QuickBooks 2007/08 user guide

Copyright 2007/2008 Reckon Ltd. All rights reserved First printing, March 2007

Quicken Australia Locked bag 15 PO Broadway NSW 2007 Trademarks Acrobat Reader is copyright Adobe Systems Incorporated and Adobe, the Adobe logo, and Reader are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. Macromedia, Shockwave, and Flash are trademarks of Macromedia, Inc. Quicken, QuickZoom, QuickBooks and QuickBooks Pro are registered Trademarks and/or Service Marks of Intuit Inc., registered in the United States and other countries and used by Reckon under license. Other products are Trademarks of the respective manufacturers. Microsoft and Windows are registered Trademarks of Microsoft Corporation in the United States and/or other countries. Intel and Pentium are registered Trademarks of Intel Corporation in the United States and/or other countries. 2007/2008 Intuit Inc. 2007/2008 Reckon Ltd.

Australian Development Team Product Management: Sandy Mizyed, Dean Darke, Veronica Holmes, Omar Dabbagh, Kevin McDermott Project Lead: Adrian Bruce Software Development: Michael Davis, Wayne Qiu, Lincoln Maskey, Michael Thompson, Michael West, Carlo Pangilinan, Jason Lam, Shi Yan, Alon Frenkel Information Technology: Victor Ho, Ben Johnson, Andrew Leung, Supriya Ramesh, Matthew Spooner Technical Documentation: David Halls, Samantha Stone Quality Assurance: Adriana Marrone, Sebastian Babio, Bowen Chen, Khen Chu, Satish Gadde, Victor Montalva, Phillip Osman, Helio Rocha, Simon Hutchison, Peng Wang, Nathan Selby, Andrew Appleby Marketing: Paul Ibsen

Contents
Installing QuickBooks, 1
Learning about QuickBooks, 2 Using this manual, 2 Three steps to more QuickBooks help, 3 Quicken accredited professional partners, 4 Exploring QuickBooks with a sample company, 4 Installing and running QuickBooks, 4 Minimum requirements, 5 Installing QuickBooks, 5 Installing the QuickBooks Pro Timer from CD-ROM, 7 Upgrading from a previous version, 7 Activating QuickBooks, 7 Working with multiple users, 8 Setting up multi-user networking, 8 Client-server networks, 9 Going on from here, 10

Setting up a new company, 11

Setting up a company in QuickBooks, 12 Before you set up a company, 12 How many companies should I set up?, 13 What accounting method should I use?, 14 What accounting do I need to know?, 14 Whats the best way to track my type of detail?, 18 Should I use classes, jobs or types?, 22
Table of Contents iii

Reports that measure profitability, 22 Determining a start date, 23 Information to collect outside of QuickBooks, 24 Using the EasyStep Interview, 26 More about customers, jobs and items, 28 Final steps to completing your setup, 28 Fine tuning your accounts, 28 Entering your companys historical transactions, 30 Completing your customer, supplier and item information, 32 Adjusting opening balances for balance sheet accounts, 32 Setting up accounts to track equity details, 34 Setting your number, currency, time and date settings, 35 Things to consider after your company file is set up, 35 Creating reports to check your setup, 36 Maintaining your previous accounting system, 36 Connecting QuickBooks to the Internet, 36 Setting up an Internet connection, 37 Changing an Internet connection, 37 Updating QuickBooks to the latest release, 38 Getting updates from the Internet, 38 Updating from a CD-ROM, 39

Customers, jobs and items in detail, 41

Customers, jobs and items, 42 Should I track customers and jobs?, 42 What does QuickBooks mean by a customer?, 42 What does QuickBooks mean by a job?, 42
iv QuickBooks 2007/08

Changing the opening balance for a customer or job, 43 Why you probably need to set up items, 43 Items for what you sell, 44 Items for services or products you purchase, 45 Deciding how items should affect accounts, 45 How many different items do you need?, 46 Setting up items, 47 Where to find information about your items, 47 Types of QuickBooks items, 48 Setting up different units of measure for your items, 51 Reporting in different units of measure, 53 Adding items to your Item or Fixed Asset Item list, 54 Items for reimbursable costs in QuickBooks Pro and Premier, 56 Working with items, 58 Using items to save time, 59 Using items to subtotal on sales forms, 59 Showing partial payments received at the time of sale, 61 Changing prices or rates, 63 Editing item information, 63

Importing and exporting, 65

Importing from / exporting to other software, 66 Importing from other software, 66 Transferring lists between QuickBooks companies, 66 Exporting to other software, 66 Transferring information to Microsoft Word, Excel, Outlook or Customer Manager, 67 Exporting data for your accountant (Accountants Review), 68
Table of Contents v

Converting data from CashBook, 70 MYOB to QuickBooks Data Converter, 70 Export and convert your data, 72 Send your converted data to QuickBooks, 72

QuickBooks Basics, 73
Getting around in QuickBooks, 74 Understanding QuickBooks file types, 74 Using the Getting Started window, 74 Navigating in the working area, 75 Using lists, forms and registers, 76 Getting information about your company, 78 Finding information about your company file, 78 Working with navigators, 79 Creating reports, 80 Customising your forms, 83 Backing up your company data, 84 Recommended backup routine, 85 Backing up to a Zip disk, 86 Backing up to a tape, 87 Backing up to a 3.5 floppy disk, 87 Using Online Backup, 88 Searching for your backup file, 89 Restoring your backup file, 89 Condensing data, 90 Working with multiple users, 92 Sharing QuickBooks company files, 92
vi QuickBooks 2007/08

Users and passwords, 93 Recording who changed what in the Audit Trail, 96 Auditing your company file, 97 Solving printing problems, 99 When should I reinstall my printer driver?, 99 Nothing happens when you try to print, 99 The form is clipped on the top, bottom, left, or right, 99 Dates and the bottoms of letters are clipped on forms, 101 Printing is slow, 101

Tracking and paying tax, 103

How QuickBooks tracks tax, 104 Setting up tax preferences, 104 Turning on tax tracking and other tax preferences, 104 Choosing a tax reporting period, 105 Setting up and using tax codes, 105 Applying tax codes to items, 108 Creating new tax codes, 109 Setting a company-wide, default tax code , 110 Making adjustments to your Tax Payable account, 110 Making a general journal entry in your Tax Payable account, 110 Creating tax reports, 111 Types of tax reports, 112 Getting ready to prepare an activity statement, 112 Creating a tax report, 112 Changing the tax accounting periods on tax reports, 113 Paying a tax liability, 113
Table of Contents vii

Receiving a tax refund, 114 Keeping tax records, 114

Working with activity statements, 115

Activity statements in QuickBooks, 116 Getting ready to configure and generate an activity statement, 116 Are you ready for GST reporting?, 116 Why its important to set up properly - the big picture, 119 Check your results, 119 Configuring the activity statement, 120 Configuration window, 121 Configuration buttons, 123 Generating a BAS, 125 Generating an IAS, 126 Function buttons, 126 Lodging your activity statement with the ATO, 127

Working with multicurrency, 129

Multicurrency: an overview, 130 Setting up multicurrency, 130 Using the Currency List, 135 Using the currency calculator, 137 Exchange rates and how they affect your transactions, 137 Unrealised Gains and Losses, 138 Realised Gains and Losses, 139 Dealing with foreign customers, 140
viii QuickBooks 2007/08

Creating invoices for foreign customers, 140 Receiving payments from foreign customers, 141 Dealing with foreign suppliers, 142 Creating a purchase order for a foreign supplier, 142 Paying bills from foreign suppliers, 143 Transferring foreign funds, 144

Setting up payroll, 145

Payroll: before you begin, 146 QuickBooks Payroll, 146 If you dont use the payroll feature in QuickBooks, 146 Setting up payroll: an overview, 146 Collecting the information you need, 147 Payroll expense and liability accounts, 149 Customising payroll accounts, 149 Setting up your payroll items, 150 About the default payroll items, 150 Creating new payroll items, 151 Payroll items for expenses, 152 Payroll items associated with liabilities, 154 Setting up an employer-paid benefit or other expense, 155 Employees, 155 Entering standard employee defaults, 156 Setting up employees, 156 Summarising amounts for the year-to-date, 157 Entering year-to-date summaries for each employee, 158 Entering YTD summaries of liability payments, 160
Table of Contents ix

Making sure your payroll data is complete, 160 Changing payroll and employee information, 161 Changing payroll item information, 161 Changing employee information, 162 Customising pay slips, 164

Working with payroll, 167

Using payroll, 168 Paying your employees, 168 Selecting employees to pay, 168 Previewing, adjusting, and creating payroll payments, 169 Printing payroll cheques and pay slips, 172 Paying PAYG tax and liabilities, 172 Adjusting a payroll liability, 173 Paying payroll liabilities, 174 Preparing year-end payroll forms, 175 Creating and reviewing payment summaries, 175 Emailing pay slips and payment summaries, 176 Creating an electronic file (EMPDUPE), 177 Getting information about your payroll, 178

Using the Timer and Stopwatch, 181

Should I track time for subcontractors?, 182 How much detail should I track for time activities?, 183 Setting up QuickBooks Pro/Premier to track time, 185 Setting up to use time tracking with payroll, 186 Setting up and using the Timer, 186
x QuickBooks 2007/08

How the Timer works with QuickBooks Pro and Premier, 186 Setting up the Timer, 187 Using the Timer, 188 Importing Timer data into QuickBooks Pro/Premier, 190 Using the Stopwatch to time an activity, 191 Paying for time worked, 193 Charging customers for time worked, 194 Installing the Timer, 196 The Timer and QuickBooks Pro or Premier, 197 Installing from the QuickBooks Pro or Premier CD-ROM, 197 QuickBooks Pro/Premier Timer Reference Sheet, 197 Installing from 3.5-inch disks, 197 Starting the Timer, 197 Setting up the Timer, 197

Online Banking, 199

Online banking in QuickBooks, 200 Setting up online banking, 200 Setting up online banking preferences, 200 Enable an account for online banking, 201 Navigating the Online Banking Centre, 202 Importing statements, 202 Reconciling bank accounts with physical statements, 204 Matching bank deposits and credit card deposits, 205 Paying employees and suppliers using online banking, 205 Setting up your employees and suppliers for online banking, 205 Processing online banking transactions, 207
Table of Contents xi

Creating an online banking (ABA) file, 207 Recreating an online banking (ABA) file, 208

Further tools to help your business, 211

What are the Tools to help your business?, 212 Subscribe to Payment Services, 213 Setting up payment services preferences, 213 Processing a credit card payment or refund, 214 Recover outstanding debt using Debt Recovery, 215 Subscribe to Debt Recovery, 215 Setting up Debt Recovery preferences, 216 Email notice of outstanding debt, 216 Secure your data with Online Backup, 217 Subscribe to Online Backup, 217 Pay many superannuation funds at once using SuperLink, 218 Subscribe to SuperLink, 218 Remit SuperLink payments from QuickBooks, 218 Accept payments using Customer Payment, 220 Subscribe to Customer Payment Solution, 220 Customer Payment Preferences, 220

QuickBooks Premier industry-specific editions, 221

What are QuickBooks Premier industry-specific editions?, 222 What can you expect from an industry-specific edition?, 222 Industry-specific navigators, 223 Industry-specific menus, 223 More information, 224
xii QuickBooks 2007/08

Whats New in QuickBooks 2007/08, 225

Whats new in QuickBooks, 226 QuickBooks user feedback, 227

Contacting Quicken, 229

Technical support options and Quicken services Fee based services, 230 Quicken Advantage, 230 Quickens Web site, 230 Quicken accredited professional partners, 230 Talking to a technical support representative, 231 Be prepared when you call, 231 Solving problems on your own, 231 If the program hangs or locks up on you, 232 Contacting Quicken, 233 Australia, 233 New Zealand, 234 Philippines, 235 Singapore, 235 Glossary of Terms, 237 Licence Agreement, 243

, 230

Index, 249

Table of Contents

xiii

xiv

QuickBooks 2007/08

Installing QuickBooks

Learning about QuickBooks Installing and running QuickBooks Working with multiple users Going on from here

1
2 4 8 10

Welcome to QuickBooks 2007/08. This chapter helps you install your new software so you can start using it. This user guide covers the Accounting, Plus, Pro and Premier levels of QuickBooks. When you read QuickBooks in this manual, the reference is to the program in general, not a specific level. When there is an important distinction between levels (for example, where a feature is only available in higher levels), its noted in the text.

Learning about QuickBooks

Using this manual
The best place to start learning about QuickBooks is the user guide you are now reading. It is designed to give you a solid overview of how QuickBooks works and how you can make it work better for your business. Each chapter progresses from information covered in a previous chapter. If youre new to QuickBooks, reading from beginning to end will give you the best possible tour of QuickBooks. If youre already familiar with this product, you can use this manual as a reference to find information in a hurry. The content is designed to be conceptual, sometimes supported by step-by-step instructions of how to use a feature in QuickBooks. In other words, you wont find detailed information about every window. Thats in the in-product Help. Instead, you can expect to find clear descriptions of ideas or tasks in QuickBooks plus quick tutorials that help you make practical sense of the concepts.

Conventions
This manual uses a number of conventions to communicate information to you, as shown in the table below.
To indicate... A menu path A button that you click The name of a window We use... Choose Help menu > Help & Support. The button name is in italics. For example, click Activate after entering... The window name is in italics. For example, QuickBooks opens the Preferences window. The drop-down menu name in italics. For example, Select Tasmania from the State dropdown menu.

The name of a drop-down menu or list

Chapter 1

Three steps to more QuickBooks help

If the answer you are after is not in this guide, take the three-step approach to getting help with your QuickBooks software.

STEP 1Check the QuickBooks in-product Help

Your QuickBooks software comes with comprehensive in-product Help. In any QuickBooks window, simply press F1 or click Help for assistance with the feature you are using. QuickBooks displays the in-product Help window. If you dont find your answer in the index, click How Do I? at the top of the current QuickBooks program window. QuickBooks displays a list of featurerelated, frequently asked questions for you to choose from. To ask a specific question, type a search word or plain english question in the Ask field. (You can also access the inproduct Help by choosing Help menu > Help and Support.)

STEP 2Check the Quicken Knowledge Browser

The Knowledge Browser in the Support area of the Quicken Web site is an online technical support database that is available to all Quicken customers 24 hours a day, 7 days a week. Search for support articles which contain step-by-step instructions to get you through any known Quicken product issues. Alternatively, simply view our frequently asked questions on our support home page. In most cases, you will find the solution to your problem there.

STEP 3Call Quicken ExpressSupport

If you require technical support and prefer to speak to a Quicken representative, the Quicken ExpressSupport team is just a phone call away. Quickens trained technical support team is available to help you during business hours, Monday to Friday and 9am-4pm Saturday and Sunday. For more information about technical support, including hours of operation and charges for your country, see Contacting Quicken on page 233.

Installing QuickBooks

Quicken accredited professional partners

Developing a strong, knowledgeable network of professionals is an important part of our commitment to delivering exceptional support to our QuickBooks customers. Whatever your individual needs, Quicken has an expert to help. Quicken accredited consultants are there to help with software training and setup, to ensure your software serves your business most efficiently. Accredited Consultants analyse your business needs and requirements as well as provide ongoing support of your Quicken software. Quicken accredited bookkeepers give you more time to run your business by taking away the pain of paperwork. Accredited bookkeepers help you save time and money by providing services from basic bookkeeping through to BAS preparation and lodgement. Quicken accredited accountants have QuickBooks expertise and can assist you in all of your BAS lodgement and tax compliance needs. Accredited accountants must comply with strict accreditation requirements every year, so you know that your business is in the hands of a qualified professional. Contact Quicken to find a Quicken accredited professional partner to help with your business needs.

Exploring QuickBooks with a sample company

When you are learning to use QuickBooks, it is handy to be able to access meaningful data with which to practice, but that doesnt have any effect on your real business data. Use the sample company that comes with QuickBooks to get familiar with the software. For example, you can explore new features, enter test data and run reports to get a true feel for how the software works. 1. 2. Choose File menu > Open Company. Select the sample file.

Installing and running QuickBooks

The following pages describe what you need for hardware and software to run QuickBooks successfully. It then takes you through the installation and activation process.
Fast track to... Minimum requirements Installing QuickBooks Installing the QuickBooks Timer from CD-ROM Upgrading from a previous version Activating QuickBooks Refer to page... 5 5 7 7 7

Chapter 1

Minimum requirements
The following minimum system requirements apply to all levels of QuickBooks (with additional requirements for additional functionality as noted).
Recommended System Configuration 1.0 GHz Intel Pentium IV (or equivalent) with 256 MB of RAM Windows 2000/XP/Vista At least Internet Explorer 6.0 1024 X 768 resolution with small fonts High speed Internet access for online features/services Windows 2000/XP/Vista 425 MB of disk space for QuickBooks installation Internet Explorer 6.0 (provided with Desktop; requires 70 MB) At least 256 colour SVGA video 800 x 600 resolution with small fonts

Minimum System Requirements

350 MHz Intel Pentium (or equivalent) with 128 MB of RAM

Works with any printer supported by Windows 2000/XP/Vista 24x CD-ROM At least a 56 Kbps modem for online features/services that require Internet access Integration Requirements (QuickBooks Pro/ Premier) Multi-user (QuickBooks Pro/ Premier) Microsoft Word and Excel integration requires Microsoft Word and Excel 2000, 2002 or 2003. Microsoft Outlook synchronisation requires Microsoft Outlook 2000 or 2003. Multi-user mode is optimised for Microsoft Windows 2000 Server or Microsoft Windows Server 2003 client-server networks, and Microsoft Windows 2000/XP peer-to-peer networks. Novell NetWare is supported but not recommended.

Note: Make sure all your hardware is compatible with Microsoft Windows Vista before upgrading to a Vista environment.

Installing QuickBooks
Its easy to install QuickBooks. 1. Insert the QuickBooks CD into your computers CD-ROM drive. If the CD doesnt start automatically, choose Start menu > Run from the Windows desktop. Type d:\autorun.exe, where d is your CD-ROM drive. Follow the onscreen instructions.

2.

Installing QuickBooks

Whats happening when installing QuickBooks?

Your QuickBooks installation is facilitated by an Installer that prompts you to enter information so it knows how to best install your product. Following is a table that identifies the type of information you will need to enter during the installation process and why its important to include this.
Installer window Welcome to QuickBooks Setup (If QuickBooks detects a previous version) Select Options End User Licence What the Installer requires you to do Provide the Installation Key Code (IKC). Choose the version of QuickBooks company file that you are upgrading. Why it needs this This identifies to the installer that you are a legitimate owner of this software. Company files from different versions have different data structures. This tells QuickBooks how to upgrade your company file to the latest version. The Installer cannot install the program unless you agree to the terms and conditions in the licence agreement. So you can decide whether to install over a previous installation, to a new location suggested by the Installer, or to a folder of your choice. You can choose to carry over user and printing preferences, plus QuickBooks letters, from a previous version if it is installed on your computer. QuickBooks icons for starting an application are usually stored in a folder within the Program directory. But sometimes users like to store this information in an alternate location. You need to verify that youre happy with the way youve set up QuickBooks to install.

Acknowledge the terms of the licence.

QuickBooks Install Options

Specify where to install your QuickBooks version.

Transfer Existing Settings

Choose whether to transfer settings from a previous installation.

Select Program Folder

Verify the folder name from which the Installer will store QuickBooks icons.

Start Copying Files

Start the file copying process, which is the major part of the installation process.

Chapter 1

Installing the QuickBooks Pro Timer from CD-ROM

The QuickBooks Timer is designed to track and record time data that you then import in to QuickBooks Pro and QuickBooks Premier. Use it when you want to gather time data from people who dont have access to QuickBooks. The timer can run on any computer with a Windows operating system. You can install the timer from the QuickBooks Installation CD. 1. 2. Insert the QuickBooks CD in your CD-ROM drive. If you are asked if you want to install QuickBooks, click No. Open the Timer Installer. From the Windows Start menu, select Run. Type the drive letter associated with your CD-ROM drive, then type:\qbtimer\install.exe and click OK (for example, d:\qbtimer\ install.exe). Follow the onscreen instructions.

3.

For more information about the QuickBooks Pro Timer, see Setting up and using the Timer on page 186.

Upgrading from a previous version

If youve been using QuickBooks before and have a company file from a previous version, you wont want to lose all that valuable data. So its a good idea to upgrade your existing company file so that it works in QuickBooks 2007/08. This saves you the hassle of entering all that company information from scratch. Refer to the special documentation that came with your software, entitled Important Information For Installers, which provides detailed information on how to upgrade your company file to work with QuickBooks 2007/08.

Activating QuickBooks
The first time you open a company file, youll be prompted to activate QuickBooks. Quicken will activate QuickBooks through one of three methods: Internet Interactive Voice Response (IVR) Quicken Customer Service

The first time you open a company file, QuickBooks will take you to a Quicken Activation page. You need to follow the instructions, which include entering details in a Quicken Activation Web page from the Quicken Web site. QuickBooks will be activated automatically at the end of this process. Alternatively, QuickBooks might take you to another activation window that gives you a phone number to call Quicken. An IVR process will take you through the steps to get your licence key, which you need to enter in the Quicken Activation page that QuickBooks displays. If you dont have access to the Internet, QuickBooks will provide onscreen instructions for contacting Quicken and getting your licence key, which needs to be entered in the Quicken Activation page. You can use QuickBooks six times before you have to activate it. You might be reminded to activate during this time, but can delay the activation by clicking Cancel. Installing QuickBooks 7

Remember that you will only be able to print or view information in your company file, not to change it, if you have not activated after the sixth use. We recommend that you activate QuickBooks as soon as youve installed it. Follow the onscreen instructions that QuickBooks provides.

Activate your software without the automatic prompt

1. 2. 3. Open a sample file or your company file. Choose File menu > Activate. Follow the onscreen instructions.

Write down your licence key and keep it in a safe place. You will need it if you ring technical support. If you should lose your licence key, you can view it any time by choosing Help menu > My Licence Information.
If youre using QuickBooks Pro or Premier on a network, you must activate the software separately on each computer where the software has been installed. Activation does not flow through from one computer to other computers on your network.

Working with multiple users

In QuickBooks Pro and Premier, several people can work with your company file at the same time over a computer network. You can also set up your company file so that different users have different access to features (see Users and passwords on page 93).

Whats the difference between QuickBooks Premier and QuickBooks Pro?

QuickBooks Premier is multi-user software. When you buy your copy of QuickBooks Premier you are purchasing the right to install the software on up to three different computers. You can purchase up to two extra licences to make a total of five machines. Five users can then work in multi-user mode on the same company file.

Note: In New Zealand, Singapore and Philippines your initial QuickBooks Premier licence entitles you to install the software on up to five different computers.
QuickBooks Pro is multi-user enabled software. When you buy your copy of QuickBooks Pro, you are purchasing the right to install the software on ONE computer only. To create a multi-user environment, you need to purchase multiple copies (or subscription licences) of QuickBooks Pro and then network them together, up to a maximum of five users. Users can then work in multi-user mode on the same company file.

Setting up multi-user networking

Each computer on your network that will have QuickBooks installed on it must have a unique licence key, which is generated when you activate your software. You must activate QuickBooks on every computer where the software has been installed. 8 Chapter 1 The IKC that comes with QuickBooks Premier allows you to activate the software on up to three machines (for international versions, see Note above). The IKC that comes with QuickBooks Pro allows you to activate on only one machine.

Once you have activated up to five copies of QuickBooks Pro on different machines, you can network them together.

Note: If you are administering a peer-to-peer network and installing QuickBooks for other users in your company, be sure that Windows XP users have at least Standard user rights and that Windows 2000 users have Power Users Group rights. Users who are granted Restricted user (Users Group) access do not have the operating system rights to write to the registry keys and will not be able to use QuickBooks. If your QuickBooks CD is mounted on a shared CD-ROM drive. You can install from the mounted CD, but you cannot install across the network to a remote computer. That is, you must be sitting at the computer youre installing to. (You must still store the company file on the shared resource, or server.) Peer-to-peer networks
Peer-to-peer networks are ones that do not use a dedicated file server. This means that all the computers on it have the option to share their resources and there is no single machine that is used only to allow other computers to share files.

Note: Some peer-to-peer networking systems meant for home users may be too slow for QuickBooks to operate properly. If QuickBooks times out often on your network, consider moving to a faster networking system.
For example, if there are three computers on a peer-to-peer network. Each computer has one user (Jack, Amy and Sarah). Each of the users has a unique copy of QuickBooks installed with a unique licence key. The QuickBooks company file is only located on Sarahs computer. It is important to choose one location for your company file. The location should be accessible to all of the computers that need to use QuickBooks. You may want to put the company file on the computer of the person who uses QuickBooks the most, which allows that person to have the fastest access to it.

Client-server networks
Client-server networks are ones in which there is at least one computer dedicated to sharing files, printers, and other resources. This computer is usually not used by individuals to do their daily work. In a client-server network, there are several computers plus the file server. You will most likely want to put the company file on the server, where its accessible to all of the computers that need to use it.

Installing QuickBooks

Each user that needs to use QuickBooks, will have their own copy of QuickBooks installed with a unique licence key. The file server however, does not need to have QuickBooks installed.

Setting up multi-user networking

Ensure QuickBooks is installed on each computer thats going to use your company file (see Installing QuickBooks on page 4). Each copy must be activated and have a unique licence key.

Note: Your networked computers must all use the same version of QuickBooks Pro or Premier 07/08. That means that if you install an upgrade (or a service pack) to QuickBooks on one computer, you must install it on all your computers.

Setting up the Administrator and other users

Once you have installed QuickBooks, the Administrator should set up all the usersto a maximum of fivewho will share the company file (see Users and passwords on page 93).

Going on from here

Once youve successfully installed and activated QuickBooks, youre ready to start using QuickBooks. If you need to upgrade a company file from a previous QuickBooks version, refer to the Important Notes for Installers that came with your upgrade software. If youre new to QuickBooks, youll need to consider how you want to use QuickBooks for your specific business and set up a company file. This is shown in Setting up a company in QuickBooks on page 12.

10

Chapter 1

Setting up a new company

Setting up a company in QuickBooks Before you set up a company More about customers, jobs and items Final steps to completing your setup Things to consider after your company file is set up Connecting QuickBooks to the Internet Updating QuickBooks to the latest release

2
12 12 28 28 35 36 38

This chapter tells you what information you need to gather to complete the QuickBooks EasyStep Interview. It also helps you make good choices as you set up your company in QuickBooks and suggests things you can do after you complete your setup.

Setting up a company in QuickBooks

QuickBooks uses a company file to store necessary data so that you can run your business. It then records in the company file relevant data to reflect your daily business transactions and make the right calculations in accordance with the way your business is set up. For example, the company file will define your chart of accounts, whether you are an accrual or cash based business, whether you track stock items or services, run payroll and so on. Once it knows this, based on how you have set it up, the company file can record relevant day-to-day business tasks such as creating invoices or paying bills. This data is then available for QuickBooks calculations such as tax liabilities. You need to set up a company file before using QuickBooks. This is made easy with the QuickBooks EasyStep Interview, a wizard that asks you a series of questions about your business. Based on your answers, QuickBooks will then create a company file structure to support your style of business. Be sure to answer the questions carefully. Most of the information you provide can be changed later in QuickBooks, but some decisions you make cannot be reversed. Weve organised information in this chapter into sections around setting up a company in QuickBooks, as shown in the following table.
Fast track to... Before you set up a company Using the EasyStep Interview Final steps to completing your setup Things to consider after your company file is set up Connecting QuickBooks to the Internet Updating QuickBooks to the latest release Refer to page... on this page 26 28 35 36 38

Before you set up a company

Before you use the EasyStep Interview to set up your company, its important to make some decisions outside of QuickBooks. This will ensure that you make the best decisions in setting up your company file. You need to consider: How many companies to set up What accounting method to use What accounting knowledge you need to set up QuickBooks The best way to track your type of detail Whether to use classes, jobs or types

12

Chapter 2

Reports that measure profitability Determining a start date Information to collect outside of QuickBooks

How many companies should I set up?

If you operate a business, your tax office expects you to show clearly all sources of income and to document any business expenses you claim as deductions. For tax purposes, its usually best to set up a separate QuickBooks company for each business that files its own activity statementfor example, if you have two shops and file one activity statement for each, you need to set up two company files in QuickBooks. However, if you have a farm that grows wheat and raises pigs and you file only one activity statement for the entire operation, you need only one company file in QuickBooks. In cases like these, in which you have one business but need to track different segments of it, set up one company file in QuickBooks and use classes. Classes are another way of categorising income or expenses in addition to income or expense accounts.
You can use classes to track the following Account executives Partners Construction industry standard categoriesfor example, general, site work, concrete or masonry Departments Moniesfor example, general or building You could start with two main classes for restricted and unrestricted funds, and then make each fund a subclass of a main class. Locations (if the business has more than one) Manufacturers or product lines Industry examples Advertising, consulting Law firms, consultants Construction contractors Businesses that budget by department, retailers Nonprofit organisations, religious groups

Restaurants, retailers, service businesses Distributors, manufacturing reps, sales agents

You can set up subclasses of existing classes if you need to subtotal information about classes on reports.
To learn about... Turning on the preference for using classes Adding classes and subclasses Search the Help index for... classes, turning on in QuickBooks classes, adding

Setting up a new company

1

What accounting method should I use?

Cash versus accrual bookkeeping
There are two common methods of bookkeeping: cash and accrual. Your method determines how you report income and expenses on your tax forms. When you begin your business, you need to decide which bookkeeping method to use. Its best not to switch to a different accounting system after you choose one. However, you can switch between cash and accrual reports in QuickBooks at any time, without affecting your accounting.

Cash basis accounting

Some small businesses record income when they receive the money and expenses when they pay the bills. This method is known as bookkeeping on a cash basis. If youve been recording deposits of your customers payments but havent been including the money customers owe you as part of your income, youve been using cash basis accounting. Similarly, if youve been tracking expenses at the time you pay them, rather than at the time you first receive the bills, youve been using cash basis accounting.

Accrual basis accounting

In accrual-basis bookkeeping, you record income at the time you make the sale, not at the time you receive the payment from the customer. Similarly, you enter expenses when you receive the bill, not when you pay it. Most accountants feel that the accrual method gives you a truer picture of your businesss finances.

How your bookkeeping method affects QuickBooks

QuickBooks enables you to enter your transactions the same way no matter which bookkeeping method you use. When you first install QuickBooks, it uses accrual basis accounting by defaultfor example, it shows income on a profit and loss statement for invoices as soon as you record them, even if you havent yet received payment. It shows expenses as soon as you record bills, even if they are unpaid.

What accounting do I need to know?

Using QuickBooks requires very little accounting knowledge. All you need to understand is what a chart of accounts is and the different types of accounts on it.

Your companys chart of accounts

When you keep books for a business or enterprise, you want to track where your income comes from, where you put it, what your expenses are for and how you pay them. You track this flow of money through a list of accounts called the chart of accounts. Your QuickBooks chart of accounts can have: Balance sheet accounts Income accounts Expense accounts Cost of goods sold accounts Non-posting accounts, including purchase orders and estimates which do not appear on your balance sheet

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QuickBooks creates some of these accounts automatically. For example, QuickBooks creates an Accounts Receivables (A/R) account when you first create an invoice. Youll add other accounts during the company setup, such as a current accounta bank account you use to carry out daily business transactions. Remember that you can create and modify your accounts later at any time.

Types of accounts
Balance sheet accounts
Your chart of accounts includes balance sheet accounts. These accounts track: What you have (assets) What people owe you (accounts receivable) What your company owes to other people (accounts payable and other liabilities) The net worth of your company (equity).

The following table describes the various types of QuickBooks balance sheet accounts.
Balance sheet account type Asset Bank QuickBooks account type Use to track What you have and what people owe you Transactions in current, savings, and term deposit accounts. You can also use this type of account for petty cash. Transactions between you and your customers, including invoices, payments from customers, deposits of customer payments, refunds, and adjustment notes. QuickBooks automatically creates an A/R account when you first create an invoice. Assets that are likely to be converted to cash or used up within one year, such as the value of your stock on hand, promissory notes due within a year, prepaid expenses, and security deposits. Depreciable assets your business owns that arent liquid (not likely to be converted into cash within a year), such as equipment, furniture, or a building. Any asset that is neither a current asset nor a fixed asset, such as long-term promissory notes. What your company owes to other people Accounts Payable (A/P) Credit Card Outstanding bills. When you first enter a bill, QuickBooks automatically creates an A/P account. Credit card transactions for your business expenses. One account per credit card.

Accounts Receivable (A/R)

Other Current Asset

Fixed Asset

Other Asset Liability

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Balance sheet account type

QuickBooks account type Other Current Liability

Use to track Liabilities that are scheduled to be paid within one year, such as tax, payroll taxes, accrued or deferred salaries, and short-term loans. Some businesses include the current portion of long-term liabilities in this kind of account. Liabilities such as loans or mortgages scheduled to be paid over periods longer than one year. Net worth of your company (equity = assets liabilities)

Long-Term Liability Equity Equity

A company builds equity from three sources: Investment of capital in the business by the owners Net profit from operating the business during the current accounting period Retained earnings, or net profits from earlier periods that are carried forward into the current tax year and that have not been distributed to the owners

Balances for balance sheet accounts

The Chart of Accounts window shows a balance for each account except for the special equity account, Retained Earnings.
One of the first things you should do when you start a new business is create a Bank Account.

Hint: If you have multicurrency turned on, the chart of accounts also shows the currency denomination of each account. For more information on multicurrency, see Working with Multicurrency on page 130.

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Income and expense accounts

Income and expense accounts track the sources of your income and the purpose of each expense. When you record transactions in a balance sheet account, you usually assign the amount of the transaction to one or more income or expense accounts. For example, you not only record that you took money out of your current account but you keep track of what you spent the money on, such as utilities, advertising, or office supplies. There are no registers for income and expense accounts but you can create reports to show totals for these accounts over a period of time. To create a report on an income or expense account, in the chart of accounts, double-click the account for which you want a report.

Cost of goods sold (COGS) account

Many businesses that track stock have one cost of goods sold (COGS) account. A COGS account contains the cost of goods or raw materials that you have sold. QuickBooks adds this account to your chart of accounts the first time you create a stock item. Your chart of accounts lists the type for this account as Cost of Goods Sold. QuickBooks uses this account to track how much you paid for goods and materials held in stock that you eventually sold. After a sale, QuickBooks adjusts your cost of goods sold by multiplying the quantity sold by the average cost of each item.

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Whats the best way to track my type of detail?

The following table describes situations that require a business to track a particular type of detail and the best way to track this detail in QuickBooks.
Situation You need to track details of services youre providing or products youre selling. How to record in QuickBooks Set up items in the Item list for your services and products. Record the sale, using the appropriate items. On sales forms you can edit the item descriptions to add detail you want the customer or client to see. Set up jobs for the customer on your Customer:Job List. When entering any sales for a job, enter both the job and customer name in the Customer:Job field. If you dont have QuickBooks Pro or Premier, turn on the preference for tracking expenses by job. When entering any expenses for a customer or job, enter the customer name or the job and customer name in the Customer: Job field. Turn on class tracking, and set up a class on your Class List for each fund/monies. On every transaction, enter a class as well as an account (where appropriate). Comments You can get reports about the items for services and products that you have sold, including quantities and dollar amounts by item. For more... search the Help index for: items

You need to track multiple jobs for the same customer.

Reports by customer or by job give subtotals by job and then a total of jobs for the customer.

search the Help index for: jobs, setting up

You need to track expenses by customer or job.

You can track expenses by customer alone if you dont use jobs. The Profit & Loss by Job Report lists both income and expenses with a separate column for each customer and job.

search the Help index for: customers, adding new profit and loss reports

You need to track income and expenses by monies, location, department, or business segment. Examples: Religious and arts organisations, retail stores with multiple locations.

The Profit & Loss by Class Report has a column for each fund/ monies (class), so you can see income and expenses by fund.

search the Help index for: classes, turning on in QuickBooks

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Situation You have employees and need to see detail about payroll taxes and other payroll expenses. Example: Any company with employees. You need to track certain details about your customers and suppliers. Example: Payment terms, customers tax, customers ship to address, tax information, your account number with a supplier.

How to record in QuickBooks Use the QuickBooks payroll feature to track your payroll.

Comments The payroll reports show all your payroll information.

For more... see Setting up payroll: an overview on page 146.

Find and fill in the appropriate field in the New or Edit Customer window or the New or Edit Supplier window. The field you want may be on the Additional Info tab.

If you set up customers and suppliers by using the QuickAdd option, go back later, to add missing information.

search the Help index for: customers, adding new customers, editing information for suppliers, adding, adding a supplier suppliers, editing information for

You want to see reports for a particular group of customers, jobs, or suppliers. Examples: Residential vs. commercial customers; remodelling jobs vs. new construction; suppliers that sell materials vs. subcontractors.

When setting up a customer, job, or supplier, assign a type. (Job types are available only in QuickBooks Pro and QuickBooks Premier.)

You can filter a relevant report to limit the transactions to those for customers, job, or suppliers of the type (or types) you specify. You can filter a report of your Customer:Job List or Supplier List to limit the names to those for the type (or types) you specify. On reports that summarise amounts by item, QuickBooks provides an amount for each subitem, and then a subtotal for all subitems of the same item.

search the Help index for: customer types, job types, supplier, adding report customisation

On your Item List, you want to group similar items together. Example: A school store wants to group clothing items and also group book items.

Set up a main, or parent, item (for example, clothing). Then set up subitems of the parent item (for example, T-shirt, cap). Use the appropriate subitem when entering a sale or purchase of items.

search the Help index for: subtotals, on sales forms

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Situation You want to track information that QuickBooks doesnt already track for customers, suppliers, employees, or the items you sell. Example: Patients insurance company, item size or colour.

How to record in QuickBooks Set up a custom field for tracking the particular kind of information. Fill in the custom field, where relevant, for new and existing customers, suppliers, employees, or items. To display and print the custom field on sales forms or purchase orders, customise the form to add the new field. Set up a main, or parent, account for the subtotal (for example, construction income). Then set up subaccounts of the parent account (for example, labour, materials, subcontractors). Use the appropriate subaccount when QuickBooks requires you to specify an account.

Comments You can use the same custom field for customers, suppliers, and employees if you choose. Custom fields for items are only for items you sell or purchase (services, parts, and other charges). You can filter a relevant report to limit the transactions to forms that have specific text in a custom field. On reports that summarise amounts by account, QuickBooks provides an amount for each subaccount and then a subtotal for all subaccounts of the same account.

For more... search the Help index for: custom fields, about estimates, customising

On your profit and loss statement, you want to see subtotals for accounts that have something in common. Example: A construction company wants a subtotal for construction income for labour, materials, and subcontractors.

search the Help index for: subaccounts, then click the link Why use subaccounts?

Tracking income and expenses with classes

Do you need to track income and expenses for separate parts of your business or organisation? The following table has examples of what you can track by using classes in QuickBooks. The word class has nothing to do with teaching or learninginstead, it is a way of classifying income or expenses in addition to assigning an income or expense account.
Use classes to track the following Account executives (particularly useful if using an employee incentive program linked to the employees business goals and profitability) Construction industry standard categories (General, Site Work, Concrete, Masonry, and so on) Departments Industry examples Advertising PR Consulting Construction contractors Businesses that budget by department Retailers

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Use classes to track the following Monies (General, Building and so on) You could start with two main classes for restricted and unrestricted funds, and then make each fund a subclass of a main class. Locations (if the business has more than one)

Industry examples Nonprofit organisations Religious groups

Restaurants Retailers Service businesses Distributors Manufacturing reps Law firms Consulting Any other partnerships Distributors Manufacturing reps Sales agents

Manufacturers Partners

Product lines

After you set up classes, you can enter them on any income or expense transaction including payroll transactions. You cant assign classes to transactions that involve only balance sheet accountsfor example, transfers from current to savings, setup of stock, setup of fixed assets. You can set up subclasses of existing classes if you need to subtotal information about classes on reports.
To learn about Turning on the preference for using classes Entering a class on a transaction Adding classes and subclasses Search the Help index for classes, turning on in QuickBooks classes, assigning to a transaction classes, adding

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Should I use classes, jobs or types?

Ask yourself if you are trying to track income or expense activity associated with a particular customer or group of customers or group of jobs. If your answer is yes, then you use jobs, customer types, or job types to track expenses by job. The following table shows what you can do with each of these.
To do the following Keep track of sales for separate jobs or projects for one customer. Do this in QuickBooks Set up and use jobs for the customer on the Customer: Job List. When entering or editing a customer, assign a customer type. Examples of reports to use... Sales by Customer Summary (which shows each job separately) Sales by Customer Summary, filtered for one customer type Profit & Loss by Job, filtered for one customer type Sales by Customer Summary, filtered for one job type Profit & Loss by Job, filtered for one job type

See income or expenses for one type of customer, as distinguished from another type. Example: A PR writer wants to compare a restaurant with retail clients. (QuickBooks Pro and Premier only) See income or expenses for one type of job, as distinguished from another type. (Jobs of the same type can be for different customers.) Example: A construction contractor compares kitchen remodels with office remodels. Assign expenses to a customer (or to a particular job for a customer).

When entering or editing a job, assign a job type.

On every expense transaction for that customer or job, enter the customer name (or the customer and job name) in the Customer:Job field.

The following reports always break down amounts by customer. If you have jobs, they also break down amounts by job. Profit & Loss by Job, Job Profitability (QuickBooks Pro and Premier only) Profit & Loss Budget vs. Actual

If you are tracking a segment of your business that is independent of your customers and jobs, set up a class for the particular business segment. Then enter the class name in the Class field of every income or expense transaction for that segment.

Reports that measure profitability

The value and performance of your company can be summarised by two reports: the balance sheet and the profit and loss statement. How you set up your accounts will greatly influence the level of detail you can get on these reports. You may also want to create the Statement of Cash Flows Report, which details the net change in your cash during a period.

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The balance sheet

A Balance Sheet is a financial snapshot of your company on one given date. This report is useful when applying for a business loan or at yearend to get an account of your companys equity, assets and liabilities.

The profit and loss statement

A Profit and Loss Statement, also called an Income Statement, shows your revenue, expenses and net profit or loss that is, income minus expensessummarising the revenue and expenses of your business by category (first income, then expenses). The net income of your business is calculated as income minus expenses.

Determining a start date

New Business
If your business has no financial transactions yetthat is, you are starting up your business at the same time you are setting it up in QuickBooksyour start date is today. You can go on to Information to collect outside of QuickBooks on page 24.

Existing Business
Your start date is the date on which you begin managing your business finances in QuickBooks. It determines what information you need to enter in the EasyStep Interview and afterwardsfor example, you could choose today as your start date, in which case you will need to enter how much money you have in each of your accounts and the amounts that your customers owe you and you owe your suppliers. Or, you could choose an earlier date, in which case youll also need to enter all the business transactions youve made between your start date and today.

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The advantage of choosing today as your start date is that you dont need to enter many historical transactions, which saves you time. The advantage of choosing an earlier date (and entering your business historical transactions) is that youll be able to see a lot more detail in your business reports. To choose a start date thats best for your company, consider these questions: When does your companys financial year start? How close is today to the end of your financial year? Do you have an accurate balance sheet for your current financial year? Do you have an accurate profit and loss statement for your current financial year? How far back in time are you willing to enter historical transactions (old invoices, bills, bank account transactions)? Will you be tracking payroll in QuickBooks?

