instructions with you, so that you can access valuable accountant tools while working at the client s office. Follow these steps to access the Accountant ToolBox tools while working at the client site: 1. 2. 3. 4. 5. Request that your client log into the file as the Admin user and create a login user name and optional password assigning External Accountant privileges. Log into the client s file with your External Accountant user name and, if assigned, password. From the menu bar, select Company Accountant ToolBox Unlock Accountant ToolBox. Enter your Intuit credentials as mentioned earlier then click Continue. From the menu bar, select Company Accountant ToolBox then choose a specific tool to work with. NOTE: If you not see the Company Accountant ToolBox menu it might be because your client is not using QuickBooks 2015 Pro or Premier or newer or you are not logged into the file with External Accountant user privileges. TOOLS INCLUDED WITH ACCOUNTANT TOOLBOX Accountants can now be more efficient with access to these tools while working on-site with the client s file. Supplemental Guide QuickBooks Desktop Advanced Certification 10
Topic 1: Access Accountant ToolBox Accountant Center The Accountant Center provides a customizable list of your most frequently used tools. Simply click the Customize link in the top right to select those tools you want to access. The Accountant Center provides easy access to Memorized Report Groups. Create your own memorized report group and access it from the Accountant Center when working in the client s file. Module 6 Reporting provides more details on working with memorized reports and, in particular, report groups. The Reconciliation panel includes timely information about your client s last reconciliation date reconciled balance and current balance for all bank and credit card type accounts. Click Refresh to reflect recent changes to the client s data. The Accountant s Update section helps accounting professionals stay informed with important alerts, practice development tips and links to training opportunities. Supplemental Guide QuickBooks Desktop Advanced Certification 11
Topic 1: Access Accountant ToolBox Client Data Review Client Data Review is a collection of tools and reports that accounting professionals use primarily to streamline the many tasks involved in reviewing, troubleshooting and correcting a client s QuickBooks data file. Some CDR tasks can be accessed individually, while others require that you open a CDR review then select a date range for the review. Topic 2 in this module is devoted to a few select advanced tools available with Client Data Review. Supplemental Guide QuickBooks Desktop Advanced Certification 12
Topic 1: Access Accountant ToolBox Batch Enter Transactions The Batch Enter Transaction feature offers accounting professionals a way to streamline data entry tasks. This feature is included with QuickBooks Accountant Desktop and all versions of QuickBooks Enterprise. Details for using this feature were included in the original QuickBooks exam you completed. With Batch Enter Transactions, you can add the following to a QuickBooks file using a spreadsheet-like format: Checks Deposits Credit card charges or credits Vendor bills and bill credits Customer invoices and credit memos NOTE: You can watch a recorded demonstration of using Batch Enter Transactions on my YouTube channel, the link is: http://x.co/batchenter. Supplemental Guide QuickBooks Desktop Advanced Certification 13
Topic 1: Access Accountant ToolBox Make General Journal Entries Accessing the Make General Journal Entries transaction includes the option to show or hide List of Journal Entries, making working with this type of transaction more efficient. NOTE: If you use a customer name on the first line of a journal entry, every other adjustment made even noncustomer adjustments displays on the Profit & Loss by Job report for that customer. The first line of any journal entry is a source line and causes a relationship with transactions below the first line. To avoid this problem, always leave the first account line of a journal entry blank. Including a memo on the first line is acceptable. Supplemental Guide QuickBooks Desktop Advanced Certification 14
Topic 1: Access Accountant ToolBox Working Trial Balance The Working Trial Balance tool has been available for years. It is included with your Accountant ToolBox access. Use this window to efficiently prepare adjusting entries, as well as see the effect on net income as adjustments are made. Don t forget to print the Working Trial Balance as you document the work you do in a client s file. The Working Trial Balance displays the following details: Account Beginning balance Transactions (for the selected date range) Adjustments (total of adjusting journal entries) Ending balance Workpaper reference (where you can record specific notes) Supplemental Guide QuickBooks Desktop Advanced Certification 15
