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THE OFFICIAL INTUIT GUIDE

QuickBooks

2014

the missi ! m" u"#


The book that should have been in the box-

o REILLY

Bo

ie Bi"$o#e

QuickBooks 2014
The !ook that should have !een in the !o01

Bonnie Biafore

Bei2ing 3 4am!ridge 3 5arnham 3 67ln 3 8e!astopol 3 Tok%o

QuickBooks 2014: The Missing Manual


by Bonnie Biafore 4op%right 9 2014 Bonnie Biafore' :ll rights reserved' ,rinted in the ;nited 8tates of :merica' ,u!lished !% <=>eill% Media? Inc'? 100 @ravenstein Aigh#a% Borth? 8e!astopol? 4: C 4D2' <=>eill% !ooks ma% !e purchased for educational? !usiness? or sales promotional use' <nline edi* tions are also availa!le for most titles "http:((m%'safari!ooksonline'com$' 5or more information? contact our corporate(institutional sales department: "E00$ CCE*CC&E or corporateForeill%'com' <cto!er 201&: 5irst .dition'

Revision History for the First E ition: 201&*10*11 5irst release 8ee http:((oreill%'com(catalog(errata'cspGis!nH0I&IC2002D4DE for release details'

The Missing Manual is a registered trademark of <=>eill% Media? Inc' The Missing Manual logo? and +The !ook that should have !een in the !o0/ are trademarks of <=>eill% Media? Inc' Man% of the designations used !% manufacturers and sellers to distinguish their products are claimed as trademarks' Jhere those designations appear in this !ook? and <=>eill% Media is a#are of a trademark claim? the designations are capitaliKed' Jhile ever% precaution has !een taken in the preparation of this !ook? the pu!lisher assumes no responsi!ilit% for errors or omissions? or for damages resulting from the use of the information contained in it' I8BB*1&: CDE*1*44C*&41D *I

4ontents
The Missing !re its ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' "i #ntro uction ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' "v Jhat=s Be# in QuickBooks 2014 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' 0v Jhen QuickBooks Ma% Bot Be the :ns#er ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 0vii 4hoosing the >ight .dition ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 0viii :ccounting Basics: The Important 8tuff ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00i :!out This Book ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00iii :!out the <utline ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00iv The Ler% Basics' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00v :!outMTheseM:rro#s ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00vi :!out the <nline >esources' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00vi 8afari1 Books <nline ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 00viii

,art <ne:
4A:,T.> 1:

$etting %& QuickBooks


!reating a !o'&any File ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' (
<pening QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ''& Before Nou 4reate a 4ompan% 5ile ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4 4reating a 4ompan% 5ile ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ''D 4onverting from :nother ,rogram to QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 20 <pening an .0isting 4ompan% 5ile ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2& Modif%ing 4ompan% Info' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2I

4A:,T.> 2:

)etting *roun in QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2+
Menus and the Icon Bars ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &0 8#itching among <pen Jindo#s ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &2 The Aome ,age' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &4 The 4ompan% 8napshot ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '

iii

42 4A:,T.> &:

$etting %& a !hart of *ccounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4(
:c)uiring a 4hart of :ccounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 44 ,lanning the 4hart of :ccounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4I 4reating :ccounts and 8u!accounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1 Jorking #ith :ccounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' E

iv

COntents

4A:,T.> 4:

$etting %& !usto'ers, -o.s, an /en ors ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 0(
4reating 4ustomers in QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I4 4reating Oo!s in QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D 8etting ;p Lendors ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' DE Jorking #ith 4ustomers? Oo!s? and Lendors ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' E1 Managing Peads ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'C0

4A:,T.> :

$etting %& #te's ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' +(
Jhat Items Qo ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' C& Jhen Nou Qon=t Beed Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' C 8hould Nou Track Inventor% #ith ItemsG ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' C ,lanning Nour Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'CE 4reating Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 101 8ervice Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 104 ,roduct Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 10D <ther T%pes of Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 10E Jorking #ith Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '11&

4A:,T.> I:

1ata Entry $hortcuts for 2ists ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 113
:dding and .diting Multiple >ecords ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 11E Importing 4ustomer? Lendor? and Item Information ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 12I

4A:,T.> D:

$etting %& 4ther QuickBooks 2ists ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1((
4ategoriKing #ith 4lasses ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1&4 ,rice Pevels ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1&I 4ustomer and Lendor ,rofile Pists ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1&C 5i0ed :sset Items ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 14I Managing Pists ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 14D

,art t#o:
4A:,T.> E:

Bookkee&ing
Tracking Ti'e an Mileage ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 153
8etting ;p Time Tracking ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1 E .ntering Time in QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1I1 >unning Time >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1IE Tracking Mileage ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1IE @enerating Mileage >eports' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1D4

4A:,T.> C:

6aying for E"&enses ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 135
Jhen to ,a% .0penses ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1D .ntering Bills ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1DI >ecording a Qeposit to a Lendor ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1E1 Aandling >eim!ursa!le .0penses ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1E& ,a%ing Nour Bills ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1E

Jriting 4hecks Jithout .ntering Bills ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1C& ,roducing 4hecks' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1CD ,a%ing ;sing <ther ,a%ment Methods' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '20& >ecording Lendor >efunds and 4redits' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '20D >unning .0pense*>elated >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 20E 4A:,T.> 10:

#nvoicing ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 211
4hoosing the >ight T%pe of 5orm ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 212 8ales 5orms and :ccounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 214 4reating Invoices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 21I 4reating Batch Invoices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '2&I Qeposits? Qo#n ,a%ments? and >etainers ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 240 Invoicing for Billa!le Time and 4osts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '24 Invoicing for Backordered ,roducts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2 2 .stimating Oo!s ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '2 E 4reating ,rogress Invoices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2I4 Aandling 4ustomer >efunds and 4redits' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '2IE Modif%ing Invoices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2D

4A:,T.> 11:

6ro ucing $tate'ents ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 233
@enerating 8tatements ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2DD

4A:,T.> 12:

Transaction Ti'esavers ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 27+
,rinting 5orms' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2C0 .mailing 5orms ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '2CC MemoriKing Transactions ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&0& 5inding Transactions ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &10

4A:,T.> 1&:

Managing *ccounts Receiva.le ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' (1+
>eceiva!les :ging ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&20 >eceiving ,a%ments for Invoiced Income ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&2I :ppl%ing 4redits to Invoices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &&2 Qiscounting for .arl% ,a%ment ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&&4 4orrecting Misapplied 4ustomer ,a%ments ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&&E :ppl%ing 5inance 4harges ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &40 4ash 8ales ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&42 Making Qeposits ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &4C

4A:,T.> 14:

Bank *ccounts an !re it !ar s ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' (55
.ntering Transactions in an :ccount >egister ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '& I Aandling Bounced 4hecks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &I0 Transferring 5unds ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&IE >econciling :ccounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &D1 Managing Poans ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&E&

COntents

4A:,T.> 1 :

1oing 6ayroll ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' (+(
@etting 8tarted #ith QuickBooks ,a%roll ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &C4 Intuit ,a%roll 8ervices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &CD 8igning ;p for an Intuit ,a%roll 8ervice ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '&CC 8etting ;p ,a%roll in QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 400 >unning ,a%roll ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 414 ,a%ing ,a%roll Pia!ilities ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 421 ,reparing ,a%roll Ta0 5orms ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '424 >unning ,a%roll >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '42I >ecording Transactions from a ,a%roll 8ervice ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 42D ,a%ing Nourself ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '42E

4A:,T.> 1I:

Making -ournal Entries' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4((
Balancing Qe!it and 4redit :mounts ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4&4 8ome >easons to ;se Oournal .ntries ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4& 4reating Oournal .ntries ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4&I 4hecking Oournal .ntries ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 440 >eclassifications and 4orrections ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 441 >ecording Qepreciation #ith Oournal .ntries ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 442 >ecording <#ners= 4ontri!utions ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 44

4A:,T.> 1D:

6erfor'ing 8ear9En Tasks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 44+
4hecking for ,ro!lems ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 44C Lie#ing Nour Trial Balance ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4 2 @enerating 5inancial >eports' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4 & @enerating Ta0 >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4ID 8haring a 4ompan% 5ile #ith Nour :ccountant ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4D0 10CCs ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4DI 4losing the Books for the Near ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4E0

,art three:
4A:,T.> 1E:

Managing 8our Business


:ee&ing Track of Financial Tasks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 475
Tracking To*Qos ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4EI :dding Botes' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4EC >eminders ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4C1 Nour 5inancial 4alendar' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4C4

4A:,T.> 1C:

Managing QuickBooks Files ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4+3
8#itching Bet#een Multi* and 8ingle*;ser Mode ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '4CD Backing ;p 5iles ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4CC >estoring Backups ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 0E 8ending 4ompan% 5iles to <thers' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 11

vi

COntents

Lerif%ing Nour QuickBooks Qata ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 14 4ondensing Qata ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 1I 4leaning ;p after Qeleting 5iles ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 21 4A:,T.> 20:

Managing #nventory ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 52(
5ollo#ing the Inventor% Mone% Trail' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 24 8etting ;p Inventor% Items' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2 ,urchasing Inventor% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 2C 8elling Inventor% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &E >unning Inventor% >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' &C Jorking #ith the Inventor% 4enter' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 44 ,erforming a ,h%sical Inventor% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4I :d2usting Inventor% in QuickBooks' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 4E

4A:,T.> 21:

;orking <ith $ales Ta" ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 55(
8etting ;p 8ales Ta0 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' & ,roducing >eports of the 8ales Ta0 Nou <#e' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I0 ,a%ing 8ales Ta0 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I1

4A:,T.> 22:

Bu geting an 6lanning ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 50(
T%pes of Budgets ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I4 Ja%s to Build Budgets ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I4 4reating Budgets in QuickBooks' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I 4reating 4ustomer:Oo! or 4lass Budgets ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' IE 5illing in Budget Lalues' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D0 4reating and 4op%ing Budgets #ith .0cel ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D& >unning Budget >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' DE

4A:,T.> 2&:

Tracking Finances <ith Re&orts an )ra&hs ' ' ' ' ' ' ' ' ' ' ' ' ' 57(
5inding the >ight >eports' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' E4 >unning >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' EE ,rinting and 8aving >eports' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' C1 4ustomiKing >eports ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' C MemoriKing >eports' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I0I 8#apping >eports Bet#een 4ompan% 5iles ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I0C

,art 5our:
4A:,T.> 24:

QuickBooks 6o<er
Banking 4nline <ith QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 01(
8etting ;p Nour :ccounts for <nline 8ervices ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I14 .0changing Qata #ith Nour Bank ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I1D Banking <nline ;sing .0press Mode ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I22 Banking <nline ;sing 4lassic Mode ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I&1

COntents

vii

4A:,T.> 2 :

!onfiguring 6references to Fit 8our !o'&any ' ' ' ' ' ' ' ' ' ' ' 0(3
,references: The Basics' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I&E :ccounting' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I&C Bills ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I42 4alendar ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I4& 4hecking' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I44 Qesktop Lie# ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I4D 5inance 4harge ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' I 0 @eneral ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I 2 Integrated :pplications' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I I Items - Inventor% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I D Oo!s - .stimates ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I D Multiple 4urrencies' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'I C ,a%ments ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' II0 ,a%roll - .mplo%ees' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' II1 >eminders ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'II2 >eports and @raphs ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'II& 8ales - 4ustomers ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'II 8ales Ta0' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'IID 8earch ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' IIE 8end 5orms ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' IIE 8ervice 4onnection ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ID1 8pelling ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'ID2 Ta0: 10CC ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'ID2 Time - .0penses' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'ID2

4A:,T.> 2I:

#ntegrating QuickBooks <ith 4ther 6rogra's ' ' ' ' ' ' ' ' ' ' ' 035
Mail Merge to a Jord Qocument' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'IDI 8%nchroniKing 4ontacts' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'IE2 Jorking #ith <ther :pps ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'IE .0porting QuickBooks Qata ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' IEE Importing Qata from <ther ,rograms ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ICI

4A:,T.> 2D:

!usto'i=ing QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 0++
4ustomiKing the Aome ,age ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D00 5ast :ccess to 5avorite 5eatures ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D0& 4ustomiKing the 4ompan% 8napshot ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D0C 4ustomiKing 5orms ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D11

4A:,T.> 2E:

:ee&ing 8our QuickBooks 1ata $ecure ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 325
8etting ;p the :dministrator ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D2I 4reating QuickBooks ;sers ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D&0 >estricting :ccess to 5eatures and Qata ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D&&

viii

COntents

,art 5ive:
:,,.BQIR ::

*&&en i"es
#nstalling QuickBooks' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 3(+
Before Nou Install ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D&C Installing QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D41 >egistering QuickBooks ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D4I 8etting ;p QuickBooks on a Bet#ork ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D4D Jhere to 8tore Nour 4ompan% 5iles' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D4D

:,,.BQIR B:

Hel&, $u&&ort, an 4ther Resources ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 351
QuickBooks Aelp ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D 1 Intuit 4ommunit% ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D & <ther 6inds of Aelp ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D <ther Aelp >esources ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 'D I QuickBooks Training ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' D D

>4TE

:ppendi0es 4? Q? and . are availa!le from this !ook=s Missing 4Q page at ###'missingmanuals 'com (cds' "To learn a!out the Missing 4Q page? turn to page 00vi'$ :,,.BQIR 4: :,,.BQIR Q: :,,.BQIR .:

:ey.oar $hortcuts Tracking Ti'e <ith the $tan alone Ti'er * vance For' !usto'i=ation #n e"' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 35+

COntents

ix

The Missing 4redits


*B4%T *%TH4R THE
Bonnie Biafore has al#a%s !een fascinated #ith math in its prac* tical and more esoteric forms' :s an engineer and pro2ect man* ager? she=s thorough and steadfastl% attentive to detail !ut redeems herself !% using her sick sense of humor to transform these drool* inducing su!2ects into entertaining reading' 8he #rites a!out personal finance? investing? accounting? and pro2ect management' Aer !ooks B:I4 8tock 8election Aand!ook and 8uccessful ,ro2ect Management #on ma2or a#ards from the 8ociet% of Technical 4ommunication and :,.R :#ards for ,u!lication .0cellence "!ut the raves she receives from !eginning investors mean much more to her$' Bonnie is also the author of <=>eill%=s Microsoft ,ro2ect 201&: The Missing Manual? ,ersonal 5inance: The Missing Manual? and <nline Investing Aacks' 8he #rites a monthl% column called +Je!Jatch/ for Better Investing magaKine' 8he has recorded several courses on QuickBooks? pro2ect management? and Microsoft ,ro2ect for P%nda'com' :s a consultant? she manages pro2ects for clients? provides training? and #ins accolades for her a!ilit% to herd cats' Jhen not chained to her computer? she hikes and c%cles in the mountains near her home in 4olorado? #alks her dogs? takes aerial dance classes? and cooks gourmet meals' 8he has also pu!lished her first novel? 5resh 8)ueeKed? featuring hit men? stupid criminals? and much political incorrectness' Nou can learn more at Bonnie=s #e!site? ###'!onnie!iafore'com? or email her at !onnie'!iaforeFgmail'com'

*B4%T THE !RE*TivE TE*M


1a<n Mann "editor$ is associate editor for the Missing Manual series' Jhen not #orking? she pla%s soccer? !eads? and causes trou!le "though not simultaneousl%$' .mail: da#nForeill%'com' :ara E.rahi' "production editor$ lives? #orks? and pla%s in 4am!ridge? M:' 8he loves graphic design and all things outdoors' .mail: ke!rahimForeill%'com' Bra ;hite "tech revie#er$ is 4<< of >eal Jorld Training and has !een teaching and consulting on QuickBooks since 1CCE' Jhen he isn=t fi0ing someone else=s com* puter pro!lems? he en2o%s listening to audio!ooks? eating sushi? and riding his road !ike? imagining he=s in the Tour de 5rance' Je!site: ###'QuickBooksTraining'com' Michael !o.. "tech revie#er$ is an Information Qesigner #ith >eal Jorld Training and en2o%s pa%ing #a% too much for tech gadgetr%? cooking insanel% spic% food?

tHe MIssInG

xi

and

traveling

to

e0otic

lands

like

4alifornia'

.mail:

michaelSco!!Freal#orldtraining'com'

xii

tHe MIssInG

Ron $trauss "inde0er$ specialiKes in the inde0ing of information technolog% pu!lica* tions of all kinds' >on is also an accomplished classical violist and lives in Borthern 4alifornia #ith his #ife and fello# inde0er? :nnie? and his miniature pinscher? 6anga' .mail: rstraussFmchsi'com' -ulie /an :euren "proofreader$ )uit her ne#spaper 2o! in 200I to move to Montana and live the freelancing dream' 8he and her hus!and? M'A' "#ho is living the novel* #riting dream$? have t#o sons? Qe0ter and Michael' .mail: littleSmediaF%ahoo'com'

*!:>4;2E1)EME>T$
Bo <=>eill% !ook that I author can go to print #ithout me ackno#ledging the a#e* some team at <=>eill%' Qa#n Mann is editor e0traordinaire' 8he can spot potential points of confusion in m% #riting from a mile a#a% and usuall% comes up #ith a #onderfull% clear alternative' If she=s stumped? she asks for clarification in a #a% that even a diva "oh? I so hope I haven=t !ecome one$ #ouldn=t mind' 8he sta%s on top of details? so the%=re taken care of !efore an%one even thinks to ask' 8he has earned m% gratitude for keeping me compan% via email as #e !oth #orked #eekend after #eekend to complete this !ook' M% thanks also go to 6ara .!rahim and the rest of the <=>eill% folks for shepherding m% !ook through the production process' I am grateful for the eagle e%e of proofreader Oulie Lan 6euren for #rangling punctuation? capitaliKation? and ungainl% sentences into su!mission' Qe!ra 6ilsheimer? a partner in the ta0 and accounting firm Behind the 8cenes 5inan* cial 8ervices and an :dvanced 4ertified QuickBooks ,ro:dvisor? helped me #ith the pa%roll chapter' Aer QuickBooks videos on NouTu!e are right up the Missing Manual alle%: up!eat? helpful? and fun' I also #ant to thank the technical revie#ers? Brad Jhite and Michael 4o!!' Their enc%clopedic kno#ledge of QuickBooks and #illingness to introduce me to Intuit e0perts #as a much appreciated gift'

THE Mi$$i>) M*>%*2 $ERiE$


Missing Manuals are #itt%? super!l% #ritten guides to computer products that don=t come #ith printed manuals "#hich is 2ust a!out all of them$' .ach !ook features a handcrafted inde0 and cross*references to specific pages "not 2ust chapters$' >ecent and upcoming titles include:

:ccess 201&: The Missing Manual !% Matthe# MacQonald Bu%ing a Aome: The Missing Manual !% Banc% 4onner 4reating a Je!site: The Missing Manual? Third .dition !% Matthe# MacQonald 488&: The Missing Manual? Third .dition !% Qavid 8a#%er Mc5arland Qream#eaver 44: The Missing Manual !% Qavid 8a#%er Mc5arland and 4hris @rover .0cel 201&: The Missing Manual !% Matthe# MacQonald 5ileMaker ,ro 12: The Missing Manual !% 8usan ,rosser and 8tuart @ripman 5lash 48I: The Missing Manual !% 4hris @rover

tHe MIssInG

xiii

@ala0% Ta!: The Missing Manual !% ,reston @ralla @ala0% 84: The Missing Manual !% ,reston @ralla @oogleT: The Missing Manual !% 6evin ,urd% ATMP : The Missing Manual? 8econd .dition !% Matthe# MacQonald iMovie =11 - iQLQ: The Missing Manual !% Qavid ,ogue and :aron Miller i,ad: The Missing Manual? 8i0th .dition !% O'Q' Biersdorfer i,hone: The Missing Manual? 8eventh .dition !% Qavid ,ogue i,hoto =11: The Missing Manual !% Qavid ,ogue and Pesa 8nider i,od: The Missing Manual? .leventh .dition !% O'Q' Biersdorfer and Qavid ,ogue Oava8cript - 2Quer%: The Missing Manual? 8econd .dition !% Qavid 8a#%er
Mc5arland 6indle 5ire AQ: The Missing Manual !% ,eter Me%ers

Piving @reen: The Missing Manual !% Banc% 4onner Microsoft ,ro2ect 201&: The Missing Manual !% Bonnie Biafore Motorola Room: The Missing Manual !% ,reston @ralla B<<6 AQ: The Missing Manual !% ,reston @ralla <ffice 2011 for Macintosh: The Missing Manual !% 4hris @rover <ffice 201&: The Missing Manual !% Banc% 4onner and Matthe# MacQonald <8 R Mavericks: The Missing Manual !% Qavid ,ogue ,ersonal Investing: The Missing Manual !% Bonnie Biafore ,hotoshop 44: The Missing Manual !% Pesa 8nider ,hotoshop .lements 12: The Missing Manual !% Bar!ara Brundage ,A, - M%8QP: The Missing Manual? 8econd .dition !% Brett McPaughlin 8#itching to the Mac: The Missing Manual? Mavericks .dition !% Qavid ,ogue 8#itching to the Mac: The Missing Manual? Mountain Pion .dition !% Qavid ,ogue Jindo#s D: The Missing Manual !% Qavid ,ogue Jindo#s E: The Missing Manual !% Qavid ,ogue Jord,ress: The Missing Manual? 8econd .dition !% Matthe# MacQonald Nour Bod%: The Missing Manual !% Matthe# MacQonald Nour Brain: The Missing Manual !% Matthe# MacQonald Nour Mone%: The Missing Manual !% O'Q' >oth
@o to ###'missingmanuals'com(li!rar%'html for a full list of Missing Manuals in print'

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xiii

Introduction

housands of small companies and nonprofit organiKations turn to QuickBooks to keep their finances on track' :nd over the %ears? Intuit has introduced various editions of the program to satisf% the needs of different t%pes of companies' Back #hen milk #as simpl% milk? %ou either used QuickBooks or %ou didn=t' But no#? #hen %ou can choose milk from so%!eans and rice as #ell as co#sUand #ith five different levels of fatUit=s no surprise that QuickBooks comes in a variet% of editions "#hich? in some cases? are dramaticall% different from their si!lings$? as #ell as si0 industr%*specific editions' 5rom the smallest of sole proprietorships to !urgeoning enterprises? one of these editions is likel% to meet %our organiKation=s needs and !udget' QuickBooks isn=t hard to learn' Man% of the features that %ou=re familiar #ith from other programs #ork the same #a% in QuickBooksU#indo#s? dialog !o0es? drop* do#n lists? and ke%!oard shortcuts? to name a fe#' :nd #ith each ne# version? Intuit has added enhancements and features to make %our #orkflo# smoother and faster' The challenge is kno#ing #hat to do according to accounting rules? and ho# to do it in QuickBooks' This !ook teaches %ou ho# to use QuickBooks and e0plains the accounting concepts !ehind #hat %ou=re doing'

Jhat=s Be# in QuickBooks 2014


Qespite the fluctuating siKe of the ta0 code? accounting and !ookkeeping practices don=t change much each %ear' The changes in QuickBooks 2014 are mostl% small t#eaks and su!tle improvements? !ut some of them might !e 2ust #hat %ou=ve !een #aiting for:

xvi

QUICKBOOKs 2014: tHe MIssInG

WHEN
Q;I46B<<68 2014 V $etting u& .ank fee s "the connections !et#een %our real*#orld !ank accounts and the accounts in QuickBooks$ is a simpler and shorter process these da%s? as %ou=ll learn on page I1 ' In the Bank 5eed 8etup #indo#? 2ust fill in %our !ank=s name? %our user IQ? and %our pass#ord' Jhen the Bank 5eed 8etup #indo# displa%s the accounts %ou have at that !ank? simpl% match them up #ith the cor* responding accounts in %our QuickBooks compan% file? click 4onnect? and %our QuickBooks accounts are read% to talk to the ones at %our financial institution'

V The Bank Fee !enter "page I22$ makes it eas% to compare %our online !ank account !alances #ith the ones in %our QuickBooks accounts' :fter %ou do#n* load transactions? a status area in the middle of the Bank 5eed 4enter #indo# sho#s ho# man% transactions QuickBooks #as a!le to match automaticall% and ho# man% %ou have to match manuall%' Then? #hen %ou click the Transaction Pist !utton to open the Transactions Pist #indo#? that same info appears at the top of the #indo#' 4lick one of the !ars in the Transactions Pist #indo#=s status area? such as the orange Beed Nour >evie# !ar? and the program filters the transaction ta!le to sho# onl% those transactions' :nd %ou can fill in the pa%ee name? account? or class right in the transaction ta!le' In addition? %ou can tell QuickBooks ho# to handle each transaction !% choosing an option from the :ction cell=s drop* do#n menu: add the transaction to %our account register? add more details to it? match it to an e0isting transaction? or ignore it' Nou can also add? approve? or delete multiple transactions at once' :s %ou process the do#nloaded transactions? QuickBooks updates the status area to reflect %our progress' V #nco'e Tracker "page &20$ lets %ou see the !ig picture of %our income at a glance? sho#s the transactions that contri!ute to those high*level num!ers? and provides features that streamline collecting income from %our customers' "This feature is availa!le onl% if %our compan% file uses 2ust one currenc%'$ The colored !o0es at the top of the #indo# represent four categories of income: the total value of estimates %ou=ve created? the total amount on %our open invoices "that is? the invoiced income that isn=t due %et$? the total overdue amount? and ho# much %our customers paid %ou in the last &0 da%s' The #indo#=s transaction ta!le lists the transactions that contri!ute to the totals at the top of the #indo#' Nou can filter the ta!le to peruse the detailsU for e0ample? to see all the overdue invoices for the last )uarter' >ead% to take action? like receive a pa%ment on an invoiceG 4lick that invoice=s :ction cell? click the do#n arro# that appears? and then choose >eceive ,a%ments from the drop*do#n list' 4hoose ,rint or .mail from the drop*do#n list instead to print or email the invoice' V Each co'&any file can have its o<n color sche'e "page I4C$? so %ou can easil% identif% #hich compan% file %ou=re #orking on !% the color of the QuickBooks title !ar and the !orders of its #indo#s' Nou can choose from 1 different colors'

xv

WHEN
V Han ling .ounce checks "page &I2$ in QuickBooks 2014 is easier than it used to !e' Jhen a customer=s check !ounces? the program can help %ou perform the steps re)uired to deduct mone% from %our account and re*invoice %our customer'

V The Re&orts ta. #ithin transaction #indo#s contains icons for running reports related to that t%pe of transaction' 5or e0ample? the 4reate Invoices #indo#=s >eports ta! has icons for reports such as Transaction Aistor%? Lie# <pen In* voices? and 8ales !% 4ustomer Qetail' V Nou can tell QuickBooks ho< 'any &ages <i e or tall %ou #ant a report to !e "page C2$' V :s %ou t%pe something in the $earch .o" ? QuickBooks displa%s a drop*do#n list #ith suggested search terms and recent search terms "page &1&$' If %ou see the term %ou #ant? simpl% click it' V Nou can no# co&y a line in a transaction ta.le an &aste it into another line in the ta.le' 5or e0ample? if %ou add a line in the #rong place in the invoice? %ou can cop% and paste it to another ro#' V ;orking <ith e'ail in QuickBooks is easier and more po#erful' If %ou use a Je!*!ased email service like @mail? %ou can set up multiple email templates "page IIC$ for each t%pe of transaction %ou send out' If %ou attach files to transactions? %ou can also attach them to the email message "page &01$' In addition? the >e* ceive ,a%ments #indo# no# includes a feature for emailing a pa%ment receipt to a customer "in earlier editions of QuickBooks? %ou could onl% print a receipt$'

Jhen QuickBooks Ma% Bot Be the :ns#er


Jhen %ou run a !usiness "or a nonprofit$? %ou track compan% finances for t#o rea* sons: to keep %our !usiness running smoothl% and to generate the reports re)uired !% the I>8? 8.4? and an%one else %ou have to ans#er to' QuickBooks helps %ou perform !asic financial tasks? track %our financial situation? and manage %our !usi* ness to make it even !etter' But !efore %ou read an% further? here are a fe# things %ou shouldn=t tr% to do #ith QuickBooks: V ;ork <ith 'ore than 14,500 uni?ue inventory ite's or 14,500 contact na'es@ QuickBooks ,ro and ,remier compan% files can hold up to 14? 00 inven* tor% items and a com!ined total of up to 14? 00 customer? vendor? emplo%ee? and other "<ther Bames Pist$ names' "In the QuickBooks .nterprise 8olutions edition of the program? the num!er of names is virtuall% unlimited'$ V Track &ersonal finances@ .ven if %ou=re a compan% of one? keeping %our personal finances separate from %our !usiness finances is a good move? particularl% #hen it comes to ta0 reporting' In addition to opening a separate checking account for %our !usiness? track %our personal finances some#here else "like in Quicken$' If %ou do decide to use QuickBooks? at least create a

s e p a r a t e c o m p a n % fi l e f o r % o u r p e r s o n a l fi n a n c i a l i n f o '

IntRODUCtIO

xviix

WHAT
M:N B<T B. TA. :B8J.>

xviiix

QUICKBOOKs 2014: tHe MIssInG

4A<<8IB@ TA. >I@AT .QITI<B

V Track the &erfor'ance of stocks an .on s@ QuickBooks isn=t meant to keep track of the capital gains and dividends %ou earn from investments such as stocks and !onds' <f course? companies have investments like machines? and %ou should track investments such as these in QuickBooks' Ao#ever? in Quick* Books? the% sho# up as assets of %our compan% "page 4I0$' V Manage s&eciali=e etails a.out custo'er relationshi&s@ Pots of information goes into keeping customers happ%' Jith QuickBooks? %ou can sta% on top of customer activities #ith features like to*dos? notes? reminders? and memoriKed transactions' Nou can also keep track of leads !efore the% turn into customers' But if %ou need to track details for thousands of mem!ers or customers? items sold on consignment? pro2ect progress? or tasks related to managing pro2ects? a customer*management program or a program like Microsoft .0cel or :ccess might !e a !etter solution' 8ome third*part% customer*management programs integrate #ith QuickBooks "page IE $'

>4TE

4hoosing the >ight .dition


QuickBooks comes in a gamut of editions? offering options for organiKations at !oth ends of the small*!usiness spectrum' QuickBooks ,ro handles the !asic needs of most !usinesses? #hereas .nterprise 8olutions "the most ro!ust and po#erful edi* tion of QuickBooks$ !oasts enhanced features and speed for the !iggest of small !usinesses' <n the other hand? the online editions of QuickBooks offer features that are availa!le an% time %ou=re online'
;*R>#>)

QuickBooks for Mac differs significantl% from the Jindo#s version? so this !ook isn=t meant to !e a guide to the Mac version of the program' Pike#ise? features var% in the editions for different countriesW this !ook focuses on the ;'8' version' This !ook focuses on QuickBooks ,ro !ecause its !alance of features and price make it the most popular edition' Throughout this !ook? %ou=ll also find notes a!out features offered in the ,remier edition? #hich is one step up from ,ro' "Jhether %ou=re #illing to pa% for these additional features is up to %ou'$ Aere=s an overvie# of #hat each edition can do: V QuickBooks 4nline $i'&le $tart is a lo#*cost online option for small !usinesses #ith ver% simple accounting needs and onl% one person running QuickBooks at a time' It=s eas% to set up and use? !ut it doesn=t offer features like entering !ills? managing inventor%? tracking time? or sharing %our compan% file #ith %our accountant? and %ou can do#nload transactions from onl% one !ank "or credit card$ account'

V QuickBooks 4nline Essentials allo#s up to three people to run QuickBooks at a time and lets %ou connect to as man% !ank or credit card accounts as %ou

IntRODUCtIO

xixxi

#ant' :s its name suggests? it offers essential features like automated invoicing? creating estimates? and entering !ills' V QuickBooks 4nline 6lus has most of the features of QuickBooks ,ro? !ut %ou access the program via the Je! instead of running it on %our ,4'
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4A<<8IB@ TA. >I@AT .QITI<B

These online editions let %ou use QuickBooks an%#here? on an% computer? ta!let? or smartphone? so the%=re ideal for someone #ho=s al#a%s on the go' The online editions are su!scription*!ased? so %ou pa% a monthl% fee to use them' :lthough a %ear=s su!scription adds up to more than #hat %ou=d t%picall% pa% to !u% a license of QuickBooks ,ro? #ith a su!scription? %our soft#are is al#a%s up to dateU%ou don=t have to upgrade it or convert %our compan% files to the ne# versions %ou install' V QuickBooks 6ro is the #orkhorse desktop edition' It lets up to three people #ork on a compan% file at a time and includes features for tasks such as invoicingW entering and pa%ing !illsW 2o! costingW creating estimatesW saving and distri!ut* ing reports and forms as email attachmentsW creating !udgetsW pro2ecting cash flo#W tracking mileageW customiKing formsW customiKing prices #ith price levelsW printing shipping la!elsW and integrating #ith Jord? .0cel? and hundreds of other programs' QuickBooks ,ro=s name listsUcustomers? vendors? emplo%ees? and so onUcan include up to a com!ined total of 14? 00 entries' <ther lists? like the 4hart of :ccounts? can have up to 10?000 entries each'

>4TE

QuickBooks ,ro ,lus is a su!scription product that costs a little more than the one*time license fee %ou pa% for QuickBooks ,ro? !ut QuickBooks ,ro ,lus offers mo!ile access? unlimited phone support? online !ackups? and al#a%s*up*to*date soft#are' 8imilarl%? QuickBooks ,remier ,lus is the premier version of the su!scription product' V QuickBooks 6re'ier is another multiuser edition "up to five simultaneous us* ers$' It can handle inventor% items assem!led from other items and components? generate purchase orders from sales orders and estimates? appl% price levels to individual items? e0port report templates? produce !udgets and forecasts? and #ork #ith different units of measure for items' ,lus? it offers enhanced invoicing for time and e0penses' This edition also includes a fe# e0tra features like revers* ing 2ournal entries' Jhen %ou purchase QuickBooks ,remier? %ou can choose from si0 different industr%*specific flavors "see the ne0t section$' Pike the ,ro edition? ,remier can handle a com!ined total of up to 14? 00 name list entries' V Enter&rise $olutions is the edition for midsiKed operations' It=s faster? !igger? and more ro!ust than its si!lings' ;p to &0 people can access a compan% file at the same time? and this simultaneous access is at least t#ice as fast as in the ,ro or ,remier edition' The program=s data!ase can handle lots more names in its 4ustomer? Lendor? .mplo%ee? and <ther Bames lists "1 million versus 14? 00 for ,ro and ,remier$' It can track inventor% in multiple #arehouses or stores and produce com!ined reports for those companies and locations' :nd !ecause more people can !e in %our compan% file? this edition has features such as an

4A<<8IB@ TA. >I@AT .QITI<B

ACCOUNTIN G
enhanced audit trail? more options for assigning or limiting user permissions? and the a!ilit% to delegate administrative functions to the other people using the program' :nd if %ou su!scri!e to Intuit=s :dvanced Inventor% service? %ou can value inventor% !% using first in(first out "5I5<$ valuation'
T#6

Nou don=t have to pa% list price for QuickBooks' Nour local office suppl% store? :maKon? and an% num!er of other retail outlets usuall% offer the program at a discount' "If %ou !u% QuickBooks from Intuit? %ou pa% full price? !ut %ou also have I0 da%s to return the program for a full refund'$ In addition? accountants can resell QuickBooks to clients? so it=s #orth asking %ours a!out purchase and upgrade pricing' QuickBooks ,ro:dvisors "%ou can find a local one !% going to http:((proadviso r'i ntuit'com (find*a*proadviso r(sea rch'2sp$ can get %ou up to a &0 percent discount on QuickBooks ,ro or ,remier? and %ou=ll have I0 da%s to return the program for a refund'

The QuickBooks 6re'ier !hoices


If %ou #ork in one of the industries covered !% QuickBooks ,remier? %ou can get additional features uni)ue to %our industr%' "Jhen %ou install QuickBooks ,remier? %ou choose the industr% version %ou #ant to run' If %our !usiness is in an industr% other than one of the five options? choose @eneral Business'$ 8ome people s#ear that these customiKations are #orth ever% e0tra penn%? #hile others sa% the addi* tional features don=t #arrant the ,remier price' <n the QuickBooks #e!site "http:(( )uick!ooks'intuit'com(premier$? %ou can tour the ,remier features to decide for %ourself' <r %ou can purchase QuickBooks :ccountant? #hich can run an% QuickBooks edition? from QuickBooks ,ro to the gamut of ,remier=s industr%* specific versions'
>4TE

QuickBooks :ccountant edition is designed to help professional accountants and !ookkeepers deliver services to their clients' It lets %ou run an% QuickBooks edition ",ro or an% of the ,remier versions$' It also lets %ou revie# %our clients= data and easil% correct mistakes %ou find? transfer an accountant=s cop% to %our client? design financial statements and other documents? process pa%roll for clients? reconcile clients= !ank accounts? calculate depreciation? prepare clients= ta0 returns? and #ork on t#o compan% files at a time' Aere are the industries that have their o#n ,remier editions: V The )eneral Business edition has ,remier goodies like per*item price levels? sales orders? and so on' It also has sales and e0pense forecasting? the Inventor% 4enter? more !uilt*in reports than QuickBooks ,ro? and a !usiness plan feature "although? if %ou=re using QuickBooks to keep %our !ooks? %ou ma% alread% have a !usiness plan$' V The !ontractor edition includes special features near and dear to construction contractors= hearts: 2o!*cost and other contractor*specific reports? the a!ilit% to set different !illing rates !% emplo%ee? and tools for managing change orders' V Manufacturing A ;holesale is targeted at companies that manufacture prod* ucts' Its chart of accounts and menus are customiKed for manufacturing and #holesale operations' Nou can use it to manage inventor% assem!led from components and to track customer return merchandise authoriKations ">M:s$ and damaged goods'

V If %ou run a nonprofit organiKation? %ou kno# that several things #ork differ* entl% in the nonprofit #orld? as the !o0 !elo# details' The >on&rofit edition of QuickBooks includes features such as a chart of accounts customiKed for nonprofits? forms and letters targeted to donors and pledges? info a!out using the program for nonprofits? and the a!ilit% to generate 8tatement of 5unctional .0penses CC0 forms'
FREQ%E>T28 *$:E1 Q%E$T#4>

IM,<>T:BT 8T;55

Bonprofit Qilemma
I=m doing the !ooks for a tin% nonprofit corporation' I=d reall% like to avoid spending an% of our hard*raised funds on a special edition of QuickBooks' 4an=t I 2ust use QuickBooks ,roG Nou ma% !e tempted to save some mone% !% using QuickBooks ,ro instead of the more e0pensive QuickBooks Bonprofit edi* tion? and %ou canUif %ou=re #illing to live #ith some limita* tions' :s long as funding comes primaril% from unrestricted sources? the ,ro edition #ill #ork reasona!l% #ell' Nou=ll have to accept using the term +customer/ #hen %ou mean donor or mem!er? or the term +2o!/ for grants %ou receive' Throughout this !ook? %ou=ll find Botes and Tips a!out tracking nonprofit finances #ith QuickBooks ,ro or QuickBooks ,remier "the @en* eral Business editionUnot the Bonprofit edition$' Ao#ever? if %ou receive restricted funds or track funds !% program? %ou=ll have to manuall% post them to e)uit% accounts and allocate them to accounts in %our chart of accounts? since QuickBooks ,ro doesn=t automaticall% perform these staples of nonprofit accounting' Pike#ise? that version of the program doesn=t generate all the reports %ou need to satisf% %our grant providers or the government? although %ou can e0port reports "page IC1$ and then modif% them as necessar% in a spreadsheet program' In that case? QuickBooks ,remier Bonprofit might !e a real timesaver'

V The 6rofessional $ervices edition "not to !e confused #ith QuickBooks ,ro$ is designed for companies that deliver services to their clients' ;ni)ue features include pro2ect*costing reports? templates for proposals and invoices? !illing rates that %ou can customiKe !% client or emplo%ee? and professional serviceX specific reports and help' V The Retail edition is customiKed for retail !usinesses' It includes specialiKed menus? reports? forms? and help? as #ell as a custom chart of accounts' Intuit offers companion products that %ou can integrate #ith this edition to support all aspects of %our retail operation' 5or e0ample? QuickBooks= ,oint of 8ale product tracks sales? customers? and inventor% as %ou ring up sales? and it shoots that information over to %our QuickBooks compan% file'

:ccounting Basics: The Important 8tuff


QuickBooks helps people #ho don=t have a degree in accounting handle most ac* counting tasks' Ao#ever? %ou=ll !e more productive and have more accurate !ooks if %ou understand the follo#ing concepts and terms: V 1ou.le9entry accounting is the standard method for tracking #here %our mone% comes from and #here it goes' 5ollo#ing the old sa# that mone% doesn=t

ACCOUNTIN G IM,<>T:BT
8T;55

gro# on trees? mone% al#a%s comes from some#here #hen %ou use dou!le* entr% accounting' 5or e0ample? as sho#n in Ta!le I*1? #hen %ou sell something to a customer? the mone% on %our invoice comes in as income and goes into %our :ccounts >eceiva!le account' Then? #hen %ou deposit the pa%ment? the mone% comes out of the :ccounts >eceiva!le account and goes into %our checking account' "8ee 4hapter 1I for more a!out dou!le*entr% accounting and 2ournal entries'$

%6 T4 $6EE1

Pearning More a!out :ccounting


If %ou need to learn a lot a!out QuickBooks and a little some* thing a!out accounting? %ou=re holding the right !ook' But if !ookkeeping and accounting are unfamiliar territor%? some !ackground training ma% help %ou use QuickBooks !etter and more easil% "#ithout calling %our accountant for help five times a da%$' The :ccounting and Business 8chool of the >ockies of fers an accounting and !ookkeeping self*stud% course that %ou can pla% on a L4> or QLQ pla%er' The course presents real* life accounting situations? so %ou=ll learn to solve common small*!usiness accounting pro!lems? and it includes hands*on e0ercises to help %ou master the material' It doesn=t take long to complete? so %ou=ll !e up and accounting in no time' To contact the school? visit ## #'a! sr school ' com or call 1*&0&* D *IEE ' >eal Jorld Training offers +Mastering :ccounting Basics for QuickBooks?/ an Intuit*endorsed product that teaches !asic accounting concepts using QuickBooks in its e0amples' It=s availa!le online? on 4Q? and on QLQ' 4heck it out at h t t p: (( tin%u r l ' com (r #a ccou n tin g '

>4TE

.ach side of a dou!le*entr% transaction is either a de!it or a credit' :s %ou can see in Ta!le I*1? #hen %ou sell products or services? %ou credit %our income account "since %our income increases #hen %ou sell something$? !ut de!it the :ccounts >eceiva!le account "!ecause selling something also increases ho# much customers o#e %ou$' Nou=ll see e0amples throughout the !ook of ho# transactions translate to account de!its and credits'
T*B2E i91 5ollo#ing the mone% through accounts TR*>$*!T#4> 8ell products or services 8ell products or services >eceive pa%ment >eceive pa%ment ,a% for e0pense ,a% for e0pense *!!4%>T :ccounts >eceiva!le 8ervice Income 4hecking :ccount :ccounts >eceiva!le <ffice 8upplies 4hecking :ccount Y 00 Y 00 Y1?000 Y1?000 1EB#T Y1?000 Y1?000 !RE1#T

V !hart of accounts@ In !ookkeeping? an account is a place to store mone%? 2ust like %our real*#orld checking account is a place to store %our read% cash' The difference is that %ou need an account for each kind of income? e0pense? asset?

xxii

QUICKBOOKs 2014: tHe MIssInG

and lia!ilit% %ou have' "8ee 4hapter & to learn a!out all the different t%pes of accounts %ou might use'$ The chart of accounts is simpl% a list of all the accounts %ou use to keep track of %our compan%=s mone%' V !ash vs@ accrual accounting@ 4ash and accrual are the t#o different #a%s companies can document ho# much the% make and spend' 4ash accounting is the choice of man% small !usinesses !ecause it=s eas%: Nou don=t sho# income until %ou=ve received a pa%ment "regardless of #hen that happens$? and %ou don=t sho# e0penses until %ou=ve paid %our !ills' The accrual method? on the other hand? follo#s something kno#n as the matching principle? #hich matches revenue #ith the corresponding e0penses' This approach keeps income and e0penses linked to the period in #hich the% happened? no matter #hen cash comes in or goes out' The advantage of this method is that it provides a !etter picture of profita!ilit% !ecause income and its corresponding e0penses appear in the same period' Jith accrual accounting? %ou recogniKe income as soon as %ou record an invoice? even if %ou=ll receive pa%* ment during the ne0t fiscal %ear' 5or e0ample? if %ou pa% emplo%ees in Oanuar% for #ork the% did in Qecem!er? those #ages are part of the previous fiscal %ear' V Financial re&orts@ Nou need three reports to evaluate the health of %our com* pan% "descri!ed in detail in 4hapter 1D$: U The income statement? #hich QuickBooks calls a ,rofit - Poss report "page 4 &$? sho#s ho# much income %ou=ve !rought in and ho# much %ou=ve spent over a period of time' This QuickBooks report gets its name from the difference !et#een income and e0penses? #hich results in %our profit "or loss$ for that period' U The !alance sheet "page 4 C$ is a snapshot of ho# much %ou o#n and ho# much %ou o#e' :ssets are things %ou o#n that have value? such as !uildings? e)uipment? and !rand names' Pia!ilities are the mone% %ou o#e to others "like mone% %ou !orro#ed to !u% one of %our assets? sa%$' The difference !et#een %our assets and lia!ilities is the e)uit% in the compan%Ulike the e)uit% %ou have in %our house #hen the house is #orth more than %ou o#e on the mortgage' U The statement of cash flo#s "page 4I2$ tells %ou ho# much hard cash %ou have' Nou might think that a ,rofit - Poss report #ould tell %ou that? !ut noncash transactionsUsuch as depreciationUprevent it from doing so' The statement of cash flo#s removes all noncash transactions and sho#s the mone% generated or spent operating the compan%? investing in the compan%? or financing'

:B<;T TAI8 B<<6

:!out This Book


Q uickBook s Aelp provides a health% dose of accounting !ackground and trou!leshooting tips' If %ou don=t find the ans#er %ou need in the program=s +Aave

:B<;T TA. <;TPIB.

a QuestionG/ #indo# "page D 1$? the Intuit 4ommunit%U#hich lets %ou ask %our peers and e0perts for ans#ers "page D &$Uor !% searching #ith ke%#ords? #here do %ou turn ne0tG This !ook provides lots of real*#orld e0amples? and %ou can search for topics in its inde0' In addition? #ith this !ook? %ou can mark %our place? underline ke% points? 2ot notes in the margin? or read a!out QuickBooks #hile sitting in the sunUstuff that=s hard to do #hile reading on a screen' This !ook applies to the ;'8' Jindo#s version of QuickBooks ,ro and ,remier' "Because the Mac version of the program differs significantl% from the Jindo#s one? this !ook #on=t !e of much help if %ou have QuickBooks for Mac' Lersions for other countries differ from the ;'8' version? too? primaril% in ho# %ou #ork #ith pa%roll and ta0es'$ In these pages? %ou=ll find step*!%*step instructions for using ever% QuickBooks ,ro feature? including those %ou might not )uite understand: progress invoicing "page 2I4$? making 2ournal entries "page 4&&$? #riting off losses "page &IC$? handling customer refunds "page 2IE$? and so on' If %ou=re 2ust starting out #ith QuickBooks? read the first fe# chapters as %ou set up %our compan% file' :fter that? go ahead and 2ump from topic to topic depending on the !ookkeeping task at hand' :s mentioned earlier? %ou=ll learn a!out some of the e0tra !ells and #histles in the QuickBooks ,remier edition? as #ell' ":ll the features in QuickBooks ,roU and in this !ookUare also in ,remier'$ To keep %ou productive? this !ook also evaluates features to help %ou figure out #hich ones are most useful and #hen to use them'
>4TE

:lthough each version of QuickBooks introduces ne# features and enhancements? %ou can still use this !ook if %ou=re using an earlier version' <f course? the older %our version of the program? the more discrepancies %ou=ll run across'

QuickBooks 2014: The Missing Manual is designed to accommodate readers at ev*


er% technical level' The primar% discussions are #ritten for people #ith !eginner or intermediate QuickBooks skills' If %ou=re using QuickBooks for the first time? read the !o0es titled +;p to 8peed?/ #hich provide the introductor% info %ou need to understand the current topic' <n the other hand? people #ith advanced skills should #atch for similar !o0es la!eled +,o#er ;sers= 4linic?/ #hich include tips? tricks? and shortcuts for more e0perienced QuickBooks #ranglers'

:!out the <utline


This !ook is divided into five parts? each containing several chapters: V 6art 4ne e0plains ho# to set up QuickBooks !ased on %our organiKation=s needs' These chapters cover creating a compan% file and setting up accounts? customers? 2o!s? invoice items? and other lists'

V 6art T<o follo#s the mone% from the moment %ou rack up time and e0penses for %our customers and add charges to a customer=s invoice to the tasks %ou have to perform at the end of the %ear to satisf% the I>8 and other interested parties' These chapters descri!e ho# to track time and e0penses? pa% for things %ou !u%? !ill customers? manage the mone% that customers o#e %ou? pa% for e0penses? run pa%roll? manage %our !ank accounts? and perform other !ookkeeping tasks' V 6art Three delves into the features that can help %ou make %our compan% a successUor even more successful than it alread% is' These chapters e0plain ho# to keep track of the financial tasks %ou need to perform? manage QuickBooks files? keep %our inventor% at 2ust the right level? #ork #ith sales ta0? !uild !ud* gets? and use QuickBooks reports to evaluate ever% aspect of %our enterprise' V 6art Four helps %ou take %our cop% of the program to the ne0t level' Nou=ll learn ho# to save time and prevent errors !% do#nloading transactions electronicall%W !oost %our productivit% !% setting the program=s preferences to match the #a% %ou like to #ork and integrating QuickBooks #ith other programsW customiKe the program=s components to look the #a% %ou #antW andUmost importantUset up QuickBooks so %our financial data is secure'

TA. L.>N B:8I48

V 6art Five provides a guide to installing and upgrading QuickBooks and a refer* ence to helpful resources'
>4TE

Nou can find three !onus appendi0es online at this !ook=s Missing 4Q page at ###'missingmanuals' com (cds: :ppendi0 4: 6e%!oard 8hortcuts? :ppendi0 Q: Tracking Time #ith the 8tandalone Timer? and :ppendi0 .: :dvanced 5orm 4ustomiKation'

The Ler% Basics


To use this !ook "and QuickBooks$? %ou need to kno# a fe# !asics' This !ook as* sumes that %ou=re familiar #ith the follo#ing terms and concepts: V !licking@ This !ook includes instructions that re)uire %ou to use %our computer=s mouse or trackpad' To click means to point %our cursor "the arro# pointer$ at something on the screen and thenU#ithout moving the cursorU press and release the left !utton on the mouse "or laptop trackpad$' To right* click means the same thing? !ut %ou press the right mouse !utton instead' ";suall%? clicking selects an onscreen element or presses an onscreen !utton? #hereas right*clicking t%picall% reveals a shortcut menu? #hich lists some common tasks specific to #hatever %ou right*clicked'$ To dou!le*click means to click the left !utton t#ice in rapid succession? #ithout moving the pointer at all' :nd to drag means to move the cursor #hile holding do#n the left mouse !utton the entire time' Jhen %ou=re told to 8hift*click something? %ou click #hile pressing the 8hift ke%' >elated procedures? like 4trl*clicking? #ork the same #a%U2ust click #hile pressing the corresponding ke%'

:B<;TMTA.8.M :>><J8

V Menus@ The menus are the #ords at the top of %our screen: 5ile? .dit? and so on' 4lick one to make a list of commands appear? as though the%=re #ritten on a #indo# shade %ou=ve 2ust pulled do#n' 8ome people click to open a menu and then release the mouse !uttonW after reading the menu choices? the% click the option the% #ant' <ther people like to press the mouse !utton continuousl% as the% click the menu title and drag do#n the list to the desired commandW onl% then do the% release the mouse !utton' Both methods #ork? so use #hichever one %ou prefer' V :ey.oar shortcuts@ Bothing is faster than keeping %our fingers on %our ke%!oard to enter data? choose names? trigger commands? and so onU#ithout losing time !% gra!!ing %our mouse? carefull% positioning it? and then choosing a command or list entr%' That=s #h% man% e0perienced QuickBooks fans use ke%!oard shortcuts to accomplish most tasks' In this !ook? #hen %ou read an instruction like +,ress 4trlT: to open the 4hart of :ccounts #indo#?/ start !% pressing the 4trl ke%W #hile it=s do#n? t%pe the letter :W and then release !oth ke%s'

:!outMTheseM:rro#s
Throughout this !ook? and throughout the Missing Manual series? %ou=ll find sentences like this one: +4hoose PistsM4ustomer - Lendor ,rofile PistsM4ustomer T%pe Pist'/ That=s shorthand for a much longer instruction that directs %ou to navigate three nested menus in se)uence? like this: +:t the top of %our screen? click the Pists menu' <n the Pists menu? point to the 4ustomer - Lendor ,rofile Pists menu item' <n the su!menu that appears? choose 4ustomer T%pe Pist'/ 5igure I* 1 sho#s the menus this se)uence opens' 8imilarl%? this arro# shorthand also simplifies the instructions for opening nested folders? such as ,rogram 5ilesMQuickBooksM.0port 5iles'

:!out the <nline >esources


:s the o#ner of a Missing Manual? %ou=ve got more than 2ust a !ook to read' <nline? %ou=ll find e0ample files so %ou can get some hands*on e0perience? as #ell as tips? articles? and ma%!e even a video or t#o' Nou can also communicate #ith the Missing Manual team and tell us #hat %ou love "or hate$ a!out the !ook' Aead over to ###' missingmanuals'com? or go directl% to one of the follo#ing sections'

Missing !1
This !ook doesn=t have a 4Q pasted inside the !ack cover? !ut %ou=re not missing out on an%thing' @o to ###'missingmanuals'com(cds and click the +Missing 4Q* ><M/ link for this !ook to do#nload three additional appendi0es' :nd so %ou don=t #ear do#n %our fingers t%ping long #e! addresses? the Missing 4Q page also offers a list of clicka!le links to the #e!sites mentioned in this !ook'

xxvix

QUICKBOOKs 2014: tHe MIssInG

ABOUT

<BPIB. >.8<;>4.8

F i )%RE i 91

Instead of filling pages #ith long and hard*to* follo# instructions for navigating through nested menus and nested folders? the arro# notation is concise !ut 2ust as informative' 5or e0ample? choosing PistsM4ustomer - Lendor ,rofile PistsM 4ustomer T%pe Pist takes %ou to the menu item sho#n here'

Registration
If %ou register this !ook at oreill%'com? %ou=ll !e eligi!le for special offersUlike discounts on future editions of QuickBooks: The Missing Manual' >egistering takes onl% a fe# clicks' To get started? t%pe http:((oreill%'com(register into %our !ro#ser to hop directl% to the >egistration page'

Fee .ack
@ot )uestionsG Beed more informationG 5anc% %ourself a !ook revie#erG <n our 5eed!ack page? %ou can get e0pert ans#ers to )uestions that come to %ou #hile reading? and %ou can share %our thoughts on this !ook' To have %our sa%? go to ###' missingmanuals'com(feed!ack'

Errata
In an effort to keep this !ook as up*to*date and accurate as possi!le? each time #e print more copies? #e=ll make an% confirmed corrections %ou=ve suggested' Je also note such changes on the !ook=s #e!site? so %ou can mark important corrections into %our o#n cop% of the !ook? if %ou like' @o to http:((tin%url'com(QB14errata to report an error and vie# e0isting corrections'

IntRODUCtIO

xxviix

A!ARI"

<BPIB.

8afari1 Books <nline


8afari1 Books <nline "http: ((m%'safari!ooksonline'com$ is an on*demand digital li!rar% that lets %ou easil% search over D? 00 technolog% and creative reference !ooks and videos to find the ans#ers %ou need )uickl%' Jith a su!scription? %ou can read an% page and #atch an% video from our li!rar% online' >ead !ooks on %our cell phone and mo!ile devices' :ccess ne# titles !efore the% are availa!le for print? and get e0clusive access to manuscripts in development and post feed!ack for the authors' 4op% and paste code samples? organiKe %our favorites? do#nload chapters? !ookmark ke% sections? create notes? print out pages? and !enefit from tons of other time*saving features'

xxviii

QUICKBOOKs 2014: tHe MIssInG

,:>T

8etting ;p QuickBooks
4A:,T.> 1:

4reating a 4ompan% 5ile


4A:,T.> 2:

@etting :round in QuickBooks


4A:,T.> &:

8etting ;p a 4hart of :ccounts


4A:,T.> 4:

8etting ;p 4ustomers? Oo!s? and Lendors


4A:,T.> :

8etting ;p Items
4A:,T.> I:

Qata .ntr% 8hortcuts for Pists


4A:,T.> D:

8etting ;p <ther QuickBooks Pists

!H*6TER

1 4reating a 4ompan% 5ile

compan% file is #here %ou store %our compan%=s financial records in Quick* Books? so it=s the first thing %ou need to #ork on in the program' Nou can create a compan% file from scratch or convert records previousl% kept in a different small*!usiness accounting program? Quicken? or even another edition of QuickBooks like QuickBooks for Mac' If %ou=re ne# to !ookkeeping? another ap* proach is to use a file that someone else created' 5or e0ample? if %ou=ve #orked #ith an accountant to set up %our compan%? she might provide %ou #ith a QuickBooks compan% file alread% configured for %our !usiness so %ou can hit the ground running'
This chapter starts !% e0plaining ho# to launch %our cop% of QuickBooks' Then? if %ou need to create %our o#n compan% file? %ou=ll learn ho# to use the QuickBooks 8etup dialog !o0 or the .as%8tep Intervie# to get started "and find out #hich other chapters e0plain ho# to finish the 2o!$' If %ou=re converting %our records from another program? this chapter provides some hints for making the transition as smooth as possi!le' 5inall%? %ou=ll learn ho# to open a compan% file? update one to a ne# ver* sion of QuickBooks? and modif% !asic compan% information'

<pening QuickBooks
Aere are the easiest #a%s to open QuickBooks: V 1eskto& icon@ Qou!le*click the desktop shortcut that QuickBooks created during installation' V ;in o<s task.ar@ The fastest #a% to open QuickBooks in Jindo#s D is to

BE!ORE $OU

click its icon on the Jindo#s task!ar? sho#n in 5igure 1*1U!ut first %ou have to put it t%e&e' T( )( t%*t+ &i,%t-./i.0 t%e Q1i.0B((0s )es0t(2

i.(n *n) t%en+ (n t%e s%(&t.1t 3en1 t%*t *22e*&s+ .%((se 45in t(

QUICKBOOKs 2014: tHe MIssInG

the QuickBooks desktop icon to the 8tart screen takes a fe# more steps: ,oint the cursor at the screen=s upper*right corner to displa% the 4harms menu? click 8earch? t%pe )uick!ooks in the 8earch !o0? and then press .nter' Jhen %ou see the QuickBooks icon? right*click it? and then choose +,in to 8tart'/

F i )%RE 191

Jindo#s= task!ar keeps %our favorite icons near at hand' The task!ar is eas% to reach? !ecause program #indo#s don=t hide it the #a% the% do desktop shortcuts' Nou can rename desktop icons? as #as done here' To do that? right*click the icon? and then choose >ename on the shortcut menu' T%pe the la!el %ou #ant to use? and then press .nter'

V $tart 'enu@ Nou can also launch QuickBooks from the 8tart menu in Jin* do#s D' 4lick 8tartMQuickBooks ,ro 2014 "or QuickBooks ,remier 2014$' If QuickBooks isn=t alread% listed in the 8tar t menu? choose 8tar tM:ll ,rogramsMQuickBooksMQuickBooks ,ro 2014 "or QuickBooks ,remier 2014$' This method doesn=t appl% to Jindo#s E? !ecause it doesn=t have a 8tart menu' The first time %ou launch QuickBooks? %ou=re greeted !% the QuickBooks 8etup dialog !o0? #hose sole purpose is to help %ou create a compan% file in one #a% or another' The rest of this chapter e0plains ho# to create a compan% file and then ho# to open compan% files %ou create' :fter that? %ou=ll !e read% to dive into !ookkeeping'

Before Nou 4reate a 4ompan% 5ile


If %ou=ve 2ust started a !usiness and #ant to inaugurate %our !ooks #ith QuickBooks? %our prep #ork #ill !e a snap' If? on the other hand? %ou have e0isting records for %our !usiness? %ou have a fe# small tasks to complete !efore %ou 2ump into QuickBooks= setup' Jhether %our !ooks are paper ledgers or electronic files in another program? gather %our compan% information !efore %ou open QuickBooks' That #a%? %ou can hunker do#n in front of %our computer and crank out a compan% file in record time' This section e0plains #hat %ou need to create a compan% file in QuickBooks'

!hoosing a $tart 1ate


To keep %our entire financial histor% at %our fingertips? %ou need to put ever% transac* tion and speck of financial information in %our QuickBooks compan% file' But %ou have !etter things to do than enter %ears= #orth of checks? invoices? and deposits? so the comprehensive approach is practical onl% if %ou 2ust recentl% started %our compan%' The more realistic approach is to enter %our financial data into QuickBooks starting as of a specific date and? from then on? add all ne# transactions to QuickBooks' The date %ou choose is called the start date' "The start date isn=t something that %ou enter in a field in QuickBooksW it=s simpl% the earliest transaction date in %our compan% file'$ Nou shouldn=t choose it randoml%' Aere are %our start date options and the ramifications of each one: V The last ay of the &revious fiscal year@ The !est choice is to fill in %our records for the entire current fiscal %ear' To do that? use the last da% of %our compan%=s previous fiscal %ear as the compan% file start date' That #a%? the account !al* ances on %our start date are like the ending !alances on a !ank statement? and %ou=re read% to start !ookkeeping fresh on the first da% of the fiscal %ear' Nes? %ou have to enter checks? credit card charges? invoices? pa%ments? and other transactions that have happened since the !eginning of %our fiscal %ear "see the !o0 on page I$? !ut that #on=t take as much time as %ou think' :nd %ou=ll regain those hours #hen ta0 time rolls around? as %ou nim!l% generate the reports %ou need to complete %our ta0 returns' If more than half of %our fiscal %ear has alread% passed? the !est approach is to !e patient and postpone %our QuickBooks setup until the ne0t fiscal %ear' "Intuit releases ne# versions of QuickBooks in <cto!er or Bovem!er each %ear for 2ust that reason'$ But #aiting isn=t al#a%s feasi!le' In cases like that? go #ith the ne0t option in this list'
T#6

4>.:T. : 4<M,:BN 5IP.