Hint: Although you can change your start date later, it determines much of your setup. Its easier to decide on the best start date now rather than later.
If its almost the end of your companys financial year, consider finishing it using your old system of bookkeeping. Then set up your company in QuickBooks with a start date of your financial year-end so you can use QuickBooks for the new financial year. Youll have the detail for each financial year, and you wont have to do a lot of work setting up. If it is not near the beginning of your financial year, decide which is more important to you: Do you want to have full detail in QuickBooks for the current financial year? Do you want to enter relatively few historical transactions (covering the period between your start date and today)? If youre not going to enter your historical information for the full financial year, you may want to choose a start date at the beginning of a calendar quarter, especially if youre going to use a payroll. If your business generates a lot of invoices, bills or cheques, you probably dont want to enter more than three months of historical transactions. On the other hand, if your business has relatively few transactions, you may be willing to enter several months of historical detail.

Information to collect outside of QuickBooks

Who owns your business?
If you have not already done so, start by determining what type of business ownership is right for you. Sole proprietorships. A sole proprietorship is a business owned by one person. Partnerships. A partnership is an unincorporated business owned by two or more persons. In a partnership, each partner owns a share of all assets and liabilities. Each partner may have invested in the partnership and each receives a specified share of profits. Partners do not receive salaries but they may withdraw money against their share of profits.

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Limited company. A limited company is owned by its shareholders. Unlike a sole proprietorship or a partnership, a limited company can pay a working owner a salary.

Check with your accountant or your government tax office to make sure you understand the tax responsibilities for your type of business ownership.

Other important information youll need

The following table lists the information that you will need to complete the EasyStep Interview and also where you will find it. You should be able to enter most of the information in the Interview, but there may be some areas that you will need to come back to after completing your company setup. You can leave and come back to the interview at any point.
Information you need Company legal name and address. Tax Registration ID (ABN). You must have a Tax Registration ID (ABN) if you collect tax. The dates of your accounting period: first month of your financial year, first month of your income tax year, your QuickBooks start date A preprinted activity statement your business received from your tax office. Chart of accounts for your business. Tip: If you do not have an existing chart of accounts, dont worry. The EasyStep Interview helps you choose an appropriate chart of accounts for your industry. Names of the people in your company who will use QuickBooks, and which areas of your financial records you want them to have access to. Balances for these types of accounts: credit card loan and line-of-credit bank Where to find it Owner, your accountant, or tax forms. Your government tax office. Your records or accountant.

Your accountant or tax office. Your accountant or previous bookkeeping method.

See Working with multiple users on page 8.

Statements covering your start date up to today for all bank accounts, including current, savings, and fixed term deposits. All uncleared cheques, deposits, or other itemsfor example, credit card receipts. Balance sheet prepared by your accountant. Accountant or your tax office.

How much tax you owe.

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Information you need List of types of items you sell (products and services) including: item number or name current sales price or hourly rates the tax code that is usually associated with the item, income account for tracking sales of the item For stock only: Purchasing cost Quantity in stock Total value of stock for the item List of customers, including: Addresses Contact names Phone numbers Outstanding invoices List of suppliers, including: Addresses Contact names Phone numbers Outstanding bills Value of your assets. For fixed assets, you also need the original cost and accumulated depreciation. Equity information. All the money you have put into the company, plus the sum of the retained earnings (the net profit or loss) for each year your company has been operating. Payroll information.

Where to find it Your company records.

Your company records.

Your company records.

Balance sheet prepared by your accountant. Your accountant.

See Setting up payroll: an overview on page 146 for details.

Using the EasyStep Interview

Important: QuickBooks Premier industry-specific editions come with company files that are partially set up based on a specific industry; therefore, the EasyStep Interview is not available. For more information, see QuickBooks Premier industry-specific editions on page 222.
The EasyStep Interview walks you through the process of setting up your entire business in QuickBooks. It takes about an hour to complete, but if for some reason you need to exit the interview, you can click Leave at any time. The EasyStep Interview remembers where you left off. 2 Chapter 2

For a list of the questions that appear in the Interview see the EasyStep.txt file in the QuickBooks program directory. You can use this list to organise your information for the Interview.

Starting the Interview the first time you start QuickBooks:

The first time you start QuickBooks, it displays a window with several options. One is to create a new company. Choose this option and click OK to start the EasyStep Interview.

Opening the EasyStep Interview at other times:

With your company file open, choose File menu > EasyStep Interview. The interview picks up where you left it and you can continue on.

You cant change information by returning to the EasyStep Interview and answering the questions differently. If you need to change information you entered in the EasyStep Interview, change it directly in QuickBooks. The EasyStep Interview is designed to help you with the initial setup of your company file, not for editing it.

Getting around in the EasyStep Interview

The EasyStep Interview is grouped into six sections. After you complete all the sections, your company file will contain all the basic information about your business that is needed to maintain your books. General: Lets you enter company information, choose a chart of accounts appropriate for your business, decide on QuickBooks preferences, and specify a business start date.

Complete the General section of the Interview before going on to other areas. QuickBooks wont know enough about your company to ask the rest of the Interview questions unless the General section is completed first.
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Income & Expenses: Lets you review the income and expense accounts on your businesss chart of accounts and create new accounts, if needed. Income Details: Lets you specify whether your business income is from services and/or products you sell. Based on the information provided, QuickBooks determines which income tracking and accounts receivable features you need. Opening Balances: Lets you enter information about the customers who owe you money as of your start date, suppliers to whom you owe money as of your start date, and balances in your balance sheet accounts as of your start date. Payroll: Lets you enter information like tax file numbers and birth date for your employees, set how often you will pay them, and set up payroll items (which you use to assign rates of pay, and other deductions and additions to pay cheques for employees). Whats Next: Describes some common tasks in QuickBooks that you may want to complete after you have finished the Interview.

Hint: Some questions ask you to make a decision that is not easily reversed. When this is the case, youll see a warning symbol:

More about customers, jobs and items

During setup you may be wondering whether to set up customers, jobs or items. There are good reasons to set these up and many ways you can use these in your company file, increasing the efficiency of your business. Refer to page 42 for detailed information on how you can use these elements to support the way you do business in QuickBooks. Use this chapter to make an informed decision when making choices as you work your way through the EasyStep Interview.

Final steps to completing your setup

This section provides you with the following information to help you to complete company setup: Fine tuning your accounts Entering your companys historical transactions Completing your customer, supplier and item information Adjusting opening balances for balance sheet accounts Setting up accounts to track equity details Setting your number, currency, time and date settings

Fine tuning your accounts

QuickBooks sets up a chart of accounts for you during the Interview. Before you begin entering transactions, make sure your chart of accounts is complete and that it accurately represents how your business works. Change account names and edit, delete, or add

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accounts to make your chart of accounts reflect your companys financial activity, if you have to. You can adjust the opening balances of the accounts in your chart of accounts, too. For more information, see Adjusting opening balances for balance sheet accounts on page 32.

Its important to decide on an account structure that meets your needs now. Although you can edit your chart of accounts later if you need to, its much easier to make changes before you start entering transactions.
You can fine-tune your chart of accounts at any time by doing the following: Add new accounts or subaccounts. You can add subaccounts to balance sheet accountsfor example, fixed asset accountsas well as to income and expense accounts. Turn on and use account numbers. QuickBooks has an option for specifying account numbers in addition to names. If the account is one that QuickBooks added for you, it already has a number but you can change it. Change the name or number of an existing account. Enter or edit an opening balance for a balance sheet account if the original opening balance is incorrect. Arrange accounts of the same type in alphabetical order (or numerical order if account numbers are turned on). Rearrange the order of accounts within the same account type. Make one existing account the subaccount of another (or, conversely, move a subaccount to a higher level).

You can drag accounts to a new position on the chart of accounts. When your accounts are not in alphabetical or numerical order and you add a new account, QuickBooks places the new account above the other accounts of the same type.
To learn about Adding new accounts or subaccounts Turning on account numbers Changing account names or numbers Changing or entering an opening balance for a balance sheet account Search the Help index for accounts, adding to your chart of accounts accounts (managing), numbering accounts (managing), editing opening balances, changing for existing accounts opening balances, entering for existing accounts lists, sorting entries

Arranging accounts (and other lists) in alphabetical or numerical order

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To learn about Reorganising accounts within the same account type; also, reorganising other lists that enable subentriesfor example, Customer:Job list Remove accounts from your chart of accounts

Search the Help index for lists, reorganising entries

accounts, deleting

Using account numbers

To better maintain your chart of accounts, develop and follow consistent account naming and numbering conventionsfor example, some accountants like you to add a numbering scheme to your accounts: 1000-1999 - Assets 2000-2999 - Liabilities 3000-3999 - Equity 4000-4999 - Income 5000-5999 - Expenses 6000-6999 - Other income and expenses Adding numbers can help you identify the type of accounts, thereby speeding up your account selection on various forms.
To learn about Changing your chart of accounts Search the Help index for accounts, adding, editing, deleting

Entering your companys historical transactions

If youve decided on a start date that is before todays date, youll need to enter past transactions to have complete financial records from your start date forward. Then your QuickBooks records will be as complete as if you had started using the program on your start date. Enter historical transactions in this order: 1. 2. 3. 4. 5. 6. 7. Invoices youve sent out since your start date. Purchase orders youve issued since your start date that have not been received in full. Cash or cheques youve received since your start date. Bills youve received since your start date. Bills youve paid since your start date. Deposits youve made to any of your accounts since your start date. Any other payments youve made (for things other than bills) since your start date.

The order you enter historical transactions is important. For example, QuickBooks wont know how to credit a customer payment unless youve previously recorded the invoice to that customer.
Enter transactions in your bank account last, because your accounts payable and accounts receivable affect your bank account. By the time you enter all of your historical transactions, your cheque register will be mostly up-to-date. 0 Chapter 2

To learn about... Entering historical information

Search the Help index for... historical transactions

Entering current transactions with historical ones

You dont have to enter all your historical transactions before you start using QuickBooks for your current ones. Enter current transactions as they occur so you dont get behind. Then catch up with historical transactions when you can. Remember, though, that your account balances will be off until youve entered all the past transactions. If current and historical transactions are related, enter the earlier one firstfor example, if you receive a payment today for an invoice you have not yet entered, enter the invoice first and then use QuickBooks to record the payment. That way, QuickBooks links your transactions correctly to each other.

Entering historical payroll information

If you are going to use payroll, enter historical payroll information so QuickBooks has complete year-to-date records of wages and salaries youve paid. QuickBooks needs this information to compute accurate tax information and payroll reports. See Setting up payroll: an overview on page 146 for more information.
To learn about Entering historical payroll information Search the Help index for Year-to-date amounts, payroll

Entering bank account information

If you entered all your historical transactions, your current account or savings account register already contains entries reflecting bills youve paid, cheques youve written for other purposes, and deposits youve received. But there are other transactions that you must enter to make your account registers complete: Cheques or other payments you created before your start date but werent cashed until after your start datefor example, cheques written a few months ago but not cashed until recently. Deposits you made before your start date, but which didnt appear on statements until after your start date. Cheques or other payments you made after your start date that were not for bills or accounts payablefor example, credit card payments. Deposits made after your start date that were not customer payments. Bank charges, fees, or interest paid to your account.
Search the Help index for registers, entering transactions in

To learn about Entering information in account registers

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Completing your customer, supplier and item information

During the Interview, you entered information about customer and supplier open balances. Now you need to enter more information, such as addresses, phone numbers, and credit limitsthough its not necessary to enter this information for all customers and suppliers at once.

Hint: If you use QuickBooks Pro or Premier with Microsoft Outlook or QuickBooks Customer Manager, you can synchronise information about customers and suppliers (such as addresses and phone numbers). This way you have all the information up-to-date in all areas. To learn about synchronising contact information, search the Help index for contact management, synchronising names with a contact manager.
Items are the goods, services and other things you buy and sell. QuickBooks starts a list of items when you go through the Interview but youll want to add to this list and refine the information youve already entered.
To learn about Adding a new customer Adding a new supplier Item types and uses Search the Help index for customers, adding suppliers, adding items, about

Adjusting opening balances for balance sheet accounts

After creating your company in the EasyStep Interview, you may need to enter additional opening balances or make adjustments to the account balances youve entered.

To adjust an opening balance for an account:

1. 2. 3. Choose Lists menu > Chart of Accounts and double-click the account that should have an opening balance. Click anywhere on a blank entry at the end of the register, change todays date to your QuickBooks start date and leave the Ref and Payee fields blank. Type the opening balance into a column as follows.
Type of account Bank Asset, liability or equity Credit card Type the opening balance amount into the following column Deposit Increase Charge

4.

Select Opening Bal Equity in the Account field.

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Note: If you have not entered an opening balance for any of your accounts, you will have to create an Opening Bal Equity account. Enter accounts, equity in the in-product Help Index for information on creating an equity account.
5. Click Record.

These accounts may also need adjusting if you do any of the following:
Collect tax, record the amount you owe as of your start date. If you have entered your historical invoices and purchases, do not include the amount you owe since your start date. Instead, check whether you owe more than the invoices cover and, if so, adjust your tax liability accordingly. For more information, see Setting up tax preferences on page 104.
To learn about Recording the tax you owed as of your start date Adjusting your tax liability Search the Help index for tax, historical data tax, adjusting

Adjust the Uncategorised Income and Uncategorised Expenses accounts, if youre using accrual-basis accounting. When you enter unpaid opening balances for customers, QuickBooks assigns the income to an account called Uncategorised Income. Similarly, when you enter unpaid balances owing for suppliers, QuickBooks assigns the expenses to the Uncategorised Expenses account. If you keep your books on a cash basis, QuickBooks does not show these two accounts on your profit and loss statement until a customer makes a payment, which is the expected behaviour. You do not need to make any adjustments. If you keep your books on an accrual basis, QuickBooks does show these two accounts on your profit and loss statement as of your start date. Your accountant may want you to make an adjustment so that the income from all invoices and the expenses from all bills before the start date are also tracked on an accrual basis, regardless of whether payment has occurred. Ask your accountant whether this situation applies to you.
To learn about Adjusting for Uncategorised Income and Expenses Search the Help index for Uncategorised Expense account Uncategorised Income account

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Adjust for current income and expenses if your start date is not at the beginning of your financial year. If you set up your company in QuickBooks with a mid-year start date and you know what your income and expenses are from the beginning of your financial year to your start date, you can enter adjustments for them. Then, when you create a profit and loss statement in QuickBooks, it will be accurate from the beginning of the financial year to any date after your start date. To get this information, have your accountant create a year-to-date profit and loss statement (also called an income statement) for your current financial year through your start date.
To learn about Adjusting income and expenses for mid-year setup Search the Help index for adjustments, income and expenses

Distribute earnings and equity from before your start date. After you have entered all of your opening balances and made other adjustments, you may want to distribute the amount in your Opening Bal Equity account to other equity accounts if you want to identify retained earnings or the equity of several owners.
To learn about Distributing earnings and equity from before your start date Equity carried over from previous financial periods Moving the amount in the Opening Bal Equity account to other equity accounts Search the Help index for Opening Bal Equity account equity, retained earnings from equity, transferring from Opening Bal Equity

Setting up accounts to track equity details

Your companys equity comes from two sources: Money invested in your company (capital investments) Profits of your company

Of course, the owner can also take money out of the company. Such withdrawals, called owners draws, reduce the company equity. QuickBooks sets up two equity accounts automatically: Opening Bal Equity For every balance sheet account you set up with an opening balance, QuickBooks records the amount of the opening balance in the Opening Bal Equity account. (Asset account opening balances increase the equity; liability account opening balances decrease the equity.) Retained Earnings If you have data for more than one financial year, the QuickBooks balance sheet has a balance for the Retained Earnings account equal to the net profit from previous financial years. The balance for the Retained Earnings account does not display on the chart of accounts.  Chapter 2

Some people like to track owner investments, owners draws, and retained earnings before the QuickBooks start date by putting them in separate equity accounts. If you decide to add additional equity accounts, QuickBooks still adds the Retained Earnings and Net Income lines on your balance sheet.

Equity accounts for sole proprietorships

Because all equity of a sole proprietorship company belongs to one person, tracking equity can be very simple. As of your QuickBooks start date, all equity is in the Opening Bal Equity account. You have several options: Keep the equity in this account and perhaps rename the account to something like Owners Equity. Transfer all the equity out of Opening Bal Equity into Retained Earnings. This action is appropriate for companies that have built up assets as a result of earnings before the QuickBooks start date. From now on, you can take the owners draws out of the Retained Earnings account. Set up additional accounts (or subaccounts) to track the owners investments, owners draws, and earnings before your QuickBooks start date.

When setting up a new account for an owners draws, enter a negative opening balance to show the total draws before the QuickBooks start date. The negative opening balance indicates that the draws have reduced the companys equity. Or, enter a zero opening balance and simply record draws from now on.

Setting your number, currency, time and date settings

Your Microsoft Windows settings affect how QuickBooks displays numbers, currency, time, and dates.

To set your number, currency, time and date settings:

1. 2. 3. 4. 5. Click Start on your Microsoft Windows screen and choose Settings > Control Panel. Double-click Regional Options or Regional Settings. Use the tabs to display and edit your number, currency, time and date settings. Click OK. Close the Control Panel.

Things to consider after your company file is set up

This section details the things you need to consider once you have set up your company file: Creating reports to check your setup Maintaining your previous accounting system

Setting up a new company



Creating reports to check your setup

After youve finished setting up your company in QuickBooks and making any adjustments, you should create reports to check that QuickBooks has the right numbers. In both QuickBooks and your former accounting system, create a Profit and Loss Statement and a Balance Sheet. Each report should cover the beginning of your financial year through to your QuickBooks start datefor example, if your financial year began on 1 July and your start date was 1 September, create reports that cover 1 July to 1 September. Both reports should show the same balances for your accounts.

Maintaining your previous accounting system

If your business existed before you began to use QuickBooks, make sure you keep your previous accounting system complete in case your government tax office requires information from your previous years of business. You should keep any software and the hardware your former accounting system requires along with the relevant files.

Connecting QuickBooks to the Internet

This section provides you with the following information to help you connect QuickBooks to the Internet: What you need Why you should connect QuickBooks to the Internet Connecting to the Internet Changing an Internet connection

What you need

Your PC must be connected to the Internet through an Internet Service Provider (ISP). Your work PC may be connected through a local area network (LAN). If you can read email or browse the Web, you are connected to the Internet.

Why you should connect QuickBooks to the Internet

You dont need Internet access to use QuickBooks, but the ability to go online can easily double the power and flexibility of your software. It enables you to take advantage of Internet-only features in QuickBooks. Consider these additional possibilities: Explore other opportunities with Tools to help your business. Choose Company menu > Business Services Navigator. (See Tools to help your business on page 211 for more details.) Receive QuickBooks updates. Download and install QuickBooks software updates as they become available.



Chapter 2

Setting up an Internet connection

If you are a new user
If you are a new user, you are immediately prompted to register QuickBooks. If you choose to do so online, QuickBooks helps you set up your Internet connection. Its a good idea to register as soon as you can so that you can begin using all of the QuickBooks features.

Hint: If you did not activate your copy of QuickBooks immediately after installation, you can do so at any time by choosing File menu > Activate QuickBooks. (If you do not see Activate QuickBooks under the File menu, then QuickBooks is already activated.)

If you are upgrading from a previous version

After you install QuickBooks, youre prompted to activate QuickBooks. If you owned a previous version of QuickBooks, QuickBooks 2007/08 uses the same Internet settings as your previous version. If you have changed your Internet Service Provider or switched from using a modem to using a direct connection you can change your settings manually.

Connecting to the Internet

1. Choose Help menu > Internet Connection Setup. If you have not used QuickBooks on your computer before, QuickBooks automatically launches the Internet Connection Setup Wizard. Follow the instructions and click Next to move to the next window. Repeat for each window and then click Done.

2. 3.

Changing an Internet connection

If you already have a connection to the Internet, you can modify the connection settings. You can also set up other ways QuickBooks can connect to the Internet. Doing so gives you an alternate way to connect to the Internet if your regular connection is down for some reason. 1. 2. 3. 4. 5. 6. 7. Choose Help menu > Internet Connection Setup to display the Internet Connection Setup window. Select Use my computers Internet connection settings to establish a connection when this application accesses the Internet and click Next. Click Advanced Connection Settings to display the Internet Properties window Click Add to create a new dial-up networking connection. Follow the instructions and click Next to move to the next window, and repeat this step for each window. Click OK and repeat for each Internet connection profile you want to create. Each profile you create displays in the Internet Connection Setup window. Click Done.

Setting up a new company

7

If QuickBooks doesnt detect your Internet connection, try the following: Close QuickBooks, then connect to an Internet service provider. When you have successfully connected to the Internet, re-open QuickBooks. Display the Internet Connection Setup window and select Use my computers Internet connection settings to establish a connection when this application accesses the Internet.

Updating QuickBooks to the latest release

This section provides you with the following information that enables you to update QuickBooks: Getting updates from the Internet Updating from a CD-ROM

From time to time, Quicken provides updates to QuickBooks that you can download from the Internet. These updates might be: A service pack that Quicken provides to fix a problem users experience after QuickBooks is released A new feature or service Timely information that is relevant to your business (such as tax table updates)

If you do not have a company file available but want to update QuickBooks, open one of the sample data files included with QuickBooks, then update the software as you normally would.

Getting updates from the Internet

In QuickBooks, the Update QuickBooks window gives you a convenient way to download updates from the Quicken server to your computer. To download an update, you need to have set up QuickBooks to work with an Internet connection (see Connecting QuickBooks to the Internet on page 36). You should check for updates about once a month. Download times for updates vary depending on the speed of your Internet connection, the size of the update files, and the amount of traffic on the Internet.

Note: To download a QuickBooks update, you will need a Customer ID and PIN. Your Quicken Customer ID was sent to you with your product registration details and should be noted on any correspondence that Quicken has made with you. If you are unable to locate your Quicken Customer ID, speak to a Quicken representative. For a list of contact details see Contacting Quicken on page 233.

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1.

Do one of the following: Choose File menu > Update QuickBooks. Connect your Internet browser to www.quicken.com.au. Choose Support menu > Downloads > Updates & Service Packs. Locate the row containing your QuickBooks product and click the associated Updates & Service Packs icon. Read through the list of updates to locate the one relevant to you, then click the product name link to download the update. Type your Customer ID, PIN and click Login. Follow the prompts to download and install the update.

2. 3. 4. 5.

Sharing updates among multiple users

Note: If you use QuickBooks Pro or Premier in multi-user mode, you need to install updates on each computer that has QuickBooks installed on it.
You can either connect to the Internet from each computer that has QuickBooks installed on it, or you can download the update to one computer on your network and share itfor example, if one or more users dont have Internet access. To share updates, you need to be sure that all your users can access the location on your network where the updates are downloaded. Therefore, each computer running QuickBooks must be: Networked properly Configured to share files across the relevant network

Updating from a CD-ROM

If you dont have Internet access, you can have an update mailed to you on a CD-ROM (fees may apply). For more information, contact Customer Service (see page 233). When you receive the CD-ROM, install the update as you would install any other software.

Before installing from a CD-ROM

1. Ensure your QuickBooks licence key is recorded somewhere safe. Weve provided a space for you to record your licence key on the second page of this guide. Back up your company files.

2.

To find your licence key and other QuickBooks information, choose Help menu > My Licence Information.

To install your QuickBooks update from CD-ROM

Follow the detailed instructions you receive with your update.

Setting up a new company



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Chapter 2

Customers, jobs and items in detail

Customers, jobs and items Should I track customers and jobs? Why you probably need to set up items Setting up items Working with items

42 42 43 47 58

This chapter explores in detail how customers, jobs and items work in QuickBooks. Use this chapter as a reference to decide how you might use these elements in your company file to support your business.

Customers, jobs and items

You can set up customers, jobs and items in QuickBooks to reflect the way your business operates. The better these settings in QuickBooks reflect the way you do business, the better QuickBooks can support your business. Its therefore important to understand the many ways you can set up customers, jobs and items to work in QuickBooks. You can then set up your company file more efficiently. This chapter explores: Whether you should track customers and jobs Why you probably need to set up items Setting up items Working with items

Should I track customers and jobs?

This section provides you with the information about the QuickBooks terms customer and job and how to change the opening balance of your company.

What does QuickBooks mean by a customer?

In QuickBooks, a customer can be a person, company, client, homeowner, tenant or so forth. Some businesses dont need to keep track of the names of customersfor example, a retail store or service business that always receives payment with the sale or service. However, here are some situations in which you would want to track customer names: Customers receive your goods or services and then pay you later. Customers are supposed to pay a regular monthly fee, and you want to track who has paid and who hasnt. You want to track income (and perhaps expenses as well) by customer.

If youre using QuickBooks for an organisation that receives money but doesnt really sell anything, you probably dont need to set up customersfor example, a nonprofit or religious organisation with members making contributions or paying dues can track the deposits without making the members customers.

What does QuickBooks mean by a job?

In QuickBooks, a job is a project done for a particular customer. You must always associate a job with a customer. Use jobs if you do (or expect to do) more than one job for the same customerfor example, Michele does freelance writing for a large company that supplies a separate purchase order for each job. Richards plumbing business has to keep track of the separate jobs it does for a general contractor. On the other hand, if your company never does more than one job per customer, or you do not want to track individual jobs, you dont have to enter job namesfor example, Jessicas printing company refers to each customer order as a job. However, even though Jessica gets repeat business from customers, all she cares about is whether the customer has paid, so she doesnt need to set up jobs for her customers. 2 Chapter 

Besides using projects for jobs, you can be creativefor example, if you: Manage several blocks of units, set up the building addresses as customers and the individual units as jobs. Invoice against purchase orders (POs), set up each PO number as a job. Have a practice or organisation that sends one statement to a family to cover individual members of the family, set up the family members as jobs. Have multiple estimates per customer, search the Help index for estimates, by job.

Reports about jobs in QuickBooks apply to customers as well. You dont have to set up jobs in order to use these reportsfor example, the profit and loss by job report actually applies to both customers and jobs. If you have customers but not jobs, you will still see information about your customers.

Changing the opening balance for a customer or job

When you first set up a customer or job, you have a chance to enter the opening (unpaid) balance for the customer or job as of a specific date. The date should be your QuickBooks start date (that is, the date when you enter opening balances for all accounts, customers, and suppliers). When you enter the customers opening balance in the EasyStep Interview or New Customer windows, QuickBooks creates an invoice for the amount and date you specify. This invoice is probably the first transaction in the customer register. (There should not be any opening balance transaction if the customer had no unpaid balance as of the start date.) You can change the customers opening balance invoice by finding it in the customers register and then editing it. If you didnt enter an opening balance but want to create one now, enter an invoice dated on or before your start date. Summarise amounts owed as of the start date by entering an item on the invoice set up as a nontaxable Other Charge. Assign the account Uncategorised Income.
To learn about Displaying a customers register Editing a transaction in a register Entering an invoice Setting up an Other Charge item Search the Help index for customers, registers for registers, editing entries invoices, creating other charge items

Why you probably need to set up items

This section provides you with the following information to help you decide whether or not to set up items. It includes information on: Items for what you sell Items for services or products you purchase Deciding how items should affect accounts How many different items you need Customers, jobs and items in detail 

Items for what you sell

If your business provides a servicewriting, hairdressing, consulting, legal advice, house painting, or any other serviceyou may charge by the hour and list the number of hours and your rate on your sales forms. Or, you may simply charge a flat rate for the service. If your business sells products or parts, you probably list them on sales forms that you give your customers. In QuickBooks, both kinds of businessesservice and productcan benefit by setting up items to track the services they provide or the products they sell to customers.

Note: In QuickBooks, sales is a broad term. It refers to any business action that generates income in exchange for services or products, even if you dont think of what you do as sellingfor example, a psychologist with patients, a graphic designer with clients, and a roofing contractor with customers all would set up items in QuickBooks for what they sell.

Benefits of setting up items

Here are some specific benefits of setting up items: You can use sales forms in QuickBooks to track the details of how your business earns its income. Estimates and all sales formsinvoices, sales receipts, adjustment notes require items. So do QuickBooks statement charges, which print on statements. You can fill out sales forms or enter statement charges quickly. QuickBooks automatically enters the description and rate or price you entered in the items setup window. When you enter a quantity, QuickBooks calculates the amount. When you record a sale (remember, it can be for a service), QuickBooks automatically tracks the income in the appropriate income account. You can fill out a sales form or enter a statement charge, keep track of your sales, and keep track of incomeall in one step. You can create reports that show total units of each service or product sold as well as dollar amount totals.

If youre still not sure you need items

Here are some examples of businesses or organisations that use items. John is the bookkeeper for a country club where members sign for meals, drinks, and fees and receive a statement at the end of the month. John uses items in QuickBooks for each of these. He uses the items to enter statement charges for each member and create monthly statements. Mario is a dentist. He has items set up for the various services he provides to his patients: cleaning, x-rays, filling cavities, and so on.

In contrast, some businesses or organisations probably dont need items. Here are some examples. Jack is keeping the books for his church. The church has members who donate and contribute money, but the church doesnt sell anything or charge for specific services, so Jack doesnt need to create any sales forms.



Chapter 

Marina does facials in her home evenings and weekends. Her clients pay at the time of their visit. Marina simply wants to track the income received. She doesnt care to track in QuickBooks how many facials she gives or to whom. Min is a commissioned sales representative. She takes orders for a manufacturer that then invoices the customers directly. Min tracks the orders in a spreadsheet, not QuickBooks, because the sales are income for the manufacturer, not Min. When Min receives a commission cheque, she enters it in QuickBooks as a deposit.

Items for services or products you purchase

Once youve decided to set up items for the services or products you sell, you might want to use items for the services and products you purchase. If you purchase services or products for a specific customer or job, QuickBooks Pro and Premier enable you to set up items that you can use for both purchases and sales. See Items for reimbursable costs in QuickBooks Pro and Premier on page 56. On the other hand, if you dont have QuickBooks Pro or Premier and you dont track stock, you should not use the same items for both purchases and sales. Instead, use items for entering sales only. If you purchase property such as buildings, vehicles, computers, or heavy machinery that will contribute to the operating capacity of your company for several years, QuickBooks Pro and Premier enable you to set up items that can help you track their depreciation. You need to track the depreciation of such fixed assets both for tax purposes and to get an accurate accounting of the worth of your business. Your accountant can give you more information about using fixed asset items to record purchases and subsequent sales of fixed assets.

Deciding how items should affect accounts

When you set up most items, you must specify which account it should affect when you use the item on a sale or purchase. Then, when you record the sale or purchase, each item on it affects the appropriate account. In other words, while you are recording the items on a sale or purchase, QuickBooks is adjusting all the right accounts behind the scenes. If you sell an item (service, non-stock, and other charges), you normally associate an income account with it. If you purchase the same item, QuickBooks Pro or Premier provides a way to associate a second account, usually an expense account, to be used on purchases. See Items for reimbursable costs in QuickBooks Pro and Premier on page 56.
To learn about accounts for tracking stock Search the Help index for stock, accounts

Customers, jobs and items in detail



If you purchase a fixed asset, you normally associate a fixed asset account with it. When you sell a fixed asset, you normally associate a fixed asset account with the asset. Before you set up your items you have to decide how much detail from your sales and purchases needs to show up in reports about your accounts. You can see details of your sales (such as number of units and the dollar amount of each item sold) on QuickBooks sales reports. You dont need to have the same level of detail on your profit and loss statement, as in the following examples. Qian has a single income account for all sales income. He doesnt want to see any further breakdown on his profit and loss statement and he doesnt need it for his activity statements. Chloe, on the other hand, wants to split up income from services and income from materials she buys for a job and then puts on the customers invoice. Thus, she uses one income account for all her service items and a second income account for all her non-stock part items (for her materials). Like Qian, she has far more items than income accounts.

How many different items do you need?

Every business is different but knowing how QuickBooks works can help you decide how specific your items should be. First, once you use an item in a transaction, you can never delete the item unless you delete the transaction or condense (see page 90) your file to remove old transactions and old items. Fixed asset items are not condensed. Thus, if you sell unique items or a rapidly changing assortment of items, you probably want to use more general items. If the prices vary, you can enter prices on the sales formfor example, Joshua has a mens clothing store. Because his stock of styles changes so much, he doesnt use QuickBooks to track stock. To track his sales, he has more general items such as Suit, Sports Jacket, Dress Shirt. On the other hand, if you have two standard services or products that are similar except for their rate or price, you can save time recording sales by having a separate item for each. Then QuickBooks can fill in the correct rate or price on the sales formfor example, Mali employs three stylists in her beauty salon. When she cuts a clients hair, she charges more than the rate for a haircut by one of the employees. So she has two separate items for haircuts. You can change the rate or price of any item at any time. You dont have to create a new item in order to raise your prices. In QuickBooks Pro and Premier, you can create price levels to increase or decrease stock, non-stock, and service item prices. Use them on sales forms to automatically adjust the price of an item. You can create price levels for any customer you have a special relationship with. Finally, if there are items you purchase but never sell but that are not fixed assetsfor example, supplies for your officeyou probably shouldnt bother to put them on your Item Lists. They will lengthen your list, and youll find it harder to pick out the items that you do sell. However, if you plan on using QuickBooks purchase orders, youll need to set up the items you purchase, even though they are only for your office use.



Chapter 

Setting up items
This section provides the following information about adding items to QuickBooks: Where to find information about your items Types of QuickBooks items Setting up different units of measure for your items Reporting in different units of measure Adding items to your Item or Fixed Asset Item Lists Items for reimbursable costs in QuickBooks Pro and Premier

You can add items at any timeas part of setting up QuickBooks or whenever you think of an item you need to use. Remember, items are for the services or products you buy and sell. You also may need special calculating items that calculate subtotals and discounts and that apply specific tax rates. The EasyStep Interview helps you set up a few items, so you may already have some items. Fixed asset items are not set up from the EasyStep Interview.

Where to find information about your items

When you set up an item, you enter information you can use over and over again without retyping, such as the following: Name or code Description Price per unit or rate per hour, if applicable (Sales items) Income account to assign income from the sale (Purchase items) Expense account for purchases of the item

QuickBooks stores information about your items on the Item List.

On the Item List, items are in order of type. Within the same item type, they are usually in alphabetical (or numerical) order. You can change this.

Subitems are indented under the parent item. Use the menu buttons at the bottom of the list to add, edit, sort or perform other activies on items.

Information about fixed assets is available in the Fixed Asset Item List. The Fixed Asset Item List is only available in QuickBooks Pro and Premier. Customers, jobs and items in detail 7

To learn about Price levels (Pro and Premier only) Displaying the Item or Fixed Asset Item List Sorting the Item List (and other lists) Moving items (and other list entries)

Search the Help index for price levels items, list of sorting, list entries lists, reorganising entries

Types of QuickBooks items

In addition to items for services or products, QuickBooks has several other types of items. This section explains what each type of QuickBooks item is designed to do.
Item type Service Use for Services you charge for or services you purchase Examples: professional fees, labour Usual effect on accounts On sale: Increases income. On purchase: Increases expenses. Comments In QuickBooks Pro and Premier, you can set up a service item so that it can affect either income or expenses, depending on where you use it. Price levels can be used on service items Available only if the stock feature is turned on. Search the Help index for stock, turning on. Price levels can be used with stock parts. Search the Help index for price levels. You can set up different units of measure for stock parts. For information on units of measure, see Setting up different units of measure for your items on page 51.

Stock Part

Products you purchase, track as stock, then resell Examples: Electrical outlets, T-shirts

On sale: Increases income, increases cost of goods sold, and decreases stock assets. On purchase: Increases stock assets.

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Item type Stock Assembly

Use for Assembled products you purchase or create and build, track as stock, then resell. Examples: Gift baskets, watering system starter kits.

Usual effect on accounts On sale: Increases income, increases cost of goods sold, and decreases stock assets. On purchase: increases stock assets.

Comments Available only if the stock feature is turned on. Appropriate for light assembled items; QuickBooks does not track stock through the manufacturing process. Price levels can be used with stock assemblies. You can set up different units of measure for stock-assembly parts. For more information on units of measure, see Setting up different units of measure for your items on page 51. In QuickBooks Pro and Premier you can set up a non-stock part item so that it can affect either income or expenses, depending on where you use it. Price levels can be used with non-stock parts. In QuickBooks Pro and Premier you can create fixed asset items; in QuickBooks Accounting and Plus you can view fixed asset items in the Item List and edit or delete transactions in which theyre found, but you cant create them. In QuickBooks Pro and Premier you can set up an other charge item so that it can affect either income or expenses, depending on where you use it. Can be a percentage or a flat amount. On sales forms, if you want to apply a discount or add a percentage charge to several items at once, subtotal first.

Non-stock Part

Products you sell but dont purchase; items you purchase and resell but do not track as stock; items you enter on purchase orders. Examples: Custommade slipcovers. Property that will contribute to the operating capacity of your company for several years. Examples: Vehicles, Computers, Heavy machinery.

On sale: Increases income. On purchase: Increases expenses.

Fixed Asset

On sale: Decreases assets. On purchase: Increases assets.

Other Charge

Other charges on a sale or a purchase. Examples: Shipping charge, delivery charge, finance charge.

On sale: Increases income. On purchase: Increases expenses.

Subtotal

Calculating and printing a subtotal on sales forms.

Subtotal items have no effect on accounts.

Customers, jobs and items in detail



Item type Group

Use for Fast entry of a group of individual items already on the list. Example: A group of services & food items provided by a caterer. Calculating an amount to be subtracted from a total or subtotal. Example: A 10% discount given to nonprofit organisations. On invoices: Payment received at the time of invoicing, so that amount owed on invoice is reduced. On sales receipts summaries: To show totals for each type of payment (cash, cheques, credit card).

Usual effect on accounts Each item in the group affects the same account it affects when used by itself.

Comments Available for either sales or purchases.

Discount

Either decreases income or increases expenses (depending on item setup).

Available for sales forms only; not available for statement charges or purchase forms.

Payment

Increases the balance of either a specific current account or the account for undeposited funds (depending on item setup).

Available for sales forms only; not available for statement charges or purchase forms.

Items that calculate

The Items List includes some items used to perform a calculation on one or more lines above it on a sales formfor example, if you need to subtotal on sales forms, then you need a subtotal item. A subtotal item adds the amounts of the items above it on the sales form and enters the subtotal on the form. Finally, there are some items that can be set up either as percentages or with flat amounts, depending on what you needfor example, Dave adds a 10% service charge to his invoices. He has set up an other charge item with a rate of 10%. He uses a subtotal item before the service charge, so that the 10% will be based on the subtotal amount. Steve gives a 15% discount to certain customers. He has set up a discount item with a rate of 15%. He must first use a subtotal item, because the discount is based on the entire amount. For examples of how to use items that calculate, see page 59 for subtotals and page 61 for discounts.

Subitems vs. group and stock assembly items

Just as you can set up an account with related subaccounts under it on your chart of accounts, you can have an item with related subitems. For example, Emily keeps the books for her symphony associations gift shop, which sells T-shirts and other items. She has an item called T-shirts and subitems called Adult and Child, each with its own price.

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Subitems enable you to put similar items together on your Item List, so you can locate them easily on the drop-down list in any Item field. Each subitem can have its own rate or price and its own description. Each subitem can even have its own account, although you would probably assign the same account to all subitems of the same parent item.

In this example, Paint is a parent item with subitems under it.

On sales forms, you use subitems the same way you use other items. On reports based on items, QuickBooks subtotals each group of subitems. Group and stock assembly items have a completely different purpose from subitems. Group and stock assembly items enable you to enter a group of itemsthat is, several different itemsat once on a sale or purchase. Group items are appropriate for combining several types of items, such as catering services and food items, on one line in a sales receipt. For an example of entering a group of items, see page 60.

Setting up different units of measure for your items

In QuickBooks Pro and Premier, you can set up different units of measure for stock and stock assembly-type items. For example, you can buy soft drink in cartons with 12 cans to a carton, and sell them by the can. Then, when you sell one can, QuickBooks understands this transaction to mean 1/12 of your stock.

The units of measure preference cannot be turned off once it has been enabled. You should consider activating this feature only if you purchase, stock or sell in different units. Turning on the units of measure preference
Before you can set up different units of measure for your stock parts (items), the units of measure preference must be turned on. 1. 2. 3. Choose Edit menu > Preferences. Select Purchases & Suppliers from the scroll box and click the Company Preferences tab. Select Stock and purchase orders are active, and then Units of Measure are active. Stock must be turned on in order to activate units of measure.

What happens when units of measure is turned on?

With the units of measure preference turned on, youll see that QuickBooks adds a: Units of Measure button to the Stock Part and Stock Assembly windows. Customers, jobs and items in detail 1

This button opens the Define Units of Measure window where you can set up different units of measure for these items. Field to the Service and Non-stock Part window. You can now assign a descriptive label that represents the unit of measure used when dealing with the item. Unit column to all forms. This new column displays the items unit of measure associated with the type of transactionfor example, the selling unit is used on sales forms such as invoices and sales orders, and the purchasing unit on purchase forms such as bills and purchase orders. A Unit column is also displayed on some windows such as Adjust Quantity/ Value on Hand and Change Item Prices. A Unit column is added to display an items units of measure on reports to do with the Item List, and purchases, sales and stock transactions.

Setting up different units of measure

You can now keep track of how you purchase, stock and sell your items with the units of measure feature. Different units of measure can be set up for Stock Part and Stock Assembly type items. The association between an items units of measure cannot be changed once a transaction involving the item is recorded. Therefore, if you have a quantity on hand for an item, you must set up its units of measure before entering an amount in the Quantity on Hand field. 1. 2. 3. 4. 5. Choose Lists menu > Item List. Click Item and choose New. Select Stock Part or Stock Assembly from the Type field. Click Units of Measure to display the Define Units of Measure window. Click OK.

Type the unit of measure you use to stock the item. You can clear these boxes and type the unit you use when selling and purchasing the item.

Enter the number of selling and purchasing units that make up a stocking or purchasing unit.

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Using items that have different units of measure on forms

Once units of measure are set up for an item, the items appropriate unit of measure is then displayed on business forms. Sales forms show the selling units, and purchasing forms show purchasing units. On forms, you cannot switch to a different unit of measure.
A bill displays the purchasing unit, which is a carton.

An invoice displays the selling unit, which is cans.

You can enter fractional or decimal values on formsfor example, if you purchased only half a carton of soft drink that you usually purchase by the carton, you could enter 0.5 or 1/2 on your bill.

Assigning a label to Service & Non-stock Part items

A descriptive label can be added to Service and Non-stock Part items (with units of measure turned on) to help identify the unit of measure or rate that is used for these items. Different units of measure cannot be tracked for these item types. These labels act only as a title and when created, are displayed on business forms and reports.

Reporting in different units of measure

By default, some reports display an items unit of measure. The unit that is displayed depends on the report being createdfor example, a Purchases by Item Summary Report displays the purchasing units of measure, whereas the Sales by Item Summary Report displays the selling units. You can change the reports to display in the units you want through the Modify Report window.

Because this report is a sales report, by default, the selling unit is shown.

Customers, jobs and items in detail



If you want to see the purchasing unit on this report, click Modify Report, then from the Modify Report window, select Purchasing Unit.

The report changes to show the items in their purchasing unit.