Topic 1: Access Accountant ToolBox Condense Data aka Period Copy If you find that the client s data has become sluggish or has grown too large to manage efficiently, you might want to consider using the Condense Data feature. Details for working with this feature are included in Module 1 Considerations for With Data Files of this QuickBooks Desktop Advanced Certification. The Condense Data feature is accessible with your Accountant ToolBox access. Specifically, you can do the following: Remove transactions before a specific date and, optionally, create a report showing which transactions were removed Remove all transactions, but keep lists and preferences Remove transactions outside a date range (to prepare a period copy of the company file) Supplemental Guide QuickBooks Desktop Advanced Certification 16
Topic 1: Access Accountant ToolBox TEST YOUR ACCOUNTANT TOOLBOX ACCESS USING SAMPLE DATA As an active QuickBooks ProAdvisor you can test your Accountant ToolBox access using your QuickBooks Accountant software and the Toggle feature detailed later in this module. To test this, you will need to have your own QuickBooks ProAdvisor email or username and password. These should be the same credentials you are using to access this QuickBooks Advanced Desktop Certification exam. To test your Accountant ToolBox access with sample data: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. From the QuickBooks File menu, select Close Company or Close Company/Logoff. From the No Company Open window select the drop-down Open a Sample File then select a file (any one will do). Login as the Admin user if more than one user was assigned to the sample file. From the menu bar, select Company Setup Users and Passwords Add User. Type a user name the click Next. Select External Accountant for the access for user. Click Yes on the warning message then click Finish Close. From the menu bar, select File Close Company/Logoff. From the No Company Open window select the company file first on the list (this is the last company file that was opened). Click Open. Log into the file with the newly created External Accountant user. If you do not follow this instruction you will not be able to unlock the Accountant ToolBox. From the menu bar, select File Toggle to Another Edition. Select QuickBooks Pro then click Next Toggle. QuickBooks reconfigures the file to act like a QuickBooks Pro for Desktop version. If not defaulted, type the External Accountant user name then click OK to open the file. Follow the step-by-step instructions earlier in this section for unlocking the Accountant ToolBox. Testing your access prior to going to the client s site can save time. Make certain you are using the proper login credentials for this feature. Supplemental Guide QuickBooks Desktop Advanced Certification 17
Topic 2: Client Data Review Topic 2: Client Data Review LEARNING OBJECTIVES Identify tools that are unique to Client Data Review Identify features and limitations when using selected Client Data Review tools FEATURES AND BENEFITS Client Data Review (CDR) is a collection of tools and reports that accounting professionals use primarily to streamline the many tasks involved in reviewing, troubleshooting and correcting a client s QuickBooks data. Simple Engagement You might be engaged for a simple tax return preparation. CDR will prove useful as you reconcile the client s previous period balances to your filed tax return and make any needed adjustments to the books. Workflow for a Simple Engagement using Client Data Review in Accountant ToolBox: 1. 2. 3. 4. 5. 6. 7. Log in and unlock the Accountant ToolBox access in your client s file. From the menu bar, select Company Accountant ToolBox Client Data Review to open a formal review. Select the Dates for the Review and the Review Basis, then click Start Review. Select the Troubleshoot Prior Account Balances task, more details are provided later in this section. Select Reclassify Transactions and review for accuracy in your client s assignment of accounts, more details are provided later in this section. Select Open Working Trial Balance and add adjusting entries as needed. When completed, select Mark Review Complete, optionally Save as PDF, then print the Audit Trail of Review. Supplemental Guide QuickBooks Desktop Advanced Certification 18