BE!ORE

5or practice? %ou can start entering transactions that occur after the closing date of %our !ank statement from the month !efore %ou !egin entering transactions in QuickBooks' 5or e0ample? if %ou plan to start tracking %our !usiness finances in QuickBooks starting Oanuar% 1? gra! the !ank statement #hose closing date is !efore that "Qecem!er 1 ? sa%$' In QuickBooks? record all the transactions that occurred !et#een that statement=s opening and closing datesUBovem!er 1I through Qecem!er 1 ? in this e0ample' Then? %ou can practice reconciling that statement #ith %our QuickBooks records "page &D1$' V The last ay of the &revious fiscal &erio @ The ne0t !est start date is the last da% of the previous fiscal )uarter "or fiscal month? at the ver% least$' 8ince %our compan% file #on=t contain a full %ear=s #orth of detail if %ou go this route? %ou might have to s#itch !et#een QuickBooks and %our old filing ca!inets to prepare %our ta0 returns and look up financial information'

CHA5teR 1: CREATING A

BE!ORE $OU
64;ER %$ER$B !2#>#!

.ntering Aistor% in the >ight <rder


If %ou enter transactions from the !eginning of %our fiscal %ear? it=s important to add them in the right order so the information %ou need is availa!le #hen %ou need it' Aere=s the order to use: 1' * &urchase transactions, such as &urchase or ers, .ills, .ill &ay'ents, checks, cre it car charges, an so on@ B% entering these transactions first? %ou=ll have inventor% information and reim!ursa!le e0penses read% to go #hen %ou start entering invoices and other sales transactions' 2 ' #f y ou ch a r ge c u s t o' e r s f or h ou r s < or k e or & a y e'&loyees .y the hour, enter ti'esheet infor'ation ne"t@ B% doing so? %ou can create invoices or generate pa%checks for hours #orked' &' Enter sales transactions, such as sales recei&ts, invoices, an cre it 'e'os@ Nou need these transactions in place !efore %ou can record customer pa%ments or process sales ta0' 4' Recor custo'er &ay'ents an other e&osits@ ' Recor sales ta" &ay'ents for the goo s an services you sol @ I' #f you use QuickBooks for &ayroll, a &ayroll transactions@ D' Enter other .ank transactions, such as transfers an .ank fees@

*ccount Balances an Transactions


;nless %ou !egin using QuickBooks #hen %ou start %our !usiness? %ou need to kno# %our account !alances as of %our selected start date to get things rolling' 5or e0ample? if %our checking account has Y&42 at the end of the %ear? that value goes into QuickBooks during setup' Nou also need ever% transaction that=s happened since the start date %ou choseUe0penses %ou=ve incurred? sales %ou=ve made? pa%roll and ta0 transactions? and so onUto esta!lish %our asset? lia!ilit%? e)uit%? income? and e0pense accounts' 8o dig that information out of %our e0isting accounting s%stem "or shoe!o0$' "If %ou don=t #ant to record individual transactions? the !o0 on page E tells %ou ho# to )uickl% enter %our account totals as of a specific date'$ Aere are the !alances and transactions %ou need and #here %ou can find them in %our records: V !ash .alances@ 5or each !ank account %ou use in %our !usiness "checking? sav* ings? mone% market? and so on$? find the !ank statements #ith statement dates as close toU!ut earlier thanUthe start date of %our QuickBooks compan% file' @ather deposit slips and %our check!ook register to identif% the transactions that haven=t %et clearedW %ou=ll need them to enter transactions? unless %ou do#nload transactions from %our !ank "page I22$' If %ou have pett% cash l%ing around? count it and use that num!er to set up %our pett% cash account "page 20 $' 5or 8u!chapter 4 corporations? 8u!chapter 8 corporations? and partnerships? the !alance sheet that %ou

T#6

QUICKBOOKs 2014: tHe MIssInG

BE!ORE
included #ith %our previous %ear=s ta0 return is a great starting point for account !alances' Nour ta0 return also sho#s %our federal ta0 IQ num!er? #hich %ou=ll need? too'

CHA5teR 1: CREATING A

V !usto'er .alances@ If customers o#e %ou mone%? pull the paper cop% of ever% unpaid invoice or statement out of %our filing ca!inet "or find the electronic ver* sions %ou saved on %our computer$ so %ou can give QuickBooks #hat it needs to calculate %our :ccounts >eceiva!le !alance' If %ou didn=t keep copies? %ou can ask %our customers for copies of the invoices the% haven=t paid or simpl% create invoices in QuickBooks to match the pa%ments %ou receive' V /en or .alances@ If %our compan% thinks handing out cash !efore %ou have to is more painful than data entr%? find the !ills %ou haven=t %et paid and get read% to enter them in QuickBooks so %ou can generate %our :ccounts ,a%a!le !alance' "<r? to reduce the num!er of transactions %ou have to enter? simpl% pa% those outstanding !ills and then record the pa%ments in QuickBooks'$ V *sset values@ Jhen %ou o#n assets such as !uildings or e)uipment? their value depreciates over time' If %ou included a !alance sheet #ith the ta0 return %ou filed for %our compan%? %ou can find asset values and accumulated depreciation on %our most recent ta0 return "%et another reason to start using QuickBooks at the !eginning of %our fiscal %ear$' If %ou haven=t filed a ta0 return for %our compan% %et? an asset=s value is t%picall% the price %ou paid for it' V 2ia.ility .alances@ 5ind the current !alances %ou o#e on an% !usiness loans or mortgages' V #nventory@ If %ou stock products that %ou sell and track them as inventor%? %ou need to kno# ho# man% items %ou had in stock as of the start date? ho# much %ou paid for them? and #hat %ou e0pect to sell them for' V 6ayroll@ ,a%roll services are a great value for the mone%? #hich %ou=ll gro# to appreciate as %ou collect the info %ou need for pa%roll "including salaries and #ages? ta0 deductions? !enefits? pensions? 401"k$ deductions? and other stra% pa%roll deductions %ou might have$' Nou also need to kno# #ho receives #ith* holdings? such as ta0 agencies or the compan% handling %our 401"k$ plan' <h? %eahUand %ou also need pa%roll details for each emplo%ee' 4hapter 1 e0plains the pa%roll options that are availa!le inside and outside of QuickBooks'
T#6

4>.:TIB@ : 4<M,:BN 5IP.

If %ou have outstanding pa%roll #ithholdings such as emplo%ee pa%roll ta0es? send in the pa%ments !efore %ou start recording transactions in QuickBooks so %ou don=t have to enter those open transactions in %our compan% file'

4reating a 4ompan% 5ile


6eeping !ooks re)uires accurac%? attention to detail? and persistenceUhence the customar% image of spectacled accountants scanning ro# after ro# of num!ers' QuickBooks can help %ou keep %our !ooks #ithout ruining %our e%esightUas long as %ou start %our compan% file #ith good information' If %ou #ant to practice #ith QuickBooks? %ou can e0periment #ith a sample file? as the !o0 on page C e0plains'

4>.:TIB@ : 4<M,:BN 5IP.


;4R:*R4%>1 ;4R:$H46

8ummariKing Mid%ear :ccount Balances


If %ou need to s#itch to QuickBooks midXfiscal %ear !ut don=t #ant to trudge through transaction data entr%? don=t despair' : single 2ournal entr% can !ring %our income and e0pense ac* count totals up to date' :lthough %ou #on=t have the details %ou get from individual transactions? %our account !alances #ill !e accurate and read% for tasks like creating financial reports and filing ta0es' 5irst? %ou need to kno# %our income and e0pense accounts= totals' To get those num!ers? generate an income statement from %our previous accounting s%stem' ">un a cash*!asis or accrual*!asis report !ased on #hich method %ou use' 8ee page 00iii to learn a!out cash versus accrual accounting'$ To record those %ear*to*date income and e0pense num!ers in QuickBooks? create a 2ournal entr% "page 4&I$' 5ill in the Qate field #ith the last da% of the historical period? such as I(&0(14 to record financial results for the first half of the calendar %ear' In the 2ournal entr% ta!le? add a line for each income and e0pense account? as sho#n in 5igure 1*2' .nter values for income accounts in the 4redit column? and values for e0pense accounts in the Qe!it column'

F i )%RE 192

: 2ournal entr% that records income and e0pense totals is a compromise %ou can make #hen %ou must start using QuickBooks mid%ear' .ach 2ournal entr% ta!le ro# allocates funds to an income or e0pense account' .nter an income account total in the 4redit cell' .nter an e0pense account total in the Qe!it cell' If total e0pense is less than total income? assign the leftover amount in the de!it column to the <pening Balance .)uit% account' "That remaining amount is profit? #hich !ecomes %our e)uit% in the compan%? as descri!ed on page 4I1'$

QuickBooks makes it eas% to create a compan% file from scratch' "The !o0 on page C tells %ou ho# to find someone #ho can help %ou create one'$ Nou can opt for a short and s#eet process? #hich asks %ou for the !are minimum of info !efore it creates %our file' <r %ou can use a #iKard that guides %ou through the process #ith a series of )uestions that takes a!out 1 minutes to ans#er' The )uestions cover the !asics of creating and customiKing a compan% file to fit %our !usiness' QuickBooks needs to kno# some compan% information? the industr% %ou=re in? and the features %ou

#ant to use' The program then sets %our preferences and creates a fe# accounts "like !asic income and e0pense accounts and %our checking account$' <f course? %ou have to do the !ulk of the setup #ork later? #hich %ou learn in the !o0 on page 21'
%6 T4 $6EE1

4>.:TIB@ : 4<M,:BN 5IP.

@etting Aelp 4reating a Be# 4ompan% 5ile


The proud o#ners of !rand*ne# !usinesses face a dilemma: The% have more important things to do than muddle through setting up compan% files in QuickBooks? !ut mone% is usuall% as short as free time' If %ou don=t kno# much a!out !ook* keeping or accounting? a fe# hours of an accountant=s time is a #orth#hile investment #hen %ou=re getting started in QuickBooks' Nou=ll not onl% save untold hours? !ut also kno# that %our !ooks are set up properl%' :ccountants #ell*versed in QuickBooks can create a fla#less compan% file #ithout !reaking a s#eat' If %ou plan to do #ithout an accountant !ut %ou #ant some help setting up %our compan% file? %ou can choose AelpM5ind : Pocal QuickBooks .0pert' B% ans#ering a fe# )uestions on the Pocal QuickBooks .0per t #e!site "h t t p : ((ti n % u r l ' c o m ( f i n d * ) !a d vi s o r$? %ou can locate someone in %our area #ho can help %ou get started'

4&tions for !reating a !o'&any File


Nou can create a compan% file in several #a%s? and the QuickBooks 8etup dialog !o0U#hich opens automaticall% the ver% first time %ou start QuickBooksUis %our ticket to all of them' If %ou don=t see this dialog !o0? choose 5ileMBe# 4ompan% "or click +4reate a ne# compan%/ in the Bo 4ompan% <pen #indo#$' The dialog !o0 takes up most of the screen? so %ou can sta% focused on creating %our compan% file'
)EM #> THE R4%)H

.0perimenting #ith a 8ample 5ile


Nou don=t have to use %our real compan% file to test out Quick* Books features %ou=ve never used' The program comes #ith a couple of sample files: one for a !asic product*!ased !usiness? another for a !asic service*!ased !usiness' :nd if %ou have QuickBooks ,remier? %ou can e0periment #ith several other sample files for more specialiKed pursuits like contracting? consulting? manufacturing? and so on' To e0periment #ith QuickBooks features !efore %ou put them into production? in the Bo 4ompan% <pen #indo#? click +<pen a sample file/ and choose the one %ou #ant' "To displa% the Bo 4ompan% <pen #indo#? %ou have to close an% open com* pan% files !% choosing 5ileM4lose 4ompan% Zor 5ileM4lose 4ompan%(Pogoff if there=s more than one user set up for the file[' If the QuickBooks 8etup dialog !o0 is open? close it? too'$ Qon=t tr% to use one of these sample files as %our actual compan% file' The% come #ith accounts? customers? vendors? and transactions "such as checks? invoices? and purchase orders$' Besides? QuickBooks sets + toda%=s/ date in these files to 12(1 (201D? #hich makes transactions later than %ou or %our vendors #ould like "although %ou can edit the values in date !o0es$' If %ou !otch %our e0periment #ith sample files? %ou can al#a%s retrieve them from the QuickBooks 4Q' "If %ou do#nloaded QuickBooks? %ou can call Intuit 4ustomer 8upport and re)uest an installation 4Q for a small fee'$

The three !asic approaches to creating a compan% file are covered !% the QuickBooks 8etup dialog !o0=s three !uttons:

CHA5teR 1: CREATING A

4<M,:BN 5IP.

CREATING

: Ex2&ess t*&t' T%is ;1tt(n is in 2(/e 2(siti(n ;e.*1se its t%e

this is %our first time creating a compan% file' If %ou go this route? QuickBooks holds %our hand and asks for a fe# !its of info at a time !efore moving to each ne# screen' If %ou stop filling in information !efore QuickBooks creates %our compan% file? the program #on=t save an% of the values %ou entered' 8o make sure %ou have at least 1 minutes to complete the first set of steps' Instructions for .0press 8tart !egin !elo#'

V * vance $etu&@ If %ou=ve !een around the QuickBooks !lock !efore? choose this option to launch the .as%8tep Intervie# #indo#? #hich asks for more information on each screen than .0press 8tart does' If %ou need help during the process? %ou can al#a%s click the +@et ans#ers/ link at the top right of the #indo#' Nou can also use :dvanced 8etup to go !ack and modif% info %ou entered previousl%? #hether %ou entered it using .0press 8tart or the .as%8tep Intervie#' "The instructions for the .as%8tep Intervie# !egin on page 1&' If %ou=re unsure #hat to put in an% of the fields %ou=re supposed to fill in? the%=re descri!ed in the .0press 8tart section? !ecause %ou fill in much of the same information regardless of #hich approach %ou use'$ V 4ther 4&tions@ This !utton covers the rest of the !ases' Nou can use it to open an e0isting compan% file or to convert e0isting records that are in Quicken or another accounting program "page 20$ for use in QuickBooks'

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If %ou use QuickBooks :ccountant .dition? %ou can create a compan% file from an e0isting file' 4hoose 5ileM+Be# 4ompan% from .0isting 4ompan% 5ile'/ Jhether %ou use .0press 8tart or the .as%8tep Intervie#? %ou tell QuickBooks the !asic 411 a!out %our compan%? such as its name and ta0 IQ' "If an% of the fields confuse %ou? tr% clicking the +Beed helpG @ive us a call/ !utton in the QuickBooks 8etup dialog !o0 or the +@et ans#ers/ link in the upper*right corner of the .as%8tep Intervie# #indo#'$ The ne0t section provides the full scoop on the information %ou need to provide'

%sing E"&ress $tart


:s its name implies? .0press 8tart gets %ou going as )uickl% as possi!le !% asking for the minimum amount of info "%ou can fill in the details later$' To use it? choose 5ileMBe# 4ompan% and then? in the QuickBooks 8etup dialog !o0? click .0press 8tart' The +Tell us a!out %our !usiness/ screen appears? and %ou can start entering info' The follo#ing sections e0plain #hat the program needs to kno# to create %our compan% file' !4M6*>8 #>F4RM*T#4> <n the +Tell us a!out %our !usiness/ screen? sho#n in 5igure 1*&? %ou need to cough up onl% three ans#ers? !ut these responses are the foundation of man% of the pref* erences that QuickBooks sets:

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Nou might see a screen !efore the +Tell us a!out %our !usiness/ one that asks for %our email address? #hich QuickBooks associates #ith %our compan% file' If %ou alread% have an Intuit account set up? the screen also asks for %our pass#ord' The check!o0 #ith the la!el that starts +8et up m% compan% file locall% and on Intuit=s servers/ is turned on initiall%? #hich means that QuickBooks stores %our compan% file !oth on %our computer and on Intuit=s servers' If %ou use an% :pp 4enter applications "page IE $? keep this check!o0 turned on so those applications can access the s%nchroniKed online cop% of %our compan% file' If %ou don=t use :pp 4enter applica* tions? turn this check!o0 off' Then click 4ontinue to proceed to the +Tell us a!out %our !usiness/ screen? #hich is covered in the follo#ing sections' V !o'&any >a'e@ T%pe the name %ou #ant to appear on invoices? reports? and other forms' Pater on? %ou can specif% %our compan%=s legal name "page 12$' V #n ustry@ 8tart t%ping %our industr% in this !o0 and see if QuickBooks finds a match' If not? click +Aelp me choose/ to the right of this field to see all %our op* tions' If %ou don=t see an o!vious choice in the Industr% list? scroll to the !ottom and choose either @eneral ,roduct*!ased Business or @eneral 8ervice*!ased Business' 4hoose %our industr% carefull%' Based on %our choice? QuickBooks ad2usts its preferences and chart of accounts to match ho# %our !usiness operates' 5or e0ample? the program creates income and e0pense accounts for %our t%pe of !usiness and automaticall% turns on features like sales ta0 and inventor% if %our industr% t%picall% uses them' If QuickBooks makes assumptions %ou don=t like? %ou can alter %our preferences "page I&D$ and accounts "page 1$ later'

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QuickBooks= list of indus* tries is ro!ust? so chances are good %ou=ll find one that=s close to #hat %our compan% does' Nou can start t%ping an industr%? and the program #ill dis* pla% options that match #hat %ou=ve t%ped so far? such as cater to displa% the industr% +>estaurant? 4aterer? or Bar/ sho#n here' <r %ou can click the +Aelp me choose/ link to see all the industries the program offers'

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V !o'&any Ty&e@ The ta0 form %ou use depends on the t%pe of !usiness entit% %ou have' This drop*do#n list contains the most common t%pes? from sole proprietorships and partnerships to corporations and nonprofits' Jhen %ou select a t%pe? QuickBooks assigns the corresponding ta0 form to %our compan% file' :fter %ou finish creating %our compan% file? %ou can see the ta0 form the program selected !% choosing 4ompan%MM% 4ompan%? #hich !rings up the dialog !o0 sho#n in 5igure 1*C "page 2D$' The Income Ta0 5orm ;sed !o0 at the !ottom of that dialog !o0 lists the ta0 form for %our compan% t%pe' V Ta" #1 C@ This !o0 is for the federal ta0 IQ num!er %ou use #hen %ou file ta0es' Nou don=t have to enter it no#? !ut %ou=ll need it come ta0 time' Nou=ll use a federal .mplo%er Identification Bum!er ".IB$ if %our compan% is a corporation or partnership? %ou have emplo%ees? or fit a fe# other criteria "go to ###'irs' gov to see if %ou need an .IB$' <ther#ise? %our ta0 IQ is %our 8ocial 8ecurit% num!er or Individual Ta0 Identification Bum!er "ITIB$' V 1o you have e'&loyeesD The choice %ou make in this !o0 doesn=t affect the settings in %our compan% file' If this field is set to Nes "as it is initiall%$? or to +Bo? !ut I might in the future?/ then Intuit #ill tempt %ou #ith pa%roll service offers' If %ou don=t have emplo%ees or don=t #ant to receive those offers? choose Bo in the drop*do#n list' Jhen %ou finish filling out this screen? click 4ontinue' B%$#>E$$ !4>T*!T #>F4RM*T#4> Be0t? %ou can enter %our !asic contact info' If %ou=re itching to start printing and emailing invoices? !ills? and other forms? fill in the follo#ing fields: V 2egal >a'e@ This is the name %ou use on contracts and other legal documents' Nour compan% name and legal name are usuall% the same unless %ou use a QB: "doing !usiness as$ compan% name' If %ou o#n a corporation? the legal name is #hat appears on %our 4ertificate of Incorporation' V !ontact info@ .nter %our mailing address? telephone num!er? email address? and #e!site address? if %ou have one' The \ip and ,hone fields are the onl% ones that are re)uired' 4lick ,revie# Nour 8ettings to see #hich features QuickBooks selected for %ou !ased on the industr% and compan% t%pe %ou provided "5igure 1*4$' The ,revie# Nour 4ompan% 8ettings dialog !o0 lets %ou fine*tune the accounts QuickBooks selected and choose a different place to store %our compan% file' Aere=s #hat %ou can do on each ta! in this dialog !o0: V Features $electe @ This ta! is purel% informational' Nou can=t modif% the set* tings listed here? !ut once %ou=ve used QuickBooks for a #hile? %ou can change the program=s preferences "4hapter 2 $ to suit %our needs' V !hart of *ccounts@ This ta! lists accounts t%picall% used in %our industr%' The accounts that QuickBooks chose have checkmarks ne0t to their names' Nou can include or e0clude accounts in %our chart of accounts !% turning their checkmarks on or off'

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F i )%RE 194

Nou can=t use this dialog !o0 to change the features listed on the 5eatures 8elected ta!' Ao#ever? %ou can ad2ust those settings later in the ,references dialog !o0 "page I&E$' To modif% the accounts in %our compan% file or #here the file is stored? click the 4hart of :ccounts or 4ompan% 5ile Pocation ta!? respectivel%'

V !o'&any File 2ocation@ This ta! sho#s the location on %our computer #here the program plans to save %our compan% file' To choose a different spot? click 4hange Pocation and then select the folder %ou #ant' If the folder doesn=t e0ist? in the +Bro#se for 5older/ dialog !o0? click Make Be# 5older? t%pe the folder=s name? and then press .nter' To close the +Bro#se for 5older/ dialog !o0? click <6' Jhen %ou=ve made the changes %ou #ant to %our compan% settings? in the ,revie# Nour 4ompan% 8ettings dialog !o0? click <6 to return to the main QuickBooks 8etup dialog !o0' !RE*T#>) 84%R !4M6*>8 F#2E <nce ever%thing is the #a% %ou #ant it? in the main QuickBooks 8etup dialog !o0? click 4reate 4ompan% 5ile' : Jorking message !o0 appears to sho# QuickBooks= progress in creating %our file' Nou kno# it=s finished #hen the +Nou=ve got a com* pan% file] Bo# add %our info/ screen appears' If %ou have time? %ou can no# add %our customers? vendors? and emplo%eesW the products and services %ou sellW and %our !ank accounts' To learn ho# to do these tasks? 2ump to +Beginning to ;se QuickBooks/ on page 1E'

%sing the Easy$te& #ntervie<


The .as%8tep Intervie# also guides %ou through the setup process? !ut it gives %ou more control over setting up %our compan% file than .0press 8tart does' 5or e0ample? %ou can provide more info a!out %our compan% up front and choose #hich features to turn on'

CHA5teR 1: CREATING A

1#

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T( *..ess t%e E*s< te2 Inte&vie=+ .%((se !i/e>Ne= C(32*n<

QuickBooks 8etup dialog !o0? click :dvanced 8etup' The +.nter %our compan% information/ screen appears' :s %ou enter the follo#ing info? click Be0t to proceed to each ne# screen: V >a'e an contact info@ The first screen #ants to kno# the name of %our com* pan%? its legal name? its ta0 IQ? and %our contact info' The +4ompan% name/ field is the onl% one that=s re)uiredU%ou can fill in the other fields later on as descri!ed on page 2I' V #n ustry@ <n the +8elect %our industr%/ screen? choose the industr% closest to %ours' That #a%? most of the settings the program chooses #ill !e #hat %ou #ant' V Ty&e of co'&any@ <n the +Ao# is %our compan% organiKedG/ screen? select the option for %our compan% t%pe' This setting determines #hich ta0 form? accounts? and ta0 form lines %ou=ll use to prepare %our !usiness ta0 return'

V First 'onth of fiscal year@ Jhen %ou start a compan%? %ou choose a fiscal %ear' <n the +8elect the first month of %our fiscal %ear/ screen? QuickBooks automaticall% sets the +M% fiscal %ear starts in/ !o0 to Oanuar% !ecause so man% !usinesses stick #ith the calendar %ear for simplicit%' If %ou start %our fiscal %ear in another month? choose it from the drop*do#n list' V * 'inistrator &ass<or @ The administrator can do a!solutel% an%thing in %our compan% file: set up other users? log in as other users? and access an% area of the compan% file' :lthough QuickBooks lets %ou click Be0t and skip right past the +8et up %our administrator pass#ord/ screen? this is no time for shortcuts? as the !o0 on page 1 e0plains' T%pe the pass#ord %ou #ant to use in !oth the +:dministrator pass#ord/ and +>et%pe pass#ord/ !o0es? and then keep the pass#ord in a safe !ut memora!le place' ",age D2I e0plains ho# to change the administrator name and pass#ord'$

!RE*T#>) 84%R !4M6*>8 F#2E :fter %ou set the administrator pass#ord and click Be0t? the +4reate %our compan% file/ screen appears' "If %ou=re ne# to QuickBooks? click the +Jhere should I save m% compan% fileG/ link? #hich opens a Aelp :rticle dialog !o0 that e0plains the pros and cons of storing compan% files in different places'$ Jhen %ou=re read% to create the file? on the +4reate %our compan% screen?/ click Be0t to #rap up the compan% file creation process !% specif%ing the filename and location' QuickBooks opens the +5ilename for Be# 4ompan%/ dialog !o0? #hich is reall% 2ust a 8ave :s dialog !o0' Bavigate to the folder #here %ou #ant to store %our compan% file' QuickBooks automaticall% sets the +5ile name/ !o0 to the compan% name %ou entered? and the +8ave as t%pe/ !o0 to +QuickBooks 5iles "^'QBJ? ^'QB:$'/ Aere are some guidelines for naming and saving %our compan% file: V If %ou #ant to call the file something other than the compan% name %ou entered earlier in the intervie#? simpl% t%pe a ne# name in the +5ile name/ !o0' 5or e0* ample? %ou ma% #ant one that=s shorter or that !etter identifies the compan%=s records #ithin'

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%6 T4 $6EE1

8afe Pogin ,ractices


Qon=t even think a!out having ever%one #ho #orks #ith a compan% file share one login' Nou don=t #ant ever%one to have access to pa%roll data? and %ou #ouldn=t kno# #hich person to fire if %ou found an% less*than*legal transactions in the file' .ven if %ou run a small !usiness from home? an administrator pass#ord prevents the chimne% s#eep from s#iping %our !usiness credit card num!er' 4hapter 2E has much more a!out keeping %our QuickBooks files secure? !ut here are some pass#ord !asics: V 4hoose a pass#ord that=s at least eight characters long and is a com!ination of letters and num!ers' V ,as s#ords are case sensitive? so make sure that 4aps Pock isn=t turned on !% mistake' V T%pe the pass#ord in !oth the +:dministrator pass#ord/ and +>et%pe pass#ord/ !o0es' If %ou cop% and paste the pass#ord from one !o0 to the other? %ou could cop% a t%po and not !e a!le to open the compan% file %ou 2ust created' If %ou forget the administrator login and pass#ord or lose the piece of paper the%=re #ritten on? %ou #on=t !e a!le to open %our compan% file #ithout some fanc% foot#ork? so keep a record of them someplace safe' If %ou=ve tried ever%thing and %our administrator pass#ord is still missing in action? see page D2E to learn ho# to reset it'

V 4onsider storing %our compan% file in a folder #ith the rest of %our compan% data so that it gets !acked up along #ith ever%thing else' 5or e0ample? if %ou=re the onl% person #ho uses QuickBooks? %ou could create a 4ompan% 5iles folder inside %our M% Qocuments folder' 8ee page D4E for more a!out choosing a location for compan% files' Jhen %ou click 8ave in the +5ilename for Be# 4ompan%/ dialog !o0? QuickBooks ma% take a minute or so to create the ne# file' In the meantime? a message !o0 #ith a progress !ar appears' Jhen the compan% file is read%? the +4ustomiKing QuickBooks for %our !usiness/ screen appears' 4lick Be0t to dig in'
T#6

:t this point? the progress !ar in the left margin of the .as%8tep Intervie# #indo# is depressingl% short !ecause %ou still have to do the !ulk of the compan% file setup' If %ou need a !reak !efore continuing? click Peave at the !ottom of the #indo#' The ne0t time %ou open that compan% file? the .as%8tep Intervie# continues #here %ou left off' !%$T4M#E#>) 84%R !4M6*>8 F#2E 4lick Be0t on the +4ustomiKing QuickBooks for %our !usiness screen/ to see a series of .as%8tep Intervie# screens that ask )uestions a!out %our !usiness to help Quick* Books decide #hich features to turn on? #hat to include on %our QuickBooks Aome page? and so on' The intervie# displa%s +"recommended for %our !usiness$/ ne0t to the options that are t%pical for a compan% in %our industr%? as sho#n in 5igure 1* '

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16

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F i )%RE 195

The .as%8tep Intervie# sticks to the !asics? so %ou=ll have more setup to do later' :s %ou step through the screens in this section? make a list of the features %ou=re turning on "and the correspond* ing page num!ers in this !ook$ for reference' If %ou decide to change an% of these settings later? 4hapter 2 tells %ou ho#'

Aere are some guidelines for ans#ering the )uestions on the various screens: V The ;hat o you sellD screen is #here %ou tell QuickBooks #hether %ou offer services? products? or !oth' Jhen %ou choose one of these options? the program figures out #hich t%pes of income accounts %ou need' If %ou select +,roducts onl%/ or +Both services and products?/ another screen later in the intervie# asks #hether %ou #ant to track inventor%' V The 1o you charge sales ta"D screen has onl% t#o options: Nes and Bo' If %ou=re one of the unfortunate souls #ho has to navigate the rock% shoals of sales ta0? select Nes' If %ou don=t charge sales ta0? select Bo' 5or detailed instructions on dealing #ith sales ta0 in QuickBooks? see page '

V <n the 1o you <ant to create esti'ates in QuickBooksD screen? choose Nes or Bo to turn the estimate feature on or off' If %ou prepare )uotes? !ids? or estimates for %our customers and #ant to do so in QuickBooks "page 2 E$? select Nes'
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If %ou use QuickBooks ,remier? the +Tracking customer orders in QuickBooks/ screen appears? asking #hether %ou #ant to use sales orders to track !ackorders "page 2 4$ or other orders that %ou plan to fill at a later date' QuickBooks ,ro doesn=t include this sales order feature' V The %sing state'ents in QuickBooks screen is #here %ou tell the program #hether %ou generate statements to send to customers "page 2DD$' 5or e0ample? %our #ine*of*the*month clu! might send monthl% statements to its mem!ers' <r a consultant could send invoices for #ork performed and then send a statement that summariKes the fees? pa%ments? and outstanding !alance'

: T%e Usin, inv(i.es in Q1i.0B((0s s.&een *22e*&s (n/< i? <(1

+Qo %ou #ant to create estimates in QuickBooksG/ screen' "If %ou chose Nes on that screen? QuickBooks automaticall% turns on the invoicing feature'$ 8elect Nes to tell the program that %ou #ant to use invoices? #hich %ou pro!a!l% do !ecause invoices are the most fle0i!le sales forms "page 212$' If %ou ans#er Bo "if? for e0ample? %ou o#n a restaurant$? QuickBooks 2umps to the +Managing !ills %ou o#e/ screen' If %ou ans#er Nes on the +;sing invoices in QuickBooks/ screen? the %sing &rogress invoicing screen asks #hether %ou invoice customers !ased on the percentage %ou=ve completed on a 2o!' To learn #h% "and ho#$ %ou might use this feature? see page 2I4'

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V The Managing .ills you o<e screen asks #hether %ou plan to #rite checks to pa% !ills immediatel% "select Bo$ or enter !ills in QuickBooks and then pa% them later "select Nes$' Nou can read a!out !ill preferences on page I42 and pa%ment preferences on page II0'
T#6

.ntering !ills in QuickBooks "page 1DI$ re)uires more steps than simpl% #riting checks #ithout entering the !ills in QuickBooks? !ut there=s a !enefit to the e0tra effort: The program can remind %ou #hen !ills are due or )ualif% for timel% pa%ment discounts? and it can keep track of the total %ou o#e' V The Tracking inventory in QuickBooks screen is #here %ou tell the program #hether %ou keep track of the products %ou have in stock' This screen provides a fe# e0amples of #hen to track or !%pass inventor%? and page C has more a!out ho# to decide #hether tracking inventor% makes sense for %our !usiness' V Tracking ti'e in QuickBooks is ideal if %ou !ill !% the hour or pa% people !ased on the num!er of hours the% #ork' In that case? select Nes on this screen to track the hours people #ork and create invoices for their time' 4hapter E e0plains ho# to set up time tracking'

V The 1o you have e'&loyeesD screen is #here %ou specif% #hether %ou #ant to use QuickBooks= pa%roll and 10CC features' If %ou do? select Nes and turn on the appropriate check!o0"es$' If %ou use non*Intuit services to run pa%roll or generate contractors= 10CCs? select Bo' Jhen %ou click Be0t on the +Qo %ou have emplo%eesG/ screen? %ou see the +;sing accounts in QuickBooks/ screen? and the progress !ar indicates that %ou=re almost done #ith the intervie#' 4lick Be0t to set these final options: V The $elect a ate to start tracking your finances screen summariKes #hat %ou learned a!out start dates on page ' To start at the !eginning of this fiscal %ear "#hich QuickBooks can figure out using the current calendar %ear and the starting month %ou select$? choose the +Beginning of this fiscal %ear: 01(01(14/ option' "The %ear %ou see listed depends on the current calendar %ear'$ If %ou=ve decided to start on a different date? select the +;se toda%=s date or the first da%

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of the )uarter or month/ option instead' Nou can then t%pe or choose an% date %ou #ant in the !o0? such as the last da% of the previous fiscal period' V The Revie< inco'e an e"&ense accounts screen lists the accounts t%picall% used !% companies in %our industr%? as sho#n in 5igure 1*I'

F i )%RE 190

QuickBooks places a checkmark in front of the accounts that are t%pical for %our industr%' 4lick an empt% checkmark cell to add an account that the program didn=t select? or click a cell #ith a check* mark to turn that account off' Nou can also drag %our cursor over checkmark cells to turn several ac* counts on or off'

Jhen %ou click Be0t? %ou see a !right orange? !ut premature? +4ongratulations]/ Nou still have a fe# more steps to complete !efore %ou can open %our compan% file' 4lick +@o to 8etup/ and then read the ne0t section'

Beginning to %se QuickBooks


:fter %ou create %our compan% file #ith .0press 8tart or the .as%8tep Intervie#? %ou=ll see the +Nou=ve got a compan% file]/ screen? #hich is #here %ou perform the additional steps %ou have to complete? such as adding people %ou do !usiness #ith? items %ou sell? and !ank accounts' If %ou #ant to dive into %our #ork #ithout QuickBooks= help on these steps? click 8tart Jorking at the #indo#=s !ottom right and 2ump to the section +8tart Jork* ing/ on page 1C' If %ou #ant step*!%*step guidance through these processes? click the :dd !uttons in these sections: V * the &eo&le you o .usiness <ith@ :dding people %ou do !usiness #ith is a snap' 4lick the first :dd !utton and %ou can import names from %our email program "<utlook? Nahoo? or @mail$? paste data from an .0cel #ork!ook? or enter info manuall%' If %ou select one of the import options and then click 4ontinue? %ou=ll see a ta!le #ith the names from %our email program? as sho#n in 5igure 1*D'

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Initiall%? QuickBooks selects the 8kip option "the far left column$ for all the names' That #a%? %ou can select the option in the 4ustomer? Lendor? or .mplo%ee column for each name %ou #ant to import to designate #hether it=s a customer? vendor? or em* plo%ee' Nou can also select a cell #ith info in it "like a name or an email address$ and edit the info'

V * the &ro ucts an services you sell@ Jhen %ou click the :dd !utton in this section? %ou first choose either the 8ervice or +Bon*inventor% part/ op* tion? !ecause %ou fill in different fields for each t%pe of item' 8elect the 8ervice option to set up services %ou sell? or select the +Bon*inventor% part/ option to create products %ou sell "see page 2& to learn a!out products %ou keep in inventor%$? and then click 4ontinue' 5ill in the names? description? and prices? and click 4ontinue again to save %our items' V * your .ank accounts@ 5or !ank accounts? %ou fill in the account name? ac* count num!er? opening !alance? and opening !alance date'
T#6

If %ou=re in the middle of entering names? products and services? or !ank accounts? and #ant to get !ack to the +Nou=ve got a compan% file]/ screen? click 4ancel' $T*RT ;4R:#>) Jhether %ou finish or skip these additional steps? click 8tart Jorking to open the Quick 8tart 4enter #indo#' Nou can click icons and links in this #indo# to open the corresponding features' 5or e0ample? click 4reate Invoices to open the 4reate Invoices #indo#' To reopen the QuickBooks 8etup dialog !o0? click +>eturn to :dd Info/ at the #indo#=s top right'

CON@ERTIN G !ROM Q;I46B<<68


If %ou=d rather perform these tasks later or #ant more control over setup? click the 4lose !utton "the R at the top*right corner of the Quick 8tart 4enter #indo#$' The !o0 on page 21 tells %ou #here to turn in this !ook for more detailed instructions on the rest of the setup %ou need' :fter %ou close the QuickBooks 8etup dialog !o0 or Quick 8tart 4enter #indo#? %ou see the QuickBooks Aome page "page &4$? #hich includes icons for the features that QuickBooks turned on during setup'
>4TE T#6

Nou ma% also see the QuickBooks Pearning 4enter #indo#? #hich includes links to tutorials "page D $' "Nou can open this #indo# an% time !% choosing AelpMPearning 4enter Tutorials'$ In the #indo#? click a link "!lue te0t$ to #atch a video on that topic' RE46E>#>) THE Q%#!:B44:$ $ET%6 1#*24) B4F :s %ou=ve learned in the previous sections? the QuickBooks 8etup dialog !o0 offers shortcuts for adding info to %our compan% file' If %our data*entr% session #as cut short !% other pressing tasks? %ou can 2ump !ack to this dialog !o0 later to finish the 2o!' Aere=s ho#: 1' !hoose Hel&MQuick $tart !enter@ *t the to& right of the Quick $tart !enter <in o<, click GReturn to * #nfo@H The QuickBooks 8etup dialog !o0 opens to the +Nou=ve got a compan% file]/ screen' 2' !lick the * .utton for the ty&e of info you <ant to enter an then Iu'& .ack to the instructions on &age 17@ Jhen %ou=re done? click the 4lose !utton "the R$ at the top right of the QuickBooks 8etup dialog !o0 to close it and get to #ork'

4onverting from :nother ,rogram to QuickBooks


If %ou launched %our small !usiness from %our !asement and kept %our records #ith Quicken Aome - Business? %our accountant has pro!a!l% recommended that %ou make the leap to QuickBooks' <n the other hand? %ou ma% have used another accounting program like ,eachtree or 8mall Business :ccounting and have decided to move to QuickBooks' <r perhaps %ou=re s#itching from QuickBooks for Mac to QuickBooks for Jindo#s' Jhatever %our situation? this section tells %ou ho# to prep %our file for a smooth conversion and !ring it over into QuickBooks for Jindo#s'

CON@ERTIN G
,><@>:M T< Q;I46B<<68
FREQ%E>T28 *$:E1 Q%E$T#4>

Jhat=s Be0tG
Bo# that I=ve created m% compan% file? #hat do I do ne0tG Jhether %ou used .0press 8tart or the .as%8tep Intervie#? )uite a !it of the setup process is complete? !ut %ou aren=t )uite done' If %ou need guidance for the rest? look no further than the !ook in %our hands' Aere are the #a%s %ou can flesh out %our compan% file: V $et u& your users an &ass<or s@ 8ee +4reating Quick* Books ;sers/ on page D&0' V Revie< an Jor change the &references that QuickBooks set@ 8ee 4hapter 2 ' V $et u& or e it the accounts in your chart of accounts@ If %ou haven=t set up all %our accounts %et? %ou can create them no#' 8ee +4reating :ccounts and 8u!accounts/ on page 1' V !reate a Iournal entry to s&ecify accountsB o&ening .alances@ 8ee the !o0 on page 4&C to learn ho#' :nd see page 44 to learn ho# to record %our initial contri!ution of cash or assets to %our compan%' V !reate ite's for the &ro ucts an services you sell@ 8ee 4hapter ' V $et u& sales ta" co es@ 8ee 4hapter 21' V $et u& your 10++ tracking@ 8ee +10CCs/ on page 4DI' V $ign u& for #ntuit 6ayroll $ervice@ 8ee +Intuit ,a%roll 8ervices/ on page &CD'

!onverting fro' Quicken Ho'e A Business


Quicken doesn=t report %our !usiness performance in the #a% that most accountants #ant to see? nor does it store %our !usiness transactions the #a% QuickBooks does' Bottom line: Nou have to prep %our Quicken file !efore %ou convert it to QuickBooks' !2E*>#>) %6 84%R Q%#!:E> F#2E To make the conversion proceed as smoothl% as possi!le? some cleanup of %our Quicken file is in order' 5or e0ample? record overdue scheduled transactions and send online pa%ments !efore %ou convert %our Quicken file' :lso? in Quicken? delete accounts %ou no longer need? !ecause once the%=re in QuickBooks? %ou can=t delete them if the% contain an% transactions' :nd make sure that customer names are consistent and uni)ue' QuickBooks doesn=t support repeating online pa%ments? so %ou also have to tell Quicken to delete an% repeating online pa%ments %ou=ve set up' In addition? %ou need complete reports of %our past pa%rolls !ecause Quicken pa%roll transactions don=t convert to QuickBooks' Intuit pu!lishes a detailed guide to help %ou prepare for a Quicken conversion' @o to http:((tin%url'com(2afDE) and follo# the instructions there' !4>/ERT#>) 84%R Q%#!:E> F#2E Jhen %our Quicken file is read% for conversion to QuickBooks? %ou have t#o op* tions in QuickBooks: V !hoose FileM>e< !o'&any@ In the QuickBooks 8etup dialog !o0? click <ther <ptions? and then choose 4onvert Quicken Qata'

CON@ERTIN G !ROM Q;I46B<<68 : C%((se !i/e>Uti/ities>C(nve&t>!&(3


>4TE

If %ou cleaned up %our Quicken file !ut %ou run into conversion pro!lems in QuickBooks? check the QuickBooks compan% file for errors !% choosing 5ileM;tilitiesMLerif% Qata? as descri!ed on page 14' :nother potential solution is to remove transactions prior to the current fiscal %ear in Quicken !efore converting the file' If nothing %ou tr% #orks and %ou=re #illing to send %our Quicken file to Intuit? contact QuickBooks technical support !% choosing AelpM8upport' ": !ro#ser #indo# opens to the Intuit QuickBooks 8upport page' In the horiKontal navigation !ar? click 4ontact ;s'$ QuickBooks ma% agree to convert the file for %ou "for a fee$' F#>E9T%>#>) 84%R !4>/ERTE1 Q%#!:E> 1*T* Bo# that %our Quicken data is resting comforta!l% in a QuickBooks file? %ou might think %ou=re read% to start using QuickBooks' Ao#ever? there are a fe# more post* conversion steps %ou should take to get %our ne#l% minted compan% file into shape' Aere are the other t#eaks %ou might need to make to %our QuickBooks compan% file: V Enter your co'&any infor'ation in QuickBooks@ Info like %our compan%=s legal name and address? federal .mplo%er Identification Bum!er? and !usiness t%pe don=t come over #ith %our Quicken data' 8ee +Modif%ing 4ompan% Info/ on page 2I to learn ho# to add those values to %our compan% file' V $et u& your .ank fee s in QuickBooks@ ,age I1 tells %ou ho# to get %our QuickBooks !ank accounts and %our real*#orld !ank accounts talking' V !hange Quicken na'es to QuickBooks custo'ers, ven ors, an e'&loy9 ees@ Jhen %ou convert from Quicken to QuickBooks? QuickBooks adds all the converted names to its <ther Bames Pist' 8ee page 141 to learn ho# to move these names to other lists'
T#6

If %our Quicken data file has tons of names? an eas% #a% to convert them is to e0port them to a spreadsheet and then import them using QuickBooks= :dd(.dit Multiple Pist .ntries feature "page 11E$' V $et u& *ccounts 6aya.le in QuickBooks@ If %our Quicken file contained unpaid !ills? simpl% #rite checks "page 1C&$ to pa% them in QuickBooks' <nce %our vendor !alances are Kero? enter ne# !ills in QuickBooks' Jhen %ou record %our first !ill? the program automaticall% adds a ne# account called :ccounts ,a%a!le to %our chart of accounts'

!onverting fro' QuickBooks for Macintosh


Moving a file from QuickBooks for Mac to QuickBooks for Jindo#s is mainl% a!out getting the file into a QuickBooks for Jindo#s format' To do that? simpl% create a !ackup of the file in QuickBooks for Mac and then restore that !ackup "page 0E$ in QuickBooks for Jindo#s'

!onverting fro' a >on9#ntuit 6rogra'


To convert files created in other accounting programs? like ,eachtree or 8mall Busi* ness :ccounting? %ou have to do#nload a conversion tool from the Intuit #e!site'

In QuickBooks? choose 5ileM;tilitiesM4onvert and then choose the program %ou #ant to convert from' In the !ro#ser #indo# that opens? fill in the !o0es for %our name? compan% name? and email address? and then click 8u!mit'

<,.BIB@ :B .RI8TIB@ 4<M,:BN 5IP.

<pening an .0isting 4ompan% 5ile


:fter %ou=ve opened a compan% file in one QuickBooks session? the ne0t time %ou launch the program? it opens that same compan% file automaticall%' If %ou keep the !ooks for onl% one compan%? %ou might never have to manuall% open a QuickBooks compan% file again' But if %ou=re an irrepressi!le entrepreneur or a !ookkeeper #ho #orks on several companies= !ooks? %ou can open another compan% file in QuickBooks an%time %ou #ant? and the program automaticall% closes the previous one' "Because QuickBooks stores data in a data!ase? %ou don=t have to save a compan% file !efore %ou close it' :nd if %ou use QuickBooks :ccountant edition? %ou can have t#o compan% files open at the same time? as the Tip !elo# e0plains'$ The follo#ing sections descri!e the different #a%s to open a compan% file'
T#6

Jith QuickBooks :ccountant and QuickBooks .nterprise? %ou can have t#o compan% files open at the same time' 4hoose 5ileM<pen 8econd 4ompan%? and %our computer launches a ne# instance of QuickBooks' In the ne# #indo#? dou!le*click the name of the file %ou #ant to open' The second compan% file opens #ith the te0t +"8econdar%$/ after the compan% name in the QuickBooks #indo#=s title !ar' "The te0t +",rimar%$/ follo#s the compan% name in the first QuickBooks #indo#'$ There are some restrictions #hen %ou open t#o files? mostl% on the secondar% file' To learn a!out these restrictions? search QuickBooks Aelp for +second compan%'/

4&ening a Recently 4&ene

!o'&any File

If %ou #ork on more than one compan% file? %ou ma% fre)uentl% s#itch !et#een them' The easiest #a% to open a recent file is to choose 5ileM<pen ,revious 4om* pan%? and then choose the file %ou #ant to open? as sho#n in 5igure 1*E' If the <pen ,revious 4ompan% su!menu doesn=t list the file %ou #ant? follo# the steps in the ne0t section instead'

4&ening *ny !o'&any File


8ometimes? a compan% file %ou #ant to open falls off the recent*file list' "The !o0 on page 2 e0plains ho# to tell QuickBooks ho# man% files to include on the 5ileM<pen ,revious 4ompan% su!menu'$ 8a% %our !ookkeeping !usiness is !ooming and %ou #ork on doKens of compan% files ever% month' <r ma%!e %ou #ant to update a file from a previous version of QuickBooks "see the !o0 on page 2I$' Aere=s ho# to open an% compan% file? no matter ho# long it=s !een since %ou last used it: 1' !hoose FileMG4&en or Restore !o'&any@H If the Bo 4ompan% <pen #indo# is visi!le? %ou can click +<pen or restore an e0isting compan%/ instead'

<,.BIB@ :B .RI8TIB@ 4<M,:BN 5IP.

F i )%RE 197

To open a compan% file %ou=ve #orked on recentl%? click it in the <pen ,revi* ous 4ompan% su!menu' If the Bo 4ompan% <pen #indo# "not sho#n here$ is visi!le? %ou can open a recent file !% dou!le* clicking its filename in that #indo#=s list' "<pening a sample file is the onl% task the Bo 4ompan% <pen #indo# performs that %ou can=t also perform via the 5ile menu'$

2' #n the G4&en or Restore !o'&anyH ialog .o", select the G4&en a co'&any fileH o&tion, an then click >e"t@ The +<pen a 4ompan%/ dialog !o0 appears' &' >avigate to the fol er <ith the co'&any file you <ant an the fileBs na'e@ Nou can also click the filename and then click <pen' 4' #f the QuickBooks 2ogin <in o< a&&ears K<hich it <ill if youBve assigne a &ass<or to the * 'inistrator user account or set u& 'ulti&le usersL, ty&e your user na'e an &ass<or @ If the :dministrator is the onl% user? the ,ass#ord !o0 is the onl% one that ap* pears' But if %ou have more than one user for the compan% file? !oth the ;ser Bame and ,ass#ord !o0es appear' ' !lick 4:@ QuickBooks opens the compan% file? and %ou=re read% to keep the !ooks' ou.le9click

>4TE

Backup files are the ans#er to the adrenaline rush %ou get #hen %ou do something dum! #ith %our compan% file? #hen %our hard drive crashes? or #hen a plume of smoke #afts up from %our computer' To learn ho# to create or restore !ackup files? see page 02 or page 0E? respectivel%'

O5ENING AN 4<M,:BN 5IP.

4R)*>#E*T#4> $T*T#4>

5ast :ccess to 8everal 4ompanies


If %ou #ork on several sets of compan% !ooks at the same time? choosing 5ileM<pen ,revious 4ompan% is the )uickest #a% to hop !et#een compan% files' <ut of the !o0? QuickBooks lists up to four companies on the <pen ,revious 4ompan% su!menu' If %ou #ork #ith fe#er companies? the su!menu ma% have compan% files that %ou=d rather forget' Nou can change the num!er of companies QuickBooks lists in this su!menu to match the num!er of companies %ou #ork #ith' Jith a clever #orkaround? %ou can also clear out old entries that %ou don=t #ant to see' Aere=s ho# to change the num!er of companies on the <pen ,revious 4ompan% su!menu: 1 ' M a ke s u re %o u h ave a co m p a n% f il e o p e n ? a n d th e n choose 5ileM<pen ,revious 4ompan%M+8et num!er of previous companies'/ 2' In the +8et Bum!er of ,revious 4ompanies/ dialog !o0? t%pe the ma0imum num!er of companies %ou #ant to see on the su!menu? and then click <6' QuickBooks can sho# up to 20? #hich it lists starting #ith the most recent' &' To clear old entries off the menu? change the num!er of entries to 1 and then click <6' :fter %ou do so? QuickBooks lists onl% the most recent compan% file? clearing all the others off the list' 4' If %ou #ant to see more than one compan%? reset the num!er of entries again? this time to a higher num!er' Bo#? #hen %ou open another compan% file? it #ill appear on the list'

4&ening a 6orta.le !o'&any File


: porta!le file is a special t%pe of file that makes QuickBooks compan% files compact so %ou can email them more easil%' <pening a porta!le file is similar to opening a regular file: 1' !hoose FileMG4&en or Restore !o'&any@H The +<pen or >estore 4ompan%/ dialog !o0 opens' 2' $elect the GRestore a &orta.le fileH o&tion an then click >e"t@ The <pen ,orta!le 4ompan% 5ile dialog !o0 appears' QuickBooks automati* call% changes the +5iles of t%pe/ !o0 to +QuickBooks ,orta!le 4ompan% 5iles "^'QBM$'/ &' >avigate to the fol er <ith the &orta.le file an QuickBooks opens the file' ou.le9click its na'e@

MODI!$ING
FREQ%E>T28 *$:E1 Q%E$T#4>

;pdating a QuickBooks 5ile


Ao# do I update a compan% file to the ne#est version of QuickBooksG If %ou=ve used a previous version of QuickBooks? %our compan% file is set up to #ork #ith that version of the program' Jhen %ou upgrade to QuickBooks 2014? the program has to make some changes to %our compan% file' <nce %ou update a compan% file? %our co#orkers #on=t !e a!le to open it until %ou install QuickBooks 2014 on their computers' 8o to prevent #ork disruptions? plan to upgrade all copies of QuickBooks and the compan% file during do#ntime' 5ortunatel%? updating a compan% file is eas%: :ll %ou have to do is open it in the ne# version of QuickBooks and follo# the onscreen instructions' Aere are the steps: 1' In %our ne# version of QuickBooks? choose 5ileM+<pen or >estore 4ompan%'/ 2' In the +<pen or >estore 4ompan%/ dialog !o0? select the +<pen a compan% file/ option? and then click Be0t' &' In the +<pen a 4ompan%/ dialog !o0? dou!le*click the compan% file %ou #ant to update' If %ou see the ;ser Bame and ,ass#ord !o0? enter %our user name and pass#ord' 4' In the +;pdate 4ompan% 5ile for Be# Lersion/ dialog !o0? turn on the +I understand that m% compan% file #ill !e updated to this ne# version of QuickBooks/ check!o0? and then click ;pdate Bo#' ' 4lick <6 to create a !ackup !efore %ou upgrade' 5ollo# the steps to create a !ackup cop% of %our compan% file "page 02$' I' Jhen the ;pdate 4ompan% message !o0 appears? click Nes to start the update' 6eep in mind that this process could take a #hile if %our compan% file is large or if %ou=re updating from several QuickBooks versions !ack'

Modif%ing 4ompan% Info


In .0press 8tart and the .as%8tep Intervie#? QuickBooks gets the !asic facts a!out %our compan% in small chunks spread over several screens' But after %ou create %our compan% file? %ou can easil% vie# and edit an% of this information' Aere=s ho#: 1' !hoose !o'&anyMMy !o'&any@ *lternatively, click the My !o'&any entry in the left icon .ar or the to& icon .ar@ The M% 4ompan% dialog !o0 "ne# in QuickBooks 2014$ opens' :s sho#n in 5igure 1*C "!ackground$? info a!out %our cop% of QuickBooks appears on the dialog !o0=s left? #hereas %our compan% info is on the right' :pps? services? and su!scriptions that %ou=ve signed up for "like accepting credit cards? pa%roll? and so on$ appear !elo# %our compan% info' <ther products that Intuit #ould like to sell %ou appear at the !ottom of the dialog !o0' 2' To e it your co'&any info, click the e it icon at the Kit looks like a &encilL@ ialog .o"Bs to& right

The 4ompan% Information dialog !o0 opens' ;nlike in QuickBooks 201& and earlier versions? this dialog !o0 no# groups compan% information on several ta!s'

F i )%RE 19+

8ome !its of compan% information change more often than others' 5or instance? %ou might relo* cate %our office or change %our phone num!er? email address? or #e!site address' But stuff like %our compan%=s legal name and address? federal .mplo%er Identification Bum!er? and !usiness t%pe "corpora* tion? sole proprietorship? and so on$ usuall% sta%s the same'

&' To e it your co'&anyBs contact info, click the !ontact #nfor'ation ta. on the left, an then 'ake the changes you <ant@ This ta! includes fields for %our compan% address? phone num!er? email ad* dress? and #e!site' 4' To change your co'&anyBs legal na'e an a 'ation ta.@ ress, click the 2egal #nfor9

>emem!er? %our compan%=s legal name and address are the ones %ou use on federal and state ta0 forms' ' To e it the ta" i entification nu'.er you use, click the !o'&any # entifi9 cation ta.@ This ta! includes the federal .mplo%ee Identification Bum!er ".IB$ and 8ocial 8ecurit% Bum!er "88B$ fields' 5ill in "or edit$ the one that %ou use for %our compan%' I' To s&ecify info for re&orts you generate, click the Re&ort #nfor'ation ta.@ Nou can specif% the starting month for !oth %our fiscal %ear and ta0 %ear' In addi* tion? this ta! is #here %ou set the ta0 form %ou use for %our compan% ta0 return'

MODI!$ING

8' I? <(1 %*ve 2*<&(//+ ./i.0 t%e 5*<&(// T*x !(&3 In?(&3*ti(n t*;+ *n) t%en
Nou can fill in the name? title? and phone num!er for the person #ho prepares and signs %our compan% pa%roll forms? so QuickBooks can fill those fields in automaticall% #hen %ou use an Intuit pa%roll service' E' ;hen youBre one e iting, click 4:@ The 4ompan% Information dialog !o0 closes' Then click the R at the top right of the M% 4ompan% dialog !o0 to close it'

CHA5TER

2 @etting :round in QuickBooks

ou have more than enough to do running %our !usiness? so %ou don=t #ant !ookkeeping to take an% more time than necessar%' QuickBooks= left icon !ar and top icon !ar !oth offer shortcuts to %our favorite features' .ach icon !ar has its pros and cons? so %ou have to decide #hich one %ou prefer "or %ou can turn them off completel%$' This chapter sho#s %ou ho# to access QuickBooks= features from the menu !ar and icon !ars' Quring a rousing !ookkeeping session? %ou might end up #ith several QuickBooks #indo#s open at the same time' In this chapter? %ou learn ho# to #ork #ith all the #indo#s %ou open' If %ou prefer to focus on one task? %ou can tell QuickBooks to displa% onl% one #indo# at a time' :s its name implies? 8uperma0 vie# supersiKes a #indo# so %ou can see more info #ithout scrolling' Nou=ll learn lots of #indo# tricks in this chapter' :nother #a% to get %our accounting done )uickl% and efficientl% is !% accessing fea* tures via the QuickBooks Aome page' The page not onl% provides a visual roadmap of the !ookkeeping tasks %ou perform regularl%? !ut it also gives %ou )uick access to tasks and information related to vendors? customers? and emplo%ees? along #ith the features and overall financial info %ou use most often' 4lick an icon? and the corresponding #indo# or dialog !o0 appears? such as 4hart of :ccounts? Item Pist? Jrite 4hecks? or ever%one=s favoriteUMake Qeposits' This chapter e0plains ho# to use the #orkflo# icons on the Aome page? as #ell as the Lendor? 4ustomer? and .mplo%ees 4enters that open #hen %ou click the corresponding !uttons in the Aome page=s panels' "The Inventor% 4enter? #hich is availa!le in QuickBooks ,remier and .nterprise? is descri!ed on page 44'$ Nou=ll also see ho# to revie# %our compan%=s finances in the 4ompan% 8napshot #indo#'

29

TA. I4<B B:>8

MENU

Menus and the Icon Bars


The menu !ar at the ver% top of the QuickBooks #indo# "5igure 2*1$ is a convenient #a% to launch different activities' It=s hand% !ecause it=s al#a%s visi!le and serves up ever% feature QuickBooks has to offer'

F i )%RE 291

.ver% feature in Quick* Books is al#a%s #ithin reach via the menu !ar' 4hoose a top*level menu like 4ustomers "sho#n here$? and then choose an entr% from the drop*do#n menu or a su!menu' 5or one*click access to %our favorite features? use the left icon !ar "sho#n here$ or top icon !ar? !oth of #hich %ou can customiKe to include the features and reports %ou use the most "page D0E$'

Nou can use the Lie# menu to choose !et#een t#o icon !ars: the top icon !ar and the left icon !ar' The top icon !ar "Lie#MTop Icon Bar$ has !een around for %ears' It sits 2ust !elo# the menu !ar and displa%s %our favorite features as icons #ith !rief identif%ing la!els' 4lick an icon? such as Aome? 4alendar? or Bill? and the correspond* ing feature launches' If %ou haven=t graduated to a large? #idescreen monitor? this icon !ar is !oth convenient and space*saving' "If %ou reall% need more space? %ou can hide the icon !ar !% choosing Lie#MAide Icon Bar'$ The left icon !ar "Lie#MPeft Icon Bar$? sho#n in 5igure 2*2? appears the first time %ou launch QuickBooks 2014 and offers access to ever% feature QuickBooks has to offer' The categories in the middle section of this icon !ar determine #hat=s displa%ed in its top section' Aere=s #hat the entries in the middle section of the left icon !ar do:

#0

QUICKBOOKs 2014: tHe MIssInG

: M< %(&t.1ts' T%is .*te,(&<+ =%i.% *22e*&s *t t%e t(2 (? t%e /e?t i.(n ;*& =%eneve& <(1 /*1n.% Q1i.0B((0s+ is * ,&e*t =*< t(

MENU AND

#ithin eas% reach' This categor% includes features that most people use fre* )uentl%' But %ou can customiKe it to add other features %ou use all the time and get rid of shortcuts %ou don=t use simpl% !% right*clicking an%#here #ithin the M% 8hortcuts section "e0cept on the M% 8hortcuts heading$? and then clicking 4ustomiKe 8hortcuts'

F i )%RE 292

The left icon !ar includes three sections that help %ou access %our favorite features' The unla!eled middle section contains categories like M% 8hortcuts and Lie# Balances' Jhen %ou click an option in this section? the top section displa%s the entries for that categor%? like the shortcuts sho#n here' The !ottom section contains links to other products and services that Intuit offers? such as pa%roll? pa%ment solutions? and so on'

>4TE

The shortcuts in the M% 8hortcuts list are the same ones %ou see as icons if %ou displa% the top

icon !ar'

CHA5teR 2: GETTING AROUND IN

#1

:M<B@ <,.B JIBQ<J8

WITCHIN

V /ie< Balances@ Jhen %ou use the left icon !ar? the Aome page doesn=t displa% account !alances on the right side as it does #hen %ou use the top icon !ar' To see %our account !alances at the top of the left icon !ar? click this categor%' ",age D0& e0plains ho# to customiKe #hich account !alances %ou see'$ V Run Favorite Re&orts@ 4licking this categor% lists the reports that %ou=ve flagged as %our favorites "page ED$' The reports %ou see are the same ones that appear on the 5avorites ta! of the >eport 4enter' V 4&en ;in o<s@ If %ou turn on the preference to use multiple #indo#s "page I4D$? %ou can click this categor% to see a list of open #indo#s at the top of the left icon !ar' 4lick a #indo#=s name to make it active' This categor% displa%s the same #indo#s %ou see if %ou choose Lie#M<pen Jindo# Pist #hen %ou use the top icon !ar'
T#6

The left icon !ar takes up a couple of inches on the left side of the main QuickBooks #indo#? so it=s more useful if %ou have a #idescreen monitor' Jith older and smaller monitors? %ou=ll have trou!le fitting the left icon !ar and %our transactions #indo#s onscreen at the same time' In that case? the menu !ar? top icon !ar? and Aome page "#hich %ou=ll learn a!out in a sec$ are read% to assist %ou' :fter shortcut menus and ke%!oard shortcuts "see :ppendi0 4? online at ###' missingmanuals'com(cds$? icon !ars are the fastest #a% to launch %our favorite features' Nou can add features? memoriKed reports? and #indo#s %ou open often to themUand remove features %ou don=t use' ,age D0 tells %ou ho# to customiKe the icon !ars'

8#itching among <pen Jindo#s


If %ou tend to #ork on one !ookkeeping task for hours on end? %ou can set Quick* Books up to displa% one full*siKe #indo# at a time "page I4D$' That #a%? #hen %ou open additional #indo#s? the% get stacked on top of each other so %ou see onl% the last one %ou opened' ,age I4D e0plains ho# to tell QuickBooks #hich #indo# setup %ou prefer' If %ou go #ith the one*#indo# approach? %ou can choose the #indo# %ou #ant to see in several #a%s: V 4lick <pen Jindo#s in the middle section of the left icon !ar? as sho#n in 5igure 2*&' Then? in the top section of the left icon !ar? click the name of the #indo# %ou #ant' V If %ou use the top icon !ar? %ou can see a list of open #indo#s !% choosing Lie#M<pen Jindo# Pist' Then? in the list? simpl% click the name of the #indo# %ou #ant to #ork #ith' V <n the menu !ar? choose Jindo#? and then choose the name of the one %ou #ant to see'

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QUICKBOOKs 2014: tHe MIssInG

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Nou can s#itch to another #indo# !% clicking the Jindo# menu at the top of the screen and then choosing the #indo# %ou #ant to displa%' Jhen %ou have mul* tiple #indo#s open? the Jindo# menu includes entries for arranging them? such as 4ascade and Tile Lerticall%'

If? on the other hand? %ou flit !et#een !ookkeeping tasks like a hone%!ee in an alfalfa field? %ou pro!a!l% #ant to displa% several #indo#s at a time' QuickBooks can do that' Pike #indo#s in other programs? simpl% click a #indo# to !ring it to the front? or use the !uttons in its upper right to minimiKe? ma0imiKe? or close it' Nou can reposition #indo#s !% dragging their title !ars? or resiKe them !% dragging their edges and corners' If the #indo# %ou #ant is hidden !ehind other #indo#s? choose the one %ou #ant in the <pen Jindo#s list or from the Jindo# menu on the menu !ar? as descri!ed at the !eginning of this section'

$u&er'a" /ie<
Jhen %ou #ant to see as much information as possi!le in a transaction #indo#? such as 4reate Invoices? 8uperma0 vie#? sho#n in 5igure 2*4? is 2ust the ticket' To s#itch a transaction #indo# to 8uperma0 mode? at the top right of the #indo#? click the icon that looks like a four*headed arro#'

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8uperma0 vie# hides the menu !ar? the left icon !ar or top icon !ar? and the ri!!on at the top of the transaction #indo#' It also hides the transaction histor% panel on the right side of the #indo#' Nou can restore or hide the ri!!on and transaction histor% panel !% clicking the appropriate arro#s "la!eled here$'

This vie# does several things so %ou can see more of the data entr% lines: V Aides the QuickBooks menu !ar and icon !ar "if %ou use one$ V MinimiKes the ri!!on "#hich is similar to the ri!!ons in Microsoft programs$ at the top of the #indo# V 5ills the entire QuickBooks #indo# #ith the transaction #indo# %ou 8uperma0ed V Aides the transaction histor% panel on the right side of the #indo# To revert to regular #indo# mode? click the icon that looks like a s)uare #ith an arro# pointing to its lo#er left "see 5igure 2*4$' Jhen %ou revert to regular #in* do# mode? the menu !ar? icon !ar? and feature panel at the top of the transaction #indo# all reappear'

The Aome ,age


The QuickBooks Aome page "5igure 2* ? !ackground$ is a slick #a% to #ork through %our compan%=s !ookkeeping tasks' "If it isn=t visi!le? choose 4ompan%MAome ,age or click Aome in the M% 8hortcuts section of the left icon !ar or the left end of the top icon !ar to displa% it'$ This section sho#s %ou ho# to use the Aome page to !est advantage'

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QUICKBOOKs 2014: tHe MIssInG

The settings %ou chose #hen %ou created %our compan% file determine #hat ap* pears on the Aome page' Qepending on #hat choices %ou made during setup? %ou=ll see several panelsULendors? 4ustomers? .mplo%ees? 4ompan%? and Banking Uthat each contain various icons' 5or e0ample? if %ou tell QuickBooks during setup that %ou invoice customers and send statements? the 4ustomers panel includes icons for invoicing and preparing statements' <r if %ou run a one*person shop #ith no emplo%ees? %ou #on=t see the .mplo%ees panel'

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If a feature %ou use doesn=t appear on the Aome page? choose .ditM,referencesM Qesktop Lie# and then click the 4ompan% ,refer* ences ta! "foreground$' 5or e0ample? if %ou #ant to enter sales receipts? turn on the 8ales >eceipts check!o0? as sho#n here' 8ome features "like .stimates and 8ales Ta0$ have their o#n section of preferences' 5or e0ample? the Invoices and +.nter Bills and ,a% Bills/ check* !o0es are !oth gra%ed out here' To turn one of these features on or off or to ad2ust its settings? click its icon on the left side of the ,references #indo# to see the corresponding settings' The >elated ,references section at the !ottom of the 4ompan% ,references ta! includes links %ou can click to 2ump to the cor* responding preferences'

The Aome page also has icons for other important features? like the 4hart of :c* counts icon in the 4ompan% panel? #hich opens the 4hart of :ccounts #indo#? and the 4heck >egister icon in the Banking panel? #hich opens %our checking account register #indo#'

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The Aome page appears each time %ou log into a compan% file' If %ou prefer to keep the Aome page hidden? choose .ditM,referencesMQesktop Lie#? click the M% ,references ta!? and then turn off the +8ho# Aome page #hen opening a compan% file/ check!o0' Then? #hen %ou #ant to see the Aome page? simpl% choose 4ompan%MAome ,age' Lendors? customers? and emplo%ees each have their o#n panel on the Aome page' The various arro#s on the Aome page sho# ho# !ookkeeping tasks fit together so %ou can follo# %our mone% from start to finish' The !ookkeeping tasks for each group are laid out like !readcrum!s %ou can follo#' Ao#ever? each compan% is dif* ferent? so %ou don=t have to use ever% icon %ou see' This section outlines the tasks %ou can perform from each panel and #here to find detailed instructions else#here in this !ook'

T#6

/en ors
Jhether %ou purchase products and services to run %our compan% or to sell to %our customers? the Aome page=s Lendors panel steps %ou through purchasing and pa%ing for the goods and services %ou useW these steps are descri!ed in detail in 4hapter C' The Lendor 4enter "5igure 2*I$ is the !est place to create? edit? and vie# #hat=s going on #ith %our vendors and vendor*related transactions' To open it? click the Lendors !utton at the top of the Lendors panel or choose LendorsMLendor 4enter' Aere=s #hat %ou can do there: V !reate a ne< ven or@ In the Lendor 4enter tool!ar at the top of the #indo#? click Be# LendorMBe# Lendor and the Be# Lendor #indo# opens so %ou can create a ne# vendor record? as descri!ed on page DE' If %ou click Be# LendorM:dd Multiple Lendors instead? QuickBooks lets %ou create several vendors in one #indo# "page 11E$' V Fin a ven or@ If %ou have a !aKillion vendors? %ou can shorten the vendor list that %ou see in the Lendors ta! on the #indo#=s left side' The ta!=s unla!eled drop*do#n list is initiall% set to :ctive Lendors' If %ou #ant to see active and inactive vendors alike? click the field and choose :ll Lendors instead' If %ou=d rather see onl% the vendors %ou o#e mone% to? choose +Lendors #ith <pen Balances'/ 4hoose 4ustom 5ilter to specif% e0actl% the criteria %ou #ant' To do a )uick search of vendor records? t%pe part of a vendor=s name in the Lendors ta!=s second unla!eled !o0 and then click the 5ind !utton? #hich has a magnif%ing glass on it' "The 5ind !utton then changes to a red R? #hich %ou can click to clear the value in the 5ind !o0 and redispla% the full list'$ V Revie< a ven orBs recor @ Jhen %ou select a vendor on the Lendors ta!? !asic info a!out that vendor appears at the top right of the #indo#? as sho#n in 5igure 2*I'

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The Lendor 4enter puts all vendor*related tasks in a single #indo#' Jhen %ou choose a vendor in the list on the left? the Lendor Information pane on the right displa%s info a!out that vendor' 4lick the <pen Balance link "circled$ to see the transaction=s that contri!ute to %our !alance #ith that vendor' Nou can even click the Map or Qirections link to find out ho# to get to %our vendor' To see more details? like transaction histor%? vendor contact info? to*dos related to the vendor? notes %ou=ve made? and emails %ou=ve sent? click the ta!s !elo# the Lendor Information pane'

E it an e"isting ven orBs recor @ To change a vendor=s record? on the Lendors ta!? right*click the vendor=s name and then choose .dit LendorW or? on the right side of the Lendor 4enter? click the .dit !utton "its icon looks like a pencil tip$' .ither #a%? the .dit Lendor #indo# opens #ith the same fields %ou filled in #hen %ou created the record "page DE$'

V *ttach an electronic ocu'ent to a ven or recor @ Nou can add attachments to a vendor=s record as descri!ed on page 2C ' V !reate transactions for a ven or@ In the Lendor 4enter tool!ar? click Be# Trans* actions to displa% a drop*do#n menu of vendor*related features like .nter Bills? ,a% Bills? and >eceive Items' "These do the same thing as the icons in the Aome page=s Lendors panel'$ If %ou need to revie# and record several transactions for the same vendor? this drop*do#n menu is a real timesaver' :fter %ou select the vendor in the Lendors ta! and then choose an entr% on this drop*do#n menu? the corresponding transaction #indo# opens #ith that vendor alread% selected'

V Revie< an 'anage transactions, contacts, to9 os, notes, an sent e'ail for a ven or@ Jhen the Lendors ta! is displa%ed? the !ottom*right part of the Lendor 4enter displa%s ta!s for transactions? contacts? to*dos? notes? and sent email'

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Jhen %ou select a vendor in the Lendors ta!? the Transactions ta! at the !ot* tom right of the Lendor 4enter lists that vendor=s transactions' B% filtering these transactions? %ou can find out #hich purchase orders are still open? #hether an% !ills are overdue? and #hat pa%ments %ou=ve made' To see a specific kind of transaction? in the 8ho# drop*do#n list? choose a t%pe? like Bills or Bill ,a%* ments' The 5ilter B% drop*do#n list lets %ou restrict the transactions in the ta!le !% their status? such as <pen Bills or <verdue Bills' To track do#n transactions #ithin a specific date range? choose an option from the Qate drop*do#n list' "The options in this menu are the same as the ones availa!le in report #indo#sW see page CD'$
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To vie# a transaction in its corresponding #indo#? dou!le*click the transaction in the list'

4lick the 4ontacts? To Qo=s? Botes? or 8ent .mail ta! to create? edit? or vie# contacts? to*dos? notes? or sent email for the selected vendor' V Revie< transactions for all ven ors@ Jhen %ou click the Transactions ta! on the left side of the #indo# "not the !ottom right$ and then click a t%pe of transaction? such as Bills or Bill ,a%ments? %ou=ll see transactions of that t%pe for all vendors on the right side of the #indo#' Nou can filter these transactions !% status "such as open or overdue$? !% date? and? if %ou use multiple curren* cies? !% currenc%' V 6rint or e"&ort ven or infor'ation@ Jhen %ou click the Lendors ta! on the left side of the #indo#? %ou can easil% print? cop%? import? or e0port vendor info' In the Lendor 4enter tool!ar? click ,rint to print vendor lists? vendor info? or vendor transactions' 4lick .0cel to paste? import? or e0port vendor info and transactions "page 12D$' If %ou click the Transactions ta! instead? %ou can print or e0port transactions' V 6re&are ven or letters@ Jhen the Lendors ta! on the left side of the #indo# is selected? click Jord in the Lendor 4enter tool!ar to create letters to vendors "page IDI$'

!usto'ers
The Aome page=s 4ustomers panel has icons for customer*oriented features like creating invoices? statements? sales receipts? and so on' "4hapter 10 descri!es ho# to #ork #ith invoices? estimates? sales orders? refunds? and customer credits' 4hap* ter 11 covers creating statement charges and statements' >eceiving pa%ments and sales receipts for cash sales are !oth descri!ed in 4hapter 1&'$ 4lick the 4ustomers !utton at the top of the panel "or choose 4ustomersM4ustomer 4enter$ to open the 4ustomer 4enter? #here %ou can perform the follo#ing tasks: V !reate a ne< custo'er or Io.@ In the 4ustomer 4enter tool!ar at the top of the #indo#? click Be# 4ustomer - Oo!' In the drop*do#n menu? choose Be# 4ustomer to create a ne# customer record "page II$? or choose :dd Multiple 4ustomer:Oo!s to add several customers' If %ou #ant to add a 2o! to an e0isting

.1st(3e&+ ?i&st se/e.t t%e .1st(3e& in t%e C1st(3e&s A B(;s t*; (n t%e /e?t si)e (? t%e C1st(3e& Cente& *n) t%en ./i.0 Ne=
V Fin a custo'er@ Nou can filter the list in the 4ustomers - Oo!s ta! to sho# active customers? onl% customers #ho o#e %ou mone% "customers #ith open !alances$? and so on? simpl% !% choosing an option in the ta!=s unla!eled drop* do#n list "it=s initiall% set to :ctive 4ustomers$' 4hoose 4ustom 5ilter to specif% criteria for the customers %ou #ant to see' To search for a specific customer? t%pe part of the customer=s name in the ta!=s second unla!eled !o0? and then click the 5ind !utton "it has a magnif%ing glass on it$' The 5ind !utton then changes to a red R? #hich %ou can click to clear the value in the 5ind !o0 and redispla% the complete list' V Revie< a custo'er recor @ Jhen %ou select a customer in the 4ustomers Oo!s ta!? the right side of the center displa%s the !asic 411 a!out that customer' In the 4ustomer Information section? sho#n in 5igure 2*D? %ou can get direc* tions to its location? look at ke% information like the customer=s open !alance? attach electronic documents to the record? or run reports a!out the customer'

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To open or edit a customer=s record? in the 4ustomers Oo!s ta!? select the customer so it appears in the 4ustomer Information section' Then click the .dit !utton la!eled here' To see more info a!out the selected customer? click the Transactions? 4ontacts? To Qo=s? Botes? or 8ent .mail ta!s at the !ottom right of the #indo#' To see transactions for all customers? click the Transac* tions ta! on the left side of the #indo#'

V Revie< a custo'erBs status@ 8uppose %ou #ant to look at a !ar graph of sales %ou=ve made to a customer !% time period? revie# the items that customer !u%s the most? and then scan a customer=s recent invoices and pa%ments' 5irst? select the customer in the 4ustomers - Oo!s ta!' Then? on the right side of the 4ustomer 4enter? click the 4ustomer 8napshot link "circled in 5igure 2*D$ to open the 4ompan% 8napshot #indo# "page 42$ to the 4ustomer ta!'

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E it an e"isting custo'erBs recor @ To open the .dit 4ustomer #indo#? in the 4ustomers - Oo!s ta!? either right*click a customer=s name and then choose .dit 4ustomer? or select a customer and then click the .dit !utton that=s la!eled in 5igure 2*D'

V *ttach an electronic ocu'ent to a custo'er recor @ Nou can add attach* ments to a customer=s record or scan images of them into QuickBooks? as descri!ed on page 2C ' V !reate transactions for a custo'er@ If %ou=re revie#ing a customer=s transac* tions and realiKe %ou forgot to record an invoice or other transaction? %ou can easil% create transactions from the 4ustomer 4enter #indo#' :fter %ou select the customer on the left side of the 4enter? in the #indo#=s tool!ar? click Be# Transactions and then choose a transaction t%pe from the drop*do#n menu? such as .stimates? Invoices? or >eceive ,a%ments' The items in this menu are the same as the icons in the Aome page=s 4ustomers panel and open the cor* responding #indo# to record that t%pe of transaction' V Revie< an 'anage transactions, contacts, to9 os, notes, an e'ails for a custo'er@ Jhen the 4ustomers - Oo!s ta! is displa%ed on the left side of the #indo#? the !ottom right of the 4ustomer 4enter includes ta!s for transac* tions? contacts? to*dos? notes? and sent emails' If %ou click the Transactions ta!? %ou=ll see a ta!le at the !ottom right of the #indo# #ith the transactions for the customer %ou selected in the 4ustomers - Oo!s ta!' Nou can filter these transactions !% t%pe "estimates or invoices? for e0ample$? status? and date' Qou!le*click a transaction in the list to open a #indo# #ith details a!out it' 4lick the 4ontacts? To Qo=s? Botes? or 8ent .mail ta! to create? edit? or vie# contacts? to*dos? notes? or emails for the selected customer' V Revie< transactions for all custo'ers@ Jhen %ou click the Transactions ta! on the left side of the #indo# and then click a t%pe of transaction "such as .s* timate? Invoices? or >eceived ,a%ments$? the right side of the #indo# displa%s transactions of that t%pe for all customers' Qepending on the t%pe %ou choose? %ou can filter these transactions !% status "such as open or overdue$? pa%ment method? date? andUif %ou use multiple currenciesUcurrenc%' V 6rint or e"&ort custo'er infor'ation@ Jhen %ou click the 4ustomers - Oo!s ta! on the left side of the #indo#? %ou can print? cop%? import? or e0port customer info' In the center=s tool!ar? click ,rint to print customer information "page 1 2$ or click .0cel to import or e0port customer and 2o! info "page IC1$' If %ou click the Transactions ta! instead? %ou can print or e0port customer transactions' V 6re&are custo'er letters@ In the 4ustomer 4enter tool!ar? click Jord to create letters to customers "page IDI$'

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QUICKBOOKs 2014: tHe MIssInG

E32/(<ees T%e 2*,es 2*ne/ %*s (n/< * pa%checks? ?e= i.(ns' #hen H(3e %ou click one ofE32/(<ees these icons to enter time? set up orT%e pa% pa%roll
ta0 lia!ilities' The .mplo%ee 4enter #orks the same #a% as the Lendor and 4ustomer centers %ou 2ust learned a!out' To open it? click the .mplo%ees !utton at the top of the panel on the Aome page or choose .mplo%eesM.mplo%ee 4enter' In the .mplo%ee 4enter? %ou can create ne# records for emplo%ees? update info for e0isting emplo%ees? and vie# transactions like pa%checks' <n the .mplo%ees ta! on the left side of the center? %ou can filter the list to vie# active emplo%ees? released emplo%ees "ones #ho no longer #ork for %ou$? or all emplo%ees' 8ee 4hapter E to learn ho# to record the time that emplo%ees #ork' 4hapter 1 covers the process for pa%ing emplo%ees and other pa%roll e0penses'

THE HOME

!o'&any Features
The 4ompan% panel is on the right side of the Aome page' The t#o icons in this panel that %ou=ll pro!a!l% click most often are 4hart of :ccounts and Items 8ervices? #hich open the 4hart of :ccounts "page 1$ and Item Pist "page 102$ #indo#s? respectivel%' 4lick 4alendar to revie# transactions and to*dos in the 4alendar #indo# "page 4C4$' If %ou=re interested in other apps and services that Intuit has to offer? click the +Je! and Mo!ile :pps/ iconW a !ro#ser #indo# opens to the QuickBooks :pp 4enter' If %ou track inventor%? click the Inventor% :ctivities icon and then choose a feature? such as :d2ust Quantit%(Lalue <n Aand? #hich lets %ou change the )uantit% and value of %our inventor% "page 4E$' If %ou use QuickBooks ,remier or .nterprise? click Inventor% 4enter to open a #indo# similar to the 4ustomer 4enter? e0cept that it focuses on the status ofUand transactions involvingU%our inventor% items "page 44$'

Banking
The Aome page=s Banking panel is a one*stop shop for !anking tasks' Jhether %ou visit this panel fre)uentl% or rarel% depends on ho# %ou like to record transactions' 5or e0ample? %ou can click the Jrite 4hecks icon to open the Jrite 4hecks #indo# "page 1C&$ or simpl% press 4trlTJ to do the same thing' "<r? if %ou like to record checks in a check register #indo#? %ou might prefer to dou!le*click %our !ank ac* count in the 4hart of :ccounts #indo# instead'$ 8imilarl%? clicking the .nter 4redit 4ard 4harges icon opens the .nter 4redit 4ard 4harges #indo# "page 20&$? though %ou can also record credit card charges directl% in a credit card account=s register "page & I$' 4licking the >ecord Qeposits icon opens the +,a%ments to Qeposit/ #indo# so %ou can record !ank deposits "page &4C$' The >econcile icon opens the Begin >econ* ciliation dialog !o0 so %ou can reconcile %our QuickBooks records to %our !ank=s "page &D1$' :nd the ,rint 4hecks icon opens the +8elect 4hecks to ,rint/ dialog !o0 so %ou can choose the ones %ou #ant to print and send them to a printer loaded #ith !lank checks'

CHA5teR 2: GETTING AROUND IN

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If %ou use the top icon !ar "Lie#MTop Icon Bar$? the top*right part of the Aome page sho#s account !alances' Belo# those is a Qo More #ith QuickBooks section #ith a fe# links to additional services that Intuit offers' Nou also see a Backup 8tatus section that tells %ou #hen %our last !ackup ran and includes info a!out the Intuit Qata ,rotect !ackup service "page 04$' If an% of these sections are collapsed? click the section=s do#n arro# to e0pand it' 4lick a section=s up arro# to collapse it' If %ou use the left icon !ar "Lie#MPeft Icon Bar$? %ou can see account !alances !% clicking Lie# Balances in the !ar=s middle section' "8ee page &0 for more a!out the icon !ars'$

The 4ompan% 8napshot


The 4ompan% 8napshot #indo# "5igure 2*E$ is a dash!oard that sho#s important aspects of %our compan%=s financial state? like account !alances? income !reakdo#n "!% top*level income accounts$? customers #ho o#e %ou mone%? !est* selling items? and reminders' 4hoose 4ompan%M4ompan% 8napshot or click the 8napshots icon in either icon !ar to open it' Nou can choose from 12 different vie#s "page D0C$ to see the information %ou care most a!out'

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Bot onl% can %ou )uickl% scan %our compan%=s financial status in this #indo#? !ut %ou can also dou!le*click entries here to dig into the details' Nou can even add or remove items from this #indo# or drag items to rearrange them? as descri!ed on page D0C'

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QUICKBOOKs 2014: tHe MIssInG

CHA5TER

& 8etting ;p a 4hart of :ccounts

I f %ou=ve 2ust started running a !usiness and keeping %our compan%=s !ooks? all
this talk of accounts? credits? and de!its might have %ou flummo0ed' :ccounting is a cross !et#een mathematics and the m%stical artsW its goal is to record and report the financial performance of an organiKation' The end result of !ookkeeping and accounting is a set of financial statements "page 4 &$? !ut the starting point is the chart of accounts' In accounting? an account is more than a real*#orld account %ou have at a financial institutionW it=s like a !ucket for holding mone% used for a specific purpose' Jhen %ou earn mone%? %ou document those earnings in an income account? 2ust as %ou might toss the change from a da%=s take at the lemonade stand into the 2ar on %our desk' Jhen %ou !u% supplies for %our !usiness? that e0pense sho#s up in an e0* pense account that #orks a lot like the shoe!o0 %ou thro# receipts into' If %ou !u% a !uilding? its value ends up in an asset account' :nd if %ou !orro# mone% to !u% that !uilding? the mortgage o#ed sho#s up in a lia!ilit% account' :ccounts come in a variet% of t%pes to reflect #hether %ou=ve earned or spent mone%? #hether %ou o#n something or o#e mone% to someone else? as #ell as a fe# other financial situations' Nour chart of accounts is a list of all the accounts %ou use to track mone% in %our !usiness' Beoph%tes and e0perienced !usiness folks alike #ill !e relieved to kno# that %ou don=t have to !uild a chart of accounts from scratch in QuickBooks' This chapter e0plains ho# to get a read%*made chart of accounts for %our !usiness and #hat to do #ith it once %ou=ve got it' If %ou #ant to add or modif% accounts in %our chart of accounts? %ou=ll learn ho# to do that? too'

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ACQUIRIN

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Industr%*specific ,remier editions of QuickBooks include a 4hart of :ccounts? an Item Pist? ,a%roll items? and preferences alread% tuned to %our industr% "such as construction? manufacturing? nonprofit? professional services? or retail$' The industr%*specific editions also have features uni)ue to each industr%? like enhanced 2o! costing in the 4ontractor edition' These features ma% save %ou time during setup and %our da%*to*da% !ook* keeping? !ut %ou have to decide #hether %ou #ant to spend a fe# hundred dollars more than the QuickBooks ,ro price tag to get them'

:c)uiring a 4hart of :ccounts


Jhen %ou create a ne# QuickBooks compan% file and choose an industr% "page 11$? the program automaticall% sets up the chart of accounts #ith accounts that are t%pical for that industr%' 5or e0ample? if %ou choose a product*oriented industr%? %ou=ll see an income account for product or parts income? #hile a service*oriented !usiness gets an income account for service or la!or income' If %our compan% is like man% small !usinesses? the chart of accounts that QuickBooks creates includes ever%thing %ou need' Ao#ever? if %ou #ant to customiKe %our chart of accounts to mirror %our compan%=s needs? the easiestUalthough pro!a!l% not the cheapestU#a% to get a chart of ac* counts is from %our accountant' :ccountants understand the accounting guidelines set !% the 5inancial :ccounting 8tandards Board "5:8BU pronounced +faK !ee/$? a private*sector organiKation that sets standards #ith the 8.4=s !lessing' Jhen %our accountant !uilds a QuickBooks chart of accounts for %ou? %ou can !e reasona!l% sure that it includes all the accounts %ou need to track %our !usiness and that those accounts conform to accounting standards' If %ou=re a !usiness o#ner and #ant a specific account or #ant to see %our !usiness financials in a particular #a%? ask %our accountant #hat t%pe of accounts to use and ho# to set them up'
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Qon=t #orr%Ugetting an accountant to !uild a chart of accounts for %ou pro!a!l% #on=t !ust %our !udget? since the accountant #on=t start from scratch' Man% financial professionals maintain spreadsheets of ac* counts and !uild a chart of accounts !% importing a customiKed account list into QuickBooks' <r? the% ma% keep QuickBooks compan% files around to use as templates for ne# ones' If %ou don=t #ant to pa% an accountant to create a chart of accounts for %ou? ho# a!out finding one !uilt !% e0perts and availa!le at no chargeG : )uick search on the Je! for +QuickBooks chart of accounts/ returns links to sites #ith predefined charts of accounts' 5or e0ample? in the not*for*profit #orld? the Bational 4enter for 4harita!le 8tatistics #e!site "http: ((ncc s'ur!a n'org(pro2ect s(ucoa'cfm$ includes do#nloada!le QuickBooks files that contain the ;nified 4hart of :ccounts for nonprofits "kno#n as the ;4<:$' Nou can do#nload a QuickBooks !ackup file of a nonprofit compan% file? complete #ith a chart of accounts "see page 0E to learn ho# to restore a !ackup file$? an 'iif file that %ou can import into QuickBooks? or a !ackup file for the Mac version of QuickBooks'

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QUICKBOOKs 2014: tHe MIssInG

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If %ou have an .0cel spreadsheet #ith %our compan% account information? %ou can import that info directl% into %our compan% file' ,age 12D has the full stor% on importing from .0cel' If %ou run a restaurant? %ou can go to ###'rrgconsulting'com(restaurant Scoa'htm and do#nload a free 'iif file #ith a restaurant*oriented chart of accounts that %ou can import into QuickBooks? as e0plained in the ne0t section'

ACQUIRIN G

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#'&orting a !hart of *ccounts


If %ou do#nload an 'iif file #ith a chart of accounts? %ou can import that file into a QuickBooks compan% file' Because %ou=re importing a chart of accounts? %ou #ant to create %our compan% file #ith !asic info a!out %our compan% and as fe# accounts as possi!le in the chart of accounts list' Aere=s ho# %ou create a QuickBooks compan% file #ith !are*!ones information and then import a chart of accounts from an 'iif file: 1' !hoose FileM>e< !o'&anyM in the QuickBooks $etu& &ears, click E"&ress $tart@ ialog .o" that a&9

If %ou see a screen that asks for %our email address and pass#ord? enter the email address and pass#ord for %our Intuit account? and then click 4ontinue' 2' 4n the GTell us a.out your .usinessH screen, enter your co'&anyBs na'e, ty&e, an Ta" #1@ #n the #n ustry .o", enter 4therJ>one, an then click !ontinue@ &' 4n the GEnter your .usiness contact infor'ationH screen, o Iust that@

8ee 4hapter 1 for details' If %ou click ,revie# Nour 8ettings and then click the 4hart of :ccounts ta!? %ou see that the accounts list is empt%? #hich is #hat %ou #ant' 4lick <6 to close the previe# #indo#' 4' *fter you finish filling in your contact info, click !reate !o'&any File@ QuickBooks creates %our compan% file and then displa%s the +Nou=ve got a compan% file] Bo# add %our info/ screen in the QuickBooks 8etup dialog !o0' ' To close the QuickBooks $etu& ialog .o", click $tart ;orking, an then click the F at the to& right of the Quick $tart !enter <in o< that a&&ears@ Nou can also close the QuickBooks 8etup dialog !o0 !% clicking the R at the #indo#=s upper right' I' !hoose FileM%tilities M#'&ortM##F Files@ QuickBooks opens the Import dialog !o0 to the folder #here %ou stored %our compan% file and sets the +5iles of t%pe/ !o0 to +II5 5iles "^'II5$'/ D' >avigate to the fol er that contains the @iif file you <ant to i'&ort, select the file, an then click 4&en@ : message !o0 appears that sho#s ho# the import is progressing' If all goes #ell? QuickBooks then displa%s a message !o0 that tells %ou that it imported

CHA5teR #: ETTING U5 A CHART O!

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in the 'iif file? it tells %ou that it didn=t import the data successfull%' In that case? %ou have to open the 'iif file in a te0t editor or .0cel and correct the account info' "Nou can see #hat information QuickBooks e0pects !% e0porting an ac* count list? as descri!ed on page IC0'$ To admire %our ne# chart of accounts? in the QuickBooks Aome page=s 4ompan% panel? click 4hart of :ccounts "or press 4trlT:$' Bo# that %our chart of accounts is in place? %ou can add more accounts? hide accounts %ou don=t need? merge ac* counts? or edit the accounts on the list' The rest of this chapter e0plains ho# to do all these things'

,lanning the 4hart of :ccounts


: chart of accounts is a tool for tracking %our compan%=s finances at a relativel% high levelUit helps %ou produce financial statements "see page 4 &$ and prepare %our !usiness ta0 returns' Jhen setting up %our chart of accounts? !ear in mind that it #ill !e easier to #ork #ith if %ou keep the num!er of accounts to a minimum' "The income statements for even ginormous glo!al corporations t%picall% fit on a single page'$ This section helps %ou figure out #hich accounts %ou need and provides guidelines for naming and num!ering them'

1o 8ou >ee

*nother *ccountD

QuickBooks offers several featuresUincluding items? 2o!s? and classesUthat can provide details a!out %our compan%=s performance #ithout %ou having to add ad* ditional accounts' 8o !efore %ou create an account? think a!out #hether another feature can track the information %ou #ant instead' Aere=s a !rief description of #hat each feature does and #hen to use it: V *ccounts@ Jhen %ou create transactions in QuickBooks? the program allocates mone% to accounts in %our chart of accounts' Then? #hen %ou run a ,rofit Poss report "page 4 I$? %ou see financial results !% account' 8o create a ne# account if %ou #ant to see a particular pool of mone% !roken out in %our finan* cial reports' 5or e0ample? add an income account for services %ou=re offering in addition to %our product sales'
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8u!accounts "page $ are an option if %ou #ant to !reak one categor% into several smaller pieces? such as divv%ing travel e0penses up into airfare? lodging? transportation? and meals' V #te's@ In QuickBooks? items track details a!out #hat %ou !u% and sell' 5or e0* ample? %ou might create doKens of items for each specific service %ou provide? such as cutting do#n trees? cutting logs? chipping #ood? splitting #ood? and hauling trash' Ao#ever? each of those items can !e assigned to the same services income account' 4hapter provides the full stor% on items' V -o.s@ If %ou #ork on different pro2ects for the same customer? %ou can create 2o!s in QuickBooks "page D $' That #a%? %ou can assign invoices to specific

5CANNING D(;s *n) t&*.0 in.(3e ;< D(;' $(1 .*n */s( t&*.0 D(; ex2enses
or other e0penses !illa!le to specific 2o!s' V !lasses@ If %our !usiness is !roken into segments? such as regions? !usiness units? or partners in a partnership? %ou can turn to classes "page 1&4$' Nou can assign a class to each transaction? such as an invoice or !ill? #hich lets %ou track income and e0penses across accounts? customers? and vendors' 5or e0ample? if %ou create a class for each !usiness unit in %our compan%? %ou can assign the appropriate class to each transaction %ou record' Then? a ,rofit Poss report !% class "page 4 E$ #ill produce an income statement for each !usiness unit' :44<;BT8

>a'ing an >u'.ering *ccounts


:ccount names and num!ers make it eas% for accountants? !ookkeepers? and compan% emplo%ees to find the accounts the% need' In addition? #ith standardiKed naming and num!ering? %ou can compare %our compan%=s financial performance #ith others in %our industr%' This section suggests some rules to follo# as %ou set up naming and num!ering conventions' If %ou accept the accounts that QuickBooks recommends #hen %ou set up %our compan% file? then the% alread% have assigned names and num!ers? as sho#n in 5igure &*1' Nou might think this lets %ou off the hook' But !% taking the time to learn standard account num!ers and names? %ou=ll find #orking #ith accounts more logical and understand more of #hat %our accountant and !ookkeeper sa%'

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:ccounts that QuickBooks adds to %our chart of accounts during setup come #ith assigned names and num!ers? as %ou can see here' To open the 4hart of :ccounts #indo#? press 4trlT:' If %ou don=t see account num!ers in this #indo#? page 4C tells %ou ho# to displa% them'

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:ccount num!ers are initiall% turned off #hen %ou create a ne# compan% file in QuickBooks "page 4C e0plains ho# to displa% them$? and %ou don=t have to use them' Ao#ever? account num!ers make it easier for %our !ookkeeper or accountant to #ork #ith %our financial records' This section e0plains the t%pical num!ering convention that financial folks use' 4ompanies reserve ranges of num!ers for different t%pes of accounts? so the% can identif% the t%pe of account !% its num!er alone' Business models var%? so %ou=ll find account num!ers carved up in different #a%s depending on the industr%' Think a!out %our personal finances: Nou spend mone% on lots of different things? !ut %our income derives from a precious fe# sources' Businesses and nonprofits are no different' 8o %ou might find income accounts num!ered from 4000 to 4CCC and e0pense accounts using num!ers an%#here from 000 through CCCC "see Ta!le &*1$'
T*B2E (91 T%pical ranges for account num!ers R*>)E 1000X1CCC 2000X2CCC &000X&CCC 4000X4CCC 000X CCC I000XDCCC E000XCCCC *!!4%>T T86E :ssets Pia!ilities .)uit% Income 4ost of goods sold? cost of sales? 2o! costs? or general e0penses .0penses? overhead costs? or other income .0penses or other e0penses

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Most !usinesses use the same account*num!ering scheme up until the num!er 4CCC' :fter that? things can differ !ecause some companies re)uire more income accounts? !ut in most !usinesses? e0pense accounts are the most numerous' :ccount num!ering conventions don=t 2ust carve num!er ranges up for account t%pes' If %ou read annual reports as a ho!!%? %ou kno# that companies further compartmentaliKe their finances' 5or e0ample? assets and lia!ilities get split into current and long*term categories' "4urrent means something that=s e0pected to happen #ithin the ne0t 12 months? such as a loan that=s due in & monthsW long*term is an%thing !e%ond 12 months'$ T%picall%? companies sho# assets and lia!ilities pro* gressing from the shortest to the longest term? and the asset and lia!ilit% account num!ers follo# suit' Aere=s one #a% to allocate account num!ers for current and progressivel% longer*term assets: V 1000N10++@ Immediatel% availa!le cash? such as a checking account? savings account? or pett% cash' V 1100N14++@ :ssets %ou can convert into cash #ithin a fe# months to a %ear? including :ccounts >eceiva!le? inventor% assets? and other current assets'

5CANNING : 1600E1899' C(n,-te&3 *ssets+ s1.% *s /*n)+ ;1i/)in,s+


fi0ed assets' V 1700N1+++@ <ther assets' 4ompanies also !reak e0penses do#n into smaller categories' 5or e0ample? man% companies keep an e%e on #hether their sales team is doing its 2o! !% tracking sales e0penses separatel% and monitoring the ratio of sales to sales e0penses' 8ales e0* penses often appear in the 000X CCC range' QuickBooks reinforces this standard !% automaticall% creating a 4ost of @oods 8old account num!ered 001' "Nou can create as man% 4ost of @oods 8old accounts as %ou need to track e0penses that relate directl% to %our income? such as the cost of purchasing products %ou sell? as #ell as #hat %ou pa% %our salespeople'$ <ther companies assign overhead e0penses to accounts in the D000XDCCC range? so the% can assign a portion of those e0penses to each 2o! performed'
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Jhen %ou add ne# accounts to %our chart of accounts? increment the account num!er !% or 10 to leave room in the num!ering scheme for similar accounts %ou might need in the future' 5or e0ample? if %our checking account num!er is 1000? assign 1010 or 101 to %our ne# savings account rather than 1001' In QuickBooks? an account num!er can !e up to seven digits long? !ut the program sorts num!ers !eginning #ith the leftmost digit' 8o if %ou #ant to categoriKe in e0* cruciating detail? slice %our num!er ranges into sets of 10?000' 5or e0ample? assets range from 10000 to 1CCCCW income accounts span 40000 to 4CCCC? and so on'
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Because QuickBooks sorts accounts !% num!er? !eginning #ith the leftmost digit? account 4100020 appears !efore account 4101' /#E;#>) *!!4%>T >%MBER$ If %ou #ant to see or hide account num!ers in QuickBooks? here=s ho# to turn them on or off: 1' !hoose E itM6referencesM*ccounting, an then in the 6references ialog .o", click the !o'&any 6references ta.@ Nou have to !e a QuickBooks administrator "page D2I$ to open this ta!' 2' Turn on the G%se account nu'.ersH check.o" to sho< account nu'.ers@ To hide them? turn off this check!o0' &' !lick 4: to close the 6references ialog .o"@ Jith this setting turned on? account num!ers appear in the 4hart of :ccounts #in* do#? account drop*do#n lists? and account fields' In addition? the :dd Be# :ccount and .dit :ccount #indo#s displa% the Bum!er !o0 so %ou can add or modif% an account=s num!er'

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:44<;BT8 Turning off the +;se account num!ers/ check!o0 doesn=t remove account num!ers %ou=ve alread% addedW it simpl% hides them in the spots mentioned a!ove' Nou can see them again !% turning the check!o0 !ack on' Ao#ever? %ou can=t add account num!ers to an% accounts %ou create #hile the check!o0 is turned off' If %ou create an account an%#a%? %ou can then edit it "page E$ after %ou turn on the +;se account num!ers/ check!o0 to add an account num!er' !H44$#>) )441 *!!4%>T >*ME$ :ccount names should !e meaningful? !oth to %ou and %our accountant "or !ook* keeper$' In addition? %our accounts should !e uni)ue in name and function !ecause %ou don=t need t#o accounts for the same t%pe of income? e0pense? or financial !ucket' 5or e0ample? if %ou consider advertising and marketing t#o distinctl% differ* ent activities? then create an account for each' But if advertising and marketing !lur in %our mind? then create one account #ith a name like +Marketing - :dvertising'/
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Because accounts represent high*level categories? stick to names that summariKe the income or e0pense? such as 8ervice Income and ,roduct Income' If %our account names are something like Tom=s 4onsult* ing? Qick=s 4onsulting? and Aarr%=s 4onsulting? %our accounts and their names are too specificUand might cause confusion if >osie takes over Aarr%=s #ork' QuickBooks does its part to enforce uni)ue account names' 8a% %ou tr% to create a ne# e0pense account named ,ostage? !ut an account !% that name alread% e0ists' QuickBooks displa%s the message? +This name is alread% in use' ,lease use another name'/ Jhat QuickBooks can=t do is ensure that each account represents a uni)ue categor% of mone%' Jithout a naming standard? %ou could end up #ith multiple accounts #ith uni)ue names? each representing the same categor%? as sho#n !% the follo#ing names for accounts used to track postage: .0pense*postage ,ostage ,ostage and deliver% 8hipping If %ou haven=t used QuickBooks !efore? here are some rules %ou can appl% to help make %our account names consistent: V ;or or er@ If %ou include the account t%pe in the name? then append it to the end of the name' Nou=ll spot +,ostage .0pense/ more easil% than +.0pense ,ostage'/ V !onsistent &unctuation@ 4hoose +and/ or +-/ for accounts that cover more than one item? like +Ques and 8u!scriptions'/ :nd decide #hether to include apostrophes? as in +<#ners Qra#/ or +<#ners= Qra#'/ V $&aces@ Qecide #hether to include spaces for reada!ilit% or to eliminate them for !revit%W for e0ample? +Ques - 8u!scriptions/ vs' +Ques-8u!scriptions'/ V *..reviation@ If %ou a!!reviate #ords in account names? then choose a standard a!!reviation length' If %ou go #ith four*letter a!!reviations? for e0ample? +,ost* age/ #ould !ecome +,ost'/ 5or a three*letter a!!reviation? %ou might use +,st'/

CREATIN G
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QuickBooks #on=t enforce %our naming standards' 8o after %ou set the rules for account names? #rite them do#n so %ou don=t forget them' : consistent #ritten standard encourages ever%one "%ourself included$ to trust and follo# the naming rules' :lso? urge ever%one to displa% inactive accounts "page C$ and scan the chart of accounts for s%non%ms to see if such an account alread% e0ists !efore creating a ne# one' These rules are easier to enforce if %ou limit the num!er of people #ho can create and edit accounts "page D& $'

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4reating :ccounts and 8u!accounts


:s the !o0 on page 2 e0plains? different t%pes of accounts represent dramaticall% different financial animals' The good ne#s is that ever% t%pe of account in Quick* Books shares most of the same fields? so %ou need to learn onl% one account* creation procedure' If %ou look closel% at the chart of accounts list in 5igure &*1? %ou=ll notice that ac* counts fall into t#o main categories: those #ith !alances and those #ithout' If %ou=re reall% on %our toes? %ou might also notice that accounts #ith !alances are the ones that appear on the Balance 8heet report' ":ccounts #ithout !alances appear on the ,rofit - Poss report'$ To learn more a!out financial statements and the accounts the% reference? see 4hapter 2&'

!reating an *ccount
:fter %ou=ve had %our !usiness for a #hile? %ou #on=t add ne# accounts ver% often' Ao#ever? %ou might need one if %ou start up a ne# line of income? take on a mortgage for %our ne# office !uilding? or #ant a ne# e0pense account for the su!contractors %ou hire to manage %our #orkload' 4reating accounts in QuickBooks is simple? #hich is a refreshing change from man% accounting tasks' Before %ou can create an account? %ou have to open the 4hart of :ccounts #indo#' Because the chart of accounts is central to accounting? %ou have several #a%s to open this #indo#: V ,ress 4trlT: "#hich %ou can do from an%#here in the program$' V :t the top right of the Aome page? in the 4ompan% panel? click 4hart of :ccounts' V In the menu !ar? choose PistsM4hart of :ccounts' The 4hart of :ccounts #indo# #orks much like other list #indo#s' 5or e0ample? %ou can sort the account list !% different columns or drag accounts in the list to different locations' "8ee page 1 1 to learn ho# to sort and rearrange lists'$
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Nou can create accounts on the fl% !% choosing _:dd Be#` in an% :ccount drop*do#n list' 8uppose %ou create a ne# 8ervice item "in the Item Pist #indo#? press 4trlTB$ and #ant a ne# income account to track revenue for that service' In the Be# Item dialog !o0? scroll to the top of the :ccount drop*do#n list and then choose _:dd Be#`' In the :dd Be# :ccount dialog !o0 that appears? fill in the various fields? and then click 8ave - 4lose' Back in the Be# Item dialog !o0? QuickBooks fills in the :ccount field #ith the ne# account? and %ou can finish creating %our item'

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Making 8ense of :ccount T%pes


QuickBooks= account t%pes are standard ones used in finance' Aere=s a )uick introduction to the different t%pes and #hat the% represent: V Bank@ :ccounts that %ou hold at a financial institution? such as a checking? savings? mone% market? or pett% cash account' V *ccounts Receiva.le@ The mone% that %our customers o#e %ou? like outstanding invoices and goods purchased on credit' V 4ther !urrent *sset@ Things %ou o#n that %ou=ll use or convert to cash #ithin 12 months? such as prepaid e0penses' V Fi"e *sset@ Things %our compan% o#ns that decrease in value over time "depreciate$? like e)uipment that #ears out or !ecomes o!solete' V 4ther *sset@ If %ou #on=t convert an asset to cash in the ne0t 12 months and it isn=t a deprecia!le asset? then it=sU%ou guessed itUan other asset' : long*term note receiva!le is one e0ample' V *ccounts 6aya.le@ This is a special t%pe of current lia!ilit% account "mone% %ou o#e in the ne0t 12 months$ that represents #hat %ou o#e to vendors' V !re it !ar @ Oust #hat it sounds like: a credit card account' V 4ther !urrent 2ia.ility@ Mone% %ou o#e in the ne0t 12 months? such as sales ta0 and short*term loans' V 2ong Ter' 2ia.ility@ Mone% %ou o#e after the ne0t 12 months? like mortgage pa%ments %ou=ll pa% over several %ears' V E?uity@ The o#ners= e)uit% in %our compan%? including the original capital invested in the compan% and retained earnings' "Mone% that o#ners #ithdra# from the com* pan% also sho#s up in an e)uit% account !ut reduces the value of the account'$ V #nco'e@ The revenue %ou generate through %our main !usiness functions? like sales or consulting services' V !ost of )oo s $ol @ The cost of products and materials that %ou held originall% in inventor% !ut then sold' Nou can also use this t%pe of account to track other e0penses related to %our sales? such as commissions and #hat %ou pa% su!contractors to do #ork for %our customers' V E"&ense@ The mone% %ou spend to run %our compan%' V 4ther #nco'e@ Mone% %ou receive from sources other than !usiness operations? such as interest income'

V 4ther E"&ense@ Mone% %ou pa% out for things other than !usiness operations? like interest' V >on9&osting *ccount@ QuickBooks creates non*posting accounts automaticall% #hen %ou use features such as estimates and purchase orders' 5or e0ample? #hen %ou create an estimate "page 2 C$? %ou don=t #ant that mone% to appear on %our financial reports? so QuickBooks stores those values in non*posting accounts'

<nce %ou=ve opened the 4hart of :ccounts #indo#? here=s ho# to create an account: 1' 6ress !trlO> to o&en the * >e< *ccount <in o<@

:lternativel%? on the menu !ar at the !ottom of the 4hart of :ccounts #indo#? click :ccountMBe#' <r? right*click an%#here in the 4hart of :ccounts #indo#? and then choose Be# from the shortcut menu' Bo matter #hich method %ou use? QuickBooks opens the :dd Be# :ccount #indo# sho#n in 5igure &*2'

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If %ou aren=t sure #hich t%pe to choose for %our ne# account? read the !o0 on page 2' Jhen %ou select one of the options here? a description #ith e0amples of that t%pe of account appears on the right side of the #indo#' 4lick More to read a Aelp topic that e0plains #hen to use that t%pe of account'

2' $elect the ty&e of account you <ant to create, such as Bank for a .ank ac9 count, an then click !ontinue@ The :dd Be# :ccount #indo# lists the most common kinds of accounts' If %ou don=t see the t%pe %ou #antU4ost of @oods 8old? for e0ampleUselect the <ther :ccount T%pes option? and then choose from the drop*do#n menu "5igure &*2$' &' #n the >u'.er .o" in the u&&er right of the * >e< *ccount <in o< KFigure (9(L, ty&e the chart of accounts account nu'.er you <ant to use@ K#f you onBt see the >u'.er .o", fli& to &age 4+ to learn ho< to is&lay it@L If %ou keep the 4hart of :ccounts #indo# in vie# #hile creating ne# accounts? %ou can revie# the account num!ers for similar t%pes of accounts' That #a%? %ou can give the ne# account a num!er that=s or 10 higher than an e0isting account num!er? so that the ne# one snuggles in nicel% #ith its compatriots in the chart of accounts'

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The Bank account t%pe includes ever% account field e0cept the Bote field? and includes a fe# fields that %ou #on=t find in an% other account t%pe? such as Bank :cct' Bo' and >outing Bum!er' If %ou #ant QuickBooks to remind %ou to order checks? in the +>emind me to order checks #hen I reach check num!er/ field? t%pe the check num!er %ou #ant to use as a trigger' :nd if %ou #ant the program to open a !ro#ser #indo# to an Intuit site #here %ou can order supplies? turn on +<rder checks I can print from QuickBooks'/ If %ou get checks from some#here else? 2ust reorder checks the #a% %ou normall% do'

4' #n the *ccount >a'e .o", ty&e a na'e for the account@ 8ee page 0 for tips on standardiKing account names'
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If %ou create an account and don=t see one of the fields mentioned here? it simpl% doesn=t appl% to that account t%pe' ' #f you <ant the account to .e a su.account, then turn on the G$u.account ofH check.o"@ Then, in the ro&9 o<n list, choose the account that you <ant to act as the &arent@ 8u!accounts are a good #a% to track %our finances in more detail? as the !o0 on page e0plains' In the chart of accounts? su!accounts are indented !elo# their parent accounts to make the hierarch% eas% to see? as sho#n at the !ot* tom of 5igure &*1 on page 4D'

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Jhen %ou use su!accounts? QuickBooks displa%s !oth the parent account=s name and the su!account=s name in the :ccount fields throughout the program? #hich often makes it impossi!le to tell #hich account a transaction uses? as %ou can see in 5igure &*4 "top$' If %ou #ant to see onl% the lo#est*level su!account in :ccount fields? head to the :ccounting section of the ,references dialog !o0 and turn on the +8ho# lo#est su!account onl%/ check!o0? #hich is on the 4ompan% ,references ta! "see page I40$'

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Top: QuickBooks com!ines the names of parent accounts and their su!accounts into one long name in :ccount fields and drop*do#n lists? like the travel e0ample sho#n here' In man% instances? onl% the top*level ac* count is visi!le unless %ou scroll #ithin the :ccount field' Bottom: Jhen %ou turn on the +8ho# lo#est su!account onl%/ check!o0? the :ccount field sho#s the su!account num!er and name instead? #hich is e0actl% #hat %ou need to identif% the assigned account "in this case? :irfare$'

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:dding Qetail #ith 8u!accounts


8a% %our compan%=s travel e0penses are sk% high and %ou #ant to start tracking #hat %ou spend on different t%pes of travel? such as airfare? lodging? and limousine services' 8u!accounts make it eas% to track details like these' 8u!accounts are noth* ing more than partitions #ithin a higher*level account "called the parent account$' Jhen %ou post transactions to su!accounts onl% "not the parent account$? %our reports sho# the su!totals for the su!accounts and a grand total for the parent account? such as the Travel account "num!er I&&I? sa%$ and its su!accounts :irfare "I&&E$? Podging "I&40$? and Transportation "I&42$? for e0ample' 8u!accounts also come in hand% for assigning similar e0penses to different lines on a ta0 form' 5or e0ample? the I>8 doesn=t treat all travel e0penses the same: Nou can deduct onl% half of %our meal and entertainment e0penses? #hile other travel e0penses are full% deducti!le' Meals and .ntertainment are separate su!accounts from Travel for this ver% reason'

CREATING ACCOUNT AND 7' I? <(1ve t1&ne) (n Q1i.0B((0s 31/ti2/e .1&&en.< 2&e?e&en.e+ t%e C1&&en.<
account is ifferent fro' the one liste the ro&9 o<n list@

there, choose the right currency in

If %ou do !usiness in more than one currenc%? see page I C to learn ho# to set up multiple currencies in QuickBooks' D' To a a escri&tion of the account, fill in the 1escri&tion .o"@

5or instance? %ou can define #hether a !ank account is linked to another account or give e0amples of the t%pes of e0penses that appl% to a particular e0pense account' The Qescription field can hold up to 2 I characters? #hich should !e more than enough' E' #f you see a fiel for an account nu'.erPsuch as Bank *cct@ >o@, !re it !ar *cct@ >o@, or si'&ly *ccount >o@Pty&e in the nu'.er for your real9<orl account at your financial institution Kchecking account, savings account, loan, an so onL@ If the account t%pe %ou chose in step 2 doesn=t include a field for an account num!er? %ou see the Bote field instead? #hich %ou can use to store an% additional information %ou #ant to document a!out the account' C' For a .ank account, in the Routing >u'.er .o", ty&e your .ankBs routing nu'.er@ This is the nine*digit num!er in funn%*looking font at the !ottom of %our checks' 10' To associate the account <ith a ta" for' an a s&ecific line on that for', in the Ta"92ine Ma&&ing ro&9 o<n list, choose the entry for the a&&ro&riate ta" for' an ta" line@ The Ta0*Pine Mapping field is set to _;nassigned` if %ou haven=t specified the ta0 form that %our compan% files #ith the I>8' 8ee page 12 to learn ho# to choose a ta0 form for %our compan%' If QuickBooks hasn=t assigned a ta0 line for %ou? %ou can scan the entries in the drop*do#n list for a likel% match' If %ou don=t find an entr% that seems right or if QuickBooks tells %ou the one %ou chose isn=t compati!le #ith the account t%pe? %our !est !et is to call %our accountant or the I>8' Nou can also get a hint for an appropriate ta0 line for the account %ou=re creating !% e0amining one of QuickBooks= sample files "page C$' To remove a ta0 line from an account? in the drop*do#n list? choose _;nassigned`'
>4TE

Belo# the Ta0*Pine Mapping field? %ou ma% see the .nter <pening Balance !utton' It=s eas% to figure out the opening !alance for a !rand*ne# accountUit=s KeroUso %ou can ignore this !utton' But if %ou=re setting up QuickBooks #ith accounts that e0isted prior to %our QuickBooks start date? those accounts do have opening !alances' .ven so? clicking the .nter <pening Balance !utton isn=t the !est #a% to specif% an opening !alance for an account %ou=re adding to %our compan% file' The !o0 on page D e0plains ho# to specif% opening !alances for all %our accounts in 2ust a fe# steps'

11' C/i.0 t%e *ve A Ne= ;1tt(n t( s*ve t%e .1&&ent *..(1nt *n)
one@ To save the account %ou 2ust created and close the :dd Be# :ccount #indo#? click 8ave - 4lose instead' 4lick 4ancel to discard the account*in*progress and close the :dd Be# :ccount #indo#' 12' #f the $et %& Bank Fee ialog .o" a&&ears, click 8es if you <ant to set u& a .ank account for online services@ Jhen %ou click Nes? QuickBooks= #indo#s close #hile %ou go through the setup process' "8ee 4hapter 24 to learn a!out online services and QuickBooks'$ If %ou #ant to set up Bank 5eeds laterUor neverUclick Bo'
FREQ%E>T28 *$:E1 Q%E$T#4>

CREATIN G
8;B:44<;BT8

Qoing <pening Balances >ight


Jhen I add an account to m% compan% file? can I 2ust click the .nter <pening Balance !utton and t%pe the !alance I #ant to start #ith in the <pening Balance fieldG That seems the most logical place for it' Nou can? !ut %our accountant ma% not !e too happ% a!out it' 5illing in the <pening Balance field from the :dd Be# :ccount #indo# "or in the .dit :ccount #indo#? for that matter$ auto* maticall% adds that !alance to the <pening Bal .)uit% account? #hich accountants consider slopp% !ookkeeping' Instead? the% usuall% recommend creating a 2ournal entr% from %our trial !alance for most of %our accounts' The three e0ceptions are %our :ccounts >eceiva!le ":>$? :c* counts ,a%a!le ":,$? and !ank accounts' Because QuickBooks re)uires customer names and vendor names in 2ournal entries that contain :> and :, accounts? %ou=re !etter off creating invoices and !ills to define %our :> and :, opening !alances' Jith !ank accounts? %ou can enter %our previous reconciled !alance in the <pening Balance field and then !ring the ac* count up to date !% recording all the transactions since %our last reconciliation' If %ou #ork #ith an accountant? ask her ho# she=d like %ou to enter opening !alancesUor !etter %et? have her do it' Jhoa] Jhat=s a 2ournal entr%G Jhat=s a trial !alanceG Aere=s the deal: Oournal entries "page 4&&$ are mechanisms for moving mone% !et#een accountsUon paper? that is' : trial !alance "page 4 2$ is a report "from %our accountant or %our old accounting s%stem$ that lists all %our accounts #ith their !alances in either the Qe!it or 4redit column' In the da%s of paper*!ased ledgers? !ean counters totaled the Qe!it and 4redit columns' If the totals #eren=t e)ual? the accountant had to track do#n the arithmetic error' Aappil%? QuickBooks= digital !rain does the math for %ou? #ithout errors' But it=s up to %ou to set up the 2ournal entr% properl% in the first place' If %ou look at the trial !alance on the first da% of %our fiscal %ear? it=s )uite simpleUit includes !alances onl% for %our !al* ance sheet accounts? not income and e0pense accounts' Nou can use these values to fill in a 2ournal entr% to assign all %our accounts= opening !alances: 5irst? set the 2ournal entr%=s date to the last da% of the previous fiscal %earW that #a%? %ou can start fresh for %our current fiscal %ear' Be0t? for each account e0cept %our :> and :, accounts? add a line in the 2ournal entr% #ith the account name and the !alance from %our trial !alance report in either the Qe!it or 4redit column' "If %ou didn=t use the <pening Balance field to set %our !ank account !alances? %ou can include %our !ank accounts in the 2ournal entr%? too'$ 5inall%? create invoices and !ills to define the opening !alances for %our :> and :, accounts' To see #hat an opening !alance 2ournal entr% looks like? head to page 4&C'

WORKING

:44<;BT8

Jorking #ith :ccounts


5rom time to time? %ou might need to modif% %our accounts to? for e0ample? change an account=s name or description' If %ou no longer need an account? %ou can hide it to keep %our chart of accounts list tid%' <n the other hand? if %ou created an ac* count !% mistake? %ou can delete it' :nd merging accounts comes in hand% if %ou find several accounts that represent the same thing' This section descri!es ho# to make all these changes to accounts'

Mo ifying *ccounts
If %ou stick to %our account num!ering and naming conventions? %ou=ll have fe# reasons to edit accounts' But 2ust in case? the .dit :ccount #indo# lets %ou t#eak an account=s name or description? ad2ust its num!er to make room for ne# accounts? or change its level in the chart of accounts hierarch%' Nou=re not likel% to change an account=s t%pe unless %ou chose the #rong one #hen %ou created the account' If %ou do need to change the account t%pe? !ack up %our QuickBooks file first "see page 02$ in case the change has effects that %ou didn=t anticipate' :lso? note that QuickBooks has several restrictions on changing account t%pes' Nou can=t change an account=s t%pe if: V It has su!accounts' V It=s an :ccounts >eceiva!le or :ccounts ,a%a!le account' "Nou also can=t change other t%pes of accounts to :> or :, accounts'$ V QuickBooks automaticall% created the account? like ;ndeposited 5unds' To modif% an account? in the 4hart of :ccounts #indo#? select the account %ou #ant to edit and then press 4trlT. or click :ccountM.dit :ccount' In the .dit :ccount #indo# that appears? make %our changes? and then click 8ave - 4lose'

Hi ing *ccounts
If %ou create an account !% mistake? %ou can delete it "%ou=ll learn ho# in a sec$' Ao#ever? !ecause QuickBooks drops %our financial transactions into account !uckets and %ou don=t #ant to thro# a#a% historical information? %ou=ll usuall% #ant to hide accounts that %ou don=t use an%more instead of deleting them' >ecords of past transactions are important? #hether %ou #ant to revie# the amount of !usiness %ou=ve received from a customer or the I>8 is asking unsettling )ues* tions' Jhen %ou hide an account in QuickBooks? the account continues to hold %our historical transactions? !ut it doesn=t appear in account lists? so %ou can=t choose it !% mistake #ith a misplaced mouse click' 5or e0ample? %ou #ouldn=t delete %our Butrition 8ervice income account 2ust !ecause %ou=ve discontinued %our nutrition consulting service to focus on selling %our ne# !ook? The 8ee 5ood Qiet' The income %ou earned from that service in the past needs to sta% in %our records' Aiding and reactivating accounts "5igure &* $ can also come in hand% if QuickBooks created a chart of accounts for %ou !ased on the industr% %ou chose during setup

"page 11$' If the chart of accounts it created includes accounts %ou don=t think %ou need? simpl% hide those accounts for the time !eing' That #a%? if %ou find %ourself sa%ing? +@osh? I #ish I had an account for the accumulated depreciation of vehicles?/ the solution might !e as simple as reactivating a hidden account'

J<>6IB@ JITA :44<;BT8

F i )%RE (9 5

Top: To hide an account? in the 4hart of :ccounts #indo#? right*click the account and choose Make :ccount Inactive from this shortcut menu' The ac* count and an% su!accounts that !elong to it disappear from the list' Bottom: To reactivate a hidden account? first displa% all %our accounts !% turning on the +Include inactive/ check!o0 at the !ottom of the 4hart of :c* counts #indo#' Jhen %ou do that? QuickBooks adds a column #ith an R as its heading and displa%s an R in that column for ever% hidden account in the list' To un*hide an account? click the R ne0t to its name' If the account has su!accounts? QuickBooks displa%s the :ctivate @roup dialog !o0W there? click Nes to reactivate the account and all its su!accounts'

1eleting *ccounts
Nou can delete an account onl% if nothing in QuickBooks references it in an% #a%' :n account #ith references is a red flag that deleting it might not !e the right choice' If %ou tr% to delete such an account? QuickBooks displa%s a message !o0 telling %ou it can=t delete the account and recommends making it inactive instead' If that isn=t

J<>6IB@ JITA :44<;BT8

enough to deter %ou? the sheer tedium of removing references to an account should nudge %ou to#ard hiding the account instead' If %ou insist on deleting an account? here are the conditions that prevent %ou from doing so and #hat %ou have to do to remove these constraints: V *n ite' uses the account@ If %ou create an% items that use the account as an income account? e0pense account? cost of goods sold account? or inventor% asset account? %ou can=t delete it' Nou have to edit the items to use other accounts first? as descri!ed on page 11&' V The account has su.accounts@ Nou have to delete all su!accounts !efore %ou can delete the parent account' V 6ayroll uses the account@ Nou can=t delete an account if %our pa%roll setup uses it' V * transaction references the account@ If %ou created even one transaction that uses the account? either edit that transaction to use a different account or hide the account if %ou #ant to keep the transaction the #a% it is'

V The account has a .alance@ :n account !alance comes from either an open* ing !alance transaction or other transactions that reference the account' Nou remove an account !alance !% deleting all the transactions in the account "or reassigning them to another account$' To delete transactions? in the 4hart of :ccounts #indo#? dou!le*click the account=s name' 5or accounts #ith !alances? QuickBooks opens a register #indo# #here %ou can select a transaction and then press 4trlTQ to delete it' 5or accounts #ithout !al* ances? QuickBooks opens an :ccount Quick>eport #indo#' To delete a transaction that appears in the report? dou!le*click the transaction' QuickBooks then opens a #indo# related to that transaction "for instance? the Jrite 4hecks #indo# appears if the transaction is a check$' >ight*click an%#here in that #indo# and choose Qelete 4heck or the corresponding delete command for the t%pe of transaction' :fter %ou=ve deleted all references to the account? in the 4hart of :ccounts #in* do#? select the account %ou #ant to delete? and then press 4trlTQ or choose :ccountMQelete :ccount' QuickBooks asks %ou to confirm that %ou #ant to delete the accountW click <6'

Merging *ccounts
8uppose %ou find multiple accounts for the same purposeU,ostage and Mail .0pense? sa%Ulurking in %our chart of accounts' Bo pro!lem] Nou can merge the accounts into one and then remind ever%one #ho creates accounts in QuickBooks a!out %our naming conventions' "If %ou haven=t gotten around to setting up naming conventions? see page 0 for some guidelines'$

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QUICKBOOKs 2014: tHe MIssInG

T#6

Before %ou merge accounts? see #hat %our accountant thinks' There=s no going !ack once %ou=ve merged t#o accountsUthe%=re com!ined for good' :nd the QuickBooks audit trail "page 44C$ doesn=t keep track of this kind of change' QuickBooks s#eeps all the transactions from the account %ou merge into the ac* count %ou keep? so %ou can merge accounts onl% if the%=re the same t%pe' ":s an e0perienced manager? %ou can imagine the havoc that merging income and e0pense accounts #ould cause in %our financial statements'$ In addition? accounts must !e at the same level in the chart of accounts listW in other #ords? the% !oth have to !e parent accounts or su!accounts' To move an account to another level? in the 4hart of :ccounts #indo#? position %our cursor over the small diamond to the left of the account=s name' Jhen the cursor turns into a four*headed arro#? drag to the left or right so that the account is indented the same amount as the other account'
>4TE

WORKING

:44<;BT8

If %ou find t#o accounts #ith similar names !ut different t%pes? those accounts might not represent the same thing' 5or instance? an e0pense account named Telephone .0' pro!a!l% contains %our monthl% telephone service costs? #hile an asset account named Telephone .)' might represent the mone% %ou invested in a !ig telephone s#itch that %our mega*corporation o#ns' In this situation? the accounts are different t%pes and should !e separate? although more meaningful names and descriptions #ould help differentiate them' Aere=s ho# to eliminate an e0traneous account: 1' $<itch to single9user 'o e, as escri.e on &age 4+3@ Nou have to !e in single*user mode to merge accounts' Be nice to %our fello# QuickBooks users !% making these changes outside of #orking hours' If %ou have to merge accounts during the #orkda%? remem!er to tell %our co#orkers the% can log into the program after %ou=ve s#itched the compan% file !ack to multiuser mode' 2' 6ress !trlO* to o&en the !hart of *ccounts <in o<@ Then, in the chart of accounts list, click the na'e of the account you <ant to eli'inate an then &ress !trlOE@ The .dit :ccount #indo# opens' &' #n the E it *ccount <in o<, change the account nu'.er an na'e to 'atch the values for the account you <ant to kee&@ :s long as %ou get the letters and num!ers right? QuickBooks takes care of matching uppercase and lo#ercase for %ou' If %ou don=t remem!er the num!er and name of the account %ou=re keeping? drag the 4hart of :ccounts #indo# and the .dit :ccount #indo# so %ou can see !oth at the same time' "If QuickBooks #on=t let %ou do that? %ou might have the <ne Jindo# preference turned onW see page I4D to learn ho# to change %our settings to displa% multiple #indo#s'$

CHA5teR #: ETTING U5 A CHART O!