Adding items to your Item or Fixed Asset Item list

As the table starting on page 48 shows, QuickBooks has several different item types. Here is some general information about what to enter for most types of items when adding a new item to your Item or Fixed Asset Item List.
Information to enter Type of item How QuickBooks uses this information After you choose the item type, QuickBooks requests only the information it requires for that particular item type. (Note: You cannot create fixed asset items from the Item list. Use the Fixed Asset Item List to do so.) After you set up an item, depending on the type, you may not be able to change it to a different type. Displays this name or number on reports of items and in the drop-down list in the Item fieldfor example, on sales forms. Prefills the entire description in the Description field of sales or purchase forms. Displays the beginning of the description in the drop-down list in the Item field. You can set up some types of items to have separate descriptions for sales and for purchases.

Item name or code Item description (optional on all but fixed assets)



Chapter 

Information to enter Rate or price (optional)

How QuickBooks uses this information Prefills the rate or price in the Rate or Price fields of sales or purchase forms. Some types of items can have a rate that is a percentage. You can set up some types of items to have separate rates or prices for sales and for purchases. Profit and loss statements report on the income or expense account associated with items used in transactions. You can set up some types of items to have separate accounts for sales and purchases. Some types of itemsfor example, payment itemsrequire a balance sheet account instead of an income or expense account. Stock items require three separate accounts. QuickBooks applies tax to the item based upon the rate(s) defined in the Tax Code List. You can override this tax code on the sales form. If this field appears, you can make an item a subitem of an existing item. QuickBooks displays subitems of the same item together. You can set up custom fields that fill your companys needsfor example, size. You can also customise sales and purchase forms to display a column for a custom field. Then QuickBooks prefills the column with the custom field information for the item.

Account or accounts

Default tax code Subitem status Custom fields (optional)

To learn about Adding a new item for one of the following: A service An assembled product that you purchase or build yourself A product or part that is not held in stock A fixed asset A miscellaneous charge Setting up different units of measure Adding a new item for a product or part in stock Adding a new item that puts a group of several items on a sales or purchase form Adding a new item that calculates a subtotal Adding an item that calculates a discount on a sale Adding a new item that records a customer payment or deposit received at the time of sale Creating subitems of another item Creating custom fields for items Turning tax on

Search the Help index for items, services items, stock assembly items, non-stock parts items, fixed assets items, miscellaneous charges items, units of measure items, stock items, grouped together items, subtotal types items, discount types items, payment types items, subitems items, custom fields on tax, setting up

Customers, jobs and items in detail



Items for reimbursable costs in QuickBooks Pro and Premier

Perhaps your business purchases services or products for specific customers or jobs, then invoices the customer for the items (with or without a markup)for example, Frank is a general contractor who uses subcontractors and invoices for their costs at a higher rate than what they charge him. In QuickBooks Pro and Premier Editions only, service items, non-stock parts, and other charge items each have a check box that enables you to pass through their costs at a markup and track costs and revenues in separate accounts. Then you can track both the expenses and the income for these items for a particular jobfor example, the check box for a non-stock part is This item is purchased for and sold to a specific customer:job.

Note: If you dont have QuickBooks Pro or Premier, use expense accounts.
To learn about using expense accounts for reimbursable costs Search the Help index for reimbursable expenses, assigning to a customer or job

There are several advantages to using items for reimbursable costs in QuickBooks Pro or Premier: It is easy to associate the cost of an item with an expense account and the income with a separate income account when you set up the item. You can track the number of units or hours purchased or sold. You can use items on estimates and purchase orders. If you write a purchase order for an item, you can create a bill from the purchase order and assign a job. Then you can invoice the customer for the item. When you enter a bill, cheque or credit card charge, QuickBooks fills in the description of the item and the unit cost after you choose the item from the drop-down list on the Items tab. When you invoice the customer for the cost of the item QuickBooks fills in the sales description of the item and the sales price. You can create reports that compare costs to revenues for each item.
Search the Help index for reimbursable expenses, assigning to a customer or job

To learn about invoicing for reimbursable time and costs

Services performed by subcontractors or owners

If you charge for services performed by outside subcontractors or you pay owners (or partners) for time worked, set up a service item for each type of service. Be sure to select the This service is performed by a subcontractor, owner, or partner check box. Then you can designate separate income and expense (or equity) accounts, and separate descriptions for sales and purchases.



Chapter 

You can enter different hourly rates for your cost and the sales price to your customer. If you write cheques based on time tracked or enter the item on a purchase order, purchase, or estimate, QuickBooks fills in the rate from the Cost field. If you enter the item on a sales form, QuickBooks fills in the rate from the Sales Price field. However, if the subcontracted service is usually billed as a flat fee and the fee varies, leave the Cost and Sales Price fields 0.00 when you set up the item. If you pay owners (or partners) and suppliers for the same service, you need separate service items because the accounts for the costs must be different.
To learn about separate service items Search the Help index for service items, creating items for services you sell or buy

Products and materials purchased for a job

If you invoice for actual costs of products and materials purchased for a specific customer or job, set up a non-stock part item for each type of product or service. Be sure to select the check box for This item is purchased for and sold to a specific customer:job. Then you can designate separate income and expense accounts, and separate descriptions for sales and purchases.

You can enter different rates for your cost and the sales price to your customer. However, if the cost of the product or material varies, leave the Cost and Sales Price fields at 0.00 when you set up the non-stock part item.

To further aid in tracking the item, you can also specify the customer and job on the purchase order. When you receive the item this information prefills on the item receipt or bill. Use the open purchase orders by job report to find out which items are still on order for your customers.

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Miscellaneous charges you pass on

If you invoice for miscellaneous charges incurred on a job you can set up another charge item for each type of miscellaneous charge. For example, Frank has an other charge item called Equipment Rental. Be sure to tick the check box for This is a reimbursable charge. Then you can designate separate income and expense accounts and separate descriptions for sales and purchases. As with products and materials, you can enter different cost and sales prices or leave the fields at 0.00 when you set up the other charge item.

Working with items

This section provides you with the following information to help you work with items: Using items to save time Using items to subtotal on a sales form Showing partial payments received at the time of sale Changing prices or rates Editing item information

After you have set up items, use them to enter estimates, sales, purchase orders, sales orders, actual purchases, and disposition of fixed assets. Remember, QuickBooks uses the term sales broadly; it can mean the performance of services or the assessment of fees as well as the sale of products. You can enter all item types listed in the table on page 48 on any sales form. You can enter all but payment items on estimates and sales orders. However, you cant enter the following item types on purchase orders or purchases (on the Items tab of bills, cheques, and credit card charges): Other charge items set up as a percentage Discount items Payment items
Search the Help index for discounts, from suppliers suppliers, paying (then Paying bills)

To learn about Recording discounts from suppliers Entering payments to suppliers

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Using items to save time

When you fill out a sales form, you list each service, product, or fixed asset youre selling on its own line of the invoice or sales receipt, along with the amount the customer owes for that item. Similarly, when you write a purchase order or receive a bill, each service, product, or fixed asset is listed on its own line. Because information about individual items is listed on separate lines, the items are called line items. In QuickBooks, you enter line items by choosing from the drop-down list in the Item field of a sales or purchase form. You can also type in the Item field and let QuickBooks fill in the rest of the items name.

Enter an item in the Item field by typing or by choosing from the drop-down list.

Each item on the Item List can contain all the information you need to fill in one line. You can always change the information, such as the description and rate, as youre filling in a form. When you enter a quantity, QuickBooks automatically calculates the amount.
QuickBooks multiplies the Qty by the Rate to calculate the Amount.

Youll have separate items not only for each service rendered and each product sold but also for discounts, markups, tax, and subtotals. If the customer makes a partial payment at the time of the sale, you can add an item for the payment.

Using items to subtotal on sales forms

The subtotal item adds up the amounts of the items above it, up to the last subtotal. Youll need a subtotal item if you ever want to apply a percentage discount or surcharge to several items. Because QuickBooks calculates percentages on the line above, youll need to subtotal the items before entering the percentage line item.

Customers, jobs and items in detail



If you use two subtotals in a row, the last subtotal will add up all the previous subtotals on the form.

The first subtotal that shows is for the first two items. The second subtotal is for the third item. The third subtotal adds up the two previous subtotals.

Entering a group of items

The group item enables you to enter several items all at once on a sales form, estimate, purchase order, cheque, or bill. If you often sell the same group of items together, using a group item saves you the trouble of entering the same set of line items again and again. When you use a group item, you can enter a quantity for the group that affects the quantity and amount of each item in the group. You can also edit the individual quantity of each item in the group, and edit descriptions and rates.

Using a group item to hide details on a sales form

The more detailed you are in tracking items, the more information you can get from reports. The QuickBooks group item enables you to be very detailed in tracking the items you sell without showing all that detail to your customers. When you set up a group item, you specify whether to print each item or just the group item. (Of course, if you use a group item on a purchase order you must show the detail to the supplier so the supplier will know what you want.) For example, Frank has a construction company that sends invoices for full jobs, such as complete remodels. If he used one general service item called Remodel, a sales report would show his income from remodels.
If you use very general items, like this one, your reports wont be as useful as if you used detailed items grouped together.

However, Frank uses more detailed items, so he can learn more from his sales reports. Frank breaks down the remodel cost and uses items such as Fence Boards 1x6, Installation and Paint.

0

Chapter 

He groups these items under one item called Remodel. Even though he chooses not to print the items in the group on the invoice for his customers to see, he still has those details on his sales reports.

Applying a discount to one or more items

To apply a discount, you have to enter a discount item. If the discount items rate is a percentage, the item reduces the amount due by a percentage of the line above it. To take a percentage off several items at once, you must first subtotal the items. On the other hand, if you want to discount one particular item youve sold and not the entire sale, add a discount item directly beneath the one discounted item. If you give discounts of different percentages, you can either set up a separate discount item for each percentage or edit the amount right on the sales form.

Dont use a discount item for discounts that you give for early payment. Enter discounts for early payment through the Receive Payments window. Search the Help index for receiving payments, about.

Showing partial payments received at the time of sale

If you receive a partial payment toward the amount of an invoice at the time you create the invoice, youll need to enter a payment item. The payment item tells QuickBooks to subtract the amount of the payment from the total invoice amount. To record the payment on the invoice, enter a payment item for the amount youve received after youve entered all the items sold.

Customers, jobs and items in detail

1

You can set up a payment item so that it automatically deposits the payment directly to a current or other account. Alternatively, you can set it up so that QuickBooks automatically puts the payment amount into your Undeposited Funds account so you can deposit it with other funds.
To learn about Receiving and depositing payments Search the Help index for receiving payments, receiving payments toward a statement

If you need to track the payment methodfor example, cheque, cash, credit card charge you can have different payment items for different methods of payment. Using a payment item is not the only way to record a payment. For some types of payment, you should use a different method:
Type of payment Partial payment received at time of sale Full payment received at time of sale How to record in QuickBooks Enter a payment item on the invoice. Use a sales receipt, not an invoice. No payment item is necessary, because QuickBooks assumes the sale is fully paid. Use a sales receipt to summarise the daily sales. Enter a different payment item for the summary of each payment method. Enter the payment in Receive Payments window. Indicate which invoices or statement charges have been paid by the payment. Use one of the following options: Enter payment in Receive Payments window. Enter a payment item on an adjustment note. Record a retainer. See the QuickBooks and Your Industry help for law firms, or look in the Help index for retainers.

Summary of payments, by method, for daily sales summary Payment from customer to pay outstanding invoice or statement Advance payment from customer before work is done or sale is made.

Avoid entering double payments. If you receive a payment before the sale and record a deposit before you record the invoice, do not also enter a payment item on the invoice or you will record a double payment.

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Changing prices or rates

You can change the prices or rates of many items at one time through the Change Item Prices window. You can tell QuickBooks to raise or lower prices or rates by a specified amount or percentage. You can change prices or rates for items individually or have QuickBooks calculate new prices or rates on several or all items of the same type at once. If you want to apply an increase or decrease to stock, non-stock and service items automatically, you can use price levels. Price levels enable you to adjust up or down the amount charged to customers with whom you have a special relationship. When you apply a price level to an item, QuickBooks calculates the rate to reflect the increase or decrease.
To learn about Changing prices or rates of items Price levels Search the Help index for items, prices price levels

Editing item information

After youve created an item, you can edit information about it at any time, subject to certain restrictions.

Changing an item type

In QuickBooks Plus, Pro, and Premier, you can change a non-stock part or other charge item to a service, non-stock part, stock part, or other charge item. However, you cannot change the item type of any other type of item.

Hiding and redisplaying items on lists

You can hide an item on the Item or Fixed Asset Item List without deleting it by making the item inactivefor example, you may have a stock item on your Item List that you have not stocked in the last six months but which you may want to stock in the future. When you make an item inactive, QuickBooks keeps the information associated with that item but hides the item on the Item List and removes it from any drop-down lists that use items. You do not need to change or delete any transaction that uses the item. If you start to use the item again you can make it active at any time. You can display all your items, including the inactive ones, on the Item List by selecting Show All. (Inactive items still appear on reports but never display on drop-down lists.)

Deleting items
You can delete an item only if it is not used in any transaction or group item. To locate all transactions that use a given item, create a QuickReport for the item for all dates. If you condense your QuickBooks data through a specified date (to reduce the file size and remove detail), you can also remove items that are not used after that date. Fixed asset items are not condensed.
To learn about Changing item types Search the Help index for items, changing type of

Customers, jobs and items in detail



To learn about Changing information about an item Hiding and showing items on the Item List and drop-down lists in Item fields Making hidden items visible on the Item List as well as on drop-down lists Deleting items

Search the Help index for items, editing information items, hiding and showing lists, hiding and showing items, deleting



Chapter 

Importing and exporting

Importing from / exporting to other software Converting data from CashBook MYOB to QuickBooks Data Converter

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66 68 70 70

Exporting data for your accountant (Accountants Review)

This chapter shows you how you can import and export different types of data between Quicken and non-Quicken software. You can also export a copy of your company file for your accountant to review. Managing your QuickBooks data has never been easier.

Importing from / exporting to other software

You can import and export activities with non-Quicken software, as shown in this chapter. This section provides procedures that enable you to: Import from other software Transfer lists between QuickBooks companies Export to other software Transfer information to Microsoft Word, Excel, Outlook or Interact ACT!

Importing from other software

If you use QuickBooks Pro or Premier, you can synchronise QuickBooks with Interact ACT! or Microsoft Outlook. For more information, refer to Transferring information to Microsoft Word, Excel, Outlook or Customer Manager on page 67). For all other software, QuickBooks imports data in a format called IIF (Intuit Interchange Format), an ASCII text file. The IIF format is different to the .QIF format used by Quicken. If you want to import data from other software programs, create an IIF file or reformat data to conform to IIF standards.

Hint: Creating an IIF file requires knowledge of a spreadsheet program and is technically complex.

To learn about Creating an IIF file

Search the Help index for importing data

Transferring lists between QuickBooks companies

You can transfer a listfor example, a Customer:Job Listfrom one QuickBooks company to another by exporting it to an IIF file then importing it into the new company.

Hint: When you import a list into an existing QuickBooks company, QuickBooks replaces any duplicate entries with ones from the import file.
If you import customers or suppliers from an IIF file, youll need to edit each one to add information such as payment terms. Also, if you have unpaid balances for a customer or supplier, you must enter an invoice or bill that at least tells the total amount owed.

Exporting to other software

When you export a list from QuickBooks it is formatted automatically as an IIF file. You then import the IIF file into word processors, database programs, or other QuickBooks companies.



Chapter 

You cant export transactions from QuickBooks but you can create a report based on transactions and print it to a file that another program can import.
Method Print to disk What it does Makes a copy of a list or report in a format common to other software programs Puts lists into a file in IIF format, with one record per line and one column for each field Advantages You can use the file in a spreadsheet or word processing program. You can share lists with other company files or databases, word processors, or spreadsheets. You can add to the list and then import it back into QuickBooks. Disadvantages Only lists and reports can be printed to disk. QuickBooks cannot read files printed to disk. QuickBooks can export only lists and reports, not transactions.

Export

To learn about Exporting lists to another QuickBooks company

Search the Help index for exporting data

Transferring information to Microsoft Word, Excel, Outlook or Customer Manager

If you use QuickBooks Pro or Premier, you can export data to Microsoft Word or Excel and synchronise your contacts with Microsoft Outlook. Using Microsoft Word as your word processor. Use customer, supplier, employee, and other names in letters. Using Microsoft Excel. Export your QuickBooks report data to Excel for further customisation and filtering. Using Microsoft Outlook. Synchronise your contact information with QuickBooks. Using Customer Manager. Synchronise your Customer Manager data with QuickBooks.
Search the Help index for letters reports, exporting to Microsoft Excel contact management, synchronising with a contact manager search from within Customer Manager Help, not QuickBooks Help

To learn about Writing letters Exporting data to Excel Synchronising contact information Synchronising with QuickBooks Customer Manager

Importing and exporting

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Exporting data for your accountant (Accountants Review)

The Accountants Review feature enables an accountant to make certain kinds of changes in a special copy of your company file. Meanwhile, you can continue to enter daily transactions in the original master file. After the accountant has made the changes, you merge them into the master company file. This section explains for the accountants review: What your accountant can and cant change How to work with an Accountants Review copy (information for accountants)
Search the Help index for permissions

To learn about Setting up your accountant as a user with all privileges (if you have set up users) Creating an Accountants Review copy of your current company file Merging the accountants file into the master company file Making the accountants revised copy your master company file Cancelling an Accountants Review copy

accountants review copy accountants review copy restoring data accountants review copy

What can and cant be changed?

The Accountants Review feature may not be right for everyone. The accountant can make some kinds of changes but not others. The advantage of using the Accountants Review feature is that you can continue to work normally with your master company filethat is, the regular company file from which you make the Accountants Review copy. After the accountant has made changes, you merge them into your master file. The following table shows what an accountant can and cannot do while using an Accountants Review copy of your file, and any restrictions on you while this copy is out.

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Your accountant can... View all existing transactions and lists Add new items to the chart of accounts, Item List, Payroll Item List, To Do Notes List, Memorised Transaction List (general journal transactions only) To add stock items, you must have this feature turned on Edit existing account names and numbers Edit existing payroll items Edit account and tax information for existing items on Item List Enter general journal transactions in homecurrency accounts Reconcile new transactions Adjust stock values or quantities Create reports Change preferences temporarily Create, adjust, and print/ email payment summaries

Your accountant cannot... Enter transactions other than general journal transactions Edit foreign-currency accounts Memorise transactions other than general journal transactions Edit or delete existing transactions, including payroll payments Reorganise lists (move items, make one item a subitem of another) Rename accounts or items Make items inactive Edit names of existing items on Item List Adjust payroll liabilities Enter or edit employee YTD payroll setup transactions Edit employee profiles Export changes to preferences Memorise reports

You cannot... Delete any items from lists Reorganise lists (move items, make one item a sub item of another)

For accountants only: Working with an Accountants Review copy

The Accountants Review copy of a company file which your client creates from their master company file is a compressed, special type of company file. It has a .QBX extension instead of the usual .QBW or .QBB. When you start working with these files for the first time, QuickBooks decompresses them to a .QBA file. You cannot make changes to foreign-currency accounts in an Accountants Review copy of a company file. If your client has foreign-currency accounts that you need to make adjustments to, have your client send you a copy of their company file instead of the Accountants Review copy. Note that the client cannot work on their company file while you are editing the copy that they gave you.

Hint: If your client has set up users and passwords, youll need to find out the user name and password assigned to you or the QuickBooks administrator.

Importing and exporting



Once you have opened an Accountants Review copy, it remains the current QuickBooks company unless you open a different company or you close the company. If you try to record a change that is not allowed, QuickBooks tells you that it cannot record the change in an Accountants Review copy.

Hint: If your computers system date and time is earlier than the date and time that your client created in the Accountants Review copy, you will not be able to open it.
When you export your work from an Accountants Review copy, the changes to the clients company file are saved in a .AIF file. You should return this file to your client as soon as possible so it can be merged with their .QBW file.
To learn about Creating a file to give to your client Search the Help index for accountants review copy

Converting data from CashBook

In previous versions of QuickBooks it was possible to import Quicken CashBook data directly into QuickBooks. In QuickBooks 2007/08 this is not possible. If you are a Quicken CashBook user and you would like to upgrade to QuickBooks, you need to follow a slightly different process. To convert your data from CashBook to QuickBooks 2007/08: 1. 2. 3. Temporarily install QuickBooks 2005/06. (Installing a trial version is acceptable for this purpose.) Convert your CashBook data as per the printed instructions provided with that version. Install QuickBooks 2007/08 and upgrade your data file as part of the installation.

If you require assistance (or software) to complete this process, contact Quicken Technical Support. See Contacting Quicken on page 233. You cannot convert Quicken Home & Business data to QuickBooks.

MYOB to QuickBooks Data Converter

The Data Converter is an easy to use QuickBooks utility that provides a simple process for converting your export data to a format ready for importing into QuickBooks.

Hint: Ensure you allocate enough time to perform the entire data conversion before you begin. You must perform the entire conversion from beginning to end in one sitting. You cannot stop halfway through the process and resume at a later time.
To access the Data Converter, choose File menu > Import > Convert from MYOB...

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The Data Converter converts MYOB export files only, which you create from within MYOB. It is able to convert information from the following export data: Accounts List Non-consolidated Tax Codes List Items List Customer cards Supplier cards Employee cards Personal cards Trade debtor balances Trade creditor balances Inventory valuation / Qty on hand

Data Converter software requirements

To convert your MYOB export data files successfully, you need: Windows 2000, XP or Vista Other operating systems may require you to install the Microsoft Data Access Components (MDAC) version 2.6 or later. You can download the MDAC from the Microsoft Web site.

Hint: The Data Converter will warn you if you do not have the MDAC installed whilst attempting to convert your data. It will also warn you if you are running an outdated version of the MDAC.
A recent version of MYOB The Data Converter can convert export files from the following versions: MYOB Accounting v11 to v13 MYOB Accounting Plus v11 to v15 MYOB Premier v5 to v9

It is important to specify in the Data Converter exactly which MYOB version you are converting from. Different versions of MYOB contain different data files. See your MYOB documentation for instructions on how to find out which version you have installed. Internet Explorer 6.0 This is a QuickBooks prerequisite and is included in the QuickBooks installation.

Importing and exporting

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Export and convert your data

Before you can send your converted data to QuickBooks, you need to ensure the following steps have been completed: 1. Set your conversion preferences. The Data Converter lets you perform the conversion in one of the following modes: Express conversion This is the default option. You point the converter to the first file and it will then search for and convert each of the additional export files. After all of the files have been converted, they will be joined into one IIF file for sending to QuickBooks. Advanced conversion Choose which export files to convert and send very specific data to QuickBooks after conversion. After conversion you will have an IIF file for each type of list you converted. You then need to join these into a single IIF file before sending it to QuickBooks. Export from MYOB. Before the Data Converter can convert your data to a format that QuickBooks can use, you need to export your data to a series of text files from within MYOB. Convert exported cards and reports data in the Data Converter. This step converts the data into an IIF file format that QuickBooks can read. If using the Express conversion method the utility creates a single IIF file ready for you to send to QuickBooks. (Advanced conversion only) Combine IIF files. This step combines the separately converted IIF files into a single, combined IIF file to send to QuickBooks.

2.

3.

4.

For detailed information on exporting your data from MYOB and converting it to IIF format, open the Data Converter and click Help on the main window.
To learn about conversion modes exporting your MYOB data converting your data combining IIF files Search the Data Converter Help index for preferences, Data Converter MYOB data, exporting convert MYOB file IIF files

Send your converted data to QuickBooks

Once you have converted your MYOB data to an IIF file, you can send your data to QuickBooks. To send your converted data to QuickBooks: 1. 2. From the Data Converter activities menu, click Send to QuickBooks. The Data Converter displays the Send to QuickBooks dialog. Click Send and follow the onscreen instructions.

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QuickBooks Basics

Getting around in QuickBooks Getting information about your company Customising your forms Backing up your company data Condensing data Working with multiple users Auditing your company file Solving printing problems

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74 78 83 84 90 92 97 99

This chapter explains the basics of using QuickBooks, so you can get QuickBooks up and running quickly. Once you know how to get around in QuickBooks and where to go for more information, youll learn how to use the features of QuickBooks that require additional setup, like backing up and restoring data, allowing different users to access your company file, running a company file audit, collecting tax and linking your accounts to tax lines.

Getting around in QuickBooks

QuickBooks gives you many ways to get to the information or feature you want. This section provides you with the following information to help you get around in QuickBooks: Understanding QuickBooks file types Using the Getting Started window Navigating in the working area Using lists, forms and registers

Understanding QuickBooks file types

QuickBooks uses several types of files. Here are some of the more common ones: .QBW file: Your company file. This contains your company set up and all the information you enter for your companyfor example, customers, suppliers and transactions. .QBB file: A compressed backup of your company file. .QBX file: A compressed version of an Accountants Review copy of your company file. See Exporting data for your accountant (Accountants Review) on page 68 for more information. .QBA file: An Accountants Review copy of your company file thats not compressed that is, what your accountant gets when they open the .QBX file you provided. .AIF file: A special file containing the changes your accountant made to your companys books in the .QBX file you provided. You merge the information from this file back into your regular company file (.QBW).

Using the Getting Started window

When you first open QuickBooks, the QuickBooks Getting Started window displays. It lists the steps you need to complete to set up your new company file, tells you how to find the information youll need while youre working and gives you some useful tips on managing your business. QuickBooks also provides information about resources for your business, product information and news and how to get help, if you need it. Look under the Help menu for these options.

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Navigating in the working area

QuickBooks makes it easy to access the feature or information you want. There are several ways to get around in most areas of QuickBooksjust select the one that best fits your work style. Also many parts of QuickBooks, such as the Icon bar, are customisable to fit the needs of your business.
The customisable Icon bar gives you oneclick access to the features you use most. The Customer Navigator, shown here, contains customer-specific tasks like creating an invoice.

Shortcuts to Navigators take you directly to a specific screen.

The Open Windows list keeps track of the open windows youre working in. Each navigator shows the tasks for one area of your business.

Related Activities offer help and information about associated tasks.

Moving between windows

QuickBooks maximises your work space by displaying one window at a time at its full size. Because QuickBooks keeps a list of the windows you have open, you can quickly switch between windows as you work. If youd like to be able to see multiple windows open at the same time, choose View menu > Multiple Windows.
To learn about Customising and using the Icon bar Displaying the navigators Displaying and using the Open Window List Showing, hiding, or customising items on the QuickBooks desktop Search the Help index for Icon Bar navigators windows, list of open desktop

QuickBook Basics

7

Using lists, forms and registers

When youre working in QuickBooks, youll spend most of your time using a form, list or register. Since these are so basic to QuickBooks, take a few minutes to become familiar with them.

Using lists
Lists store information about customers, suppliers, employees, items or services you sell. They save you time and help you enter information consistently and correctly. You fill out most QuickBooks forms by selecting entries from a listfor example, when youre filling out an invoice form, you select a customer name from the Customer:Job List. QuickBooks then fills in the customers name, address, payment terms and other information.
To re-sort the list by name or type, click the column header. This list includes each customer and job and their outstanding balances. An X beside an item means it is inactive. Use the menu buttons at the bottom of lists for a variety of tasks: creating new entries, editing existing ones, creating reports about items on the list and using them in transactions.

You can create notes on many lists.

To show the items marked inactive, select Show All. To hide these items, clear the check box.

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Using forms
You record most of your daily business transactions on a QuickBooks form which looks just like the paper forms youre used to. After you fill it in, QuickBooks does the accounting. When you record a bill and then write a cheque using the Pay Bills window to pay for the business expense, QuickBooks enters transactions in your accounts payable register to show the expense you incurred and the payment you made. It also records the cheque in your current account, keeping your records up to date and providing an ending balance of what you owe at any time.

Using registers
Just as you use your cheque book stub to view a record of all the transactions in your current accountfor example, cheques youve written, withdrawals youve made and depositsQuickBooks uses electronic registers to record the same activities in its accounts. The register shows every transaction for that account, as well as the account balance. Although you would usually use forms for entering and viewing transactions, you can also do so directly in registers. Following is an example of the register for an accounts receivable account. The register shows information about invoices - the date of the invoice, the date its due, the name of the customer and the amount. The register also shows payments youve received against your invoices.

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At the bottom-right of the register youll see an ending balance (as it is referred to in QuickBooks), of all your accounts receivable so you always know how much youre owed. For foreign accounts, registers show their transaction amounts in the currency denomination of the account.

Getting information about your company

This section provides you with the information about navigators and creating reports to help you get information about your company.

Finding information about your company file

Information about your company file (and your QuickBooks software) is available from many sources within QuickBooks.

Licence information
To view information about your QuickBooks licence, product version or activation status, go to the Help menu and choose My Licence Information.

Product information
Press F2 anywhere in your QuickBooks software to display the Product Information dialog. This window contains detailed information about your company file including: 78 Chapter  Product name, installation key code, registration and serial numbers Usage information (including audit trail start date if applicable) System information File information (including company name, file size, installation directory and total number of transactions) List information (including total number of customers and suppliers on file) Condense information

The Product Information dialog is also available from within the Audit Company File wizard.

Audit Company File wizard

The Audit Company File wizard brings together in one place useful, detailed information about your company file. See page 97 for details.

Working with navigators

Navigators are the best starting point to see how your company is doing at a glance. They gather information from your QuickBooks data and display it in one location so you can manage your business more effectively. There are eight navigators: Company, Customers, Suppliers, Employees, Banking, Business Services, Reports and Help & Support.

Hint: Additional navigators are available for QuickBooks Premier industry-specific editions. See Industry-specific navigators on page 222.

The flowchart shows activities for dealing with one customer. Click the icons for quick access.

Click these icons for quick access to features you use to manage all your customers. Use this dropdown list for convenient access to reports youve added to the memorised reports list.

In this area, QuickBooks provides you with suggestions for working with your customers.

To learn about Navigators Using other QuickBooks centres Decision Tools

Search the Help index for navigators centres decision tools

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Creating reports
QuickBooks provides a wide variety of preset reports and graphs designed to give you quick and easy access to your companys information. In addition, you can create your own customised reports that have a different look and layout as well as scope of information.

Finding the right report

With the Report Finder you can quickly review and select among the many preset reports that QuickBooks provides. To help you select an appropriate report, the Report Finder displays a sample of each report as well as a summary of what the report conveys about your business. To display the Report Finder, choose Reports menu > Report Finder.
Select a report category and view a general description of your choice. The specific reports available in the category you selected are listed here. View a thumbnail picture with sample data to get an idea of a reports content. You can customise a report before or after you generate it.

QuickBooks provides details about a reports content to help you decide whether the report is appropriate to your needs.

To learn about Finding a report Creating a report Preset reports

Search the Help index for reports, finding reports, creating report types, all

Customising the look of a report

Most reports can be customised for unique presentation of your data. For example, you can: Change the typeface (font) and how numbers display Add or remove columns and adjust their width Create or change subtotal lines Change the sort order of transactions

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Click Modify Report to customise a report for your needs.

If youre using QuickBooks Pro/Premier and Microsoft Office, you can export reports to a Microsoft Excel spreadsheet.

The Modify Report window is divided up in to tabs. Each tab covers different customisation options for the reportfor example, the Display tab enables you to select the columns you want visible on the report that you are currently working on.

After you have customised a report, you can save the settings for future use. Saving report settings is called memorising. The next time you run the report, QuickBooks recreates the format of the report, but uses your latest financial data. When you memorise a report, QuickBooks adds it to the Memorised Report List. To display the Memorised Report List, choose Reports menu > Memorised Reports > Memorised Report List.

Changing the scope of information in a report

Creating your own version of an existing report can also include filtering, or changing the scope of the information that displays on a preset report.

We encourage you to explore the extensive list of filters. Your options here include filters for data you entered in your custom fields.

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To learn about Changing date ranges Customising a report Adjusting, adding, or deleting columns on a report Tailoring the data in the report (filtering) Changing headers and footers

Search the Help index for reports, dates in report customisation report customisation, columns reports, changing the scope of report customisation, headers

What does Other refer to on reports?

If you use subaccounts, subitems or jobs, then sooner or later you will see the word Other on a report.

The $50 expense for Labour-Other is for the Labour main account and not for either of the subaccounts.

QuickBooks shows the word Other when you create a report for an account that has subaccounts, items that have subitems, customers that have jobs and so forth and there is a transaction associated with the main account. Generally, if you are using subaccounts or subitems or jobs, you should associate transactions only with the subaccounts instead of the master account.

Hint: To remove the Other line or column on a report, double-click its monetary amount to see the transaction and adjust it.
When QuickBooks displays a report listing one or more transactions, double-click each one in turn. In the transaction itself, replace the problem name with the correct subaccount, subitem, or job.

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Customising your forms

You can customise any sales or purchase form template and create any number of versions.

Hint: If you plan to print your invoices or statements on preprinted forms from Quicken, you should make only minor adjustments to the Quicken templates. You can add a logo, add your company name and address, or change the fonts and still use the preprinted forms you purchase from Quicken. However, you cant add, change, delete or move columns unless you have purchased custom designed forms.
For each form you customise you decide which fields (including custom fields) and columns to include, what they are labelled and where to place them. Once youve created your forms you can save them to use whenever you want and modify them whenever you want. You can also purchase custom stationery to match. 1. 2. 3. Open any sales or purchase formfor example, an invoice or purchase order. Click Customise. Do one of the following: Select the template you want to customise and click Edit to display the Customise window. Select the template and click New. Dont forget to give your new template a name.

Click Layout Designer to view a version of the following diagram, which shows the areas of the form that you can change using various tabs of the Customise window.
Use the Format tab to add your logo and to change fonts, including font stylefor example, italic, boldand size. Use the Header tab to change the title of a form or other information in this part of the form. You can enter up to 1,000 characters in the Long text area on the Footer tab to print on your custom form. This information could include legal disclaimers or warranty information. Use the Fields tab to change the information shown on this part of the form.

Use the Columns tab to change the order in which columns display. The Amount column always displays furthest to the right. You can also rename, add, or delete columns. Use the Printer tab to change the page orientation.

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To learn about Creating custom business forms

Search the Help index for customising forms, about

Backing up your company data

This section provides you with information on backing up your company data: Recommended backup routine Backing up to a CD-R, CD-RW or hard disk Backing up to a Zip disk Backing up to a tape Backing up to a 3.5 floppy disk Using the QuickBooks Online Backup Searching for your backup file Restoring your backup file

Your data is valuable! No recovery technique can repair all possible file damage or protect against theft or natural disasters. To guard against and minimise data loss, make regular backup copies of your QuickBooks companies. Then, if you lose your data, you can restore it from your backup. Its a good idea to store at least one recent backup off site. The QuickBooks Backup command does not simply copy your company data file; it compresses the data into a compact file which only QuickBooks can open. You can name the backup file whatever you want. QuickBooks automatically gives your backup file the extension .QBB.

Hint: For a description of the various file types QuickBooks creates for your company file, see Understanding QuickBooks file types on page 74.

What isnt included in the QuickBooks backup?

There is some data you use with QuickBooks that is not stored in your company (.QBW) file. When you back up your QuickBooks company file, this data is not backed up or restored as part of the QuickBooks backup process. Some examples of data that is not included in the .QBW file (and therefore not backed up to the .QBB file) is: 8 Chapter  QuickBooks service packs, or additional releases such as tax scales Customised form templates (for example, user-customised invoices or purchase orders) BAS files and configurations Fixed assets recorded in the STS Depreciation register SuperLink files ABA file history

Some global user preferences

If you need to restore your company file, or move your software and company file to a different computer, you need to be aware that while your main business data is secured, you may lose some or all of this peripheral data. After you perform a company file restore, service packs and tax scales should be reinstalled. Files such as ABA file history and SuperLink are stored in separate folders in your QuickBooks program directory. These folders can be directly copied from your old QuickBooks program directory to the new program directory. Other QuickBooks files can be restored from a full system backup.

Recommended backup routine

Hint: If you use QuickBooks Pro or Premier in multi-user mode, you must switch to single-user mode to create a backup. For more information on single-user mode, see Working with multiple users on page 92.
Below are recommendations for a backup routine. Prepare several sets of backup media. Label the backup media. For example, QuickBooks Backup 21 June, QuickBooks Backup Tuesday and so forth. By having one set of backup disks for each business day, you are unlikely to lose more than one days records if disaster strikes. Each day, back up onto that days disks and keep them in your office. Make a second backup at least once a week and store it off your premises. Alternate between two sets of disks for your weekly off site backup. If disaster strikes your office, youll want a reliable record of your data to fall back on. Periodically replace your backup media with new media on your machine. At the end of the financial year, make an archive copy of your data to keep off your premises.

Backing up to a CD-R, CD-RW or hard disk

Although Windows XP and Vista can write data directly to a CD-R or CD-RW, we strongly recommend that you use third-party CD writing software to back up your company file instead. Because of a limitation in the CD writing program that comes with Windows XP, it may not allow QuickBooks to back up directly to a CD. Instead, it may display an error message such as Unable to access the disk. Also, if Windows XP does allow QuickBooks to access the CD, Windows XP may not transfer your company file backup from the CD Writing Tasks area to your CD properly. Instead, you should first save the backup to your hard drive, then copy it to your CD with reliable third-party software.

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1. 2. 3. 4. 5. 6.

Insert the CD into your CD-R drive. Choose File menu > Back Up. Click the Back Up Company File tab, locate the Back Up Current Company field box and select Disk. Click Browse and navigate to a place on your hard drive where you can find the files easily. Locate the File name field, type a name for your backup and click Save. (Optional) Select the backup options you want Verify data integrity: Verifies your data before backing up. Set Defaults: Specifies the defaults for backing up manually. Click OK. QuickBooks creates a backup file of your company data. If you are backing up to hard disk, end the procedure here. Start your CD writing software and use it to copy the backup file from the hard drive to your CD.

7.

8.

Hint: We recommend you give a new name to each backupfor example, the date of the backup, 28Sep2007. This prevents you from overwriting the previous backup should there be a problem during the backup process such as a power failure.
If you are very comfortable working around the limitation in Windows XPs built-in CD writing software, the help file includes information about setting up Windows XP so that you can back up your company files directly from QuickBooks to a CD.
To learn about Setting up Windows XP so you can back up to CDs directly from QuickBooks Search the Help index for backing up to CD drive

Backing up to a Zip disk

1. 2. 3. 4. 5. 6. Insert the Zip disk into your Zip drive. Choose File menu > Back Up. Click the Back Up Company File tab. Click Browse and navigate to your Zip drive. Locate the File name field and type a name for your backup. Click Save.

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7.

(Optional) Select the backup options you want: Verify data integrity: Verifies your data before backing up. Set Defaults: Specifies the defaults for backing up manually. Click OK. QuickBooks creates a backup file of your company data.

8.

Hint: We recommend you give a new name to each backupfor example, the date of the backup, 28Sep2007. This prevents you from overwriting the previous backup should there be a problem during the backup process such as a power failure.

Backing up to a tape
1. 2. 3. 4. 5. 6. 7. Insert the tape into your tape drive. Choose File menu > Back Up. Click the Back Up Company File tab. Click Browse and navigate to your tape drive. Locate the File name field and type a name for your backup. Click Save. (Optional) Select the backup options you want: Verify data integrity: Select to verify your data before backing up. Set Defaults: Click to specify the defaults for backing up manually. Click OK. QuickBooks creates a backup file of your company data.

8.

Hint: We recommend you give a new name to each backupfor example, the date of the backup, 28Sep2007. This prevents you from overwriting the previous backup should there be a problem during the backup process such as a power failure.

Backing up to a 3.5 floppy disk

Backing up to a floppy disk is not recommended because of the volatility of some floppy disks. If you back up your company file to a floppy disk, you should be aware that there are risks involved in this type of data storage. While some disks can be reused several times and retain their integrity for a long period of time, others can be reused only a few times before they corrupt for no obvious reason. Formatting your floppy disk
Formatting removes any old data that may be on the disk and prepares the disk to receive new data. Even if the disk is labelled as preformatted, its a good idea to fully format a new disk before using it. Sometimes new disks can be stripped of their formatting during shipping. QuickBooks can format disks during the backup process.

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Hint: We recommend you keep multiple backups on different sets of disks and that you periodically replace the disks with new disks. Give a new name to each backupfor example, the date of the backup, 28Sep2007, to prevent you from overwriting the previous backup.
Lets see how to back up to a floppy disk. 1. 2. 3. 4. Insert a disk into your floppy disk drive. Choose File menu > Back Up and click the Back Up Company File tab. Click Browse, navigate to your floppy drive and locate the File name field and type a name for your backup. (Optional) Select the backup options you want: Verify data integrity: Verifies your data before backing up. Set Defaults: Specifies the defaults for backing up manually. Format each floppy disk during backup and click OK. Click Start, and then click OK and wait while the floppy disk is formatted. Click OK then Close to close the Format dialog box. QuickBooks backs up your data.

5. 6. 7.

Hint: If you need more than one disk, QuickBooks asks you to insert an additional disk as each disk fills up. Remember to label the disks numericallyfor example, Monday Disk 1, Monday Disk 2 and so forth.
If you selected to format before backing up the disk, QuickBooks formats sequential disks as you place them into the drive.

Testing your backup

Due to the volatility of floppy disks, we recommend that you test the data that youve stored on your floppy disk. Youll use the Restore feature to test your backup. This procedure uncompresses your backup file and creates a new company file using the data from the backup.

Unfortunately, testing the backup data doesnt ensure the integrity of your floppy disk. There is still a risk of your backed up data becoming corrupt. Corruption can occur due to age, environmental changes, over-use or for reasons beyond your control.

Using Online Backup

Online Backup is a backup that is provided as a subscription service for your QuickBooks software. Online Backup is part of a range of third-party Tools offered by Quicken. For more information on creating an online backup, see Secure your data with Online Backup on page 213.

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Searching for your backup file

If for some reason you cant locate your backup file (.QBB), you can use the Windows search feature to help you find it. 1. 2. 3. 4. From your Windows desktop, choose Start > Search. Type *.QBB in the Search for files named field. The asterisk symbol acts as a substitute for zero or more characters. Select a drive or folder in the Look in field. Click Search Now.

Restoring your backup file

If you need to restore your company file from a backup, use the Restore command. 1. 2. 3. Choose File menu > Restore and locate the Get Company Backup From section, select Disk or Online. Click Browse to navigate to the file and click Open. Locate the Restore Company Backup To section, click Browse and navigate to a folder where you can store the restored file temporarily. Dont save the restored file in the same folder where you normally store your company filefor example, navigate to the Windows temp folder. Locate the File name field, type a name for the restored filefor example, Restore(date)and click Save. Click Restore. If youre restoring from multiple disks, QuickBooks prompts you to insert the sequential disks as QuickBooks extracts the compressed data. QuickBooks lets you know if the restore was successful. Click OK. QuickBooks opens your restored company file.

4. 5. 6.

7.

The next time you open QuickBooks, ensure that youre opening your main company file and not your restored file. QuickBooks remembers the last file you worked on. Your QuickBooks backup copy is in a compressed file format. You must use the Restore command to bring your backed up data back into QuickBooks. Do not use the Copy command from Windows Explorer or the DOS prompt. If your hard disk has malfunctioned, you first need to reinstall QuickBooks on the repaired or new hard disk.