Topic 2: Client Data Review Detailed Engagement If you have a more detailed engagement with your client, doing a thorough cleanup of your client s transactions, CDR can save you time and help you be more profitable. Adding to the simple engagement workflow mentioned previously you will find other Client Data Review tasks that will help you complete more detailed transaction corrections with very little effort. The author of this guide has written several books that include an entire chapter on using Client Data Review. You can download the entire chapter on using Client Data Review at: http://www.quick-training.com/quickbooks-2014- in-depth. ACCESS CLIENT DATA REVIEW Client Data Review is accessible so many ways now, offering you flexibility in what tools you decide to use. When deciding to use Client Data Review, consider the following: Sharing Your Changes If you request an Accountant s Copy file from your client, you can work in the convenience of your own office and access all the tools available with CDR. Your client continues to work in their copy of the file and can later import your changes made with CDR. Working at the Client Site or Hosted Data Access CDR via Accountant ToolBox when you are accessing your client s file on-site, remotely or even when the data is hosted in the cloud. Detailed Cleanup of Client s Data Choose which CDR tools you use depending on the type of engagement you have with the client. Access some CDR tools individually and access all CDR tools when opening a CDR Review. Supplemental Guide QuickBooks Desktop Advanced Certification 19
Topic 2: Client Data Review CUSTOMIZE CLIENT DATA REVIEW Choose from Cash or Accrual Basis When a CDR is launched you will need to select Cash or Accrual basis. The basis selected can differ from the default basis associated with the file. Supplemental Guide QuickBooks Desktop Advanced Certification 20
Topic 2: Client Data Review Customize Sections to Display You can customize the list of displayed cleanup tasks in CDR, however, the changes you make affect only the QuickBooks file currently opened. Additionally, some CDR tasks display only if the related feature in QuickBooks is enabled (Sales Tax, for example). Supplemental Guide QuickBooks Desktop Advanced Certification 21
Topic 2: Client Data Review Record Status and Task Notes To help in managing the review of a client s file, you have an associated status you can optionally assign to each task. This feature is useful for your own reference or if several accounting professionals are reviewing the same file. To assign a new status or change an existing status, click the Status drop-down list and choose from one of the available choices: Not Started (this is the default status assigned to all tasks when a review is started) In Progress Completed Not Applicable You can optionally record a note about a particular task. These notes are included in the CDR notes when Save As PDF is selected. Supplemental Guide QuickBooks Desktop Advanced Certification 22
Topic 2: Client Data Review CLIENT DATA REVIEW TASKS This section provides a closer look at some of the Client Data Review tools that are specifically used for advanced data reviews and cleanup tasks in your client s files. The original QuickBooks Desktop Certification exam you have already completed provided a more detailed look at each of the tools in CDR. Not all tasks need to be used in every client s data file. As you have seen in a previous section, you can customize the tools to work for your client. Here is our recommended workflow order that you can include or exclude at your choice. (You may want to start your review identifying the tools that are not available outside of CDR.) The scope of this course was to provide you with those more advanced tools in Client Data Review, and as such there are other tools in CDR that are not included in detail in this training. Open a Review When using Client Data Review, you can choose to open a formal review period and specify the dates and reporting basis, or you can choose to work individually with selected CDR tools. If you choose to open a review period, you will be able to access the following CDR tools that are not available outside a review: Troubleshoot Prior Account Balances Review List Changes Supplemental Guide QuickBooks Desktop Advanced Certification 23
Topic 2: Client Data Review Troubleshoot Prior Account Balances The primary purpose of the Troubleshoot Prior Account Balances task is to provide a window where QuickBooks can compare the prior year s ending balances (which you used to prepare financials, tax returns, or monthly and quarterly reviews) with what QuickBooks currently shows for that same date range. Your work is successfully completed in this window when no amounts remain in the difference columns this indicates that Balances in Accountant s Records agrees with Balances in Client s File for that same date. Keep in mind that if your adjustments include cash accounts, accounts receivable, accounts payable, sales tax payable or payroll liabilities, each of these accounts has other processes to consider. For example, if the adjustment includes a bank account, that newly created adjustment will display in the QuickBooks user s Bank Reconciliation window. Supplemental Guide QuickBooks Desktop Advanced Certification 24