71

J<>6IB@ JITA :44<;BT8

4' #n the E it *ccount <in o<, click $ave A !lose, rea the 'essage infor'ing you that the na'e is in use an asking if you <ant to 'erge the accounts, an then click 8es@ In the chart of accounts list? the account %ou renamed disappears? and an% transactions for that account are no# associated #ith the account %ou kept'

CHA5TER

4 8etting ;p 4ustomers? Oo!s? and Lendors

ou ma% !e fond of strutting around %our sales department proclaiming? +Bothing happens until some!od% sells something]/ :s it turns out? %ou can )uote that tired adage in %our accounting department? too' Jhether %ou sell products or services? the first sale to a ne# customer often initiates a flurr% of activ* it%? including creating a ne# customer in QuickBooks? assigning a 2o! for the #ork? and the ultimate goal of all this effortUinvoicing %our customer "sending a !ill for #hat %ou sold that states ho# much the customer o#es$ to collect some income' The people #ho !u% #hat %ou sell have plent% of nicknames: customers? clients? consumers? patrons? patients? purchasers? donors? mem!ers? shoppers? and so on' QuickBooks thro#s out the thesaurus and applies one moniker to ever% person or organiKation that !u%s from %ou: customer' In QuickBooks? a customer is a record of information a!out %our real*life customer' The program takes the data %ou enter a!out customers and fills in invoices and other sales forms #ith %our customers= names? addresses? pa%ment terms? and other info' >eal*#orld customers are essential to %our success? !ut do %ou need customers in %our QuickBooks compan% fileG .ven if %ou run a primaril% cash !usiness? creating customers in QuickBooks could still !e a good idea' 5or e0ample? setting up Quick* Books records for the repeat customers at %our store saves %ou time !% automaticall% filling in their information on each ne# sales receipt' If %our !usiness revolves around pro2ects? %ou can create a 2o! in QuickBooks for each pro2ect %ou do for a customer' To QuickBooks? a 2o! is a record of a real*life pro2ect that %ou agreed "or perhaps !egged$ to perform for a customerU remodeling a kitchen? designing an ad campaign? or #hatever' 8uppose %ou=re a

7#

CREATING plum!er and %ou regularl% do #ork for a general contractor' Nou could create several 2o!s? e*.% one for2/*.e <(1 2/13;: 3it% %(1se+ B(nes %(1se+ *n) Win?&e< CU TOMER %(1se' In Q1i.0B((0s+ <(1 .*n t%en t&*.0 in.(3e *n) ex2enses ;<

74

QUICKBOOKs 2014: tHe MIssInG

CHA5TER
Ao#ever? if %our compan% doesn=t take on 2o!s? %ou don=t have to create them in QuickBooks' 5or e0ample? retail stores sell products? not pro2ects' If %ou don=t need 2o!s? %ou can simpl% create %our customers in QuickBooks and then move on to invoicing them or creating sales receipts for their purchases' .ven !efore %ou start receiving pa%ments from customers? %ou=re going to do !usi* ness #ith vendors and pa% them for their services and products' The telephone compan%? %our accountant? and the su!contractor #ho installs Lenetian plaster in %our spec houses are all vendors' The information QuickBooks needs a!out vendors isn=t all that different from #hat %ou specif% for customers' This chapter guides %ou through creating customers? 2o!s? and vendors in Quick* Books' It also helps %ou decide ho# to appl% the program=s customer? 2o!? and vendor fields to %our !usiness' :nd %ou=ll learn ho# to manage the customer? 2o!? and vendor records %ou create in QuickBooks'
*2TER>*TE RE*2#T8

Tracking Qonors for Bonprofits


5or nonprofit organiKations? an% individual or organiKation that sends mone% is a donor? !ut the term +donor/ doesn=t appear in most QuickBooks editions' The ,remier Bonprofit edition of the program mentions donors? pledges? and other nonprofit terms? !ut QuickBooks ,ro and other ,remier editions focus single*mindedl% on customers? so %ou ma% have to get used to thinking +donor/ #henever %ou see +customer/ in QuickBooks' Pike#ise? a 2o! in QuickBooks is the e)uivalent of a contract or grant' If %ou need to report on a grant or contract? add a separate 2o! for it to the customer "er? donor$ #ho donated the funds' .ntering mem!ers or individual donors as separate customers can ma0 out QuickBooks= customer name limit or make the pro* gram run slo#l%' The .nterprise 8olutions edition of QuickBooks can handle a larger num!er of customers? !ut most nonprofits #ould choke at that edition=s price tag' To solve this dilemma? create customers in QuickBooks to represent generic pools? such as donors and mem!ers' 5or e0ample? create a customer called ;nrestricted and then post all unrestricted donations to that customer' Then? keep the details of %our donor and mem!er names in a separate donor data!ase? spreadsheet? or program designed specificall% for nonprofits'

4reating 4ustomers in QuickBooks


:las? %ou first have to persuade customers to #ork #ith %our compan%' But once %ou=ve cleared that hurdle? creating those customers in QuickBooks is eas%' "The !o0 a!ove descri!es ho# to use QuickBooks customer records to set up donors for non* profits? and the !o0 on page II provides some hints on keeping customers straight in QuickBooks'$ The program offers several methods for creating customer records: V QuickBooks $etu&@ Jhen %ou=re getting started #ith the program? %ou can use the QuickBooks 8etup dialog !o0 to )uickl% import piles of customer infor* mation "as #ell as vendor and emplo%ee info$ from %our email program or !%

76

CREATING .(2<in, *n) 2*stin, )*t* ?&(3 Ex.e/+ *s )es.&i;e) (n 2*,e 1F' $(1 .*n &et1&n t( t%e Q1i.0B((0s et12 )i*/(, ;(x *t *n< ti3e
V 4ne at a ti'e@ The Be# 4ustomer #indo# lets %ou create one customer at a time? although %ou can create several records in a ro# #ithout closing the #in* do#' The section +4reating a Be# 4ustomer/ on page II descri!es ho# to create customers #ith this #indo# and e0plains #hat each customer field represents'
T#6

CU TOMER

If %ou don=t add customers ver% often? %ou can create a customer record #hen %ou create that customer=s first invoice' The hand% _:dd Be#` entr% in ever% drop*do#n list of customers and 2o!s is %our ticket to 2ust*in* time customer and 2o! creation' V !o&ying ata@ Nou can also create customers in !atches' Jith the :dd(.dit Multiple Pist .ntries feature "page 11E in 4hapter I$? %ou can paste data from .0cel or cop% values from customer to customer' The 4ustomer 4enter "5igure 4*1$ is a one*stop shop for customers and 2o!s: creating? modif%ing? and vie#ing their records? and creating transactions for them' QuickBooks gives %ou four eas% #a%s to open the 4ustomer 4enter #indo#: V 5rom an%#here in the program? press 4trlTO' V :t the top of the 4ustomers panel on the QuickBooks Aome page? click 4ustomers' V <n the QuickBooks menu !ar? choose 4ustomersM4ustomer 4enter' V In the icon !ar? click 4ustomers'

F i )%RE 49 1

To create a ne# customer in the 4ustomer 4enter? click Be# 4ustomer Oo!MBe# 4ustomer' To vie# a customer=s details and transactions? click the customer=s name in the 4ustomers Oo!s ta! on the left side of this #indo#' If the Transactions ta! is selected instead? %ou=ll see the Be# 4ustomer feature on the 4ustomer 4enter menu !arW clicking it opens the Be# 4ustomer #indo#'

CHA5teR 4:

ETTING U5 CU TOMER + BOB +

76

CREATING CU TOMER
;4R1 T4 THE ;#$E

Making 4ustomers .as% to Identif%


In QuickBooks? the 4ustomer Bame and Lendor Bame fields don=t sho# the names that appear on invoices or !ills' Instead? the% displa% a code that uni)uel% identifies each customer or vendor so %ou can tell them apart' If %ou o#n a small compan%? %ou=re not likel% to mistakenl% create multiple records for the same customer or vendor' Nour 4ustomer and Lendor lists are short? so %ou pro!a!l% remem!er #hich one is #hich' .ven so? it=s a good idea to define a standard for names' 4onsistent naming can help %ou avoid having multiple records for the same customer or vendor !% preventing %ou from creating slightl% different values in the 4ustomer Bame or Lendor Bame field' 5or e0ample? %ou could end up #ith three customer records in QuickBooks all representing the same real*#orld customer? such as 4ales=s 4apers? 4ales 4apers? and 4ales4apers' The same holds true for vendors' QuickBooks doesn=t enforce naming conventions' 8o af ter %ou define rules that #ork for %our !usiness? %ou have to !e disciplined and appl% those rules each time %ou create a ne# customer or vendor' Nou=re free to use alphanumeric characters and punctuation in names' Aere are a fe# of the more common naming conventions: V The first fe< letters of the custo'erBs or ven orBs co'&any na'e, follo<e .y a uni?ue nu'eric i entifier@ This standard is eas% to appl% and differentiates customers or vendors as long as their names don=t all !egin #ith the same #ords' 5or e0ample? if the companies %ou do !usiness #ith aren=t imaginative? %our names could end up as Jine001? Jine002? and Jine00&' But if the companies are \infandels To @o? M erlot Mania ? and 4a!ernet 4a!inet? this s%stem #orks nicel%' V For in ivi uals, the last na'e follo<e .y the first na'e an a nu'eric #1 to 'ake the na'e uni?ue@ :lthough unusual names such as \aphod Bee!le!ro0 render a numeric IQ unnecessar%? using this standard ensures that all names are uni)ue' V The actual co'&any na'e <ith any &unctuation an s&aces o'itte @ >emoving spaces and punctuation from compan% names helps eliminate multiple versions of the same name' If %ou choose this convention? using capital let ter s at the !eginning of each #ord "called camel caps$ makes the name more reada!le' 5or instance? Icant!elieveits%ogurt is a headache #aiting to happen? !ut I4antBelieveItsNogurt looks more like its spaced and punctuated counterpart' V * uni?ue al&hanu'eric co e@ 4ustomer:Oo! drop*do#n menus and repor ts sor t entries !% the values in the 4ustomer Bame field of customer records' "Lendor drop* do#n menus and reports sort !% the Lendor Bame field'$ 4odes like R12&N4OQ use onl% a fe# characters to produce uni)ue identifiers? !ut the%=re also so cr%ptic that the% make it difficult to pick out the name %ou #ant in drop* do#n lists? or to sort reports in a meaningful #a%' 8tick #ith using part of the compan% name "at the !eginning of the name? since names appear alpha!eticall%$ unless %ou have hundreds or thousands of customers or vendors'

!reating a >e< !usto'er


Aere=s the short and s#eet method of creating one customer in QuickBooks: 1' #n the !usto'er !enter tool.ar, click >e< !usto'er A -o.M>e< !usto'er or &ress !trlO>@ The Be# 4ustomer #indo# opens "5igure 4*2$'

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QUICKBOOKs 2014: tHe MIssInG

CREATING CU TOMER
F i )%RE 492

:lthough the <pening Balance !o0 !eckons from !elo# the 4ustomer Bame field in the Be# 4ustomer #indo#? it=s !etter to leave it !lank' The !o0 on page IC e0plains the !est #a% to define a customer=s opening !alance? and the follo#ing sections e0plain #hat=s on each of this #indo#=s ta!s ":ddress Info? ,a%ment 8ettings? and so on$'

2' #n the !usto'er >a'e fiel , ty&e a uni?ue na'e or co e for this custo'er, follo<ing the na'ing convention youBve chosen Ksee the .o" on &age 00L@ This is the onl% field %ou have to fill inUthe rest are optional' &' To save that custo'erBs recor 4:@ an close the >e< !usto'er <in o<, click

To discard #hat %ou entered and close the #indo#? click 4ancel instead'
T#6

To create a 2o! for a customer? %ou have to close the Be# 4ustomer #indo# and open the Be# Oo! #indo#' 8o it=s a lot faster to create all %our customers first and then add the 2o!s for each one' The !o0 on page IE tells %ou ho# to prevent %our QuickBooks 4ustomer Pist from gro#ing out of control' The Be# 4ustomer "and .dit 4ustomer$ #indo#s group info onto several ta!s so it=s easier to find the fields %ou #ant to fill in' The contact and address info is all on the first ta!? :ddress Info' :ll the fields related to pa%ments are on the ,a%ment 8ettings ta!' The 8ales Ta0 8ettings ta! contains fields for sales ta0? so %ou can skip it entirel% if %ou don=t sell ta0a!le goods' The :dditional Info ta!? #hich used to !e a 2um!le of different t%pes of fields? no# holds a fe# miscellaneous fields like customer t%pe? sales rep? and custom fields %ou=ve created' Nou=ll learn a!out the

CREATING CU TOMER B(; In?( t*; (n 2*,e 84' T%e next seve&*/ se.ti(ns ste2 <(1 t%&(1,% e*.% t*; *n) t%e ?ie/)s e*.% (ne (??e&s'
>4TE

If %ou=ve turned on QuickBooks= multiple currenc% option "page I C$? a 4urrenc% !o0 appears at the top right of the Be# 4ustomer #indo#? as sho#n in 5igure 4*2' QuickBooks automaticall% fills in this !o0 #ith %our home currenc%? so %ou usuall% don=t have to change this value' But if the customer pa%s in a foreign currenc%? choose it in the 4urrenc% drop*do#n list' "QuickBooks creates a separate :ccounts >eceiva!le account for each currenc% %ou use'$

TR4%B2E$H44T#>) M4ME>T

Ao# Man% BamesG


If %ou=re a !ig fish in the small*!usiness pond? %ou might !ump up against limitations on the num!er of names %ou can add to QuickBooks' In QuickBooks ,ro and ,remier editions? the ma0imum num!er of names %ou can have in the 4ustomers? Lendors? .mplo%ees? and <ther Bames lists com!ined is 14? 00' Aere are a fe# techni)ues %ou can use to avoid ma0ing out %our name lists: V !onserve na'es@ Be frugal #ith names !% creating one customer or vendor to represent man% individual sales or purchases' 5or e0ample? %ou can aggregate all %our cash sales under a single customer named 4ash 8ales' <r %ou can com!ine all %our meal e0penses !% using a single vendor named Meals' Oust keep in mind that? !% doing so? %ou can=t produce reports !% individual names' Ao#ever? %ou can store a customer=s name in the Bill To field in sales forms or in the Memo field in a !ill? check? or credit card charge' V :ee& an eye on ho< 'any na'es you have@ ,ress 52 an%time to call up the ,roduct Information #indo# so %ou can vie# the num!er of entries %ou have in each list' The% appear in the Pist Information !o0 on the right side of the #indo#' V %&gra e@ If there=s no getting around %our compan%=s glutton% for names? QuickBooks .nterprise 8olutions lets %ou add more than 100?000 names? although Intuit #arns %ou that the program might not run as )uickl% as the num!er of names increases'

E>TER#>) !4>T*!T #>F4RM*T#4> If %ou plan to !ill %our customers? ship them products? or call them to make them feel appreciated? address and contact information is important' Nou record this info on the Be# 4ustomer #indo#=s :ddress Info ta!' Aere=s a guide to #hat %ou enter on this ta!: V !o'&any >a'e@ ;nlike the 4ustomer Bame field? #here %ou enter #hatever name or code %ou #ant to use to identif% this customer? this field is #here %ou enter the customer=s name as %ou #ant it to appear on invoices and other forms %ou create' QuickBooks automaticall% copies #hat %ou t%pe here into the Invoice(Bill To !o0 !elo#' V !ontact@ To address invoices? letters? and other compan% communications? enter the primar% contact=s salutation or title? first name? middle initial? and last name in the appropriate fields' QuickBooks automaticall% copies #hat %ou t%pe

CREATING in t%ese ?ie/)s int( t%e Inv(i.eGBi// T( ?ie/)s' $(1 .*n */s( ?i// in t%e B(; Tit/e ;(x =it% t%e .(nt*.ts tit/e'
>4TE

CU TOMER

:fter %ou create a customer? %ou can add additional contacts for that customer in the 4ustomer 4enter' ,age D4 tells %ou ho#'

FREQ%E>T28 *$:E1 Q%E$T#4>

<pening :ct
8hould I add an opening !alance for ne# customersG 8ince the <pening Balance field is al#a%s visi!le at the top of the Be# 4ustomer #indo# "5igure 4*2$? %ou might think %ou should fill it in' But %ou=re actuall% !etter off skipping it altogether' .ntering an opening !alance as of a specific date is a shortcut that eliminates having to create the invoices that generate the customer=s current !alance' But that shortcut comes at a price: If customers haven=t paid? then %ou might have a hard time collecting the mone%? especiall% if %ou can=t tell them #hat services and products %ou delivered? ho# much the% cost? the invoice num!ers? and #hen the invoices #ere due' In addition? #hen %our customers do pa%? %ou can=t accept those pa%ments against specific invoices to track %our :ccounts >eceiva!le' The !est #a% to record a customer =s !alance is to create QuickBooks invoices for the invoices the customer hasn=t paid %et "called +open invoices/$' That #a%? %ou=ll have complete documentation of those sales and the corresponding !alance in %our :ccounts >eceiva!le account' :lso? %ou can then appl% the pa%ments that come in to settle those invoices' 8ee 4hapter 10 to learn all a!out invoicing'

T#6

The :ddress Info ta! has additional fields for contact information? including four phone num!ers? t#o email addresses? the compan%=s #e!site? and a field la!eled +<ther 1'/ If %ou look closel%? %ou=ll notice that the la!els for these eight fields have do#n arro#s on them? so %ou can set these fields to an% of 24 contact*related fields? such as Aome ,hone? PinkedIn? 5ace!ook? T#itter? ;>P 1? and 8k%pe IQ' V #nvoiceJBill To@ QuickBooks uses the address %ou enter in this !o0 on invoices' To edit this address? click the .dit !utton to its right "it has a pencil icon on it$' Then? in the .dit :ddress Information dialog !o0? fill in the street address? cit%? state? countr%? and postal code? or paste that info from another program' QuickBooks automaticall% turns on the +8ho# this #indo# again #hen address is incomplete or unclear/ check!o0? #hich tells the program to notif% %ou #hen %ou forget a field like 4it% or #hen the address is am!iguous' 5or e0ample? sa% %ou fill in the Invoice(Bill To !o0 #ith +8anta 4laus? Borth ,ole'/ If %ou click 4op%`` to use that address for a shipping address? QuickBooks opens the .dit :ddress Information dialog !o0 so %ou can flesh out the address #ith a street? cit%? and arctic postal code'
T#6

Nou can )uickl% enter addresses and contact info for all %our customers !% importing data from another program "page 12D$ or !% using QuickBooks= :dd(.dit Multiple Pist .ntries feature "page 11E$'

Q;I46B<<68

altogether' If the !illing and shipping addresses are the same? click +4op%``/ to replicate the contents of the Invoice(Bill To field in the 8hip To field' "The greater*than s%m!ols on the !utton indicate the direction that QuickBooks cop* ies the addressUleft to right'$ <ther#ise? click the T !utton to this field=s right and fill in the :dd 8hipping :ddress Information dialog !o0'
T#6

Nou can define more than one ship*to address for a single customer? #hich is perfect if that customer has multiple locations' To add another ship*to address? click the T !utton to the field=s right and fill in the :dd 8hipping :ddress Information dialog !o0' <nce %ou=ve added shipping addresses? %ou can choose the one %ou #ant in the 8hip To drop*do#n list' Jhen the shipping address %ou use most often is visi!le? turn on the +Qefault shipping address/ check!o0 !elo# the 8hip To field to tell QuickBooks to pick that address automaticall%' 4lick the .dit !utton "the pencil icon to the field=s right$ or the Qelete !utton "the trash can icon$ to modif% or remove a shipping address? respectivel%' E>TER#>) 6*8ME>T #>F4RM*T#4> The ,a%ment 8ettings ta!? sho#n in 5igure 4*&? is the place to indicate ho# the customer pa%s and ho# much credit %ou=re #illing to e0tend'

F i )%RE 49(

8everal of the fields on this ta! use QuickBooks= lists' To 2ump directl% to the list entr% %ou #ant? in an% te0t !o0 #ith a drop*do#n list? t%pe the first fe# characters of the entr%' QuickBooks selects the first entr% that matches #hat %ou=ve t%ped and continues to reselect the !est match as %ou continue t%ping' Nou can also scroll to the entr% in the list and click to select it' If the entr% %ou #ant doesn=t e0ist? click _:dd Be#` to create it'

Nou can use the follo#ing fields to specif% the customer=s pa%ment info: V *ccount >o@ :ccount num!ers are optional in QuickBooks' Parge accounting programs often assign uni)ue account num!ers to customers? #hich reduces the time it takes to locate a customer=s record' In QuickBooks? the 4ustomer Bame field #orks like an identifier? so %ou=re !est off reserving the :ccount Bo' field for an account num!er generated !% one of %our other !usiness s%stems'

CREATING : 5*<3ent Te&3s' W%*t <(1 se/e.t %e&e &e2&esents t%e 2*<3ent
tomer has agreed to' The entries in this drop*do#n list come from the Terms Pist "page 14&$? #hich QuickBooks uses for !oth pa%ment terms for %our customers and the ones %ou accept from %our vendors' <ut of the !o0? this list includes several of the most common pa%ment terms? such as +Que on receipt/ and Bet &0? !ut %ou can choose _:dd Be#` at the top of this list to define additional pa%ment terms' If %ou leave this field !lank in a customer=s record? %ou have to choose the pa%ment terms ever% time %ou create an invoice for that customer' Q;I46B<<68

V 6referre 1elivery Metho @ 4hoose .*mail? Mail? or Bone to identif% the method that %our customer prefers for receiving information' If %ou choose .*mail? QuickBooks automaticall% turns on the .*mail check!o0 #hen %ou create forms "such as invoices$ for this customer' The Mail method represents QuickBooks Billing 8olutions "see the !o0 on page &01$? an add*on QuickBooks service for mailing invoices "additional fees appl%$' 4hoose Bone if %ou t%pi* call% print documents and mail them the old*fashioned #a%' Nou can=t add a ne# entr% to the ,referred Qeliver% Method list? so if %ou use carrier pigeons to correspond #ith %our incarcerated customers? %ou=ll 2ust have to choose Bone and remem!er that preference' V 6referre 6ay'ent Metho @ 4hoose the form of pa%ment that the customer uses most fre)uentl%' This drop*do#n list includes several common ones? such as 4ash? 4heck? and Lisa? !ut %ou can add others !% choosing _:dd Be#`' The pa%ment method %ou specif% appears automaticall% in the >eceive ,a%ments #indo# "page &2I$ #hen %ou choose this customer' If a regular customer pa%s #ith a method different from the one %ou chose here? %ou can simpl% select that method in the >eceive ,a%ments #indo#' V !re it car infor'ation@ 5or credit card pa%ments "see page &01 to learn a!out QuickBooks= credit card processing service$? %ou can specif% the customer=s card num!er? the name on the card? the !illing address? the \ip(postal code? and the e0piration date' "Nou can enter onl% one credit card num!er for each customer'$

>4TE

If %ou store customer credit card num!ers in QuickBooks? turn on the 4ustomer 4redit 4ard ,rotec* tion feature "choose 4ompan%M4ustomer 4redit 4ard ,rotection and then click .na!le ,rotection$' That #a%? the program helps %ou compl% #ith credit card industr% securit% re)uirements "page D1$' 5or e0ample? an% user #ho vie#s complete credit card information has to create a comple0 pass#ord' In addition? QuickBooks doesn=t let %ou store the card=s securit% code "the three*digit code on the !ack of the card$ !ecause doing so violates %our merchant account agreement and ,4I ",a%ment 4ard Industr%$ standards' V !re it 2i'it@ Nou can specif% the amount of credit that %ou=re #illing to e0tend to the customer' If %ou do? then QuickBooks #arns %ou #hen an order or invoice e0ceeds this customer=s credit limit? !ut that=s as far as it goesUit=s up to %ou to re2ect the order or ship %our products 4<Q' If %ou don=t plan to enforce the credit limits %ou assign? don=t !other entering a value in this field'

CREATING CU TOMER : 5&i.e Ceve/' M(&e (?ten t%*n n(t+ .1st(3e&s 2*< )i??e&ent 2&i.es ?(& t%e s*3e 2&()1.t' B1st t%in0 *;(1t t%e /*;<&int% (? 2&i.in,
for instance' In QuickBooks? price levels represent discounts or markups that %ou appl% to transactions' 5or e0ample? %ou might have one price level called Top20? #hich applies a 20 percent discount for %our !est customers? and another price level called :untMa!el that e0tends a 0 percent discount to %our :unt Ma!el !ecause she fronted %ou the mone% to start %our !usiness' ",age 1&D e0plains ho# to define price levels'$ <nce %ou create a price level? %ou can tell Quick* Books to appl% it to ever% transaction for a customer !% choosing it in this !o0'

V * 4nline 6ay'ent 2ink to #nvoices@ <nline pa%ment links on invoices allo# customers to pa% %ou through the Intuit ,a%mentBet#ork either !% making a pa%ment directl% from their !ank accounts into %ours or !% credit card' "The fees %ou pa% for this service var% !ased on ho# the customers pa%$' Ao#ever? setting up this feature re)uires a couple of steps' 5irst? !e sure to sign up for the Intuit ,a%mentBet#ork service' If %ou don=t sign up and %our customers click an online pa%ment link? the%=ll see a message telling them that %ou haven=t signed up for the service %et' 4hoose 4ustomersMIntuit ,a%mentBet#orkM:!out ,a%mentBet#ork to learn a!out the service and ho# to enroll' ",age 2&& descri!es ho# online pa%ment links #ork'$ <n the ,a%ment 8ettings ta!? %ou can use this field to tell QuickBooks #hich online pa%ment option to use for this customer' +5ollo# 4ompan% Qefault/ applies the setting that %ou selected in QuickBooks= preferences "page II1$' 4hoosing +:l#a%s <B "!ank onl%$/ means the customer can pa% onl% through a !ank account regardless of %our compan% preference' Jith +:l#a%s <B "!ank or credit card$?/ the customer can pa% !% !ank account or credit card' +:l#a%s <55 for this customer/ means QuickBooks doesn=t displa% the online pa%ment link on this customer=s invoices' $6E!#F8#>) $*2E$ T*F #>F4RM*T#4> The 8ales Ta0 8ettings ta! appears #hether or not %ou turn on QuickBooks= 8ales Ta0 preference "page IID$' Ao#ever? if sales ta0 isn=t turned on? the fields on this ta! are gra%ed out' If the customer pa%s sales ta0? choose Ta0 in the Ta0 4ode drop* do#n list' Then? in the Ta0 Item drop*do#n list? choose the option that specifies the ta0 rate the customer pa%s' "4hapter 21 has the full scoop on setting up? charging? and remitting sales ta0'$ $6E!#F8#>) *11#T#4>*2 !%$T4MER #>F4RM*T#4> The Be# 4ustomer #indo#=s :dditional Info ta! serves up a fe# fields that let %ou categoriKe %our customers' Aere are the fields %ou can fill in and some #a%s to use them: V !usto'er Ty&e@ Nou might #ant to classif% customers so %ou can send cus* tomiKed communications to each t%pe or determine #hich t%pes are the most

profita!le' "Turn to page E2 to learn ho# to set up customer and 2o! t%pes and different #a%s to use them'$ <nce %ou=ve set up customer t%pes? %ou can categoriKe a customer !% choosing from this drop*do#n list? #hich displa%s the entries from %our 4ustomer T%pe Pist? such as government? health insurance? or private pa%? if %ou run a healthcare compan%' V Re&@ 4hoosing a name in this field links a customer to a sales representative? #hich is helpful if %ou #ant to track sales reps= results' But reps don=t have to !e sales representatives: <ne of the !est #a%s to provide good customer service is to assign a customer service rep to each customer' Jhen %ou choose _:dd Be#` here to create a ne# >ep entr% "page 140$? %ou can select e0isting names from the .mplo%ee Pist? Lendor Pist? and <ther Bames Pist? or even add a ne# name to one of those lists to use as a rep' V !usto' Fiel s@ QuickBooks offers 1 custom fields? #hich %ou can use to store important info that QuickBooks doesn=t include fields for out of the !o0' Because custom fields don=t use drop*do#n lists? %ou have to t%pe %our entries and take care to enter values consistentl%' The !o0 !elo# has more a!out custom fields'
)EM #> THE R4%)H

4;8T<M.>8 IB Q;I46B<<68

CREATIN

Qefining 4ustom 5ields for Pists


QuickBooks= customer? vendor? emplo%ee? and item records include lots of fields %ou can fill in? !ut those fields ma% not cover all the information %ou need' 5or e0ample? %ou might #ant to note #hich !ranch office supports a customer' <r for emplo%ees? %ou could track #hether the% make charita!le contri!utions that %our compan% matches' QuickBooks= ans#er to this issue is custom fields' :fter %ou create a custom field and appl% it to a list? QuickBooks adds the custom field=s la!el and a te0t !o0 to the :dditional Info ta! "5igure 4*4? !ackground$' Nou have to t%pe %our entries in custom field !o0es each timeW there=s no drop*do#n list or a #a% to compare it #ith te0t %ou entered in other records' 8o it=s up to %ou to make sure that %our data entr% is correct and consistent' To set up a custom field? follo# these steps: 1' In the appropriate Be# or .dit #indo# "Be# 4ustomer or .dit Lendor? for e0ample$? click the :dditional Info ta!' 2' 4lick the Qefine 5ields !utton' The +8et up 4ustom 5ields for Bames/ dialog !o0 "5igure 4*4? foreground$ opens' &' In one of the 1 Pa!el cells? t%pe a name for the field' 4' If %ou=re associating a custom field #ith a customer? ven* dor? or emplo%ee record? click the cell for the appropriate list "4ust? Lend? or .mpl$ and QuickBooks puts a checkmark there' 5or e0ample? the >egion custom field could appl% to !oth the 4ustomer:Oo! Pist and the Lendors Pist? so %ou=d #ant checkmarks in !oth the 4ust and Lend columns' Nou can associate up to seven custom fields #ith the 4ustomers list? Lendors list? or .mplo%ees list' The Items list can have up to five custom fields associated #ith it' ' 4lick <6? and QuickBooks adds %our custom field to the :dditional Info ta!'

4;8T<M.>8 IB Q;I46B<<68

F i )%RE 494

The +8et up 4ustom 5ields for Bames/ dialog !o0 "#hich opens #hen %ou click Qefine 5ields in a Be# or .dit #indo# for customers? vendors? or emplo%ees$ lets %ou create up to 1 custom fields' To associate a custom field #ith a customer? vendor? or emplo%ee? click the corresponding cell in the field=s ro# in the ta!le' Nou can associate a custom field #ith one or more t%pes of namesW for e0ample? #ith !oth customers and emplo%ees'

>4TE

The Be# 4ustomer #indo# also includes a Oo! Info ta!? #hich "not surprisingl%$ has fields for 2o!* related information' If %ou don=t track 2o!s? %ou could use this ta!=s Oo! 8tatus field to store the overall status of %our #ork for the customer? although a contact*management or pro2ect*management program is pro!a!l% more useful' :nd if a customer hires %ou to do more than one 2o!? skip the Oo! Info ta!? since %ou=ll create separate 2o!s to track the info? as descri!ed on page D '

ing More !usto'er !ontacts

Jhen %ou create a customer? %ou can specif% information a!out one contact "t%pi* call% the primar% contact$ on the :ddress Info ta! of the Be# 4ustomer #indo# "page IE$' :fter %ou finish creating the customer=s record? %ou can then add more contacts to it' 5or e0ample? %ou might add contacts for the person #ho handles da%*to*da% !illing )uestions? the emplo%ee #ho resolves shipping issues? and the o#ner in case %ou need to escalate a pro!lem' Nou can also edit or delete contacts as the people %ou deal #ith change offices or transfer to ne# 2o!s' Jhen %ou select a customer in the 4ustomer 4enter=s 4ustomers - Oo!s list? %ou see contact info for that customer on the right side of the #indo#' To add more contacts to the customer=s record? click the 4ontacts ta! in the #indo#=s lo#er* right pane "5igure 4* $' To add a ne# contact? click Manage 4ontacts at the !ottom of the pane? and then choose :dd Be# to open the 4ontacts #indo#' Then fill in the !o0es? such as Oo! Title? 5irst Bame? Past Bame? and so on' :fter %ou finish filling in the !o0es? click +8ave and Be#/ to add another contact or +8ave and 4lose/ to close the #indo#'

CREATING BOB
F i )%RE 495

IN

To add another contact? click Manage 4ontactsM:dd Be#? as sho#n here' :n%time %ou #ant to see information a!out one of the additional contacts %ou=ve created? select the contact in the 4ontacts ta! sho#n here? and then click Manage 4ontactsM.dit 8elected 4ontact' To delete the selected contact instead? click Manage 4ontactsMQelete 8elected 4ontact'

>4TE

The fields in the 4ontacts dialog !o0 are a su!set of those on the :ddress Info ta! in the Be# 4ustomer #indo#' The% include Oo! Title and Bame fields? as #ell as five other fields that are initiall% set to Jork ,hone? Jork 5a0? Mo!ile? Main .mail? and :dditional .mail' Ao#ever? if %ou contact the person via 8k%pe or PinkedIn? click the field la!el and then choose the appropriate t%pe of contact info from the drop*do#n list to s#itch the customer field associated #ith the !o0'

4reating Oo!s in QuickBooks


,ro2ect*!ased #ork means that %our current effort for a customer has a !eginning and an end "even if it sometimes feels like the pro2ect #ill last forever$' Jhether %ou !uild custom computer s%stems or custom homes? %ou can use QuickBooks= 2o!*tracking features to anal%Ke financial performance !% pro2ect' 8uppose %ou #ant to kno# #hether %ou=re making more mone% on the mansion %ou=re !uilding or on the !ungalo# remodel? and the percentage of profit %ou made on each pro2ect' :s long as %ou create 2o!s for each pro2ect %ou #ant to track? QuickBooks can calculate these financial measures'
>4TE

If %ou sell products and don=t give a hoot a!out 2o! tracking? %ou can simpl% invoice customers for the products %ou sell #ithout ever creating a 2o! in QuickBooks'

O<B8 IB Q;I46B<<68

CREATIN

In QuickBooks? 2o!s cling to customers like !a!% possums to their mothers' : Quick* Books 2o! al#a%s !elongs to a customer' In fact? if %ou tr% to create a 2o! !efore %ou create a customer? %ou=ll see a message !o0 telling %ou to create a customer first' Both the Be# 4ustomer and .dit 4ustomer #indo#s include ta!s for customer info and 2o! info' 8o #hen %ou create a customer? in effect? %ou create one 2o! automati* call%? !ut %ou can add as man% as %ou need' This section e0plains ho#'

!reating a >e< -o.


Because 2o!s !elong to customers? %ou have to create a customer "page II$ !efore %ou can create an% of that customer=s 2o!s' <nce the customer e0ists? follo# these steps to add a 2o! to the customer=s record: 1' #n the !usto'er !enterBs !usto'ers A -o.s ta., right9click the custo'er you <ant to create a Io. for, an then choose * -o. fro' the shortcut 'enu@ Nou can also select the customer in the 4ustomers - Oo!s ta!? and then? in the 4ustomer 4enter tool!ar? choose Be# 4ustomer - Oo!M:dd Oo!' .ither #a%? the Be# Oo! #indo# opens' 2' #n the -o. >a'e .o", ty&e a na'e for the Io.@ This name #ill appear on invoices and other customer documents' Nou can t%pe up to 41 characters in this !o0' The !est names are short !ut easil% recogniKa!le !% !oth %ou and the customer' QuickBooks fills in most of the remaining 2o! fields #ith the information %ou entered for the customer associated #ith this 2o!' The onl% time %ou have to edit the fields on the :ddress Info? ,a%ment 8ettings? and :dditional Info ta!s is #hen the information on these ta!s is different for this 2o!' 5or e0ample? if materials for the 2o! go to a different shipping address than the customer=s? t%pe the address in the fields on the :ddress Info ta!' &' #f you <ant to a info a.out the Io. ty&e, ates, or status, click the -o. #nfo ta. an enter values in the a&&ro&riate fiel s@ If %ou add 2o! t%pes "page E2$? %ou can anal%Ke 2o!s #ith similar characteristics? no matter #hich customer hired %ou to do the #ork' 5illing in the Oo! 8tatus field lets %ou see #hat=s going on !% scanning the 4ustomer 4enter? as sho#n in 5igure 4*I' If %ou #ant to see #hether %ou=re going to finish the #ork on schedule? %ou can document %our estimated and actual dates for the 2o! in the Qate fields "the !o0 on page DD has more a!out these fields$'
>4TE

To change the values %ou can choose in the Oo! 8tatus field? modif% the status te0t in QuickBooks= preferences "see page I E$' 4' *fter youBve fille in the Io. fiel s, click 4: to save the Io. an close the >e< -o. <in o<@

CREATING BOB
F i )%RE 490

IN

Jhen %ou select a 2o! in the 4ustomer 4enter "2o!s are in* dented !elo# their customers$? the Oo! Information section of the #indo# displa%s Oo! 8tatus? 8tart Qate? ,ro2ected .nd? and .nd Qate "if %ou=ve added values to those fields$' If %ou #ant to edit info %ou=ve entered for a 2o!? dou!le*click the 2o!=s name in the 4ustom* ers - Oo!s ta! to open the .dit Oo! dialog !o0'

%6 T4 $6EE1

8pecif%ing Oo! Information


The fields on the Be# Oo! "and .dit Oo!$ #indo#=s Oo! Info ta! are optionalU%ou can invoice a customer even if ever% one is !lank' Ao#ever? !oth the Oo! 8tatus and Oo! T%pe fields can help %ou anal%Ke %our !usiness performance? past and future' Nou don=t even have to use the terms that QuickBooks provides in the Oo! 8tatus drop*do#n listW %ou can customiKe the list !% ad2usting the Oo!s and .stimates preferences descri!ed on page I E' Aere=s a guide to the Oo! Info ta!=s fields and ho# %ou can put them to use: V -o. 1escri&tion@ Aere=s #here %ou can t%pe a detailed description to remind %ou a!out the #ork in case the 2o!=s name doesn=t ring an% !ells' V -o. Ty&e@ If %ou categoriKe %our 2o!s? choose the 2o! t%pe "page 14&$ from this drop*do#n menu' V -o. $tatus@ This field can indicate trends in %our !usiness' If several 2o!s are set to ,ending status? for e0ample? a resource crunch might !e in %our future' 6roIecte En @ If %ou=ve estimated #hen %ou=ll complete the 2o!? select that date here'

V $tart 1ate@ 8et this field to the date %ou started the 2o!' V

V En 1ate@ Jhen %ou complete the 2o!? set this field to the date %ou actuall% finished up' B% comparing the actual end date #ith %our pro2ection? %ou can improve future estimates or change ho# %ou #ork in order to finish 2o!s on time'

L.BQ<>8

ETTING

8etting ;p Lendors
The methods for creating vendor records are similar to those for creating customers: V QuickBooks $etu&@ Nou can use the QuickBooks 8etup dialog !o0 to )uickl% import vendor information from %our email program or !% cop%ing and pasting data from .0cel? as descri!ed on page 1E' V 4ne at a ti'e@ The Be# Lendor #indo# lets %ou create one vendor at a time? although %ou can create several records in a ro# #ithout closing the #indo#' The section +4reating a Lendor/ on page DE descri!es ho# to create vendors #ith this #indo# and e0plains #hat each field represents' V !o&ying ata@ Nou can also create multiple vendor records' Jith the :dd(.dit Multiple Pist .ntries feature "page 11E in 4hapter I$? %ou can paste data from .0cel or cop% values from vendor to vendor'
T#6

Nou can create a vendor record #hen %ou create that vendor=s first !ill "page 1DI$' 8impl% choose _:dd Be#` in the .nter Bills #indo#=s Lendor drop*do#n list' V #'&orting ata@ This method is another fast #a% to create oodles of vendor records' :fter %ou create a map !et#een QuickBooks= fields and fields in an* other program? %ou can transfer all %our vendor info? as descri!ed on page ICD' The Lendor 4enter makes creating? editing? and revie#ing vendors in QuickBooks a !reeKe' This #indo# lists the details of %our vendors and their transactions in one eas%*to*use dash!oard' To open the Lendor 4enter #indo#? choose LendorsM Lendor 4enter or? in the Lendors panel of the QuickBooks Aome page? click Lendors'

!reating a /en or
Nou create a ne# vendor from the Lendor 4enter #indo# !% pressing 4trlTB or? in the Lendor 4enter menu !ar? !% clicking Be# LendorMBe# Lendor' .ither #a%? the Be# Lendor #indo# opens' Man% of the fields in this #indo# should !e familiar from creating customers in QuickBooks' 5or e0ample? the Lendor Bame field corresponds to the 4ustomer Bame field? #hich %ou might remem!er is actuall% more of a code than a name' ;se the same sort of naming convention for vendors that %ou use for customers "see the !o0 on page II$' :nd? as #ith customer records? %ou=re !etter off leaving the <pening Balance field !lank and !uilding %our current vendor !alance !% entering the invoices or !ills the% send' The follo#ing sections e0plain ho# to fill out the rest of the fields in a vendor record'

E>TER#>) *11RE$$ #>F4RM*T#4> If %ou print checks and envelopes to pa% %our !ills? %ou=ll need address and contact information for %our vendors' The :ddress Info ta! in the Be# Lendor #indo# has fields for the vendor=s address and contact info? #hich are almost identical to cus* tomer address and contact fields? so see page IE if %ou need help filling them in' 6*8ME>T $ETT#>)$ The fields related to pa%ments reside on the ,a%ment 8ettings ta!' Aere are the fields and ho# %ou fill them in: V *ccount >o@ Jhen %ou create customers? %ou can assign account num!ers to themW #hen it=s %our turn to !e a customer? %our vendors return the favor and assign an account num!er to %our compan%' If %ou fill in this !o0 #ith the account num!er that the vendor gave %ou? QuickBooks prints it in the memo field of checks %ou print' .ven if %ou don=t print checks? keeping %our account num!er in QuickBooks is hand% if a )uestion arises a!out one of %our pa%ments' V 6ay'ent Ter's@ 4hoose the pa%ment terms that the vendor e0tended to %our compan%' The entries in this drop*do#n list come from the Terms Pist "page 14&$? so the%=re the same as for customers' 6rint >a'e 4n !heck *s@ QuickBooks automaticall% fills in this !o0 #ith #hat* ever %ou enter in the vendor=s 4ompan% Bame field on the :ddress Info ta!' Jhen %ou print checks? QuickBooks fills in the pa%ee field #ith the contents of this !o0? so to print a different name? simpl% edit #hat=s in this !o0' 5or e0ample? sa% %ou hire su!contractors and fill in the 4ompan% Bame field #ith last names follo#ed !% first names' Nou can then fill in this !o0 #ith first name follo#ed !% last name so the pa%ee on a check appears the #a% people=s names are usuall% #ritten' !re it 2i'it@ If the vendor has set a credit limit for %our compan% "like Y&0?000 from a !uilding suppl% store$? t%pe that value in this !o0' That #a%? QuickBooks #arns %ou #hen %ou create a purchase order that pushes %our credit !alance a!ove this limit'

8.TTIB@ ;, L.BQ<>8

V Billing Rate 2evel@ If %ou use the 4ontractor? ,rofessional 8ervices? or :ccoun* tant edition of QuickBooks? this is another list that lets %ou set up custom !illing rates for emplo%ees and vendors' Billing rates let %ou price the services %ou sell the same #a% a ,rice Pevel helps %ou ad2ust the prices of products %ou sell' 8a% %ou have three carpenters: a ne#!ie? an old*timer? and a finish carpenter' Nou can set up a Billing >ate Pevel for each one !ased on e0perience' Then? #hen %ou create an invoice for %our carpenters= !illa!le time? QuickBooks automati* call% applies the correct rate to each carpenter=s hours'

8.TTIB@ ;, L.BQ<>8

$*2E$ T*F $ETT#>)$ QuickBooks keeps the t#o sales ta0Xrelated fields on the Ta0 8ettings ta!' Aere=s #hat the% do: V /en or #1@ Nou have to put the vendor=s .mplo%er Identification Bum!er ".IB$ or 8ocial 8ecurit% num!er in this field onl% if %ou plan to create a 10CC for this vendor'

V /en or eligi.le for 10++@ Turn on this check!o0 if %ou=re going to create a 10CC for this vendor "page 4DI$'
>4TE

Jhen %ou hire su!contractors to do #ork for %ou? %ou have them fill out a J*C form? #hich tells %ou the su!contractor=s Ta0pa%er Identification Bum!er' Then? at the end of the %ear? %ou fill out a 10CC ta0 form that indicates ho# much %ou paid them? #hich the% use to prepare their ta0 returns' 8ee page 4DI to learn ho# QuickBooks can help #ith 10CCs' F#22#>) #> EF6E>$E *!!4%>T$ *%T4M*T#!*228 Jhen %ou #rite checks? record credit card charges? or enter !ills for a vendor? %ou have to indicate the e0pense account to #hich %ou #ant to assign the pa%ment' The :ccount 8ettings ta! of the Be# Lendor "and .dit Lendor$ #indo# lets %ou tell QuickBooks #hich accounts %ou t%picall% use' Ao#ever? the easiest approach to filling in e0pense accounts is to tell QuickBooks to automaticall% recall %our previous transactions' That #a%? #hen %ou record a !ill? check? or credit card charge for a vendor? the program creates a ne# !ill using the total amount and the accounts %ou chose on the previous transaction' ,age I 4 e0plains ho# to set the +:utomaticall% recall last transaction for this name/ preference' *11#T#4>*2 #>F4 Jith all the Be# Lendor #indo#=s ta!s? the :dditional Info ta! is rather sparse? #hich is pro!a!l% #h% it=s the last ta! in the list' Aere are its fields and #hat %ou can do #ith them: V /en or Ty&e@ If %ou #ant to classif% vendors or generate reports !ased on their t%pes? choose an entr% in this drop*do#n list or choose _:dd Be#` to create a ne# t%pe in the Lendor T%pe Pist "page 142$' 5or e0ample? if %ou assign a Ta0 t%pe to all the ta0 agencies %ou remit ta0es to? %ou can easil% prepare a report of %our ta0 lia!ilities and pa%ments'

V !usto' Fiel s@ If %ou #ant to track vendor information that isn=t handled !% the fields that QuickBooks provides? %ou can add up to seven custom fields "see the !o0 on page D&$' 8a% %our su!contractors are supposed to have current certificates for #orkers= comp insurance? and %ou could !e in !ig trou!le if %ou hire one #hose certificate has e0pired' If %ou create a custom field to hold the e0piration date for each su!contractor=s certificate? %ou can generate a report of these dates'

Jorking #ith 4ustomers? Oo!s? and Lendors


:fter %ou create customer? 2o!? and vendor records? %ou might have to come !ack to add more data or change #hat=s alread% there' 5or e0ample? %ou can add contact info as %ou gather it over time' <r %ou ma% decide to categoriKe customers? 2o!s? and vendors? #hich is hand% for slicing and dicing %our financial performance to anal%Ke income? e0penses? profita!ilit%? and so on' Because customers? 2o!s? and vendors come and go? eventuall% %our 4ustomers Oo!s Pist and Lendors Pist #ill !ecome cluttered #ith people and organiKations %ou no longer do !usiness #ith' Aiding these o!solete names keeps %our lists focused' <f course? if %ou create records !% mistake? %ou can delete them' Nou can also merge records in QuickBooks to? for e0ample? com!ine the records for t#o companies that merged in real life' This section e0plains ho# to accomplish all these modifications'

L.BQ<>8

Mo ifying !usto'er, -o., an /en or #nfor'ation


Nou can edit customer? 2o!? and vendor records at an% time after %ou create them' 5or e0ample? %ou might change address and contact info? decrease a credit limit? or lengthen pa%ment terms' QuickBooks gives %ou a fe# #a%s to open the edit #indo#s for these records ".dit 4ustomer? .dit Oo!? and .dit Lendor$' Aere are %our options: V E it a custo'er or Io.@ 5irst? open the 4ustomer 4enter "page &E$' Then? on the 4ustomers - Oo!s ta!? dou!le*click the customer or 2o! %ou #ant to t#eak' :lternativel%? right*click the customer or 2o! and then choose .dit 4ustomer:Oo! from the shortcut menu' Nou can also select the customer or 2o! %ou #ant to edit and then press 4trlT. or? on the right side of the 4ustomer 4enter? click the .dit !utton "its icon looks like a pencil$' V E it a ven or@ In the Lendor 4enter "choose LendorsMLendor 4enter$? on the Lendors ta!? dou!le*click the vendor %ou #ant to modif%' Nou can also right* click the vendor and then choose .dit Lendor from the shortcut menu' :nother method is to select the vendor in the list and then press 4trlT. or? on the right side of the Lendor 4enter? click the .dit !utton "its icon looks like a pencil$' If %ou #ant to modif% multiple customer? 2o!? or vendor records at once? see page 11E in 4hapter I'

>4TE

Jhen %ou edit these records? %ou can make changes to all the fields e0cept 4urrent Balance' QuickBooks calculates that value from the opening !alance "if %ou provide one$ and an% unpaid invoices for that customer or 2o! "or unpaid !ills for a vendor$' <nce a record e0ists? %ou modif% the current !alance !% creating transactions like invoices "page 21D$? credit memos "page 2IE$? !ills "page 1DI$? 2ournal entries "page 4&I$? or pa%ment discounts "page &&4$'

WORKING WITH CU TOMER +

$(1 .*nt .%*n,e t%e .1&&en.< *ssi,ne) t( * .1st(3e&+ D(;+ (& ven)(& i? <(1ve &e- .(&)e) *n< t&*ns*.ti(ns ?(& t%e3' ( i? t%e

and starts using euros? %ou=ll need to close its current !alance !% receiving pa%* ments for outstanding customer or 2o! invoices? or !% pa%ing a vendor=s !ills' Then? %ou can create a ne# customer? 2o!? or vendor record in QuickBooks and assign the ne# currenc% to it' :fter the ne# record is read% to go? %ou can make the old record inactive "page EI$'
;*R>#>)

;nless %ou=ve revamped %our naming standard "page II$? don=t edit the value in a record=s name field "4ustomer Bame? Oo! Bame? or Lendor Bame$' Jh%G Because doing so can mess up things like customiKed reports %ou=ve created that are filtered !% a specific nameW such reports aren=t smart enough to automaticall% use the ne# name' 8o if %ou do modif% a 4ustomer Bame? Oo! Bame? or Lendor Bame field? make sure to modif% an% customiKations to use the ne# name'

!ategori=ing !usto'ers, -o.s, an /en ors


If %ou #ant to report and anal%Ke %our financial performance to see #here %our !usi* ness comes from and #hich t%pe is most profita!le? categoriKing %our QuickBooks customers? 2o!s? and vendors is the #a% to go' 5or e0ample? customer and 2o! t%pes can help %ou produce a report of kitchen remodel 2o!s that %ou=re #orking on for residential customers' Jith that report? %ou can order catered dinners to treat those clients to customer service the%=ll !rag a!out to their friends' If %ou run a construction compan%? kno#ing that %our commercial customers cause fe#er headaches and that doing #ork for them is more profita!le than residential 2o!s is a strong motivator to focus future marketing efforts on commercial #ork' 8imilarl%? %ou might categoriKe vendors to track #hat %ou spend #ith companies versus individual contractors or to classif% vendors !% geographic location' The !o0 on page E4 e0plains ho# %ou can anal%Ke %our !usiness in other #a%s' Nou can add and assign customer? 2o!? and vendor t%pes an%time' If %ou don=t have time to add t%pes no#? come !ack to this section #hen %ou=re read% to learn ho#' %>1ER$T*>1#>) !%$T4MER, -4B, *>1 /E>14R T86E$ Business o#ners often like to look at the performance of different segments of their !usinesses' 8a% %our !uilding*suppl% compan% has e0panded over the %ears to include sales to homeo#ners? and %ou #ant to kno# ho# much %ou sell to home* o#ners versus professional contractors' In that case? %ou can make this comparison !% using customer t%pes to designate each customer as a homeo#ner or a contrac* tor and then total sales !% 4ustomer T%pe? as sho#n in 5igure 4*D' Oo! t%pes and vendor t%pes #ork in a similar #a%' 5or e0ample? 2o! t%pes could help %ou evaluate the profita!ilit% of ne# construction? remodeling? and maintenance #ork' :s %ou=ll learn on page D2? categoriKing a customer? 2o!? or vendor is as eas% as choosing from the 4ustomer T%pe? Oo! T%pe? or Lendor T%pe lists'