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Note: If QuickBooks finds a company file with the same name as the one youre restoring to a given directory, it asks you whether you want to replace the existing file. If you answer No, QuickBooks returns you to the Restore window. You must then give a different name to the restored file and when the process is finished, you will have two different versions of your company data.
To learn about Restoring your company data Search the Help index for restoring data

Condensing data
If your company file has grown very large, you can reduce its size by condensing the older transactions you no longer need. For example, you might condense the transactions your company completed two or more years ago, especially if your company file is quite large, for example, more than 75 MB. Condensing large company files can sometimes improve the performance of QuickBooks. Note the following points about condensing data: When you condense data, you specify an ending date for the period of time you want to condense. Transactions dated after your selected ending date are not affected. For example, if your ending date is 31/12/06, all transactions dated 1/1/07 and later remain intact in your company file. When you condense your company file, QuickBooks deletes only closed transactions. Open transactions are retained. Therefore, to give unpaid bills and uncleared transactions some time to complete, it is best to select an end date that is six months or more in the past.

If you select Remove ALL transactions, QuickBooks deletes all transaction regardless of dates.

You must keep the archive file that the Condense function creates in case you need to refer to your transactions during an audit. As a business owner, you are required to you keep your transactions for five years. Also, you should make sure you have printed records of your most important transactions before you condense your data and create an archive.

Examples of transactions that are deleted

If an invoice has been paid in full, QuickBooks deletes the details and includes the amount in a summary transaction showing income accounts. Neither the customer name nor the items sold are retained. However, if an invoice is not printed or is unpaid, partially paid, or marked as pending, QuickBooks leaves the invoice in your file so you can apply payments to the invoice.

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If you have QuickBooks Pro, condensing deletes only those estimates that are dated on or before the ending date and that have a job status of Closed. If an estimate has any other job status (Pending, Awarded, In Progress, Not Awarded, or None), QuickBooks retains the estimate regardless of its date. (If you select the option in the Condense preferences) If you have paid a bill for a reimbursable expense, QuickBooks deletes the bill regardless of whether you have invoiced the customer for the expense.

Examples of transactions that are retained

When you follow the steps in the Archive & Condense Data wizard, youll have an opportunity to remove old transactions and unused items to further reduce the size of your data file. However, QuickBooks always retains transactions that meet the following criteria.
When QuickBooks retains a transaction with earlier date The transaction is linked to another transaction that has an open balance Example of retained transaction An undeposited customer payment that you applied to an invoice. Even though the invoice is paid, QuickBooks retains the invoice because it has a link to an open transaction (the undeposited payment).

The transaction is linked to a transaction in the current year.

Summary transactions
The summary transactions that QuickBooks creates display in the registers of your balance sheet accountsfor example, Bank, Accounts Receivable or Accounts Payable. Each balance sheet account has one GENJRNL summary transaction for each month in which QuickBooks deleted transactions. The transaction amount is the total of the transactions that QuickBooks deleted for the month. For a given month, the register may also show other transactions that QuickBooks did not delete. These are transactions that could be affected by transactions you have yet to enter. When opening a register, you can spot the summary transactions by looking for GENJRNL in the Type field. To view a breakdown of amounts by account, select a GENJRNL transaction and click Edit. The General Journal Entry window shows the breakdown of amounts by account for all summarised transactions for this month.

Important: You cannot edit a GENJRNL summary transaction.

How condensing data affects your reports

Account balances
After you condense your data you can still create reports that summarise financial activity for the period of time you condensed. For example, if you condense the last financial years data, you can still create Profit and Loss Reports that compare last years results to this years. This is because QuickBooks adds summary transactions to your company file to preserve monthly account balances. QuickBook Basics 1

Transaction detail
After you condense your data, you wont be able to create reports that show daily detail for the period of time you condensed. This is because QuickBooks has deleted the individual transactions that would have provided the detail. In addition, you wont be able to create reports that show balances for individual customers or suppliers over that period of time. As a result, the totals for sales revenue on Tax Liability Reports will be incorrect. As a precaution, QuickBooks creates a backup file in case you need access to the deleted transactions later.

Cash basis reports

After you condense your data, you wont get an accurate Cash Basis Report for data that includes a condensed time period. This is because QuickBooks has deleted the individual transactions that would have provided the information about whether transactions were paid. As a result, the totals will be incorrect.
To learn about Condensing your QuickBooks company file Search the Help index for condensing data

Working with multiple users

This section provides the following information to help you work with multiple users: Sharing QuickBooks Pro or Premier company files Users and passwords Recording who changed what in the Audit Trail

In QuickBooks, you can set up your company file so that users have different access to features. See Users and passwords on page 93 for more information. In QuickBooks Pro or Premier, several people can work with your company file at the same time, over a computer network.

Sharing QuickBooks company files

Using QuickBooks Pro or Premier on a network is basically the same as using it on a single computer. For most of your day-to-day tasks, up to five users can access the company file at the same time. When several users are allowed to work in the company file simultaneously, the file is in multi-user mode. However, for some activities, only one person at a time can use the company file. The other users must log off, close the company file, or exit QuickBooks. Then the person who wants to perform the activity must switch the file to single-user mode. After finishing the activity, the person can switch back to multi-user mode and the others can log back on or open the company file again. Single-user activities include: 2 Chapter  File operations such as backing up, condensing or exporting data Changing lists Adjusting stock

Activities involving an Accountants Review copy Running the Audit Company File wizard

There is also a third category of activities. Although all the networked QuickBooks users with the correct permissions have access to these features, only one person at a time can use them. Feature-locked activities include: Paying bills Running payroll Setting up new users or maintaining existing ones

For information about restricting access to features, see Setting up the Administrator and users on this page)

Refreshing after entering data

If you are creating reports while others are working in the company file, you can use the Refresh button to make sure you have the most current information on your reports. The Refresh button updates your screen with the information that others have entered into QuickBooks Premier since you started the report. You can refresh lists or forms as you work by pressing F5 on your keyboard or right-clicking the item and selecting Refresh.
To learn about Switching between modes Your refresh options Search the Help index for multi-user mode single-user mode Refresh button

Users and passwords

The QuickBooks password feature provides a basic degree of protection for your data but it is not a complete security system. For example, it will not prevent someone using Windows Explorer from deleting your company file.
Some parts of your companys data are more sensitive than others. You can use passwords to make sure that each employee you have can only access those parts of QuickBooks you want them to use. Areas you can protect include sales and accounts receivable, purchases and accounts payable, banking and credit cards, stock, time tracking, payroll, sensitive accounting activities and sensitive financial reports. In this way you maintain the security of your business data even when several people access your company file at the same time. Until you set up users (and passwords) in your QuickBooks company file, any person who accesses the file will have full access to all features of the program.

QuickBook Basics



Setting up the Administrator and users

About the QuickBooks Administrator
When you create a QuickBooks company file, QuickBooks creates a user called Admin. This user is the QuickBooks Administrator for the company file. You can set up a password for the Administrator. When you assign a password to the Administrator, QuickBooks prompts you to log on when you open the company file.

Do not forget the Administrators password. Once youve chosen a password for the Administrator, write it down and store it in a safe place. An Administrators password, if forgotten, cannot be recovered. If you forget this password, youll have to send your company file to Quicken (there is a fee associated with this service).
The QuickBooks Administrator has unlimited access to the entire company file and is the only person who can add additional users and change access privileges. For each user they set up, the Administrator designates: Password. The password can contain up to 16 letters and numbers and is case sensitive. The user can change the password later, but the Administrator will still be able to make changes to the users access privileges and can assign the user a new password, if necessary. Access. This can be a selective access, or no access, to each area of QuickBooks.

Setting up and customising users

After youve set up the Administrator, you can add new users. Use the New User Setup wizard to select the parts of QuickBooks you want the new user to use. Choose Company menu > Set up Users. You can set up as many users as you want. However, only five users can access the company file at any one time.

Note: In Windows 2000, XP and Vista, using the Users and Passwords control panel, you can set up each of your employees with a log-in profile. All the people who will use QuickBooks must be set to Standard User (Power Users Group) or higher, not Restricted User (Users Group). Otherwise, QuickBooks will not run properly.



Chapter 

When the wizard finishes, a summary screen for all your users displays:

To learn about The different access areas The role of the Administrator Setting up users with passwords Changing passwords Deleting passwords

Search the Help index for passwords, access areas admin users, adding passwords, changing passwords, deleting

Using permissions to close an accounting period

Unlike most other accounting systems, QuickBooks does not require you to close the books at the end of an accounting period. Closing books is often a complicated process that involves transferring information from one ledger to another and summarising it. You can generate reports at any time, not just at the end of the year. However, you may want to restrict access to the transactions of prior accounting periods to be sure the transactions are not changed without your knowledge. By requiring permission to delete, add, or edit any transaction before a chosen date, you can discourage accidental or casual changes to closed periods, but still make corrections when necessary, for example, you may want to prevent your staff from making changes to your older transactions after youve paid the tax liabilities for them. You can restrict users from accessing older transactions when you set them up. To deny users access to closed periods, do not grant them permission to change or delete transactions recorded before the closing date.
To learn about Using permissions to close your books Search the Help index for closing, books

QuickBook Basics



Recording who changed what in the Audit Trail

QuickBooks can record all changes made to transactions and the name of the user who made the changes. You can then review the changes in the Audit Trail Report. To keep an ongoing record of changes to transactions, you must make sure the audit trail is turned on and keep it on. To turn the audit trail preference on or off: 1. 2. 3. 4. Choose Edit menu > Preferences. In the Accounting section, click the Company Preferences tab. Select/Clear the Use audit trail check box. Click OK.

If the preference is turned off for a period of time, QuickBooks does not keep a record of changes, if any, to the transactions in that period.
Select the date range you want to see on the report. The Current Transaction entry shows what the transaction is like now.

If your computer is older or you make a lot of changes to existing transactions, QuickBooks may slow down slightly when the Audit Trail is on. Also, the size of your company file may increase more rapidly than it has in the past. These changes occur because instead of writing over transactions you change, QuickBooks records both the original transaction and all changes to it. However, for most users, the performance of QuickBooks should not change. To view the Audit Trail Report, from the Reports menu choose Accountant > Audit Trail.
To learn about Using the audit trail feature Search the Help index for audit trail



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Auditing your company file

The Audit Company File wizard brings together in one place all the useful, high-level information about your company file, as well as performing an integrity check of your company data. Once you have viewed all the relevant detail and run the required checks, QuickBooks displays an exception report which outlines any discrepancies it finds in your company file.

Note: If you use QuickBooks Pro or Premier in multi-user mode, you must switch to single-user mode to run the Audit Company File wizard. For more information on single-user mode, see Working with multiple users on page 92.
To run the Audit Company File wizard, choose File menu > Audit Company File.

The navigation radio buttons and the window title tell you where you are in the wizard. The navigation tools stay the same throughout the wizard. Click buttons or the radio buttons to move back and forwards through the four wizard stages.

Complete any necessary fields.

Click any wizard button or link to perform that function.

Tip: If your company file is large and/or you expect to find errors, we recommend that you verify your company file before you run the Audit Company File wizard. See the in-product Help for more detail on verifying your company file.
The Audit Company File wizard consists of four stages: Company File Information Compile and check your high-level company file information, such as version and installation directory. Company File Actions Check when you last performed vital product actions on your company file such as backing up, setting closing dates and data verification. QuickBook Basics 7

Account Reconciliation Summary Reconcile your QuickBooks accounts and view a detailed summary. Data Auditor Run the data audit on your company file and view the exception report.

You do not need to complete all four stages, nor do the four stages need to be completed in any particular sequence. Click the radio buttons in the left-hand navigation to move between stages as often as you require.

Note: In multi-user systems, if you do not have the appropriate user rights to perform a function (for example, accessing Accounts Payable) the ACF wizard will not complete that section of the audit. If you do not have the right to produce sensitive financial reports, you cannot produce the ACF Exception Report.

The Audit Company File exception report

QuickBooks produces a single exception report based on the results of the company audit. This report can be printed, but it cannot be modified, memorised or exported. The report exists only as long as the current company audit remains valid. If you move back through the wizard screens, or open any other QuickBooks function, you will need to run the data audit again to reproduce the report (even if no information was changed). Many audit processes allow you to drill down from exception report items to the associated transaction.
To learn about Verifying your company file Using the audit company file wizard Running an ACF Exception Report Search the Help index for verify data ACF wizard, or audit company file audit company file, data auditor

8

Chapter 

Solving printing problems

This section provides you with information to help you solve printing problems. It covers: When should I reinstall my printer driver? Nothing happens when you try to print. The form is clipped on the top, bottom, left, or right. Dates and the bottoms of letters are clipped on forms. Printing is slow.

If youre having trouble printing, try checking these areas before you call Quicken Support.

When should I reinstall my printer driver?

If your printer has any of the following problems, you may have to reinstall your printer driver in Windows if your printer: Isnt printing at all, from any program Prints garbage from any program Wont feed paper correctly

Contact the printer manufacturer for assistance if reinstalling the printer driver does not resolve the problem.

Nothing happens when you try to print

There are several things you can try Make sure the printer is turned on and is online Try printing from another application to verify that Windows can still communicate with the printer Check for stalled printing jobs on your printer Choose Start menu > Settings > Printers. Double-click the printer youre using. Select the stalled print job in the list. Choose Document menu > Cancel.

The form is clipped on the top, bottom, left, or right

It is likely that you only need to adjust the forms margins and alignment. However, some printers cant print the entire width necessary for the standard forms that come with QuickBooks. In this case, youll need to customise the form to have larger margins. 1. 2. Choose File menu > Printer Setup and select the form from the Form Name list. Click the Margins tab. If there is no Margin tab, you need to adjust the forms alignment instead. See Adjust the fine alignment of forms on page 100. Set the margin you want in the Left, Right, Top and Bottom fields. QuickBooks displays the margins in centimetres, but you can enter margin sizes in inches (in), millimetres (mm), centimetres (cm), points (pt), or picas (pi). If you find that QuickBooks leaves larger margins than you entered, your printer may QuickBook Basics 

3.

be unable to print outside a specific area. Check your printer manual or contact the printer manufacturer if you have such a problem. If youre using a continuous printer, you may have to slide the paper clamps over to get the printer to start at the position you want. 4. Click OK to save the changes.

Adjust the fine alignment of forms

1. 2. 3. Make sure your printer is turned on and is online and the forms you want to print inserted to the printers paper feeder. Choose File > Printer Setup. Select the form you want from the Form Name drop-down list and click Align. If the Align button is not available, that form cannot be aligned. If a list of templates displays, click the one you want and click OK. If you are using a continuous-feed printer, QuickBooks displays a window where you can select coarse or fine adjustments. Click Fine. Click Print Sample. QuickBooks prints the form with a small alignment grid on it. Check the horizontal and vertical alignment of the text in the alignment grid. Enter the amounts in the Vertical and Horizontal fields to move the printed text to align it. The alignment values are in millimetres. For continuous-feed printers, if the printing is off to the left or right, slide the paper over to correct the problem. Use the Fine Alignment window for changes of less than half a centimetre.
Problem The text prints too high. The text prints too low. The text prints too far to the left. The text prints too far to the right. Solution Decrease the number in the Vertical fieldfor example, if the text is printing 2 squares (that is, 0.2) too high, type -20 in the Vertical field. Increase the number in the Vertical fieldfor example, if the text is printing 1 1/2 squares (that is, 0.15) too low, type 15 in the Vertical field. Increase the number in the Horizontal fieldfor example, if the text is printing a 1/2 square (that is, 0.05) too far to the left, type 5 in the Horizontal field. Decrease the number in the Horizontal fieldfor example, if the text is printing 1 square (that is, 0.1) too far to the right, type -10 in the Horizontal field.

4.

5.

6. 7. 8.

Click Print Sample to see if the form is now aligned correctly. Click OK when you are finished making adjustments. QuickBooks saves the horizontal and vertical alignment adjustments. Click OK in the Printer Setup window.

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Dates and the bottoms of letters are clipped on forms

The font youre using may be too large. Try a font size of 10 points or less. To change fonts: 1. 2. Return to QuickBooks and choose File menu > Printer Setup. Select the form you want from the Form Name drop-down list. You cant change the fonts on some forms here. You can change the fonts on these forms by clicking the Customise button on the forms. Click the Fonts tab. Select the font you want. Click OK in the Select Font window and the Printer Setup window to save the changes.

3. 4. 5.

Printing is slow
There are several things you can try to increase the printing speed: Lower the print resolution for your laser printer. Choose File menu > Printer Setup and select the Settings tab, then click Options. Find the graphics or image settings and choose a lower print setting. If youre printing on blank paper or a letterhead, do not select to print lines around each field. In the Settings tab of the QuickBooks Printer Setup window, clear the Print Lines check box. Make more computer memory (RAM) available by closing down programs you dont need.

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102

Chapter 

Tracking and paying tax

How QuickBooks tracks tax Setting up tax preferences Setting up and using tax codes Making adjustments to your Tax Payable account Creating tax reports Paying a tax liability Receiving a tax refund Keeping tax records

6
104 104 105 110 111 113 114 114

This chapter explains how to set up tax tracking in QuickBooks. It helps you determine how much tax to collect on sales you make, how to record the tax you pay on business purchases, and how to pay what you owe when it is due.

You are responsible for consulting a tax advisor about the tax regulations. For current and detailed information about collecting and remitting tax please consult your government tax office.

How QuickBooks tracks tax

Keeping track of tax can be a challenge. Some items you sell may be taxable while others may not, and some items may be taxed at different rates than others. Fortunately, QuickBooks can help you automate these complexities. Take the time to set up your QuickBooks company for tax carefully, so you can enter sales and purchases quickly. Youll have accurate information about the tax youve collected and paid when it comes time to remit it.

Setting up tax preferences

The procedures in this section enable you to: Turn on tax tracking and other tax preferences Choose a tax reporting period

Turning on tax tracking and other tax preferences

If you havent done so alreadythat is, during the EasyStep Interview you need to turn on tax tracking to enable QuickBooks to track your tax. 1. 2. 3. 4. Choose Edit menu > Preferences. Select Tax from the scroll box, then click the Company Preferences tab. Locate the Do you track tax? field and click Yes. Click OK.

Tip: You can also set other tax preferences, as displayed in the Preferences window below, during this step.

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Choosing a tax reporting period

In QuickBooks, each companys tax reporting period sets up automatically when its created. QuickBooks defaults to a quarterly reporting periodfor example, quarters ending in Jun/Sep/Dec/Mar. However, you can change the setting and track your tax on a monthly, bimonthly, six monthly or annual basis. 1. 2. Choose Edit menu > Preferences and select Tax from the scroll box, then click the Company Preferences tab. Complete the following fields:
Field Tax Reporting Ending Return due Action Select the activity statements reporting periodfor example, quarterly. Select the statements ending periodfor example, Mar/Jun/Sep/Dec. Type the number of days after the end of the reporting period that your tax office gives you before you have to lodge your statementfor example, 30.

3.

Click OK.

Setting up and using tax codes

This section explains the concepts of tax codes, the Tax Codes List and the Tax Payable account. It also shows you how to: Apply tax codes to itemsautomatically and manually Creating new tax codes Set a company-wide, default tax code

Tax codes and the Tax Codes List

Tax codesfor example, GSTenable QuickBooks to identify the type and amount of tax to apply to each item in a purchase or sale and to track the types of tax you have collected or paid. Tax codes are grouped together on the Tax Codes List. Default tax codes are added to this list when you set up your QuickBooks company. You can add extra tax codes to the Tax Codes List.

Tax Payable account

When you set up your company, QuickBooks creates an account called Tax Payable in your companys chart of accounts. As you process sales invoices, cash sales receipts, adjustment notes, bills, credit card transactions, and cheques that are linked to a tax code, QuickBooks automatically records the tax type and amount in the Tax Payable account. The Tax Payable account is the backbone of your tax tracking. The Tax Payable account stores all the tax information QuickBooks uses to generate your tax reports and activity statements.

Tracking and paying tax

10

Tracking your tax liability

The GST you record as part of goods you purchase decreases the balance of your Tax Payable account and therefore decrease your tax liability with your tax office. Taxes you record as part of your sales increase the balance of your Tax Payable account and therefore increase your tax liability with your tax office. For example, if you link a tax code to a bill, your tax liability will decrease, and, if you link a tax code to an invoice, your tax liability will increase. Be aware that while tax codes help you track and categorise your tax position, they have no effect on the positive or negative balance of your Tax Payable accountwhat is important is whether the tax code is linked to a purchase or sale form.

Important points to remember about linking tax codes When you process purchases (pay suppliers) to which you have linked a tax code, the balance of your Tax Payable account decreases (regardless of the tax code). When you process sales (receive payments from customers) to which have linked a tax code, the balance of your Tax Payable account increases (regardless of the tax code). If you have not linked a tax code to your purchase or sale form, no tax is recorded in your Tax Payable account.

If you are unsure about which tax codes to apply to which transactions, contact your accountant or tax office for advice.

Default Tax Codes (Australia)purchases

Usually, you use these tax codes for items that you buy from your suppliers. For example, if you are a chef and you buy fish for your restaurant, that is a purchase.
Code CAF CAG CAI NCF Description Capital acquisitions. No GST in the price Capital acquisitions including GST Capital acquisition for making input tax supplies Non Capital acquisitions. No GST in price. Non capital acquisitions including GST Non capital acquisitions for making input taxed supplies Type GST-free GST Input Taxed GST-free Function Purchases of equipment over $300. No GST paid. Purchases of equipment over $300. GST paid. Purchases of equipment over $300. Tax paid Non Capital acquisitions bought for your business, with no GST in the price Non capital acquisitions bought for your business. GST paid Non capital acquisitions bought for your business for making input taxed supplies.

NCG NCI

GST Input taxed

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Default Tax Codes (Australia)sales

Usually, you use the these tax codes for items that your customers buy from you. For example, if you are a chef and a customer buys a meal at your restaurant, that is a sale.
Code GST INP EXP FRE WET WC WGST CDS CDG CDC Description Taxable Supplies Input Taxed Supplies Exported Supplies GST-free Supplies Wine Equalisation Tax Combined WET and GST tax GST on WET Wine Equalisation Tax GST on WET Combined Cellar door with GST tax Type GST GST-free GST-free GST-free Sales Tax Combined GST Sales Tax GST Combined Function Goods and services subject to 10% GST Supplies which are input taxed Supplies for export with no GST included in the price Supplies with no GST included in the price - excluding exports Special wine tax levied at 29% rate Tax incorporating both WET and GST WET goods subject to 12.9% tax Sales tax levied on cellar door supplies GST levied on cellar door supplies Tax incorporating cellar door sales tax and GST

Default Tax Codes (New Zealand)

Code E N S Z I Description Tax Exempt Not Registered Standard Zero Rated Imported Good Type Tax-Free Tax-Free Tax Tax-Free Tax-Free Function Supplies not liable for tax Business entity not registered for tax Taxable supplies charged at a 12.5% rate Supplies charged at a 0% rate Imported supplies charged at a 0% rate

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Default Tax Codes (Singapore)

Code ZERO FRE GST ZGS Description Zero rated supplies Exempt supplies Standard rated supplies Zero GST Warehouse Scheme Type GST Free GST Free GST GST Free Function Charged at 0% rate Charged at 0% rate Charged at 5% rate Charged at 0.00%

Default Tax Codes (Philippines)

Code Output VAT Input VAT FREE Zero PT0% PT1% PT2% PT3% PT5% PT7% PT10% Description Value Added Tax (sales) Value Added Tax (purchases) Value Added Tax FREE Zero Value Added Tax PT 101/102/112 PT 101/112 PT 060 PT 010/040/041/070/101/112 PT 101/103/111/112/120/131/132 PT 210 PT 130 Type GST GST GST Free Input taxed Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Sales Tax Function Charged at 10.00% Charged at 10.00% Charged at 0.00% Charged at 0.00% Charged at 0.00% Charged at 1.00% Charged at 2.00% Charged at 3.00% Charged at 5.00% Charged at 7.00% Charged at 10.00%

Applying tax codes to items

You can apply tax codes to your purchases and sales automatically or manually.

Applying tax codes to items automatically

You can apply tax codes to items automatically by locating the items in your Item List and linking them to a tax code. For example, if you are a hardware business and sell paint brushes, you can link your QuickBooks paint brush items to the GST tax code. Whenever you process an invoice that contains a paint brush item, QuickBooks automatically knows to apply a 10% tax to the invoice and to record that amount of tax in your Tax Payable account.

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Note: If you do not know which tax code to use, contact your accountant or tax office for advice.
1. 2. 3. Choose Lists menu > Item List. Locate the item and double click it to display the Edit Item window. Locate the Purch Tax Code field and select a tax code from the drop-down list. You usually select tax codes that apply to purchasesfor example, NCG. Refer to Default Tax Codes (Australia)purchases on page 106 for a list of purchase tax codes and further information on these. Locate the Sales Tax Code field and select a tax code from the drop-down list. You usually select tax codes that apply to salesfor example, GST. Refer to Default Tax Codes (Australia)sales on page 107 for a list of sales tax codes and further information on these. Click OK.

4.

5.

Now, whenever you process that item as part of a sale, purchase or adjustment, QuickBooks automatically applies the linked tax code to the transaction and increases or decreases the balance of your Tax Payable account.
To learn about Creating an item Search the Help index for items, creating

Applying tax codes to items manually

You can apply tax codes to items manually by opening the purchase or sales form, or adjustment, and selecting a tax code. 1. 2. 3. Display the sale, purchase or adjustment form to which you want to apply a tax code. Locate the Tax column, click once and select a tax code from the drop-down list. Process and save the form or adjustment as usual.

Creating new tax codes

Use the following steps to create a new tax code. 1. 2. 3. 4. 5. 6. Choose Lists menu > Tax Code List. Click Tax Code at the bottom of the Tax Code List window, then select New. Locate Tax Code, and type a unique tax code. Type the tax percentage represented by this tax code. Type a brief description for this codefor example, GST-free. Click OK.

Once you have created a new tax code, you apply it in the same way as default tax codes.

Tracking and paying tax

10

Setting a company-wide, default tax code

You can set up a company-wide, default tax code that links automatically to any new items you create. This setting is useful if your company tends to use one tax code, such as GST, quite a lot. 1. 2. 3. 4. Choose Edit menu > Preferences. Select Tax from the scroll box, then click the Company Preferences tab. Locate the Default Tax Code field and select a tax code from the drop-down list. Click OK.

Note: If you are unsure which tax code to use as your default, select the tax code you use the most often.
Remember, that you can always override the default tax code later. Do this by changing the default tax code you apply to an item, or changing the tax code on your sales form, purchase form or adjustment.

Making adjustments to your Tax Payable account

From time to time, you may need to adjust the tax liability in your Tax Payable account, possibly to correct an error in your activity statement or to account for a discrepancy in a tax payment. This section shows you how to make a general journal entry in your Tax Payable account.

Making a general journal entry in your Tax Payable account

You can adjust your Tax Payable account by making a general journal entry. The general journal entry requires you to enter two lines as follows: First lineincreases or decreases the balance of your Tax Payable account Second lineincreases or decreases the balance of another accountusually the account that contains the error

The total of both lines must add up to zero for example, if you debit (decrease) the Tax Payable account by $45 then you must credit (increase) the other account by $45 to create a zero balance. 110 Chapter 

To adjust your Tax Payable account:

1. 2. 3. 1. 2. Choose Banking menu > Make General Journal Entry. Check the Date field displays todays date and type a reference number in the Entry No. field. Select Input or Output in the Show on Tax Reports field. Locate the Account column in the first empty row of the journal, click once and select the Tax Payable account. Locate the Debit or Credit column, and type the amount to adjust your Tax Payable account by. To decrease your tax liabilitythat is, if your Tax Payable account shows that you owe more to the government than you actually dotype a positive amount in the Debit column. To increase your tax liabilitythat is, if your Tax Payable account shows that you owe less to the government than you actually dotype a positive amount in the Credit column.

First line

Second line
1. 2. Locate the Account column on the next empty line, click once and select the other accountfor example, the account that contains the error. Locate the Debit or Credit column, and type the amount by which to adjust your account. If you decreased your tax liability, enter a positive amount in the Credit column. If you increased your tax liability, enter a positive amount in the Debit column.

Note: The transaction must have a zero balance. That is, the total in the Debit column on one line must equal the total in the Credit column on the other line.
3. 4. Type a brief description of the adjustment in the Memo column on both lines. Click Save & Close to record the adjustment.

Creating tax reports

This section explains the types of tax reports you can create with QuickBooks and shows you how to: Create tax reports Change the tax accounting periods on tax reports

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Types of tax reports

At any time, QuickBooks can create reports to show your tax situation. QuickBooks flexible tax reports make it easy for you to understand your tax position in a variety of ways. They can tell you if you owe money to your tax office or if you are due a refund, and also provide all the information necessary for lodging your activity statement. QuickBooks has the following types of tax reports: Tax Liability Tax Summary Tax Detail

Tax Liability report

The Tax Liability Report shows you the amounts you need to report in your activity statement. This report is strictly a liability report and shows the tax information as of the date specified. If you want the report to be as of a different date, change the date range in the From and To fields.

Tax Summary report

The Tax Summary Report provides a summary of transactions by tax code. It includes total inputs (purchases), total outputs (sales), and the balance due to or from the your tax office at the end of a reporting period. If you select a longer period than your tax quarter, the report splits the figures by tax quarter.

Tax Detail report

This report is an expanded version of the Tax Summary Report and shows every transaction that contributes to the total inputs (purchases) and outputs (sales).

Getting ready to prepare an activity statement

Before preparing your activity statement, you should run a Tax Summary Report covering your reporting period. Also, you should create Tax Summary and Tax Detail Reports to verify the accuracy of your Tax Liability Report. You should print all these tax reports before you prepare your activity statement and file them in a safe place for future reference once you have finished.

Creating a tax report

Use the following steps to create a tax report. 1. Choose Reports menu > Tax, then select one of the following: - Tax Liability - Tax Summary - Tax Detail QuickBooks creates the report for the last full tax quarter using the four quarters you specified in your tax preferences.

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2.

(Optional) Customise the report. QuickBooks enables you to run tax reports for different periods. You will need to customise the tax reports if your tax accounting periods are non-standard. (Optional) Click Print.

3.

Changing the tax accounting periods on tax reports

You can change the tax accounting period on tax reports by doing one of the following: Change the Tax Reporting field on the Preferences window. Refer to Choosing a tax reporting period on page 105 for more information. Create a tax report, click Modify Report and select the date range in the To and From fields.

Paying a tax liability

Use the following steps to pay a tax liability. 1. 2. Choose Suppliers menu > Pay Tax Liability. Check or complete the following fields on the cheque:
Field Pay to the order of Number Date $ Action Ensure the name of your tax office is correct. Ensure the cheque number is correct. Select the date of the cheque. Type the amount you will pay your tax office and push the down arrow on your keyboard. The amount in words displays under the Pay to the order of field. (If you accidentally press Enter, QuickBooks will save and close the cheque. If this happens, click Previous at the top of the window to scroll back to your tax cheque). Ensure the address is correct, and if not, type the address. Ensure your Tax Rego Id displays.

Address Memo

3.

Click Save & Close, print the cheque and send it to your tax office.

Note: To pay the tax office using online banking (Australia only), see Setting up your employees and suppliers for online banking on page 205.

Tracking and paying tax

11

Receiving a tax refund

Use the following steps to receive a tax refund. 1. 2. 3. 4. 5. 6. Choose Suppliers > Receive Tax Refund. Click OK to display the Make Deposits window. Select the name of your tax office in the Received from field. Select the payment method in the Pmt Meth. field. Type the amount in the Amount field. Click Save & Close.

Keeping tax records

You are required by law to keep records and accounts of the taxable and exempt goods and services that you supply in the course of your business. You must also keep a record of your Tax Payable account, and should track the taxable goods and services you receive, too. Normally, you should preserve your tax records for five years in Australia. Check with your tax office for more information. We recommend that you regularly print out and keep all of your sales invoices that show tax and tax reports, both Tax Detail and Tax Summary. You will want to keep your computer files as well. Be sure to protect your data by making regular backups of your QuickBooks file.

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Chapter 

Working with activity statements

Activity statements in QuickBooks Configuring the activity statement Generating a BAS Generating an IAS Function buttons Lodging your activity statement with the ATO

116 116

Getting ready to configure and generate an activity statement

120 125 126 126 127

QuickBooks enables you to generate two activity statements: Business Activity Statement (BAS) and Instalment Activity Statement (IAS). This is done from the Simplified BAS utility.

Activity statements in QuickBooks

There are two ways you can generate data for an activity statement in QuickBooks: Manually This involves configuring your activity statement before entering values in the fields yourself so that QuickBooks can calculate the results in key fields such as 8A, 8B and 9. Automatically This involves ensuring your company file is set up properly so you can use your company data to populate fields in the activity statement. QuickBooks also enables you to lodge an activity statement electronically to save time. This chapter is organised around the three major stages you must go through to generate a BAS: Ensuring your company is set up properly for your activity statement reporting Configuring your BAS Creating and lodging your activity statement

Well then touch briefly on how to generate an IAS based on the BAS information covered.

Note: To find out more about activity statements and your obligations to the Tax Office, contact your accountant or the Australian Tax Office at www.ato.gov.au.

Getting ready to configure and generate an activity statement

Before you can configure and generate a BAS, your company file needs to be set up to track your GST-related transactions. There are basic setup tasks that you must complete if you want QuickBooks to track your GST correctly. A basic understanding of how QuickBooks uses data in your company file to populate fields in your activity statement will help your setup make more sense. More importantly, it should help you avoid errors that result in an incorrect activity statement. We strongly recommend that you do a rough calculation of your BAS data outside of QuickBooks before creating an activity statement for the first time. You can then test the results of the QuickBooks report and see that youve set up your system correctly. If you get unexpected results, a good understanding of how QuickBooks draws data from your company file will help you troubleshoot your setup to avoid any problems.

Are you ready for GST reporting?

Before youre ready to configure a BAS, your company file needs to be set up for GST tracking and your daily transactions recorded diligently. The following table lists basic setup tasks that you must have completed before its time to start the configuration. It references chapters from this user guide for further details. A brief explanation for each task is given after the table. 11 Chapter 7

Have you... Enabled tax tracking in QuickBooks? Configured your program for your choice of reporting - cash or accrual - and entered your ABN? Identified QuickBooks tax codes associated with sales (outputs) and tax codes associated with purchases (inputs)? Applied the correct tax codes to items? Alternatively, have you applied the correct tax codes when creating invoices or bills? Diligently tracked all sales (outputs) and purchases (inputs) by creating invoices and bills? Checked transactions by generating a tax summary report

Tick if Yes

If not, refer to... Setting up tax preferences on page 104. What accounting method should I use? on page 14. Setting up and using tax codes on page 105. Setting a company-wide, default tax code on page 110. Tracking sales and purchases by creating invoices and bills on page 118. Online Help, searching the index for report types, tax.

Enabling GST tracking in QuickBooks

To track GST in QuickBooks, you need to turn on tax tracking in the tax preferences (choose Edit menu > Preferences > Taxes). This enables the features associated with tracking GST, including creation of a tax payable account.

Configuring your reporting method and entering your ABN

When registering to get an ABN from the tax office, you would have indicated cash or accrual as the reporting method for your taxes. This needs to be reflected in your preferences (choose Edit menu > Preferences, then choose the Tax icon and click the Company Preferences tab).

You also need to make sure you have entered your ABN number in the Tax Preferences under Tax Rego Number. This is needed for electronic file lodgement.

Understanding the QuickBooks tax codes

The default tax codes in QuickBooks fall into two categories: sales (outputs) and purchases (inputs). You need to be familiar with the list of tax codes that apply to sales and the list of tax codes that apply to purchases.

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Applying tax codes to items

When setting up an item, you can apply a tax code so that every time you add it to an invoice or bill, the tax code will appear on the items line in the invoice or bill. Alternatively you can add a tax code to the item line on an invoice or bill where there is not already a tax code associated with the item. Make sure you have applied the correct tax code to items so that they reflect whether they are bought or sold. Applying a salesrelated tax code to an item your business purchases will lead to an incorrect activity statement.

Tracking sales and purchases by creating invoices and bills

Its easy to sell something and forget to create a sales receipt or invoice in QuickBooks to reflect the sale. Or forget to enter the purchase of some expensive equipment. Remember that QuickBooks generates reports based on what you enter into QuickBooks. Not what you forget to enter. If you forget to enter the sale of a few $100 items, your profit reports might be down. Forget to enter the purchase of some expensive equipment, and you could be paying more tax than necessary. So its worth being diligent in this area - besides, such an approach affects more than just your BAS.

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Why its important to set up properly - the big picture

In the same way QuickBooks uses different account types to track your income and expenses and generate reports, QuickBooks uses the Tax Payable account to track GST. QuickBooks creates the Tax Payable account when you turn on tax tracking for QuickBooks. This is a liability account (refer to Tax Payable account on page 105). Each time you apply GST to an item line on an invoice or bill, QuickBooks calculates a portion of the amount received or paid as GST. That portion is then transferred to the Tax Payable account. For GST sales (outputs), where taxes are collected for the government by you, QuickBooks adds the amount to your Tax Payable account. For purchases (inputs) that include GST, where you can claim the GST paid, QuickBooks subtracts the amount from your Tax Payable account.

Check your results

Unfortunately, the Simplified BAS cant do all the thinking for you. It wont recognise an input related tax code applied to an output related item, or even a sales item connected to an Accounts Payable account. It will make calculations based on what you enter. You need to be sure that your company file is set up correctly so that your reports give you the right figures. Its good to calculate what you expect to see in your activity statement outside of QuickBooks. Then, if you dont get a similar result in QuickBooks, you know that your setup may not be right. We recommend that you: Calculate your first activity statement outside of QuickBooks Check that you have applied the correct tax codes to items in QuickBooks Generate a tax liability report to see that the numbers make sense

Calculate your first activity statement outside of QuickBooks

Its sometimes a good idea to take paper notes outside of QuickBooks. Particularly if youre new to using QuickBooks and have a different way of making calculations. Work out what you would expect to see as the results and then test these against the QuickBooks report. If you get figures that dont make sense, you know to start examining the way you have set up your company file. Working with Activity Statements 11

You can use the calculation sheet method available by choosing Reports menu > Tax > Activity Statements > GST Calculation Sheet.

Check that your items and tax codes apply correctly

If youre getting figures in your activity statement that dont make sense, a good place to look in your setup is your list of items. Make sure that each is associated with the correct account in your chart of accounts. Also see that the correct tax code is applied. Look out for input tax codes being applied to output items. Any discrepancies? You can fix them up.

Generate a tax summary report to see that the numbers make sense
Another way to check your setup is to generate a Tax Summary Report. This gives you an overview of what money you owe on different tax types for purchases (inputs) and sales (outputs). Use the QuickZoom feature to access further detail in the QuickZoom Report. The QuickZoom Report lists the line item entries that make up the amount you doubleclicked in the Tax Summary Report. The line item entries are grouped by account. If you suspect that a line entry has been assigned to the wrong account for income tax reporting, you can display the transaction where the entry appears and assign the entry to a different account. Any discrepancies? You can fix them up.

Note: You cannot use the QuickZoom feature if you are reporting on a cash basis

The Next Step

Once youre sure that your company file is set up, its time to configure your activity statement.

Configuring the activity statement

As the Simplified BAS is designed for use by many businesses with different circumstances, youll need to configure your activity statement to provide information thats relevant for your business needs. For example, if you dont have employees, you wont want the report to display PAYG withholding information. Elements you can configure include: Turning the GST reporting feature for BAS on or off (you may only want to report on the PAYG Instalment aspects, not GST, such as when generating data for an Instalment Activity Statement) Defining your GST reporting period Turning the PAYG reporting aspects on or off (you may not need to report PAYG and so not be required to report on this) Other taxes that you can report on the BAS, such as WET, LCT, FTC or FBT

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You can configure your activity statement from the Configuration window.

Configuration window
The Configuration window defines what type of information QuickBooks will report in your activity statement. This includes GST liability, PAYG liability or other taxes. When you choose not to report on a type of information, for example PAYG withholding, QuickBooks will still display the relevant fields on your activity statement but grey them out. The Configuration window has three tabs: GST Configuration tab (applies when generating a BAS or when choosing to report on WET, FBT, FTC or LCT) PAYG Instalment tab PAYG Withholding tab

GST Configuration tab (Simplified BAS only)

Options on this tab allow you to: Enable/disable GST reporting You need to enable GST reporting for BAS from this tab if you are to report GST on your activity statement. Some businesses may only need to report PAYG information on their BAS, in which case they would disable the GST reporting. If you were creating an IAS, you would need to disable this. Enter your document ID The activity statement you receive from the tax office includes a document ID number. You need to include that number as part of the configuration process for BAS or IAS in QuickBooks. Set your reporting period Businesses submit an activity statement annually, quarterly or monthly in arrangement with the tax office. You will need to choose how regularly you report and choose the beginning dates for the reporting period you want QuickBooks to display results on. If you want to report WET, LCT, FTC or FBT on your BAS, select the relevant check box in the Other Taxes area of this window. Selecting a check box enables the associated field so you can include details on it in your QuickBooks BAS.

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To learn about... Completing the GST Configuration tab

Type in the Help index GST configuration tab

PAYG Instalment tab

Options on this tab allow you to: Enable/disable PAYG Instalment reporting You need to enable PAYG Instalment from this tab if you are to report PAYG Instalments on the activity statement. For selected periods some businesses may only need to report GST information on their BAS, in which case they would disable PAYG Instalment reporting. Set the reporting period You will need to choose how regularly you report and choose the dates you want QuickBooks to display results on. Choose an accounting method You will need to specify the accounting method that you want QuickBooks to report PAYG instalments from. Note that for PAYG instalments QuickBooks references the selection you make here, not the selection you make in QuickBooks tax preferences.

To learn about... Completing the PAYG Instalment tab

Type in the Help index PAYG instalment configuration tab

PAYG Withholding tab

Enable/disable PAYG Withholding reporting You need to enable PAYG Withholding from this tab if you are to report PAYG Withholding on the activity statement. For selected periods some businesses may only need to report GST information on their BAS, in which case they would disable PAYG Withholding reporting.

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Set the reporting period You will need to choose how regularly you report and choose the beginning dates for the reporting period you want QuickBooks to display results on.

To learn about... Completing the PAYG Withholding tab

Type in the Help index PAYG withholding configuration tab

Configuration buttons
Note: The following section applies if you want to have QuickBooks populate BAS fields automatically from data in your company file. If populating your BAS fields manually, move to instructions covered under Generating a BAS on page 125.
Once you have defined the type of information QuickBooks will report in your activity statement, you will need to define in some fields specific tax codes or account types that you want QuickBooks to pull data from when reporting in your activity statement. This is done from the open activity statement.

A couple of points on how we use the terms to open or generate an activity statement: When referring to opening an activity statement, we mean the task of following the menu path so that the BAS or IAS window opens, but not necessarily showing the relevant data. You will need to open the BAS to configure the activity statement before it can show relevant data. On the other hand, when we say generate an activity statement, we mean the task of following the menu path to display an activity statement after doing the necessary configuration, so that it displays relevant data.

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Next to a number of fields in the open activity statement, you will find a grey button with the field name. For example, G1, W1 or T1. Clicking this will display a window listing tax codes or relevant account types from which you then apply to the field.

Click a configuration button to display a window to select from.

Select the relevant item/s. Transactions that use these item/s will be used to report in this field.

By applying a tax code to a field, you are telling QuickBooks to calculate a result for that field based on transactions that include the codes you have applied. Transactions that dont include the tax codes you have selected are not used when QuickBooks calculates a value for that field. For example, if you apply GST and EXP to the G1 field, QuickBooks will only use transactions that contain GST or EXP when calculating a result to populating that field. Transactions that contain other codes, such as CDC, will not be included as part of the calculation. Its important that you apply the correct tax codes to a field. For example, G1 relates to income, so you will only want to apply tax codes used for sales (outputs), not purchases (inputs). Note that you can apply any number of tax codes to a field.