Topic 2: Client Data Review Workflow when using the Troubleshoot Prior Account Balances for the first time: 1. 2. 3. 4. 5. 6. 7. After launching Client Data Review and selecting the dates and basis, click Start Review. In the Account Balances window, select Troubleshoot Prior Account Balances. If this is your first time using this with a client s file, read the message that displays then click OK. You can then choose to manually enter the Balances in Accountant s Records or click the Copy Balances button on the top left. With the Balances in Accountant s Records completed, note on the right if there are any differences reported. If there are differences reported, use the View Suggested Adjustments button in the lower right. Follow the prompts to enter the adjustment and, if selected, enter a reversing adjustment. Supplemental Guide QuickBooks Desktop Advanced Certification 25
Topic 2: Client Data Review Reclassify Transactions How often have you reviewed your client s QuickBooks data to see multiple transactions posted to the incorrect general ledger account? You probably do not want to spend the time needed to correct each individual transaction. A preferred method might be to create a journal entry transaction, which essentially reclassifies the amount out of the incorrect account and into the correct account. Access Reclassify Transactions with your Accountant ToolBox access. You can choose to use Reclassify Transactions while in a review or independent of opening a formal CDR review. Supplemental Guide QuickBooks Desktop Advanced Certification 26
Topic 2: Client Data Review To use Reclassify Transactions, follow these steps: 1. 2. 3. 4. 5. 6. From the menu bar, select Company Accountant ToolBox Reclassify Transactions. Accept the default From and To dates or change as needed. Select the reporting basis, Accrual or Cash. From the View drop-down, select Expense Accounts, Profit & Loss Accounts or Balance Sheet Accounts. (Optional) Select a specific name then choose Accounts: Show only those transactions in the Selected Account or All Accounts. (Optional) Select what type of transactions to display including: Non-item-Based (reclassify the TO account, this is the most common use) Item-Based (reclassify the class only) All (reclassify TO account only) 7. For all of the selected transactions, assign the Account to (for the reclassification) then click Reclassify. Supplemental Guide QuickBooks Desktop Advanced Certification 27
Topic 2: Client Data Review Open Working Trial Balance The Working Trial Balance provides a window to manage changes to a client s ending balances. You normally use this tool after you have matched the prior-year balances in the Troubleshoot Prior Account Balances task with your records and you need to review and correct the next accounting period. Supplemental Guide QuickBooks Desktop Advanced Certification 28
Topic 2: Client Data Review Review List Changes The Review List Changes feature is accessible with Accountant ToolBox only when you launch a review using the Client Data Review feature. The type of changes tracked include additions, deletions or modifications to the following lists: Chart of Accounts Items Fixed Asset Items (Learn more about these later in this module) Payroll Items Supplemental Guide QuickBooks Desktop Advanced Certification 29
Topic 2: Client Data Review Write Off Invoices Accounting professionals often need to adjust client s accounts receivable balances. Perhaps there were several small unpaid finance charge invoices, or over the year the client s customers did not pay the full amount of their invoices. Creating a customer credit memo and assigning the credit memo to the original open invoice used to be time-consuming. Often a journal entry was created, correcting the accounts receivable balance on the balance sheet but leaving the QuickBooks user with extra line details in the A/R Aging Summary or Detail reports. The Write Off Invoices feature is one convenient window where you can write off balances, review the suggested transaction and print the details for your customer. To use Write Off Invoices included with Client Data Review, follow these steps: 1. 2. 3. 4. 5. 6. 7. 8. From the menu bar, select Company Accountant ToolBox Write Off Invoices. Select an Age date range, or customize to define your own date range. (Optional) Type an amount in the Balance Due is less than field. (Optional) Chose what type of Transaction Types to include. Place a checkmark next to each invoice balance to be written off. Select Write Off Item in the lower left and choose a Write Off Date. Click Preview & Write Off. Click Write Off on the Confirm Write-Off window then close the Write Off Invoices window. Supplemental Guide QuickBooks Desktop Advanced Certification 30