WORKING WITH
L.BQ<>8

F i )%RE 493

The 8ales !% 4ustomer Qetail report initiall% totals income !% customer' To su!total income !% customer t%pe "in this e0ample? corporate? government? professional? and so on$? click 4ustomiKe >eport in the report #indo#=s !utton !ar' <n the Qispla% ta! of the dialog !o0 that appears? choose +4ustomer t%pe/ in the +Total !%/ drop*do#n list? and then click <6'

These t%pes are %ours to mold into #hatever categories help %ou anal%Ke %our !usi* ness' : healthcare provider might classif% customers !% their insurance? !ecause reim!ursement levels depend on #hether a patient has Medicare? uses ma2or medical insurance? or pa%s privatel%' : clothing maker might classif% customers as custom? retail? or #holesale? !ecause the markup percentages are different for each' :nd a training compan% could categoriKe customers !% ho# the% learned a!out the com* pan%=s services' This fle0i!ilit% applies to 2o! and vendor t%pes? too'
>4TE

:s %ou=ll see throughout this !ook? QuickBooks= lists make it eas% to fill in information in most QuickBooks dialog !o0es !% choosing from a list instead of t%ping'

WORKING WITH CU TOMER +


)EM #> THE R4%)H

4ategoriKing #ith 4lasses


The 4lass Tracking feature e0plained on page 1&4 is a po#erful and often misunderstood #a% to categoriKe a !usiness' 4lasses are po#erful !ecause of their a!ilit% to cross income? e0pense? account? customer? 2o!? and vendor !oundaries' 8a% %ou #ant to track ho# much each sales region actuall% sells to figure out #ho gets to host %our annual sales shindig' Nour income accounts sho# sales !% products and services? even if each region sells all those items' 4ustomer t%pes #on=t help if some large customers !u% products from several regions' The same goes if a 2o! re)uires a smorgas!ord of #hat %ou sell' To solve this sales*!%*region dilemma? %ou can create a class for each region' Jhen %ou turn on 4lass Tracking? ever% transaction includes a 4lass field' ;nlike the 4ustomer T%pe? Oo! T%pe? and Lendor T%pe fieldsU#hich %ou assign #hen %ou create a customer? 2o!? or vendorUa transaction=s 4lass field starts out !lank' 5or each invoice? sales receipt? !ill? and so on? simpl% choose the class for the region that made the sale or incurred the e0pense' That #a%? %ou can produce a report sorted !% class that sho#s each region=s performance' :s %ou=ll learn on page 1& ? classes can track information that spans multiple customers? 2o!s? and vendors? such as !usiness unit? compan% division? and office location' But don=t e0pect miraclesUclasses #ork !est #hen %ou stick to using them to track onl% one thing' If %ou #ant to appl% classes for different purposes? such as !oth !usiness units and locations? %ou can create su!classes to further categoriKe %our data' 5or e0ample? %ou could create top*level classes for %our locations? and then create su!classes for the !usiness units in each location'

If %ou create a compan% file !% using an industr%*specific edition of QuickBooks or %ou select an industr% #hen creating %our compan% file "page 11$? QuickBooks fills in the 4ustomer T%pe? Oo! T%pe? and Lendor T%pe lists #ith a fe# t%pes that are t%pical for %our industr%' If %our !usiness sense is eccentric? %ou can delete Quick* Books= suggestions and replace them #ith %our o#n entries' 5or e0ample? if %ou=re a landscaper? %ou might include customer t%pes such as @reen Thum!? Means Jell? or Pethal? so %ou can decide #hether orchids? cacti? or :stroturf are most appropriate'
T#6

: common mistake is creating customer t%pes that don=t relate to customer characteristics' "The same holds true for 2o! t%pes and vendor t%pes'$ 5or e0ample? if %ou provide several kinds of servicesUlike financial forecasting? investment advice? and reading fortunesU%our customers might hire %ou to perform an% or all of those services' 8o if %ou classif% %our customers !% the services %ou offer? %ou=ll #onder #hich customer t%pe to choose #hen someone hires %ou for t#o different services' Instead? go #ith customer t%pes that descri!e the customer in some #a%? like .conomics? Investments? and @am!ler' Aere are some suggestions for using customer? 2o!? and vendor t%pes and other QuickBooks features to anal%Ke %our !usiness in different #a%s: V !usto'er .usiness ty&e@ ;se customer t%pes to classif% %our customers !% their !usiness sector? such as 4orporate? @overnment? and 8mall Business' V >on&rofit Gcusto'ers@H 5or nonprofit organiKations? customer t%pes such as Mem!er? Individual? 4orporation? 5oundation? and @overnment :genc% can help %ou target fundraising efforts'

-o. ty&e@ Oo!s are optional in QuickBooks? so 2o! t%pes matter onl% if %ou track %our #ork !% the 2o!' If %our sole source of income is selling organic chicken*fat ripple ice cream? 2o!s and 2o! t%pes don=t matterU%our relationship #ith %our customers is one long run of selling and delivering products' But for pro2ect* !ased !usinesses? 2o! t%pes add another level of filtering to the reports %ou produce' If %ou=re a #riter? then %ou can use 2o! t%pes to track the kinds of documents %ou produce "Manual? Jhite ,aper? and Marketing ,ropaganda? for instance$ and filter the Oo! ,rofita!ilit% >eport !% 2o! t%pe to see #hich forms of #riting are the most lucrative' ",age I02 descri!es ho# to filter reports'$

O<B8? :BQ L.BQ<>8

V /en or ty&e@ ;se vendor t%pes to categoriKe vendors in different #a%s? such as !% industr%? location? or t%pe of compan%' V 2ocation or region@ 4ustomer t%pes or classes can help track !usiness per* formance if %our compan% spans multiple regions? offices? or !usiness units' V $ervices@ To track ho# much of %our !usiness comes from each t%pe of service %ou offer? set up separate income accounts or su!accounts in %our chart of ac* counts? as outlined on page 4I' V 6ro ucts@ To track product sales? create one or more income accounts or su!* accounts in %our chart of accounts'
T#6

4reate income accounts for !road categories of income? such as services and products' Qon=t create separate accounts for each service or product %ou sellW %ou can use items to track sales for each service and product instead? as descri!ed in 4hapter ' V E"&enses@ To track e0penses? create one or more e0pense accounts or su!* accounts in %our chart of accounts' V Marketing@ To identif% the income %ou earned !ased on ho# customers learned a!out %our services? create classes such as >eferral? Je!? Be#spaper? and Blimp? or enter this info in a custom field "page D&$' That #a%? %ou can create a report that sho#s the revenue %ou=ve earned from different marketing effortsUand figure out #hether each one is #orth the mone%'

!RE*T#>) * /E>14R, !%$T4MER, 4R -4B T86E Nou can create these t%pes #hen %ou set up %our QuickBooks compan% file or at an% time after setup' 8ee page 142 in 4hapter D to learn ho# to create customer? 2o!? and vendor t%pes and su!t%pes' Aere=s ho# to see the different t%pe lists: V !usto'er ty&es@ 4hoose PistsM4ustomer - Lendor ,rofile PistsM4ustomer T%pe Pist' V -o. ty&es@ 4hoose PistsM4ustomer - Lendor ,rofile PistsMOo! T%pe Pist' V /en or ty&es@ 4hoose PistsM4ustomer - Lendor ,rofile PistsMLendor T%pe Pist'

WORKING WITH O<B8? :BQ


L.BQ<>8

Hi ing Recor s
Aiding customers? 2o!s? and vendors isn=t a!out !arricading them in a conference room #hen the competition sho#s up to talk to %ou' Because QuickBooks lets %ou delete these records onl% in ver% limited circumstances? hiding them helps keep %our lists managea!le and %our financial histor% intact' :lthough %our #ork #ith a customer? 2o!? or vendor might !e over? %ou still have to keep records a!out %our past relationship' But old records can clutter up the name lists that QuickBooks displa%s? making it difficult to select the people and companies %ou still #ork #ith' The solution is to hide old records? #hich also removes those names from all the lists that appear in transaction #indo#s so %ou can=t select them !% mistake' Aiding old records is a !etter solution than deleting them? !ecause QuickBooks retains the historical transactions for those customers? 2o!s? or vendors so %ou can reactivate them if %ou rene# the relationship' To hide a customer or 2o!? in the 4ustomer 4enter=s 4ustomers - Oo!s ta!? right* click the customer or 2o! and then? from the shortcut menu? choose Make 4ustomer:Oo! Inactive' The customer and an% associated 2o!s disappear from the list' 5igure 4*E sho#s %ou ho# to unhide "reactivate$ customers' To hide a vendor? in the Lendor 4enter=s Lendors ta!? right*click the vendor and then? from the shortcut menu? choose Make Lendor Inactive'

F i )%RE 497

To make hidden customers visi!le again and reactivate their records? set the drop*do#n list at the top of the 4ustomers - Oo!s ta! to :ll 4ustomers? as sho#n here' QuickBooks displa%s an R to the left of ever% inactive customer in the list' 8impl% click that R to restore the customer to active dut%'

1eleting Recor s
Nou can delete customers? 2o!s? or vendors onl% if there=s no activit% for them in %our QuickBooks file' If %ou tr% to delete a record that has even one transaction associ* ated #ith it? QuickBooks tells %ou that %ou can=t delete that record' If %ou create a customer? 2o!? or vendor !% mistake? %ou can remove it? as long as %ou first remove an% associated transactionsU#hich are likel% to !e mistakes as #ell' But QuickBooks doesn=t tell %ou #hich transactions are preventing %ou from deleting the record' To find and delete transactions that prevent %ou from deleting a record? follo# these steps: 1' #n the !usto'er !enter, vie< all the transactions for a custo'er or Io. .y selecting that custo'er or Io. in the !usto'ers A -o.s ta., an then, in the Transactions &ane, setting the $ho< .o" to *ll Transactions an the 1ate .o" to *ll@ Nou can also vie# transactions !% running the +Transaction Pist !% 4ustomer/ report ">eportsM4ustomers - >eceiva!lesMTransaction Pist !% 4ustomer$' 5or a vendor? select the vendor in the Lendor 4enter=s Lendors ta!? and then? in the Transactions pane? set the 8ho# !o0 to :ll Transactions and the Qate !o0 to :ll? as sho#n in 5igure 4*C'

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F i )%RE 49+

Jhen %ou select a vendor in the Lendor 4enter? the Transaction pane in the lo#er right sho#s that vendor=s transactions' To see them all? in the 8ho# drop*do#n list? choose :ll Transactions? and in the Qate drop*do#n list? choose :ll'

2' #n the !usto'er or /en or !enter Kor the a&&ro&riate transaction list re&ortL, o&en the transaction you <ant to elete .y ou.le9clicking it@ The 4reate Invoices #indo# "or the corresponding transaction #indo#$ opens to the transaction %ou dou!le*clicked'

O<B8? :BQ L.BQ<>8

&' Right9click the transaction <in o< an choose the 1elete entry K1elete #nvoice, 1elete !heck, an so onL fro' the shortcut 'enu Kor choose E itM1elete #nvoice, E itM1elete !heck, or the corres&on ing elete co''an L@ In the message !o0 that appears? click <6 to confirm that %ou #ant to delete the transaction' 4' Re&eat ste&s 2 an ven or@ ( for every transaction for that custo'er, Io., or

' Back on the !usto'ers A -o.s or /en ors ta., select the custo'er, Io., or ven or you <ant to elete, an then &ress !trlO1 Kor choose E itM1elete !usto'er:-o. or E itM1elete /en or@L If the customer? 2o!? or vendor has no transactions? QuickBooks asks %ou to confirm that %ou #ant to delete the recordW click <6' If %ou see a message stat* ing that %ou can=t delete it? go !ack to steps 2 and & to delete an% remaining transactions'

Merging Recor s
8uppose %ou remodeled !uildings for t#o companies run !% !rothers: More%=s 4it% Qiner and Pes=s .0ercise 8tudio' More% and Pes conclude that their !usinesses have a lot of s%nerg%Upeople are either eating or tr%ing to lose #eight? and usuall% do* ing !oth' To smooth out their cash flo#? the% decide to merge their companies into More or Pess Bod% Building and :ll Nou 4an .at Buffet' Nour challenge: to create one customer in QuickBooks from the t#o !usinesses? #hile retaining the 2o!s? invoices? and other transactions that %ou created #hen the companies #ere separate' The solution: QuickBooks= merge feature? #hich #orks in the same #a% #hether %ou=re merging customers? 2o!s? or vendors'
T#6

Aere=s another instance #hen merging can come in hand%: If %ou don=t use a standard naming convention "page II offers several eas% naming conventions$? %ou could end up #ith multiple customer records representing one real*life customer? such as Pes=s .0ercise 8tudio and Pes.0' Nou can merge these doppelgangers into one customer 2ust as %ou can merge t#o trul% separate companies into one' Jhen %ou merge records in QuickBooks "customers? for e0ample$? one customer retains the entire transaction histor% for the t#o original customers' In other #ords? %ou don=t so much merge t#o customers as turn one customer=s records into those of another' If %ou #ant to merge t#o customers= records into one? the secret is to rename one customer to the same name as another' Pike#ise? if %ou #ant to merge t#o 2o!s= or vendors= records into one? %ou rename one vendor to the same name as another'
>4TE

There=s a catch to renaming customers: The customer %ou rename can=t have an% 2o!s associated #ith it' 8o if there are 2o!s associated #ith the customer %ou #ant to rename? %ou have to move all those 2o!s to the customer %ou intend to keep !efore %ou start the merge' Nour !est !et: 8u!sume the customer #ith fe#er 2o!s so %ou don=t have to move ver% man%' "If %ou don=t use 2o!s? then su!sume #hichever customer %ou #ant'$

To merge customer? 2o!? or vendor records #ith a minimum of frustrated out!ursts? follo# these steps: 1' #f you <ork in 'ulti9user 'o e, s<itch to single9user 'o e for the uration of the 'erging o&eration@ 8ee page 4CD to learn ho# to s#itch to single*user mode and !ack again after the merge is complete' 2' 4&en the !usto'er !enter or /en or !enter@ To open the 4ustomer 4enter? in the 4ustomers panel of the Aome page? click 4ustomers' To open the Lendor 4enter? in the Aome page=s Lendors panel? click Lendors' &' #f youBre going to su.su'e a custo'er that has Io.s associate <ith it, on the !usto'ers A -o.s ta., &osition your cursor over the ia'on to the left of the Io. you <ant to reassign@ #f youBre 'erging Io.s or ven ors instea , Iu'& to ste& 0@ Oo!s are indented !eneath the customer to #hich the% !elong' 4' ;hen your cursor changes to a four9hea e arro<, rag the Io. un er the custo'er you &lan to kee&, as sho<n in Figure 4910, left@ :s %ou drag? the cursor changes to a horiKontal line !et#een t#o arro#heads' ' Re&eat ste&s ( an 4 for each Io. that .elongs to the custo'er youBre go9 ing to su.su'e@ If %ou have hundreds of 2o!s for the customer? moving them is tedious at !est U !ut move them %ou must' I' For a custo'er or Io., on the !usto'ers A -o.s ta., right9click the na'e of the custo'er or Io. you <ant to su.su'e an , fro' the shortcut 'enu, choose E it !usto'er:-o.@ For a ven or, on the /en ors ta., right9click the na'e of the ven or you <ant to su.su'e an , fro' the shortcut 'enu, choose E it /en or@ Nou can also edit a record !% selecting its name on the 4ustomers - Oo!s or Lendors ta! and then? on the right side of the 4ustomer or Lendor center? clicking the .dit !utton "the pencil icon$' Qepending on the t%pe of record %ou selected? the .dit 4ustomer? .dit Oo!? or .dit Lendor dialog !o0 opens' D' #n the e it ialog .o", e it the !usto'er >a'e, -o. >a'e, or /en or >a'e fiel to 'atch the na'e of the recor you inten to kee&, an then click 4:@ QuickBooks displa%s a message letting %ou kno# that the name is in use and asking if %ou #ant to merge the records' E' !lick 8es to co'&lete the 'erge@ In the 4ustomer or Lendor 4enter? the record %ou renamed disappears and an% !alances it had no# !elong to the remaining entr%? as sho#n in 5igure 4*10? right'

O<B8? :BQ L.BQ<>8

M:B:@IB@ P.:Q8

F i )%RE 4910

Peft: Jhen %our cursor changes to a four*headed arro#? drag #ithin the 4ustomers - Oo!s ta! to move the 2o!' :s %ou drag? a horiKontal line !et#een t#o arro#heads sho#s %ou #here the 2o! #ill go #hen %ou release the mouse !utton' >ight: :fter reassigning all the 2o!s to the customer %ou intend to keep? %ou can merge the no#* 2o!less customer into the other' Jhen the merge is complete? %ou see onl% the customer %ou kept'

Managing Peads
8uppose %ou attend a tradesho# and return to %our office #ith a stack of leads' If %ou #ant to turn those leads into ne# sales? %ou usuall% have a host of to*dos? like follo#ing up on the )uestions that prospects asked? sending out more info a!out %our products and services? or simpl% taking the ne0t step in %our sales process' The information %ou collect a!out leads is similar to that for customers? !ut leads aren=t customersU%et' If %our lead*tracking needs are simple? the Pead 4enter can help %ou track prospects #hile %ou=re tr%ing to turn them into customers' Then? if %our persuasion pa%s off? %ou can transform leads into customers in QuickBooks' To #ork #ith leads? open the Pead 4enter !% choosing 4ustomersMPead 4enter' The Pead 4enter looks a lot like the 4ustomer 4enter #ith a fe# e0ceptions' The Peads list on the left sho#s the lead=s name and status' :nd !ecause leads don=t have transactions? the ta!s at the !ottom of the Pead 4enter focus on to*dos? contacts? locations? and notes %ou can use to tr% to convert the leads into customers'

>4TE

The Pead 4enter=s features aren=t as po#erful as the ones %ou find in market*leading customer relationship management "4>M$ programs' 5or e0ample? %ou can=t send an email to a lead from the Pead 4enter or create an estimate for a lead' But if %our leads are scri!!led in a note!ook or listed in a spreadsheet? the Pead 4enter can help %ou organiKe themUand !ecause it=s !uilt into QuickBooks? it doesn=t cost e0tra' If %ou need more sophisticated tracking tools? skip the Pead 4enter and check out 4>M programs that integrate #ith QuickBooks' Nou can find a fe# doKen listed at the Intuit marketplace "http:((ti n%url' com (D0ntgp e$' QuickBooks also integrates #ith 8alesforce? a ma2or 4>M provider' Nou can learn a!out this program in the Pead 4enter #indo# !% clicking the +Pearn a!out 8alesforce/ !utton to the right of the Pead Information heading' Aere are some of the actions %ou can perform #ith leads: V !reate a ne< lea @ In the Pead 4enter tool!ar? click Be# Pead' In the :dd Pead dialog !o0? name the lead' The 8tatus field lets %ou classif% leads as Aot? Jarm? or 4old? so %ou kno# #hich ones to focus on first' The 4ompan% ta! contains fields for info such as compan% name? telephone num!er? email address? #e!site? and main address' "Nou can add other addresses if the compan% has several locations'$ The 4ontacts ta! lets %ou add contact info for people in the compan%' The first contact %ou enter is designated the ,rimar% 4ontact? !ut %ou can add other contacts !% clicking the :dd :nother 4ontact !utton'
>4TE

M:B:@IB@ P.:Q8

:fter %ou create a lead? %ou can add more contacts or locations to it !% selecting it on the left side of the Pead 4enter and then clicking either the 4ontacts or Pocations ta! at the !ottom of the #indo#' Then? on either ta!? click the .dit !utton to open the .dit Pead dialog !o0? #here %ou can add more contact info' V /ie< lea s@ Pike the 4ustomer 4enter? the Pead 4enter lists %our leads on the left side of the #indo#' The list sho#s the lead=s name and status' Nou can filter the list !% choosing an entr% from the drop*do#n list a!ove the lead list' 5or e0ample? choose :ctive Peads to see all the leads %ou=re #orking on? or choose Aot to filter the list for all %our most promising leads' V $earch lea s@ If %our sales team is prolific? %our lead list could !e )uite long' Nou can search for specific leads !% t%ping part of the lead=s name in the unla* !eled te0t !o0 a!ove the lead list and then clicking the magnif%ing glass icon' QuickBooks filters the list to sho# all the leads that contain the te0t %ou t%ped' V E it a lea @ :fter %ou create a lead? %ou can vie# its information and edit it' 8impl% dou!le*click the lead in the list on the left side of the Pead 4enter' V !reate a to9 o@ To add a to*do for a lead? select the lead in the Pead 4enter=s list' Be0t? click the To Qo=s ta! at the !ottom of the Pead 4enter? and then click To Qo at the !ottom of the ta!' "8ee page 4EI to learn ho# to create different t%pes of to*dos'$ The To Qo=s ta! sho#s info a!out that lead=s to*dos? including the t%pe of to*do? its priorit%? #hen it=s due? and #hether it=s complete' V * notes@ To add notes a!out a lead? first select the lead in the Pead 4enter=s list' Be0t? click the Botes ta! at the !ottom of the Pead 4enter? and then click :dd Botes' In the +Bote 5or Zcustomer[/ dialog !o0? t%pe the information %ou

MANAGIN
P.:Q8

=*nt t( &e.(&)' !(& ex*32/e+ <(1 3i,%t s2e.i?< t%e 2*&ti.1/*&

ucts that lead is interested in or her !udget' Jhen %ou add a note? QuickBooks automaticall% records the date %ou #rote it' To filter the notes !% date? choose a time period in the Botes ta!=s Qate drop*do#n list'

V !onvert a lea to a custo'er@ Peads are stored in a separate list from %our customers' Jhen %ou turn a lead into a customer in real life? %ou can easil% do the same in QuickBooks' 8impl% right*click the lead in the Pead 4enter=s list and choose +4onvert to a 4ustomer/ in the shortcut menu' "<r click the +4onvert this Pead to a 4ustomer/ !utton in the Pead 4enter=s upper right'$ QuickBooks asks %ou to confirm this action? !ecause %ou can=t undo it' Jhen %ou click <6? the lead disappears from the :ctive Peads list' Nou can see the leads %ou=ve converted to customers !% choosing 4onverted Peads in the drop*do#n list at the top left of the Pead 4enter' :lthough %ou can still vie# these converted leads in the Pead 4enter? %ou can no longer edit them there' The% no# appear as customers in the 4ustomer 4enter? and %ou can edit them there as %ou do other customers "page E1$' V #'&ort lea s@ To import information a!out several leads? in the Pead 4enter tool!ar? click Import Multiple Peads' The Import Peads dialog !o0 that appears lets %ou t%pe values into a ta!le? !ut %ou can also cop% and paste information from an .0cel spreadsheet like %ou do in the :dd(.dit Multiple Pist .ntries #indo# "page 11E$'

!H*6TER

8etting ;p Items

hether %ou !uild houses? sell gardening tools? or tell fortunes on the In* ternet? %ou=ll pro!a!l% use items in QuickBooks to represent the products and services %ou sell' But to QuickBooks? things like su!totals? discounts? and sales ta0 are items? too' In fact? nothing appears in the !od% of a QuickBooks sales form "such as an invoice$ unless it=s an item' ,ut another #a%? to create invoices "#hich %ou=ll learn ho# to do in 4hapter 10$? sales receipts? and other sales forms in QuickBooks? %ou need customers and items' "Nou also need items to fill in the !ills and other purchase forms %ou record'$ 8o? no# that %ou=ve got %our chart of accounts and customers set up in QuickBooks? it=s time to dive into items' This chapter !egins !% helping %ou decide #hether %our !usiness is one of the fe# that doesn=t need items at all' But if %our organiKation is like most and uses !usiness forms like invoices? sales receipts? and so on? the rest of the chapter #ill teach %ou ho# to create? name? edit? and manage the items %ou add to forms' Nou=ll then learn ho# to use items in invoices and other forms in the remaining chapters of this !ook'

Jhat Items Qo
5or %our da%*to*da% #ork #ith QuickBooks? items save time and increase consistenc% on sales and purchase forms' Aere=s the deal: Items form the link !et#een #hat %ou sell "and !u%$ and the income? e0pense? and other t%pes of accounts in %our chart of accounts' Jhen %ou create an item? %ou descri!e #hat the item is? ho# much %ou pa% for it? ho# much %ou sell it for? and the accounts to #hich %ou post the corresponding income? e0pense? cost of goods sold? and

9#

MANAGIN

asset value' 5or e0ample?

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JA:T IT.M8 Q< sa% %ou charge YD an hour for the !ookkeeping service %ou provide? and %ou $OU #ant that income to sho# up in %our 5inancial 8ervices income account' 8o %ou create an item for !ookkeeping and associate it #ith %our income account' That #a%? #hen %ou add the item to a sales form? QuickBooks automaticall% multiplies the price per hour !% the num!er of hours to calculate the full charge? and then posts the income to %our 5inancial 8ervices account' Nou also create items for other stuff %ou add to sales forms? like discounts? shipping charges? and su!totals' Items also make it eas% to look at %our compan%=s finances from different perspec* tives' Nou can set up %our chart of accounts !ased on the accounts %ou #ant to sho# on %our financial statements "page 4 &$? #hich are usuall% summariKed to include onl% #hat %our !ankers or other interested parties need to kno#' :t the same time? items "and classes? #hich %ou=ll learn a!out on page 1&4$ let %ou track income and e0penses to the level of detail %ou #ant' 5or e0ample? %ou might set up t#o income accounts: one for services and one for products' Ao#ever? %ou can create items for ever% t%pe of service and product %ou sell' Jhen it=s time to anal%Ke ho# %our !usiness is doing? items shine' QuickBooks has !uilt*in item*!ased reports that sho# the dollar value of sales or the num!er of inven* tor% units %ou=ve sold' "To learn ho# to use inventor% reports? see page &C' <ther item*!ased reports are descri!ed throughout this !ook'$ Nou can #ork out #hich accounts to assign items to on %our o#n or #ith the help of %our accountant "a good idea if %ou=re ne# to !ookkeeping$? and then specif% those accounts in %our items? as sho#n in 5igure *1' QuickBooks remem!ers these assignments from then on'

F i )%RE 591

If %ou had to enter item details each time %ou added an entr% to an invoice? %ou=d !e !ound to make mistakes' But !% setting up an item using this #indo#? %ou can make sure %ou use the same information on sales and purchase forms each time %ou sell or !u% that item' "Jhen the inevita!le e0* ception to the rule arises? %ou can edit the item info that QuickBooks fills in on the sales form'$

Jhen Nou Qon=t Beed Items


Jithout items? %ou can=t create an% t%pe of sales form in QuickBooks? including invoices? statements? sales receipts? credit memos? and estimates' But if %ou don=t use sales forms? %ou don=t need items' Bot man% organiKations operate #ithout these forms? !ut here are a fe# e0amples of ones that do: V <ld 8tuff :nti)ues sells 2unkUer? anti)uesUon consignment' 6ate? the o#ner? doesn=t pa% for the piecesW she 2ust displa%s them in her store' Jhen she sells a consignment item? she #rites paper sales receipts' Jhen she receives her cut from the seller? she deposits the mone% in her checking account' V Ton% o#ns a tattoo parlor specialiKing in gang insignias' Ae doesn=t care ho# man% tattoos he creates andUfor safet%=s sakeUhe doesn=t #ant to kno# his customers= names' :ll Ton% does is deposit the cash he receives upon complet* ing each masterpiece' V Qominic keeps the !ooks for his charit% for ice!erg*less penguins' The charit% accepts donations of mone% and fish? and it doesn=t sell an% products or perform services to earn additional income' Ae deposits the monetar% donations into the charit%=s checking account and enters each deposit in QuickBooks' Ae keeps track of the donors= contri!utions and his froKen fish inventor% in a spreadsheet'

JITA IT.M8G

8hould Nou Track Inventor% #ith ItemsG


If %our !usiness is !ased solel% on selling services? %ou can skip this section' But if %ou sell products? it=ll help %ou understand %our options' Nou can handle products in t#o #a%s: !% stocking and tracking inventor% or !% !u%ing products onl% #hen #ork for %our customers re)uires them' The s%stem %ou use affects the t%pes of items %ou create in QuickBooks' If %ou !u% products specificall% for customers? %ou need items? !ut %ou don=t have to track the )uantit% on hand' In this case? %ou create Bon*inventor% ,art items? #hich %ou=ll learn a!out shortl%' 5or e0ample? general contractors #ork on various t%pes of pro2ects? so the% usuall% purchase the materials the% need for a specific 2o! and charge the customer for those materials' Because general contractors don=t keep materials in stock? the% don=t have to track inventor% and can therefore use Bon*inventor% ,art items' <n the other hand? specialiKed contractors like plum!ers install the same kinds of pipes and fittings over and over' These contractors often purchase parts and store them in a #arehouse? selling them to their customers as the% perform 2o!s' These #arehoused parts can !e set up as Inventor% ,art items "page 2 $ in QuickBooks' Jhen %ou use the program=s inventor% feature? QuickBooks keeps track of ho# man% products %ou have on hand? increasing the num!er as %ou purchase them and decreasing the num!er #hen %ou sell them to customers'

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IBL.BT<>N JITA IT.M8G 8o? !efore %ou start #orking #ith items in QuickBooks? %ou actuall% have t#o in* ventor% decisions to make: 5irst? should %ou track inventor%G :nd second? should %ou track inventor% in QuickBooksG >ead on to learn ho# to make these decisions' Because tracking inventor% re)uires more effort than !u%ing onl% the materials %ou need? use the follo#ing guidelines to determine #hether %our !usiness should track inventor% at all: V Track inventory if you kee& &ro ucts in stock to resell to custo'ers@ If %our compan% stocks fau0 pon% !ar stools to resell to customers? those stools are in* ventor%' B% tracking inventor%? %ou kno# ho# man% units %ou have on hand? ho# much the%=re #orth? and ho# much mone% %ou made on the stools %ou=ve sold' <n the other hand? the fau0 pon% mouse pads %ou keep in the storage closet for %our emplo%ees are !usiness supplies' Most companies don=t !other tracking inventor% for supplies like these? #hich the% consume in the course of running their !usiness' V Track inventory if you <ant to kno< <hen to reor er &ro ucts so you onBt run out@ If %ou sell the same items over and over? keeping %our shelves stocked means more sales "!ecause the products are read% to ship out as soon as an order comes in$' QuickBooks can remind %ou #hen it=s time to reorder a product' V 1onBt track inventory if you &urchase &ro ucts s&ecifically for Io.s or custo'ers@ If %ou special*order products for customers or !u% products for specific 2o!s? %ou don=t need to track inventor%' :fter %ou deliver the special order or complete the 2o!? %our customer has taken and paid for products? and %ou simpl% have to account for the income and e0penses %ou incurred' V 1onBt track inventory if you rent e?ui&'ent to custo'ers@ 5or leases and rentals? %ou receive income from renting or leasing assets %ou o#n' In that case? %ou can sho# the value of the for*rent products as an asset in QuickBooks and the rental income as a 8ervice item "page 104$? so %ou don=t need Inventor% ,art items' Nour !usiness model might dictate that %ou track inventor%' Ao#ever? QuickBooks= inventor%*tracking feature has some limitations' 5or e0ample? it lets %ou store onl% up to 14? 00 items' Ao# can %ou tell #hether QuickBooks inventor% fits the !illG If %ou ans#er %es to an% of the follo#ing )uestions? QuickBooks isn=t the program to use to handle the products %ou sell: V 1o you sell &ro ucts that are uni?ueD In the !usiness #orld? tracking inven* tor% is meant for !usinesses that sell commodit% products? such as electronic e)uipment? and stock numerous units of each product' If %ou sell uni)ue items? such as fine art or compromising ,olaroid photos? %ou=d eventuall% hit Quick* Books= 14? 00 item limit' 5or such items? consider using a spreadsheet to track the products %ou have on hand'

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T#6

Aere=s one #a% to handle uni)ue products using QuickBooks: Jhen %ou sell %our uni)ue handicrafts? record the sales in QuickBooks using generic Bon*inventor% ,art items' 5or e0ample? use an item called <il ,ainting on the sales receipts for the art#ork %ou sell and fill in more specific information a!out the painting in the sales receipt=s Qescription field' V 1o you 'anufacture the &ro ucts you sell out of ra< 'aterialsD QuickBooks inventor% can=t follo# materials as the% #end through a manufacturing process or track inventor% in various stages of completion'
>4TE

JITA IT.M8G

$OU

QuickBooks ,remier and .nterprise editions can track inventor% for products that re)uire some as* sem!l%' 5or instance? if %ou create Jines from :round the Jorld gift !askets using the #ine !ottles in %our store? %ou can !uild an Inventor% :ssem!l% item "page 2E$ out of #ine and !asket Inventor% ,art items' The !o0 on page &0 e0plains another #a% to track assem!led inventor%' V 1o you value your inventory .y using a 'etho other than average costD QuickBooks ,ro and ,remier calculate inventor% value !% average cost' If %ou #ant to use other methodsUlike last in(first out "PI5<$ or first in(first out "5I5<$U%ou can e0port inventor% data to a spreadsheet program and then calculate inventor% cost there "page IC1$' <r %ou can upgrade to QuickBooks .nterprise and su!scri!e to Intuit=s :dvanced Inventor% add*on service "#hich costs e0tra$' V 1o you use a &oint9of9sale syste' to track inventoryD ,oint*of*sale inven* tor% s%stems often !lo# QuickBooks= inventor% tracking out of the #ater' If %ou forgo QuickBooks= inventor% feature? then %ou can periodicall% update %our QuickBooks file #ith the value of %our inventor% from the point*of*sale s%stem'
>4TE

If %ou like the point*of*sale idea !ut don=t have a s%stem %et? consider Intuit=s QuickBooks ,oint of 8ale? an integrated? add*on product for retail operations that tracks store sales? customer info? and inventor%' Aead to http:((pointofsale'intuit'com for more info' Nou don=t have to use QuickBooks= inventor% feature at all if %ou don=t #ant to' 5or e0ample? if %ou perform light manufacturing? %ou can track the value of %our manufactured inventor% in a data!ase or other program' Nou can then periodicall% add 2ournal entries "page 4&I$ to QuickBooks to sho# the value of in* progress and completed inventor%' If %ou do opt to use QuickBooks to track inventor%? 4hapter 20 sho#s %ou ho#? from first step to last'
T#6

The ans#er to %our inventor% dilemma could !e an add*on program that tracks inventor% and keeps QuickBooks informed' <ne of the !est is 5ishBo#l Inventor% "###'fish!o#li nventor%'com$'

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5CANNIN

,lanning Nour Items


8etting up items in QuickBooks is a lot like shopping at a grocer% store' If %ou need onl% a fe# things? %ou can shop #ithout a list' 8imilarl%? if %ou=re going to use 2ust a fe# QuickBooks items? %ou don=t need to #rite them do#n !efore %ou start creating them' But if %ou use doKens or even hundreds of items? planning %our Item Pist can save %ou lots of frustration' If %ou 2umped straight to this section? no#=s the time to go !ack and read +8hould Nou Track Inventor% #ith ItemsG/ on page C ? #hich helps %ou #ith %our first decision: #hether to use items that represent services? inventor%? or non*inventor% products' B% deciding ho# to name and organiKe %our items !efore %ou create them in Quick* Books? %ou #on=t #aste time editing and re#orking e0isting items to fit %our ne# naming scheme' >ead on to learn #hat %ou should consider !efore creating items'

)eneric or $&ecificD
4onservation can !e as important #ith QuickBooks= items as it is for the environ* ment' QuickBooks ,ro and ,remier can hold no more than 14? 00 items? #hich is a pro!lem if %ou sell uni)ue products? such as anti)ues? or products that change fre)uentl%? such as current clothing st%les for teenagers' <nce %ou use an item in a transaction? %ou can=t delete that item? so %ou could end up #ith lots of items %ou no longer use "see page 114$' B% planning ho# specific %our items #ill !e? %ou can keep %our Item Pist lean' 5or instance? a generic item such as Top can represent a girl=s !lack @oth T*shirt one season and a #hite? poplin !utton*do#n shirt the ne0t' @eneric items have their limitations? though? so use them onl% if necessar%' 5or e0ample? %ou can=t track inventor% properl% #hen %ou use generic items' QuickBooks might sho# that %ou have 100 tops in stock? !ut that doesn=t help #hen %our customers are clamoring for #hite !utton*do#ns and %ou have CD !lack @oth T*shirts' In addition? the information %ou store #ith a generic item #on=t match the specifics of each product %ou sell' 8o? #hen %ou add generic items to an invoice or a sales form? %ou=ll have to edit a fe# fields? such as Qescription or ,rice? as sho#n in 5igure * 2'

>a'ing #te's
Brevit% and recogniKa!ilit% are e)uall% desira!le characteristics in item names' 8hort names are easier to t%pe and manage? !ut the% can !e unintelligi!le' Ponger names take more effort to t%pe and manage !ut are easier to decipher' Qecide ahead of time #hich kind of name %ou prefer? and then stick #ith it as %ou create items' QuickBooks encourages !revit% !ecause an item=s name can !e no more than &1 characters' If %ou sell onl% a handful of services? %ou can name %our items the same things %ou call them' 5or instance? for a tree service compan%? names like 4ut? Pim!? Trim? 4hip? and Aaul #ork 2ust fine' But if %our Item Pist runs into the hundreds or thousands? some planning is in order' Aere are some factors to

consider #hen naming items:

,P:BBIB@ N<;> IT.M8

F i )%RE 592

QuickBooks automaticall% fills in fields like Qescription and ,rice "or >ate? as sho#n here$ #ith values %ou=ve saved in item records' But %ou can edit those fields once %ou add an item to an invoice? #hether %ou use generic or specific items to descri!e #hat %ou sell' Oust click a field in a sales form? select the te0t %ou #ant to change? and then t%pe the ne# value'

*liases@ 4reate a pseudon%m to represent the item' 5or a carpet compan%? +In* stall standard/ could represent the installation along #ith vacuuming and hauling #aste? #hile +Install delu0e/ could include the standard installation plus moving and replacing furniture' Nou can include the details in the item=s description'

V $ort or er@ In the Item Pist #indo# "PistMItem Pist$? QuickBooks sorts items first !% t%pe and then in alpha!etical order !% name' 8o if %ou #ant %our items to appear in some logical order in drop*do#n lists "like an invoice item ta!le? for instance$? pa% attention to the order of characteristics in %our item names' 5or e0ample? if %ou created +Qelu0e install/ and +8tandard install/ 8ervice items? other 8ervice items !eginning #ith the intervening letters of the alpha* !et #ould separate them in drop*do#n lists B% naming %our installation items +Install delu0e/ and +Install standard/ instead? the%=ll sho# up in %our Item Pist one after the other' V *..reviation@ If %ou have to compress a great deal of information into an item name? %ou=ll have to a!!reviate' 5or e0ample? suppose %ou #ant to conve% all the things %ou do #hen %ou install a carpet? including installing tack strips? padding? and carpetW trimming carpetW vacuumingW and hauling #aste' That=s more than the &1 characters "including spaces$ %ou have to #ork #ith' ,oetic #on=t descri!e it? !ut something like +inst trim vac haul/ sa%s it all in ver% fe# characters' The !o0 on page 100 suggests t#o other #a%s to identif% complicated items'

CREATIN G
64;ER %$ER$B !2#>#!

<ther Ja%s to Identif% Items


If %ou #ant to keep item names lean !ut still include detailed information? look to these t#o item features: V 1escri&tions@ Items have fields for !oth names and descriptions' Jhen %ou create an invoice? %ou choose the item=s name from a drop*do#n list? !ut the invoice that the customer sees sho#s the item=s description' 8o %ou can keep %our item names !rief !% putting the details in the Qescription field? #hich? for all practical purposes? can hold an unlimited amount of te0t' V )rou&@ Instead of creating one item that represents several phases of a 2o!? %ou can create separate items for each phase and then create a @roup item "page 110$ to include those phases on an invoice' 5or instance? create one item for installing tack strips? padding? and carpet? and then create additional items for vacuuming? hauling? and moving and replacing furniture' Then create a @roup item that contains all the individual 8ervice items included in a carpet*installation 2o!' That #a%? #hen %ou add that @roup item to an invoice? QuickBooks adds each 8ervice item to a line on the invoice' : @roup item isn=t limited to 2ust 8ervice items? though' It can include other t%pes of items? such as Bon*inventor% ,art? Inventor% ,art? and <ther 4harge items'

>4TE

4onstruction companies in particular can avoid long hours of item data entr% !% using third*part% estimating programs' 4onstruction*estimating programs usuall% include thousands of entries for standard con* struction services and products' If %ou !uild an estimate #ith a program that integrates #ith QuickBooks? %ou can import that estimate into QuickBooks and then sit !ack and #atch as it automaticall% adds all the items in the estimate to %our Item Pist' To find such QuickBooks*integrated programs? go to http:((mar ketpla ce'intuit' com ' <n the menu !ar? click 5ind 8oft#areM5ind 8olutions !% Industr%' Then? on the B% Industr% ta!? choose 4onstruction(4ontractors'

$u.ite's
If %ou keep all %our personal papers in one !ig stack? %ou pro!a!l% have a hard time finding ever%thing from !irth certificates to ta0 forms to !ills and receipts' If %ou=ve got one !ig list of items in QuickBooks? %ou=re in no !etter shape' To locate items more easil%? consider designing a hierarch% of higher*level items "parents$ and one or more levels of su!items? as sho#n in 5igure *&' The !o0 on page 101 e0plains ho# to make sure %ou have items for ever% purpose' 5or e0ample? a landscaping !usiness might create top*level items for trees? shru!* !er%? cacti? and flo#er !ul!s' Jithin the top*level tree item? the landscaper might create su!items for several species: maple? oak? elm? s%camore? and dog#ood' Nou can create up to five levels of su!items to represent categories such as siKe "seedling? esta!lished? and mature? sa%$'

F i )%RE 59(

The Item Pist #indo#=s Aierarchical Lie# "sho#n here$ indents su!items? making it eas% to differen* tiate the items %ou use to categoriKe the list from the items %ou actuall% sell' To check #hich vie# %ou=re seeing? click the Item !utton at the !ottom of the #indo# to displa% the menu sho#n here' If %ou #ork #ith long lists of su!items? the parent item might end up off the screen' To keep the hierarch% of items visi!le at all times? choose 5lat Lie#? #herein QuickBooks uses colons to separate the names of each level of item and su!item'

;4R1 T4 THE ;#$E

4atchall 8u!items
Jhen %ou develop a hierarch% of parent items and su!items? eventuall% someone in %our compan% #ill run across a service or product that doesn=t fit an% of the e0isting su!items' If %ou assign a transaction to a parent item that has su!items? then QuickBooks automaticall% creates a su!item called +<ther/ as a catch !asin' 5or e0ample? if %ou have a parent item called 8ecurit% 8ervices? %ou=d get a su!item called 8ecurit% 8ervices*<ther' 4atchall items can act as holding pens #hile %ou figure out #hich specific su!item %ou should use' The%=re also an eas% #a% to look for transactions that should !e reassigned to a different su!item' 5or instance? %ou can create a transaction !% using the 8ecurit% 8ervices*<ther item? and then change the item in the transaction later "page 22E$ #hen %ou=ve identified "or created$ the correct su!item'

4reating Items
The !est time to create items is after %ou=ve created %our accounts !ut !efore %ou start purchasing goods from vendors or invoicing customers' .ach item links to an

CHA5teR 6: ETTING U5

101

CREATIN G

*..(1nt in <(1& .%*&t (? *..(1nts+ s( .&e*tin, ite3s ,(es H1i.0e& i? <(1 )(nt %*ve t( .&e*te *..(1nts *s =e//'
Nou can create items #hile %ou=re in the midst of creating an invoice? !ut %ou=ll find that creating items goes much faster #hen %ou create several at once' Ao# long it takes to create items depends on ho# man% %ou need' If %ou sell onl% a fe# services? a fe# minutes should do it' <n the other hand? construction companies that need thousands of items often save hours of data entr% !% importing items from third* part% programs "see page IE $'
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This section sho#s %ou ho# to create items one at a time' To learn ho# to )uickl% create multiple items? 2ump to page 11E in 4hapter I' .ach t%pe of item has its o#n assortment of fields? !ut the overall process of creat* ing an item is the same for ever% t%pe' Jith the follo#ing procedure under %our !elt? %ou=ll find that %ou can create man% of %our items #ithout further instruction' "If %ou do need help #ith fields for a specific t%pe of item? read the sections that follo# to learn #hat each field does'$ 1' 4n the QuickBooks Ho'e &age, click #te's A $ervices Kor choose 2istsM#te' 2istL to o&en the #te' 2ist <in o<@ Jhen %ou first displa% the Item Pist? QuickBooks sorts the entries in it !% t%pe' The sort order for the item t%pes isn=t alpha!eticalUit=s the order that t%pes appear in the T%pe drop*do#n list? as sho#n in 5igure *4' Nou can change the list=s sort order !% clicking a column heading'

F i )%RE 594

QuickBooks lists items !% t%pe and then in alpha!etical order #ithin each t%pe' Nou can change the sort order of the list !% clicking a column heading' If %ou click the heading again? QuickBooks toggles the list !et#een ascending and descending order' To return the list to !eing sorted !% t%pe? click the diamond to the left of the column headings "circled$? #hich appears an%time the list is sorted !% a column other than T%pe'

2' O2en t%e Ne= Ite3 =in)(= ;< 2&essin, Ct&/IN (& ./i.0in,
QuickBooks opens the Be# Item #indo# and selects 8ervice in the T%pe drop* do#n list' "Pearn more a!out the various item t%pes starting on page 104'$ &' To create a $ervice ite', Iust &ress Ta. to &rocee <ith na'ing the ite'@ To create any other ty&e of ite', choose it in the Ty&e ro&9 o<n list@ 8ome item t%pes #on=t appear in the list if %ou haven=t turned on the corre* sponding feature' 5or e0ample? the Inventor% Item t%pe doesn=t appear unless %ou=ve turned on inventor% tracking? as descri!ed on page 2 ' 4' #n the #te' >a'eJ>u'.er .o", ty&e a uni?ue i entifier for the ite'@ 5or e0ample? if %ou opt for long and meaningful names? %ou might t%pe Install carpet and vacuum' 5or a short name? %ou might t%pe Inst 4arpt' 8ee page CE for guidelines on naming items' ' To 'ake this ite' a su.ite', turn on the G$u.ite' ofH check.o" an then choose the ite' that you <ant to act as the &arent@ If the parent item alread% e0ists? simpl% choose it from the +8u!item of/ drop* do#n list' To create the parent #hile creating the su!item? choose _:dd Be#` at the top of the +8u!item of/ list? and then 2ump !ack to step & to !egin the parent*creation process'
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CREATIN G

8u!items and parents have to !e the same t%pe? and %ou can=t create su!items for 8u!total? @roup? or ,a%ment items' I' !o'&lete the other fiel s as escri.e in the follo<ing sections for the ty&e of ite' youBre creating@ QuickBooks #ill use the info %ou enter to fill in these fields on sales and purchase forms' 5or e0ample? it uses the sales price %ou enter here on invoices #hen %ou sell some units' If the sales price changes each time? simpl% leave the item=s sales price field "#hich is la!eled >ate? ,rice? or 8ales ,rice depending on the t%pe of item and the item=s settings$ set to Kero' That #a%? QuickBooks doesn=t fill in a price so %ou can t%pe one in each time %ou sell the item' ".ven if %ou set up a value for an item? %ou can over#rite it #henever %ou use that item on a sales form'$
>4TE

Nou have to assign an account to ever% item? #hether it=s a parent item or not'

D' #f you have a itional ite's to create, click >e"t to save the current ite' an start another@ #f you <ant to save the ite' you Iust create an close the >e< #te' <in o<, click 4:@ If %ou=ve made mistakes in several fields or need more information !efore %ou can complete an item? click 4ancel to thro# a#a% the current item and close the Be# Item #indo#'

ER@ICE

e&vi.e Ite3s
8ervices are intangi!le things that %ou sell? like time or the output of %our !rain' 5or e0ample? %ou might sell consulting services? Internet connection time? haircuts? or tarot card readings' In construction? services represent phases of construction? #hich makes it eas% to invoice customers !ased on progress and to compare actual values #ith estimates' 8uppose %ou run a telephone ans#ering service' Nou earn income #hen %our custom* ers pa% %ou for the service' Nou pa% salaries to the people #ho ans#er the phones? regardless of #hether %ou have t#o service contracts or 20' 5or this !usiness? %ou earn income #ith %our service? !ut %our costs don=t link to the income from specific customers or 2o!s' <n the other hand? in some companies? such as la# practices? the partners get paid !ased on the hours the% !ill? so the partners= compensation is an e0pense associ* ated directl% #ith the firm=s income' 8ervices that %ou farm out to a su!contractor #ork similarl%' If %ou offer a C00 num!er for gardening advice? %ou might have a group of freelancers #ho field the calls and #hom %ou pa% onl% for their time on the phone' In these scenarios? %ou still earn income for the service %ou sell? !ut %ou also have to pa% the la#*practice partners or the su!contractors to do the #ork' The partners= or su!contractors= cost relates to the income for that service' 4onve* nientl%? QuickBooks displa%s different fields depending on #hether a service has costs associated #ith income' The might% 8ervice item single*handedl% manages all t%pes of services? #hether %ou charge !% the hour or !% the service? #ith associated e0penses or #ithout' This section descri!es the fields %ou fill in #hen creating 8ervice items'

$ervice #te's ;ithout *ssociate !osts


Aere=s ho# the fields in the Be# Item "or .dit Item$ #indo# #ork #hen %ou=re cre* ating a 8ervice item that doesn=t include purchasing services from someone else "that is? #hen %ou leave the +This service is used in assem!lies or is performed !% a su!contractor or partner/ check!o0 turned off? as sho#n in 5igure * $: V 1escri&tion@ T%pe a detailed e0planation of the service in this !o0' This te0t appears on invoices and sales forms? so use terms that %our customers #ill understand' V Rate@ T%pe ho# much %ou charge customers for the service' Nou can enter a flat fee or a charge per unit of time' 5or e0ample? %ou might charge YC'C for unlimited gardening advice per call? charge !% the minute? or charge Y200 for unlimited calls each month' Jhen %ou add the item to an invoice? QuickBooks multiplies the )uantit% !% the sales price to calculate the total charge' If the item=s cost varies? leave the >ate set to 0W %ou can then enter the price #hen %ou create an invoice or other sales form' If the rate is often the same? fill in the most common rate' Then? #hen %ou add the item to an invoice? %ou can

modif% the rate #henever %ou #ant to use a different amount' 5or services that carr% a flat fee? use a )uantit% of 1 on %our invoices'

8.>LI4. IT.M8

F i )%RE 595

If a service doesn=t have costs directl% associated #ith it? %ou define onl% its description? rate? ta0 code? and income account'

>4TE

QuickBooks multiplies the rates !% the )uantities %ou add to sales forms' Be sure to define the rate in the same units "!% hours or da%s? for e0ample$ so that QuickBooks calculates %our income and e0penses correctl%' V Ta" !o e@ Most 8ervice items are nonta0a!le? so %ou=ll choose Bon here more often than not' "This field appears onl% if %ou=ve turned on the sales ta0 feature? as descri!ed on page &'$ V *ccount@ 4hoose the income account to #hich %ou #ant to post the income for this service? #hether it=s a catchall income account for all %our services or one %ou created specificall% for this service'

$ervice #te's <ith *ssociate !osts


If %ou sell services that have associated costs? such as #hen %ou hire someone else to perform those services? %ou have to set up the 8ervice item to include those costs' The ke% to displa%ing the fields %ou need to fill in #hen %ou purchase services from someone else is the +This service is used in assem!lies or is performed !% a su!contractor or partner/ check!o0? sho#n in 5igure *I' In addition to the !asics like Item Bame(Bum!er and +8u!item of?/ here are the fields %ou fill in #hen an item does have associated costs: V 1escri&tion on 6urchase Transactions@ T%pe in the description that %ou #ant to appear on the !ills or purchase orders %ou issue to su!contractors or vendors' V !ost@ .nter #hat %ou pa% for the service? #hich can !e an hourl% rate or a flat fee' 5or e0ample? if a su!contractor performs the service and receives Y1D for each hour of #ork? t%pe 1D in this field' If the cost varies? leave this field set to 0W %ou can then enter the actual cost #hen %ou create a purchase order'

8.>LI4. IT.M8

E"&ense *ccount@ 4hoose the account to #hich %ou #ant to post #hat %ou pa% for the service' If a su!contractor does the #ork? choose a 4ost of @oods 8old account or an e0pense account for su!contractor or outside consultants= fees' If a partner or o#ner performs the #ork? choose a 4ost of @oods 8old account or an e0pense account for service*related costs'

V 6referre /en or@ If %ou almost al#a%s use the same vendor for a service? choose that vendor in this drop*do#n list' That #a%? if %ou don=t select a vendor #hen %ou first create a purchase order? QuickBooks selects that vendor #hen %ou add this 8ervice item' Ao#ever? if %ou purchase the item from several ven* dors? leave this field !lank'

F i )%RE 590

If su!contractors or partners perform the service and get paid for their #ork? a 8ervice item has to contain information for !oth the sales and purchase transactions' In that case? turn on the +This service is used in assem* !lies or is performed !% a su!contractor or partner/ check!o0 to displa% the additional fields sho#n here'

V 1escri&tion on $ales Transactions@ This field appears on sales forms like invoices and sales receipts' QuickBooks automaticall% copies the te0t from the Qescription on ,urchase Transactions !o0 into this field' Ao#ever? if %our vendors use technical 2argon that %our customers #ouldn=t recogniKe? %ou can change the te0t in this !o0 to something more meaningful' V $ales 6rice@ T%pe in ho# much %ou charge customers for the service? as %ou #ould in the >ate field for a 8ervice item that %ou don=t purchase from someone else "page 104$' V Ta" !o e@ Most 8ervice items are nonta0a!le? so %ou=ll choose Bon here most of the time' "This field appears onl% if %ou=ve turned on QuickBooks= sales ta0 feature? as descri!ed on page &'$ V #nco'e *ccount@ 4hoose the income account to #hich %ou #ant to post the income for this service? #hether it=s a catchall income account for all services or one %ou created specificall% for this service'

,roduct Items
,roducts %ou sell to customers fall into three categories: ones %ou keep in inventor%? ones %ou special order? and ones %ou assem!le' QuickBooks can handle inventor% as long as %our compan% passes the tests on page CI' Pike#ise? products %ou pur* chase specificall% for customers or 2o!s are no pro!lem' :nd as e0plained on page 2E? QuickBooks can handle lightl% assem!led products like gift !askets or giKmos made from #idgetsU!ut %ou=ll need QuickBooks ,remier or .nterprise edition to do more than that' This section descri!es the three t%pes of product items that QuickBooks offers and sho#s %ou ho# to fill in the fields for non*inventor% part items' 8ee 4hapter 20 for the full scoop on creating inventor%*related items' 4hoose one of these three QuickBooks item t%pes for the products %ou sell: V >on9inventory 6art@ If %ou purchase products specificall% for a 2o! or customer and don=t track ho# man% products %ou have on hand? use Bon*inventor% ,art items' ;nlike Inventor% ,art items? this t%pe has at most t#o account fields: one for income %ou receive #hen %ou sell the part? and another for the e0pense of purchasing the part in the first place' V #nventory 6art@ ;se this t%pe for products %ou purchase and keep in stock for resale' >etailers and #holesalers are the o!vious e0amples of inventor%*!ased !usinesses? !ut other t%pes of companies like !uilding contractors ma% track inventor%? too' Jith Inventor% ,art items? %ou can track ho# man% %ou have? ho# much the%=re #orth? and #hen %ou should reorder'
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,><Q;4T IT.M8

Nou can create Inventor% ,art items onl% if %ou turn on QuickBooks= inventor% feature as descri!ed on page 2 ' V #nventory *sse'.ly@ This item t%pe "availa!le onl% in QuickBooks ,remier and .nterprise editions$ is perfect #hen %ou sell products !uilt from %our inventor% items' 5or e0ample? sa% %ou stock #ine !ottles and related products like cork* scre#s and glasses? and %ou assem!le them into gift !askets' Jith an Inventor% :ssem!l% item? %ou can track the num!er of gift !askets %ou have on hand? as #ell as the individual inventor% items that go into them' Nou can also assign a different price for the gift !asket than the total of the individual products'

>on9#nventory 6art Fiel s


Nou=ll need Bon*inventor% ,art items if %ou use purchase orders to !u% supplies or other products that %ou don=t track as inventor%' 5or e0ample? suppose %ou=re a general contractor and %ou !u% materials for a 2o!' Jhen %ou use Bon*inventor% ,art items? QuickBooks posts the cost of those products to an e0pense account and the income from selling them to an income account' Nou don=t have to !other #ith an inventor% asset account !ecause %ou transfer o#nership of these products to the

<TA.> TN,.8 <5 IT.M8

customer almost immediatel%' "8ee page 24 customer for these reim!ursa!le e0penses'$

to learn ho# to charge %our

The good ne#s is that Bon*inventor% ,art items use all the same fields as 8ervice items "page 104$? although there are a fe# su!tle differences %ou need to kno#' Take the follo#ing disparities into account #hen %ou create Bon*inventor% ,art items: V This ite' is use in asse'.lies or is &urchase for a s&ecific custo'er:Io.@ This check!o0 goes !% a different name than the one for 8ervice items? !ut its effect is the same' Turn it on #hen %ou #ant to use different values on purchase and sales transactions for items %ou resell' Jhen this check!o0 is on? QuickBooks displa%s ,urchase Information and 8ales Information sections? like the ones sho#n in 5igure *I "page 10I$' 5or Bon*inventor% ,art items? choose income and e0pense accounts %ou set up specificall% for products' If the Bon*inventor% ,art item is for office supplies %ou #ant to place on a pur* chase order? then leave this check!o0 off !ecause %ou #on=t have sales values' >ead on to find out #hat happens #hen %ou turn this check!o0 off' V *ccount@ If %ou don=t resell this product? leave the +This item is used in assem* !lies or is purchased for a specific customer:2o!/ check!o0 turned off? and %ou=ll see onl% one :ccount field' QuickBooks considers the account in this field the e0pense account for the purchase' V Ta" !o e@ This #orks e0actl% the same #a% as it does for a 8ervice item' 4hoose Bon if the products are nonta0a!le "like groceries$? and Ta0 if the%=re ta0a!le' "This field appears onl% if %ou=ve turned on QuickBooks= sales ta0 feature? as descri!ed on page &'$

T#6

Man% companies don=t !other #ith purchase ordersUforms that record #hat %ou order from a vendorU #hen !u%ing office supplies' But if %ou #ant to track #hether %ou receive the supplies %ou !ought? %ou can create purchase orders for them "page &0$' Then use Bon*inventor% ,art items for supplies %ou add to purchase orders !ut don=t track as inventor%' ">emem!er? purchase orders are non*posting transactions Zpage &0[? so the% don=t affect the !alances in %our accounts'$

<ther T%pes of Items


If a line on a sales form isn=t a service or a product? read this section to figure out the t%pe of item %ou need' "4hapter 21 covers setting up 8ales Ta0 items'$

4ther !harge
The <ther 4harge item is aptl% named !ecause %ou use it for an% charge that isn=t )uite a service or a product? like shipping charges? finance charges? or !ounced check charges' <ther 4harge items can !e percentages or fi0ed amounts' 5or e0ample? %ou could set up shipping charges that are the actual cost of shipping? or calculate shipping as a percentage of the product cost'

10F

QUICKBOOKs 2014: tHe MIssInG

I? * .1st(3e& %(/)s ;*.0 * 2e&.ent*,e (? <(1& .%*&,es 1nti/ <(1

OTHER

satisfactoril%? create an <ther 4harge item for the retainer "the portion of %our fee that the customer doesn=t pa% initiall%$' Then? #hen %ou create the invoice? enter a negative percentage so QuickBooks deducts the retainer from the invoice total' Jhen %our customer approves the 2o!? create another invoice? this time using another <ther 4harge item named >etention? to charge the customer for the amount she #ithheld'
T#6