By applying a specific account to a field, you are telling QuickBooks to calculate a result using transactions from that account only. Transactions in accounts not applied to a field are not used in calculations. For example, take T1, under Option 2: PAYG Instalment Rate. The activity statement gives you the option of applying of a list of Profit/Loss accounts to the field, such as Sales:Foreign and Sales Income. If you apply Sales Income, QuickBooks will only use transactions from the Sales Income account when calculating a value for that field. It will not use transactions from other Profit/Loss accounts such as Sales:Foreign.

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In choosing accounts to apply, you will be given a list of accounts that fit a specific type of account, for example Profit/Loss or Balance Sheet.
To learn about... Tax codes you can apply to fields on the BAS and/or IAS Accounts you can apply to fields on the BAS and/or IAS Type in the Help index All tax codes window Balance sheet accounts window Profit/Loss accounts window

The Next Step

Once youve configured your BAS, youre ready to generate it.

Generating a BAS
You can generate your BAS automatically so that QuickBooks populates the fields of your BAS based on information in your chart of accounts. Alternatively, you can generate your BAS manually so that, after defining what type of information you want to report on, its a matter of populating the fields manually so that QuickBooks can calculate for fields like 8A, 8B and 9. 1. 2. 3. 4. 5. 6. Open the BAS report by choosing Reports menu > Tax > Activity Statement > Simplified BAS/IAS. Choose your option. Using the Configuration buttons select the relevant tax codes or accounts for the fields. (PAYG Instalment only.) Choose an option for PAYG Instalments. Enter figures for FBT or other taxes, if applicable. Check that the information QuickBooks displays is correct. (You might find it helpful to calculate your BAS outside of QuickBooks by using the calculation sheet provided in QuickBooks by choosing Reports menu > Tax > Activity Statements > GST Calculation Sheet. You can then compare data.) Lodge your BAS information to the Tax Office as shown in Function buttons on page 126.
Type in the Help index Supplies and acquisitions tab Taxes and Amounts withheld tab BAS debits and credits tab

7.

To learn about... fields on the Supplies and Acquisitions tab fields on the Taxes and Amounts Withheld tab fields on the Debits and Credits tab

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Generating an IAS
An IAS is like a BAS but without the GST reporting element. Therefore, to create an IAS in QuickBooks, follow the instructions for configuring the BAS. However, when setting the configuration, disable the GST reporting elements. Then you can generate an IAS as follows. 1. 2. 3. 4. 5. 6. Open the IAS report by choosing Reports menu > Tax > Activity Statements > Simplified BAS/IAS. Choose your option. Choose an option for PAYG Instalments and enter information into the relevant fields manually. Enter FBT or other tax information in the relevant fields, if applicable. Check that the information QuickBooks displays is correct. Lodge your IAS information to the Tax Office as shown in Function buttons on this page.
Type in the Help index PAYG Instalment tab PAYG Withholding tab Debits and Credits tab

To learn about... fields on the PAYG Instalment tab fields on the PAYG Withholding tab fields on the Debits and Credits tab

Function buttons
Youll find a row of function buttons at the base of your activity statement. These are explained briefly below. Refer to in-product Help for more information.

Config. Displays the Configuration window so you can define what type of information QuickBooks will report in your activity statement. Open. Displays a standard Windows Open dialog so you can navigate to a Windows folder and open a previously saved BAS report. Save. Displays a standard Windows Save dialog so you can save the current BAS Configuration for use with future statements. Print. Prints your activity statement to your default printer. Lodge. Sends your activity statement electronically to the ATO. Refresh. Refreshes the data in your activity statement. Cancel. Closes your activity statement. Help. Activates QuickBooks in-product Help for the open tab.

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Lodging your activity statement with the ATO

There are two ways you can get your activity statement to the ATO: Lodge an electronic activity statement with the Tax Office Lodge a paper activity statement with the Tax Office

Lodging your activity statement electronically

Note: At the time of publication, Internet Explorer 7.0 does not work with the ATO Business Portal
Before lodging electronically, you must have: Registered your business and have a valid ABN An ATO supplied digital certificate (PKI) Installed an ATO Digital Certificate on your machine Minimum computing environment requirements, as defined at http://www.ato.gov. au/onlineservices/

Once youre happy that your Simplified BAS is ready to go and you are logged on to the Internet, you can lodge it with the Tax Office electronically. 1. 2. 3. Open your BAS or IAS. Click Lodge. QuickBooks displays the activity statement in HTML format. Verify that the details are correct. If you need to change some details, close the HTML viewer and open the BAS or IAS and make the necessary modifications so that it displays correctly. Click Lodge and then verify the details once again after QuickBooks displays the activity statement in HTML format. Click Continue in Portal. The ATO Business Portal displays where you can follow the instructions to log in and lodge your activity statement. Help is provided at this portal by the ATO.

4.

Lodging a paper activity statement

If you prefer to send your activity statement on paper through standard mail, you can print a copy of the QuickBooks Simplified BAS and transfer the numbers to the official ATO form. Click Print to print the activity statement you have just generated.

Note: Although you may enter information in some fields shown on the QuickBAS window, these may not print because the fields do not apply to the option you are completing. For example, if you elect to report GST on a monthly basis for a BAS and enter information in the Option  fields, these will not print because the information contained in these fields is not relevant to the printed form.

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Note: The QuickBAS printed form does not have a form or payment due date as this information is supplied by the ATO. To produce an Annual GST Report from your QuickBAS, make sure you specify the Annual Reporting Period in the GST section of the BAS Configuration window.

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Working with multicurrency

Multicurrency: an overview Setting up multicurrency Exchange rates and how they affect your transactions Dealing with foreign customers Dealing with foreign suppliers Transferring foreign funds

8
130 130 137 140 142 144

QuickBooks Pro and Premier easily handle multiple currencies. At the conclusion of this chapter, youll know how to set up prices in foreign currencies for items you sell internationally, enter information for foreign customers and suppliers, and deal with the exchange rates of the foreign currencies you use.

Multicurrency: an overview
In QuickBooks Pro and above, you can record transactions in many currencies. With the multicurrency feature turned on, QuickBooks tracks foreign transactions and accounts for them properly, regardless of the currency that is used. For example, if you sell goods to the United States as well as within Australia, you can enter some transactions in US dollars and others in Australian dollars. Tracking these foreign-currency transactions is as easy as selecting the foreign customer or supplier from your list; QuickBooks takes care of everything else. With multicurrency, you can also set up a fixed foreign price for items, or enter prices in your home currency and then have QuickBooks calculate the foreign price based on the current exchange rate. See page 134 for more information on setting up foreign prices. The home currency refers to the currency that is used in the country in which your business is located. In registers and forms, home-currency transactions are displayed in the home currency, whereas foreign transactions are displayed in their foreign currency. On most reports, however, foreign balances are converted into the home currency.

Note: Once multicurrency is turned on, you cannot turn it off. We recommend that you make a backup of your company file before turning multicurrency on. A note about exchange rates
Exchange rates change daily, and these fluctuations can generate a gain or loss in your books. QuickBooks accounts for these gains and losses by tracking them in the Exchange Gain/Loss account (see Exchange rates and how they affect your transactions on page 137 for more information). The home currency is used to determine the value of all other currencies in relation to it. For this reason, the home currencys exchange rate value is fixed at one. Once the home currency is chosen, it cannot be edited or deleted.

When should I use multicurrency? You should turn on multicurrency if you invoice, receive payments or pay bills in a currency other than the currency denomination of the country you live in.

Setting up multicurrency
1. 2. 3. 4. Follow the procedures under Turn on the multicurrency preference on page 131. Follow the procedures under Set up foreign accounts on page 132. Follow the procedures under Create foreign customers and suppliers on page 133 Follow the procedures under Set up foreign prices for items on page 134 (Optional).

Youll find that the multicurrency preference is turned off in QuickBooks by default, unless you have specified otherwise in the EasyStep Interview. Remember that once turned on, you cannot turn this feature off. If you already have customers and suppliers set up before activating the multicurrency feature, QuickBooks will continue to apply your home currency to existing customers and suppliers. 10 Chapter 8

Note: You cannot edit foreign accounts in an Accountants Review file. For more information, see Exporting data for your accountant (Accountants Review) on page 68. Each foreign currency you deal in must have a matching Accounts Receivable or Accounts Payable account in the same currency. This allows you to track transactions specific to each currency you set up in QuickBooks. You can also set up foreign-currency bank and credit card accounts.

Turn on the multicurrency preference

There are two points in QuickBooks from which you can turn on the multicurrency preference: EasyStep Interview Preference window

The EasyStep Interview is usually completed as part of the general QuickBooks setup, so chances are that if using the EasyStep Interview to turn on multicurrency, you will have already turned it on. You are ready to start setting up foreign accounts (see page 132).

Note: Remember that you cannot turn off multicurrency.

If youve decided to turn on multicurrency some time after your initial QuickBooks setup, its best to do this using the Preferences window: 1. 2. 3. Choose Edit menu > Preferences. From the scroll box on the left, select Accounting. In the Company Preferences tab, select Use multicurrency and choose your home currency. The home currency is the currency denomination of the country in which you live. If you live in Australia, select Australia Dollar as your home currency.

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4.

Click OK. Multicurrency is now turned on, and the home currency is set. You can now: Assign a foreign currency to a customer or supplier. Use the currency list, which includes many common currencies and the latest exchange rates as of the QuickBooks release. Generate a report to calculate unrealised and realised gains and losses. Quickly convert foreign currency to your home currency or vice versa with the Currency Calculator. Use the Exchange Gain & Loss expense account to track gains and losses due to fluctuations in exchange rates. Set a fixed foreign price for items that you sell frequently to one particular country. Locate multicurrency transactions with two new filters in the find function.

Set up foreign accounts

You can choose a foreign currency for Bank, Credit Card, Accounts Receivable (A/R) and Accounts Payable (A/P) accounts. You do not need to set up foreign Bank and Credit Card accounts to track foreign transactions. However, for each foreign currency you deal in, you must create an A/R account (if you have customers), an A/P account (if you have suppliers), or both in that currency. For example, if you have customers in Canada and the US, youll need two additional A/R accounts: one with its currency set to Canadian dollars, and another set to US dollars. You cannot use the same A/R and A/P accounts that you use for your home-currency transactions because the currencies rarely trade as equal. Once a transaction is recorded in an account, the currency of the account cannot be changed.

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To set up a foreign account: 1. 2. 3. Choose Company menu > Chart of Accounts. QuickBooks displays the chart of accounts. On the Chart of Accounts window, click the Account menu button, and choose New. Enter the account details.

Choose the currency of the account here.

When you select a currency, the Exchange field shows its exchange rate. If you want to update the exchange rate, do it from the Currency List. See Using the Currency List on page 135 for more information.
To learn about... Setting up account Type in the Help index... accounts

Create foreign customers and suppliers

After youve set up foreign A/R or A/P accounts, you can set up the foreign customers or suppliers who will be using these accounts. To do so, create the customer or supplier as you normally would and select the currency from the drop-down list in their profile. Once a currency is assigned to a customer or supplier, all future transactions involving them are recorded in the currency you assigned, with the exception of bill and credit card payments (in this situation, the account you use to pay determines the currency of the transaction). Existing customers or suppliers (that is, ones you set up before turning on the multicurrency feature) are automatically assigned the home currency. The currency of these customers or suppliers cannot be changed if you have already recorded a transaction for them. If you want to use a different currency for these individuals, youll need to create second profiles for them in the correct currency.

Note: Once you record a transaction for a foreign supplier or customer, you cannot change the currency that is assigned to them.

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1. 2. 3. 4.

Open the Customer Navigator. Under Related Activities, click Add a Customer. Fill in the details as you normally would. (Optional) Enter an opening balance if applicable. Once a transaction is recorded for a customer, you cannot enter an opening balance in this window. Select the currency you want to associate with this profile from the Currency drop-down list. If the currency you want is not in the drop-down list, select <Add New> to create a new currency.

5.

Only one currency can be associated with a customer, supplier or other name. If you deal with a customer or supplier in more than one currency, youll need to create an additional profile for them for each currency in which you do business.
To learn about... Creating new customers Type in the Help index customers

Set up foreign prices for items

By default, items in the Item List use the currency designated as your home currency. What that means is when an item is used in a foreign transaction, the price of the item is calculated by multiplying the home currency amount with the foreign currencys exchange rate. Because the price is converted based on an exchange rate, there is a possibility that the price of an item may go up or down if the exchange rate changes. QuickBooks allows you to set up a fixed foreign price on items you sell frequently to one particular country. By doing this, the foreign price of the item will not change due to fluctuations in exchange rates. You can only select one other currency besides your home currency to assign to item prices. Lets see how you can turn on foreign pricing.

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1. 2. 3. 4.

Choose Edit menu > Preferences. From the scroll box on the left, select Accounting. In the Company Preferences tab, select Use foreign prices on items. From the Foreign item currency drop-down list, select the currency you want to use as a fixed foreign price on items. If you deal with more than one foreign currency, choose the currency you deal in the most. Click OK.

5.

Youll see a new field on the New Item window where you can enter a fixed foreign price for an item. QuickBooks uses an items Foreign Price in transactions where the currency matches the currency that you chose in the foreign pricing preference.

Using the Currency List

The Currency List is a list of all the currencies that are set up in QuickBooks. It contains information about each currency such as its exchange rate and currency symbol. When a foreign transaction is recorded, QuickBooks uses the exchange rate from the Currency List to convert the foreign amount into the home currency amount. You should rarely need to make changes to the Currency List, except to add and delete currencies, and update exchange rates. You cannot delete your home currency or a currency that has been used in a transaction.

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If you want to use a fixed foreign price for an item, (in other words, the price is not multiplied by an exchange rate), use the foreign pricing feature. See Set up foreign prices for items on page 134 for more information.
To create a currency: 1. Choose Lists menu > Currency List.
Hot keys help you convert foreign amounts to your home currency quickly. To use hot keys on any form, select the foreign amount you want to convert, then hold SHIFT and type that currencys hotkey. QuickBooks multiplies the foreign amount by its exchange rate, which gives you the amount in your home currency.

Inactive currencies are not shown in this list. There are more than 40 currencies created in QuickBooks. To display all currencies, Select this check box.

2.

At the bottom of the Currency List, click the Currency menu button and select New. The New Currency window appears.
Select this check box to make a currency inactive. This hides the currency from the list as opposed to deleting it. Minimising the Currency List makes it easier to read from drop-down lists on forms.

Update the exchange rate often to keep your records up-to-date.

3.

On the New Currency window, fill in the options (at the very least, the Currency Name, Country, and Currency Code fields must be filled in): - Currency Name. The name of the currency. - Country. The country in which the currency is used. - Currency Code. The internationally-recognised code for the currency. - Currency Symbol. The letter and/or symbol (such as $) to represent this currency on forms. - Hotkey. A unique letter or symbol to use with the SHIFT key to multiply an amount by the currencys exchange rate. - Exchange Rate. The value of the home currency for one unit of the foreign currency. In order to keep your foreign records accurate, you should update the exchange rate on a regular basis. - Symbol Position. Select where you want the currency symbol placed. Your options include Leading (in front of the money value) or Trailing (behind the money value). Decimal Separator. Enter the symbol you want to use on forms to represent the

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decimal place holder. The default is a period or full stop (.). - Decimal Places. Select the number of decimal places you want to use on forms. You can select zero through 2. - Thousand Separator. Enter the symbol you want to use on forms to represent the thousand place holder. The default is a comma (,). 4. Click OK. The new currency is added to the Currency List and is available on forms that use it.
Type in the Help index... multicurrency, adding currencies multicurrency, updating exchange rate multicurrency, deleting currencies

To learn about... Creating, editing, or deleting a currency

Using the currency calculator

The currency calculator is a handy way to convert a home currency amount into a foreign amount or vice versa. 1. Choose Company menu > Currency Calculator. You can also get to the calculator by pressing F4 while a money value is selected. In the accountant edition of QuickBooks Premier, this feature is available from the Accountant menu. Type the money value you want converted. Select the currency of the money amount to convert. Select the currency you want the dollar amount converted to. Click here to copy the converted amount to the clipboard. Then, use the paste command (CTRL+V) to paste the amount onto a field within a form.

2. 3. 4. 5.

Exchange rates and how they affect your transactions

The exchange rates provided in QuickBooks were accurate at the time your software was released. However, because currencies fluctuate in value, you should update the exchange rates of your currencies oftenevery week or possibly more frequently, depending on the volatility of the currency. (The easiest way to update exchange rates is by using the Currency List. See Using the Currency List on page 135 for more information.)

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Note: An exchange rate field also appears on some forms so that you can enter the latest exchange rate on the fly, without having to go to the Currency List. You should (when reconciling your current accounts, for example) update the exchange rate used for cheques and deposits to reflect the actual rate that was used by your bank at the time the cheques were processed or your deposits accepted.
It is these changes in exchange rates that can affect the profits you make from foreign sales and your costs on foreign purchases. Basically, as a business owner, you want to track the potential effect of exchange rate changes on foreign transactions that havent been completed (referred to as unrealised gains and losses) as well as the actual effect of the changes on transactions that have been completed (referred to as realised gains and losses). QuickBooks provides a report to help you track both types of gains and losses.

Unrealised Gains and Losses

When you create a foreign transaction, the foreign currency is worth a certain amount in your home currency as determined by its exchange rate on the day of the transaction. However, the exchange rate is likely to change before the transaction is closed. Until the transaction closes, the difference between the value of the foreign currency when you created the transaction and its current value is your unrealised gain or loss. For example, say a US customer purchases an item from you for US$100, which is AUD$150 at the time you issue the invoice. Before the customer pays you, the Australian dollar climbs and the US Dollar exchange rate falls. The US$100 that the customer owes you is now worth AUD$160, so your unrealised gain is AUD$10. (You wont know how much money in Australian dollars the customer actually pays you until you receive their payment and deposit it in a bank. At that point, the bank converts it to Australian dollars, and your gain or loss is then realised.) Many accountants prefer you take your unrealised gains and losses on open foreign transactions (invoices and bills) into account when you create reports about your companys net worth, as doing so gives a more accurate picture of the value of your company on that date. Check with your accountant to see what they recommends. To ensure your net worth reports show the true value of your foreign currency accounts (and therefore your company) at the end of a reporting period, your accountant should make a home-currency adjustment in the general journal if your records show an unrealised gain or loss.

Create an Unrealised Gains and Losses Report

1. 2. Choose Reports menu > Multicurrency > Unrealised Gain & Loss. In the Exchange Gain/Loss window, update the exchange rates for the purpose of this report. (Note that doing so does not update the Currency List.)

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3.

Click OK. QuickBooks summarises your open foreign transactions and the potential gain or loss on them.

Create a home currency adjustment in the General Journal entry

Use the information in the report to create a home currency adjustment in the General Journal entry to account for your gain or loss. Select the Exchange Gain/Loss expense account as the other account that will be affected by this entry. 1. 2. 3. Choose Company menu > Make General Journal Entries. You need to specify a customer name when a journal transaction is entered for an A/R account (or supplier name for an A/P account). Select the Home Currency Adjustment check box to ensure these amounts are recorded as an adjustment to the home currency without affecting the foreign balance of that account. When making home currency adjustments, create a phony customer or supplier to which you can assign unrealised gains & losses.

4.

5. 6.

Create your net worth reports. Reverse the General Journal entry to remove the unrealised gain or loss from your books.

Realised Gains and Losses

A gain or loss on a foreign transaction because of changes in the exchange rate becomes realised once the transaction is paid (either partially or in full). When you close the transaction, QuickBooks compares the value of the foreign amount when the transaction began to its value when the transaction closed. QuickBooks enters the difference (gain or loss) in the Exchange Gain/Loss account (this account is created automatically when multicurrency is turned on). For example, just say you owe a supplier CHF500, which works out to be AUD$520. However, when you pay the bill a week later, the Aussie dollar has improved against the Swiss Franc, and CHF500 is now worth AUD$514. Your realised gain would be $6. That is, Working with multicurrency 1

when you ordered the products, you owed AUD$520, but you actually paid only AUD$514 because the Swiss Franc fell relative to the Australian Dollar. QuickBooks balances the transaction by assigning the $6 gain to the Exchange Gain/Loss expense account. To determine your realised gains and losses over time, use the Realised Gains and Losses report. This detailed report shows the original amount of each foreign transaction in your home currency, the actual exchange rate when the transaction was closed, and the resulting gain or loss to you. To print a realised gains and losses report choose Reports menu > Multicurrency > Realised Gain & Loss.

Dealing with foreign customers

QuickBooks handles customers who pay in foreign currencies in much the same way as customers who pay in your home currency. You create an invoice and receive payments in exactly the same way. The only difference is that the currency you assign to the customer in their profile becomes the currency of the transaction (see Create foreign customers and suppliers on page 133).

Creating invoices for foreign customers

Before you can create an invoice for a foreign customer, you must set them up in the Customer:Job List and create a foreign A/R account. Once these are done, you can create an invoice as you normally would. As you do, you also need to: 1. Select a foreign customer. QuickBooks selects an A/R account that matches the currency of the selected customer. If one doesnt exist, QuickBooks prompts you to create one. In this case, it is a US customer, so a US A/R account is selected. The rate/price of the item is converted into the customers currency using an exchange rate. You can also set up a fixed foreign price for items. See Set up foreign prices for items on page 134. Update the exchange rate if necessary.

2.

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Note: Tax codes are not transferred to sales forms when the invoice is created for a foreign customer.

Receiving payments from foreign customers

You receive payments from foreign customers as you normally would. As you do, follow these steps: 1. Select the foreign customer from whom you are receiving the payment. In this case, it is a US customer. QuickBooks selects an A/R account that matches the currency of the selected customer. If one doesnt exist, QuickBooks prompts you to create one. Fill out the rest of the Receive Payment window as you normally would. Update the exchange rate if necessary.

2.

Depositing foreign money

1. Choose Banking menu > Make Deposits. If you have payments in more than one currency to deposit, the Payments to Deposit window appears. (If necessary) In the Payments to Deposit window, from the drop-down list, select the currency for which you have payments to deposit. You can only deposit payments from one currency at a time. When you have made your selection, click OK. The Make Deposits window appears. In the Deposit To field, select the account to which you want to deposit the payment. You can deposit foreign money into a home currency account (the amount is converted using the currencys exchange rate or a foreign bank account as long as the currency of the bank account matches the deposits currency).

2.

3.

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4. 5.

In the Exchange Rate field, update the exchange rate to match the rate of exchange on the same day the deposit was made. Fill in the remaining fields as you normally would. If you are getting cash back from a foreign deposit, you need to set up a Petty Cash account that matches the currency of the money you are depositing and account for the holdback in it.

Dealing with foreign suppliers

Working with foreign suppliers is much the same as working with suppliers in your home currency. You still make purchases and pay bills in the same way, but the currency of the transaction is the currency that you assigned to the supplier in their profile (see Create foreign customers and suppliers on page 133).

Creating a purchase order for a foreign supplier

Before you can create a purchase order for a foreign supplier, you must set them up in the supplier list, create a foreign A/P account, and have purchase orders enabled in your company preferences. To enable purchase ordering in your company preferences: 1. 2. Choose Edit menu > Preferences > Purchases & Suppliers > Company tab. Select the stock and purchase orders are active check box.

Create a purchase order for a foreign supplier as you normally would. As you do, youll also need to: 1. Select a foreign supplier. Because the currency of this supplier is US dollars (for example) the currency of this transaction is in US dollars. QuickBooks selects an A/P account that matches the currency of the selected supplier. If one doesnt exist, you are prompted to create one. Fill out the rest of the Create Purchase Orders window as you normally would. Update the exchange rate, if necessary.

2. 3.

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Chapter 8

As you enter items on foreign purchase orders, their prices are converted to the suppliers currency. If you have set up a foreign price for an item and the currency of the price matches the currency of the supplier, QuickBooks uses the foreign price instead (see Set up foreign prices for items on page 134 for more information).

Paying bills from foreign suppliers

Often, you will receive bills in a foreign suppliers currency and be expected to pay in the same currency. If you make purchases from a foreign supplier, you should consider opening a bank account in the suppliers currency. You can only pay bills from one currency at a time. 1. 2. Choose Suppliers menu > Pay Bills. In the A/P Account drop-down list, select the A/P account that matches the currency of the bill you want to pay. For example, if you are paying a bill from a US supplier, select your US A/P account. Select the account from which the payment will be taken. If the bank account is not foreign, QuickBooks calculates the amount in the home currency that is to be withdrawn using the exchange rate.
If the exchange rate changes between the time you entered the bill from the time you paid the bill, a gain or loss is generated. QuickBooks accounts for it by making an entry in the Exchange Gain/ Loss expense account.

3.

You can only display bills in one currency at a time. The currency is determined by the A/P that is selected. In this case, weve selected a US A/P account, thus the bills listed here are from US suppliers.

To learn about... Payments using your credit card

Type in the Help index... credit cards you use, for bill payments

Working with multicurrency

1

Transferring foreign funds

You can transfer money from a home currency bank account to a foreign bank account, or from a foreign account to a home currency account. Money can also be transferred between foreign accounts of the same currency. However, transferring money between two foreign bank accounts can only be done if the currency of the accounts are the same. 1. 2. Choose Banking menu > Transfer Money. Select the currency denomination of the amount you want to transfer. For example, if you know the transfer amount in US dollars, select USD from the dropdown list and then enter the amount you want to transfer in US dollars. Update the exchange rate to match the rate of exchange on the day of the transfer.

3.

1

Chapter 8

Setting up payroll

Payroll: before you begin Setting up payroll: an overview Payroll expense and liability accounts Setting up your payroll items Summarising amounts for the year-to-date Changing payroll and employee information Customising pay slips

9
146 146 149 150 157 161 164

Payroll helps you track employee information and compensation. Before you can use payroll to process pays, you need to set up all your employee and company payroll information carefully. This chapter gives you an overview of the important information you need to enter into QuickBooks. *The Payroll feature is not available in New Zealand.

Payroll: before you begin

QuickBooks Payroll
QuickBooks Payroll takes the worry out of processing your payroll. It fully integrates payroll, reporting, and accounting with QuickBooks, so you only need to enter data once. This chapter gives you an overview on how to set up your employee details and payroll items correctly so you can carry out all the standard payroll tasks. QuickBooks uses specially prepared tax tables that take into account the latest rates for PAYG tax (in Australia).

If you dont use the payroll feature in QuickBooks

You dont have to use QuickBooks to pay your employeesyou may already be using an accountant or payroll service. Nevertheless, you still need to set up your employees on the Employee List and track their payroll payments and other payroll amounts so that your accounts will be correct. If youre not using the QuickBooks Payroll feature or you have it turned off, the Employee List allows only very basic information about each employee name, contact information, employee number, start and finish dates, and custom information you define. You can still use the time tracking features of QuickBooks Pro and Premier if not using the payroll feature.

Setting up payroll: an overview

The amount of time it takes to enter your payroll information into QuickBooks varies depending on the size of your company. Typically, it can take one to two hours.

To set up your payroll system:

1. Ensure payroll is turned on in QuickBooks. Choose Edit menu > Preferences. From the scroll box on the left, select Payroll & Employees, and then on the Company Preferences tab, ensure the Full payroll features check box is selected. At this time, you can also set other preferences, such as how to sort your Employee List and what prints on a pay slip or payroll cheque and voucher. Gather the information you need to set up payroll (see page 147). Confirm that the payroll liability and expense accounts that QuickBooks creates for you meet your needs (see page 149). Set up: - Payroll items (see Setting up your payroll items on page 150). - Your employees (see Setting up employees on page 156). - The employee year-to-date amounts (see Summarising amounts for the year-to-date on page 157). - Pay slips (see Customising Pay slips on page 164).

2. 3. 4.

1

Chapter 

5.

Protect your companys payroll data from unauthorised access by setting up user permissions. For information about restricting access to your company file, see Users and passwords on page 93).
Type in the Help index... payroll setup, required information preferences, payroll permissions

To learn about... Setting up payroll Setting payroll preferences Set user permissions for payroll

Collecting the information you need

If you paid employees before you set up your company in QuickBooks, you need to get information from your previous accounting package or your accountant.
Information you need to start Company How often you pay your employees Your companys tax registration ID Start date for payroll Tax information The current payroll laws and taxes that apply to your company Current tax tables covering payroll withholdings Your accountant or the Tax Office Tax Office (or download and install the latest QuickBooks service pack) Your accountant or company records Your accountant or company records Your company records Where to find it

Compensation, benefits, and other payroll items How you pay your employees: hourly wages, salaries, time in lieu and/or commissions Things you add to employee payroll payments: Examples include bonuses, travel expenses, employee loans Things you deduct from employee payroll payments: Examples include union dues, repayments of employee loans or advances, health or life insurance paid by the employee, deductions for personal superannuation plans Your accountant or company records

Your accountant or company records

Your accountant or company records

Setting up payroll

17

Information you need to start Expenses your company pays that are based on employee payroll payments (employer contributions): Example includes super paid by the company

Where to find it Your accountant or company records

Employees Employee names, addresses and date of birth Employee withholding setup Employees rate of pay or salary, tax file number, and payroll payment additions, deductions, and employer contributions (if any) Sick and holiday time accruing policies and amounts Employees Employee, or existing payments, reports, or payroll ledger Payroll cheques, reports, or payroll ledger

Existing payments, reports, or payroll ledger

Year-to-date amounts Note: Its not necessary to include year-to-date information in QuickBooks Payroll, as the Tax Office will accept two or more end-of-year payment summaries for the one employee for the same financial year. Each employees payroll amounts from the beginning of the payroll year to the date you started using QuickBooks: That is, the total amount youve paid out to the employee so far this year, and The total amounts you withheld from each of the employees payments and what for Your payroll liability amounts from the beginning of the financial year to the date you started using QuickBooks: That is, the total amounts you withheld from all payroll cheques you issued this year, and How much you already remitted to the Tax Office, benefits providers, etc. as a result of these liabilities Copies of employee payroll cheques, payroll slips, payroll service, payroll reports, accountant, payroll ledger

Former payroll service, accountant, payroll ledger.

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Chapter 

Payroll expense and liability accounts

QuickBooks automatically adds two accounts to your chart of accounts: Payroll Expenses Account (an Expense account) Payroll Liabilities Account (an Other Current Liability account)

To keep your balance sheet and profit and loss statement accurate, QuickBooks associates each payroll item with the appropriate account/s. Whenever you create a new payroll item, QuickBooks helps you assign it to the correct account or accounts by pre-filling the account name to use. However, you can use a different account if you like. For example, an accountant for a limited company may want to create subaccounts of the Payroll Expenses and Payroll Liabilities to track expenses for directors versus other employees. It is also correct for some types of payroll items (such as a deduction for a loan repayment) to be associated with an account other than an expense or a liability account.
To learn about... Payroll Liabilities account Payroll Expenses account Adding new accounts Creating and using subaccounts Type in the Help index... payroll liabilities, account payroll, expense accounts accounts, adding to your chart of accounts subaccounts

Customising payroll accounts

You can change the names of the payroll liability account and payroll expense account that QuickBooks provides by default. And, if you use numbered accounts, you can change the default account numbers. To see more detail of your payroll liabilities on your balance sheet, break down your Payroll Liabilities account by using subaccounts. Similarly, use subaccounts for your Payroll Expenses to see more detail of your expenses on your profit and loss statement. For example, a limited company may need to report expenses for directors separately from other salaries.
To learn about... Adding new accounts Changing account information subaccounts Type in the Help index... accounts (managing), adding subaccounts accounts (managing), editing subaccounts

Setting up payroll

1

Setting up your payroll items

Payroll items are the building blocks of your payroll system. When you create any kind of payroll transaction in QuickBookswhether its a payroll payment, a liability payment, or a payroll adjustmentyou use payroll items to do it (in the same way that sales forms use service or stock items). There are payroll items for employee remuneration (salaries and hourly paid), amounts you withhold from employee payroll payments (taxes, superannuation and other liabilities), employer-paid expenses, and additions and deductions (such as bonuses and loan repayments). QuickBooks uses payroll items to track the individual amounts on a payroll cheque and the accumulated year-to-date wage and tax amounts for each employee. QuickBooks displays your payroll items on the Payroll Item List. The names of the payroll items are what youll see on payroll payments and in payroll reports.

About the default payroll items

When you first turn on the payroll feature, QuickBooks creates the Payroll Item List with the following default payroll items:
Payroll item name Holiday Salary Other 1 Salary Other 2 Salary Salary Sick Salary Holiday Hourly Hourly Pay Other 1 Hourly Other 2 Hourly Sick Hourly Time in Lieu Bonus Holiday Loading Super PAYG Tax Type Salary Salary Salary Salary Salary Hourly Pay Hourly Pay Hourly Pay Hourly Pay Hourly Pay Other Addition Addition Employer Contribution Payroll Taxes Use for Amount paid for holidays taken by a salaried employee Amount paid for Other 1 leave time taken by a salaried employee Amount paid for Other 2 leave time taken by a salaried employee Amount paid per year, irrespective of hours worked Amount paid for sick time taken by a salaried employee Amount paid for holidays taken by an hourly employee Amount paid per hour to an hourly employee Amount paid for Other 1 leave time taken by an hourly employee Amount paid for Other 2 leave time taken by an hourly employee Amount paid for sick time taken by an hourly employee Extra time worked and time in lieu taken by employee Amount paid as a bonus to the normal hours Percentage paid on holiday pay Employer Superannuation (9% SGC) PAYG tax withheld from an employee

10

Chapter 

Payroll item name State Payroll Tax

Type Payroll Taxes

Use for Tax paid on payroll (over certain thresholds) to the appropriate state government

Note: You can rename the default payroll items marked Other to accommodate the leave requirements of your business. For example, you may want to use: Other 1 Hourly for accruing and recording rostered days off (RDO) Other 2 Hourly for accruing and recording long service leave (LSL)

You can do this by choosing Edit menu > Preferences. Then select Payroll & Employees from the scroll box on the left, and then on the Company Preferences use the Other Leave Names fields to enter the leave names you want to use.
To learn about... super payroll items state payroll tax other payroll items Time in Lieu Type in the Help index... superannuation, deductions payroll, State Payroll Tax payroll, other leave types time in lieu

Creating new payroll items

As you set up your payroll system, you will need to create new payroll items to match the way you pay your employees. To create new items, use the Add New Payroll Item wizard.

To start the Add New Payroll Item wizard:

With the Payroll Items List open, click the Payroll Item menu button. Then select New and follow the onscreen instructions.

What payroll item should I choose?

Payroll item type Wage Use for Use Yearly Salary payroll items for remuneration to employees whose annual salary is independent of the number of hours actually worked. remuneration to salaried corporate directors (with expenses assigned to an expense account for corporate director salaries). Use Hourly Wage payroll items for payments based on the number of hours worked. Use Other payroll items for other payments, such as commissions, time in lieu and miscellaneous adjustment.

Setting up payroll

11

Payroll item type Deduction

Use for Any deduction from gross or after-tax (net) pay. Examples include union fees, loan repayments, employee deductions for superannuation schemes, or employee-paid insurance. Any addition to gross or after-tax (net) pay such as a bonus. Any employer-paid benefit or expense that you want to track with each payroll payment. Examples include superannuation and fringe benefits.

Addition Employer Contribution

A few pointers when using the wizard

As you create the item in the wizard, you should: Confirm that the expense and liability accounts assigned to it meet your needs and change them, if you need to. Select superannuation if this payroll item is part of the Ordinary Time Earnings (OTE) as described by the ATO. Choose how to track the payroll item if its an addition, deduction, or employer contribution. If youre not sure how to tax a payroll item, check with your accountant or the Tax office.
Type in the Help index... payroll items, adding payroll items, editing

To learn about... Adding payroll items Changing the name of payroll items

Payroll items for expenses

Common employer payroll expenses include gross pay, employer-paid PAYG tax, and employer-paid benefits for employees. Generally, you should assign all payroll expenses to the Payroll Expenses account. When you run payroll, QuickBooks keeps track of your companys expenses for each employee. You can then see totals for your expenses on the Payroll Summary Report and on the Profit and Loss Statement.

Keeping track of payroll expenses

You can track payroll expenses not only for salaries and hourly wages, but also for additions, commissions, and employer contributions if the Track Expenses by Job check box is ticked for the individual payroll item. (In the Add New Payroll Item wizard, Select Track Expenses By Job.) QuickBooks pro-rates the employer-paid expenses for an employee in the same proportion as you pro-rate the dollar amounts of the employees earnings.

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Chapter 

Tracking expenses by customer and job

Some businesses like to see which customers and jobs create the most expense or work for them. If you want to keep track of all payroll expenses by customer or job, you need to do the following: Make sure the accounting preference for Customer:Job tracking is turned on. (In QuickBooks Pro and Premier, Customer:Job tracking is always on.) Make sure that the Report all payroll taxes by... payroll and employees preference is turned on. On every payroll item for a commission, addition, or employer contribution, Select the check box for Track Expenses by Job. On each payroll payment you create, associate every salary or hourly wage with the correct job or jobs.

Tracking expenses by class

If your business is a non profit organisation that needs to do fund accounting, or if you have a business where you want to be able to track the expenses of different departments or stores, you may want to keep track of expenses by class. To track payroll expenses by class, do the following: Turn on Use class tracking in the accounting preferences. Turn on the Report all payroll taxes by... payroll and employees preference. Select the Track Expenses by Job check box on every payroll item for a commission, addition, or employer contribution. Assign one class to an entire payroll payment, or assign a separate class to each earnings payroll item on a payroll payment, depending on the payroll and employee preference you choose.

Tracking expenses by service item (QuickBooks Pro and Premier)

Some businesses keep track of expenses by service item. To track payroll expenses by service item, do the following: Turn on the payroll and employee preference for Report all payroll taxes by Customer: Job and Service Item. Select the Track Expenses By Job check box on every payroll item for a commission, addition, or employer contribution. Set up each employee to Use time data to create payroll payments. Associate every Customer:Job with the correct service item on each payroll payment you create.
Type in the Help index... payroll, tracking expenses

To learn about... Keeping track of payroll expenses by customer and job, or class, or service item

Setting up payroll

1

Payroll items associated with liabilities

Often, you have to deduct amounts from your employees pay and pass them on to the government. For example, when you pay an employee, your company temporarily keeps the PAYG taxes they owe and remits that money to the government later. These types of deductions are not expenses because the money you pass on comes from the employee, not your company. Instead, because you temporarily keep money that you owe to someone else, these types of deductions are liabilities. Payroll items for liabilities are usually assigned to the Payroll Liabilities account. When you run your payroll, QuickBooks calculates how much you owe the government for each employer contribution payroll item (such as PAYG tax) and records the amounts in the Payroll Liability account. With each payroll payment you create, the balance of this account increases. When you pay your PAYG taxes and other payroll liabilities with the Pay Liabilities window, QuickBooks decreases the balance of the liability account.

Combinations of expenses and liabilities

Some payroll items are a combination of liabilities and expenses. For example, the portion of superannuation that you withhold from an employees payroll payment is a liability, while the portion that you pay as an employer is an expense. Payroll items for employer-paid taxes and employer contributions are usually assigned to both a liability account and an expense account.

How to set up common payroll items

Follow this guide as you set up payroll items.
Payroll Item Type Expense Account Payment Summary Tracking Gross Payments Gross Payments Gross Payments Gross Payments Gross Payments Gross Payments Gross Payments Lump Sum A Lump Sum B Lump Sum D Super Guarantee Contribution On On On On On On Off Off Off Off

Holiday Salary Salary Sick Salary Holiday Hourly Hourly Pay Sick Hourly Bonus Lump Sum A Termination Pay Lump Sum B Termination Pay Lump Sum D Termination Pay

Salary Salary Salary Hourly Hourly Hourly Addition Addition Addition Addition

Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross Payroll Expenses/Gross

1

Chapter 

Payroll Item

Type

Expense Account

Payment Summary Tracking Lump Sum E

Super Guarantee Contribution Off

Lump Sum E - Retrospective Pay Super Post June 1983 Untaxed Element Pre July 1983 Component PAYG Tax

Addition

Payroll Expenses/Gross

Employer Contribution Addition

Payroll Expenses/Super Payroll Liabilities/Super Payroll Expenses:Post June 1983 Untaxed Payroll Expenses:Pre July 1983 Payroll Liabilities/PAYG Tax

None Post June 1983 Untaxed Element Pre July 1983 Component Off

Addition Payroll Tax

Off

Note: It is important to create sub-accounts for Super and PAYG Tax to allow for the relevant amount to be selected for the BAS report. Refer to your accountant for more details.

Setting up an employer-paid benefit or other expense

You must set up a separate payroll item for each employer-paid benefit or other payroll expense you want to track with each payroll payment. You can use these payroll items to track both taxable and non-taxable employee benefits. Examples of employer-paid benefits and expenses include superannuation, health or life insurance paid by the employer or a per-kilometre travel allowance. You can also use these payroll items to track miscellaneous taxes paid by the employer. 1. 2. 3. 4. 5. Choose Employees menu > Payroll Item List. Click the Payroll Item menu button and then choose New. Select Employer Contribution and then click Next. Follow the onscreen instructions. If you need to go back to a previous screen, click Prev. On the Taxes window: If the benefit or contribution is taxable, put a Select mark next to the payroll withholdings that apply. Otherwise, clear all the Select marks.

Employees
Generally, an employee is a person you pay on a regular and ongoing basis to perform services for your company, using materials and equipment you provide. To set up employees for payroll, you need to: (Optional but recommended) Set up employee defaults. Add the employees to your Employee List, or add payroll information for employees already on your Employee List. Setting up payroll 1

Entering standard employee defaults

Employee defaults help you set up new employees quickly. You enter information that most employees have in common. These defaults then show up every time you set up a new employee. If the information isnt right for an employee, you can change it for them. If you change the defaults, the new information shows up the next time you set up a new employee. Employees that you have already set up do not change, in most cases. The Employee Defaults window resembles the Payroll Info tab of the New/Edit Employee window. You can set up the following information in it: Salary or wage payroll items (with or without rates) Pay frequency and pay method Class, if youre using classes to track your employees Whether you want to use time data to create payroll payments (QuickBooks Pro/ Premier only) Additions, deductions, and employer contributions that appear on payroll payments PAYG taxes and other withholdings Sick, Holiday and Other leave time Position Details (including weekly hours)
Type in the Help index... employee defaults, creating employee defaults, order of payroll items in

To learn about... Setting up the employee defaults Determining the order in which you add payroll items to the Employee Defaults window

Setting up employees
Before setting up your employees in QuickBooks, you should create the payroll items you need for your company (see Setting up your payroll items on page 150). Also, consider setting up your employee defaults (see Entering standard employee defaults on page on this page), so that QuickBooks can pre-fill much of the information you need when you set up an individual employee. Remember that in Australia new employees need to submit the ATO supplied declaration forms.

Using the Employee List and Employee Profiles

In QuickBooks, each of your employees has a profile containing information about them (such as contact information, date of birth, and the payroll and banking information you need to create pay cheques). These profiles are stored in the Employee List and are made up of three tabs: 1 Chapter  Address Info. Contact information, date of birth, start and finish dates. Additional Info. Custom fields for tracking any information you prefer.

Payroll Info. Actual payment details plus access to other windows to record information about sick/holiday leave, tax, bank, super and position.