Topic 2: Client Data Review NOTE: If sales tax is included on the invoices being written off, it would be prudent to use a Write Off Item that has a taxable status assigned in the Item list so sales tax payable is properly adjusted as well. Fix Incorrectly Recorded Sales Tax QuickBooks uses a special Pay Sales Tax dialog box to properly record the sales tax liability payments. When payments are made using other transaction types, such as Write Checks, Pay Bills or Make General Journal Entries, the Pay Sales Tax dialog box might not reflect the payments accurately. When accessing this CDR feature with your Accountant ToolBox, you will be able to find the incorrectly recorded transactions but not have CDR fix them automatically (as of the writing of this guide). When accessing this tool from your Accountant Desktop software, this CDR tool will both find and automatically fix these incorrectly recorded transactions. It can be fairly easy to see if this problem exists in the Pay Sales Tax window, Write Check transaction types that were created are shown as negative amounts due. Supplemental Guide QuickBooks Desktop Advanced Certification 31
Topic 2: Client Data Review When using CDR to correct these types of transactions, you will need to remind your client to reconcile the corrected transaction(s). If the original transaction was marked as cleared, the newly created TaxPmt type transaction will be included in the reconcile window for the bank account. Find Incorrectly Paid Payroll Liabilities This CDR task delivers another time-saving tool: It helps the accounting professional easily and quickly find payroll liability payments that were recorded incorrectly. When you select the menu or link in CDR to Find Incorrectly Paid Payroll Liabilities (Payroll Group), QuickBooks prepares a report titled Payroll Liabilities Paid by Regular Check. The figure below displays the results in true debit and credit format for each item found. This report finds a Write Checks transaction that was payable to a payroll item vendor. Supplemental Guide QuickBooks Desktop Advanced Certification 32
Topic 2: Client Data Review Closing a Review with Final Steps Keep a CDR Review open for as long as it takes you to finish. When you close out of a task, your work is saved. Additionally, as you are working, you can conveniently select a QuickBooks menu outside the Client Data Review and CDR refreshes automatically, including transactions created and modified. (Optional) As you work through the many tasks, you can record an overall note for the review or individual notes assigned to specific tasks. Closing a review includes the following: Saving the review as a PDF Reopening a completed review (prior to marking it as complete) Marking a review as complete allows you to open the next review for a new period Printing an Audit Trail of Review report Supplemental Guide QuickBooks Desktop Advanced Certification 33
Topic 3: Send General Journal Entries Topic 3: Send General Journal Entries LEARNING OBJECTIVES Specify the software requirements for using Send General Journal Entries Identify conditions when to recommend or not recommend using the Send General Journal Entries feature AVAILABLE WITH QUICKBOOKS DESKTOP SOFTWARE QuickBooks Send General Journal Entries works with QuickBooks for Desktop Pro, Premier or Enterprise 2013 or newer. NOTE: You can create a Send General Journal Entry in your QuickBooks Accountant 2013 or newer software and send this entry to your clients using QuickBooks Pro, Premier or Enterprise years 2013 or newer. In other words, the Send General Journal Entries method is not sensitive to the year it was created in. For example, you can create the journal entry in your QuickBooks Accountant 2015 version and send it for import into your client s QuickBooks 2013 desktop software. RECOMMENDED USES FOR SEND GENERAL JOURNAL ENTRIES With QuickBooks Accountant, you have flexibility in choosing what method of file sharing works best for you and your client. When considering a method, your client needs to continue daily accounting tasks while allowing you to review the data and create journal entries. This feature allows you to share changes to your client s data easily with an email attachment or saved file. Client Sends You Their QuickBooks File A best practice when using this feature is to have the business owner send the accountant any one of these types of files (other file types would not require the use of Send General Journal Entries functionality): QuickBooks backup (.QBB) QuickBooks portable company file (.QBM) QuickBooks working company file (.QBW) Supplemental Guide QuickBooks Desktop Advanced Certification 34