<5 IT.M8

,rogress invoices "page 2I4$ are another #a% to invoice customers for a portion of a 2o!' The%=re ideal if %ou invoice the customer !ased on the percentage of the 2o! %ou=ve completed or on the parts of the 2o! that are complete' <ther 4harge items can !e linked to e0pensesUor not' Aere are %our options: V * charge linke to e"&enses@ 5or <ther 4harge items? the check!o0 for hiding or sho#ing purchase fields is la!eled +This item is used in assem!lies or is a reim!ursa!le charge'/ Turn on this check!o0 #hen %ou #ant to set the 4ost field to #hat %ou pa% and the 8ales ,rice field to #hat %ou charge %our customers' Nou=ll see the same sets of fields for purchases and sales as %ou do for 8ervice and Bon*inventor% ,art items' V * charge <ithout associate e"&enses@ Nou can create charges that don=t link directl% to e0penses !% leaving the +This is used in assem!lies or is a reim!ursa!le charge/ check!o0 turned off' Nou can then create a percentage* !ased charge? #hich is useful for calculating shipping !ased on the value of the products !eing shipped' Jith the check!o0 off? instead of the 4ost and 8ales ,rice fields? %ou see the +:mount or %/ field' If %ou #ant to create a charge for a specific amount "like the value for a countr% clu!=s one*time initiation fee$? t%pe a #hole or decimal num!er in this field? as sho#n in 5igure *D' To create a percentage*!ased charge? t%pe a num!er follo#ed !% +%/? such as 10%? in this field instead'

F i )%RE 593

To create a percentage* !ased charge? t%pe a num!er follo#ed !% +%/ in the +:mount or %/ field' To set a dollar value instead? t%pe a num!er #ithout the percent s%m!ol? as sho#n here'

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>4TE

Jhen %ou add a percentage*!ased <ther 4harge item to an invoice? such as shipping? QuickBooks applies the percentage to the previous line in the invoice' If %ou #ant to appl% the <ther 4harge percentage to several items? then add a 8u!total item "e0plained ne0t$ to the invoice on the line a!ove the <ther 4harge item'

$u.total
Nou=ll need a 8u!total item if %ou appl% sales ta0 to all the products %ou include on a sales form? discount onl% some of the items on a form? or calculate shipping !ased on the value of the order' Nou need to create onl% one 8u!total item in QuickBooks? !ecause a 8u!total item does 2ust one thing: totals all the amounts for the preced* ing lines up to the last su!total or the !eginning of the invoice' That means %ou can add more than one su!total to an invoice' 5or e0ample? %ou can use one 8u!total item to add up the services %ou sell !efore appl%ing a preferred*customer discount and a second 8u!total item for product sales #hen %ou have to calculate shipping' Because %ou can=t change a 8u!total item=s !ehavior? 8u!total items have 2ust t#o fields: Item Bame(Bum!er and Qescription' Nou can t%pe an% name and description %ou #ish in these fields? !ut in practicall% ever% case? 8u!total sa%s it all'

)rou&
@roup items are great timesavers? and the%=re indispensa!le if %ou tend to forget things' :s the name implies? a @roup item represents several related items %ou often !u% or sell together' 4reate a @roup item that contains items that al#a%s appear together? such as each service %ou provide for a landscaping 2o!' That #a%? #hen %ou add the Pandscaping @roup item to an invoice? QuickBooks automaticall% adds the 8ervice items for the various phases? such as .0cavation? @rading? ,lanting? and 4leanup' Nou can also use a @roup item to sho# or hide the underl%ing items? #hich is useful mainl% #hen %ou create fi0ed*price invoices "page 2&1$ and %ou don=t #ant the customer to see the underl%ing details' Aere=s ho# %ou set up a @roup item: V )rou& >a'eJ>u'.er@ T%pe a name for the group that gives a sense of the individual items #ithin it? such as 8ecurit% ,ackage' V 1escri&tion@ T%pe the description that %ou #ant to appear on sales forms' V 6rint ite's in grou&@ To sho# all the underl%ing items on %our invoices? turn on this check!o0' 5igure *E "top$ sho#s an invoice that prints all the items in a group and #hat an invoice looks like #hen %ou leave this check!o0 turned off "!ottom$' V #te'@ To add an item to a group? click a !lank cell in the Item column? sho#n in 5igure *C? and then choose the item %ou #ant' Nou can also create a ne# item !% choosing _:dd Be#` from the drop*do#n list' V Qty@ @roup items can include different )uantities of items? 2ust like a !o0 of notecards usuall% includes a fe# more envelopes than cards' 5or each item in the group? t%pe ho# man% %ou t%picall% sell as part of that group' If the )uantit%

(? e*.% ite3 v*&ies+ t<2e 0 in t%e Qt< .e//s' $(1 .*n t%en s2e.i?< t%e H1*ntities

OTHER T$5E

F i )%RE 59 7

Top: If %ou turn on the +,rint items in group/ check!o0 #hen %ou create a @roup item "8ecurit% ,ackage? in this e0ample$ and then add it to an invoice? QuickBooks lists all the individual items it contains' Bottom: If %ou leave the +,rint items in group/ check!o0 turned off #hen %ou create the @roup item? %ou=ll see the individual items in the 4reate Invoic* es #indo#? !ut the invoice %ou print to send to the customer #ill list onl% the @roup item itself? along #ith the total price for all the items in the group'

F i )%RE 59+

Jhen %ou #ork on a @roup item in the Be# Item or .dit Item #indo#? the !ackground of the Qescrip* tion column is shaded to indicate that %ou can=t edit those cells' That=s !ecause QuickBooks fills in the Qescription cells #ith the contents of each individual item=s Qescription field' To edit them? %ou have to edit the items themselves'

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1iscount
:s %ou kno#? a discount is an amount %ou deduct from the standard price %ou charge? such as a volume discount? customer*lo%alt% discount? or sale discount' QuickBooks= Qiscount item calculates deductions like these' B% using !oth 8u!total and Qiscount items? %ou can appl% discounts to some or all of the charges on a sales form' Qiscount items deduct either a dollar amount or a percentage for discounts %ou appl% at the time of sale'
>4TE

.arl% pa%ment discounts don=t appear on sales forms !ecause %ou #on=t kno# that a customer pa%s earl% until long after that form is complete' Nou appl% earl% pa%ment discounts in the >eceive ,a%ments #indo#? descri!ed on page && ' The fields for a Qiscount item are similar to those of an <ther 4harge item #ith a fe# small differences: V *'ount or Q@ To deduct a dollar amount? t%pe a positive num!er "#hole or decimal$ in this field' To deduct a percentage? t%pe a #hole or decimal num!er follo#ed !% +%?/ like ' % ' V *ccount@ 4hoose the account to #hich %ou #ant to post the discounts %ou appl%' Nou can post discounts to either an income or e0pense account' Jhen %ou post discounts to an income account? the% appear as negative income? so %our gross profit reflects #hat %ou actuall% earned after deducting them' ,osting discounts to an e0pense account? on the other hand? makes %our income look !etter than it actuall% is' But the discounts increase the amount in %our e0pense account? so %our net profit is the same no matter #hich approach %ou use' V Ta" !o e@ Most of the time? %ou choose a ta0a!le code in this field "#hich appears onl% if %ou have the program=s sales ta0 features turned on$ so that QuickBooks applies the discount !efore it calculates sales ta0' 5or instance? if customers !u% products on sale? the% pa% sales ta0 on the sale price? not the original price' If %ou choose a nonta0a!le code in this field? QuickBooks applies the discount after it calculates sales ta0' Nou=ll rarel% #ant to do this? though? !ecause it means %ou=ll collect less sales ta0 from customers than %ou have to send to the ta0 agencies'

6ay'ent
Jhen customers send %ou pa%ments? %ou can record them in QuickBooks !% using the >eceive ,a%ments feature "page &2I$' But if %ou=re in the middle of creating invoices #hen the checks arrive? %ou can avoid that task !% recording those pa%ments right in %our invoices !% adding a ,a%ment item' :s 5igure *10 e0plains? ,a%ment items do more than reduce the amount o#ed on the invoice' In addition to the T%pe? Item Bame(Bum!er? and Qescriptions fields? ,a%ment items !oast fields unlike those for other items' These uni)ue fields tell QuickBooks the method of pa%ment that a customer uses and #hether %ou deposit the funds in a specific !ank account or group them #ith other undeposited funds' Aere are the details:

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WORKING

F i )%RE 5910

: ,a%ment item "here? a check$ reduces the !alance on an invoice !% the amount the customer paid and performs the same actions as the >eceive ,a%ments feature: deposits the funds into a !ank account or groups the pa%ment #ith other undeposited funds'

V 6ay'ent Metho @ 4hoose a method such as cash? check? or !rand of credit card' That #a%? #hen %ou choose BankingMMake Qeposits "page &4C$ to make a deposit and the +,a%ments to Qeposit/ #indo# opens? %ou can filter pending deposits !% pa%ment method' V )rou& <ith other un e&osite fun s@ 4hoose this option if %ou #ant to add the pa%ment to other pa%ments %ou received' 5or e0ample? %ou group pa%ments #ith other undeposited funds if %ou save up the checks customers send so %ou can make one trip to deposit them all in %our !ank' That #a%? #hen %ou add this ,a%ment item to a sales form? QuickBooks adds the pa%ment to the list of undeposited funds' To actuall% complete the deposit of all %our pa%ments? choose BankingMMake Qeposits "page &4C$' V 1e&osit To@ If pa%ments flo# into an account #ithout an% action on %our part? such as credit card or electronic pa%ments? choose this option and then choose the appropriate !ank account in the drop*do#n list'

Jorking #ith Items


Item info changes from time to time: ,rices increase or decrease? descriptions change? or %ou decide to use different accounts' Nou can make changes like this at an% time' In addition? %ou can hide items so onl% the ones %ou currentl% sell appear in item drop*do#n lists' If %ou created an item !% mistake? %ou can delete it to remove it permanentl%' This section e0plains ho# to perform all these tasks'

Mo ifying #te's
Nou can change information a!out an item even if %ou=ve alread% used it in transac* tions' The changes %ou make don=t affect e0isting transactions? !ut #hen %ou create ne# transactions using that item? QuickBooks uses the updated info to fill in fields'

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In the Item Pist #indo# "PistMItem Pist$? dou!le*click the item %ou #ant to edit' QuickBooks opens the .dit Item #indo#' 8impl% make the changes %ou #ant and then click <6' If %ou #ant to modif% several items at once? use the :dd(.dit Multiple Pist .ntries feature "page 11E in 4hapter I$ instead'
>4TE

If %ou change an account associated #ith an item "like the income account to #hich sales post$? the :ccount 4hange dialog !o0 appears #hen %ou save the edited item' This dialog !o0 tells %ou that all future transactions for that item #ill use the ne# account' If %ou also #ant to change the account on all e0isting transac* tions using the item? consult #ith %our accountant to make sure that change is <6 !efore %ou click Nes' 4lick Bo to keep the old account on e0isting transactions that use the item' Be particularl% attentive if %ou decide to change an item=s T%pe field' Nou can change onl% Bon*inventor% ,art and <ther 4harge items to other item t%pes? and %ou can change them onl% into certain other item t%pes: 8ervice? Inventor% ,art? Inventor% :ssem!l% "availa!le onl% in QuickBooks ,remier and .nterprise$? Bon* inventor% ,art? or <ther 4harge' If %ou conclude from this that %ou can=t change a Bon*inventor% ,art item !ack once %ou change it to an Inventor% part? %ou=re a!solutel% correct' To prevent t%pe*change disasters? !ack up %our QuickBooks file "see page 02$ !efore s#itching item t%pes'
T#6

,arts that %ou keep in inventor% have value that sho#s up as an asset of %our compan%? !ut Bon* inventor% ,arts sho# up simpl% as e0penses' 8o if %ou change a Bon*inventor% ,art item to an Inventor% ,art item? !e sure to choose a date in the +:s of/ field that=s after the date of the last transaction that uses the item in its non*inventor% guise'

Hi ing #te's
Aiding items and deleting them are t#o totall% different actions? although the visi!le result is the same: QuickBooks doesn=t displa% the items in the Item Pist #indo# or in item drop*do#n lists' :s #ith deleting items "#hich %ou=ll learn a!out in a sec?$ #hen %ou hide items? the% don=t appear in the Item Pist? #hich prevents %ou from selecting them accidentall% and keeps %our Item Pist more concise' But unlike deleting? hiding is reversi!le: Nou can s#itch items !ack to active status if %ou start selling them again' 8uppose %ou hid the item for !ell*!ottom hip*huggers in 1CD4' Qecades later? no# that =D0s retro has !ecome cool again? %ou can reactivate that item and use it on sales forms' "<f course? %ou=ll pro!a!l% #ant to edit the cost and sales price to reflect toda%=s econom%'$ If %ou=ve sold an item in the past? then the onl% #a% to remove it from the Item Pist is to hide itUQuickBooks #on=t let %ou delete items that have transactions associ* ated #ith them' Aere=s a guide to hiding and reactivating items: V Hi e an ite'@ In the Item Pist? right*click the item and choose Make Item Inac* tive from the shortcut menu' The item disappears from the list'

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QUICKBOOKs 2014: tHe MIssInG

: @ie= *// ite3s+ *.tive (& in*.tive' At t%e ;(tt(3 (? t%e Ite3 Cist =in)(=+ t1&n (n t%e 4In./1)e in*.tiveJ .%e.0;(x' KT%is .%e.0;(x is

WORKING

items are active'$ QuickBooks then displa%s a column #ith an R as its heading and sho#s an R in that column for ever% inactive item in the list'

V Reactivate a hi en ite'@ 5irst? turn on the +Include inactive/ check!o0 to displa% all items' Then? click the R ne0t to the name of the item %ou #ant to reactivate' Jhen %ou click the R ne0t to a parent item? QuickBooks opens the :ctivate @roup dialog !o0' If %ou #ant to reactivate all the su!items as #ell as the parent? click NesW to reactivate onl% the parent item? click Bo' If %ou find that %ou=re constantl% hiding items %ou no longer sell? %our Item Pist might !e too specific for %our constantl% changing product list' 5or e0ample? if %ou create 100 items for the clothes that are fashiona!le for teenagers in Ma%? those items #ill !e o!solete !% Oune' 8o consider creating more generic items? such as pants? shorts? T*shirts? and !athing suits' Nou can then reuse these items season after season? %ear after %ear? #ithout #orr%ing a!out running out of room in the Item Pist? #hich is limited to 14? 00 entries'
T#6

To see ho# man% items %ou have? press 52 to open the ,roduct Information #indo#' In the Pist Informa* tion section on the right side of the #indo#? look for the Total Items figure "%ou ma% have to scroll do#n in the Pist Information !o0 to see it$'

1eleting #te's
The onl% time %ou=ll delete an item is #hen %ou create it !% mistake and #ant to eliminate it permanentl% from the Item Pist' Nou can delete an item onl% if it doesn=t have an% transactions associated #ith it' If %ou erroneousl% create an item and catch %our mistake immediatel%? deleting the offender is no s#eat' <pen the Pist Item #indo# "PistsMItem Pist$ and then use one of these methods: V 8elect the item and then press 4trlTQ' V >ight*click the item? and then choose Qelete Item on the shortcut menu' V 8elect the item? and then head to the main QuickBooks menu !ar and choose .ditMQelete Item' V :t the !ottom of the Item Pist #indo#? click ItemMQelete Item' If %ou tr% to delete an item that=s used in even one transaction? QuickBooks #arns %ou that %ou can=t delete it' 8a% %ou created an item !% mistake and then compounded the pro!lem !% inadvertentl% adding the item to an invoice' Jhen %ou realiKe %our error and tr% to delete the item? QuickBooks refuses to o!lige' 5ortunatel%? it=s prett% eas% to run a report to find the transactions that contain that item and then replace it #ith another item:

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J<>6IB@ JITA IT.M8

1' 4&en the #te' 2ist <in o< K2istsM#te' 2istL, an then right9click the ite' an choose GQuickRe&ort: Rite' na'eSH on the shortcut 'enu@ QuickBooks opens the Item Quick>eport report #indo#' Qepending on ho# %our report preferences are set? the Modif% >eport dialog !o0 might open as #ell' 2' #f the Mo ify Re&ort ialog .o" a&&ears, on the 1is&lay ta., choose *ll at the to& of the 1ates ro&9 o<n list an then click 4:@ If the Modif% >eport dialog !o0 doesn=t appear? in the Item Quick>eport #indo#? choose :ll in the Qates drop*do#n list' &' To e it a transaction to re'ove an ite', in the re&ort <in o<, the transaction@ ou.le9click

QuickBooks opens the dialog !o0 or #indo# that corresponds to the t%pe of transaction %ou dou!le*clicked' 5or e0ample? if %ou dou!le*click an invoice? QuickBooks opens the 4reate Invoices #indo# and displa%s the invoice %ou chose' In the 4reate Invoices #indo#=s Item column? click the cell containing the item %ou #ant to delete? click the do#n arro# in that cell? and then choose the replacement item from the Item drop*do#n list' 4' To save the transaction <ith the revise ite', click $ave A !lose@

Nou=ll kno# that %ou=ve successfull% eliminated the item from all sales transac* tions #hen the Item Quick>eport #indo# sho#s no transactions'
T#6

To make sure %ou=ve removed all links to the item? in the !utton !ar at the top of the report #indo#? click >efresh to update the report !ased on the current data in %our QuickBooks file' ' To close the re&ort <in o<, click the F .utton at its u&&er right@ QuickBooks takes %ou !ack to the Item Pist #indo#' I' #n the #te' 2ist <in o<, select the ite' you <ant to elete an then &ress !trlO1@ #n the 1elete #te' 'essage .o" that a&&ears, click 4: to confir' that you <ant to get ri of the ite'@ The item disappears from %our Item Pist for good? and %ou=re read% to get !ack to #ork'

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QUICKBOOKs 2014: tHe MIssInG

CHA5TER

I Qata .ntr% 8hortcuts for Pists

I f %ou fre)uentl% add or edit more than one customer? vendor? or item at a time?
#orking in a Be# or .dit #indo# "like Be# 4ustomer or .dit Item$ isn=t onl% te* dious? !ut it also takes up time %ou should spend on more important tasks? like selling? managing cash flo#? or finding out #ho has the incriminating pictures from the last compan% part%' Jhen %ou set up %our compan% file? the QuickBooks 8etup dialog !o0 helps %ou !ring information in from an email program or .0cel "page 1E$? and %ou can use that same #indo# an%time %ou #ant to add more customers or vendors' :nother option is the :dd(.dit Multiple Pist .ntries feature' Jhen %ou=re creating customers? vendors? or items? %ou can use the :dd(.dit Multiple Pist .ntries #indo# to paste data from .0cel into QuickBooks' <r? to edit e0isting records? %ou can filter or search the list in that #indo# to sho# 2ust the customers "or vendors? or items$ %ou #ant to update and then paste in .0cel data? t%pe in values? or cop% values !et#een records' This chapter sho#s %ou ho# to perform all those tasks' Then again? %ou might store info a!out customers and vendors in other programs such as a data!ase or #ord*processing program #here %ou create mailing la!els' If %our other programs can create .0cel*compati!le files or delimited te0t files? %ou can avoid data*entr% grunt #ork !% transferring data to or from QuickBooks' "Qelimited te0t files are simpl% files that separate each piece of data #ith a comma? space? ta!? or other character'$ In !oth t%pes of files? the same kind of info appears in the same position in each line or ro#? so QuickBooks "as #ell as other programs$ can pull the information into the right places' Jhen %ou #ant to transfer a ton of data from another program into QuickBooks? importing is the #a% to go' B% mapping QuickBooks fields to the fields in the other program? %ou can )uickl% transfer hundreds or even thousands of records' In this chapter? %ou=ll learn a!out

11

ADDING AND M;PTI,P.


>.4<>Q8

the ke%#ords QuickBooks uses to put %our data into the correct fields and ho# to get %our import file set up to #ork #ith QuickBooks' The chapter #raps up #ith the steps for importing data into %our compan% file' "4hapter 2I provides the full stor% on importing and e0porting data'$

:dding and .diting Multiple >ecords


The :dd(.dit Multiple Pist .ntries feature is a great tool for adding or updating values in the 4ustomer? Lendor? and Item lists' If %ou have data in an .0cel spreadsheet? %ou can paste it directl% into a ta!le in the :dd(.dit Multiple Pist .ntries #indo#' The #indo#=s features for cop%ing or duplicating values !et#een records come in hand% #ith changes like updating the !illing address for a customer #ho sends %ou 2o! after 2o!' "T%ping values into cells #orks? too? if %ou notice a t%po in one of the records in the list'$ :nd %ou can customiKe the #indo#=s ta!le to sho# onl% the customers? vendors? or items %ou #ant to edit and the fields %ou #ant to modif%' This feature goes !% different names depending on #here %ou find it in QuickBooks' 4hoose it in an% of these locations to open the :dd(.dit Multiple Pist .ntries #indo#: V #n the 2ists 'enu, choose * JE it Multi&le 2ist Entries@ Jhen %ou go this route? QuickBooks sets the #indo#=s Pist !o0 to 4ustomers' V #n the !usto'er !enter tool.ar, click >e< !usto'er A -o.M* Multi&le !usto'er:-o.s or E"celM6aste fro' E"cel@ QuickBooks sets the Pist !o0 to 4ustomers' V #n the /en or !enter tool.ar, click >e< /en orM* Multi&le /en ors or E"celM6aste fro' E"cel@ QuickBooks sets the Pist !o0 to Lendors' V *t the .otto' of the #te' 2ist <in o< K&age 102L, click #te'M* JE it Multi&le #te's or E"celM6aste fro' E"cel@ QuickBooks sets the Pist !o0 to 8ervice Items'

$electing a 2ist to ;ork ;ith


:s mentioned a!ove? if %ou open the :dd(.dit Multiple Pist .ntries #indo# from the 4ustomer 4enter? Lendor 4enter? or Item Pist #indo#? QuickBooks automaticall% selects the appropriate list in the #indo#=s Pist drop*do#n menu' Nou can s#itch lists !% choosing 4ustomers? Lendors? 8ervice Items? Inventor% ,arts? or Bon*inventor% ,arts from this drop*do#n menu'
T#6

If %ou set up 2o!s for customers? the :dd(.dit Multiple Pist .ntries #indo#=s ta!le includes ro#s for !oth customers and 2o!s' The Bame column contains the customer=s name for a customer ro# and the 2o!=s name for a 2o! ro#' ;suall%? %ou can spot 2o! ro#s !% looking at the 4ompan% Bame field? since all 2o!s for that customer #ill have the same value listed here'

11

QUICKBOOKs 2014: tHe MIssInG

!usto'i=ing the Ta.leBs !olu'ns


To paste data from .0cel in a 2iff%? take a minute to get the columns in the :dd(.dit Multiple Pist .ntries #indo#=s ta!le in the same order as the columns in %our .0cel spreadsheet' If %ou=re an .0cel #hiK? %ou ma% prefer to rearrange the columns in %our spreadsheet' <r %ou can customiKe the ta!le in QuickBooks !% clicking 4ustomiKe 4olumns in the #indo#=s upper right to open the 4ustomiKe 4olumns dialog !o0 sho#n in 5igure I*1'

ADDING AND M;PTI,P.


>.4<>Q8

F i )%RE 091

In addition to adding and removing columns? %ou can change the position of a column !% selecting it in the 4hosen 4olumns list and then clicking Move ;p or Move Qo#n "foreground$' If %ou completel% mangle the columns? click Qefault to restore the original ones' Jhen %ou click <6? the 4ustomiKe 4olumns dialog !o0 closes? and the changes %ou made are reflected in the ta!le "!ackground$'

Aere are the ta!le customiKations %ou can make: V * a colu'n@ 8elect the field %ou #ant in the :vaila!le 4olumns list? and then click :dd' The field 2umps over to the 4hosen 4olumns list' V Re'ove a colu'n@ 8elect a field in the 4hosen 4olumns list and then click >emove' The field moves !ack over to the :vaila!le 4olumns list' Nou can=t remove re)uired fields like BameW QuickBooks gra%s out the >emove !utton if %ou select a re)uired field in the 4hosen 4olumns list' V Reor er colu'ns@ In the 4hosen 4olumns list? select the field %ou #ant to move to a different position in the ta!le' Then click Move ;p or Move Qo#n to move the field up or do#n in the list? respectivel%' Moving a field up in the list posi* tions the field farther to the left in the ta!leW moving it do#n in the list pushes the field=s column to the right in the ta!le'

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1is&laying the Recor s 8ou ;ant


In addition to customiKing the columns in the :dd(.dit Multiple Pist .ntries ta!le? %ou can also control #hich records the ta!le displa%s' 5or e0ample? editing entries is easier if %ou filter the list to displa% onl% the ones %ou #ant to edit' Aere are some #a%s to control #hat %ou see in the ta!le: V Filter the entries@ The Lie# drop*do#n list includes several choices for filter* ing the list' 4hoose the :ctive entr% ":ctive 4ustomers? :ctive Lendors? :ctive 8ervice Items? and so on$ if %ou #ant to make changes to onl% active records in %our compan% file' 4hoosing the Inactive entr% "Inactive 4ustomers? Inactive Inventor% Items? and so on$ displa%s onl% records that %ou=ve set to inactive status "page 114$' Because QuickBooks doesn=t save the changes %ou make in the :dd(.dit Mul* tiple Pist .ntries #indo# until %ou click 8ave 4hanges? %ou can filter !% ;nsaved 4ustomers "or ;nsaved Lendors or ;nsaved Items$ to see all the entries %ou=ve edited !ut haven=t %et saved' 4hoosing the entr% that ends in +#ith errors/ displa%s onl% entries that contain invalid values? like a vendor t%pe or ta0 code that doesn=t e0ist in %our com* pan% file' In fact? if %ou click 8ave 4hanges #hen there are records #ith errors? QuickBooks automaticall% filters the list to the +#ith errors/ vie# so %ou can see #hat %ou need to correct !efore %ou can save %our changes' ,age 12I e0plains ho# to spot and fi0 errors' To filter the list to %our e0act specifications? choose 4ustom 5ilter and then fill in the dialog !o0 sho#n in 5igure I*2 "foreground$' 5or e0ample? if %ou #ant to divide %our government customers into local? state? and federal groups? %ou can filter the list to sho# onl% records #ith +@overnment/ in their customer fields' Bote that QuickBooks displa%s onl% list entries that e0actl% match #hat %ou filter for? so if %ou t%pe " $ to look for the area code? records that don=t have parentheses around the area code #on=t sho# up' V Fin entries@ T%ping a #ord? value? or phrase in the #indo#=s 5ind !o0 is similar to appl%ing a custom filter to the list? e0cept that QuickBooks searches all fields' 5or e0ample? if %ou t%pe in the 5ind !o0 and then click the 8earch !utton "#hich has a magnif%ing glass on it$? QuickBooks displa%s records that contain an%#here? #hether it=s in the compan% name? telephone num!er? address? or account num!er field'

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To clear a custom filter or the search criteria %ou t%ped in the 5ind !o0? simpl% click the !utton #ith the red R on it to the right of the 5ind !o0'

M;PTI,P. >.4<>Q8

F i )%RE 092

In the 4ustom 5ilter dialog !o0? %ou can t%pe a #ord? value? or phrase to look for? and specif% the fields %ou #ant QuickBooks to search' 5or e0ample? t%pe cia in the 5or field and set the +in/ drop*do#n list to +:ll common fields/ to find customers #ith +cia/ in fields like Bame? 4ompan% Bame? and so on'

:fter %ou search for one value? %ou can search for something else #ithin the results from the first search' 5or e0ample? %ou could do an initial search for customers #ith +Te0as/ in their addresses? and then search #ithin those re* sults to find ever% customer in Qallas' To do so? t%pe the second search value in the 5ind !o0? turn on the +8earch #ithin results/ check!o0? and then click the 8earch !utton'
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QuickBooks is )uite literal in its searches? so the entries %ou see in %our search results e0actl% match #hat %ou t%ped in the 5ind !o0' 5or e0ample? if %ou t%pe Be# Nork? QuickBooks displa%s customer records that contain that e0act phrase? !ut not ones that use the a!!reviation BN' V $ort the list entries@ To sort the entries in the ta!le? click the column heading for the field %ou #ant to sort !%? and QuickBooks sorts the records in ascending order "from : to \ or from lo# to high num!ers$' 4lick again to sort in descend* ing order' Jhen the ta!le is sorted !% the values in a given column? a small triangle appears to the right of that column=s heading' The triangle points up #hen the column is sorted in ascending order and do#n #hen the values are sorted in descending order'

ing or E iting 2ist Entries

Jhether %ou #ant to add ne# entries or edit e0isting ones? the :dd(.dit Multiple Pist .ntries #indo# offers several hand% options' Nou can t%pe in values or use features like 4op% Qo#n to cop% values !et#een records' If %our data is in an .0cel

M;PTI,P. >.4<>Q8

spreadsheet? pasting the info from .0cel into the ta!le is a !reeKe' "Jhen %ou #ant to add a ne# record? %ou first have to click the first empt% ro# at the !ottom of the list'$ This section e0plains ho# to enter data directl% in the ta!le or paste it from .0cel' E>TER#>) 1*T* 1#RE!T28 #> THE T*B2E 5or an edit here and a ne# entr% there? the :dd(.dit Multiple Pist .ntries ta!le helps take the tedium out of data entr%' Aere are the various #a%s to enter values in records: V Ty&e values in cells@ This method is straightfor#ard: 4lick a cell and make %our changes' Jhen %ou click a cell that alread% contains data? the program automaticall% selects the cell=s contents so %ou can start t%ping to replace the e0isting value' Nou can also use common editing techni)ues like dragging to select te0t or clicking to position %our cursor in the te0t' V !o&y an &aste ata <ithin the ta.le@ Nou can also cop% and paste data from one cell in the ta!le to another' 5or e0ample? if a customer #ith several 2o!s has relocated its main office? %ou can cop% values from Bill To cells and paste them into the cells for the customer=s 2o!s' Jhen %ou cop% and paste data #ithin the ta!le? %ou can cop% onl% one cell at a time' >ight*click the cell %ou #ant to cop%? and then choose 4op% on the shortcut menu' Then right*click the cell into #hich %ou #ant to paste the data? and choose ,aste on the shortcut menu' 6e%!oard shortcuts #ork? too: ,ress 4trlT4 to cop% a cell? and 4trlTL to paste the copied data' If %ou #ant to move the data from the original cell to a ne# home? use 4trlTR to cut the data rather than cop% it'
T#6

If %ou #ant to cop% several cells in the :dd(.dit Multiple Pist .ntries ta!le? it=s )uicker to make the changes in an .0cel spreadsheet and then paste the data from .0cel into the :dd(.dit Multiple Pist .ntries ta!le "page 12&$' V 1u&licate a ro<@ To create a ne# record that has man% of the same values as an e0isting record? right*click a cell in the e0isting ro# and then choose Quplicate >o# from the shortcut menu' The ne# record appears in the ro# !elo# the original and contains all the same values as the original record? e0cept that the value in the first field !egins #ith +Q;,/ to differentiate it from the original' 5irst? edit the Bame cell to reflect the ne# name' Then edit the cells in the ro# that have different values' V !o&y values o<n a colu'n@ Nou can )uickl% fill in several cells in a column !% using the 4op% Qo#n feature' Because this feature copies data into all cells !elo# the one %ou select? it=s important to filter the list "page 120$ to sho# onl% the records %ou #ant to change' Then right*click the cell %ou #ant to cop% do#n the column and choose 4op% Qo#n from the shortcut menu' QuickBooks copies the value in the selected cell to all the cells !elo# it in the column? over#riting an% e0isting data' 5or e0ample? if %ou #ant to change the contact name for all the 2o!s for a particular customer? filter the list to sho# 2ust the records for that customer "in the 5ind !o0? t%pe the customer=s name? and then click the

3*,ni?<in, ,/*ss i.(nL' Next+ t<2e t%e ne= .(nt*.t int( t%e ?i&st C(nt*.t .e//' T%en &i,%t-./i.0 t%*t .e// *n) .%((se C(2< D(=n'
V #nsert a ro<@ If %ou #ant to insert a !lank line in the ta!le "to create a ne# 2o! for a customer? for e0ample$? right*click the ro# that=s currentl% #here %ou #ant the !lank line? and then choose Insert Pine from the shortcut menu "or press 4trlTInsert$' V 1elete a ro<@ If %ou created a record !% mistake? %ou can get rid of it !% right* clicking an%#here in its ro# and then choosing Qelete Pine' "This entr% is gra%ed out if the entr% is used in a transaction or other record? !ecause %ou can=t delete a record if it=s referenced some#here else in %our compan% file'$ V !lear a colu'n@ To clear all the values in a column? right*click in the column and then choose 4lear 4olumn from the shortcut menuW QuickBooks immediatel% removes all the values in that column' If %ou chose this feature !% mistake? %ou can undo the deletion !% clicking 4lose and then? in the ;nsaved 4ustomer"s$ message !o0? clicking Bo'

ADDING AND EDITING

!468#>) *>1 6*$T#>) /*2%E$ FR4M EF!E2 If %ou=re a fan of cop%ing and pasting "and #ho isn=tG$? %ou can cop% data from an .0cel spreadsheet "a single cell? a range of cells? one or more ro#s? or one or more columns$ and paste it into the ta!le' The onl% re)uirement is that the ro#s and columns in the ta!le and in the spreadsheet have to contain the same information in the same order' Nou can rearrange the ro#s and columns either in the :dd(.dit Multiple Pist .ntries #indo# "page 11C$ or in .0cel? #hichever %ou prefer' If %ou #ant to cop% and paste customers and 2o!s "or items #ith su!items$? %ou first have to create the top*level entries? as sho#n in 5igure I*&' That=s !ecause 2o!s %ou paste include the name of the customer in the 4ompan% Bame field "for items? the parent item=s name appears in the +8u!item of/ field$' <nce the parent entries e0ist? %ou can use the :dd(.dit Multiple Pist .ntries #indo# again to paste 2o!s "or su!items$'
>4TE

To prevent errors #hen %ou cop% and paste data? make sure the values %ou referenceUsuch as ac* counts? ta0 codes? and so onUalread% e0ist in %our compan% file' Aere=s ho# to get started #ith entering data via the :dd(.dit Multiple Pist .ntries #indo#? using items as an e0ample: 1' 4n the QuickBooks Ho'e &age, in the !o'&any &anel, click #te's A $ervices@ The Item Pist #indo# opens'

ADDING AND EDITING


F i )%RE 09(

4reate customers !efore %ou create 2o!s? and create parent items !efore creating su!items' That #a%? the compan% name %ou paste in the 4ompan% Bame field "or the parent item name %ou paste in the +8u!item of/ field$ #ill e0ist in %our compan% file' If %ou don=t create the par* ent items first? QuickBooks #ill displa% an error mes* sage #hen %ou tr% to paste the 2o!s or su!items'

2' Right9click the #te' 2ist <in o<, an then choose * JE it Multi&le #te's fro' the shortcut 'enu@ K*lternatively, at the .otto' of the <in o<, click #te'M* JE it Multi&le #te's@L The :dd(.dit Multiple Pist .ntries #indo# opens' The Pist !o0 is set to 8ervice Items or the t%pe of item %ou selected the last time %ou used this #indo#' The ta!le initiall% displa%s the active items for the t%pe selected in the Pist !o0 "5igure I*4$? #hich makes sense !ecause %ou t%picall% #ant to add or edit items that %ou=re currentl% using' To filter the list to sho# specific kinds of items? in the Lie# drop*do#n menu? choose the kind %ou #ant' &' #f you <ant to <ork <ith a ifferent ty&e of ite', in the 2ist ro&9 o<n 'enu, choose !usto'ers, /en ors, $ervice #te's, #nventory 6arts, or >on9 inventory 6arts@ The columns in the ta!le var% depending on the list %ou select and the pref* erences %ou=ve turned on' 5or e0ample? for 8ervice items? the ta!le includes

.(/13ns ?(& Ite3 N*3e+ 1;ite3 (?+ */es 5&i.e+ In.(3e

ADDING AND
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turned on the sales ta0 preference "page &$U8ales Ta0 4ode' If %ou=ve turned on the preference for inventor% "page 2 $ and choose Inventor% ,arts? %ou see a 4<@8 :ccount column? among others' If %ou choose the 4ustomers or Lendors list? the ta!le initiall% displa%s contact info and a fe# other fields' "8ee page 11C to learn ho# to customiKe the columns that appear in the ta!le'$

F i )%RE 094

In the Pist drop*do#n menu? choose the t%pe of item %ou #ant to #ork on' The ta!le displa%s the ac* tive items of the selected t%pe so %ou can add or edit them' To filter the list? in the Lie# drop*do#n menu? choose the kind of item %ou #ant or choose 4ustom 5ilter to define a more targeted filter "page 120$'

4' $<itch to E"cel an co&y the ata you <ant fro' your s&rea sheet@ :s e0plained earlier? the order of the columns in the :dd(.dit Multiple Pist .n* tries ta!le and %our .0cel spreadsheet have to match or %ou=ll see errors #hen %ou paste the data "#hich %ou=ll do in the ne0t step$' To fi0 that? reorder the columns in either .0cel or QuickBooks "page 11C$' Jhen the programs= columns match? in .0cel? select the information %ou #ant to paste into QuickBooks and then press 4trlT4 to cop% it' ' Back in the * JE it Multi&le 2ist Entries <in o<, click the first .lank #te' >a'e cell Kor >a'e cell if youBre &asting custo'er or ven or infoL, an then &ress !trlO/ Kor choose E itM6aste in the 'ain QuickBooks 'enu .arL@ Jhen %ou paste .0cel data into e0isting records in the :dd(.dit Multiple Pist .ntries #indo#? QuickBooks over#rites the e0isting values in the cells' To paste .0cel data into ne# records? !e sure to select the first empt% ro# in the #indo# !efore pasting the data' QuickBooks !egins pasting the copied data into the selected cell and then con* tinues pasting into the cells !elo# and to the right of the selected cell' 4ells that contain data #ith errors? such as invalid values or list entries that don=t e0ist in QuickBooks? appear in red te0t' 8ee page 12I to learn ho# to correct these errors'

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If %ou #ant to paste parent and su!items into the :dd(.dit Multiple Pist .ntries ta!le? paste the top*level items first and then click 8ave 4hanges' Then follo# #ith a separate paste pass for each su!se)uent level of %our Item Pist' "5or customers #ith 2o!s? paste the customers first? and then paste their 2o!s in a second pass'$ That #a%? the parent items %ou need #ill alread% e0ist so the ne# entries #ill paste in #ithout errors'

T#6

$aving !hanges
:fter %ou=ve completed the additions and modifications %ou #ant in the :dd(.dit Multiple Pist .ntries #indo#? click 8ave 4hanges to save %our #ork' QuickBooks saves all the entries that have no errors and tells %ou ho# man% records it saved'

!orrecting Errors
If %ou tr% to save changes and QuickBooks finds an% errors? like a value that doesn=t e0ist in the Terms list or a 2o! that !elongs to a customer that doesn=t e0ist in Quick* Books? it filters the entries in the :dd(.dit Multiple Pist .ntries #indo#=s ta!le to 2ust those #ith errors and displa%s the incorrect values in red te0t' ,oint %our cursor at a cell to see a hint a!out the error' 5or e0ample? if %ou t%ped a letter in a price field? QuickBooks tells %ou that the field contains an invalid character' If the pro!lem is a list entr% that doesn=t e0ist? the +Zlist name[ Bot 5ound/ dialog !o0 opens "#here +Zlist name[/ is a list like Terms$ and tells %ou the value isn=t in the list' In the dialog !o0? click 8et ;p to add the entr% to the list' 5i0 an% other errors and then click 8ave 4hanges again'
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If %ou don=t kno# #hat=s causing the error? select the incorrect value and delete it !% pressing Qelete or Backspace' Then? #hen %ou figure out #hat the value should !e? %ou can edit that record in the :dd(.dit Multiple Pist .ntries #indo# or the corresponding .dit dialog !o0'

Importing 4ustomer? Lendor? and Item Information


If %ou have hundreds of records to stuff into QuickBooks? even cop%ing and past* ing can !e tedious' But if %ou can produce a delimited te0t file or a spreadsheet of customer or vendor info in the program #here %ou currentl% store it "page ICI$? then %ou can match up %our source data #ith QuickBooks= fields and import all %our records in one fell s#oop' Qelimited files and spreadsheets compartmentaliKe data !% separating each piece of info #ith a comma or a ta!? or !% cu!!%holing them into columns and ro#s in a spreadsheet file' These files aren=t necessaril% read% to import into QuickBooks? though' Aeadings in a delimited file or spreadsheet might identif% the field names in the program that originall% held the information? !ut QuickBooks has no #a% of kno#ing the correlation !et#een those fields and its o#n'

IM5ORTING B1t )(nt =(&&<: Q1i.0B((0s %e/2s <(1 i32(&t <(1& Ex.e/ )*t* ?(& CU TOMER+
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dors? and items' There=s a data import #iKard right in the program' Nou can use its pre*formatted .0cel templates to import data from %our o#n .0cel spreadsheet' "If %ou don=t need an% handholding at all? head to page ICI in 4hapter 2I for the full scoop on importing data into QuickBooks'$
T#6

:l#a%s !ack up %our compan% file !efore %ou import data in case %ou run into pro!lems' That #a%? %ou can restore %our pre*import file and tr% again' ,age 02 dishes out the details on creating a !ackup file'

#'&orting <ith the E"cel #'&ort ;i=ar Te'&lates


QuickBooks= .0cel import #iKard is eas% to get to and eas% to use' The pre* formatted spreadsheets that come #ith it contain a small su!set of the fields associated #ith each list %ou can import' 5or e0ample? the customer template includes columns for !asic contact info and an account num!er' If the fields %ou #ant to import are in the #iKard=s .0cel templates? %ou can=t !eat this #iKard for ease of use' "The #iKard=s :dvanced Import !utton helps %ou import info from other .0cel spreadsheets' The ne0t section sho#s %ou ho# to put that !utton to use'$ Aere=s ho# to use the .0cel import #iKard and its !uilt*in spreadsheets: 1' #n QuickBooks, choose FileM%tilities M#'&ortME"cel Files@ The +:dd Nour .0cel Qata to QuickBooks/ #iKard opens' "If %ou see the :dd( .dit Multiple Pist .ntries dialog !o0? click Bo to proceed to the #iKard' If %ou don=t #ant to see this message again? turn on the +Qo not displa%/ check!o0'$ 2' !lick the .utton for the ty&e of ata you <ant to i'&ort: !usto'ers, /en9 ors, or 6ro ucts # $ell@ Nou see a message #arning that %ou can=t undo the import and recommending that %ou !ack up %our compan% file first' If %ou #ant to create a !ackup? click Bo? create the !ackup? and then !egin #ith step 1 again' If %ou=re read% to import data? click Nes to close the message !o0' QuickBooks opens an .0cel template for the t%pe of data %ou=re importing? as sho#n in 5igure I* ' &' !o&y your ata into the te'&late@ <pen the .0cel spreadsheet #hose info %ou #ant to get into QuickBooks? select the data %ou #ant to cop%? and then press 4trlT4' Be0t? s#itch to the .0cel template QuickBooks created and press 4trlTL to paste the data' "If %ou need help? click the template=s 8ho# Qetailed Instructions !utton'$ 4' *fter youBve co&ie all the ata fro' your s&rea sheet into the E"cel te'9 &late an none of the te'&lateBs cells are yello<, save the te'&late@ In .0cel 2010 or 201&? choose 5ileM8ave' In .0cel 200D? choose <fficeM8ave' Then close the spreadsheet %ou copied data from'

F i )%RE 095

The .0cel import templates not onl% get %our data into the right fields? !ut the% also help %ou #ith ever% step' 5or e0ample? the !lue !o0 "identi* fied here as a 4oach tip$ gives %ou advice a!out ho# to cop% data from an .0cel spreadsheet into the template' If a cell turns %ello#? it means there=s a pro!lem #ith the data in it' ,oint %our cursor at the red triangle in the cell=s upper* right corner to see #hat the pro!lem is and ho# to fi0 it'

' #n QuickBooksB E"cel te'&late, click *

My 1ata >o<@

The +:dd Nour .0cel Qata to QuickBooks/ #iKard sho#s ho# much progress it has made importing the data' Jhen it=s done? it places green checkmarks to the left of all three steps and sho#s ho# man% records it imported' Nou can click the !utton that sa%s +Lie# Zt%pe of imported info[/ to see the list %ou imported? or click 4lose and vie# %our lists as %ou usuall% do' 5or e0ample? to see %our 4ustomer Pist? click 4ustomersM4ustomer 4enter'

#'&orting 1ata Fro' 8our 4<n E"cel File


Nou don=t have to use the data import #iKard=s spreadsheets' If %our data is alread% sitting in a spreadsheet? the #iKard=s :dvanced Import !utton helps %ou map %our spreadsheet=s columns to QuickBooks fields and then import %our data' This section sho#s %ou ho# it #orks' Aere=s ho# %ou import data from an e0isting .0cel file: 1' #n QuickBooks, choose FileM%tilitiesM#'&ortME"cel Files@ #n the G* 8our E"cel 1ata to QuickBooksH <i=ar , click the * vance #'&ort .utton@ The +Import a file/ dialog !o0 opens'

IM5ORTING CU TOMER+
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Jhat if %ou don=t have data in an .0cel spreadsheetG There=s no need to set up %our o#n file' The +QuickBooks Import .0cel and 48L toolkit/ "http:((tin%url'com (Dchn k)n$ includes a sample .0cel spreadsheet #ith four #orksheets' .ach #orksheet comes #ith columns that correspond to the fields associated #ith the 4ustomer? Lendor? Item? and :ccount Pists' 5ollo# the instructions on the #e! page to do#nload the toolkit to %our computer' 2' #n the G#'&ort a fileH ialog .o", on the G$et u& #'&ortH ta., click Bro<se an select the E"cel file you <ant to i'&ort@ QuickBooks then populates the +4hoose a sheet in this .0cel #ork!ook/ drop* do#n list #ith the names of the #orksheets in the #ork!ook %ou selected' &' %se the G!hoose a sheet in this E"cel <ork.ookH <orksheet you <ant to i'&ort@ ro&9 o<n list to &ick the

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QuickBooks automaticall% turns on the +This data file has header ro#s/ check* !o0? #hich is perfect #hen the first ro# of the .0cel #ork!ook contains te0t la!els for the columns' 4' #n the G!hoose a 'a&&ingH ro&9 o<n list, choose T* >e<U@

The Mappings dialog !o0 opens' ' #n the GMa&&ing na'eH .o", ty&e a na'e for the set of corres&on ences .et<een fiel s an colu'ns youBre a.out to create@ #n the G#'&ort ty&eH ro&9 o<n list, choose the kin of ata youBre i'&orting@ Nou can choose 4ustomer? Lendor? Item? or :ccount to import data into an% of those lists' I' For each QuickBooks fiel liste in the left colu'n, in the #'&ort 1ata col9 u'n, choose the corres&on ing E"cel hea er or colu'n na'e, as sho<n in Figure 090@ The QuickBooks column lists ever% field associated #ith the list %ou selected in the +Import t%pe/ drop*do#n list' If %ou don=t #ant to import data into a QuickBooks field? leave the corresponding cell in the Import Qata column !lank' D' To tell QuickBooks ho< to han le u&licate recor s an errors, click the G#'9 &ort a fileH ialog .o"Bs 6references ta. an choose the settings you <ant@ <ut of the !o0? QuickBooks selects the +,rompt me and let me decide/ option in the Quplicate Aandling section? #hich puts %ou in charge of deciding #hat to do' If the records in %our compan% file are up to date? %ou can choose the +6eep e0isting data and discard import data/ option to keep the records in QuickBooks #hen the same record e0ists in %our compan% file and the .0cel spreadsheet' <r %ou can tell the program to replace %our e0isting data in QuickBooks #ith or #ithout !lank fields'

IM5ORTING CU TOMER+ @ENDOR+


F i )%RE 090

If %ou kept the +This data file has header ro#s/ check!o0 turned on in step &? then the drop*do#n lists that appear #hen %ou click a cell in the Import Qata column sho# the column headings from %our .0cel spreadsheet' If %our spreadsheet doesn=t contain header ro#s? then the drop*do#n list #ill displa% entries like 4olumn :? 4olumn B? and so on'

8imilarl%? in the .rror Aandling section? QuickBooks selects the option that imports all records !ut leaves fields #ith errors !lank' Nou can also tell the program to skip records #ith errors' E' *fter youBve 'a&&e fiel s, click $ave@ all the colu'ns you <ant to i'&ort to QuickBooks

The Mappings dialog !o0 closes and %ou=re !ack in the +Import a file/ dialog !o0' C' To revie< the ata youBre a.out to i'&ort, click 6revie<@ #n the 6revie< ialog .o", in the G#n ata &revie< sho<H ro&9 o<n list, choose Gonly errorsH to see ro<s of ata that contain errors@ Jhen %ou select an incorrect entr%? the +Qetails for/ ta!le sho#s the values %ou=re tr%ing to import and #hat the pro!lem is so %ou can correct it' Nou can also select options to skip importing ro#s #ith errors or import records and leave error fields !lank'

IM5ORTING 10' C/i.0 OK t( ./(se t%e 5&evie=


Nou can also click Import in the ,revie# dialog !o0' 11' Back in the G#'&ort a fileH ialog .o", click #'&ort@ !lick 8es to co'&lete the i'&ort@ : message !o0 tells %ou ho# man% records #ere imported and the num!er of records #ith errors or #arnings' 4lick <6 to close the message !o0 and the +Import a file/ dialog !o0' That=s it] @o ahead and open the list #ith the data %ou imported "for e0ample? click 4ustomers in the Aome page to open the 4ustomer 4enter$ and admire %our handi#ork'

CU TOMER+
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!H*6TER

D 8etting ;p <ther QuickBooks Pists

pen an% QuickBooks #indo#? dialog !o0? or form? and %ou=re !ound to !ump into at least one list' These drop*do#n lists make it eas% to fill in transactions and forms' 4reating an invoiceG If %ou pick the customer and 2o! from the 4ustomer:Oo! drop*do#n list? QuickBooks fills in the customer=s address? pa%ment terms? and other fields for %ou' 8electing pa%ment terms from the Terms Pist tells the program ho# to calculate an invoice=s due date' If %ou choose an entr% in the ,rice Pevel Pist? QuickBooks calculates the discount or markup %ou e0tend to %our customers for the goods the% !u%' .ven the products and services %ou sell to cus* tomers come from the Item Pist? #hich %ou learned a!out in 4hapter ' In this chapter? %ou=ll discover #hat man% of these lists can do for %ou and #hether %ou should !other setting them up for %our !usiness' Because some lists have their o#n uni)ue fields "such as the ,rice Pevel T%pe for a ,rice Pevel entr%$? %ou=ll also learn #hat the various fields are for and ho# to fill them in' If %ou alread% kno# #hich lists and list entries %ou #ant? %ou can skip to +Managing Pists/ on page 14D to master the techni)ues that #ork for most lists in QuickBooks? such as adding and t#eaking entries? hiding entries? and so on' <nce %ou learn ho# to #ork #ith one QuickBooks list? the doors to almost ever% other list open? too'

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4:T.@<>I\IB@ JITA 4P:88.8

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: fe# listsUsuch as the 4ustomer? Lendor? and .mplo%ee listsU!ehave a little differentl% from the ones descri!ed in this chapter' Aere are the other chapters that provide instructions for #orking #ith QuickBooks lists that aren=t covered here: V The chart of accounts? #hich is a list of %our !ookkeeping accounts? is e0plained in 4hapter &' V The !usto'er:-o. 2ist? #hich includes entries for !oth customers and their 2o!s? is the topic of 4hapter 4' V The /en or 2ist is also descri!ed in 4hapter 4' V The #te' 2ist helps %ou fill in !ills? invoices? and other transaction forms #ith services and products %ou sellW it=s covered in 4hapter ' V :lthough the $ales Ta" !o e 2ist appears on the Pists menu? sales ta0 codes are ine0trica!l% linked to ho# %ou handle sales ta0' The details of setting up this list are descri!ed in 4hapter 21 on page I' V 4hapter 12 sho#s %ou ho# to have QuickBooks memoriKe transactions and store them in the Me'ori=e Transaction 2ist so %ou can reuse them' V If %ou turn on QuickBooks= pa%roll feature "page II1$? the Pists menu includes the 6ayroll #te' 2ist? #hich covers the deposits and deductions on %our pa%roll' ,a%roll items are )uite specialiKed? and %ou use them onl% if %ou use one of Intuit=s pa%roll services'

4ategoriKing #ith 4lasses


4lasses are the onl% solution if %ou #ant to classif% income and e0penses !% catego* ries that span multiple accounts in %our chart of accounts or multiple customers? 2o!s? and vendors' 4lasses help %ou track financial results !% categories such as !usiness unit? location? partner? or consultant' 8uppose %ou have !usiness units that sell to the same customers and rack up the same t%pes of e0penses' B% creating classes that represent !usiness units in Quick* Books= 4lass Pist? %ou can track the profita!ilit% of each unit' 4lasses also come in hand% for tracking the allocation of functional e0penses that nonprofit organiKations have to sho# on financial statements'
T#6

Before %ou decide to use classes? use QuickBooks #ithout them for a fe# #eeks or months' If it turns out that %ou can generate all the reports %ou need #ithout classes? don=t !urden %ourself #ith another field to fill in' But if %ou #ork #ithout classes and then decide to use them after all? %ou can go !ack and edit past transactions to assign classes to them? or 2ust start using classes at the !eginning of a ne# fiscal period' 5or more help deciding #hether to use classes? see the !o0 on page 1& ' If %ou choose to #ork #ith classes? !e sure to follo# these guidelines to get the most out of them: V 6ick one use for classes@ Nou can assign 2ust one class and QuickBooks has onl% one list of classes? so ever% class same t%pe of classification' Ao#ever? if %ou #ant to different purposesU!usiness units and office !ranches? top*level to each transaction? should represent the use classes for t#o sa%U%ou can create

./*sses ?(& e*.% ;1siness 1nit *n) t%en .&e*te s1;./*sses ?(& (??i.e ;&*n.%es
V %se classes consistently@ Make sure to use classes on ever% transaction that relates to %our classification method' 5or e0ample? if %ou classif% income and e0penses !% partner? assign a class to ever% invoice and e0pense that is related to a partner=s #orkW other#ise? %our class*!ased reports #on=t !e accurate' But if e0penses are overhead and don=t relate to the #ork partners do? create a class for overhead and assign that class to all overhead transactions' That #a%? %ou can run a report like ,rofit - Poss ;nclassified to look for transactions #here %ou forgot to assign a class' V !reate a catchall class@ 8et up a class like <ther so that %ou can still classif% transactions even if the% don=t fit into an% of the specific classes %ou=ve defined'
%6 T4 $6EE1

CATEGORIMIN G

Qo Nou Beed 4lassesG


Bot ever% compan% needs classes? so don=t feel that %ou have to use them' Nou can call on several other QuickBooks features to help keep track of %our !usiness' .ach tracking feature has its advantages? so ho# do %ou decide #hich one"s$ to use to evaluate %our performanceG Aere=s a !rief description of each feature and the !est use for it: V *ccounts@ Nou can use accounts to segregate income and e0penses in several #a%s' 5or instance? keep income from services separate from %our product sales !% creating t#o separate income accounts' :ccounts are the fastest #a% to see performance !ecause QuickBooks= !uilt*in ,rofit - Poss reports "page 4 &$ automaticall% displa% results !% account' V !usto'er, Io., an ven or ty&es K&age 72L@ To anal%Ke income !% #holesale? retail? online? and other t%pes of customers? use customer t%pes to classif% %our customers' That #a%? %ou can filter the reports %ou generate to sho# results for a specific kind of customer' Ao#ever? t%pes are more limited in scope than accountsUfor e0ample? customer t%pes appl% onl% to customers' Pike#ise? 2o! t%pes and vendor t%pes help %ou categoriKe onl% !% 2o! and vendor? respectivel%' V !lasses@ 4lasses cut across accounts? income? e0penses? customers? 2o!s? and vendors !ecause %ou assign a class to an individual transaction? such as a check? !ill? or invoice' 8o classes are perfect for categories that span accounts? customers? vendors? and t%pes' 8uppose the partners in %our compan% help customers implement technolog% and tighten their securit%' Nou=ve decided to use separate income accounts to track technolog% sales and securit% sales? and %ou use customer t%pes to track #ork for the government versus the private sector' Nou also #ant to track income and e0penses !% partner? !ut each partner #orks on all t%pes of service for all t%pes of customers' Aappil%? %ou can create classes to track partners= sales and e0penses? regardless of #hich service the% deliver or the t%pe of customer' : ,rofit - Poss report !% class "page 4 E$ #ill then tell %ou ho# each partner is performing'

Turning on !lass Tracking


Nou have to turn on QuickBooks= class*tracking feature !efore %ou can start assign* ing classes' To see #hether classes are turned on? in the main QuickBooks menu !ar? click Pists' If %ou don=t see a 4lass Pist item in the menu? the class* tracking feature is turned off' Aere=s ho# to turn it on:

CHA5teR 8: ETTING U5 OTHER

1#6

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1' !hoose E itM6referencesM*ccounting, an then click the !o'&any 6ref9 erences ta.@ To turn class tracking on? %ou need to !e a QuickBooks administrator? !ecause classes affect ever%one in %our organiKation #ho uses the program' "If %ou aren=t a QuickBooks administrator? %ou=ll have to persuade someone #ho is to turn on classes'$ 2' Turn on the G%se class tracking for transactionsH check.o"@ Jhen %ou do? QuickBooks automaticall% turns on the +,rompt to assign classes/ check!o0' Jith this check!o0 turned on? if %ou tr% to save a transaction #ithout an entr% in the 4lass field? QuickBooks gives %ou a chance to add the class "or save the transaction #ithout one$' Turn this check!o0 off if %ou don=t #ant to !e reminded to assign classes' &' !lick 4: to close the 6references <in o<@ The 4lass Pist entr% no# appears on the Pists menu'

$etting %& !lasses


<nce QuickBooks= class*tracking feature is turned on? here=s ho# %ou create classes: 1' #n the 'ain QuickBooks 'enu .ar, choose 2istsM!lass 2ist@ The 4lass Pist #indo# opens' 2' #n the !lass 2ist <in o<, &ress !trlO> or click !lassM>e<@ The Be# 4lass #indo# opens' &' #n the !lass >a'e .o", ty&e a na'e for the class@ If %ou #ant to create a class that=s a su!class of a parent "to set up su!classes for each region #ithin a !usiness unit? sa%$? turn on the +8u!class of/ check!o0' Then? in the drop*do#n list? choose the parent class %ou #ant' "<!viousl%? %ou can onl% create su!classes once %ou=ve created at least one regular class'$ 4' !lick >e"t to create another class, or click 4: to close the >e< !lass <in o<@ If %ou realiKe %ou need another class #hile %ou=re #orking on a transaction? %ou can create an entr% !% choosing _:dd Be#` in the 4lass drop*do#n list? sho#n in 5igure D*1'

,rice Pevels
Jhether %ou give %our favorite customers price !reaks or increase other customers= charges !ecause the% keep asking for +2ust one more thing?/ %ou can appl% discounts and markups #hen %ou create invoices' But remem!ering #ho gets discounts and ho# !ig is tough #hen %ou have a lot of customers? and it=s !ad form to mark up a favorite customer=s prices !% mistake'

8a% hello to QuickBooks= ,rice Pevel Pist' Jhen %ou define price levels and assign them to customers? QuickBooks takes care of ad2usting the prices on ever% invoice %ou create' Nou can also appl% a price level to specific lines on invoices to mark up or discount individual items' 5or e0ample? suppose %ou create a price level that rep* resents a 1 percent discount' If %ou appl% that price level to a customer? the sales forms %ou create for that customer automaticall% discount prices !% 1 percent' :nd if %ou appl% that price level to a product on a customer=s invoice? the product=s price gets reduced !% 1 percent'

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F i )%RE 391

:fter %ou turn on class tracking? ever% transaction %ou create includes a 4lass field' To assign a class to a transaction? choose one of the classes from the drop*do#n list or choose _:dd Be#`'

!reating a 6rice 2evel


To create a price level? do the follo#ing: 1' Make sure the 6rice 2evel &reference is turne on Kyou have to .e a Quick9 Books a 'inistrator to turn it onL@ If QuickBooks= ,rice Pevel preference is turned off? %ou #on=t see the ,rice Pevel Pist item in the Pists menu' 4hoose .ditM,referencesM8ales 4ustomers? and then click the 4ompan% ,references ta!' 8elect the .na!le ,rice Pevels radio !utton? and then click <6' 2' !hoose 2istsM6rice 2evel 2ist@ The ,rice Pevel Pist #indo# opens' &' #n the 6rice 2evel 2ist <in o<, &ress !trlO> or click 6rice 2evelM>e<@ The Be# ,rice Pevel #indo#? sho#n in 5igure D*2 "foreground$? opens' 4' #n the 6rice 2evel >a'e .o", ty&e a na'e for the level@ If %ou have a fi0ed set of discounts? %ou might name the various levels !% the percentage? like Qiscount 10 and Qiscount 20? for e0ample' :n alternative is to

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name them !% their purpose? like 4ustomer Po%alt% or ;ser @roup Qiscount' That #a%? it=s eas% to change the discount amount #ithout changing the price level=s name' ' #n the GThis &rice level <illH .o", choose GincreaseH or G ecreaseH .ase on <hether you <ant the &rice level to 'ark u& or iscount ite's, an then enter the &ercentage in the Gite' &rices .yH .o"@ In QuickBooks ,ro? the ,rice Pevel T%pe !o0 is automaticall% set to +5i0ed %/ !ecause %ou can create price levels that increase or decrease prices onl% !% a fi0ed percentage? as descri!ed in 5igure D*2' 8ee the !o0 on page 1&C to learn a!out the ,er Item price level availa!le in QuickBooks ,remier and .nterprise'

F i )%RE 392

Think of fi0ed*percentage price levels as standard discounts or markups' 5or e0ample? %ou can create a price level called Most Lalued 4ustomer to discount prices !% 2 percent' Then assign that price level in the customer record "page D2$ for ever% !ig spender %ou #ork #ith' ":lthough price levels= names don=t appear on %our customer invoices? it=s still a good idea to choose names that are meaningful #ithout !eing rude'$

I' For &ercentage &rice levels, in the GRoun u& to nearestH ro&9 o<n list, choose the ty&e of roun ing you <ant to a&&ly@ The +>ound up to nearest/ feature is hand% if the percentages %ou appl% result in fractions of pennies or amounts too small to !other #ith' This setting lets %ou round discounts to pennies? nickels? dimes? )uarters? half*dollars? and even #hole dollars "if %ou reall% hate making change$' The !o0 on page 140 e0plains other? fancier kinds of rounding %ou can appl%' D' !lick 4: to close the >e< 6rice 2evel <in o<@ To create another price level? repeat steps &X D'
>4TE

Nou can=t create price levels on the fl% #hile %ou=re creating an invoice' The easiest solution to a missing price level is to ad2ust the price on the invoice manuall%' Then? after the invoice is done? add the price level to %our ,rice Pevel Pist'

CU TOMER
,><5IP. PI8T8
64;ER %$ER$B !2#>#!