If you pay on commission (QuickBooks Pro and Premier)

As you enter the employees name in the employee profile, QuickBooks Pro and Premier automatically records the employees initials. If your employees earn commissions for items they sell, you must also add the employee to the Customer Sales Rep List. Then you can select an employees initials from the Rep drop-down list when entering a sale or estimate to give the correct employee credit. You can also produce reports showing sales by employee. Pay these employees with a payroll payment, not a regular cheque.
To learn about... Adding employees Setting up payroll information for existing employees Categorising employees by class Types of employees Paying the owner(s) of a business How the order of payroll items affects the amount on your employees payroll payments Type in the Help index... employees, adding employees, payroll information for employees, grouping by department or location employees, types of owners drawings payroll payments, affecting amounts

Summarising amounts for the year-to-date

Note: Skip this section if your company has not done payroll before, not issued any payroll payments this year or plans to allow the payments already made this year to be used for all accounting and record purposes. You are ready to start creating payroll payments. Its not necessary to include year-to-date information in QuickBooks Payroll, as the Tax Office will accept two or more end-of-year payment summaries for the one employee for the same financial year. This means that you can create a payment summary from your old payroll system that covers the period leading up to the QuickBooks start date and then from QuickBooks Payroll for the remaining period.
If youre just starting to use QuickBooks for payroll and youve already issued payroll payments for this payroll year, you may want to record these in QuickBooks to consolidate all your records. In this case you need to: Enter year-to-date (YTD) information to summarise your payroll transactions from 1 July (the start of the payroll year) through to your QuickBooks start date. Setting up payroll 17

You must enter two types of YTD summary: one for each employee you have paid and one for the payroll liability payments youve sent in to the Tax Office so far. A wizard helps you enter this information. To start it, choose Employees menu > Set Up YTD Amounts. Enter your payroll transactions (payroll payments and liability cheques) for the period between your QuickBooks start date and today. As you enter this information, QuickBooks updates your payroll year-to-date amounts as you issue payroll payments and keeps your payroll liabilities correct.

Entering year-to-date summaries for each employee

For each employee (both current and former) you paid during the current payroll year, you can enter a summary of their earnings, withheld taxes, and other amounts from the beginning of the current financial year through to your QuickBooks start date. For each employee enter both taxes withheld from his or her earnings and taxes that are an employer expense, as long as you owed them as a result of the employees earnings. Then youll be able to do the following: Print correct year-to-date amounts on each payroll payment. Create accurate payroll reports, including reports of current payroll liabilities. Correctly observe annual limits for taxes, deductions, and additions.

Depending on how youve kept your records, you can enter amounts summarised by month, by pay period, or for the entire year to date. You enter employee year-to-date summaries with the Set up YTD Amounts wizard. When you select an employee and click Enter Summary, QuickBooks displays each payroll item you entered in that employees profile.
To insert a payroll item, press CTRL+INSERT. You can skip over items not used in this period.

If the amount you paid the employee has already come out of your bank account, select this option.

In this area, enter totals for all other earnings, withholdings, and employer-paid taxes or payroll expenses for this employee. Include taxes regardless of whether you have paid them yet.

In this area, enter the totals for salary, hourly wages, and holiday and sick time paid out during this period. Enter hours worked during the period if you want hours to appear on reports. QuickBooks displays a message if hours are required.

After youve entered the amounts for this period, click OK to finish. If you have another period to enter, click Next Period instead. 18 Chapter 

Should my YTD information affect my accounts?

You can choose how employee YTD information affects your accounts. In the YTD Adjustment window, click Accounts Affected. The table below summarises the options available to you from the Accounts Affected window:
Option Do not affect accounts When to choose Most people should choose this option at setup. You need to enter all your account opening balances in QuickBooks as of your start date, and you do not want these amounts to change the balances of your accounts. If your start date is midyear, and you make an adjustment for all income and expense accounts, you do not want these amounts to affect that adjustment. You may want to choose this option at setup if you have never used a payroll liability account before, and you want a correct balance in the account. This option is also appropriate after you start using payroll if you need to adjust the amount owed for a payroll item. What QuickBooks does Affects no balance sheet accounts and adds no expenses. Adjusts payroll year-to-date amounts that print on cheque vouchers and pay slips; display in payroll reports; and determine annual limits for taxes, deductions, and additions. Enters an increase in each liability account associated with a payroll item used for the period. Tracks an expense for each expense account associated with a payroll item used for the period. Enters a decrease in the Opening Bal Equity account for the net amount paid the employee during the period. (This adjustment keeps your books in balance.) Enters a payment in the designated bank account for the net amount paid to the employee during the period. Enters an increase in each liability account associated with a payroll item used for the period. Tracks an expense for each expense account associated with a payroll item used for the period.

Affect liability and expense accounts but not the bank account

Affect liability, expense, and bank accounts

You are unlikely to want to choose this option at setup since it affects your bank account balance.

Setting up payroll

1

Entering YTD summaries of liability payments

Note: Skip this section if your company has not made any payments for PAYG taxes or liabilities incurred during this payroll year.
For this adjustment, youll need to know how much you paid from the start of the payroll year (1 July) to your QuickBooks start date for each of the following: Each PAYG tax (whether withheld from employees or paid as an employer expense). Each deduction you withheld and then paid. Each employer contribution you paid.

Except for employer-paid PAYG taxes, this adjustment is only for payroll liabilities you paid. It is not for other expenses related to or paid to employees (for example, salaries, wages, and bonuses).
To learn about... Entering YTD liability payments Type in the Help index... year-to-date amounts, liability payments

Making sure your payroll data is complete

QuickBooks bases new payroll transactions on existing data so, its very important that you enter all of your payroll data accurately. After setting up your payroll system and entering your YTD information, you should make sure that it is complete and correct.
Procedure Review your Employee List. Comments The Employee List should include names of all employees on your payroll at any time during the current payroll year (even if they have left). The Payroll Item List should list everything you need to track on a payroll payment. The report should include names, addresses, and phone numbers for all employees. You should be able to match the amounts for payroll items with the amounts for payroll accounts in the payroll report from your former accounting system. Search the Help index for... employees, reports about lists, printing payroll, reports about lists, printing employees, reports about employees, reports about

Review your Payroll Item list. Review an employee contact list report. Review your payroll summary for all employees for this entire payroll year.

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Chapter 

Procedure Review your payroll liabilities as of 1 July of this year. Print a balance sheet as 1 July this year. Print a balance sheet as of 1 July last year. Print a profit and loss statement for the entire payroll year.

Comments You should be able to match the amounts for payroll items with the amounts for payroll accounts in the liability report from your former accounting system. It should match the balance sheet from your former accounting system as of 1 July of this year. It should match the balance sheet from your former accounting system as of 1 July last year. It should match the profit and loss statement from your former accounting system for the entire payroll year.

Search the Help index for... payroll, reports about

report types, balance sheets report types, balance sheets profit and loss reports

Note: Protect your companys payroll data from unauthorised access by setting up user permissions. For information about restricting access to your company file, see Users and passwords on page 93).

Changing payroll and employee information

As your business grows and changes, you will probably find it necessary to add or remove payroll items, start (and sometimes terminate) employees, and track additional information about your payroll.

Changing payroll item information

By default, the Payroll Item List is organised by payroll item type. Earnings items (for salaries, hourly pay and other payroll items) are at the top of the list. To re-sort the list, click a column header. Remember that you can use the same payroll item for many employees. You can customise hourly wage payroll items - for example, in the setup window for each employee to allow for different rates of pay. You can change the information for existing payroll items, although you probably do not want to change whether the item is subject to tax. You may want to change a payroll item, for example, because: The annual limit for a deduction changes. Your accountant wants you to assign it to a different account.

If youve set up a payroll item properly, you most likely wont need to change the way it affects taxes, even if you need to change other information. Also, you dont have to create different earnings and other non-tax items for each employee as you can customise amounts or percentages in their setup window.

Setting up payroll

11

You cant delete special payroll items that QuickBooks creates for you (such as PAYG Tax and Holiday Loading), but you can hide them by making them inactive.

How changes to payroll items affect QuickBooks

Changes you make to payroll items affect new payroll payments you create, and certain changes can also affect how past payments are classified historically on tax forms, reports, and payment details. Changing the following information for a payroll item affects employee profiles and all previously-created payroll payments: Payroll item name Account(s) assigned to it (liability or expense) Whether it is calculated on Gross Pay or Net Pay PAYG tax affected (for additions to or deductions from gross pay) How the item is calculated on the payroll payment (For example, Selecting or clearing the Based on Quantity option if the payment is based on a unit or quantity you must enter into QuickBooks, such as units sold.)

Changing the following information affects future payroll payments only:

Changing employee information

You can change an employees personal or payroll information whenever necessary, and the changes will affect all future payroll payments you write to them. Changes you make to an employees name and address are also reflected in previously-written payroll payments, but do not affect any of the amounts on those payroll payments. The following types of information must be changed individually for each affected employee. Changing the payroll item doesnt affect the employees who use it. Annual limits for a deduction Rate or amount changes for a deduction, addition or employer contribution

Note: Change the information in the employee defaults first. In many cases, QuickBooks asks if you want to also change the information for all matching employees.
To learn about... Changing employee information Adding custom fields Giving an employee a rise Type in the Help index... employees, editing employees, custom fields for employees, rises for

Starting and terminating employees

When you start a new employee, simply set up a new Employee profile for their (see Setting up employees on page 156). If you have set up employee defaults (page 156), this information is copied from the defaults into the new employee profile. Then, if you need to, you can change any of the information for this particular employee. 12 Chapter 

When an employee leaves the company, you need to enter the finish date into their profile. Its a good idea to enter a finish date for an employee only after you have created his or her final payroll payment. In addition to what would normally be paid to the employee upon resignation, for example, untaken leave entitlements, employers make payments in accordance with the employment contract and/or company policies. Eligible termination payments, being in excess of the tax free limit, are subject to PAYG tax deductions at the time of payment.

Note: If you need to specify that an employee has passed away, enter a finish date for the employee as per usual and click OK. Re-open the employee record. QuickBooks now displays the Deceased check box, which you should select.
You cant delete an employee who has left your business if there are transactions associated with them. You can hide the employees name in your Employee List.
To learn about... Starting a new employee An employee finishing Eligible termination payments Type in the Help index... employees, adding employees, terminating Eligible termination payments

Hiding, showing or merging employees

You cant delete an employee who has any existing payroll transactions. Instead, you can hide an employee on the Employee List by making the employee inactive. When you make an employee inactive, QuickBooks keeps the information for the employee but hides the employees name on the Employee List and removes it from most drop-down lists that reference employees. However, the employees payroll figures still appear on payroll reports. You do not need to change or delete any transaction that references the employee. You can make an employee active again at any time. If the same employee appears in your Employee List twice, you can merge the two names if there are no payroll transactions for either instance. Merging employees is not reversible.
To learn about... Making employees inactive, hiding them, or showing them Merging employee names Deleting an unused employee Type in the Help index... employees, hiding and showing employees, merging two names employees, deleting

Setting up payroll

1

Contacting your employees by mail

In QuickBooks Pro and Premier you can use your QuickBooks data in conjunction with pre-written Microsoft Word letters to send your employees notices about such matters as accrued holiday and sick leave by standard mail.
To learn about... Using your QuickBooks data with Microsoft Word letters Type in the Help index... letters, using QuickBooks data in Microsoft Word

Customising pay slips

You can customise your own pay slips using the pay slip template from the Template List. When you have created a pay slip it will be listed in the Print Pay Slip window. Using the Customise Pay Slip template you can add, change or delete any of the various items and fields existing in the standard single template. The Layout Designer can be used to add more data and text boxes and to move existing fields. For information on paying your employees, see Paying your employees on page 168. Pay slips can provide the following information: 1. 2. 3. Employees full name, address, and Employee number Pay period start and end dates Salary or hourly rate and hours, and gross pay for the pay period Deductions from and additions to the gross pay, including PAYG tax withholding or exemptions Net pay Accrued leave time used and available, if you have chosen to print them in the Payroll & Employees preferences Payroll-year-to-date amounts for the preceding items Relevant tax withheld information Employment status Dissection to bank accounts Superannuation information Click Lists menu > Templates. Click Templates > New. Select Pay slip and click OK.

To customise a pay slip:

1

Chapter 

4. 5.

Use the various tabs in the Customise Pay Slip window to change the template to suit your needs. Click Layout Designer to view the customised pay slip and edit it further.
Type in the Help index... pay slips, preferences for email, pay slips

To learn about... Printing pay slips Emailing pay slips Use the Format tab to add your logo and to change fonts, including font stylefor example, italic, boldand size. Use the Header tab to change the title of a form or other information in this part of the form.

Use the Fields tab to change the information shown on this part of the form.

Use the Columns tab to change the order in which columns display. The Amount column always displays furthest to the right. You can also rename, add, or delete columns.

Note: Depending on your location it may be compulsory to include certain elements on an employees pay slip. Please ensure you understand the relevant legislative requirements when customising your company pay slips.

Setting up payroll

1

1

Chapter 

Working with payroll

Using payroll Paying your employees Paying PAYG tax and liabilities Preparing year-end payroll forms

10
168 168 172 175 176 178

Emailing pay slips and payment summaries Getting information about your payroll

QuickBooks helps you track employee information and compensation. With the payroll features, you can create payroll payments, administer holidays, bonus payments and benefits, and track data for end-ofyear forms. *The Payroll feature is not available in New Zealand.

Using payroll
After you have set up employee details, payroll items and have begun to record everyday work-related information for an employee, you can begin to carry out all the standard payroll processing tasks. Payroll processing tasks include: Paying your employees Paying PAYG tax and liabilities Preparing year-end payroll forms Emailing pay slips and payment summaries Running payroll reports

Before you begin processing payroll payments, be sure that your payroll system is set up completely and correctly (see page 146). Also, you should go online to download the latest tax table or install it from disk (if you received one).

Paying your employees

The vast majority of the effort involved in payroll processing is in the setting up of employees, payroll items and preferences. When you actually come to process your payroll, if you have set up the system correctly, the process should be straightforward. This chapter offers an overview of the processes you need to follow. The QuickBooks in-Product Help contains more detailed information, as well as suggestions for how to streamline your payroll processes.

Selecting employees to pay

To select which employees you want to pay, choose Employees menu > Pay Employees.
If you enter hours worked, time in lieu, sick or holiday time, or other variations from pay period to pay period, select this option. If all your employees are salaried and receive a standard payroll payment for this pay period, select this option.

You can sort the list by either the employees first or last name, according to the setting in Payroll and Employee Preferences. When you create a payment, the date changes to the latest pay period end date for the employee.

You can specify different payment date and pay period ends date on the payments, if you need to.

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Note: Use the Payment Date field to enter the date that the selected employees will be paid. The Pay Period Ends field is used to record the last day of the pay period for selected employees. QuickBooks will automatically determine the start date of the pay period by reference to the pay frequency of that employee.
When youve selected the employees you want to pay, click Create to display payment information for the first employee.

Note: You can pay employees in groups. For example, first select your monthly employees, whose payments you dont need to review, and pay them. Then select your weekly employees and choose to preview their payments so you can enter their hours.

Previewing, adjusting, and creating payroll payments

Select the Enter hours and preview payment before creating option in the Select Employees To Pay window. Click Create and QuickBooks will open the Preview Payroll Payment window. The Employer Summary shows employer-paid taxes and contributions that do not directly affect the amount of the payment. The Employee Summary shows wages, commissions, withheld taxes, and other additions and deductions that print on the voucher of the pay slip.
If the employee is paid by the hour, edit the number of hours worked for each rate. (QuickBooks fills in the hours either from time data or from the last payroll payment.) If the employee is paid on salary, you can enter hours if you want to split the salary amount between jobs. However, QuickBooks calculates the amount of the payment from the employees pay period and total annual salary. If a commission, addition, deduction, or employer contribution is based on a quantity, enter it here. (Based on Quantity option must be ticked in the associated payroll item.) If this is a bonus or commission cheque, you likely dont want sick or holiday time to accrue for it. To prevent sick and holiday time from accruing for this payment only, select this check box.

To process advanced holiday pay, select this check box.

Working with payroll

1

In the Preview Payroll Payment window, you can do all of the following: View the amounts QuickBooks calculated for each payroll item (including gross earnings, taxes, and all other additions, deductions, and employer contributions) for the payment Enter or edit the number of hours worked Enter sick or holiday time, or prevent these from accruing (on this payment only) Enter extra hours worked and time in lieu taken Enter the base quantity on which to calculate commissions, additions, deductions, or employer contributions that are based on quantity Add or delete wage, commission, addition, deduction, or employer contribution payroll items Pay employees Advance Holiday Payments

Note: To suppress the payment of regular salary on a bonus payment, delete the salary item in the Preview Payroll Payment window. (Select it and press CTRL+DEL.)
Edit the amount for any payroll item Updates the pay period end date of the last payment written for the employee, and removes the Select mark in the Select Employees to Pay window Creates a payroll payment (a cheque/bank online transaction and pay slip) for your employee for the net amount, showing the deductions Increases or decreases the employees accrued sick, holiday or other leave time by the amount entered for the payroll payment If you selected the Do not accrue time check box in the Preview Payment window, you prevent the sick, holiday or other leave time from accruing for this payment only Increases or decreases time in lieu quantities; these quanities can be viewed using the Quantity by Employee Report Updates year-to-date balances for the employee Draws the amount of the payment from the bank account you chose (usually your current account) Records an increase in each affected liability account, showing the extra liability resulting from the payroll transaction (for both the employees payroll deductions and employer contributions Updates and tracks your payroll expenses in expense accounts Updates any other accounts you have assigned to any payroll items used in the payroll transaction. When QuickBooks creates a payroll payment, it does the following:

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To learn about... Previewing and adjusting payroll payments Time in lieu

Type in the Help index... payroll payments, checking amounts in Time in lieu

Reviewing and correcting payroll payments

After youve recorded a payroll payment, you can review it at any time. 1. 2. 3. 4. 5. 6. Choose Lists menu > Chart of Accounts. Select the current account on which you create payroll payments. Click the Activities button (at the bottom of the Chart of Accounts window), then choose Use Register. Locate the payment in the register. Select the payment, then click Edit Transaction. QuickBooks displays the Payment window. This window is similar to the Write Cheques and Bill Payments windows but has a Summary section instead of a voucher.
The Payment Summary section summarises earnings, additions, taxes withheld, and deductions. It also displays the pay period end date and the hours worked.

Click Payment Detail to see more detail or to edit the payment.

7. 8.

(Optional) Change the cheque number, memo, address, or the To be printed status directly in this window. (Optional) Click Payment Detail. QuickBooks displays the Review Payment window. Here, you can make any necessary corrections. When you finish, click OK. (Optional) Click Print to print a copy of the payment. For payroll cheques, the voucher gives the complete details of the payment. If you pay employees through online banking, you can print or email pay slips to provide your employees with the information that appears on a payment voucher (see Printing payroll cheques and pay slips on page 172).

9.

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Note: To ensure the accuracy of subsequent tax calculations, you cannot change certain things. On payroll payments, you cannot edit the payment date, amount, or payee. To do so, you must delete and re-enter the payment, as well as any subsequent payments to the employee. Deleting or voiding a payment
You cannot void bank online payment cheques. Instead, you must delete and (if necessary) re-enter them. However, you can only edit, delete or void the last payroll payment that you issued. You may want to do so if: A payroll cheque misprinted and you need to re-print it, but also need to account for all the cheque numbers used An employees payroll cheque is lost or stolen, and you need to reissue it There was an error in a recent payroll cheque that your employee has not yet cashed

You may want to delete a payroll payment if it is a duplicate that has not been printed yet.
To learn about... Editing existing payroll payments Deleting payroll payments Voiding payroll cheques Type in the Help index... payroll payments, changing payroll payments, deleting payroll payments, deleting

Printing payroll cheques and pay slips

You can print all your payroll cheques at one time, but you must print them separately from other cheques. Set up your printer for payroll cheques the same way as for other cheques in QuickBooks. If you dont print payroll cheques with vouchers (for example, if you pay your employees through online banking), you can print or email pay slips for your employees instead.
To learn about... Printing payroll cheques Printing pay slips Emailing pay slips Customising pay slips Type in the Help index... payroll payments, printing cheques pay slips, preferences for email, pay slips customise, pay slips

Paying PAYG tax and liabilities

When its time to pay your payroll liabilities, QuickBooks shows you how much you owe and to whom, lets you choose which liabilities to pay, and creates cheques for you. It also helps you fill in the forms you need to send in with your payments.

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Note: Always use the Pay Liabilities window to write cheques for your payroll (and other) liabilities. Do not use the Write Cheques window! If you do, QuickBooks does not update your payroll liability accounts, and your payroll reports will not be accurate.
There are three steps to creating your payroll liability cheques: 1. 2. 3. Create a Payroll Liability Balance Report to see how much you owe, to whom, and for what. Adjust the amounts you owe, if necessary. Use the Pay Liabilities window to create cheques for the amounts you owe.

Adjusting a payroll liability

In rare cases, you may find that the amount for a payroll item tracking a liability doesnt match what you actually owe. For example, there may be a small discrepancy due to rounding. You can adjust your payroll liabilities with the Liability Adjustment window. 1. Choose Employees menu > Process Payroll Liabilities > Adjust Payroll Liabilities.
Effective date

Payroll item

2. 3. 4.

Select a payroll item to adjust. Enter the date you want this adjustment to affect your payroll liability account. Enter the amount of the adjustment. A positive amount increases what you owe. A negative amount reduces what you owe. For example, if the Liability by Payroll Item Report says that you owe $450 but you know you owe $475, enter the difference: $25. (Optional) Click Accounts Affected to select how the adjustment will affect your accounts. If your liability and expense accounts have the wrong totals as well as your liabilities (the usual case), you should choose to affect your accounts. If your liabilities are wrong but your liability and expense accounts have the correct totals, choose to not affect your accounts. Click OK. Working with payroll 17

5.

6.

7.

If you chose to affect your liability and expense accounts and you adjusted an amount withheld from payroll payments, you need to adjust an expense account to offset the change in your liability account. Type the name of the expense account you want to affect, then click OK. (Most people choose Payroll Expenses.)
Type in the Help index... payroll liabilities, adjusting

To learn about... Adjusting payroll liabilities

Paying payroll liabilities

When its time to pay liabilities, you can use QuickBooks Pay Payroll Liabilities feature. 1. 2. 3. Choose Employees menu > Process Payroll Liabilities > Pay Payroll Liabilities. Type the date range for the liabilities you want to pay, then click OK. In the Pay Liabilities window, mark the payroll item liabilities you want to pay now and select options for the cheque. Before you can pay a liability, you must have a payee entered in the payroll items Payable To field. If you dont have one, youll be asked to add one here. Certain liabilities can be selected and paid only as a group.
Click Report to generate a Payroll Liabilities report for the specified period. If you want, you can change the amount youre paying in this column.

If you use QuickBooks to print cheques, select this check box. This is the date the transaction affects your bank account.

4.

Select whether you want to review the cheque(s), then click Create. After you create a cheque, the Payroll Liabilities Report shows a decrease in the amount you owe to reflect the payment. However, other reports may show the amount you owed for the period regardless of payments youve made.

To learn about... Paying payroll liabilities Adding an agency name missing in the Payable To column Creating a report that shows your payroll liabilities Entering a discount for payroll liabilities

Type in the Help index... payroll liabilities, paying payroll items, editing payroll, reports about payroll liabilities, discounts

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To learn about... Entering a penalty or fine for payroll liabilities Entering a refund cheque for overpayment of payroll liabilities

Type in the Help index... payroll liabilities, penalties payroll liabilities, refund

Preparing year-end payroll forms

Near the end of the payroll year, you need to create year-end payroll forms for your employees and Tax Office such as the payment summary and associated electronic file (EMPDUPE). 1. 2. Consult your accountant or the Tax Office for guidelines about reporting employee benefits and any items or amounts about which you are uncertain. Create and review a payment summary for each employee who worked for you at any time during the last year (see Creating and reviewing payment summaries on this page). Enter any other adjustments you need to make. Test the printing alignment by printing a sample form, and make any adjustments that are necessary (see Solving printing problems on page 99 if you have trouble). Print or email the payment summaries. (To email, see Emailing pay slips and payment summaries on page 176.) Distribute the printed forms. Create an empdupe file to send the Tax Office with your withholding payments.

3. 4. 5. 6. 7.

Creating and reviewing payment summaries

At the end of the payroll year, you must create a payment summary for each of your employees. QuickBooks can print or email these forms for you. 1. 2. 3. Choose Employees menu > Process Payment Summary. QuickBooks displays a list of all employees you paid during the year. Select the correct payroll year from the drop-down list. Mark the employees to process now.

Working with payroll

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Emailing pay slips and payment summaries

If you have Internet access and use Microsoft Outlook for your email, you can choose to email an employee a pay slip or payment summary from QuickBooks. You first need to enable an employee to receive emails by entering a valid email address in the individual employees record and selecting check boxes that enable email for pay slips and/or payment summaries.

Enter a valid email address in the employee record on the Address Info tab.

Then select the Email check box against the form you would like QuickBooks to email on the Payroll Info tab.

When you then go to process a pay, youll have the option of clicking Email Pay Slips on the Select Employees To Pay window. This displays the Select Pay Slips to Email window, from where you can select pay slips to email employees.

Also, when you go to process payment summaries, youll have the option of emailing a payment summary after it has been successfully reviewed. Click Email and follow the onscreen prompts.
If you get this dialog box from Microsoft Outlook, click OK. Outlook needs you to confirm that QuickBooks can access your email from outside Outlook.

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Pay slips and payment summaries are attached to emails as Portable Document Format (PDF) attachments. Microsoft Outlook may advise you each time you email a pay slip or payment summary that the attachment you are emailing may be harmful. You can safely ignore this message. To avoid receiving these messages, go to Edit menu > Preferences, select Online and then Company tab and Select the Display each email when sending more than one check box.
To learn about... Emailing pay slips Emailing payment summaries Type in the Help index... email, pay slips email, payment summaries

Creating an electronic file (EMPDUPE)

After you print or email your payment summaries, you also need to create an EMPDUPE file that contains the payment summary data you have just printed. The EMPDUPE file is used to supply the Australian Taxation Office with payment summary information for all employees in your company. QuickBooks takes the data from each employees payment summary and stores it in a spreadsheet. To create an accurate EMPDUPE data file, you must first review and print or email your payment summaries. 1. Choose Employees menu > Process Payment Summaries and select all employees Note that all employees in the INB Payment Summary list, and those with ETP payments in the ETP Payment Summary list, will be included in the EMPDUPE data file, whether you have selected them or not. Review the payment summaries. Click Electronic File. QuickBooks creates the EMPDUPE file and places it in the QuickBooks root directory or another folder that you select. Using Windows Explorer, copy the EMPDUPE file from your PC to a disk (your A:\ drive) for sending to the tax office.

2. 3.

4.

Note: The EMPDUPE file must be accompanied by a Magnetic Media Information form when you send it to the tax office. Instead of submitting the EMPDUPE file via magnetic media, you can use the ATOs online submission process (ECI).
To learn about... Creating an EMPDUPE file Submit an EMPDUPE file online Type in the Help index... EMPDUPE, creating EMPDUPE, submit online

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Getting information about your payroll

Use these QuickBooks reports to gather the payroll information you need:
Report Payroll summary Description Shows the total wages, taxes withheld, deductions from net pay, additions to net pay, and employer-paid taxes and contributions for each employee on your payroll. Lists the payroll transactions on which each payroll item appears. For example, you could use this report to find out which payroll payments had deductions for a dental plan. Provides detailed information about how QuickBooks calculates tax amounts on employee payroll payments and in year-to-date transactions. You can use this report as a research tool to see exactly what numbers QuickBooks used to calculate the tax amounts. Shows information similar to the Payroll Summary Report, but in a different layout. Shows the base amount of State Payroll Tax liability (for all states) based on State Payroll tax table calculations for the specified date range, broken down by employee detail. This report shows the base amount of State Payroll Tax liability (for all states) based on State Payroll Tax table calculations for the specified date range. Lists payroll transactions, grouping them by payee. For example, you could use this report to create a listing of the payroll payments you paid to each employee. Shows the line item detail that appears on each payroll transaction. Lists the payroll liabilities your company owes to tax agencies and labour unions for example. Lists payments you have made to super funds in order of super fund. Use this to work out the cheque you need to write a super fund to cover relevant contributors. Lists the amount of super you have paid to a super fund for each employee. This includes compulsory and non compulsory payments. Lists the compulsory SGA payments you have made to a super fund for each employee. Lists chronologically the transactions related to a particular employee. This report is available from the Employee List by clicking the Report menu button. Shows detailed information about each payroll item you use to track payroll-related expenses and liabilities. Lists chronologically the payroll transactions that contain a particular payroll item. This report is available from the Payroll Item List by clicking the Report menu button.

Payroll item detail

Payroll detail review

Employee earnings summary State Payroll Tax Detail (Australia only) State Payroll Tax Summary (Australia only) Payroll transactions by payee Payroll transaction detail Payroll liability balances Super Report by Fund

Super Report by Employee Employer SGA Contributions Employee QuickReport Payroll item listing Payroll item QuickReport report

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Report Quantity by Employee

Description Lists transactions processed under the Other type of payroll item. The reports which are generated show a total, per employee, of the Quantity processed. Use this report to view employees time in lieu quantities or commissions.

Finding out how much you owe for payroll liabilities

Lets say you want to see how much you currently owe for payroll tax for the current payroll period. You can find out quickly by creating a Payroll Liability Balances Report. This report shows liabilities incurred during the date range specified that are still unpaid or outstanding.

Finding out how much you spend on your payroll

Lets say you want to know how much money you spend on your payroll. You can run a Payroll Summary Report to see your payroll totals by employee and for the whole company for a single payroll period.

Figuring out what wage amount each tax is based on

For each tax amount on employee payroll payments, you may want to check the amount of wages it is based on. You can generate the Payroll Detail Report to see the amount for every earnings base and tax transaction on payroll payments.

Finding out how much to pay a super fund

Lets say that of fifteen employees for which you have to make super contributions, five have their super fund with Colonial First State, another six with ING and a further four with Bankers Trust. Rather than writing 15 individual cheques for each employees contribution, you can write three chequesone for each fund provider for who you are providing payments. So how do you know how much to pay and to whom? Simply run the Super Report by Fund to see your super payments organised around the actual fund providers, then see the total your business is paying a single super fund within the particular period. Then write one cheque for each fund and send with a report of employees for which the payment is covering. QuickBooks also includes Super Report By Employee if you want to see how much you are paying into each employees super fund, or Employer SGA Contributions if you want to see the same but only for payments linked to the SGA.

Note: For information on how to pay all your superannuation funds online, see Pay many superannuation funds at once using SuperLink on page 218.
To learn about... Payroll reports Paying many super funds electronically Type in the Help index... payroll, reports about SuperLink

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Using the Timer and Stopwatch

Should I track time? Setting up and using the Timer Using the Stopwatch to time an activity Paying for time worked Charging customers for time worked Installing the Timer

11
182 186 191 193 194 196 197

QuickBooks Pro/Premier Timer Reference Sheet

Time tracking, available only in QuickBooks Pro, QuickBooks Premier and Custom Editions, allows you to track hours worked by yourself, employees, or subcontractors. You can make the time billable for specific jobs. QuickBooks can then transfer the tracked time to pay cheques, regular cheques, and bills from subcontractors. Cost tracking allows you to pass costs along directly to your customers.

Should I track time?

QuickBooks Pro and Premier provides time-tracking capability to suit your needs: The Stopwatch: When youre working in QuickBooks and want to take a stopwatch approach (that is, turn on a timer, work, and then stop the timer), use the Stopwatch on the Time/Enter Single Activity window. The QuickBooks Timer: The Timer is a separate program that runs on any computer running Windows. Because its separate, you can distribute copies of the Timer to people who dont have access to QuickBooks, such as employees and subcontractors. Then you can merge their time data into the QuickBooks company file. You can also enter time data manually into QuickBooks in the Weekly Timesheet window or Time/Enter Single Activity window.

Tracking time can help you make better decisions about work capacity, future hiring needs, and employee productivity. Furthermore, if you track the time you, your employees, or your subcontractors spend on each job, youll be able to: Invoice customers based on the number of hours of work done for them Automatically fill in hours on pay cheques When paying subcontractors, automatically fill in hours on cheques and bills Track payroll costs by job, class, or type of work Report hours worked by person, job, or type of work Track billable versus non-billable time

Should I make time billable?

When you record time worked for a particular customer or job, one option is to mark it as billable. Then, when you invoice the customer, you can add the billable time to the invoice. After you put the time on a sales form, QuickBooks marks it non-billable, so you wont charge twice for the same thing. If the work done by your employees is billable to a customer, it becomes billable as soon as you record the time in QuickBooks. It doesnt matter whether you have actually paid the employees for it yet. Some businesses track time without making it billable. For example, if you agree to do a job at a fixed price, you would not invoice for time. However, you may still want to track time so you can decide after completing the job whether you set the right price. Also, you can track accrued time (like sick time), which is normally not billable.

Should I track time for subcontractors?

Most businesses dont need to track time for subcontractors, with a few exceptions: On time reports, you want to see all time for a particular job, whether for an employee, a subcontractor, or an owner. If your company has only one employee now. By tracking time worked by subcontractors, youll know what to expect when you have employees doing this type of work in the future.

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You want to track subcontractor time independently of the time subcontractors report on the bills they submit to you. You give subcontractors copies of the Timer program and ask them to return time data to you weekly so you can track how many hours have been spent on your project long before you receive the bills. You want to pay subcontractors based on time worked, using the time information entered in QuickBooks. You track time for subcontractors and pay them within 30 days. On a weekly basis, you enter a bill for each subcontractor and transfers the time worked during the previous week.

How much detail should I track for time activities?

You track time based on activities. Each activity needs, at a minimum, the following to describe it: Name of person who did the work Date the work was done Time spent doing the work

The level of detail you include when tracking an activity depends on whether or not its billable and how much detail you want in your reports.
Describe an activity by specifying Name of person who did the work Date the work was done Time spent doing the work Customer (and job) the work is for Comment Required. Required; each activity can be for only one date. Required. (If you use the Timer or the Stopwatch to time an activity, fill in the time spent.) Required only if you plan to invoice for the time. Even if you dont invoice for the time: Allows you to report on hours worked by customer and job. Allows you to track payroll expenses by customer and job. Required only if you plan to invoice for the time. Even if you dont invoice for the time: Allows you to report on hours worked by type of work. Allows you to track payroll expenses by type of work. Time must be billable if you plan to invoice for the time.

Type of work (described by a service item from the Item List)

Whether time is billable

Using the Timer and Stopwatch

18

Describe an activity by specifying Class

Comment If your company does class tracking, you can do the following: Filter time reports by class. Assign classes to employee time, if you are set up to split payroll item expenses by class. Then you can track all payroll expenses by class automatically.

Choosing a method to track time

QuickBooks Pro and Premier come with a separate Timer program that can run regardless of whether QuickBooks is on the same computer. You can track time with the Timer and transfer the time data into QuickBooks later. You can also use the built-in Stopwatch or enter time data into QuickBooks manually using weekly timesheets.
Situation You have access to QuickBooks and want to use a stopwatch approach to time tracking: turn on a timer, work, then stop the timer. You want people who dont have access to your QuickBooks company data file to track their own time. How to track time Use the Stopwatch in the Time/ Enter Single Activity window in QuickBooks Pro. See Setting up QuickBooks Pro/ Premier to track time on page 185 Using the Stopwatch to time an activity on page 191 Setting up QuickBooks Pro/Premier to track time on page 185 Setting up and using the Timer on page 186 Importing Timer data into QuickBooks Pro/Premier on page 190 Installing the Timer on page 196 Setting up QuickBooks Pro/Premier to track time on page 185 Entering time manually into QuickBooks on page 191 Setting up QuickBooks Pro/Premier to track time on page 185 Entering time manually into QuickBooks on page 191

Distribute copies of the QuickBooks Timer to these people, and have them give you their time data.

You (and others in your company) have access to QuickBooks and want to enter time data after the work is done. Your employees submit paper timesheets.

Enter time data directly into QuickBooks Pro, either on a weekly timesheet or as separate activities one at a time. One person can enter everyones time data directly into QuickBooks Pro on a weekly timesheet for each person.

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Setting up QuickBooks Pro/Premier to track time

You must do this preparation before other users can install and use the Timer.
What to set up Turn on time tracking. Comments The timesheet starts with the day you choose as the first day of your work week. If you dont plan to track time for a customer or job, you dont need that name on the Customer:Job List now. Service items are required only if you make the time billable to a customer or job. Be sure to create separate service items for subcontracted services. If you plan to pay employees based on tracked time, you must also set up their payroll information. See: Setting up to use time tracking with payroll on next page. It is important to create sub-accounts for Super and PAYG Tax to allow for the relevant amount to be selected for the BAS report. Refer to your accountant for more details. Required only if you will track time for employees. Search the Help index for preferences, time

On the Customer:Job List, set up the customers and jobs you want to track time for. On the Item List, set up service items for the work to be tracked.

customers, adding new jobs, adding new service items, setting up subcontractors, service items for

Set up the people whose time will be tracked. Each name must be on one of the following lists: Employee Other Name (for owners and partners) Supplier (for subcontractors)

employees, adding other names, list of suppliers, adding

On the Payroll Item List, set up salary or hourly wage payroll items to use when paying employees for time tracked. On the Class List, set up classes for the work to be tracked.

hourly wages salaries

Class tracking is completely optional.

classes, adding

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18

Setting up to use time tracking with payroll

When you set up your employees, be sure to tick Use time data to create payment on their Payroll Info tab. Payroll payments will then automatically have the employees time data (including job, class, and type of work) for the period covered by the payment. QuickBooks keeps track of your payroll expenses for hourly or salaried gross pay, employer taxes, and other payroll overhead by job, class, and type of work.

Setting up and using the Timer

How the Timer works with QuickBooks Pro and Premier
The QuickBooks Timer is designed to track and record time data which you can then export to QuickBooks Pro or Premier. Use the Timer when you want to gather time data from people who dont have access to QuickBooks but do have access to a computer.

Note: If you simply want to time an activity in QuickBooksnot gather time data from othersuse the Stopwatch instead. See Using the Stopwatch to time an activity on page 191.
You can make copies of the Timer program to give to other people whose time you want to track in QuickBooks. When you do, photocopy the two-page Quick Reference Sheet on page 197 for them as well.

Note: If you distributed the Timer program that came with an earlier version of QuickBooks, replace those copies with the Timer program that comes with this version of QuickBooks. The newer version of the Timer can update company files created by the earlier version.
This flowchart shows the relationship between the Timer and QuickBooks.

The two programs share information this way: 18 Chapter 11 QuickBooks exports lists, such as the Customer:Job List. The Timer imports those lists. The Timer records data about time activities for the jobs, then exports it. QuickBooks imports the time data.

Setting up the Timer

Before you can set up the Timer, you must first install it, see Installing the QuickBooks Timer from CD-ROM on page 7. Also, be sure to do all the tasks on the following task list. The task list for setting up the Timer shows whether the QuickBooks user or the Timer user has to do the task (in case they are not the same person).
Task Which user and which Help index? QuickBooks Search the Help index for Timer, exporting lists to

Export QuickBooks lists for the Timer and give the file to the Timer user. Prepare Timer install disks (if the Timer user cant use the QuickBooks CD-ROM). Install the Timer on the users computer. Create a Timer data file for the QuickBooks company file that will be using the Timer data. Import QuickBooks lists in the IIF file into the Timer data file. From the Timers list of users, choose the name of the person whose work will be recorded in this Timer file.

QuickBooks

Timer, creating disks for

Timer Timer

See Installing the Timer on page 196. data files, creating (search the Timer help) lists, importing (search the Timer help) default user (search the Timer help)

Timer Timer

Exporting lists from QuickBooks Pro or Premier for the Timer

The first step in getting the Timer ready to use is to prepare a file with the information the Timer needs to work with your company file. You need this file because the Timer must describe activities using the exact same names that are on your lists in QuickBooks. To create an IIF file, choose File menu > Timer > Export Lists for Timer. Now follow the instructions on your screen. If the Timer will be used on another computer, the exported IIF file should be copied either to a floppy disk or on a network that both computers can access.
To learn about Preparing a file from QuickBooks lists, for use by the Timer Search the Help index for Timer, exporting lists to

Using the Timer and Stopwatch

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Using the Timer

After you have done the tasks described in Setting up QuickBooks Pro/Premier to track time on page 185 and in Setting up and using the Timer on page 186, you are ready to track time with the Timer.

Recording activities in the Timer

You can use the Timer either to time an activity while you are doing it, or to record the time after you have finished.

The first time you do an activity for a given customer, job, and type of work, you have to set up the activity in the Timer. To understand how much detail you should include in an activity, see How much detail should I track for time activities? on page 183.

Once you have set up an activity, you can choose it from the drop-down list as a template for the new days work (instead of setting it up again every day). You can also add a note while timing an activity or after completing it.
To learn about Timing an activity while you are doing it Recording an activity after doing it Recording notes about an activity Search the Timer Help (not the QuickBooks Help) for activities, setting up for timing activities, timing activities, entering time for manually activities, adding notes to

Viewing and editing recorded activities

You can view a list of the activities youve recorded in the Timer. However, you cannot print this list (or anything else) in the Timer. After you export time data to QuickBooks, the QuickBooks user can print the list of activities. 188 Chapter 11

To learn about Viewing a list of all recorded activities within a specified date range Changing information about a recorded activity Deleting a recorded activity

Search the Timer Help (not the QuickBooks Help) for activities, viewing data about activities, editing data about activities, deleting the record of

Viewing and changing customer information

When you import information from QuickBooks, you import customer contact information as well as customer names. If a customer is imported from QuickBooks, or if you already exported Timer data for the customer, you cannot change the information about them. Instead, the QuickBooks user must change the information and give you an updated file. You can add a new customer to use when recording an activity. However, you cannot add a job for a new or existing customer. The Help topic suggests what to do instead.
To learn about Viewing contact information about a customer Adding, editing, or deleting a customer Search the Timer Help (not the QuickBooks Help) for customers, contact information for customers, adding customers, editing customers, deleting

Managing Timer data files

From time to time, you will need to update the lists in your Timer data to make them match those in the QuickBooks company file. The QuickBooks user must prepare the updated list and make it available for importing into the Timer. If you track time for more than one QuickBooks company, you must have separate Timer data files. To back up a Timer file, choose File menu > Backup from within Timer. To use the backed up file again, choose File menu > Restore from within Timer. Also, you can reduce the file size of a Timer data file by choosing File menu > Condense from within Timer.
To learn about Updating the Timers lists of customers, jobs, service items, and classes to match changes in the QuickBooks file Backing up your Timer data onto a floppy disk or your hard disk Search the Timer Help (not the QuickBooks Help) for lists, updating

data files, backing up

Using the Timer and Stopwatch

18

To learn about Restoring a backup of Timer data so you can use or view it Reducing the size of your Timer file Switching to the Timer data file for a different QuickBooks company

Search the Timer Help (not the QuickBooks Help) for data files, restoring from a backup disk data files, condensing to save disk space data files, opening

Exporting Timer information to QuickBooks

When you are finished recording time, you need to export your recorded activities to an IIF file that QuickBooks can import.
To learn about Exporting activities to an IIF file that QuickBooks can read Search the Timer Help (not the QuickBooks Help) for activities, exporting to QuickBooks

Importing Timer data into QuickBooks Pro/Premier

After the Timer user exports their time data into an IIF file, you can import it into your QuickBooks company file. In addition to activities, QuickBooks imports any items on lists (that is, names, service items, classes) that are not currently on the corresponding QuickBooks lists.