Topic 3: Send General Journal Entries Business owners can continue to work in their file while the accountant reviews the copy at his or her office. This avoids the restrictions imposed when sharing an Accountant s Copy file. The accountant s journal entries are emailed directly from QuickBooks, with no messy file transfers to worry about. Optionally the exported entries can be placed on a thumb drive and taken to the client s site. Clients simply click the attachment in the email or the file on the thumb drive to import the entries automatically into their file. The best part about this feature is that there are no new tools to learn for the accountant or the client. To use the Send General Journal Entries, follow these steps: 1. 2. 3. 4. 5. 6. 7. 8. 9. Open or restore the file you have received from the client. From the menu bar, select Company Make General Journal Entries. Create the journal entry as you normally would. Click Save on the Main tab of the ribbon toolbar or Save and New. From the displayed Make General Journal Entries transaction on the Main tab of the ribbon toolbar, click the Send GJEs icon. The Send General Journal Entries dialog box displays. Select a single journal entry or multiple journal entries. If needed, use the Dates or From and To fields to filter the displayed journal entries. Place a check in the box in front of each journal entry you want to send to the client. Optionally, click Select All or Deselect All. Click the Email as Attachment button. QuickBooks utilizes the email program specified within your QuickBooks preferences. The journal entries are attached automatically to your email. Optionally select Save as File and take the exported general journal entries with you to the client site. Supplemental Guide QuickBooks Desktop Advanced Certification 35
Topic 3: Send General Journal Entries NOTE: When a Send General Journal Entries file is created as either an email attachment or file, the file extension is.qbj. Your client simply needs to click on the file to import it into their own QuickBooks file. Avoid Manual Entry of Adjustments by Client Do you have clients who are challenged when trying to manually create your listed adjustments at tax time? Then using the Send General Journal Entries features is a win-win for you as well as for the client. Direct Access to the Client s File No Need to Use Send General Journal Entries If you have any of these situations when working with your client, there really is no need to use the Send General Journal Entries feature. Client sends you an Accountant s Copy (.QBY) Remotely accessing the client s file Working on-site with the client Supplemental Guide QuickBooks Desktop Advanced Certification 36
Topic 3: Send General Journal Entries WHEN A GENERAL JOURNAL ENTRY TRANSACTION TYPE IS NOT RECOMMENDED While listening to the show-and-tell and PowerPoint discussion videos that are provided for this module you saw demonstrations of why using a journal entry type of transaction might not be the recommended transaction type. Inventory Journal entries do not include the ability to assign an inventory part to the adjustment. Proper transaction type would be to use an Inventory Adjustment transaction. More about this in Module 5 Inventory. Payroll Journal entries adjusting payroll liabilities and expenses will affect the financials, but will not be included as adjustments to the prepared quarterly and annual state and government forms. Supplemental Guide QuickBooks Desktop Advanced Certification 37
Topic 3: Send General Journal Entries Job costing For QuickBooks users who manage their project profitability, using a Journal Entry transaction type does not provide the ability to assign adjustments to project budgeted items, resulting in Job Profitability reports not matching Profit & Loss by Job reports. Banking The obvious is when needing to adjust banking or credit cards. Using a journal entry can create confusion for the QuickBooks user when they attempt to reconcile the account. CONCERNS WHEN USING THE SEND GENERAL JOURNAL ENTRIES There are other concerns when using the Send General Journal Entries feature worth mentioning, they include: No Prompt to Create a Backup Since the data will be changed after the import, it would be prudent to advise your client to make a backup before importing the General Journal Entries Client Can Import Same Entry More Than Once Once the journal entry is imported, if the client tries to import it again, a message displays that it is already imported. My thoughts are that the tool is comparing the Entry No. to what already exists. The Entry No. cannot be modified by the client importing the journal entry. No Control if Multiple QuickBooks Files QuickBooks will import into the current open QuickBooks file; however, if the created general journal entries were from another file, a message displays to that effect, giving the user the choice to complete the import or not Clients Can Be Given Choice to Import There is a checkbox next to each selected journal for import; the user can de-select any entry and that entry will not be imported Supplemental Guide QuickBooks Desktop Advanced Certification 38