,er*Item ,rice Pevels


In QuickBooks ,remier and .nterprise? %ou can create price lev* els that appl% to individual items in %our Item Pist' To do that? in the Be# ,rice Pevel #indo#=s ,rice Pevel T%pe drop* do#n list? choose ,er Item' The #indo# then displa%s a ta!le containing all the items in %our Item Pist' In the 4ustom ,rice column? t%pe the price for an item at that price level' 5or e0ample? suppose %ou sell calendars to retail stores for Y each' The 8tandard ,rice column #ould sho# '00 for the calendar item' If %ou=re creating a price level for nonprofit organiKations? %ou could t%pe &' 0 in the item=s 4ustom ,rice cell so that a nonprofit #ould pa% onl% Y&' 0 for a calendar' If %ou #ant to appl% percentages to several items in the ta!le displa%ed in the Be# ,rice Pevel #indo#? there=s a shortcut for calculating custom prices: 1' Turn on the check!o0es for the items that use the same percentage increase or decrease' 2' In the +:d2ust price of marked items to !e/ !o0? t%pe the percentage' In the drop*do#n list ne0t to it? choose +lo#er/ or +higher'/ :nd in the +than its/ drop*do#n list? choose an entr% to tell QuickBooks to calculate the price level !ased on the standard price? the cost? or the current custom price' &' 4lick the :d2ust !ut ton ? and Q uickB ook s fills in the 4ustom ,rice cells for the marked items #ith the ne# custom prices' 4' To appl% different percentages to another set of items? clear an% checkmarks and then repeat steps 1X&' If %ou #ork #ith more than one currenc% and turn on the mul* tiple currenc% preference "page I C$? %ou can create price levels for individual items to set their prices in different currencies' Aere=s ho#: In the Be# ,rice Pevel #indo#? choose the currenc% in the 4urrenc% drop*do#n list' Then? in the 4ustom ,rice cell? t%pe the price for the item in the foreign currenc%' :fter that? #hen %ou add the item to an invoice? simpl% choose the cur* renc% price level in the >ate drop*do#n list? and QuickBooks recalculates the price'

*&&lying 6rice 2evels


Nou can appl% price levels in t#o #a%s: V *&&lying a &rice level to a custo'er recor "page D2$ tells QuickBooks to automaticall% ad2ust all the prices on ever% ne# invoice for that customer !% that price level=s percentage "page 22I$' V *&&lying a &rice level to line ite's in an invoice ad2usts the prices of those items #hether or not a customer has a standard price level' To do so? in the 4reate Invoices #indo#? click an item=s >ate cell? and then choose the price level %ou #ant from the drop*do#n list'

4ustomer and Lendor ,rofile Pists


5illing in fields goes much faster #hen %ou can choose info from drop*do#n lists instead of t%ping values' The lists that appear on the 4ustomer - Lendor ,rofile Pists su!menu "to see it? choose PistsM4ustomer - Lendor ,rofile Pists$ pop up regularl%? #hether %ou=re creating an invoice? pa%ing a !ill? or generating a report' 5or e0ample? #hen %ou create an invoice? QuickBooks fills in the ,a%ment Terms field #ith the terms %ou assigned to the customer=s record "page 22 $? !ut %ou can choose different terms from the drop*do#n list to urge %our customer to pa% more )uickl%'

64;ER %$ER$B !2#>#!

>ounding ,rice Pevel Lalues


Jhen %ou use percentages to calculate markups and discounts? the resulting values ma% not !e #hat %ou #ant' The !asic choices in the Be# ,rice Pevel #indo#=s +>ound up to nearest/ drop*do#n list take care of the most common roundingUto the nearest penn%? dime? )uarter? dollar? and so on' But other entries on the list let %ou give QuickBooks more comple0 rounding instructions' The seven entries that include the #ord +minus/ help %ou position prices at magic marketing prices like Y2C'CC or Y1'C ' 5or e0ample? the +'10 minus '01/ entr% ensures that the price al#a%s ends in C' Jith this rounding choice? if the discounted price comes out to YE'D4? QuickBooks rounds up to the near* est 10 cents "YE'E0$ and then su!tracts 1 cent? so the rounded value is YE'DC' If %ou like to undercut %our competitors #ith unusual price points? in the +>ound up to nearest/ drop*do#n menu? choose +user defined'/ QuickBooks then displa%s several !o0es and options for defining %our o#n rounding: V The Gne are stH ro&9 o<n 'e nu@ In th e unla ! e le d drop*do#n menu !elo# +user defined?/ %ou can choose +to nearest?/ +up to nearest?/ or +do#n to nearest'/ +To nearest / rounds in #hichever direction is closest "for e0ample? rounding from 1'D& to 1'D0 or from 1'DD to 1'E0$' V The first V .o"@ T%pe the value %ou #ant to round to? like '01? '2 ? or 1'00' V 6lus or Minus an the secon V .o"@ 8elect the ,lus or Minus radio !utton depending on #hether %ou #ant to add or su!tract mone% after %ou=ve rounded the value' In the Y !o0? t%pe the amount %ou #ant to add or su!tract from the rounded value' "If %ou don=t #ant to use this feature? 2ust leave the second Y !o0 set to 0'$

5or man% of these lists? creating list entries involves nothing more than t%ping the entr%=s name and specif%ing #hether that entr% is a su!entr% of another' This section descri!es ho# to add entries to each list and ho# to put these lists to #ork for %ou'

$ales Re& 2ist


The 8ales >ep Pist is perfect #hen %ou #ant to assign people as points of contact for %our customers' The people %ou add to this list can !e sales reps %ou pa% on commission or emplo%ees #ho are dedicated contacts for customers' 5or e0ample? if %ou assign people as sales reps to %our customers "page 22 $ and add the ap* propriate rep to %our sales transactions? %ou can then generate reports !% sales rep "page I02$' But first %ou have to add the names of %our sales reps and contacts to the 8ales >ep Pist'
>4TE

If %ou=d like an add*on program to help %ou calculate commissions? go to http:((#orkpla ce'intuit' com (appcenter ' In the 8earch :pps Bo# !o0? t%pe sales commission? and then press .nter' To add a name to the 8ales >ep Pist: 1' !hoose 2istsM!usto'er A /en or 6rofile 2istsM$ales Re& 2istM in the $ales Re& 2ist <in o< that o&ens, &ress !trlO> or click $ales Re&M>e<@ The Be# 8ales >ep dialog !o0 opens'

CU TOMER 2' In t%e


#nitials .o", ty&e the &ersonBs initials@

*/es Re2 N*3e )&(2-)(=n /ist+ .%((se * n*3eN in t%e

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The 8ales >ep Bame list displa%s names from the .mplo%ee Pist? the Lendor Pist? and the <ther Bames Pist "page 1I0$' QuickBooks automaticall% fills in the 8ales >ep T%pe field #ith .mplo%ee? Lendor? or <ther Bame? depending on #hich list the name came from or? if %ou 2ust added the name? the t%pe %ou assigned #hen %ou added that person' "The !o0 !elo# gives hints a!out #hen to use the <ther Bames Pist'$ If the name %ou #ant doesn=t e0ist? choose _:dd Be#` at the top of the list' In the 8elect Bame T%pe dialog !o0 that appears? select Lendor? .mplo%ee? or <ther? and then click <6' Then? in the Be# Bame #indo# that opens? fill in the Bame !o0 and an% other fields %ou #ant' &' !lick >e"t to a <in o<@ another sales re&, or click 4: to close the >e< $ales Re&

If %ou select a name and realiKe that it=s misspelled? %ou can edit the name from the Be# 8ales >ep #indo#' 4lick .dit Bame? and QuickBooks opens the .dit .mplo%ee? .dit Lendor? or .dit Bame dialog !o0 so %ou can change the name'
)EM #> THE R4%)H

Jhen to ;se the <ther Bames Pist


If %ou have more than a fe# names on %our <ther Bames Pist? %ou=re pro!a!l% not getting the most out of QuickBooks' In fact? unless %ou=re a sole proprietor or several partners share o#nership of %our compan%? %ou can run QuickBooks #ithout an% names on the <ther Bames Pist' The entries in the <ther Bames Pist sho# up in the drop*do#n menus for a fe# t%pes of transactions? such as checks and credit card charges "page 20&$' But the% don=t appear for other t%pes of transactions like invoices? purchase orders? and sales receipts' 8o #hat are <ther Bames good forG ,eople #ho aren=t custom* ers? vendors? or emplo%eesUfor e0ample? %our name as sole proprietor or the names of compan% partners' That #a%? #hen %ou #rite partners= distri!ution checks to pa% partners? %ou can choose their names from the <ther Bames Pist' To create an entr% on the <ther Bames Pist: 1' 4hoose PistsM<ther Bames Pist' 2' Jhen the <ther Bames Pist #indo# opens? press 4trlTB' &' 5ill in the fields in the Be# Bame dialog !o0? #hich are similar to the ones in the Be# 4ustomer dialog !o0 "page II$' 4' 4lick <6' The <ther Bames Pist can also serve as a holding tank' If %ou aren=t sure #hich list to put someone on? %ou can add that per son to the <ther Bames Pist temporaril%' Then? #hen %ou figure out #hich list she should !e on? %ou can move her' Because QuickBooks needs to close all open #indo#s to move people !et#een lists? it=s !est to save this task for a lull in %our #orkda%' Jhen %ou=re read%? open the <ther Bames Pist #indo# and click :ctivitiesM4hange <ther Bame T%pes' In the 4hange Bame T%pes dialog !o0 that appears? find the person=s name and then click the cell in the appropriate column "4ustomer? Lendor? or .mplo%ee$ to assign that t%pe' 4lick <6 to complete the makeover' Merging entries in the <ther Bames Pist is similar to merging customers "page EE$' 5or e0ample? if %ou realiKe that %ou cre* ated t#o entries for the same person in the <ther Bames Pist? %ou can merge one into the other' The alternative is to change one of the t#o entries to inactive? as descri!ed on page EI? and then use the other entr% for all future transactions'

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!usto'er Ty&e 2ist


4ustomer t%pes help %ou anal%Ke %our income and e0penses !% customer categor% "page E2$' 5or e0ample? a healthcare provider might create @overnment and ,rivate customer t%pes to see ho# much a change in government reim!ursement might hurt revenue' Nou first create customer t%pes in the 4ustomer T%pe Pist and then assign one of those t%pes in each customer=s record' 4reating all %our customer t%pes up front is fastUas long as %ou alread% kno# #hat entries %ou #ant to create: 1' !hoose 2istsM!usto'er A /en or 6rofile 2istsM!usto'er Ty&e 2istM <hen the !usto'er Ty&e 2ist <in o< o&ens, &ress !trlO>@ The Be# 4ustomer T%pe #indo# opens "5igure D*&$'

F i )%RE 39(

The onl% thing %ou have to fill in here is the 4ustomer T%pe field' If this t%pe represents a portion of a larger customer categor%? turn on the +8u!t%pe of/ check!o0 and choose the parent t%pe' 5or e0ample? if %ou have a @overnment customer t%pe? %ou might create su!t%pes like 5ederal? 8tate? 4ount%? and so on'

2' Enter a na'e in the !usto'er Ty&e fiel @ If the ne# t%pe is a su!t%pe of another? turn on the +8u!t%pe of/ check!o0 and then choose the parent t%pe from the drop*do#n list' &' !lick 4: if youBre one, or click >e"t to create another ty&e@ Nou can also create entries as %ou #ork: If %ou=re creating or modif%ing a customer in the Be# 4ustomer or .dit 4ustomer dialog !o0? click the :dditional Info ta!' In the 4ustomer T%pe drop*do#n list? choose _:dd Be#`? #hich opens the Be# 4ustomer T%pe #indo#' Then %ou can create a ne# customer t%pe? as sho#n in 5igure D*&'

/en or Ty&e 2ist


Lendor t%pes #ork similarl% to customer t%pesU%ou can filter reports or su!total e0penses !% different t%pes of vendors' 5or e0ample? if %ou create a 4ontractor vendor t%pe? %ou could generate a report sho#ing ho# much %ou spend on su!* contractors %ou hire' Nou create Lendor T%pe entries the #a% %ou create 4ustomer T%pe entries: 4hoose PistsM4ustomer - Lendor ,rofile PistsMLendor T%pe Pist? and then press 4trlTB to open the Be# Lendor T%pe #indo#'

T#6

To create a ne# vendor t%pe #hile %ou=re creating a vendor? in the Be# Lendor dialog !o0? click the :dditional Info ta!W in the Lendor T%pe drop*do#n list? choose _:dd Be#` to open the Be# Lendor T%pe #indo#'

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CU TOME

-o. Ty&e 2ist


Oo! t%pes also follo# the customer*t%pe lead' Nou can use 2o! t%pes to classif% the pro2ects %ou perform for customers? as descri!ed on page E2' 5or instance? %ou can filter a ,rofit - Poss report to sho# ho# profita!le %our spec*house pro2ects are compared #ith %our remodeling contracts' Nou create Oo! T%pe entries the #a% %ou create 4ustomer T%pe entries: <pen the Oo! T%pe Pist #indo# !% choosing PistsM 4ustomer - Lendor ,rofile PistsMOo! T%pe Pist? and then press 4trlTB'

Ter's 2ist
The Terms Pist includes !oth the pa%ment terms %ou re)uire of %our customers and the pa%ment terms %our vendors ask of %ou' If %ou assign terms in a customer=s record? then QuickBooks automaticall% fills in the Terms !o0 on the invoices %ou create for that customer' Pike#ise? filling in terms in a vendor record means that QuickBooks fills in the Terms !o0 on !ills %ou enter' To add a ne# term? open the Terms Pist #indo# "PistsM4ustomer - Lendor ,rofile PistsMTerms Pist$? and then press 4trlTB' The fields that %ou fill in to create terms "5igure D*4$ are different from those in other 4ustomer - Lendor ,rofile lists' The fol* lo#ing sections e0plain the Be# Terms #indo#=s 8tandard and Qate Qriven options'

F i )%RE 39 4

Because pa%ment terms appl% to !oth vendors and custom* ers? consider using generic names that sa% something a!out the terms themselves' 5or e0ample? the +10% Bet &0/ entr% sho#n here is an enticement for earl% pa%ments !ecause it means that the amount is due &0 da%s from the invoice date? !ut %ou can deduct 10 percent from %our !ill if %ou pa% #ithin da%s'

$ETT#>) %6 TERM$ %$#>) E2*6$E1 T#ME The Be# Terms #indo#=s 8tandard option is ideal #hen the due date is a specific num!er of da%s after the invoice date "or the date %ou receive a !ill from a

vendor$' If %ou send invoices #henever %ou complete a sale? choose the 8tandard CU TOME option'

:BQ L.BQ<> ,><5IP. PI8T8

Aere=s #hat the 8tandard option=s fields do: V >et ue in W ays@ T%pe the ma0imum num!er of da%s after the !ill or invoice date that %ou or a customer can pa%' 5or e0ample? if %ou t%pe &0? customers have up to &0 da%s to pa% an invoice or %ou have up to &0 da%s to pa% a !ill' If %ou charge penalties for late pa%ments? QuickBooks can figure out #hen customer pa%ments are late so %ou can assess finance charges "page &41$' V 1iscount &ercentage is@ If %ou or %our vendor offer a discount for earl% pa%* ments? t%pe the discount percentage in this !o0' V 1iscount if &ai <ithin W ays@ T%pe the num!er of da%s after the !ill or invoice date #ithin #hich %ou or a customer has to pa% to receive the earl% pa%ment discount'

>4TE

Jhen %our terms reduce a customer=s !ill for earl% pa%ments? QuickBooks deducts these discounts in the >eceive ,a%ments #indo# "page &2I$? #here the program can determine #hether the customer paid earl%' If a vendor offers discounts for earl% pa%ments? %ou can take advantage of those in the ,a% Bills #indo# "page 1EE$' $ETT#>) %6 1*TE 1R#/E> TERM$ The Qate Qriven option sets up terms for pa%ments that are due on a specific date? regardless of the date on the invoice' This option is hand% if %ou or %our vendors send invoices on a scheduleUsa%? on the last da% of the month' 5or e0ample? home mortgages often assess a late fee if pa%ments arrive after the 1 th of the month' Aere=s #hat the Be# Terms #indo#=s Qate Qriven options do: V >et ue .efore the W th ay of the 'onth@ T%pe the da% that the pa%ment is due' 5or e0ample? if a pa%ment is due !efore the 1 th of the month? no matter #hat date appears on %our statement? t%pe 1 in this !o0' V 1ue the ne"t 'onth if issue <ithin W ays of ue ate@ Nour customers might get anno%ed if %ou re)uire pa%ment !% the 1 th of the month and send out %our invoices on the 14th' The% #ould have no #a% of pa%ing on timeUunless the% camped out in %our !illing department' Nou can t%pe a num!er of da%s in this !o0 to automaticall% push the due date to the follo#ing month #hen %ou issue invoices too close to the due date' 8uppose pa%ments are due on the 1 th of each month and %ou t%pe in this !o0' In that case? for invoices %ou create !et#een :ugust 10 and :ugust 1 ? QuickBooks automaticall% changes the due date to 8eptem!er 1 ' V 1iscount &ercentage is@ If %ou or %our vendors e0tend a discount for earl% pa%ments? t%pe the discount percentage in this !o0' V 1iscount if &ai .efore the W th ay of the 'onth@ T%pe the da% of the month !efore #hich %ou or a customer has to pa% to receive the earl% pa%ment discount'

!usto'er Message 2ist


Jhen %ou create an invoice? %ou can add a short message to it? such as +If %ou like the service #e deliver? tell %our friends' If %ou don=t like our service? tell us'/ To save time and prevent em!arrassing t%pos? add %our stock messages to the 4ustomer Message Pist "PistsM4ustomer - Lendor ,rofile PistsM4ustomer Message Pist$' In the 4ustomer Message Pist #indo#? press 4trlTB to open the Be# 4ustomer Message dialog !o0' This dialog !o0 has onl% one fieldUMessageU#hich can hold up to 101 characters "including spaces$'
T#6

:BQ L.BQ<> ,><5IP. PI8T8

Qon=t use the 4ustomer Message Pist for notes that change #ith ever% invoice "like one that specifies the date range that an invoice covers$ !ecause %ou=ll fill the list #ith uni)ue messages and #on=t !e a!le to add an% more' If %ou #ant to include uni)ue information? do so in the cover letter "or email$ that accompanies %our invoice'

6ay'ent Metho 2ist


4ategoriKing pa%ments !% the method the customer uses can !e hand%' 5or instance? #hen %ou select BankingMMake Qeposits "page &4C$? %ou can choose to process all the pa%ments %ou=ve received via a specific pa%ment methodUdeposit all the checks and cash %ou received into %our checking account? sa%? !ut deposit the pa%ments %ou receive via credit cards to a dedicated merchant account' Nou categoriKe pa%ments !% using the entries on the ,a%ment Method Pist' Quick* Books starts the list for %ou #ith entries for cash? check? credit cards "such as :merican .0press and Lisa$? and electronic pa%ments' To add another pa%ment methodUfor pa%ments through ,a%,al? for e0ampleUchoose PistsM4ustomer Lendor ,rofile PistsM,a%ment Method Pist? and then press 4trlTB' In the Be# ,a%* ment Method dialog !o0? t%pe a name for the method? and then choose a t%pe' 5or ,a%,al? choose <ther in the ,a%ment T%pe drop*do#n list' <ther pa%ment t%pes include Qe!it 4ard? @ift 4ard? and .*4heck'

$hi& /ia 2ist


Jhen %our invoices include the shipping method that %ou use? %our customers kno# #hether to #atch for the mailman or the ;,8 truck' QuickBooks creates several shipping methods for %ou: QAP? 5ederal .0press? ;,8? and ;8 Mail' If %ou use another method? like a !ike messenger in Be# Nork 4it% or %our o#n deliver% truck? simpl% create additional entries in the 8hip Lia Pist #indo# "PistsM4ustomer - Lendor ,rofile PistsM8hip Lia Pist$ !% pressing 4trlTB' In the 8hipping Method field "the onl% field in the Be# 8hip Method dialog !o0$? t%pe a name for the method and then click <6'
T#6

If %ou use one shipping method most of the time? %ou can have QuickBooks fill in the 8hipping Method field on invoices #ith that entr% automaticall%' 8ee page III to learn a!out the ;sual 8hipping Method preference and the ;sual 5ree on Board location'

5IR.Q :88.T IT.M8

/ehicle 2ist
If %ou #ant to track mileage "page 1D2$ on the vehicles %ou use for %our !usiness? create entries for %our cars and trucks in the Lehicle Pist "PistsM4ustomer - Lendor ,rofile PistsMLehicle Pist$' ,ress 4trlTB and then use the Lehicle !o0 to name the vehicle: 5ord ,refect 1CE2 >ed? for e0ample' The Qescription field holds up to 2 I characters? so %ou can use it to store the LIB? license plate? and even the insurance polic% num!er'
T#6

If %ou #ant to charge %our customers for mileage? see page 1D2'

5i0ed :sset Items


:ssets that %ou can=t convert to cash )uickl%Usuch as !ackhoes? !uildings? and supercomputersUare called fi0ed assets' If %ou track information a!out %our fi0ed assets in another program or have onl% a fe# fi0ed assets? there=s no reason to !other #ith QuickBooks= 5i0ed :sset Item Pist' :s %ou can see in 5igure D* ? QuickBooks can track info such as #hen %ou !ought the item and ho# much %ou paid' But in QuickBooks ,ro? %ou have to calculate depreciation "see the !o0 on page 444$ for each asset at the end of the %ear and create 2ournal entries to ad2ust the values in %our asset accounts'

F i )%RE 395

Jhen %ou !u% a fi0ed asset? %ou can create a 5i0ed :sset item and enter the asset=s name and purchase information? #here %ou keep it? its se* rial num!er? and #hen the #arrant% e0pires' Jhen %ou create a 5i0ed :sset item? QuickBooks doesn=t automaticall% add the purchase price to the asset account %ou choose here' Instead? the account %ou choose in %our purchase transaction "check or credit card charge? for instance$ is #hat adds the purchase price to the 5i0ed :sset account in %our chart of accounts'

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QuickBooks ,remier :ccountant edition and QuickBooks .nterprise edition include the 5i0ed :s* set Manager? #hich figures out the depreciation on %our assets and posts depreciation to an account in %our QuickBooks compan% file' If %ou have an accountant prepare %our depreciation schedule? go #ith the num!er %our accountant gives %ou' The depreciation that QuickBooks calculates ma% !e close to? !ut different from? the num!er %our accountant calculates' Jhen %ou sell an asset? open the .dit Item dialog !o0 "choose PistsM5i0ed :sset Item Pist? and then press 4trlT.$ and turn on the +Item is sold/ check!o0' Jhen %ou do that? the sales fields come to life so %ou can specif% #hen %ou sold the asset? ho# much %ou got for it? and an% costs associated #ith the sale' If %ou decide to track the details a!out %our fi0ed assets outside QuickBooks? %ou still need to include the value of those assets in %our financial reports' 8impl% create 5i0ed :sset accounts for each fi0ed asset "page 2$ to hold those values' Then each %ear? add a 2ournal entr% to record the amount of depreciation for %our fi0ed assets'

M:B:@IB@ PI8T8

Managing Pists
.ver% list in QuickBooks responds to the same set of commands' :s %our !usiness changes? %ou can add ne# entries? edit e0isting ones? hide entries that %ou no longer use? and "in some lists$ merge t#o entries into one' If %ou make a mistake creating an entr%? %ou can delete it' Nou can also print %our QuickBooks lists to produce a price list of the products %ou sell? for e0ample' ;sing the follo#ing techni)ues? %ou=ll !e a!le to do #hat %ou #ant #ith an% list or entr% %ou might need'

!reating Entries
If %ou=re setting up QuickBooks? creating all the entries for a list at the same time is fast and efficient' <pen the Be# dialog !o0 for the t%pe of list entr% %ou #ant "Be# 4ustomer T%pe? for e0ample$? and %ou=ll soon get into a rh%thm creating one entr% after another' Nou can also add ne# list entries in the middle of !ookkeeping tasks #ithout too much of an interruption' "If %ou launch a ne# line of !usiness selling moose repel* lent? for e0ample? %ou can add a Burl% Men customer t%pe in the middle of creating an invoice'$ But don=t rel% on this approach to add ever% entr% to ever% listU%ou=ll spend so much time 2umping from dialog !o0 to dialog !o0 that %ou=ll never get to %our !ookkeeping' .ach list has its o#n collection of fields? !ut the overall process for creating list entries is the same: 1' To o&en the <in o< for the list you <ant to <ork on, on the 'ain QuickBooks 'enu .ar, click 2ists an then select the list you <ant on the su.'enu@ 5or e0ample? to open the 4lass Pist #indo#? choose PistsM4lass Pist'

M:B:@IB@ PI8T8

8everal lists are tucked a#a% one level deeper on the Pists menu' 5or lists that include characteristics of %our customers or vendors? such as Lendor T%pe or Terms? choose PistsM4ustomer - Lendor ,rofile Pists? and then choose the list %ou #ant? as sho#n in 5igure D*I'

F i )%RE 390

To !oost %our productivit%? take note of the ke%!oard shortcuts for lists %ou=re likel% to access most often' 5or e0ample? 4trlT: opens the 4hart of :ccounts #indo#' "<nline :ppendi0 4 lists lots of other hand% ke%!oard shortcuts'$ In addition? #hen %ou see an underlined letter in a menu entr%? %ou can t%pe that letter to launch that feature' 5or e0ample? #hen the Pists menu is open? press 4 to open the 4lass Pist #indo#'

2' To create a ne< entry, &ress !trlO>M right9click the list <in o< an choose >e< on the shortcut 'enu that a&&earsM or, at the .otto' of the <in o<, click the .utton <ith the listBs na'e on it, an then choose >e<@ 5or instance? to create an entr% in the 4lass Pist? make sure that the 4lass Pist #indo# is active and then press 4trlTB' <r? at the !ottom of the #indo#? click 4lassMBe#' .ither #a%? QuickBooks opens the Be# 4lass #indo#' &' *fter youBve co'&lete one entry, si'&ly click >e"t to save the current entry an .egin another@ To save the entry you Iust create an close the ialog .o", click 4:@ To toss an entr% that %ou !otched? click 4ancel to thro# it a#a% and close the dialog !o0'
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;nlike all the other Be# #indo#s for lists? the Be# ,rice Pevel #indo# doesn=t include a Be0t !utton'

E iting Entries
To modif% a list entr%? open the #indo# for that list' Then select the entr% %ou #ant to edit and press 4trlT. or dou!le*click the entr%' "Nou can customiKe the columns that appear in list #indo#s so it=s easier to see values associated #ith list entriesW the !o0 !elo# tells %ou ho#'$ Jhen the .dit dialog !o0 opens? make the changes %ou #ant? and then click <6'
64;ER %$ER$B !2#>#!

M:B:@IB@ PI8T8

4ustomiKing 4olumns in Pist Jindo#s


8ome list entries don=t come #ith man% fields? such as the items in the 8hip Lia Pist? so all %ou need to see in that list #indo# is the names of the shipping methods %ou=ve created' But other lists? such as Terms? store a plethora of information? including discounts and da%s of the month associated #ith the terms' 5ortunatel%? %ou can customiKe the columns that appear in list #indo#s so %ou can see list entries= values #ithout editing the entries' Aere=s ho#: 1' :t the !ottom of the list #indo#? click the !utton #ith the list=s name on it? and then choose 4ustomiKe 4olumns' 2' In the +4ustomiKe 4olumns * Zlist name[/ dialog !o0 that appears? in the :vaila!le 4olumns list? select a field %ou #ant to displa%? and then click :dd' The column moves to the 4hosen 4olumns list' &' >epeat step 2 to add more columns' 4' To remove a column from the #indo#? in the 4hosen 4olumns list? select the field? and then click >emove' ' To move a field to another position? select it in the 4hosen 4olumns list? and then click Move ;p or Move Qo#n until it=s in the position %ou #ant' I' Jhen %ou=re done customiKing? click <6' The fields %ou selected appear in the #indo#? as sho#n in 5igure D*D "!ackground$'

F i )%RE 393

Nou can add? remove? or reorder the fields in the 4ustomiKe 4olumns dialog !o0' The fields are listed from top to !ottom in the 4ho* sen 4olumns list? !ut the% appear from left to right in the list #indo#'

Qeleting entries is onl% for discarding entries that %ou create !% mistake' If %ou=ve alread% used list entries in transactions? hide the entries %ou don=t use an%more so %our historical records are complete' 5or e0ample? %ou #ouldn=t delete the +Bet &0/ pa%ment term 2ust !ecause %ou=re luck% enough to have onl% Bet 1 clients right no#W %ou ma% still e0tend Bet &0 terms to some clients in the future' Aiding list entries that %ou no longer use does t#o things: V :ee&s your recor s intact@ Nour previous transactions still use the entries %ou=ve hidden? so %our historical records don=t change' V 1eclutters your lists@ Jhen %ou create ne# transactions? the hidden entries don=t appear in drop*do#n lists? so %ou can=t choose them !% mistake' The methods for hiding and reactivating list entries are e0actl% the same regardless of #hich list %ou=re #orking on: V To hi e an entry: In the list=s #indo#? right*click the entr% and choose +Make Zlist name[ Inactive/ from the shortcut menu? #here Zlist name[ is the list %ou=re editing? such as 4lass or 8ales >ep' The entr% disappears from the list' V To vie< all the entries in a list: :t the !ottom of the list #indo#? turn on the +Include inactive/ check!o0 so %ou can see !oth active and hidden entries' QuickBooks adds a column #ith an R as its heading and displa%s an R in that column for ever% inactive entr% in the list' "If no entries are inactive? the +Include inactive/ check!o0 is gra%ed out'$ V To reactivate an entry: 5irst? displa% all the entries as descri!ed a!ove? and then click the R ne0t to the entr% %ou #ant to reactivate' If the entr% has su!entries? then in the :ctivate @roup dialog !o0 that appears? click Nes to reactivate the entr% and all its su!entries'

1eleting Entries
Nou can delete a list entr% onl% if nothing in %our QuickBooks compan% file refer* ences it in an% #a%' To delete a list entr%? open the appropriate list #indo#? select the entr% %ou #ant to delete? and then press 4trlTQ or? in the main QuickBooks menu !ar? choose .ditM+Qelete Zlist name['/ :s long as the entr% isn=t used in an% records or transactions? QuickBooks asks %ou to confirm that %ou #ant to delete the entr%W click Nes'

Fin ing 2ist Entries in Transactions


If QuickBooks #on=t let %ou delete a list entr% !ecause a transaction is still using it? don=t #orr%Uit=s eas% to find transactions that use a specific list entr%' Aere=s ho#: 1' 4&en the list that contains the entry you <ant to fin an , in the list <in o<, right9click the entry an choose Fin on the shortcut 'enu@ The 5ind dialog !o0 opens alread% set up to search for transactions that use the list entr% %ou selected'

MANAGIN 2' !lick Fin @ Hi)in, Ent&ies G The ta!le at the !ottom of the 5ind dialog !o0 displa%s all the transactions
that use that entr%' &' To 'o ify the list entry a transaction uses, select the transaction in the ta.le, an then click )o To@ QuickBooks opens the #indo# or dialog !o0 that corresponds to the t%pe of transaction' If %ou=re tr%ing to eliminate references to a list entr% so %ou can delete it? choose a different list entr% and then save the transaction'

M:B:@IB@ PI8T8

$orting 2ists
QuickBooks sorts lists alpha!eticall% !% name? #hich is usuall% #hat %ou #ant' The onl% reason to sort a list another #a% is if %ou=re having trou!le finding the entr% %ou #ant to edit' 5or e0ample? if %ou #ant to find e)uipment %ou !ought #ithin the last fe# %ears? %ou could sort the 5i0ed :sset Pist !% purchase date to find the machines that %ou=re still depreciating' 5igure D*E sho#s %ou ho# to change the sort order'
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8orting in a list #indo# doesn=t change the order in #hich entries appear in drop*do#n lists? unless %ou manuall% sort a list !% dragging the diamond icons to the left of list items= names'

F i )%RE 397

To sort a list !% a column? click the column=s heading? such as ,urchase Qate' The first time %ou click the heading? QuickBooks sorts the list in ascending order and the small !lack triangle in the heading "circled$ points up? as sho#n here' To toggle !et#een ascending and descending order? click the heading again? and the triangle points do#n'

>4TE

:s mentioned a!ove? QuickBooks initiall% sorts lists !% their Bame columns' If %ou sort a list !% a different column? %ou see a gra% diamond to the left of the column heading that it used to sort the list initiall%' 5or e0ample? if %ou sort the 5i0ed :sset Item Pist !% ,urchase Qate instead? a gra% diamond appears to the left of the Bame heading? as sho#n in 5igure D*E' To return the list to the order that QuickBooks originall% used? click this diamond'

MANAGIN G

5&intin, Cists
:fter %ou spend all that time !uilding lists in QuickBooks? %ou=ll !e happ% to kno# that it=s much easier to get information a!out those lists out of the program than it #as to put it in' 5or instance? suppose %ou #ant to print a price list of all %our inven* tor% items' QuickBooks makes short #ork of printing lists or turning them into files that %ou can use in other programs' B2*$T#>) 4%T * Q%#!: 2#$T Aere=s the fastest #a% to produce a list? al!eit one that doesn=t give %ou an% control over the report=s appearance: 1' *t the .otto' of a list <in o<, click the .utton la.ele <ith the listBs na'ePlike 6rice 2evel, for e"a'&lePan then, in the ro&9 o<n 'enu, choose 6rint 2ist Kor &ress !trlO6L@ QuickBooks might displa% a message !o0 telling %ou to tr% list reports if %ou #ant to customiKe or format %our reportsW that method is covered in the ne0t section' 5or no#? in the message !o0? click <6' The ,rint Pists dialog !o0 opens'
>4TE

To print 4ustomer? Lendor? or .mplo%ee lists? in the 4ustomer 4enter? Lendor 4enter? or .mplo%ee 4enter tool!ar? click ,rint and then choose 4ustomer - Oo! Pist? Lendor Pist? or .mplo%ee Pist' 2' To &rint the list, select the 6rinter o&tion an then choose a &rinter in the ro&9 o<n list@ To out&ut the list to a file, choose the File o&tion an then select the for'at you <ant@ If %ou go #ith the ,rinter option? %ou can specif% print settings? as %ou can in man% other programs' 4hoose landscape or portrait orientation? the pages to print? and the num!er of copies' If %ou choose 5ile? %ou can create :84II te0t files? comma*delimited files? or ta!*delimited files "page IEC$' &' !lick 6rint@ QuickBooks prints the report or creates the t%pe of file %ou selected' !%$T4M#E#>) * 6R#>TE1 2#$T If the ,rint Pist feature descri!ed a!ove scatters fields over the page or produces a comma*delimited file that doesn=t pla% #ell #ith %our email program? %ou=ll !e happ% to kno# that QuickBooks might offer a report closer to #hat %ou have in mind' 5or e0ample? an <ther Bames ,hone Pist is onl% t#o clicks a#a%' To access the reports that come #ith QuickBooks? in the program=s main menu !ar? go to >eportsMPist and then choose the report %ou #ant' If these reports fall short? %ou can modif% them to change the fields and records the% include? or format them in a variet% of #a%s'

4hapter 2& e0plains ho# to customiKe reports? !ut if %ou click 4ustomiKe >eport in a report #indo#=s tool!ar? %ou can make changes to the list report !efore %ou print it or create a file containing the list=s info' In the Modif% >eport #indo# that appears? %ou can do the follo#ing: V !hoose fiel s@ <n the Qispla% ta!? the 4olumns !o0 includes ever% field for that t%pe of list entr%' Jhen %ou click a field=s name? QuickBooks puts a checkmark ne0t to it and adds that field to the report' V $ort recor s@ <n the Qispla% ta!? choose the field %ou #ant to sort !% from the +8ort !%/ drop*do#n menu? and tell QuickBooks #hether %ou #ant the report sorted in ascending or descending order' Filter the re&ort@ Nou can use the settings on the 5ilters ta! to limit the records in a report' 5or e0ample? %ou can produce a list report for active list entries' Nou can also filter !% values in other fields'

M:B:@IB@ PI8T8

V $et u& the re&ortBs hea er an footer@ <n the Aeader(5ooter ta!? %ou can choose the information that %ou #ant in the report=s title and in the footer at the !ottom of each page' The title identifies the data in the report? and the footer can include the date the report #as prepared so %ou kno# #hether it=s current' V For'at te"t an nu'.ers@ <n the 5onts - Bum!ers ta!? %ou can choose the font that QuickBooks uses for different parts of the report' 5or instance? la!els should !e larger than the data in the report' Nou can also choose ho# to displa% negative num!ers: The In Bright >ed check!o0 controls #hether red ink trul% applies to %our financial reports' If %ou like? turn on the Qivide B% 1?000 check!o0 to make QuickBooks remove three Keroes from the end of each num!er !efore displa%ing it in the report so it=s easier to differentiate thousands from millions'

,:>T

Bookkeeping
4A:,T.> E:

Tracking Time and Mileage


4A:,T.> C:

,a%ing for .0penses


4A:,T.> 10:

Invoicing
4A:,T.> 11:

,roducing 8tatements
4A:,T.> 12:

Transaction Timesavers
4A:,T.> 1&:

Managing :ccounts >eceiva!le


4A:,T.> 14:

Bank :ccounts and 4redit 4ards


4A:,T.> 1 :

Qoing ,a%roll

4A:,T.> 1I:

Making Oournal .ntries


4A:,T.> 1D:

,erforming Near*.nd Tasks

CHA5TER

E Tracking Time and Mileage

hen customers pa% for %our services? the%=re reall% !u%ing %our kno#l* edge of ho# to get the 2o! done the !est and fastest possi!le #a%' That=s #h% an ine0perienced carpenter charges Y1 an hour? #hereas a master #ho hammers faster and straighter than a nail gun charges YE0 an hour' Jhen it comes right do#n to it? time is mone%? so %ou #ant to keep track of !oth #ith e)ual accurac%' ,roduct*!ased companies track time? too' 5or e0ample? companies that #ant to increase productivit% often start !% tracking the time that emplo%ees #ork and #hat the% #ork on' There are hordes of off*the*shelf and homegro#n time*tracking programs out there? !ut if %our time*tracking needs are fairl% simple? %ou can record time directl% in QuickBooks or use its companion Timer program? #hich %ou can provide to each person #hose #ork hours %ou #ant to track' The advantage of tracking time in QuickBooks is that the hours %ou record are read% to attach to an invoice "see page 24 $ or use in pa%roll "see page 40E$' In this chapter? %ou=ll learn ho# to record time in QuickBooks itself' :ppendi0 Q "availa!le from this !ook=s Missing 4Q page at ###' missingmanuals'com(cds$ e0plains the ins and outs of the standalone Timer program'
>4TE

If %our time*tracking needs outpace QuickBooks= time*tracking features? Intuit=s marketplace "http:(( mar ketplace'intuit'com$ lists a!out 0 time*tracking solutions that integrate #ith QuickBooks' 4lick 8earch B% Business Beed? and then click Time Tracking' Nou can then turn on the check!o0es that appear to specif% features %ou=re looking for? such as online access or the a!ilit% to track time against pro2ects' Intuit=s :pp 4enter "htt p:(( appcenter'intuit'com$ also lists a fe# time*tracking solutions' T%pe +time tracking/ in the 8earch !o0 and then

168

click the 8earch !utton "it looks like a magnif%ing glass$' To search further afield? t%pe ke%#ords like +QuickBooks time tracking/ into %our favorite Internet search engine'

16F

QUICKBOOKs 2014: tHe MIssInG

8.TTIB@ ;, TIM. T>:46IB@

Mileage is another commodit% that man% !usinesses trackUor should' Jhether %our CHA5TER !usiness hinges on driving or merel% re)uires the occasional 2aunt? the I>8 lets %ou deduct vehicle mileage? as long as %ou can document the miles %ou deduct' :nd %ou might charge customers for the miles driven in con2unction #ith the #ork %ou do for them' :s %ou=ll learn in this chapter? QuickBooks can help %ou track the mileage of compan% vehicles? #hich %ou can use for ta0 deductions or to charge customers'

8etting ;p Time Tracking


5or man% !usinesses? appro0imations of time #orked are fine' 5or e0ample? emplo%* ees #ho #ork on onl% one or t#o tasks each da% can revie# the past #eek and log their hours in a #eekl% timesheet' But for people #ith deliciousl% high hourl% rates? %ou #ant to capture ever% minute spent on an activit%' QuickBooks can help %ou track time #hether %ou take a conscientious approach or a more cavalier one' Nou can choose from t#o different #a%s of recording time #ith QuickBooks: V Enter ti'e ata in QuickBooks@ Nou can enter time for individual activities or fill in a #eekl% timesheet' In the Time(.nter 8ingle :ctivit% dialog !o0? %ou can t%pe in the num!er of hours for a single activit%' The dialog !o0 also includes a stop#atch? so %ou can have it track the time %ou=re #orking on a task' V %se the QuickBooks Ti'er sto&<atch@ This program? #hich comes on the QuickBooks 4Q? lets %ou time activities as %ou #ork so %ou can track %our time to the secondUas long as %ou remem!er to start and stop the Timer at the right moments' "If %ou forget to turn the Timer on or off? %ou can edit time entries to correct them'$ The !est thing a!out Timer is that %ou can use it to record time even #hen QuickBooks isn=t running' Moreover? %ou can give a cop% of Timer to all %our emplo%ees and su!contractors so the% can send %ou time data to import into QuickBooks'
>4TE

If %ou do#nload QuickBooks and #ant the Timer program? %ou=ll have to order a 4Q from Intuit !% calling "EEE$ D2C*1CCI and pa% Y20 plus shipping? handling? and sales ta0' Bo matter #hich techni)ue %ou use to capture time? the setup is the same: Nou tell QuickBooks that %ou #ant to track time and then set up the people #ho need to track their time "emplo%ees and outside contractors alike$' Nou use the customers and items %ou=ve set up in QuickBooks to identif% the !illa!le time %ou #ork' If %ou #ant to track non!illa!le time? %ou need a fe# more entries in QuickBooks? #hich %ou=ll learn a!out in the follo#ing sections'

Turning on Ti'e Tracking


If %ou told QuickBooks that %ou #ant to track time #hen %ou created %our compan% file "page 1D$? the time*tracking preferences and features should !e read% to go' To

169

see =%et%e& ti3e t&*.0in, is t1&ne) (n+ .%((se E)it>5&e?e&en.es>Ti3e A Ex2enses+ *n) t%en ./i.0 t%e C(32*n<

ETTING U5

turn time tracking on or off$' If the Nes radio !utton !elo# +Qo %ou track timeG/ "sho#n in 5igure E*1$ isn=t selected? click it' "If %our compan% file is in multi*user mode? QuickBooks tells %ou that %ou have to s#itch to single*user mode Zpage 4CD[ first'$

F i )%RE 791

If most of %our #ork time is !illa!le? keep the +Mark all time entries as !illa!le/ check!o0 turned on' That #a%? #henever %ou start a ne# time record? the Billa!le check!o0 #ill !e turned on' <n the other hand? turn off the +Mark all time entries as !illa!le/ check!o0 if %ou charge !% the hour for onl% a couple of pro2ects'

QuickBooks automaticall% sets the 5irst Qa% of Jork Jeek !o0 to Monda% to match the Monda%*through*5rida% #ork#eek of so man% !usinesses' 5or round* the*clock services? self*emplo%ed people? and #orkaholics? choose #hichever da% of the #eek feels most like the !eginning of the #eek' 5or e0ample? man% companies on a seven* da% #ork#eek start the #eek on 8unda%' If %ou use QuickBooks to generate hours for pa%roll? %ou should set the program=s #ork#eek to end on the same da% as %our pa% periods' 5or instance? if %our pa%roll cut*off dates are on 5rida%s? in the 5irst Qa% of Jork Jeek drop*do#n list? choose 8aturda% so that QuickBooks= #ork#eek ends on 5rida%? 2ust like %our pa%roll'
T#6

To learn a!out time*related invoicing options? see page 24 '

CHA5teR F: TRACKING TIME AND

169

8.TTIB@ ;, TIM. T>:46IB@

$etting %& the 6eo&le ;ho Track Ti'e


Nou can=t enter or import people=s time into QuickBooks unless their names appear in one of %our name lists "the .mplo%ee Pist? Lendor Pist? or <ther Bames Pist$' If someone #hose time %ou #ant to track isn=t on one of those lists %et? here=s ho# %ou decide #hich list to use: V E'&loyee 2ist@ ;se this list for %our emplo%ees #hether %ou pa% them !% using QuickBooks= pa%roll features or in some other #a%' V /en or 2ist@ :dd su!contractors and outside consultants "people or companies that send %ou !ills for time$ to this list? #hether or not their time is !illa!le to customers' "Their time is undou!tedl% !illa!le to %ou'$

V 4ther >a'es 2ist@ B% process of elimination? an%one #ho isn=t a vendor or an emplo%ee !elongs on this list? such as o#ners #ho take a dra# or partners #ho take distri!utions instead of a pa%check "page 42C$' ,eople #ho enter time in QuickBooks "#ith a #eekl% timesheet or in the Time( .nter 8ingle :ctivit% dialog !o0? not #ith the standalone Timer program$ need the program=s permission to do so' Jhen %ou set up QuickBooks users? %ou can set their permissions so the% can enter time "page D& $'

$etting %& #te's an !usto'ers for Ti'e Tracking


The good ne#s is that %ou don=t have to do an% additional item and customer setup to !e a!le to !ill time to %our customers' The 8ervice items "page 104$ and customer records "page II$ %ou create for invoicing also #ork for tracking !illa!le time' Jhen %ou enter time? %ou choose the 8ervice item %ou=re #orking on' Then QuickBooks totals %our hours and figures out ho# much to charge the customer !ased on the num!er of hours %ou #orked and ho# much %ou charge per hour for that service' The onl% reason %ou=d need additional items is if %ou track all the hours that people #ork? !oth !illa!le and non!illa!le' 5or e0ample? if %ou=re tr%ing to reduce overhead costs? %ou might add items to track the time spent on administrative #ork or provid* ing customer service? as sho#n in 5igure E*2' ",age 101 e0plains ho# to add items'$ The level of detail %ou track in QuickBooks for non!illa!le activities is up to %ou' Aere=s ho# %ou fill in item fields #hen %ou create items to track time that %ou don=t !ill to a customer: V Ty&e@ ;se the 8ervice item t%pe "page 104$ !ecause that=s the onl% one Quick* Books= time*tracking feature recogniKes' V Rate@ In the Be# Item or .dit Item dialog !o0? the >ate field is #here %ou enter ho# much %ou charge for the service' Because no mone% changes hands for non!illa!le time? leave this field set to 0' V *ccount@ Nou can=t create an item #ithout assigning it to an account? so cre* ate an e0pense account "page 1$ and call it something like Bon!illa!le Jork or <verhead Time' If %ou num!er accounts? assign the account a num!er that places it near the end of %our .0pense t%pe accounts "like E2&0$'

170

QUICKBOOKs 2014: tHe MIssInG

ENTERING TIME IN
F i )%RE 792

If %ou #ant to capture non* !illa!le activities in one !ig pot? create a single 8ervice item called <verhead' 5or greater detail a!out non!illa!le time? %ou can cre* ate a top*level <verhead item and then create su!items for each t%pe of non!illa!le #ork %ou #ant to track' Be sure to also create one catchall item? such as <ther? to capture the time that doesn=t fit in an% other non!illa!le categor%'

This service is use in asse'.lies or is &erfor'e .y a su.contractor or &art9 ner@ If a su!contractor performs non!illa!le #ork for %ou? turn on this check!o0' That #a%? %ou can assign the su!contractor=s costs to an e0pense account and use time tracking to make sure the su!contractor=s !ills are correct' 5or non!ill* a!le items performed !% o#ners and partners? leave this check!o0 turned off'

.ntering Time in QuickBooks


QuickBooks lets %ou enter and vie# time for a single activit% or for #hole #eeks' If %ou record time after the fact? a #eekl% timesheet is the fastest #a% to enter time "and %ou can enter #eekl% timesheets for more than one person at once$' If %ou alread% have one timesheet filled out? %ou can cop% it to speed up %our data entr%? as the !o0 on page 1I e0plains' To time #ork as %ou perform it? the Time(.nter 8ingle :ctivit% dialog !o0 "e0plained starting on page 1I $ is the #a% to go'

ENTERING TIME IN
)EM #> THE R4%)H

Time !% the Batch


Q u i ck B oo k s = Jee kl% Tim e sh eet #indo# l et s %o u create timesheets for several people at the same time' The onl% limitation is that the entries in the #eekl% timesheet have to !e identical for all the people %ou selectU that is? the same customer and 2o!? 8ervice item? notes? class? and hours each da%' :nd if the people are paid through pa%roll? the ,a%roll item has to !e the same? too' Aere=s ho# to create a !atch timesheet: 1' In the Aome page=s .mplo%ees panel? click .nter Time and then? on the drop*do#n menu? choose ;se Jeekl% Timesheet' 2' In the Jeekl% Timesheet #indo#=s Bame drop*do#n list? choose +Multiple names ",a%roll$/ if the people are paid through %our pa%roll service? or choose +Multiple names "Bon*,a%roll$/ if the%=re paid another #a%? such as vendors? contractors? or o#ners #ho take an o#ners= dra#' &' In the +8elect .mplo%ee? Lendor or <ther Bame/ dialog !o0? keep the Manual option selected and then click the name of each person %ou #ant to add to the !atch timesheet to add a checkmark to the left of their names' 4' 4lick <6' ' 5ill out the #eekl% timesheet as %ou #ould for a single person and then click 8ave - 4lose' QuickBooks creates a timesheet for each person %ou selected #ith the information %ou entered in the timesheet' 5or e0* ample? if %ou recorded 40 hours of #ork in the timesheet? each person no# has a timesheet sho#ing 40 hours'

Filling out ;eekly Ti'esheets


QuickBooks= #eekl% timesheet is the fastest #a% to enter time for several activities or #ork that spans several da%s' Aere=s #hat %ou do: 1' #n the Ho'e &ageBs E'&loyees &anel, click Enter Ti'e an ro&9 o<n 'enu, choose %se ;eekly Ti'esheet@ QuickBooks opens the Jeekl% Timesheet #indo#'
>4TE

then, on the

.ven though %ou can track time for people other than emplo%ees "like contractors$? %ou access QuickBooks= time tracking feature from the .mplo%ees menu or the .mplo%ees panel on the Aome page' 2' #n the >a'e ro&9 o<n list, choose the &erson <ho &erfor'e the <ork@

Because time tracking is rarel% limited to onl% the people #ith permission to use QuickBooks? %ou can enter time for %ourself or an%one else' :fter %ou choose a name? the program displa%s a timesheet for the current #eek and sho#s an% time alread% entered for that #eek? as sho#n in 5igure E*&' "8ee the !o0 a!ove to learn ho# to create a !atch of timesheets in one fell s#oop'$

F i )%RE 79(

The #eekl% timesheet doesn=t provide much room to displa% customer names? 2o! names? or more than a fe# letters of the 8ervice item for the task performed' To see the full contents of a cell in a pop*up tooltip like the one sho#n here? position %our cursor over the cell' Nou can also drag a corner of the #indo# to resiKe it or click the Ma0imiKe !utton near the top right of the #indo# to enlarge it'

&' To enter ti'e for a ifferent <eek, in the <in o<Bs tool.ar, click 6revious or >e"t until the <eek you <ant a&&ears@ To choose a #eek that=s )uite a #a%s in the past? click the calendar icon to the right of the timesheet=s date range' In the 8et Qate dialog !o0 that appears? click the arro#s to the left or right of the month heading to move to a past or future month' 4lick an% date during the #eek to choose that #ork#eek' 5or e0ample? choosing I in the March 2014 calendar s#itches the timesheet to the #eek !eginning March &? 2014'
T#6

If an earlier timesheet has entries #ith customers and items that appl% to the current timesheet? %ou can cop% the earlier timesheet as descri!ed in the !o0 on page 1I ' 4' #n the first .lank !usto'er:-o. cell Kthe first colu'n of the ti'esheet ta.leL, choose the custo'er or Io. associate <ith the <ork that <as &erfor'e , if a&&lica.le@ If the #ork is !illa!le? choose the customer or 2o! that pa%s for it' If the time isn=t !illa!le? %ou can leave this cell !lank or choose the customer %ou created to track non!illa!le time' Qepending on #hether %ou prefer to keep %our hands on the ke%!oard or the mouse? %ou can then move to the 8ervice Item cell !% clicking it or !% pressing Ta!'

ENTERING TIME IN 6' In t%e e&vi.e Ite3 .e//+ .%((se t%e ite3 t%*t &e2&esents t%e =(&0 t%e 2e&s(n
If %ou use a QuickBooks= pa%roll service and pa% emplo%ees !% the hours the% #ork? the ,a%roll Item column appears to the right of the 8ervice Item column? so %ou can also fill in the pa%roll*related item that applies to the time #orked' 5or e0ample? for !illa!le #ork? choose a ,a%roll item such as 8alar% or .mplo%ee Income' If the hours are for vacation or sick time? choose the ,a%roll item %ou=ve created for that kind of time' I' #n the >otes cell, ty&e any a itional infor'ation a.out the <ork@

If %our customers re)uire details a!out the #ork performed? store that info in the Botes cell? #hich then appears on the invoices %ou create "see page 24E$'
T#6

To see the entire contents of Botes cells? make sure the +Jrap te0t in Botes field/ check!o0 at the !ottom of the Jeekl% Timesheet #indo# is turned on' That #a%? each ro# in the Timesheet ta!le takes up more space? !ut %ou #on=t have to position %our cursor over ever% Botes cell to see #hat it contains' D' #f you use classes to track inco'e an colu'n, choose one for the <ork@ e"&enses K&age 1(4L, in the !lass

This column appears onl% if %ou=ve turned QuickBooks= class preference on' If %ou track income !% partner? for e0ample? choose the class for the partner #ho handles that customer' If %ou use classes to track office !ranches? choose the class for the !ranch #here the person #orks' E' To enter ti'e for a ay uring the <eek, click the cell for that ay or &ress Ta. until you reach the right cell@ Nou can enter time in several #a%s' If %ou kno# the num!er of hours? t%pe them as a decimal or as hours and minutes' 5or e0ample? for seven and a half hours? t%pe either D' or D:&0' QuickBooks displa%s the hours in the timesheet !ased on the time format preference %ou set "page I $' If %ou kno# the starting and ending time? QuickBooks can calculate the hours for %ou' 5or e0ample? if %ou t%pe C* in a cell? the program transforms it into eight hours #hen %ou move to a different cell "!% pressing Ta! or clicking another cell$' :s %ou enter time for each da% of the #eek? the Total column on the right side of the ta!le sho#s the total hours for each activit%' The num!ers in the Totals ro# !elo# the ta!le sho# the total hours for each da% and for the entire #eek'
>4TE

.ach ro# in a #eekl% timesheet represents one 8ervice item? one customer or 2o!? and one note' 8o if %ou perform the same t%pe of #ork for t#o different customers? %ou have to enter that time in t#o separate ro#s' Nou also have to create another ro# if %ou #ant to record a different note for the same customer and the same 8ervice item' Nou might do this if? for e0ample? %ou did #e!*development #ork for a customer? !ut #ant to differentiate the #ork %ou did on its online store #e! page and on its marketing #e! pages'

ENTERING 9' I? t%e ti3e is ?(& (ve&%e*) (& <(1 *&ent ;i//in, t%e .1st(3e& ?(& t%e =(&0 TIME IN
off@ !onversely, if the check'ark is turne off an the ti'e is .illa.le, click the check.o" to turn it on@ If %ou=ve turned on the +Mark all time entries as !illa!le/ preference "page ID2$? QuickBooks puts a checkmark in the +Billa!leG/ column automaticall%' If this preference is turned off? the +Billa!leG/ check!o0 is !lank unless %ou click it'
T#6

:dding !illa!le time to customer invoices is eas%W it=s descri!ed in detail on page 24 '

10' To save the ti'esheet, click $ave A !lose or $ave A >e<@ If %ou=re entering time for a num!er of people? click 8ave - Be# to save the current timesheet and open a ne# !lank one' 4licking 8ave - 4lose saves the timesheet and closes the Jeekl% Timesheet #indo#'
%6 T4 $6EE1

4op%ing Timesheets
,eople often #ork on the same tasks from #eek to #eek' QuickBooks can reduce tedium and mistakesUand save %ou timeU!% cop%ing entries from a person=s previous timesheet' Aere=s ho#: 1' In the Jeekl% Timesheet #indo#=s Bame field? choose the person=s name' 2' Q i s p l a % t h e # e e k l % t i m e s h e et % o u # a n t t o c o p % information into !% clicking ,revious or Be0t? or clicking the calendar icon' &' :t the !ottom of the dialog !o0? click the 4op% Past 8heet !utton' If the timesheet that=s currentl% displa%ed is e m pt %? Q u i ck B o o k s f ills in a ll th e ro# s #ith th e entries from the person=s last timesheet? including the customer? 8ervice item? class? notes? and hours' If the current timesheet alread% has values? QuickBooks asks #hether %ou #ant to replace the entries' 4lick Nes to replace the entries #ith the ones from the last timesheet %ou opened' 4lick Bo to append the entries from the last timesheet as additional ro#s in this #eek=s timesheet' To keep the currentl% displa%ed timesheet 2ust the #a% it is? click 4ancel'

Entering Ti'e for 4ne *ctivity


.ntering time in a #eekl% timesheet is )uick? !ut the #idth of the columns makes it hard to see #hich customer and 8ervice item %ou=re tracking' If %ou prefer read* a!ilit% to speed? the Time(.nter 8ingle :ctivit% dialog !o0 is a !etter choice' This !o0 also includes a stop#atch %ou can use to time %our #ork'
T#6

<ne dra#!ack to the Time(.nter 8ingle :ctivit% dialog !o0 is that %ou have to fill in ever% field for ever% activit%' If %ou gro# tired of this form of time entr%? then in the #indo#=s tool!ar? click Timesheet to s#itch to the Jeekl% Timesheet #indo#' The #eekl% timesheet that appears is for the person %ou selected in the Time( .nter 8ingle :ctivit% dialog !o0 and the #eek that includes the selected da%'

ENTERIN G Q;I46B<<68

He&es %(= t( ente& ti3e ?(& (ne *.tivit<


1' #n the Ho'e &ageBs E'&loyees &anel, click Enter Ti'e an ro&9 o<n 'enu, choose Ti'eJEnter $ingle *ctivity@ The Time(.nter 8ingle :ctivit% dialog !o0 opens to toda%=s date' 2' #f you <ant to recor ti'e for a ifferent ay, then in the 1ate fiel , click the calen ar icon an choose the ate <hen the <ork took &lace@ Jhen %ou first open the Time(.nter 8ingle :ctivit% dialog !o0? QuickBooks selects all the te0t in the Qate !o0' Nou can replace that date !% simpl% t%ping a ne# one? like &(0D(14' &' #n the >a'e ro&9 o<n listP<hich inclu es ven ors, e'&loyees, an na'es fro' the 4ther >a'es 2istPselect the &erson <ho &erfor'e the <ork@ .mplo%ees and other names are near the end of the list'
>4TE

then, on the

In the Time(.nter 8ingle :ctivit% dialog !o0? the ,a%roll Item field appears initiall%' If %ou select an emplo%ee #ho=s paid !ased on her time "page 40E$? then select the ,a%roll item to #hich the time applies so that the time data generates the values on the person=s pa%check' "If %ou choose the name of a person #ho isn=t paid !ased on her time? the ,a%roll Item field disappears'$ 4' #n the !usto'er:-o. ro&9 o<n list, choose a custo'er or Io.@

If someone performs #ork for a real customer or 2o!? choose that customer or 2o! #hether or not %ou !ill the time' To track overhead time? choose the customer %ou created for non!illa!le #ork "page 1I0$' ' #f the ti'e is .illa.le an the GBilla.leDH check.o" in the u&&er9right corner of the <in o< is turne off, click it to turn it on@ For non.illa.le ti'e, 'ake sure the GBilla.leDH check.o" is turne off@ If %ou=ve turned on the +Mark all time entries as !illa!le/ preference "page ID2$? QuickBooks puts a checkmark in the +Billa!leG/ check!o0 automaticall%' If that preference is turned off? the +Billa!leG/ check!o0 is !lank unless %ou click it' I' #n the $ervice #te' <ork &erfor'e @ ro&9 o<n list, choose the ite' that re&resents the

4hoose the appropriate item? #hether it=s one %ou use to invoice customers or a non!illa!le item %ou created to track overhead activities' Jhen %ou=re done? press Ta! to move to the Quration !o0' D' #n the 1uration .o", enter the hours <orke @ If %ou press Ta! to move to the Quration !o0? QuickBooks automaticall% selects the contents of the !o0? so %ou can simpl% t%pe the hours #orked' If %ou click the Quration !o0 instead? drag to select its contents'

Ente& %(1&s *s * )e.i3*/ (& *s %(1&s *n) 3in1tes+ s1.% *s

%ou kno# the starting and ending times? t%pe the range to have QuickBooks calculate the hours' 5or e0ample? if %ou t%pe 11* ? the program converts it to I:00 #hen %ou ta! or click a#a% from the Quration !o0' If %ou #ork in QuickBooks most of the time? %ou can also use the Time(.nter 8ingle :ctivit% dialog !o0 to time %our #ork? as sho#n in 5igure E*4'

Q;I46B<<68

ENTERIN G

F i )%RE 794

To time %our current activit%? the Qate field has to !e set to toda%? since %ou can=t run a stop#atch for #ork performed on a different da%' To start tim* ing? click the 8tart !utton? #hich is gra%ed out here' Nou=ll see the seconds that are passing to the right of the Quration !o0 "#here it sa%s + / here$ to sho# that QuickBooks is timing %our #ork' To pause the stop#atch? click ,auseW click 8tart to start timing again' Jhen %ou finish the task? click 8top' :s long as the stop#atch isn=t timing? %ou can edit the time !% t%ping the time %ou #ant'

>4TE

If %ou click ,revious at the top of the Time(.nter 8ingle :ctivit% dialog !o0 to displa% another single activit% for toda% and then click 8tart? the stop#atch feature starts adding additional time to #hat %ou=ve alread% recorded' E' #f you track classes, in the !lass fiel , choose the a&&ro&riate one@ KThis fiel a&&ears only if classes are turne on@L To a notes a.out the activity, ty&e te"t in the >otes .o"@ These notes appear in the Botes column of the Jeekl% Timesheet #indo# and? for !illa!le #ork? appear on invoices %ou generate from time #orked' C' To save the transaction, click $ave A >e< or $ave A !lose@ Jhen %ou click 8ave - Be#? the saved activit% represents time for onl% one da%' To record time for another da%=s #ork even if it=s for the same #orker? customer? and 8ervice item? %ou have to create a ne# activit%'

RUNNING

>.,<>T8

>unning Time >eports


4ustomers don=t like !eing charged for too man% hours? and #orkers are )uick to complain if the%=re paid for too fe#' 8o !efore %ou use time records either for !illing customers or feeding %our pa%roll records? it=s a good idea to generate reports to make sure %our time data is correct' ",age 40E e0plains ho# to set up emplo%ees in QuickBooks so their reported time links to %our QuickBooks pa%roll service'$ To generate a time report in QuickBooks? choose >eportsMOo!s? Time - Mileage? and then select the report %ou #ant' Aere are the ones %ou can choose from and #hat the%=re useful for: V Ti'e .y -o. $u''ary@ If %ou !ill !% the 2o!? this hand% report sho#s hours !% customer or 2o!? summariKed !% 8ervice items? #hich helps %ou revie# the total hours #orked on a 2o! during a given period' Because of its high*level vie#? this report is perfect for spotting time charged to inappropriate 8ervice items or hours that e0ceed 2o! limits' <verl% high or lo# hoursUor 8ervice items that don=t !elong on a 2o!Uare red flags for data*entr% errors' If hours seem too high or lo#? %ou can drill do#n #ith the Time !% Oo! Qetail report "descri!ed ne0t$ to investigate' V Ti'e .y -o. 1etail@ ;se this report to verif% that hours #ere correctl% set as !ill* a!le or non!illa!le' It=s grouped first !% customer(2o! and then !% 8ervice item? !ut each time entr% sho#s the date the hours #ere #orked? #ho performed the #ork? and #hether the #ork is !illa!le "the !illing status is listed as ;n!illed for !illa!le hours not %et invoiced? Billed for invoiced !illa!le hours? or Bot Billa!le$'

V Ti'e .y >a'e@ This report sho#s the hours people have #orked on each cus* tomer or 2o!? as sho#n in 5igure E* ' QuickBooks sets the report=s date range to This 5iscal Near*to*date? !ut if %ou #ant to check timesheets for accurac%? %ou can change it to Past Jeek? This Jeek? or #hatever time period %ou #ant' If a person reports too man% or too fe# hours for a period? use the Jeekl% Timesheet #indo# "page 1I2$ to look for signs of inaccurate or missing time reports' V Ti'e .y #te'@ This report groups hours !% 8ervice item and then !% customer or 2o!' Nou can use this report to anal%Ke ho# %our !illa!le and non!illa!le time is spent? either to cut unproductive activities or to determine staffing needs'

Tracking Mileage
If %ou charge customers for mileage? keeping track of the !illa!le miles %ou drive helps %ou get all the reim!ursements %ou=re due' But all !usiness*related mileage is ta0*deducti!le? so tracking non!illa!le !usiness mileage is important? too' 4ustom* ers and the I>8 alike #ant records of the miles %ou drive? and QuickBooks can help %ou produce that documentation'

T>:46IB@ MIP.:@.