After importing information from the Timer, check the Timer Import Detail report to ensure that the correct payroll items are assigned to each activity. The Timer Import Detail report is only available from the Import Summary window.
Time reports in QuickBooks show all timed activities, including those imported from the Timer. To create a report similar to the Timer Import Detail Report, you can customise a Time by Job Detail Report to add columns for payroll item and import date.
To learn about Importing a Timer IIF file into the QuickBooks company file Viewing a report of the imported Timer activities or the imported items on lists Editing an imported activity in QuickBooks Viewing a report on activities exported to or recorded in QuickBooks Search the QuickBooks Help index for Timer, importing timed activities from Timer, reports about imported activities time, entries time, reports about jobs and time

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Using the Stopwatch to time an activity

Use the Stopwatch on the Time/Enter Single Activity window in QuickBooks Pro or Premier when you want to time an activitysimply start the Stopwatch, work, and stop it when youve completed the work. To start the Timer, choose Employees menu > Time Tracking > Time/Enter Single Activity.
Once recorded, the time shows up in both this window and in the Weekly Timesheet window.

Use the Duration section either to time an activity or to enter a time for the activity.

To see how much detail to include when you time an activity, see How much detail should I track for time activities? on page 183.

Entering time manually into QuickBooks

If you want to enter time data a week at a time and you generally dont enter a lot of detailed notes about your activities, use the Weekly Timesheet window to enter time data manually.

Using the Timer and Stopwatch

11

On the weekly timesheet, the far-right column has symbols that indicate whether the time is billable, not billable, or already billed.

If you tend to enter a lot of detailed notes about your activities or prefer to enter time data as you complete each activity, use the Time/Enter Single Activity window. When you fill in and record a Time/Enter Single Activity window, you can later view the information on a weekly timesheet. Conversely, when you fill in and save a weekly timesheet, you can view Time/Enter Single Activity windows that each show the work on one job on one day. The two are simply different views of the same data, similar to views of individual cheques versus your cheque register.
To learn about Blank timesheets Filling out a weekly timesheet Entering details for a single activity Using the Stopwatch to time an activity Search the Help index for timesheets, blank timesheets single activity entries Stopwatch

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Paying for time worked

QuickBooks does not track whether you have paid workers for time or not, only whether you have passed time costs on to your customers. If you pay a worker (employee, owner, or subcontractor) for time and then edit the time data or import new data from the Timer, QuickBooks does not track which time has been paid for and which has not. All it tracks is the end date of your last payment for time to the worker. To avoid paying for the same time twice, make sure your worker has submitted all their time data for a period before you create a payroll payment covering that periodthat is, pay a worker only for work that takes place after the end date of your last time payment to them. If you accept late time data, print a Time by Job Detail Report and mark the activities you are paying for.
QuickBooks automatically transfers time data when you create payroll payments for employees who are set up for time tracking. It fills in the hours for each salary or hourly wage payroll item included in the time data for the payroll period. If customers or jobs, service items, or classes are assigned to an employees time activities, this detail is also included. For example, out of 40 hours altogether, 19 may be assigned to Job A, 11 to Job B, and the remaining 10 hours to Job C. QuickBooks then splits the payroll expenses for the employee according to how you assigned the time.

Paying non-employees for time worked

Some businesses need to pay people who are not employees (such as owners, partners, or subcontractors) based on time worked. QuickBooks can transfer time data for a specified date range to a payment to a non employee. That is, it can fill in the number of hours worked and the rate for that type of work. To pay a subcontractor or other supplier, you can either write a cheque (if you want to pay immediately) or enter a bill (to be paid at a later time). To pay an owner or partner (someone on your Other Names List), you can write a cheque.

Note: To show payments for time worked on reports, set up subcontractors as suppliers. Always use the subcontractors supplier name when you track time and pay them. Then QuickBooks will report the amount paid correctly.
To learn about Setting up an owner or partner Adding a name to the Supplier List Editing an employee name Search the Help index for owners partners, setting up suppliers, adding employees, editing

Using the Timer and Stopwatch

1

Service items for non-employee time data

If you plan to transfer time data for non-employees to a payment, it should have a service item assigned to it. QuickBooks uses the rate for purchases of the service item when calculating how much to pay a non-employee for the hours worked. Service items for subcontractors (suppliers) When you pay a subcontractor set up as a supplier, the payment is an expense to the business. You should assign the time to a service item set up to track costs in an expense account. (This service item should not be used for owners or partners.) Service items for owners or partners When you pay an owner or partner, the payment is a drawing against equity rather than being an expense to the business. You should assign the time to a service item set up specifically to track costs in that persons equity account. The service item should not be used for any other purpose.
To learn about Setting up a service item for services with both costs and income Search the Help index for service items, for subcontractors

Transferring non employee time to a payment or bill

When you pay a non employee for time worked, use the Write Cheques window. (To pay employees, always use the payroll system!) When you write the cheque or enter the bill, QuickBooks alerts you if there is current time data for the payee. If you want to pay for the time now, you can specify the date range the payment should cover. Then QuickBooks pre-fills the Items tab of the payment with the service item, customer and job (if any), rate, number of hours, and amount.
To learn about Writing a cheque to pay a non-employee for time worked Search the Help index for time, paying non-employees for

Charging customers for time worked

You can transfer time data to an invoice for a customer as long as the time data includes the Customer:Job name, is recorded for a service item, and is marked as billable. As you create an invoice, you can display the unbilled time for the job and select what to include. When you record the invoice, QuickBooks Pro and Premier marks the time youve selected as billed, so you wont bill for it again by mistake.
To learn about Transferring time to invoices Making time billable again if you billed for it mistakenly Search the QuickBooks Help index for invoices, time and cost time, making billed time billable again

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Recording the cost of the work vs. invoicing for it Dont make both a workers time and your payment to that worker for the time billable. If you make an invoice from a subcontractor billable, you can invoice your client in turn for the subcontractors charges. When invoicing your client, open the Choose Billable Time and Costs window, then select the subcontractors bill from the Expenses or Items tab (whichever you used on the subcontractors bill). If you pay a subcontractor, owner, or partner for time worked with the Write Cheques window, you can make the service items on the cheque billable. Then, when invoicing your client, open the Choose Billable Time and Costs window, then select the time from the Items tab. If you make the time itself billable, you can invoice for the time from the Time tab of the Choose Billable Time and Costs window. If you make both the time and the bill or payment billable, you are in danger of invoicing the customer twice for the same work!

When you record time or bill your customer for it, you are not recording its cost to you. To record the cost, you have to take a second step. The following table shows how you record costs for time worked and what you have to do to invoice customers for work.
The work is done by Employees Subcontractors (suppliers) You record the cost of the work when you Pay the employees. Enter bills from the subcontractors (or write cheques or enter credit card charges for the work). To invoice other people for the work Make the time billable. On the bills, cheques, or credit card charges, make the items or expenses billable OR track the time and make the time billable Make the time billable OR write a cheque to pay for the time worked, and make the items on the cheque billable.

Owners or partners

Payments to owners or partners for time worked are a draw against equity, not an expense, and therefore do not affect the net profit.

Using the Timer and Stopwatch

1

Installing the Timer

You can make copies of the Timer program and its Quick Reference Sheet to give to people whose time you want to track in QuickBooks Pro. Be sure you have completed Setting up QuickBooks Pro/Premier to track time on page 185 and Setting up the Timer on page 186 before you do.
The QuickBooks Pro CD-ROM allows you to create a set of 3.5-inch install disks to give to a person who needs the Timer. Once you have created the disks, see the QuickBooks Timer Reference Sheet for installation instructions.
To learn about Using the CD-ROM to create a set of install disks for the Timer Search the QuickBooks Help for Timer, creating disks for

1

Chapter 11

QuickBooks Pro/Premier Timer Reference Sheet

The Timer and QuickBooks Pro or Premier Installing from 3.5-inch disks
1. 2. 3. 4. Insert the first Timer install disk in your 3.5inch disk drive. Choose from the Windows task bar Start menu > Run. Type the letter of your floppy drive, then \: install (for example, a:\install), then click OK. Follow the instructions on your screen.

Starting the Timer

Before you can use it, the Timer needs to import information from QuickBooks Pro or Premier. Then use the Timer to time your activities. Finally, export a file of time data for QuickBooks Pro or Premier to import. Choose from the Windows task bar Start > Programs > QuickBooks Pro [or Premier] > QuickBooks Pro [or Premier] Timer.

Setting up the Timer

1. In the Open Timer File window (displayed the first time you start the Timer), choose Create New Timer File, then click OK. Type a name for the Timer file and the location to save it, then click OK. Open the Timer and choose File menu > Import QuickBooks Lists. Select the name of the .IIF file to import from QuickBooks Pro or QuickBooks Premier. (You may have to navigate to a new drive or folder.) Click OK. The person who works with QuickBooks Pro or QuickBooks Premier must make this IIF file available to you. 5. 6. 7. 8. Choose in Timer, File menu > Preferences > Default Name. Choose your own name from the drop-down list. If your time is always billable to a customer or job, select the check box, then click OK. Fill in the fields you need and click OK. For help with this window, click Help.

Installing from the QuickBooks Pro or Premier CD-ROM

Other users can only install the Timer from the QuickBooks CD-ROM, not QuickBooks too. 1. 2. Insert the CD-ROM in your CD-ROM drive. If the Installer starts automatically: Click Other Installation Options and choose Timer. If the Installer does not start automatically. display the Run window: Choose from the Windows task bar Start menu > Run. Type the letter of your CD-ROM drive, then :\timer\install.exe and click OK. Follow the instructions on your screen.

2. 3. 4.

Using the Timer and Stopwatch

17

18

Chapter 11

Online Banking

Online banking in QuickBooks Setting up online banking Importing statements

12
200 200 202 205 207

Paying employees and suppliers using online banking Creating an online banking (ABA) file
It is now becoming more and more common to do all your banking from your desktop. This chapter

covers setting up your system for online banking, creating online payments for employees and suppliers, importing bank statements as well as matching and reconciling imported transactions with your existing QuickBooks accounts.

Online banking in QuickBooks

Online banking in QuickBooks covers two different forms of banking: importing and reconciling online bank statements, and paying your employees and suppliers directly using direct bank deposit: Online banking in QuickBooks allows you to: Import an electronic record of your transactions from your financial institution. Import and match the electronic QuickStatement to the transactions recorded in your QuickBooks accounts. This way your books are always up to date and you can be sure that both you and your financial institutions records are accurate. Pay employees and suppliers (including the tax office) using an online banking file (ABA format). Process automatic payments from your bank account via bank deposit directly to your employees and suppliers.

Setting up online banking

Before you can use online banking in QuickBooks, you need to set up some specific company preferences, enable your QuickBooks accounts for online banking, and understand how to use the Online Banking Centre.

Setting up online banking preferences

QuickBooks has some company preferences that affect online banking that you need to check before setting up your online accounts. Two types of company preferences affect online banking: 1. 2. 3. Banking preferences Online preferences Choose Edit menu > Preferences. QuickBooks displays the Preferences window. In the Banking preferences, click the Company Preferences tab. Enter your companys APCA number in the Default APCA number field. The APCA number identifies your business or company to the bank.

To set up your banking preferences:

If you have more than one APCA number (for example, an APCA number for different financial institutions) you should enter the one you use the most as the company default, and enter any other APCA numbers at the account level (see the note on page 201).

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To set up your online preferences:

1. 2. 3. From the Edit menu, choose Preferences. QuickBooks displays the Preferences window. In the Online preferences, click the Company Preferences tab. Select the check boxes next to your preferred WebConnect and email preferences.

Note: WebConnect settings do not affect any files in .QIF format. See Importing statements on page 202 for more detail.

Enable an account for online banking

Before importing a statement or making online payments, you need to set up bank accounts in QuickBooks to mirror your real life accounts. You then need to enable these QuickBooks accounts for online banking. 1. 2. Choose Company menu > Chart of Accounts. Click and highlight the account you want to enable for online banking. Choose Accounts > Edit. QuickBooks displays the Edit Account dialog. Click the Online Bank Details tab. Select the Online Account Access check box to enable the account. QuickBooks enables the remainder of the fields in the Online Bank Details tab. Complete the required details. Click Help if you need assistance with any field.

3.

4. 5.

6. 7.

Note: Include your businesss APCA number only if you require a separate APCA number for this account than the default number stored in your companys banking preferences. An APCA number entered at bank account level overrides the number entered as the company default (for this account only).
To learn about Entering an APCA number in QuickBooks Search the Help index for online banking, entering an APCA number in QuickBooks

Online Banking

201

Navigating the Online Banking Centre

Once you have enabled at least one account for online banking, QuickBooks allows you to access the Online Banking Centre. To access the Online Banking Centre, choose Banking menu > Online Banking Centre. This is where you see a summary of all your online banking activities. This includes downloaded QuickStatements, all of your online-enabled accounts and a list of online banking payments waiting to be processed. The Online Banking Centre is also the place where you can preview, create (and if necessary recreate) your online banking files.
Choose the financial institution for which you want to process online banking information. View the list of QuickStatements you have downloaded for this account. Highlight and click View to reconcile or match transactions. To remove a Quick statement, click Delete. View a list of payees waiting to be paid via online banking (these can be a mixture of employees and suppliers). Click Go Online to access your Netbanking and download bank statements. Select an onlineenabled account from this financial institution. See page 201 for how to enable an account for online banking. Use the online banking file tools to choose payees from the list and to preview and create ABA files. Click ABA File History to view your online banking history and recreate a previous ABA file.

Importing statements
You can import statements into QuickBooks from .QBO (Web Connect technology) or .QIF files provided by your financial institution. This is possible once you have set up an online banking account with your financial institution. You need to contact your bank to find out if they support downloading of bank statements. There are three stages to importing a statement into QuickBooks. 1. Generate a statement from your financial institutions Web site and save it on to your computers hard drive. Refer to your financial institution for detailed instructions on how to do this. Usually this involves selecting the statement period and file format (.QBO or .QIF), before nominating a location on your hard drive to save the file.

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2.

Import the statement into QuickBooks. For .QBO (Web Connect technology) files, use Windows Explorer to locate the file on your computers hard drive. Double-click the file and follow the QuickBooks wizard to import transactions. You dont need to have QuickBooks open for this process.
QuickBooks displays this wizard when you open a .QBO file.

For .QIF files, from within QuickBooks choose Banking menu > Import Bank Statement. Follow the instructions to complete the process.
Enter the file you wish to convert here. Use the Browse button to find the file on your system. Choose the account in QuickBooks that you want to import the newly converted file. Enter the name and location for the converted file you wish to save. Use the Browse button to find a suitable location.

3.

Reconcile transactions between your electronic statement and QuickBooks account registry. (See Reconciling bank accounts with physical statements on page 204 for more details.)

.QBO versus .QIF files in online banking A QBO file is a QuickBooks version of the OFX file format used in Web Connect technology, the latest technology used around the world to make online banking easier to use and more efficient. Only some financial institutions support this technology. Most only support the older QIF format. Therefore you can choose to download QBO or QIF files. We recommend you opt for QBO format if possible because it allows you to download more information per transaction.
To learn about Online banking Setting up online banking Search the Help index for online banking, about online banking, setting up

Online Banking

20

To learn about Importing bank statements

Search the Help index for online banking, importing bank statements

Reconciling bank accounts with physical statements

You should plan to reconcile your bank statementsfor example, chequing, savings and money market accountsand credit card statements on a regular basis to make sure your records and the banks agree.
Situation You havent reconciled for over a month. You added earlier transactions in QuickBooks. What to do in QuickBooks Reconcile each month you skipped. Balance each month separately, starting with your earliest statement since youve been using QuickBooks, through to your most recent statement. After you add earlier transactions and you want to reconcile past months, you should reconcile month by month only if youve never used the QuickBooks reconcile feature. However, if youve already reconciled one or more months, you should reconcile forward only, that is, reconcile months after your start date. Use the previous months data for reporting only. You need to mark all older transactions as cleared to reconcile future months. Enter all uncleared transactions in your account. Update the Opening Balance transaction to reflect the amount actually in your account when you began using QuickBooks. QuickBooks keeps track of the items youve marked as cleared with an asterisk (*) in the cleared column of the accounts register. This indicates that the items are still pending and reconciliation wasnt complete. When you start reconciling again, youll need to re-enter your ending balance. Youll also need to check off additional payments and deposits.

You are reconciling for the first time. You cancel in the middle of reconciling.

Note: In New Zealand, the Phillipenes and Singapore, when you reconcile you can add any bank service charges, interest earned and finance charges.

To learn about Reconciling a bank account Reconciling a credit card account Adjusting for differences

Search the Help index for reconciling, bank statements reconciling, credit card statements reconciling, adjusting for differences

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Chapter 12

Matching bank deposits and credit card deposits

You can use QuickBooks to help match your customers credit card payments with the lump sum deposit on your bank statement, as well as account for banking fees. To do this, in the Receive Payments or Enter Sales Receipts window, select the Group with other undeposited funds option. In the Make Deposits window, you can display credit card payment views, grouped by credit card type, which lets you see the individual credit card transactions that make up each lump sum deposit. Often, the bank deposit total is less than the payments you received from individual customers due to credit card transaction fees. QuickBooks calculates the difference for you automatically and lets you assign the transaction fee to an expense account.

Paying employees and suppliers using online banking

You can pay your employees and suppliers by getting your bank to transfer money from your business account to individual payees. This is done using an online banking file (ABA format) that you create in QuickBooks and send to your bank. The online banking file contains enough detail for the bank to make the right transfers based on your QuickBooks accounts. There are three stages to paying employees and suppliers: 1. 2. 3. Set up bank accounts and banking preferences. Process transactions. Create an online banking file.

Setting up your employees and suppliers for online banking

To bank online you need to first create QuickBooks accounts that mirror your real-world accounts and enable them for online banking. (See Enable an account for online banking on page 201). Online Banking 20

Once you have enabled your online accounts, you need to set up your employees to be paid using online banking. 1. 2. 3. 4. Choose Employees menu > Employee List. Right click Employees > Edit, then select the Payroll Info tab. Choose Bank (Online) from the Pay Method drop-down list. Click Bank Details to enter all the online banking details for this employee.

If you want to pay suppliers using online banking, you also need to set up your supplier banking details. 1. 2. 3. Choose Suppliers menu > Supplier List. Choose Suppliers > Edit. Select the Bank Details tab.
Complete the full bank account details for each supplier. If this supplier is the Australian Tax Office, ensure you enter the correct EFT Code supplied by the ATO in the Lodgement Reference field. For any other supplier this field may remain blank, or used for any internal purpose that suits your business.

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To learn about Setting up employees or suppliers for bank online payment Paying the ATO online

Search the Help index for online banking, setting up a supplier for; or online banking, setting up an employee for online banking, set up ATO as supplier

Processing online banking transactions

Process online banking transactions as you would normally. Choose the Bank (Online) payment method when processing a payment in QuickBooks. The transaction is automatically listed in the To Bank section of the Online Banking Centre. From there you can preview, create or recreate (if necessary) an online banking file (ABA format).

Note: You can perform multiple pays on the same day to the same employee. For example, if an employee was leaving on a day coinciding with a pay day, the payroll department are able to process subsequent amounts owing - such as from accrued holiday leave - on the same day.
To learn about Paying employees by online banking Paying suppliers by online banking Search the Help index for employees, banking online pay method

Creating an online banking (ABA) file

When paying employees or suppliers directly into their bank accounts, you need to create an online banking (ABA) file. An ABA file is a special file format used to transfer information between your account and an employee or supplier you have set up in QuickBooks. It details the source account and target account for transferring the relevant payments. The bank receives the ABA file and uses the data to action the transfer details itemised in the online banking file. QuickBooks enables you to create the ABA file. 1. 2. 3. 4. 5. Choose Banking menu > Online Banking Centre. Choose your bank from the Financial Institution drop-down list. Go to the To Bank section. Choose the Process On date. (Optional) Enter a meaningful description for this payment in the Description field. The description provides information about payments you are about to include in the ABA file. This description flows through to an employees or suppliers bank statement.

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6.

Select the payees whose payments you want to include in the ABA file. Each payee must have online banking details defined for them under their employee or supplier record. (See Setting up your employees and suppliers for online banking on page 205.) Click Preview ABA File. QuickBooks displays the Preview ABA window and runs the ABA report. Click the available links to drill down and correct any errors in the ABA file. If there are no errors, close the report. Click Create ABA File. QuickBooks displays the standard Windows Save As dialog box with *.ABA entered in the File Name field.

7. 8. 9.

10. Enter a name for the online banking file, e.g. DecemberPay.aba. QuickBooks saves this file to a sub folder in the QuickBooks root directory: [QuickBooks root directory] > Export Files > ABA Files. You can save the file to a different folder if you want. The next time you save an ABA file, however, QuickBooks will take you to the default location: [QuickBooks root directory] > Export Files > ABA Files. 11. Click Save. You can now transfer your online banking file from the saved location to your bank. This is done using a bank supplied desktop application or Web site, depending on your bank. Contact your bank for more details.

Note: The ABA Files directory is not included when you create a backup of your company file. If you change computers and/or restore your QuickBooks company from a backup, you need to manually copy the ABA Files directory from the old QuickBooks root directory to the new root directory.

Recreating an online banking (ABA) file

There may be situations where you need to recreate an ABA file. You may need to recreate the ABA file if it: Was accidentally deleted after it was created, before you could upload it to the bank Includes a payment which should not have been made Excludes a payment that should have been made Contains incorrect bank details or payment amounts for any payee Contains the wrong mix of payees Is rejected by the bank because it contains the wrong APCA number

Note: If the ABA file has been uploaded and accepted by your bank, you should not recreate it. If you do, you risk paying the same payees twice.

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To recreate a specific ABA file, you need to open your ABA file history in the Online Banking Centre. 1. In the Online Banking Centre, click ABA File History. QuickBooks displays the Select ABA File dialog. This dialog shows your ABA file history for the selected financial institution. You now need to locate the ABA file you want to recreate. Choose a date range from the Dated and To drop-down lists. Click the ABA file you want to recreate to highlight it. Click OK to open and display the details of the selected ABA file. Click Edit. QuickBooks asks you to confirm that you have not already sent the ABA file to your bank. Click Yes. QuickBooks returns to the Online Banking Centre. Youll notice that the To Bank section is now called To Bank [History]. From here you can make amendments to the previous ABA file and recreate it. Edit the contents of the ABA file as necessary. For example, you may want to exclude a payee, or change the payment details associated with a payee. Preview and create the new ABA file.

2. 3. 4. 5.

6.

7.

8.

Note: If you removed a payee from a previous ABA file, this means that the payee has yet to be paid. This payees details are transferred to the To Bank section of the Online Banking Centre ready to be processed. If you want to remove the payee from To Bank, you need to void the associated transaction in QuickBooks.
To learn about ABA file history Recreating an ABA file Search the Help index for online banking, ABA file history ABA, recreating

Online Banking

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Further tools to help your business

13
212 212 215 217 218 220

What are the Tools to help your business? Accept credit card payments using Payment Services Recover outstanding debt using Debt Recovery Secure your data with Online Backup Pay many superannuation funds at once using SuperLink Accept payments using Customer Payment Solution

QuickBooks users in Australia and New Zealand can now take advantage of a range of add-on, online services that extend the functionality of your software. Refer and recover bad debt, accept credit card payments directly into QuickBooks, perform an online backup, make meeting your Super Choice obligations an easy process or accept payments using Customer Payment Solution. This chapter tells you how.

What are the Tools to help your business?

The Tools that can help your business use the Internet as a business tool to simplify and improve your business processes. They are integrated, third-party services that work with QuickBooks to extend the functionality of your software. They can help make your business more efficient and more profitable in two important ways: by extending the range of options that you offer your customers, and by reducing the time and effort you need to spend on day-to-day business accounting. These tools include: Payment Services Debt Recovery Online Backup Service SuperLink Customer Payment Solution

Once you have subscribed to a service and configured your QuickBooks preferences, the operation between the third-party service and your QuickBooks software is seamless.

Note: You must have an active Internet connection to use any of the following tools. See Connecting QuickBooks to the Internet on page 36 for details.

Accept credit card payments using Payment Services

Through Payment Services, you can accept VISA, MasterCard, Bankcard, American Express or Diners Club card details either over the phone or in person. You can then process the transactions directly into your QuickBooks software. The transaction is approved or declined within seconds. You can then reconcile your payments and refunds using the daily transaction report. The credit card transaction is settled overnight and deposited into your designated merchant bank account. All you require to begin processing credit card transactions directly within QuickBooks is: A Payment Services subscription An Internet connection An Internet merchant account with an acquiring institution

Note: If you do not have an Internet merchant account, please contact the Merchant Solutions team at your bank.
Once your subscription has been activated, you can process sales and credits from within QuickBooks.

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Subscribe to Payment Services

Payment Services is a 12-month subscription-based service. When you subscribe to the service, you automatically receive an initial package of transactions. Once you have reached the transaction limit, you are able to purchase additional transaction bundles.

To register for payment services from within QuickBooks:

1. 2. Choose Customers menu > Customer Services > Accept Credit Cards. Read the information on the Payment Services information page. This page explains the service, answers common questions and allows you to subscribe immediately online.

Setting up payment services preferences

Once you have subscribed to Payment Services, you need to set up your payment services account details in your QuickBooks preferences. 1. 2. 3. 4. 5. Choose Edit menu > Preferences. Select Online, then click the Company Preferences tab. Select the check box to enable online payment transactions in QuickBooks. Enter the Quicken Customer ID you used to subscribe to Payment Services. Enter your password. Passwords are case sensitive. Ensure you enter the password exactly as it was entered during the subscription process. Re-enter your password for confirmation.

6.

QuickBooks must close all open windows to register the change in preferences. Click OK when prompted to do so.

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Processing a credit card payment or refund

Processing credit card payments or refunds is simply an extension of the process you already follow to enter customer payments or adjustment notes into QuickBooks.

Note: Ensure you are connected to the Internet before processing a credit card payment or refund. To process a credit card payment:
1. 2. Choose Customers menu > Receive Payments or Enter Sales Receipts. Complete the details of the payment. Choose the type of credit card being used from the Pmt. Method drop-down list. If the credit cards type is not available as a payment type, you can choose <Add New> to add it to the list. Select the Process credit card payment when saving check box. This option is located in the lower-right corner of your payment window.

3.

Note: If you have not specified your subscriber details in company preferences, selecting this check box automatically displays new subscriber information for Payment Services.
4. 5. Click Save & Close (or Save & New to enter more than one payment). QuickBooks displays the Enter Credit Card Details dialog. Enter the customers credit card details. If the customers details are already in your Customer list, these fields populate automatically. You can change any details you require before processing. Click Send. QuickBooks verifies the transaction. If successful, QuickBooks displays a Transaction Approved message. If unsuccessful, QuickBooks displays the appropriate error message. Click Cancel at any time to cancel the transaction and return to the payments window.

6.

7.

To process a credit card refund: Note: To issue a credit card refund, you must have recorded a credit card payment against the selected customer.
1. 2. 3. Choose Customers menu > Create Adjustment Note. Complete the details of the adjustment. Select the Process credit card credit when saving check box.

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4.

Click Save & Close (or Save & New to enter more than one refund). QuickBooks displays the Select Credit Card Payment dialog with a list of credit card payments made by this customer. Click the customer payment you wish to refund. Click OK. QuickBooks verifies the refund. If successful, QuickBooks displays a Transaction Approved message. If unsuccessful, QuickBooks displays the appropriate error message. Click Cancel at any time to cancel the transaction and return to the Create Adjustment Note window.
Type in the Help index... Payment Services credit cards, company preferences credit cards, process payments

5. 6.

7.

To learn about... Payment Services preferences processing credit card payments

Recover outstanding debt using Debt Recovery

Quicken has collaborated with a third party to provide your business with a complete debt recovery solution. Debt Recovery provides a cost effective, automated and quality assured debt recovery solution for your business. In addition to referring outstanding debt, QuickBooks also notifies the debt recovery provider of partial and complete payments received against outstanding invoices, as well as any bad debts you choose to write off against outstanding amounts currently being pursued by the debt recovery agency. Debt Recovery is a subscription based service provided through a third party. You are entitled to use the service as many times as you like during the subscription period.

Subscribe to Debt Recovery

Subscribing to Debt Recovery is a manual process between you and the third party debt recovery agency. Subscriptions and contracts are set up externally to QuickBooks between you and the debt recovery agency and are based on a 12 or 24 month basis (your choice). All financial transactions take place privately between you and the third party agency.

To register for Debt Recovery from within QuickBooks:

1. 2. Choose Customers menu > Customer Services > Refer Outstanding Debt. Follow the instructions to complete the subscription request online and send directly to the debt recovery agency.

The agency will contact you to complete the subscription and to provide you with your account details.

Further tools to help your business

21

Setting up Debt Recovery preferences

Once you have subscribed to Debt Recovery, you need to set up your debt recovery account details in your QuickBooks preferences. 1. 2. 3. Choose Edit menu > Preferences. Select Finance Charge, then select the Company Preferences tab. Enter the client code as provided by the debt recovery agency. (The client code field is case sensitive. Enter the code exactly as provided by the agency.) Choose 12 or 24 months from the Subscription period drop-down list. In the Subscription date field, enter the start date for your subscription (as provided by the agency).

4. 5.

QuickBooks must close all open windows to register the change in preferences. 6. Click OK when prompted to do so. QuickBooks informs you automatically when your subscription has expired.

Email notice of outstanding debt

Once you have subscribed to the service and set up your account details, you can now email a notice of outstanding debt directly from QuickBooks to your debt recovery agency. This is also known as referring a debt. 1. 2. 3. 4. Find and open the unpaid invoice. Click Refer Debt in the toolbar. QuickBooks displays the Debt History Notes dialog. Complete the details. Click Send to deliver the debt referral. QuickBooks generates the email with the debt recovery agencys details already filled in. The information about the debt is attached to an email as a Portable Document Format (PDF) attachment. Click Send.

5.

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Note: Do not alter any of the details in the email once it is generated. If you want to send any additional details about the debt, you must write these in the Debt History Notes dialog.

Receiving partial payments on a referred debt

If you receive partial payment of an outstanding referred debt, or you write off a referred debt in QuickBooks, you need to inform the debt recovery agency of the change in the status of the referred debt. 1. 2. 3. 4. Complete the payment details as per usual in the Receive Payments window. Select the Select here if you are receiving a payment (part or full) against a debt that is currently being pursued by a debt recovery agency check box. Click Save & Close. Follow the onscreen instructions to generate an advice for the debt recovery agency to update them on the status of this referred debt.
Type in the Help Index... Debt Recovery preferences, finance

To learn about... Debt Recovery Debt recovery preferences

Secure your data with Online Backup

Online Backup is the no-fuss, reliable solution for backing up your QuickBooks company file. No more worrying about storage or the integrity of your backup media (CD-ROMs, Zip drives, disks). Theft and/or damage of your data will never be an issue as your backup is always offsite and secure. You can schedule backups or perform them manually, and you can access and restore your company file at any time.

Subscribe to Online Backup

Before you can use Online Backup, you need to sign up for it. You can use the 30-day free trial period to test the service, after which a scale of charges will apply if you want to continue to use the service.

To subscribe to Online Backup from within QuickBooks:

1. 2. 3. Choose File menu > Online Backup Manager and click OK. Click New Account. Read the Terms and Conditions and Privacy statements thoroughly, and then if you want to proceed, click I Agree.

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4.

Add your personal details, a user name and password (ensure you complete all compulsory fields), then click OK. QuickBooks creates your new account.

Note: If you are in multi-user mode, you must switch to single-user mode to back up your company file.

Pay many superannuation funds at once using SuperLink

Sick of the red tape involved with complying with your Super Choice obligations? SuperLink takes the headache out of Super Choice. No more writing cheques, no more printing reports and posting them off to multiple super funds. SuperLink offers an end-to-end, online solution for managing Super Choice. SuperLink takes the information and funds straight from your QuickBooks file and transmits it electronically to all of the required super funds. All this for a low subscription fee. Once you are subscribed to SuperLink, you can remit superannuation payments to many super funds easily whenever you process your payroll.

Subscribe to SuperLink
Subscriptions and contracts for SuperLink are set up externally to QuickBooks. All financial transactions take place privately between you and SuperLink.

To set up a SuperLink account from within QuickBooks:

1. 2. Choose Company menu > Company Navigator. In the Company Solutions area, click the link for more information about SuperLink.

Remit SuperLink payments from QuickBooks

SuperLink liabilities are calculated and compiled for processing as an extension of your regular payroll processing. To remit SuperLink payments you need to: Subscribe to SuperLink and set up the appropriate accounts. Ensure that payroll (including superannuation) details are complete for all applicable employees. For information on setting up your employees, see Setting up payroll: an overview on page 146. Connect to the Internet.

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The SuperLink process is triggered from the Pay Employee or Preview Payment windows, depending on whether or not you choose to preview payments before creating them. 1. Click Create. QuickBooks displays the message: Do you want to process your Superannuation liabilities now using SuperLink? Click Yes. QuickBooks processes your payroll and displays the SuperLink Report.

2.

Note: If you click No, or if you do not receive the SuperLink prompt, QuickBooks processes your payroll as normal without processing payments for SuperLink. To process your SuperLink payments manuallyusing details from the most recent payroll runchoose Employees menu > SuperLink Export and continue with these instructions.
3. Check the details in the SuperLink Report. The SuperLink Report is specifically designed to be display-only. You can print the report and export the data to SuperLink. You cannot drill down to associated transactions from this report, nor can you modify what is displayed. Click Export to SuperLink. QuickBooks displays the Save File As dialog. Name and save the SuperLink file. Save the file in the default SuperLink directory created by QuickBooks, or browse to a directory of your choice.

4. 5.

Note: When naming the file, ensure that the file retains the .csv file extension.
6. Launch the SuperLink Web site and follow the upload instructions.

Tip: If you do not have appropriate permissions on the PC, network or directory you attempt to upload the SuperLink file from, SuperLink may be unable to access the file. Similarly, if SuperLink detects that your network has been configured to reject Active-X controls it will be unable to upload your SuperLink file. In these situations, ask your network/ system administrator for assistance.
To learn about... SuperLink Processing payroll Superannuation and Super Choice Type in the Help index... SuperLink payroll, paying employees Superannuation

Further tools to help your business

21

Accept payments using Customer Payment

Customer Payment allows you to receive payments faster through any of the Customer Payment options, which include over the counter, IVR, online, direct debit and through locked bags. You can subscribe to Customer Payment through QuickBooks 2007/08. Once approved for an account through the approval process, you can create invoices with the Customer Payment options printed at the bottom. Your customers can then make payments to you and you can record them in QuickBooks.

Subscribe to Customer Payment Solution

You must subscribe to Customer Payment Solution before you can use this functionality. 1. 2. 3. Ensure your PC is connected to the internet. In QuickBooks, choose Customers menu > Customer Services > Get Paid. Faster. Sooner. Read the information on the Customer Payment information page. This page explains the service, answers common questions and allows you to subscribe immediately. Enter your details and click Submit. A Biller Prefix will be sent to you.

4.

Customer Payment Preferences

The Biller Prefix is provided to you when you sign up and are approved for Customer Payment. You must enter your Biller Prefix before you can use the Payment Reference field. 1. 2. 3. 4. 5. Select Edit menu > Preferences. Select the Sales & Customers icon. Click the Company Preferences tab. Enter the Biller Prefix into the field provided. Click OK.

Note: The Bill Prefix should be 5 characters long.

To learn about... online payment Type in the Help index... online payment

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QuickBooks Premier industry-specific editions

What are QuickBooks Premier industry-specific editions? Industry-specific navigators Industry-specific menus

14

222 223 223

This chapter gives you more information about QuickBooks Premier industry-specific editions* and describes some of the special features youll find in each edition. *Industry-specific editions of QuickBooks Premier are not available in the Philippines.

What are QuickBooks Premier industry-specific editions?

Industry-specific editions are tailored editions of QuickBooks Premier that offer specialised tools and features unique to a select industry. QuickBooks Premier 2007/08 offers the following industry-specific editions: Accountant edition Contractor edition Non-profit edition Manufacturing & Wholesale edition Property Management edition Professional Services edition Retail edition

What can you expect from an industry-specific edition?

Quicken recognises that different industries have special (and specific) accounting needs. QuickBooks offers the following special features in the industry-specific editions of our QuickBooks Premier software.

Accountant edition
QuickBooks Premier Accountant edition includes the ability to make, adjust, and reverse journal entries, plus keep track of your companys fixed assets. The Accountant edition also includes reports designed to give you greater insight into where youre making your money.

Contractor edition
QuickBooks Premier Contractor edition includes the ability to see which jobs are profitable, get airtight estimates, set up and track your holdbacks, and set up multiple labour rates for your various employees, jobs, and customers.

Non-profit edition
QuickBooks Premier Non-profit edition includes tracking features for funds (by individual program), memberships, donations, grants and pledges. In addition, you can create a monthly budget based on your actual QuickBooks data and use customised reports to see how youre doing.

Manufacturing & Wholesale edition

QuickBooks Premier Manufacturing & Wholesale edition includes the ability to track mileage and shipping expenses, handle volume discounts, issue work orders to your manufacturing plant and document your damaged goods.

Property Management edition

QuickBooks Premier Property Management edition includes the ability to set up and track your buildings and properties, set up and track tenants and manage your building maintenance costs. 222 Chapter 1

Professional Services edition

QuickBooks Premier Professional Services edition includes the ability to track job costs, write proposals, set up and track retainers, and track and manage labour rates.

Retail edition
QuickBooks Premier Retail edition enables you to track your stock using different units of measure, assemble components from your stock to build finished goods, track sales by item, sales representative or customer and determine which stock items are your top sellers.

Industry-specific navigators
Your software also includes an industry-specific navigator to help you perform tasks and find information specific to your industry. See the following example from our Contractor edition.

Industry-specific menus
The industry-specific menu, exclusive to each QuickBooks Premier industry-specific edition, lists the most commonly-used tasks that you need to accomplish in each working day. This example is from our Accountants edition. Think of the industry-specific menu as a short-cut to those activities you do most often. Using it will save you time.

QuickBooks Premier industry-specific editions

223

More information
If you need help with an industry-specific edition feature, or would like to know more about the features offered with each edition, see the QuickBooks Premier Industry-Specific Editions user guide. This user guide is available on your QuickBooks CD-ROM in Portable Document Format (PDF). The QuickBooks online Help contains detailed instructions on how to use the features in your QuickBooks industry-specific edition. See Getting information about your company on page 78 for more information.

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Chapter 1

Whats New in QuickBooks 2007/08

Whats new in QuickBooks QuickBooks user feedback

15
226 227

Each year that Quicken releases QuickBooks, we like to add new features and make improvements to some of our existing features to enhance the experience of QuickBooks supporting your business. This year weve added a host of new and improved features in many different areas of the software.

Whats new in QuickBooks

Since our last release, weve spoken to many QuickBooks customers about how we can make QuickBooks better. QuickBooks 2007/08 has several new and improved features that have come directly from you, our most valued customers. Please take a moment to review these features, as they may change how you work with QuickBooks.
New feature or enhancement Customise pay slips Using the Template list you can customise your own pay slip to meet your companys specifications and design. Display accrued leave such as Holiday and Personal, Superannuation information and many more. Payroll Tax Tracking Types The following payroll tax tracking types have been added to assist you with eligible termination payments: Post June 1983 Untaxed Element (Low Rate Threshold) LRT applicable to employees aged 55 years or over Calculation is reflected in ETP summary and magnetic media Improvements to make QuickBooks WorkChoice friendly, include ability to: enter negative components in a pay display salary hourly rate on pay slip add Leave Accrued information on pay slip add a new time in lieu payroll item Customer Statements filter option. You can choose to email or print statements to: Customer with and without email address Customers with email address Customers without email address Improved Reconciliation Date The Statement Date is now blank so you must enter a date. Enhanced Feedback feature You can now submit feedback to Quicken using the Help menu > Suggest New Feaures option. Accounting Plus Pro Premier

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New feature or enhancement New Customer Payment Solution Once you have been approved for Customer Payment and received your Biller Prefix, your customers can pay their bills in person, over the phone or by using the Internet. Time in lieu payroll item A new payroll item has been added to the payroll item list so you can use it to process extra time worked and time in lieu taken by your employees. Quantity By Employee Report Lists transactions processed under the Other type of payroll item. The reports which are generated show a total, per employee, of the Quantity processed. Use this report to view employees time in lieu quantities or commissions and another Other type of payroll item.

Accounting

Plus

Pro

Premier

QuickBooks user feedback

The new features delivered with each version of QuickBooks are often based on requests and suggestions from our users. In QuickBooks 2007/08 we have streamlined the process for you to request new features or make comments on existing functionality. With the new feedback system, when you make a suggestion it is stored directly in the QuickBooks database. From this database, suggestions are read by Quicken staff when considering which features to add or enhance for the following year. To give product feedback or to suggest an enhancement: 1. 2. 3. 4. Ensure you are connected to the Internet. Choose Help menu > Suggest New Features. QuickBooks launches the feedback Web site. Enter your Customer ID and Pin. Follow the instructions on the Web site. Please be detailed in your descriptions. The more information you can tell us about the feature/s you are commenting on, the more useful your suggestion will be.

The collection of personal information about you and your system is used for product enhancement purposes only and is subject to the Quicken Privacy Policy. A Quicken representative may use the details provided to contact you about your comments.

Do not use the feedback form for technical support requests. See Contacting Quicken on page 233 to contact Quicken for technical support issues.

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Contacting Quicken

Technical support options and Quicken services Talking to a technical support representative Contacting Quicken

16
230 231 233

If you cant solve a problem youre experiencing with QuickBooks, you can get help by telephone, fax or email. Quicken also provides a Web site with a database of support articles (Knowledge Browser) plus contacts for Quicken accredited professional partners.

Technical support options and Quicken services

Fast forward to... Fee Based Services Quickens Web site Quicken Advantage Quicken accredited professional partners Be prepared when you call Solving problems on your own If the program hangs or locks up on you Refer to page... on this page on this page on this page on this page 231 231 232

Fee based services

Quicken offers a number of support plans to meet your individual needs. Timed Call Support: A one-off support call that is charged by the minute. Maybe you dont have twenty four hours to solve your problem but need to speak with one of our specialists right away? For instant help during business hours, ring our telephone support service for the advice you need. Data Recovery: If your QuickBooks data file becomes damaged, we can provide data recovery service, which is available for a fee. Password removal: If you forget your Administrator password, we can remove your password so you can access your important data, a service that is also available for a fee.

Quicken Advantage
Quicken Advantage membership entitles you to free weekday technical and installation phone support, product upgrades and special offers. Terms and conditions apply. For more information, visit www.quicken.com.au.

Quickens Web site

Quickens Web site is the official site for QuickBooks users. You can get answers to many QuickBooks questions, important updates, and access to help through it. If you have an Internet Connection, you can access the Quicken Web site directly from the Help menu in QuickBooks.

Quicken accredited professional partners

Developing a strong, knowledgeable network of professionals is an important part of our commitment to delivering exceptional support to our QuickBooks customers. Whatever your individual needs, Quicken has an expert to help. For details on what services are available, see Quicken accredited professional partners on page 4. The Quicken accredited professional partners referral service is free. The professional you select will provide you with information about their fees. 20 Chapter 1

If you are an accountant, bookkeeper, or computer consultant, consider becoming a member of this unique community. To find a Quicken accredited professional partner, or to become one yourself, visit the Quicken Web site for details. For details on contacting Quicken Australia turn to page 233.