Topic 3: Send General Journal Entries BEST PRACTICES FOR ACCOUNTING PROFESSIONALS As with all processes of sharing our changes to a client s file with the client, some best practices should be in place. While this list is not intended to replace any and all of your controls, it provides some suggestions for making sure the process works smoothly between you and your client. Request printout of financials after import If duplicated, use Find to Locate Journal Entry Transaction Request a closing date and password be set NOTE: Share this link with your clients and watch a short demonstration about using this Send General Journal Entries feature, http://x.co/sendje. Supplemental Guide QuickBooks Desktop Advanced Certification 39
Topic 4: File Manager Topic 4: File Manager LEARNING OBJECTIVE Identify steps to working with the File Manager ACCESS FILE MANAGER Using File Manager takes the guesswork out of working with multiple clients files. It is easy to use and is included with your Accountant version software. Follow these steps to begin working with QuickBooks File Manager. Launching QuickBooks File Manager There are multiple Ways to Launching QuickBooks File Manager: Click the QuickBooks File Manager desktop icon Launch it from the Accountant Center in your QuickBooks Desktop Accountant software From the menu bar, select Accountant QuickBooks File Manager Click the Start button in Windows then select Programs QuickBooks File Manager NOTE: There is no need to purchase additional software. When you install QuickBooks Accountant Desktop or QuickBooks Enterprise Accountant, File Manager will install ready to use. Supplemental Guide QuickBooks Desktop Advanced Certification 40
Topic 4: File Manager Virtual Organization of Client Files One of the first actions to take with File Manager is to gather the many types of QuickBooks files you have collected. Keep in mind that File Manager is acting virtually and not making any changes to how you store your files physically. You might have your client s files stored on a local PC, on a connected server or both. File Manager lets you group them from whatever source. WHOM IS FILE MANAGER RECOMMENDED FOR? File Manager is included with your QuickBooks Accountant Desktop and QuickBooks Enterprise Solutions Accountant Desktop software. It then seems appropriate that the recommended user would be accounting professionals in particular, accounting professionals who collect at their office many QuickBooks files from their clients. However, if you have clients who manage multiple, perhaps even hundreds of QuickBooks files, for them a recommended purchase of QuickBooks Accountant Desktop would come in handy. I have done this numerous times for property development or management companies. Supplemental Guide QuickBooks Desktop Advanced Certification 41
Topic 4: File Manager EFFICIENCIES OF USING FILE MANAGER There are many ways that File Manager can help you work more efficiently with multiple client files. These include: Build a client list that creates a virtual view of your hard drive where your client files are stored. You can store files on a server, a local hard drive or both. Create user-definable client groups, such as Annual Review Clients, Monthly Review Clients or Payroll Clients, to name just a few suggestions Supplemental Guide QuickBooks Desktop Advanced Certification 42
Topic 4: File Manager Save your client file passwords in one place; QuickBooks File Manager will open the client s file without requiring the password View important information about your client s files without opening them Upgrade client files in batch to the newest release a real time-saver Open your client files from within File Manager and the correct year s version of QuickBooks opens automatically (you must have that version installed) Backup and restore your File Manager settings, which is useful when you buy a new computer or want to share one employee File Manager settings with another peer Supplemental Guide QuickBooks Desktop Advanced Certification 43
Topic 5: Toggle to Industry Editions Topic 5: Toggle to Industry Editions LEARNING OBJECTIVE Identify practical uses for the Toggle feature in QuickBooks Accountant Desktop AVAILABLE WITH WHICH VERSIONS OF QUICKBOOKS The Toggle feature is only available with QuickBooks Accountant Desktop and QuickBooks Enterprise Accountant Solutions. ACCESS FROM THE FILE MENU To access the Toggle feature, from the menu bar select Toggle to Another Edition. You can then choose what edition to toggle to from: Premier Edition (General Business) Premier Contractor Edition Premier Manufacturing & Wholesale Edition Premier Professional Services Edition Premier Retail Edition QuickBooks Pro NOTE: When you choose to toggle a currently opened file to any of the other editions, the data transactions are not changed. Some additional features or reports will be available while you are toggled into the other edition. Supplemental Guide QuickBooks Desktop Advanced Certification 44
Topic 5: Toggle to Industry Editions PRACTICAL USES FOR THE TOGGLE FEATURE There are several practical uses for the Toggle feature: Training customers on edition-specific features Answering questions specific to a QuickBooks edition Creating and memorizing industry-specific reports for sharing with users not currently using that edition Supplemental Guide QuickBooks Desktop Advanced Certification 45