Talking to a technical support representative

Be prepared when you call
If you need to call for assistance, you will get an answer quicker if you: Make sure you have registered your copy of QuickBooks and have your registration number and Quicken customer ID number ready. (Its a good idea to have written this down in the front of this user guide following registration.) To display your registration number, choose Help menu > About QuickBooks. Are at your computer with QuickBooks installed. Try to remember the windows you opened and the tasks you did before encountering the problem. Know the exact wording of any message that appeared on the screen. Have your company file set up for multiple users who have access to different areas of QuickBooks, youll need to have access to most of the software. You might also want to switch to single-user mode. Have a pencil and paper handy to take notes. Have the following information ready when you call: Model of computer and amount of memory (RAM) and hard disk space Accessory manufacturer, type and model (for example, monitor or printer) Operating system version Network configuration and software version

Solving problems on your own

Note: We recommend you back up your data before you start solving your problems. For more information, see Backing up your company data on page 84.

Guidelines for solving typical problems

Use the following examples as a guide to solve the problems you have.

Try the procedure again

Start at the beginning. Examine windows where you filled in fields to be sure you are asking the program for what you want. For example, if invoices you just entered are not showing on your Profit and Loss statement, you should ask questions such as: Does the date of the report include those invoices? Do the invoices appear if you change the report from cash to accrual basis? Contacting Quicken 21

Does this problem occur with only invoices for one particular customer? Have you changed any filters on the report? (Try to create a new report from scratch to see if the problem is solved.)

Try a related procedure

For example, if you have a printing problem: Ensure the printer is working by trying to print something else. If you have trouble printing cheques, try printing a report. If you cant print one of the sales forms, try printing a similar form. If you cant print from QuickBooks, try printing from another program such as MS Notepad. If nothing prints from Notepad, you know the problem is related to the printer, not the software. Check the printer connections, printer driver, print queue and so forth.

Think about what has been changed

If something used to work but no longer does, think about what changed. Have you changed or added other programs on your computer? Have you added a new printer? Have you moved the QuickBooks company file to a new location? Have you changed a setting in the Preferences window?

If the program hangs or locks up on you

There are a number of reasons why your system freezes while using QuickBooks. Try restarting your computer. If restarting doesnt help, go through the following list of questions and take any related action: Does your computer system or network meet the minimum requirements necessary for QuickBooks? (See Installing and running QuickBooks on page 4.) Are you making the best use of available system resources by shutting down other programs that are running? (Check for programs that may be running in the background without your knowledge.) Do you have enough hard disk space available? (This is common for those working in a multi-user, peer-to-peer network situation.) Do you have any conflicts with sound or video drivers?

Note: If you encounter system freezes while using QuickBooks, you may want to call for technical support.

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Contacting Quicken
Australia
Product Activation Products can be registered online 24 hours a day or by telephone. You can reactivate your program through this service Reactivation is a service that attracts a small per-minute charge. (Charges include GST and only apply once you are connected to a representative.) For pre-sale, product specific information, to purchase an upgrade, for order inquiries or information on Quicken Advantage and so on. If you cant activate your product using onscreen instructions after choosing File menu > Activate QuickBooks, call: 1300 650 061 1902 266 522

Product Reactivation

Customer Service and Quicken Sales

Call: 1300 QUICKEN (1300 784 253) Email: customerservice@quicken.com.au Fax: 02 9577 5557 Visit: http://www.quicken.com.au and click on the business finance tab Call: 1902 223 101

General Product Information Technical Support

For general product information and FAQs.

To speak immediately to a technical support representative, call Quicken ExpressSupport. This is a service that attracts a small per-minute charge. (Charges include GST and only commence once you are connected to a technical support representative). Advantage customers receive free technical support for the duration of their membership. Search the Quicken Knowledge Browser for answers to common questions. Quicken Training provides classroom training to assist you in getting the most from your software. Or you can visit a Quicken accredited trainer near you. The Quicken Web site provides a list of all the Quicken accredited trainers.

Refer to your Advantage Welcome Pack for information on free Technical Support http://quicken.com.au/Support/FAQs.aspx Call: 1300 655 975 Visit: http://www.quicken.com.au and click on the Services tab. Call 1300 QUICKEN (1300 784 253) Visit: http://www.quicken.com.au click on the Support and Training tab and select Data Services.

Data Recovery

To request data recovery for a damaged QuickBooks file. For more information on data recovery online.

Contacting Quicken

2

To prevent having to request data recovery use Online Backup. (See page 213 for details.) Password Retrieval To request a forgotten password be removed from your file.

Visit: http://www.quicken.com.au click on the Support and Training tab and select Data Services. Call: 1300 QUICKEN (1300 784 253) Visit: http://www.quicken.com.au click on the Support and Training tab and select Data Services. Call: 1300 301 166 Fax; 1300 131 972 Visit: http://www.quicken.com.au/services/stationery. Update your details online at http://www. quicken.com.au/services/updatedetails.aspx. Quicken Australia Locked Bag 15 PO Broadway NSW 2007

Reckon Stationery

Quicken offers a range of stationery that works with your Quicken Software. Cheques, invoices, pay slips and more helps deliver the most from your accounting software!

Update your details Postal Address

Keep your details current so we can keep you up to date on product developments and important software changes. Quicken postal address to send software orders as well as any other written correspondence.

New Zealand
Product Registration Customer Service Call: 0800 933 606 or from abroad, +64 9 489 9440 Call: 0800 447 292 Email: presales@quicken.co.nz Visit: www.quicken.co.nz Call: 0800 933 666 (attracts small charge per incident) 0900 33 609 (attracts a small per-minute charge) Charges are higher from public and mobile phones. Visit: www.quicken.co.nz

Technical Support

2

Chapter 1

Philippines
Product Registration Call: +65 6254 2322 Fax: +65 6254 2922 Call: +63 (2) 533-1529, or +63 (2) 533-4095 Fax: +65 6254 2922 Email: customerservice@quicken-asia.com Visit: www.quicken-asia.com Call: +63 (2) 533-1529, or +63 (2) 533-4095 Fax: +65 6254 2922 Email: customerservice@quicken-asia.com Visit: www.quicken-asia.com

Customer Service

Technical Support (Available 9am to 5pm Monday to Friday, charged per incident)

Singapore
Product Registration Call: +65 6254 2322 Fax: +65 6254 2922 Call: +63 (2) 533-1529, or +63 (2) 533-4095 Fax: +65 6254 2922 Email: customerservice@quicken-asia.com Visit: www.quicken-asia.com Call: +63 (2) 533-1529, or +63 (2) 533-4095 Fax: +65 6254 2922 Email: customerservice@quicken-asia.com Visit: www.quicken-asia.com

Customer Service

Technical Support (Available 9am to 5pm Monday to Friday, charged per incident)

Contacting Quicken

2

2

Chapter 1

Glossary of Terms
APCA number A number issued by the Australian Payments Clearing Association (APCA). You need it if you wish to export a payroll file for processing when banking online. The APCA number identifies your business or company to the bank. It is included in the online banking (ABA) file that your business sends to the bank. ABA file See online banking file. accounts payable The record of outstanding bills a business must pay. Called A/P for short. accounts receivable The record of money owed to a business, that is, outstanding invoices or statement charges for which the business has not received payment. Accounts receivable is called A/R for short. (Even though the word accounts is plural, QuickBooks uses a single account on the chart of accounts to track all the money that different people owe you.) accrual basis A method of bookkeeping in which you regard income or expenses as occurring at the time you ship a product, render a service, or receive a purchase rather than at the time you pay or receive cash. With this method, the first time you enter the transaction into your records and the moment when you pay or receive cash may be two separate events. adjustment note A document notifying a customer that you have reduced his or her balance (for example, when something is returned). ageing The tracking of due dates and amounts of outstanding invoices (and of your unpaid bills). QuickBooks has preset accounts receivable and payable ageing reports. asset Assets include what you have and what people owe you. Examples include: cash on hand money in your current account money you are owed furniture vehicles

total assets = total liabilities + equity audit trail A report of all changes to transactions, including who made the change, when it occurred, and what the change was. Glossary 27

balance sheet A report that summarises the financial position of a business. A balance sheet shows the value of your companys assets, liabilities, and equity as of a particular day. It is called a balance sheet because the value of the assets is always exactly equal to the combined value of the liabilities and equity. billable Time worked or purchases made for a particular customer or job, that you want to charge back to that customer or job in QuickBooks. After you put the time or purchase on a sales form, QuickBooks marks it non-billable, so you wont charge twice for the same thing. cash basis A method of bookkeeping in which you regard income or expenses as occurring at the time you actually receive a payment or pay a bill. chart of accounts A complete list of the accounts you set up for your business. You use accounts to track income from different sources, expenses for different causes, and your assets and liabilities. class A way to categorise parts of your business (other than a customer or job) for which you need to track both income and expenses. Cost of Goods Sold (COGS) The cost of goods and materials held in stock and then sold. customer Any person, business, or group that buys or pays for the services or products that your business or organisation sells. earnings basis The total amount of employee wages or earnings on which payroll withholding is calculated. Employee Tax Number This is a unique number given to each employee for reference when dealing with the Tax Office. In Australia, this is called the Tax File Number (TFN). EMPDUPE file An EMPDUPE file is an electronic data file that contains payment summary information for each employee. This file acts as a summary of all payment summaries created for a tax period. You can use this to send to the tax office. EMU Economic and Monetary Union: Formally adopted by the Treaty on European Union of 1992, EMU designates the zone of countries within the EU which share the same monetary policy and currency (the Euro).

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Glossary

equity The net worth of a company, equal to the total assets minus the total liabilities. All the equity belongs to the owners. equity = assets - liabilities Free on Board (FOB) Terms between you and your customer setting transportation costs and the point at which the customer assumes ownership of the item. general journal The ledger which records all transactions for your company chronologically. In the general journal, each transaction shows an amount in the Debit column equal to the amount in the Credit column and the accounts between which the funds are being moved. gross An amount before adjustments are made to it, such as the amount of a payroll payment before NI and income tax are withheld. HECS HECS is a scheme used by the Australian Government that allows a tertiary student to defer payment of university fees until the student can afford it. The HECS debt, as it is often called, is paid back as part of a persons tax on their salary. It becomes necessary once the student, now working, earns above a set salary determined by the Australian Taxation Office. Different tax rate for payment apply for different salary brackets. item A product or service that you sell to customers or buy from suppliers. Some special types of items also allow you to perform calculations or enter payments or charges on sales forms. Once items are set up on your Item list, they appear automatically in drop-down menus on sales forms. job A project done for a particular customer. journal A chronological record of all transactions for one account. The easiest way to access the journal for an account is to use its register. liability Any money your company owes to other people. Examples include: unpaid bills loans or credit card accounts money you collect on behalf of the government, such as GST

limited company A business organisation that is owned by its stockholders.

Glossary

2

multicurrency A feature that, when turned on, gives you the ability to deal in foreign currencies. multi-user mode More than one person can access your company file at the same time. net An amount after adjustments are made to it, such as the amount of a payroll payment after NI and income tax are withheld. online banking file This is a special file format used to store an account holders data to a bank. Data can be wages, salaries, or supplier payments. It details the source account and target account for transferring relevant payments. The bank receives an online banking file in the format of an ABA file and uses the data to make the necessary transactions from the company or business bank account to the payees nominated bank account. partnership An unincorporated company owned by two or more persons. payment summary A payment summary, as the name suggests, is a summary of an employees pay for a particular pay period from a specific employer. It includes amounts withheld for tax purposes. It is similar to a Group Certificate, which was issued under the old tax system in Australia. An employee in some circumstances may have two or more payment summaries issued at the end of a tax period if he or she worked for two or more employers during that tax period. postdate To give a transaction a date in the future, which is when it will affect your accounts. profit and loss statement This report shows how your cash position changed over a period of time. It shows your income, expenses, and net profit or loss. progress invoice One of a series of invoices all based on the same estimate for the same job. Use progress invoices when you want to invoice for a job in phasesthat is, by milestone or by percentage complete. QuickBooks keeps track of the amount you have invoiced and the amount not yet invoiced. QuickReport A report that shows transactions you are likely to want to see for the thing you have selected. The particular report depends not only on what you select but also where you select it. reconcile an account To confirm that the transactions you have recorded in QuickBooks for an account agree with the statement you receive from the bank for that same account.

20

Glossary

register A chronological list of transactions for an account. Other accounting systems refer to these lists as journals. reimbursed expenses Expenses you have incurred on behalf of a customer, and for which you have requested reimbursement. retained earnings Profits from an earlier time period that have not been distributed to the owners, tracked in an equity account. At the beginning of a new financial year, QuickBooks automatically transfers net income into your Retained Earnings account. single-user mode Only one person can access your company file at any time. sole proprietorship An unincorporated company owned by one person. start date The date on which QuickBooks will have complete information about your company finances. The start date can be in the past if you enter historical records; it can be the current date; or it can be some day in the future if you prefer to enter information gradually. stock Items you sell, resell, or hold to resell. The most common kinds of stock are merchandise or stock in trade; raw materials; work in process; finished products; and supplies that physically become a part of the item intended for sale. superannuation Superannuation (commonly called super) is a long-term investment plan to save money towards retirement. Superannuation providers pool superannuation contributions from members and direct the funds into a wide range of investments. In the event of retirement, disablement, or death of a member, the superannuation provider pays benefits either in the form of regular periodic payments, a lump sum payment, or a combination of both. terms The conditions for payment stated on an invoice. The terms specify the number of days until the due date. transaction Any event that affects your company finances. Examples include invoices written, bills paid, deposits made, and loans received.

Glossary

21

22

Glossary

Licence Agreement
THIS IS AN IMPORTANT DOCUMENT. PLEASE READ THIS CAREFULLY.
This is a contract between Reckon Limited (ACN 003 348 730) (Reckon) and you. By using the QuickBooks software supplied with this document, and the related user guides and materials (together with the Software), you agree to be bound by the terms of this Licence. This Licence covers copies of the Software provided for evaluation or trial purposes, subscription versions and non-subscription or full versions of the Software. Some Licence provisions may not be applicable to you, depending on the particular version of the Software you have purchased or if you are using the Software for evaluation purposes. The defined terms and the rules of interpretation in this Licence are set out in clause 11. Important: There are a number of technical features within the Software that may affect your ability to continue to use the Software. These are outlined in more detail in the terms of the Licence, but in summary: you are purchasing the right to use the Software, not to own it; if you have been provided with a Trial Version, you may only use the Software on a temporary basis to evaluate the Softwares functionality and suitability for your requirements; the Software contains registration and activation processes to guard against illegal copying; to continue using the Software, those processes require you to verify your compliance with the terms under which you are licensed to use the software (for example: the number of computers on which the software is installed) and to permit continued reactivation of the Software from time to time. This involves, in all versions, periodically verifying your licence details, and in the subscription version, renewing your subscription when it falls due. Reckon may also verify subscription customers during a subscription period and not only at renewal. You will also need to reactivate your Software if you want to reinstall it (for example, if you upgrade your computer or if you have a hard drive failure, and you may incur a technical support cost for this); when you purchase the Software or during the course of your subscription you will be provided with an installation key code. Please keep the installation key code in a safe place. You may need it when you first install or reinstall (if permitted) the Software and to reactivate the Software. Please note if you lose your installation key code that it will not be replaced by Reckon and you will not be able to install or reactivate the Software; you also need a licence key to reactivate your Software. In addition, with some older versions of the Software, you will not be able to re-install or reactivate the Software if you do not have your installation key code - see details below on Reckons sunset policy; there will be no charge to activate the Software initially or to reactivate your Software when you verify your licence details or renew a subscription, Reckon may charge you a fee for technical support if it needs to reissue a licence key provided also that the version of the Software you are using has not been sunsetted as explained below. Reckon may also charge a fee if you need to reactivate the Software in other circumstances (for example, if you need to reinstall the Software if you upgrade your computer or due to a hard drive failure); if you do not verify your licence details or renew your subscription (as applicable) within the required period, the Software may continue to operate but with impaired functionality or you may not be able to access the Software at all (including printing out or viewing any of your data or records); and Reckon has a sunset policy which means that technical support is not available for some older versions of the Software. This includes the ability to install or re-install that Software for any reason if you have lost your installation key code for those old versions. If you wish to continue using the Software in those circumstances, you will need to purchase a new copy of the current version of that Software. 1. LICENCE a) Evaluation licence: If Reckon has provided a Trial Version of the Software to you, your rights to use the Trial Version are solely as set out in clause 10. b) Licence to use: Reckon grants you a personal, non-exclusive, non-transferable, limited licence to use the Software on the terms of this Licence for the period determined in accordance with clause 8. c) No transfer of copyright: The Software is licensed not sold, despite any reference to purchase or sale in this Licence or in any invoice or purchase order for the supply of the Software. Reckon reserves all rights not expressly granted to you. Intuit Inc. is the owner of copyright in the Software and retains ownership of the copyright and all other intellectual property rights in the Software and is protected by copyright law and international copyright treaty. 2. YOUR PERMITTED USE OF THE SOFTWARE a) Single use licence: If you have purchased a single user licence, you: (i) may install the Software once, on one computer only. However, if you wish to reinstall the Software (for example, if you need to install the Software on a replacement computer), then clause 3 will apply; and ii) must ensure that the Software is used by one person only at any one time. b) Additional licences: If: (i) more than one person is to use the Software at the same time; or (ii) the Software is to be installed on more than one computer

License Agreement

2

then you must, for example in the Pro version, purchase another full version or a subscription version of that software, for use by up to a maximum of five users. c) Premier Version If you have purchased a full version of QuickBooks Premier, this Licence entitles you to load the Software on up to three computers (for use by a single processing unit only on each computer) for use by up to three individuals simultaneously. If you wish to install the Software on more than three computers you must purchase additional licenses that will permit up to five users to simultaneously access a data file. If Reckon releases the next release of QuickBooks Premier while you are a member of the Advantage programme subject to its terms and conditions, you will be permitted to make a total of five installations. If you have purchased a subscription version of QuickBooks Premier, this licence entitles you to load the Software on up to five computers (for use by a single processing unit only on each computer) for use by up to five individuals simultaneously. If you wish to install the Software on more than five computers you must purchase another full version or a subscription version of that software but for simultaneous access you will need to upgrade to an appropriate version that permits more than five users to simultaneously access a data file. d) Enterprise Solutions Version (i) If you have purchased the QuickBooks Enterprise Solutions version of the Software, this Licence entitles you to load the Software on up to ten computers (for use by a single processing unit only on each computer) for use by up to ten individuals simultaneously. You may not load the Software onto any further computers. (ii) If you have purchased the QuickBooks Enterprise Solutions Accountants version of the Software, this Licence entitles you to load the Software onto one computer (for use by a single processing unit). You may not load the Software onto any further computers. e) General restrictions: You must not: (i) use or rely upon the Software for any purpose or in any manner for which the Software is not warranted; (ii) copy, reproduce, translate, adapt, vary, merge or modify or create any derivative work based on the Software; (iii) reverse engineer, decompile, disassemble, reconfigure or otherwise attempt to discover the source code of the Software; or (iv) sell, market, network, transfer, lease, license, sub-license, rent, lend or otherwise dispose of or distribute the Software or use the Software to provide a bureau service. f) Licence verification: Upon written request from Reckon, including by e-mail, you agree to provide Reckon with a signed certificate: (i) verifying that the Software is being used fully in accordance with this Licence, including user and machine limitations, and (ii) listing locations, types and serial numbers of equipment on which the Software is run. You agree to allow Reckon to use and disclose any personal details provided to Reckon in connection with this Licence in accordance with Reckons then current privacy policy displayed on Reckons website. g) Audit rights: Reckon may also audit the number of copies of the Software in use or possession by you, the equipment on which the Software is installed or used and the number of users using the Software. Audits will be conducted in your normal business hours, or upon reasonable prior written notice, at Reckons expense. If the audit reveals underpaid or unpaid fees due to Reckon, Reckon may require you to uninstall any unauthorised versions of the Software and may deny you access to the Software or you will be invoiced for them based on Reckons then current price list, and if these exceed 5% of the license fees you have already paid, you will also be invoiced for the cost of the audit. 3. PRODUCT ACTIVATION AND VERIFICATION a) Initial registration and verifying licence details: This Software may contain technology that protects Reckon against illegal copying. As a consequence, you may be required to: (i) register your details during the initial installation (including your name, contact details and details of the hardware on which the Software will be installed (if this is not done automatically by the Software); (ii) if you have a full version, have the Software reactivated periodically thereafter by verifying your licence details to confirm you are using the Software in accordance with these Licence terms; (iii) if you have a subscription version, have the Software reactivated (on payment of Reckons renewal fee and verification of your licence details) if you wish to renew the subscription; (iv) have the Software reactivated by Reckon if you wish to re-install the Software (for example, if you would like to install the Software on a new computer or if you have a hard drive failure and need to reload your Software); and (v) provide to Reckon the details of your installation key code and product key for the Software as part of the reactivation process. You agree to activate or reactivate the Software within a reasonable time or within such time as the Software prompts you to do so. b) Key codes: Each copy of the Software is provided with a unique installation key code (which may appear on the packaging or the cover of the media on which the Software is contained). You should keep the installation key code safe. As per clause 3(a)(v), you will be required to provide your installation key code to Reckon when you reactivate your Software. c) Manner of verification: You must verify your licence details in the manner required by Reckon from time to time (which may include email or on-line registration via the Internet). The Software may prompt you as to the required manner of verification.

2

License Agreement

d) Charges for reactivation: Reckon will not charge you to activate the Software initially or to reactivate your Software when you verify your licence details or renew a subscription, unless you have lost your installation or licence key code. You need both your installation code and your licence key to be able to reactivate the Software. Reckon may charge you a fee for technical support to reissue a licence key. Reckon may also charge a fee for technical support if you need to reactivate the Software in other circumstances (for example, if you need to reinstall the Software because you have a new computer or need to reload the Software due to a hard drive failure). For the current fees go to http://www.quicken.com.au. If you have lost your installation key code it will not be replaced by Reckon and you will not be able to install or reactivate the Software. e) Consequences of non-renewal and failure to verify details: This Software is provided to you on the understanding and acknowledgment that it may contain technology which deactivates and disables the Software if a subscription is not renewed or in the case of a full licence version, you have not verified your licence details when periodically prompted to do so by Reckon or by the Software. If the Software is not reactivated within the required period, the Software may continue to operate but with impaired functionality or you may not be able to access the Software at all (including printing out or viewing any of your data or records). f) Statutory declaration: In certain circumstances, before permitting a re-activation, Reckon may require you to provide it with a Statutory Declaration stating the reasons for re-activation in a form required by Reckon. g) Older versions: Reckon has a sunset policy (covered in more detail in clause 4(a)) which means that technical support is not available for certain older versions of the Software. If technical support is not available for your version, you will not be able to reactivate or reinstall your Software if you do not have your installation key code. Reckon will not be obliged to provide you with a replacement key code and in those circumstances you will need to purchase a new version or Upgrade in order to continue using the Software. Please go to http://www.quicken.com.au to see the sunset policy. 4. TECHNICAL SUPPORT a) Period when technical support is available: Reckon will provide technical support for the Software, during the following periods: (i) in the case of a subscription version of the Software, during the period for which you have paid the relevant subscription fees (unless further releases of the Software in question are discontinued); and (ii) in the case of a full version of the Software, there is a sunset period during which technical support may not be available for that version. The sunset period for a version will commence on the earlier of: (A) 2 years after the date on which you first installed the version on our computer; or (B) the date Reckon releases the second successive Upgrade to that version. For further explanation of Reckons sunset policy please go to http://www.quicken.com.au. b) What is included as part of technical support: Reckon will provide technical support in accordance with its then current technical support policy, which may include: (i) as contemplated by clause 3, the technical support required to reactivate the Software or to issue a replacement registration key code (for example, when you verify your licence details, renew a subscription or if you need to reinstall the Software); (ii) provision of telephone help desk support services; (iii) access to technical information about the software contained on Reckons website; and (iv) the ability for you to download Updates, but it does not include provision of Upgrades of the Software. For further explanation of Reckons technical support policy please go to http://www.quicken.com.au. c) Fees: Clause 3(d) sets out the circumstances when you will (and when you will not) be required to pay charges for the technical support to reactivate your Software (including when you wish to reinstall the Software) or for Reckon to issue a replacement registration key code. For all other technical support, Reckon may charge you a fee in accordance with its then current technical support policy. 5. ONLINE SERVICES a) Interaction with Online Services: The Software may contain access to, or features that interface with, online services (Online Services). Examples of Online Services that may be applicable to the Software are an online share price download facility, a statement download facility, bill and other payment services, a superannuation choice facility, online backup facility, and a debt recovery facility which are provided at an additional charge on a subscription basis measured for one year from the date of registration. b) Terms for Online Services: Certain Online Services are not available for all versions of the Software. For example, in the case of bank statement download services, not all banks provide services that connect to the Software. Online Services are only available for 12-month periods for subscription versions and 24-month periods for full versions. In the case of a full version, access to Online Services in the second 12-month period may be subject to payment of the applicable charges. In order to renew access to Online Services at the end of the 24-month period in the case of a full version, you will be required to have purchased or upgraded to the latest version of the Software. In the case of a subscription version, you must have renewed your subscription. Internet access is required for all Online Services. Charges may apply for the use of Online Services (in addition to the cost of Internet access levied by your ISP). Where Online Services are available, separate terms and conditions with the provider of the Online Services may apply. You should check with the relevant third party provider as to the terms

License Agreement

2

and conditions of use. Access to Online Services may be withdrawn by Reckon at any time. Reckon will not be liable for the withdrawal of access to any Online Services. Where access is to be withdrawn, Reckon may choose to notify you in advance provided that you have supplied Reckon with a valid and up to date email address. 6. LIMITED WARRANTY a) Software provided on an as is basis: Subject to clause 7(b), Reckon provides the Software to you on an as is basis and without any representations by Reckon or any of its authorised distributors regarding the use, performance or results of the use, of the Software. b) Defects in media: Reckon warrants that the media on which the Software is recorded is free from defects in manufacture for a period of 90 days from the date of delivery. During this period, if you return the Software to your place of purchase, Reckon will replace any defective media on which the Software was supplied and any Software on that media, free of charge, unless you caused damage to the media due to poor handling. c) No guarantee that error free or uninterrupted use: While Reckon has endeavoured to make sure that the Software works substantially as per the specifications published by Reckon from time to time, Reckon does not guarantee that the Software will work on all computer hardware platforms or configurations and makes no warranty that the Software will be error free, that its use will be uninterrupted or be fit for your purpose. d) Internet access, telecommunications networks, firewalls and security: Reckon does not guarantee connections to its online activation server as these may be dependent upon third party networks and security measures over which Reckon has no control. 7. LIABILITY a) Certain rights cannot be excluded: The Trade Practices Act, 1974 and other laws may imply certain conditions and warranties into this Licence and give you certain rights and remedies that cannot be excluded or modified. This clause 7, and the limited warranties provided in clause 6, do not exclude or modify any of those rights if to do so would contravene that law or make any part of this Licence void. b) Exclusion of warranties: To the full extent permitted by law, Reckon excludes all conditions, warranties and rights that may be implied into this Licence. If conditions, warranties or other rights for your benefit are implied in this Licence or otherwise conferred by law and it is not lawful to exclude, restrict or modify them, then those conditions, warranties and other rights will (but only to the extent required by law) apply to this Licence. c) Limitation of implied terms: Reckons (and its distributors) liability for breach of any implied conditions or warranties that cannot be excluded is limited, to the extent permitted by law and at the option of Reckon, to replacing or re-supplying the goods or services or their equivalent again or the payment of the cost of having the goods or services or their equivalent replaced or supplied again. d) General exclusion and limitation: Other than as set out in clauses 7(b) and 7(c), and to the full extent permitted by law: (i) Reckon (and its authorised distributors) will not be liable to you or any other person for any direct or indirect loss, damages, liability, costs or expenses suffered by you or any other person relating to the performance or nonperformance of the Software or any breach of this Licence or the supply of the Software or in connection with, but not limited to, the Online Services, use of tax tables or provision of technical support (whether by telephone or remote access or other means); and (ii) Reckons maximum liability for damages arising in connection with this Licence or the supply of the Software is limited to the amount paid by you for the Software. e) Your liability to Reckon: You agree that Reckon (and its authorised distributors) will not be liable, other than as expressly set out in this Licence, and that you will indemnify Reckon (and its authorised distributors) from any liability, loss, damage, costs or expenses which you may suffer or incur as a result of your use of the Software (including any claims made against you by third parties). f) Use of Software is not provision of professional advice: The information contained in this Software may contain features designed to assist you in complying with the requirements of the relevant legislation, eg: imposing the Goods and Services Tax (the GST) or the equivalent in the users home country. These features in the Software have been developed with regard to the GST laws and regulations and guidelines provided by the Australian Taxation Office (the GST Laws) as at the date of development of the Software (or the users home country tax office) (the GST Laws). The GST Laws are subject to change and the Software may not be correct at the date upon which you make use of the Software. While the features will assist in GST calculations, Reckon does not warrant that the Australian Taxation Office or the users home country tax office will agree with such calculations. The help contained in this Software is not a substitute for professional advice. The GST, Tax and other Laws are extremely complex in nature and legal and accounting advice should be obtained before taking any action in reliance on this Software. The software is also not financial product advice. If the Software contains features to assist with superannuation guarantee requirements, then Reckon does not warrant that the relevant reports will be compliant with legal requirements, as these change from time to time. In addition any tax tables (which are included with certain versions of the Software, eg: QuickBooks and Payroll) that might be supplied with this Software are also changed from time to time and you should consult with your professional adviser before relying on the tax tables. Reckon does not warrant that the tax tables are up to date at your date of purchase. In providing you with the tax tables, Reckon is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, you should seek the service of a competent professional.

2

License Agreement

g) Reckon has no responsibility for recommendations: Reckon, its employees, agents, contractors and the authors disclaim any and all liability and responsibility to any person, whether a user of this Software or not, in respect of anything (including, without limitation, any error in or omission from this Software) and of the consequences of any actions taken or omitted to be taken in reliance, whether wholly or partially, upon all or any part of the content, recommendations or help contained in this Software. h) Corruption of Data and on-line access: To the full extent permitted by law, Reckon and its authorised distributors disclaim all liability for any corruption of data, inability to access data, loss of data, breach of privacy, or downtime as a result of or arising from the use of any online link available between the Software and another server including without limitation in connection with any Online Services. i) On-line services: Reckon makes no warranty or representation in connection with the Online Services, the responsibility for which rests with the relevant provider of such Online Services. 8. TERM AND TERMINATION OF LICENCE a) Licence Term: Unless this Licence is terminated earlier in accordance with its terms, your right to use the Software in accordance with this Licence continues: (i) in the case of a subscription version of the Software, for an initial period of 12 months from the date of registration of the Software. This Licence will automatically renew for a further 12 month period upon the payment of Reckons annual subscription fee. If the annual subscription fee is not paid on or before the termination of the current 12 month period, this Licence will automatically terminate; and (ii) in the full version of the Software, indefinitely, however: (A) you may be required to periodically verify your licence details and have the Software reactivated as per clause 3 in order to keep using the Software; and (B) if you need to reinstall the Software, you will need a copy of your original CD (or other media on which the Software was provided) and the installation key code. If you do not have the CD, you will need to purchase or upgrade to a new full version and pay for the postage associated with sending the CD to you. Clauses 3(d) and 3(g) outline when Reckon may charge you a fee for the provision of a replacement key code and, more importantly, when a replacement key code will not be provided by Reckon due to the operation of Reckons sunset policy. b) Termination by Reckon for breach: Reckon may terminate this Licence if you are in breach of its terms or as otherwise set out in this Licence. c) Survival: Clauses 2, 4, 6, 7 and this clause 8 will survive the termination of this Licence. Termination of this Licence will not prejudice any right which Reckon may have, or but for the termination may have had, against you for a breach of this Licence. d) Things you must do on termination: Upon the termination of this Licence, you or your representative must promptly uninstall the Software from your computer, destroy the CD, User Guide and related materials and any copies of them in your possession or control or return or dispose of them in the manner directed by Reckon. Upon written request from Reckon you agree to provide a Statutory Declaration to Reckon that you have complied with your obligations under this clause 8(d). 9. SUBSCRIPTION TERMS If you have purchased a subscription version of the Software, this additional clause 9 will apply. a) Entitlement to Upgrades and Updates: During the period for which you have paid subscription fees you will receive, included in the cost of the subscription, all Upgrades and/or Updates of the Software, via Internet download. b) No extension of Licence term: Your right and entitlement to use the Software, as enhanced by any Upgrades and/ or Updates, concludes at the end of the term of the Licence (subject to payment of an annual subscription fee) and is not linked to the dates of release, registration or provision by Reckon of any Upgrades and/or Updates. c) This Licence prevails: If you have bought this Software as an Upgrade to an earlier version of the Software, this Licence shall supersede any previous licence agreement. d) Not all Upgrades included: Your subscription to the Software and any Upgrades and/or Updates under this Licence does not grant you the right to receive special versions of the Software created for certain customers or market segments, even though they may contain similar features or functions. Versions of the Software which may from time to time be offered in retail or other channels in different configurations as special promotions are not included as part of the subscription. e) No obligation on Reckon to upgrade: Upgrades and/or Updates will be developed and released by Reckon in its sole discretion, and Reckon does not warrant or represent that it will develop or release any Upgrades and/or Updates during the term of the subscription period or Licence. Furthermore, Reckon does not warrant that the Upgrades and/or Updates will be provided to you or made available within any specified time period following the commercial release of such Upgrades and/or Updates. f) When payment is due: If applicable to the Software licensed to you, you will be required to pay the monthly subscription fee in advance on the first business day of each month. You authorise Reckon to direct debit your monthly subscription fee from the bank account nominated by you. g) Deactivation at end of subscription period: As per clause 3, the subscription version of the Software is provided to you on the understanding and acknowledgment that it may contain technology which deactivates and disables the software if your subscription is not renewed or you are found to be in

License Agreement

27

breach of this license agreement If the Software is not renewed by the end of the required period, the Software may continue to operate but with impaired functionality or you may not be able to access the Software at all (including printing out or viewing any of your data or records). h) You need a full version if you dont renew: If you elect not to renew your subscription, the Software does not allow you to upgrade to a non-subscription version of the Software by way of the purchase of an Upgrade pack. In such circumstances, you are only able to upgrade to a later non-subscription version of the Software by purchasing a full (non-upgrade) version of the Software. i) Early termination: If you wish to terminate your subscription early, you must do so by giving Reckon no less than one calendar month notice to that effect. Depending on the type of software you have subscribed to and the type of subscription you are signed up for, you may be required to pay a cancellation fee. See http://www.quicken.com.au for a schedule of fees. Reckon will direct debit your account, and you agree to pay, the applicable cancellation fee.

10. TRIAL LICENCE

If you have been provided with a Trial Version of the Software, this clause 10 sets out the terms that will apply to your use of the Trial Version. a) Licence: Your licence to use the Trial Version: (i) permits you to evaluate the Softwares functionality and suitability for your requirements; (ii) is for the number of users set out in the material accompanying your copy of the Trial Version; (iii) is subject to the general restrictions in clause 2(e) and the limited warranty in clause 6(a); and (iv) is for up to 6 uses of the Software, upon the sixth attempt you will be required to activate the Software, and then for ninety days after activation. (Evaluation Period). b) Duration: You acknowledge that your licence to use the Trial Version will only apply for the Evaluation Period. At the end of the Evaluation Period: (i) you must not and will not be able to continue to access the Trial Version, including any data that you have entered into the Trial Version; and (ii) if you wish to use the Software you must purchase a full version or subscription version of the Software. c) Entitlements: You: (i) are not entitled to Upgrades or Updates (or any other software other than the Trial Version); and (ii) may be required to pay for any technical support that you may require in relation to the Trial Version in accordance with Reckons then current charges. d) Liability: You acknowledge that [subject to clause 7(b) and 7(c), and to the full extent permitted by law, Reckon excludes all liability to you for any loss, damage, liability, costs or expenses suffered by you relating to the performance or non-performance of the Trial Version or any breach of this clause 10. 11. GENERAL a) Some defined terms: In this Licence: Trial Version means Software that has been provided to you on a temporary basis in order to carry out a trial of that Software to determine whether you wish to use the Software on an ongoing basis. Upgrade means a new version of the Software which contains additional functionality or other enhancements. Reckon will determine whether a new version constitutes an Upgrade or an Update. Update means a new version of the Software which contains minor enhancements. b) Applicable law: This Licence is governed by the laws of the State of New South Wales, Australia. c) Entire Agreement: This Licence contains the entire agreement between Reckon and you in relation to its subject matter and supersedes any prior agreements and understandings, whether written or oral. d) Waiver: Any failure to enforce any rights under this Licence by Reckon is not to be taken as a waiver of those rights. e) Variation: To the extent permitted by law, Reckon may vary any of the terms and conditions of this Licence upon providing you with thirty (30) days notice in writing and a copy of the replacement terms and conditions. In the case of subscription users no new terms will come into force until the commencement of your renewed subscription period. Reckon will display any new terms and conditions on Reckons web site and you should check the website regularly. f) Headings: Clause headings are for ease of reference only and do not affect the meaning of this Licence. Quicken and QuickBooks are registered trademarks of Intuit Inc. Copyright 1985-2008 Intuit Inc, 2007-2008 Reckon Ltd

28

License Agreement

Index
A
ABA file, 207 Account numbers, 29-30 Accountant edition, 222 Review, 68 Accounts to track equity details, 34 Accrual basis accounting, 14 Activate QuickBooks, 7 Activity statements, 112, 116, 120, 127 Add new accounts, 29 Adding items, 54 Adjustments to the account balances, 32 AIF file, 74 Apply a discount, 61 Applying tax codes to items, 108, 118 Audit Company File exception report, 98 Company File wizard, 97 Trail, 96

B
Backing up 3.5 floppy disk, 87 tape, 87 your company data, 84 CD-R, CD-RW or hard disk, 85 Balance sheet accounts, 15 Bank deposits, 205

2

Index

C
Cash basis accounting, 14 Changing an Internet connection, 37 employee information, 162 payroll item information, 161 the opening balance for a customer or job, 43 Charging customers for time worked, 194 Chart of accounts, 14 Choosing a method to track time, 184 Classes, 20, 22 Client-server networks, 9 COGS, 17 Commission, 157 Common payroll items, 154 Configuring the activity statement, 120 Connect QuickBooks to the Internet, 36 Connecting to the Internet, 36-37 Contacting Quicken, 233 Contractor edition, 222 Converting data from CashBook, 70 Create foreign customers and suppliers, 133 Creating purchase order for a foreign supplier, 142 tax report, 112 invoices and bills, 118 invoices for foreign customers, 140 payroll items, 151 tax codes, 109 tax reports, 111 Credit card deposits, 205 payment, 214 refund, 214 Index 20

Customer Manager, 67 types, 22 Customising pay slips, 164 payroll accounts, 149

D
Data Converter, 70-71 Default payroll items, 150 Deleting items, 63 Depositing foreign money, 141

E
EasyStep Interview, 26 Edit an opening balance, 29 Editing item information, 63 Emailing pay slips and payment summaries, 175-176 EMPDUPE, 177 Employee defaults, 156 Employer Summary, 169 Employer-paid benefit, 155 Enable an account for online banking, 200-201 Enabling GST tracking, 117 Enter time data manually, 191 Entering a group of items, 60 bank account information, 31 historical payroll information, 31 Equity accounts, 35 Exchange rates, 130, 137

21

Index

Exporting data for your accountant, 68 lists from QuickBooks Pro or Premier for the Timer, 187 Timer information to QuickBooks, 190 to other software, 66 ExpressSupport, 3

F
Foreign customers, 133, 140-141 suppliers, 142-143

G
Generating a BAS, 125 an IAS, 126 GST Configuration tab, 121 reporting, 116

H
HECS, 239 Help, 3

I
Importing from other software, 66 statements, 202 Timer data, 190 In-product Help, 3 Income and expense accounts, 17 Industry-specific editions, 222 Interact ACT!, 66 Index 22

Items what you sell, 44 that calculate, 50

J
Job, 42-43, 153

K
Knowledge Browser, 3

L
Layout Designer, 83 Limited company, 24 Lodging your activity statement, 127

M
Making adjustments to your Tax Payable account, 110 Managing Timer data files, 189 Manufacturing & Wholesale edition, 222 Microsoft Excel, 67 Outlook, 67 Word, 67 Multi-user environment, 8 Multicurrency preference, 131 MYOB to QuickBooks Data Converter, 70

N
Non-profit edition, 222

2

Index

O
Online Backup, 217 Banking Centre, 202 Opening Bal Equity, 34

P
Partnership, 24 Passwords, 93 Pay slips, 164, 172, 176 PAYG Instalment tab, 122 tax, 172 Withholding tab, 122 Paying a tax liability, 113 bills from foreign suppliers, 143 employees and suppliers using online banking, 205 non-employees for time worked, 193 your employees, 168 Payment summaries, 175-176 Payroll cheques, 172 Expenses Account, 149 items associated with liabilities, 154 items for expenses, 152 Liabilities Account, 149 liability, 173 Peer-to-peer networks, 9 Printing payroll cheques and pay slips, 172 problems, 99 Processing online banking transactions, 207 Professional Services edition, 222-223 Index 2

Property Management edition, 222

Q
QBA file, 74 QBB file, 74 QBW file, 74 QBX file, 74 QuickBooks Administrator, 94 backup, 84 help, 3 Timer, 182, 186 QuickStatements, 202 QuickZoom Report, 120

R
Realised Gains and Losses, 138-139 Rearrange the order of accounts, 29 Receiving a tax refund, 114 payments from foreign customers, 141 Reconciling bank accounts, 204 Recording activities in the Timer, 188 Reinstall my printer driver, 99 Reporting in different units of measure, 53 period, 105 Reports to check your setup, 36 Restoring your backup file, 89 Retail edition, 223 Retained Earnings, 34

2

Index

S
Searching for your backup file, 89 Service items for non-employee time data, 194 Set up foreign accounts, 132 prices for items, 134 Setting up and using tax codes, 105 different units of measure, 52 items, 47 multicurrency, 130 online banking, 200, 205 the Administrator and users, 94 to use time tracking with payroll, 186 your employees and suppliers for online banking, 205 Showing partial payments received, 61 Sole proprietorship, 24 Stopwatch, 182, 191 Subaccount, 29 Subitems, 50 Summarise your payroll transactions, 157

T
Tax Detail report, 112 Liability report, 112 Payable account, 105, 110 Summary report, 112 Terminating employees, 162 Timer data, 189-190 Track my type of detail, 18 time based on activities, 183 time for subcontractors, 182 Index 2

Tracking expenses by class, 153 customer and job, 153 service item, 153 sales and purchases, 118 your tax liability, 106 Transferring foreign funds, 144 lists, 66 Types of accounts, 15 files, 74 QuickBooks items, 48

U
Units of measure, 51-53 Unrealised Gains and Losses, 138 Updates from the Internet, 38 Updating from a CD-ROM, 38 Upgrade a company file, 10 Using items, 59 currency calculator, 137 Stopwatch, 191 Timer, 188

V
Viewing and editing recorded activities, 188

W
Working with multiple users, 92

27

Index

Y
Year-to-date summaries for each employee, 158 information affects your accounts, 159 summaries of liability payments, 160

Index

28