Topic 6: Fixed Asset Manager Topic 6: Fixed Asset Manager LEARNING OBJECTIVES Distinguish the differences between the Fixed Asset List and the Fixed Asset Manager Recognize features and functionality available with Fixed Asset Manager BUSINESS USE: FIXED ASSET LIST Tracking the book value of long-term assets as they decline over time can be a tricky business. The amount by which they depreciate can affect not only the worth of a business but the size of a tax bill. It's important for the business to develop good record-keeping habits where such fixed assets are concerned. Tracking fixed assets with Fixed Asset Items enables the QuickBooks user to record such information as purchase date and price, whether the asset was new or used when purchased, and the asset's sale price if they decide to sell it. There are also customizable reports listing all the business s fixed assets. Supplemental Guide QuickBooks Desktop Advanced Certification 46
Topic 6: Fixed Asset Manager Share the following with your clients for using the Fixed Asset Item List 1. 2. 3. From the menu bar, select Lists Fixed Asset Item List. To record a newly acquired asset, from the Item button in the lower left, select New. Instruct your client to complete as much of the information as possible, as this will be helpful at tax time. Click OK when done. From the Fixed Asset List your client can: Manage the list of items Items on the Fixed Asset Item List can be made inactive, deleted and duplicated Create sales or purchase documents with the Fixed Asset Item Prepare a report of all the fixed assets and provide detail reports on all the Fixed Asset Items Supplemental Guide QuickBooks Desktop Advanced Certification 47
Topic 6: Fixed Asset Manager ACCOUNTANT USE: FIXED ASSET MANAGER When the Fixed Asset Manager is launched from within either a QuickBooks Accountant or QuickBooks Enterprise Solutions edition, it pulls in information about fixed assets from an open company file. Then the accountant can determine depreciation for the assets and post a journal entry back to the company file. The accountant can also enter assets in the Fixed Asset Manager and send that information back to the client s QuickBooks file. Fixed Asset Manager can hold more data about Fixed Assets than QuickBooks can record. Fixed assets can also be grouped into user-defined groups for reporting and filtering views of the assets. Here are some of the features included with the Fixed Asset Manager: Two-way integration with QuickBooks data of added or modified fixed assets A detailed, customizable asset entry screen Six depreciation bases (book, state, federal, other, AMT, ACE) Projected depreciation calculations Fixed asset disposition tracking Posting of journal entry to QuickBooks file Custom queries and sorting Full depreciation calculation overrides A wide variety of built-in depreciation reports and forms Multiple ways to export and import data NOTE: For more details on working with Fixed Asset Manager, from the Help menu in Fixed Asset Manager select Printable Manual. Supplemental Guide QuickBooks Desktop Advanced Certification 48
Topic 6: Fixed Asset Manager Supplemental Guide QuickBooks Desktop Advanced Certification 49
Topic 6: Fixed Asset Manager To use the Fixed Asset Manager, follow these steps: 1. With the client s file open in your QuickBooks Accountant Desktop software, from the File menu select Accountant Manage Fixed Assets. QuickBooks will automatically synchronize the assets on the Fixed Asset List in QuickBooks with the assets in the Fixed Asset Manager. The synchronization is both ways, updating both QuickBooks and Fixed Asset Manager. 2. 3. 4. 5. From the menu bar in Fixed Asset Manager, select Asset Add Asset. For each asset added, you will need to complete the name of the asset, assign the Fixed Asset account, Accumulated Depreciation/Amortization account and Depreciation/Amortization Expense account. Optionally create user-defined categories, locations and other user-defined lists for each asset in Fixed Asset Manager. Complete as much information as is needed to be tracked including date placed in service, cost or basis, tax system, depreciation method and much more. From the Fixed Asset Manager QuickBooks tab you can select to Post Journal Entry to QuickBooks. Supplemental Guide QuickBooks Desktop Advanced Certification 50
Topic 6: Fixed Asset Manager NOTE: Fixed Asset Manager Details are not included with the QuickBooks backup files. From within Fixed Asset Manager, select File Backup and store the files in a secure location. INTEGRATION WITH INTUIT S TAX PREPARATION SOFTWARE The Fixed Asset Manager integrates with Intuit s ProSeries Tax products, which makes it easier to get asset information from QuickBooks into the tax return. Supplemental Guide QuickBooks Desktop Advanced Certification 51