F i )%RE 795

The Time !% Bame report summariKes the hours someone #orks for each customer or 2o!' To see the dates and times of the #ork? put %our cursor over an hourl% total' Jhen the magnif%ing glass icon appears "not sho#n here$? dou!le*click the time to open a +Time !% Bame Qetail/ report'

>4TE

QuickBooks= mileage*tracking feature is intended for tracking the miles %ou drive using compan% vehicles "and? if %ou run %our o#n compan%? the !usiness miles %ou drive using %our o#n car$? not other vehicle e0penses? such as fuel or tolls' Pike#ise? %ou don=t use QuickBooks to record miles driven !% emplo%ees? vendors? or su!contractors? #hich instead go straight to an e0pense account' 5or e0ample? if a vendor !ills %ou for mileage? #hen %ou enter the !ill in QuickBooks "page 1DI$? %ou assign that charge to an e0pense account? such as Travel* Mileage' <r #hen %ou #rite a check to reim!urse an emplo%ee for mileage driven? %ou assign that reim!ursement to the e0pense account for mileage'

ing a /ehicle

To track mileage for a compan% vehicle? %ou first have to add the vehicle to Quick* Books= Lehicle Pist' Aere=s ho#: 1' 4&en the /ehicle 2ist <in o< .y choosing 2istsM!usto'er A /en or 6rofile 2istsM/ehicle 2ist@ 2' To a a ne< vehicle, &ress !trlO> or click /ehicleM>e<@

The Be# Lehicle #indo# "5igure E*I$ opens' &' #n the /ehicle fiel , ty&e a na'e for the vehicle@ To easil% identif% %our compan% cars and trucks? include the t%pe of vehicle and a #a% to differentiate it from others' 5or instance? if %our compan%=s cars

TRACKIN G

*&e *// =%ite Bee2s+ 1se t%e /i.ense 2/*te n13;e& *s t%e n*3e &*t%e& t%*n t%e 3*0e *n) .(/(&'
F i )%RE 790

QuickBooks doesn=t #ant to kno# much a!out compan% vehicles' :ll %ou have to do is give the vehicle a name' Nou can add an% details %ou #ant in the Qescription !o0' :fter %ou click <6? the vehicle takes its place in the Lehicle Pist "sho#n in the !ackground here$'

4' #n the 1escri&tion .o", ty&e a itional info such as the year, 'ake, 'o el, license &late nu'.er, or /ehicle # entification >u'.er K/#>L@ To change this information later? in the Lehicle Pist #indo#? dou!le*click the vehicle=s name? and then? in the .dit Lehicle dialog !o0? edit the name or de* scription' ' !lick 4:@ That=s it' The name and description appear in the Lehicle Pist #indo#'

$etting the Mileage Rate


5or ta0 purposes? %ou can deduct mileage e0penses !ased on a standard rate or !% tracking the actual costs of operating and maintaining %our vehicles' ;sing a standard mileage rate is convenientUsimpl% multipl% the miles %ou drove !% the rate to calculate %our vehicle deduction' The !o0 on page 1D2 e0plains ho# %ou charge customers for mileage if %our mileage charge differs from the I>8 standard rate' "Nou don=t have to set a mileage rate to record the miles %ou drive? !ut %ou=ll need a rate in place !efore %ou run %our ta0 reports'$
T#6

If %ou o#n an e0pensive car #ith e0pensive maintenance needs? actual costs might provide a larger deduction than the I>8=s standard rate' "Nou can deduct either the standard*rate amount or %our actual costs? !ut not !oth'$ But to deduct #hat %ou spend on gas? tires? repairs? insurance? and so on? %ou have to keep track of these e0penses' :s usual? the ta0 rules for deducting operating and maintenance costs are? #ell? ta0ing' 8o !efore %ou choose this approach? ask %our accountant or the I>8 if %ou can deduct actual costs and #hether it=s the !est approach'

Q1i.0B((0s st(&es 31/ti2/e 3i/e*,e &*tes */(n, =it% t%ei& e??e.tive


standard mileage rates usuall% change at the !eginning of each calendar %ear' Aere=s ho# to set a mileage rate: 1' !hoose !o'&anyMEnter /ehicle Mileage@ The .nter Lehicle Mileage #indo# opens' 2' #n the <in o<Bs tool.ar, click Mileage Rates@ QuickBooks opens the Mileage >ates #indo# sho#n in 5igure E*D'

TRACKIN
MIP.:@.

F i )%RE 793

QuickBooks displa%s the standard mileage rates #ith the most recent one at the top and older rates !elo# it'

&' To a a ne< rate, click the first .lank Effective 1ate cell at the .otto' of the list, an then choose the ate that the ne< 'ileage rate .eco'es ef9 fective, such as 1J1J201(@ Nou can either t%pe the date or click the calendar icon' 4' #n the Rate cell, ty&e the rate in ollars, such as @505 for 50@5 cents@ The mileage rate is I' cents per mile !eginning Oanuar% 1? 201&? as documented on the I>8 #e!site? ###'irs'gov' If %ou=re reading this after 201&? !e sure to check that site to see if this rate has changed' ' !lick !lose <hen youBre one@ Jhen it=s time to prepare %our ta0 return? %ou can run the Mileage !% Lehicle 8ummar% report to see the miles driven for each compan% vehicle and the result* ing mileage deduction' To calculate %our deduction? QuickBooks multiplies the recorded miles !% the mileage rate that #as in effect #hen the% #ere driven'

CHA5teR F: TRACKING TIME AND

181

TRACKIN G
FREQ%E>T28 *$:E1 Q%E$T#4>

Mileage >ates and Invoice Items


Jhat if the I>8=s rate is different from the rate I charge custom* ers for mileageG The rates %ou enter in the Mileage >ates #indo# "page 1D0$ are the standard rates set !% the I>8 for ta0 purposes' The I>8 doesn=t care one #hit #hat %ou charge %our customers for miles? so %ou can charge them #hatever %ou #ant' 5or the reim!ursa!le miles that %ou drive? %ou need to create a 8ervice or <ther 4harge item in %our Item Pist' "In the .nter Lehicle Mileage #indo#? the Item drop*do#n list includes onl% these t#o t%pes of items'$ Jhen %ou create the item? %ou can assign it the rate that %ou charge customers per mile or leave the rate at Kero if %ou charge varia!le mileage rates' 5or an <ther 4harge item? the +:mount or %/ !o0 is the place to enter the mileage rate? as sho#n in 5igure E*E' "5or a 8ervice t%pe item? use the >ate !o0 instead'$ In the :ccount !o0? choose the income or e0pense account %ou use for reim!ursa!le mile* age? #hether it=s specific to mileage or a catchall reim!ursa!le cost account'

F i )%RE 797

Jhen %ou create an item for mileage? %ou can enter #hatever rate per mile %ou #ant' Jhen %ou add the mileage to an invoice? QuickBooks multiplies the num!er of !illa!le miles driven !% the rate %ou set for that mileage item'

Recor ing Mileage 1riven


<nce %ou=ve added a vehicle to the Lehicle Pist? %ou=re read% to record mileage' Aere=s ho# %ou fill in the .nter Lehicle Mileage #indo# to record !illa!le and non* !illa!le miles %ou=ve driven: 1' 4&en the Enter /ehicle Mileage <in o< K!o'&anyMEnter /ehicle MileageL an then, in the /ehicle .o", choose the vehicle that you rove@ If %ou forgot to add the vehicle to QuickBooks= Lehicle Pist? %ou can create it no# !% choosing _:dd Be#` from the drop*do#n menu'

If %ou=re recording mileage for one da% of onsite #ork? choose the same da% in !oth !o0es' <n the other hand? if %ou used a compan% car to drive to another cit% for several da%s? the Trip 8tart Qate is the da% %ou headed out of to#n and the Trip .nd Qate is the da% %ou returned' &' #n the 4 o'eter $tart an 4 o'eter En .o"es, ty&e <hat the vehicleBs 'ileage <as .efore you .egan riving an <hat it <as <hen you returne , as sho<n in Figure 79+@ 4r Iust ty&e ho< far you rove into the Total Miles .o"@ If %ou fill in the <dometer !o0es? QuickBooks automaticall% calculates the miles %ou drove and plops that num!er in the Total Miles !o0'

F i )%RE 79+

If %ou usuall% forget to check %our starting mile* age? %ou can ignore the <dometer 8tart and <dom* eter .nd !o0es entirel%' Instead? in the Total Miles !o0? t%pe the mileage %ou drove? such as & E for a & E*mile trip for %our customer' Nou can t%pe the mileage #ith or #ithout commas "1? 00 or 1 00$'

>4TE

The dra#!ack to filling in the .nter Lehicle Mileage dialog !o0=s Total Miles field is that %our mileage record doesn=t include the odometer readings that the I>8 #ants to see' But if ever% mile %ou drive is for !usiness? %ou can prove %our deduction !% sho#ing the I>8 an odometer reading at the !eginning of the %ear and one at the end of the %ear' 4' #f your 'ileage is .illa.le to a custo'er or Io., turn on the Billa.le check9 .o"@ Then, in the !usto'er:-o. .o", choose the custo'er or Io. to <hich you <ant to assign the 'ileage, an in the #te' ro&9 o<n list, choose the ite' you create for 'ileage K&age 132L@ If the mileage isn=t !illa!le to a customer? keep the Billa!le check!o0 turned off and leave the 4ustomer:Oo! and Item !o0es !lank'

GENERATIN
MIP.:@. >.,<>T8 ' #f you track classes, then in the !lass .o", choose the a&&ro&riate one@ 5or e0ample? if %ou use classes to track !ranch performance? choose the class for the !ranch the vehicle !elongs to' Ao#ever? if %ou track partner income #ith classes and the mileage is non!illa!le? %ou don=t need to assign a class "or %ou can choose a class %ou set up for overhead$' I' To further ocu'ent the reason for the 'ileage, ty&e etails in the >otes .o"@ Then, to save the 'ileage an close the ialog .o", click $ave A !lose@ If %ou #ant to enter additional mileage for other customers and 2o!s? click 8ave - Be# instead'

@enerating Mileage >eports


Mileage reports come in hand% #hen %ou prepare %our ta0es or if %our customers )uestion their mileage charges' These reports are simple? mainl% !ecause %ou don=t track that much mileage information in QuickBooks' Nou can generate mileage reports !% choosing >eportsMOo!s? Time - Mileage? and then selecting a report' <r? if %ou have the .nter Lehicle Mileage #indo# open? in the #indo#=s tool!ar? click the do#n arro# to the right of the Mileage >eports !utton and select a report' Aere are the reports %ou can choose and #hat the%=re useful for: V Mileage .y /ehicle $u''ary@ 5or %our ta0 documentation? this report sho#s the total miles %ou drove each vehicle and the corresponding mileage e0pense "#hich QuickBooks calculates using the standard I>8 mileage rate in effect at the time$' The date range is set initiall% to This Ta0 Near' If %ou #ait until after Oanuar% 1 to gather %our ta0 documentation? then in the Qates !o0? choose Past Ta0 Near instead' V Mileage .y /ehicle 1etail@ This report sho#s each trip that contri!uted to a vehicle=s mileage' 5or each one? the report includes the trip=s end date? miles driven? mileage rate? and mileage e0pense' If %ou have )uestions a!out %our deductions? dou!le*click an entr% to open the .nter Lehicle Mileage #indo# for that transaction' V Mileage .y -o. $u''ary@ If %ou charge customers for mileage? run this re* port to see !oth total miles driven and the !illa!le mileage !% customer and 2o!' QuickBooks uses the rate %ou set in the 8ervice or <ther 4harge item to calculate the !illa!le amount' V Mileage .y -o. 1etail@ If a customer has a )uestion a!out mileage %ou charged? this report is the )uickest #a% to find the charges in )uestion' The report groups mileage !% customer or 2o! !ut lists each trip in its o#n line' The report sho#s each trip=s end date? miles driven? !illing status? mileage rate? and !illa!le amount? so %ou can ans#er almost an% mileage*related )uestion a customer might have'

CHA5TER

C ,a%ing for .0penses

lthough most small !usiness o#ners sift through the dail% mail looking for envelopes containing checks? the% usuall% find more containing !ills' <ne frustrating aspect of running a !usiness is that %ou often have to pa% for the items %ou sell !efore %ou can invoice %our customers for the goods' If %ou #ant %our financial records to !e right? %ou have to tell QuickBooks a!out the e0penses %ou=ve incurred' :nd? if %ou #ant %our vendors to leave %ou alone? %ou have to pa% the !ills the% send' ,a%ing for e0penses can take several forms? !ut QuickBooks is up to the challenge' This chapter e0plains %our choices for pa%ing !ills "no# or later$ and descri!es ho# to enter !ills and record %our !ill pa%ments' If %ou pa% right a#a%? %ou=ll learn ho# to #rite checks? use a de!it or credit card? and pa% #ith cash in QuickBooks? among other options' If %ou enter !ills in QuickBooks for pa%ment later? %ou=ll learn ho# to handle the recurring ones? such as rent? as #ell as reim!ursa!le e0penses and inven* tor%' QuickBooks is happ% to help %ou through ever% step of the process: entering !ills %ou receive if %ou #ant to pa% later? setting up !ill pa%ments? and even printing checks %ou can mail to vendors'

Jhen to ,a% .0penses


Jhen it comes to handling e0penses? %ou can pa% no# or pa% laterW QuickBooks has features for !oth options' "Nou can choose to not pa% !ills? !ut QuickBooks can=t help %ou #ith collection agencies or represent %our compan% in !ankruptc% court'$ Aere are the pros and cons of each approach:

186

.BT.>IB@ BIPP8

V 6ay no<@ If !ills arrive a!out as often as meteor sho#ers? go ahead and pa% each one immediatel% so %ou=re sure the%=re paid on time' In QuickBooks? pa%ing right a#a% means #riting a check? entering a de!it card transaction? entering a credit card charge? making an online pa%ment? or using mone% from pett% cashUall of #hich are descri!ed in this chapter' Jhen %ou pa% immediatel%? %ou don=t have to enter a !ill in QuickBooksW %ou can simpl% record the e0pense pa%ment transaction' V 6ay later@ If !ills arrive as steadil% as orders at the local coffee shop? %ou=ll pro!a!l% #ant to set aside time to pa% them all at once #hen it #on=t interfere #ith delivering services or selling products' Jhat=s more? most companies don=t pa% !ills until 2ust !efore the%=re dueUunless there=s a good reason to "like an earl% pa%ment discount$' 8etting up vendor !ills for later pa%ment is kno#n as using :ccounts ,a%a!le !ecause %ou store the unpaid e0penses in an :ccounts ,a%a!le account' In QuickBooks? entering !ills for later pa%ment delivers all the advantages of convenience and good cash management' Nou can tell the program #hen %ou #ant to pa% !illsUfor instance? to take advantage of an earl% pa%ment discount or the grace period that a vendor allo#s' Then %ou can go a!out %our !usiness #ithout distraction? kno#ing that QuickBooks #ill let %ou kno# #hen !ills are on deck for pa%ment'
T#6

<nce %ou decide #hether %ou=re going to pa% !ills no# or later? use that method consistentl%' <ther#ise? %ou could pa% for something t#ice !% entering a !ill in QuickBooks and then? a fe# da%s later? #riting a paper check for the same e0pense' To prevent duplicate pa%ments? al#a%s enter !ills %ou receive in the mail "or email$ as !ills in QuickBooks and pa% them !% using the ,a% Bills feature "page 1E $' The .nter Bills #indo# includes a list of recent transactions? sho#n in 5igure C*1? #hich %ou can use to look for pa%ments %ou=ve alread% made'

>4TE

If %ou pa% for something #hen %ou=re out of the office !% charging e0penses to a credit card or #riting checks !% hand? %ou simpl% enter those transactions in QuickBooks #ithout entering a corresponding !ill' "8ee the section +,a%ing ;sing <ther ,a%ment Methods/ on page 20& for info on recording pa%ments made #ith de!it cards? ,a%,al? and so on'$

.ntering Bills
:t first glance? entering !ills in QuickBooks and then pa%ing them later might seem like more #ork than 2ust #riting checks' But as %ou=ll learn in this chapter? there are several advantages to entering !ills in QuickBooks? and the program makes it incredi!l% eas% to pa% them' To get started? open the .nter Bills #indo# using an% of the follo#ing methods: V <n the Aome page? click .nter Bills in the Lendors panel'

187

QUICKBOOKs 2014: tHe MIssInG

BIPP8

F i )%RE +91

The Terms field "circled$ sho#s the pa%ment terms from the vendor=s record "page DC$' If %ou haven=t assigned pa%ment terms to a vendor? %ou can do so right in the .nter Bills #indo# !% simpl% clicking the do#n arro# in the Terms field and choosing from the drop*do#n list that appears' Jhen %ou save the !ill? QuickBooks asks if %ou #ant the ne# terms to appear the ne0t time' The program is asking if %ou #ant to save the terms to the vendor=s recordW click Nes'

V 4hoose LendorsM.nter Bills' V In the Lendor 4enter #indo#=s icon !ar? click Be# TransactionsM.nter Bills'
T#6

Man% of %our !ills are due at the same time ever% month? and some are even the same amount ever% month? such as %our office rent' Bills like these are perfect candidates for QuickBooks= memoriKed transaction feature? #hich lets the program memoriKe !ills and reuse them' Jith a memoriKed transaction? %ou can tell QuickBooks to remind %ou #hen a !ill is due or even record it automaticall% #ithout an% action on %our part' Nou can even create a group of !ills so that %ou can process all the !ills due on the same da% of the month #ith 2ust a click or t#o' 8ee page &0& for the full scoop on these hand% timesavers' The fields in the .nter Bills #indo# are similar to the ones on invoices %ou create' In fact? if %our vendors use QuickBooks? the !ills %ou receive are 2ust another compan%=s QuickBooks invoices "see 4hapter 10$ or statements "see 4hapter 11$' ,urchasing and pa%ing for inventor% items is mostl% the same as pa%ing for other e0penses? !ut the process is a tad more complicated than for the other things %ou sell' 8ee page 2C in 4hapter 20 to learn ho# to record inventor% purchases' Aere=s ho# to enter the rest of %our !ills in QuickBooks= .nter Bills #indo#:

CHA5teR 9: 5A$ING !OR

188

ENTERIN G

1' In t%e @en)(& )&(2-)(=n /ist+ .%((se t%e ven)(& =%(


:!ove the Bill area? QuickBooks automaticall% chooses the Bill option so %ou can record a vendor !ill' "Nou=ll learn a!out recording credits from vendors on page 20D'$ The program also turns on the Bill >eceived check!o0' Turn this check!o0 off onl% if %ou receive a shipment of inventor% #ithout a !illW %ou=ll learn ho# to deal #ith such shipments on page &I' If %ou set up an% pre*fill accounts in the vendor=s record "page E0$? QuickBooks automaticall% adds them to the ta!le on the .0penses ta! near the !ottom of the .nter Bills #indo#' 2' #f you have o&en &urchase or ers <ith the ven or you selecte , the 4&en 64s E"ist 'essage .o" a&&ears@ #f the .ill corres&on s to one or 'ore of those 64s, in the 'essage .o", click 8es@ ,age && e0plains ho# to record !ills that correspond to purchase orders %ou=ve created' &' #n the 1ate .o", ty&e or select the ate you receive the .ill@ If %ou set up pa%ment terms in the vendor=s record "page DC$? QuickBooks figures out #hen the !ill is due and fills in the Bill Que field? as sho#n in 5igure C*1' 5or e0ample? if the !ill date is &(4(2014 and the vendor=s pa%ment terms are Bet &0? the !ill is due &0 da%s after the !ill dateU4(&(2014' If QuickBooks fills in a date that doesn=t match the due date on the !ill %ou re* ceived? then in the Bill Que field? enter the date printed on the vendor=s !illU it=s the one to go !%'
T#6

The right side of the .nter Bills #indo# summariKes the vendor=s info and %our recent transactions #ith that vendor' 5or e0ample? the 8ummar% section sho#s %our !alance "the total amount %ou o#e the vendor$ and open purchase orders #ith that vendor' If %ou see an% info %ou #ant to change? like the terms or address? click the .dit !utton "its icon looks like a pencil$ to open the vendor=s record in the .dit Lendor dialog !o0' The >ecent Transactions section lists !ills? !ill pa%ments? credits? and other transactions? #hich is a great #a% to catch that %ou have a credit availa!le or have alread% paid the !ill %ou=re a!out to enter' To open one of these recent transactions in its corresponding #indo#? click a link? like the +Bill * ,aid/ link la!eled in 5igure C*1' 4' #n the Ref@ >o@ .o", ty&e the ven orBs invoice nu'.er, the state'ent ate, or another i entifying feature of the .ill youBre &aying@ The >ef' Bo' !o0 accepts an% alphanumeric character? not 2ust num!ers? so %ou can t%pe in things like +1242?/ +Invoice 1242?/ or +8tatement &(&1(2014'/ If %ou #ant to include additional notes a!out the !ill? t%pe them in the Memo !o0' ' #n the *'ount 1ue .o", ty&e the total fro' the .ill@ The onl% time %ou=d t%pe a different amount is #hen %ou take a discount that the vendor forgot to appl% or deduct a portion of the !ill !ecause the goods #ere defective'

18F

QUICKBOOKs 2014: tHe MIssInG

In t%e /(=e& %*/? (? t%e Ente& Bi//s =in)(=+ Q1i.0B((0s

ENTERIN
BIPP8

.0penses ta!? #hich is #here %ou enter information a!out e0penses such as utilit% !ills? office suppl% !ills? and attorne%=s fees' If %ou assign onl% one pre*fill account "page E0$ to this vendor? QuickBooks automaticall% fills in the first cell in the ta!le=s :mount column #ith the :mount Que value' The !o0 on page 1E1 tells %ou #hat to do #hen %ou receive a !ill from a vendor #ho uses a different

>4TE

currenc%' I' #n the first cell of the E"&enses ta.Bs *ccount colu'n, choose the e"&ense account fro' your chart of accounts that corres&on s to the first e"&ense on the .ill@ Jhen %ou click a cell in the :ccount column? a do#n arro# appears' 4licking the arro# displa%s a drop*do#n list of ever% account in %our chart of accounts? !ut QuickBooks automaticall% displa%s the e0pense account section of the list' To choose a different e0pense accountUthe account for %our legal fees? sa%Uscroll in the drop*do#n list and click the one %ou #ant' D' #f the .ill covers several ty&es of e"&enses Ksuch as airfare an your travel agentBs feesL, in the first *'ount cell, ty&e the a'ount that .elongs to the e"&ense account in that ro<@ If %ou assign more than one pre*fill account to a vendor? QuickBooks su!tracts the amount %ou t%ped in the first ro# from the total amount due and puts the remaining amount in the second ro#' Bottom line: Nou have to t%pe the amounts in each ro#=s :mount cell'
T#6

Nou can increase or decrease the #idth of drop*do#n lists "to see the full names of the accounts in %our chart of accounts? for e0ample$' Jhen the drop*do#n list is open? position %our cursor over the list=s lo#er*right corner' Jhen the cursor changes to a t#o*headed arro#? drag to ad2ust the list=s #idth and height' In addition? %ou can change the #idth of the columns on the .0penses and Items ta!s: ,osition %our cursor over the vertical line !et#een t#o column headings? and then drag left or right to shrink or #iden the column on the left' E' #f an e"&ense relates to a Io., in the !usto'er:-o. colu'n, choose the custo'er or Io.@ If %ou fill in the 4ustomer:Oo! cell? QuickBooks puts a checkmark in the +Bill* a!leG/ column' If %ou don=t #ant to charge the customer for the e0pense? click the checkmark to remove it'
T#6

If %ou=re recording reim!ursa!le e0penses? #hich #ill eventuall% appear on a customer=s invoice "page 24 $? !e sure to t%pe a meaningful description in each Memo cell in the ta!le' QuickBooks uses the te0t in this cell as the description of the e0pense on %our invoice' If there=s no Memo te0t? %our invoice includes charges #ithout descriptions? #hich are !ound to generate a call from the customer'

CHA5teR 9: 5A$ING !OR

189

ENTERIN G

9' I? <(1&e t&*.0in, ./*sses+ .%((se t%e *22&(2&i*te ./*ss ?(& t%e
The 4lass column appears onl% if %ou use QuickBooks classes "page 1&4$' 10' #f the .ill youBre entering inclu es ifferent ty&es of e"&enses, re&eat ste&s 0N+ to a a ro< for each ty&e of e"&ense, as sho<n in Figure +92@ :s soon as %ou finish one ro# in the ta!le? QuickBooks fills in the :mount cell in the ne0t ro# #ith the amount that=s still unallocated' 5or the first through the ne0t*to*last ro#? %ou have to edit the amount that the program fills in to match %our e0pense' The amount QuickBooks enters in the last ro# should !e correct if %ou haven=t made an% t%pos' If the multiple accounts and amounts are hopelessl% mangled? at the top of the .nter Bills #indo#? click 4lear 8plits to clear the ta!le so %ou can start over' 11' !lick $ave A !lose to save the .ill an close the <in o<@ <r? if %ou have other !ills to enter? click 8ave - Be# to save that !ill and displa% a ne# !lank one'

F i )%RE +92

If %ou change the value in the :mount Que !o0? QuickBooks doesn=t auto* maticall% ad2ust the values on the .0penses and Items ta!s to match' To make the program modif% the last entr% amount so that the :mount Que and the total on the ta!s are the same? click >ecalculate at the top of the #indo#' If %ou change a value in one or more :mount cells? click >ecalculate to update the :mount Que'

1F0

QUICKBOOKs 2014: tHe MIssInG

RECORDING
T#6

Nou can=t change a vendor=s currenc% after %ou=ve recorded %our first transaction for that vendor' To s#itch to a different currenc%? %ou have to create a ne# vendor record that uses the ne# currenc%' The alternative is to calculate the !ill=s values in %our home currenc% !ased on the going e0change rate and then enter the !ill in QuickBooks #ith those converted values'

Q.,<8IT T< : L.BQ<>

FREQ%E>T28 *$:E1 Q%E$T#4>

Bills and 5oreign 4urrencies


Ao# do I enter a !ill that has values in a foreign currenc%G Before %ou can enter !ills #ith values in foreign currencies? %ou have to turn on QuickBooks= multiple currencies preference !% choosing .ditM,referencesMMultiple 4urrencies? clicking the 4ompan% ,references ta!? and then selecting the +Nes? I use more than one currenc%/ option "see page I C for details$' :fter that? %ou can assign a currenc% to a vendor' In the Be# Lendor or .dit Lendor #indo# "page DE$? !elo# and to the right of the Lendor Bame !o0? choose the currenc% that the vendor uses' <nce %ou do that? the .nter Bills #indo# displa%s the vendor=s currenc% in several places' The currenc% appears in the #in* do#=s title !ar and to the right of the vendor=s name? as sho#n in 5igure C*&' The :mount Que !o0 sho#s the foreign currenc% to the left of the amount? #ith the corresponding value in %our home currenc% !elo# it' :nd the .0penses and Items ta!s !oth sho# the foreign currenc% to indicate that the values %ou enter are in that currenc%' Aere=s ho# to fill out a !ill a vendor su!mitted in a foreign currenc%: 1' Q o# n l o a d t h e m o s t re ce n t e 0c h a n g e r a te s fo r t h e currencies %ou use' "8ee page 4IE to learn ho# to enter or do#nload currencies and e0change rates into the 4urrenc% Pist'$ 2' In the .nter Bills #indo#=s : (, :ccount !o0? choose the :ccounts ,a%a!le account that corresponds to the foreign currenc%' &' In the :mount Que !o0? t%pe the !ill=s value in the foreign currenc%' 4' <n the .0penses and Items ta!s= :mount cells? t%pe the amounts in the foreign currenc%' ' Belo# the .0penses and Items ta!s? in the +.0change >ate 1 Zcurrenc%[ H/ !o0? t%pe the e0change rate from the foreign currenc% to %our home currenc% "in 5igure C*&? that=s 4hinese Nuan >enmin!i to ;'8' dollars'$ I' 4lick >ecalculate at the top of the #indo# to calculate the !ill=s total in %our home currenc%'

>ecording Lendor

Qeposit

to

8uppose a vendor re)uires a deposit !efore it #ill deliver a service or product' In QuickBooks? %ou can record the deposit pa%ment so it sho#s up as a credit to that vendor' Then? #hen the !ill arrives? %ou can appl% that credit to the !ill' Aere=s #hat %ou do: 1' ;rite a check K&age 1+(L, enter a cre it car charge K&age 20(L, or use another &ay'ent 'etho K&age 204L to &ay the e&osit@ If %ou have an open purchase order for items from that vendor? QuickBooks displa%s a message !o0 a!out itW click Bo !ecause it=s too earl% to use the pur* chase order' Nou aren=t purchasing the items %et'

CHA5teR 9: 5A$ING !OR

1F1

RECORDING

Q.,<8IT T< : L.BQ<>

F i )%RE +9(

Bear the top of the .nter Bills #indo#? %ou have to choose the :ccounts ,a%a!le account that goes #ith the foreign currenc% that the vendor uses' If %ou pa% !ills in several different currencies? %ou need an :ccounts ,a%* a!le account for each currenc%' That #a%? %ou can recalculate the gains or losses from changes in each e0change rate'

2' #n the ;rite !hecks or Enter !re it !ar !harges <in o<, click the E"&enses ta.@ #n the first *ccount cell, choose your *ccounts 6aya.le account@ 4hoosing this account creates a credit for %ou #ith that vendor' &' #n the first *'ount cell, enter the a'ount of the e&osit@

Jhen %ou click a#a% from this :mount cell? the amount listed at the top of the #indo# changes to the deposit amount %ou 2ust entered' 4' !lick $ave A !lose Kor $ave A >e<L to save the &ay'ent transaction@ Nou don=t have to do an%thing else until the final !ill arrives' ' ;hen you receive the .ill, enter it in QuickBooks as you <oul any other .ill@ 5ill in the :ccount fields #ith the e0pense accounts for the products or services %ou received "page 1DE$' I' *&&ly the ven or cre it to the .ill as escri.e on &age 1+1@ The credit reduces the !alance due'

D' $ave the .ill@ Nou=re done] Jhen it=s time to pa% the !ill? simpl% pa% it using the ne#? lo#er !alance "page 1E $'
T#6

>.IMB;>8:BP. .R,.B8.8

HANDCIN

Nou can also use this techni)ue to edit a check or credit card charge so %ou can appl% it to a !ill that %ou forgot %ou=d alread% entered' 8impl% edit the check or credit card charge and change the account to :ccounts ,a%a!le' Then? use the credit to pa% the !ill'

Aandling >eim!ursa!le .0penses


>eim!ursa!le e0penses are costs %ou incur that a customer su!se)uentl% pa%s' ,roducts %ou purchase specificall% for a customer or a su!contractor %ou hire to #ork on a customer=s 2o! are costs %ou pass on to the customer' 5or e0ample? travel costs are a common t%pe of reim!ursa!le e0pense? and %ou=ve pro!a!l% seen telephone and photocop% charges on %our attorne%=s statements' There are t#o #a%s to track reim!ursa!le e0penses? and QuickBooks can handle them !oth: V *s inco'e@ Jith this method? QuickBooks posts the e0penses on a !ill %ou record to the e0pense account %ou specif%' Jhen %ou invoice %our customer? QuickBooks posts the reim!ursement as income in a separate income account' Nour income is higher this #a%? !ut it=s offset !% higher e0penses' This approach is popular !ecause it lets %ou compare income from reim!ursa!le e0penses #ith the reim!ursa!le e0penses themselves to make sure the% match' The !o0 on page 1E4 descri!es the income accounts %ou need for tracking reim!ursa!le e0penses this #a%' V *s e"&enses@ Tracking reim!ursements as e0penses doesn=t change the #a% QuickBooks handles !illsUe0penses still post to the e0pense accounts %ou specif%' But? #hen %our customer pa%s %ou for the reim!ursa!le e0penses? Quick* Books posts those reim!ursements right !ack to the e0pense account? so the e0pense account !alance looks as if %ou never incurred the e0pense in the first place' Because %ou use the same e0pense account to record !oth the e0pense and the reim!ursement? %ou don=t have to do an% special setup in QuickBooks'

$etting %& Rei'.urse'ents as #nco'e


If %ou #ant to track reim!ursa!le e0penses as income? choose .ditM,referencesMTime - .0penses' Then? on the 4ompan% ,references ta!? turn on the +Track reim!ursed e0penses as income/ check!o0' Jith this preference turned on? #henever %ou cre* ate or edit an e0pense account "in the :dd Be# :ccount or .dit :ccount #indo#$? QuickBooks adds a +Track reim!ursed e0penses in Income :cct'/ check!o0 and drop*do#n list to the !ottom of the #indo#? as sho#n in 5igure C*4'

>.IMB;>8:BP. .R,.B8.8
;4R:*R4%>1 ;4R:$H46

HANDCIN

:ccounts for >eim!ursa!le .0penses


QuickBooks #on=t let %ou assign the same income account to more than one reim!ursa!le e0pense account? so %ou have to create a separate income account "see 4hapter &$ for each t%pe of reim!ursa!le e0pense' To keep %our chart of accounts neat? create a top*level income account called something like >eim!ursed .0penses' Then create an income su!account for each t%pe of reim!ursa!le e0pense' Jhen %ou=re done? %our income accounts #ill look something like this: V 4100 8ervice >evenue V 4200 ,roduct >evenue V 4C00 >eim!ursed .0penses * Income 8u!accounts for account 4C00: V 4C10 >eim!ursed Telephone V 4C20 >eim!ursed ,ostage V 4C&0 >eim!ursed ,hotocopies V 4C40 >eim!ursed Travel :n alternative approach is to create <ther 4harge items for each t%pe of reim!ursa!le e0pense' B% doing so? %ou can as* sign those items to a single income account? and %ou can see the details of each reim!ursa!le categor% !% running a 8ales B% Item report "page 4ID$'

F i )%RE +94

To track a reim!ursa!le e0pense as income? in the :dd Be# :ccount or .dit :ccount #indo#? turn on the +Track reim!ursed e0penses in Income :cct'/ check!o0 and then? in the drop*do#n list? choose the income account to use' If %ou=ve alread% created %our e0pense accounts? %ou=ll have to edit each one that=s reim!urs* a!le "travel? telephone? e)uipment rental? and so on$ and add the income account as sho#n here'

Aere=s #hat happens as %ou progress from pa%ing !ills to invoicing customers: 1' Jhen %ou assign an e0pense on a !ill as reim!ursa!le to a customer? Quick* Books posts the mone% to the e0pense account %ou specified'

2' Jhen %ou create an invoice for that customer? the program reminds %ou that %ou have reim!ursa!le e0penses' &' Jhen %ou add the reim!ursa!le e0penses to the customer=s invoice? the% post to the income account %ou specified for that t%pe of e0pense' "8ee the !o0 on page 1E4 to learn more a!out creating income accounts for reim!ursa!le e0penses'$

,:NIB@ N<;> BIPP8

Recor ing Rei'.ursa.le E"&enses


:s %ou enter !ills "page 1DI$ or make immediate pa%ments #ith checks or credit cards? %ou add designated e0penses as reim!ursa!le? as sho#n in 5igure C* ' Jhen %ou choose a customer or 2o! in the 4ustomer:Oo! column? QuickBooks automati* call% adds a checkmark to the +Billa!leG/ cell' Be sure to t%pe a note in the Memo cell to identif% the e0pense? !ecause QuickBooks uses the te0t in that cell as the description of the reim!ursa!le e0pense on %our invoice'
T#6

8ometimes %ou #ant to track e0penses associated #ith a customer or 2o!? !ut %ou don=t #ant the customer to reim!urse %ou? like #hen %ou have a fi0ed*price contract' In that situation? click the +Billa!leG/ cell for that e0pense to remove the checkmark'

F i )%RE +95

The ta!les in the .nter Bills? Jrite 4hecks? and .nter 4redit 4ard 4harges #indo#s all include columns to designate reim!ursa!le e0penses and the customers or 2o!s to #hich the% appl%' "Nou can click 8plits in an account register to access these columns'$

,a%ing Nour Bills


.ntering !ills in QuickBooks isn=t the same as pa%ing !ills' The !ills %ou enter in %our compan% file are a record of #hat %ou o#e and #hen? !ut the% do nothing to send mone% to %our vendors' ,a% Bills is the QuickBooks feature that actuall% pushes %our mone% out the door' It lets %ou select the !ills %ou #ant to pa%? ho# much to pa% on each one? as #ell as the pa%ment method? account? and date' If %ou have credits or earl% pa%ment discounts? %ou can include those? too'

5A$ING $OUR

the !ills due up to the current date? grouped !% vendor' To run it? choose >eportsMLendors - ,a%a!lesM;npaid Bills Qetail or? at the top left of the .nter Bills #indo#? click the >eports ta!? and then click the ;npaid Bills Qetail icon' The #indo#=s >eports ta! offers several other vendor*related reports like <pen ,urchase <rder Qetail and ,urchases B% Lendor Qetail'

I? <(1 =*nt t( ev*/1*te *// <(1& 1n2*i) ;i//s ;e?(&e <(1 2*<

$electing Bills to 6ay


Nou !egin the pa%ment process !% choosing the !ills %ou #ant to pa%' Aere are the steps: 1' !hoose /en orsM6ay Bills Kor click the 6ay Bills icon on the Ho'e &ageL@ QuickBooks opens the ,a% Bills #indo# and displa%s the !ills due #ithin the ne0t t#o #eeks' :s 5igure C*I sho#s? %ou can change #hich !ills are displa%ed? vie# !ill details? or appl% credits and discounts'

F i )%RE +90

In the ,a% Bills #indo#? %ou can easil% spot earl% pa%ment discounts !% selecting +8ho# all !ills/ in the upper left' Then? in the 8ort B% !o0? choose Qiscount Qate to sort !% the discount date "or the due date? if the !ill doesn=t have a discount date$' Jhen %ou click a !ill in the ta!le? QuickBooks sho#s availa!le discounts and credits in the +Qiscount - 4redit Information for Aighlighted Bill/ section "page 1EE e0plains ho# to appl% them$' If %ou #ant to revie# a !ill !efore %ou pa% it? click +@o to Bill/W the .nter Bills #indo# opens so %ou can revie# or even revise the !ill'

2' #n the 6ay Bills <in o<, select the .ills you <ant to &ay .y clicking their check.o"es in the first colu'n of the <in o<Bs ta.le@ 4licking the 8elect :ll Bills !utton !elo# the ta!le makes QuickBooks select all the !ills displa%ed in the #indo#=s ta!le' "The !utton=s la!el changes to 4lear 8elections #hen at least one !ill is selected'$ .ither #a%? QuickBooks fills in the :mt' To ,a% cells for the selected !ills #ith the total due on each !ill'
>4TE

,:NIB@ N<;> BIPP8

If %ou select more than one !ill from the same vendor? QuickBooks automaticall% com!ines those !ills onto one check #hen %ou pa% them' To pa% !ills using t#o different pa%ment methods "check and credit card? for e0ample$? make t#o passes through the ,a% Bills #indo#' <n the first pass? choose all the !ills that %ou pa% #ith the first pa%ment method and then? in the ,a%ment section=s Method drop*do#n list? choose that pa%ment method "such as 4heck$' <n the second pass? choose the !ills %ou #ant to pa% #ith the second pa%ment method and then choose that method "such as 4redit 4ard$ in the Method drop*do#n list' 8imilarl%? to pa% !ills su!mitted in different currencies? %ou have to make a separate pass through the ,a% Bills #indo# for each currenc%' QuickBooks creates an :ccounts ,a%a!le account for each currenc% %ou assign to vendors' To pa% !ills from vendors using a specific currenc%? choose the corresponding :ccounts ,a%a!le account in the :(, :ccount drop*do#n list at the top of the #indo#' The #indo# then displa%s the !ill amounts in the foreign currenc% and the amount %ou have to pa% in %our home currenc%'
>4TE

If %ou don=t use multiple currencies? the ,a% Bills #indo# doesn=t include the :(, :ccount or .0change

>ate fields' Bo# that %ou=ve selected the !ills %ou #ant to pa%? %ou can modif% the amounts %ou pa% or appl% discounts and credits !efore %ou pa% the !ills' The follo#ing sec* tions sho# %ou ho#'

Mo ifying 6ay'ent *'ounts


Jhether %ou select individual !ills or all the !ills in the list? QuickBooks automaticall% fills in the selected !ills= :mt' To ,a% cells #ith the total amounts that are due' ,a%ing !ills in full means %ou don=t have to #orr% a!out the ne0t due date or pa%ing late fees? !ut making partial pa%ments can stretch limited resources to appease more of %our unpaid vendors? as the !o0 on page 1EE e0plains' To pa% onl% part of a !ill? in a !ill=s :mt' To ,a% cell? simpl% t%pe ho# much %ou #ant to pa%'

5A$ING

BIPP8

T#6

If %ou keep %our cash in an interest*!earing account until %ou need it? %ou=ll #ant to kno# ho# much mone% %ou need to transfer to %our checking account to pa% the !ills' In the ,a% Bills #indo#? the num!er at the !ottom of the :mt' Que column is the total of all the !ills displa%ed? and the num!er at the !ottom of the :mt' To ,a% column is the total of all the !ills %ou=ve selected' If %ou select all the !ills in the list? the t#o totals are initiall% the same' But if %ou change a value in an :mt' To ,a% cell? click another cell to update the :mt' To ,a% total'

%6 T4 $6EE1

Jhen 4ash Is Tight


If %our cash accounts are d#indling? %ou ma% face some tough decisions a!out #hom to pa% and #hen' To help keep %our !usiness afloat until the hard times pass? here are a fe# strategies to consider: V ,a% government o!ligations "ta0es and pa%roll #ith* holdings$ first' In the ,a% Bills #indo#=s 8or t B% !o0? choose Lendor to make it eas% to spot all %our government !ills' V ,a% the vendors #hose products or services are essential to %our !usiness' V Make partial pa%ments to all %our vendors rather than full pa%ments to some and no pa%ments to others' V If %ou #ant to pa% small !ills in full? in the 8ort B% !o0? choose :mount Que to sort %our outstanding !ills !% dollar value'

*&&lying 1iscounts an !re its to 6ay'ents


Most companies like to use their discounts and credits as soon as possi!le' B% far the easiest #a% to deal #ith discounts and credits %ou receive from vendors is to let QuickBooks handle them automaticall%' Aere=s ho# to delegate appl%ing earl% pa%ment discounts and availa!le credits to QuickBooks: 1' !hoose E itM6referencesMBills, an then click the !o'&any 6references ta.@ Because these settings are on the 4ompan% ,references ta!? %ou have to !e a QuickBooks administrator to change them' The settings %ou choose here appl% to ever% person #ho logs into %our compan% file' 2' To 'ake QuickBooks a&&ly availa.le cre its auto'atically, turn on the G*uto'atically use cre itsH check.o"@ Jith this setting turned on? QuickBooks automaticall% deducts vendor credits from the corresponding vendor=s !ills' If %ou=d rather choose #hen to appl% credits? leave this check!o0 turned off' &' Turn on the G*uto'atically use iscountsH check.o" an , in the 1efault 1iscount *ccount .o", choose the account you use to track ven or iscounts@ If %ou haven=t set up an account for vendor discounts? in the Qefault Qiscount :ccount drop*do#n list? choose _:dd Be#`? and then create a ne# account "page 1$ called something like +Lendor Qiscounts'/

1FF

QUICKBOOKs 2014: tHe MIssInG

>4TE

Jhether %ou create an income account or an e0pense account for vendor discounts is neither an ac* counting rule nor a QuickBooks re)uirement? !ut a matter of ho# %ou vie# vendor discounts' If %ou think of them as e0penses %ou=ve saved !% pa%ing earl%? create an e0pense account' If %ou vie# them as mone% %ou=ve made? create an income account instead' .ither #a%? discounts %ou receive from vendors are different from discounts %ou e0tend to %our customers' 8o? in the Qefault Qiscount :ccount !o0? choose an account specificall% for vendor discounts? not %our customer discount account' :s %ou=d e0pect? turning on these check!o0es tells QuickBooks to appl% earl% pa%* ment discounts and availa!le credits to !ills #ithout further instructions from %ou' The program uses %our pa%ment terms to figure out the earl% pa%ment discounts %ou=ve earned? and it adds all availa!le credits to their corresponding !ills' Jhether these check!o0es are on or off? %ou can still control the discounts and credits QuickBooks applies to %our !ills? as %ou=ll learn on the follo#ing pages' 5or e0ample? %ou might #ant to dela% a large credit until the follo#ing %ear to increase %our e0penses in the current %earU#hich decreases this %ear=s ta0a!le income' *6628#>) 1#$!4%>T$ M*>%*228 If %ou #ant to appl% discounts !% hand or change a discount that QuickBooks added? here=s #hat to do: 1' 4n the Ho'e &age, click the 6ay Bills icon or choose /en orsM6ay Bills@ 2' #n the 6ay Bills <in o<Bs ta.le, turn on the check'ark cell Kin the first col9 u'nL for the .ill <hose iscount you <ant to e it@ In the +Qiscount - 4redit Information for Aighlighted Bill/ section? QuickBooks sho#s the discount and credits that are availa!le for the selected !ill' More importantl%? the program activates the 8et Qiscount and 8et 4redits !uttons so %ou can click them to appl% discounts and credits' "If the !ill=s checkmark cell is turned off? QuickBooks sho#s the suggested discount and availa!le credits? !ut the 8et Qiscount and 8et 4redits !uttons are dimmed'$
T#6

,:NIB@ N<;> BIPP8

Jhen %ou=re appl%ing discounts manuall%? look for dates in the Qisc' Qate column that are in the future' Those !ills )ualif% for earl% pa%ment discounts' &' To a&&ly or 'o ify a iscount to the selecte .ill, click $et 1iscount@ QuickBooks opens the +Qiscount and 4redits/ dialog !o0 "5igure C*D$' If %ou=ve turned on multiple currencies? the currenc% %ou set for the vendor appears to the left of the 8uggested Qiscount la!el and in the +:mount of Qiscount/ !o0' 4' #n the G*'ount of 1iscountH .o", QuickBooks fills in the suggeste To a&&ly a ifferent iscount, ty&e the ne< value@ iscount@

Man% companies tr% to save mone% !% taking earl% pa%ment discounts #hen the% haven=t actuall% paid earl%' 8ome companies appl% discounts regardless of #hat their pa%ment terms are? and man% vendors honor these undeserved discounts in the name of good#ill'

5A$ING

BIPP8

F i )%RE +93

In the +Qiscount and 4redits/ dialog !o0? QuickBooks automaticall% selects the Qiscount ta! and displa%s %our pa%ment terms? the discount date? and the amount of discount %ou deserve' If the suggested discount is #orth an earl% separation from %our mone%? click Qone to deduct the discount from %our !ill' <ther#ise? click 4ancel' If %ou also #ant to #ork on credits "page 1C1$? #hen %ou=re done modif%* ing the discount? click the 4redits ta!'

' #n the 1iscount *ccount track ven or iscounts@

ro&9 o<n list, choose the account you use to

If %ou use an income account? discounts appear as positive num!ers and increase the !alance of the income account' If %ou use an e0pense account? discounts appear as negative num!ers !ecause the% reduce ho# much %ou spend on e0penses'
T#6

If %ou #ant to track discounts on inventor% separatel% from other discounts %ou receive? create a cost of goods sold account specificall% for inventor% discounts' 5or e0ample? if QuickBooks created account 000 for 4ost of @oods 8old? %ou can create t#o su!accounts: 00 for 4ost of Inventor% 8old and 010 for Inventor% Qiscounts' In %our financial reports? the t#o su!accounts sho# %our original cost and the discounts %ou receive' :ccount 000 adds the t#o su!accounts together to sho# %our net cost of goods sold' I' #f you track classes, choose a class for the iscount@

T%picall%? %ou=ll choose the same class for the discount that %ou used for the original e0pense' D' !lick 1one@ QuickBooks closes the +Qiscount and 4redits/ dialog !o0' Back in the ,a% Bills #indo#? the program adds the discount %ou entered in the !ill=s Qisc' ;sed cell and recalculates the value in the :mt' To ,a% cell !% su!tracting the discount from the amount due'

190

QUICKBOOKs 2014: tHe MIssInG

*6628#>) !RE1#T$ M*>%*228 Jhen %ou select a !ill in the ,a% Bills #indo#? the +Qiscount - 4redit Information for Aighlighted Bill/ section sho#s the credits that are availa!le for that !ill' If the +Qiscount and 4redits/ dialog !o0 is alread% open !ecause %ou=ve applied a discount? 2ust click the 4redits ta! and then perform step 4 of the list !elo#' <ther#ise? here=s ho# to appl% availa!le credits to a !ill or remove credits that QuickBooks applied for %ou: 1' 4n the Ho'e &age, click the 6ay Bills icon or choose /en orsM6ay Bills@ 2' #n the 6ay Bills <in o<Bs ta.le, select a .ill .y turning on its check'ark cell@ In the +Qiscount - 4redit Information for Aighlighted Bill/ section? QuickBooks sho#s the credits availa!le for that vendor? if an%? and activates the 8et 4redits !utton' &' To a&&ly a cre it to the selecte .ill, click $et !re its@ QuickBooks opens the +Qiscount and 4redits/ dialog !o0 and displa%s the 4redits ta!? sho#n in 5igure C*E' 4redits that are alread% applied to the !ill have checkmarks ne0t to them' 4' Turn on the check'ark cell for each cre it you <ant to a&&ly@ #f you <ant to use a cre it later, turn off its check'ark cell@ Then click 1one@ QuickBooks closes the dialog !o0 and applies the credits'

,:NIB@ N<;> BIPP8

F i )%RE +97

<n the +Qiscount and 4redits/ dialog !o0=s 4redits ta!? click a credit=s checkmark cell to toggle !et#een appl%ing the credit and removing it from the !ill' Jhen %ou click Qone here? QuickBooks updates the ,a% Bills #indo#=s 4redits ;sed value to sho# the amount of credit applied to the !ill? and the :mt' To ,a% value to reflect the amount %ou have to pa% !ased on !oth applied discounts and credits'

CHA5teR 9: 5A$ING !OR

19

5A$ING $OUR

ettin, t%e 5*<3ent Met%() *n) A..(1nt A?te& <(1ve se/e.te) t%e ;i//s <(1 2*< *n) %ou still have to tell QuickBooks ho# and=*nt #hen t( %ou #ant to *22/ie) pa% those*n< !ills' These
pa%ment settings at the ver% !ottom of the ,a% Bills #indo# are the last ones %ou have to ad2ust !efore pa%ing %our vendors: V 1ate@ QuickBooks fills in the current date automaticall%' To predate or postdate %our pa%ments? choose a different date' ",age I 4 e0plains ho# to get Quick* Books to date checks using the da% %ou print them'$

V Metho @ In this drop*do#n list? choose ho# %ou #ant to pa% the !ills: 4heck? 4redit 4ard? or "if %ou su!scri!e to QuickBooks= online !ill*pa%ment service$ <nline Bank ,mt' If %ou pick 4heck? %ou have one other choice to make here: U If %ou print %our checks from QuickBooks? choose the To .e &rinte option? and the program automaticall% adds the !ills %ou selected to its )ueue of checks to !e printed' "Nou=ll learn a!out printing these checks on page 200'$ U If %ou #rite checks !% hand? choose the *ssign check nu'.er option' That #a%? %ou can assign check num!ers #hen %ou click the ,a% 8elected Bills !utton "e0plained in a moment$' V *ccount@ If %ou specified a default account for the ,a% Bills #indo# to use "page I44$? QuickBooks automaticall% selects that account here' To use a different one? in this drop*do#n list? choose the account %ou use to pa% !ills? such as a checking or credit card account'

6aying $electe Bills


Jhen %ou=re done setting up !ills to pa%? it=s time to pa% them' Aere are the steps: 1' !lick the 6ay Bills <in o<Bs 6ay $electe Bills .utton@ If %ou #rite paper checks for %our !ills and choose the +:ssign check num!er/ option? QuickBooks opens the :ssign 4heck Bum!ers dialog !o0' If %ou use an% other pa%ment method? 2ump to step &' 2' #n the *ssign !heck >u'.ers ialog .o", if you <ant to start <ith the ne"t unuse check nu'.er, choose the G2et QuickBooks assign check nu'.ersH o&tion, an then click 4:@ If %ou instead #ant to specif% the check num!ers for each check %ou #rite "to match the paper checks %ou=ve alread% #ritten? for e0ample$? choose the +Pet me assign the check num!ers !elo#/ option' .nter the check num!ers in the 4heck Bo' cells? and then click <6' &' #n the 6ay'ent $u''ary <ant to take ne"t@ ialog .o", click the .utton for the action you

This dialog !o0 sho#s the pa%ments %ou=ve made and adds those pa%ments to the appropriate checking or credit card account register' :ll %ou have to do is click the appropriate !utton:

WRITING O I? <(1 =&ite 2*2e& .%e.0s+ ./i.0 D(ne' T%en =&ite t%e .%e.0s
as descri!ed in the ne0t section' U If %ou chose the +To !e printed/ option to print checks from QuickBooks? click 6rint !hecks and see page 201 for details' <r? if %ou aren=t read% to print checks 2ust %et? click Qone' U To create another !atch of !ill pa%ments "for e0ample? to pa% !ills !% using another method$? click 6ay More Bills'
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CHECK WITHOUT BIPP8

The ne0t time %ou open the .nter Bills #indo#? %ou=ll see a ,:IQ stamp on !ills %ou=ve paid'

Jriting 4hecks Jithout .ntering Bills


Nou might enter !ills in QuickBooks for the ma2orit% of %our vendor transactions so %ou can keep track of earl% pa%ment discounts or #hen !ills are due' But %ou=re still likel% to #rite a )uick check from time to time to pa% for an e0pense immediatel%' 5or e0ample? #hen the person #ho plo#s %our parking lot knocks on the door and asks for pa%ment? he #on=t #ant to #ait #hile %ou step through the !ill*entering and !ill*pa%ing process in QuickBooksUhe 2ust #ants his Y100' :nd if %ou #rite onl% a couple of checks a month? there=s nothing #rong #ith #riting checks to pa% vendors #ithout entering a !ill in QuickBooks' Jhen %ou=re ne# to QuickBooks and #ant some guidance? use the Jrite 4hecks #indo# to make sure %ou enter all the re)uired info' <nce %ou=re more e0perienced? %ou can record checks directl% in QuickBooks= checking account register' This sec* tion descri!es ho# to do !oth'

%sing the ;rite !hecks ;in o<


The Jrite 4hecks #indo# is like a trimmed*do#n version of the .nter Bills #indo#' Because %ou=re pa%ing immediatel%? there=s no need for fields such as Bill Que or Terms' 5or a pa%ment #ithout a !ill? %ou have to provide information a!out the e0* penses or items %ou=re pa%ing for? #hich is #h% the Jrite 4hecks #indo# includes the .0penses and Items ta!s' QuickBooks fills in a fe# fields for %ou? and the rest are like the ones %ou=ve met alread% in the .nter Bills #indo# "page 1DD$'
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Qon=t use the Jrite 4hecks "or .nter Bills$ #indo# to #rite checks to pa% sales ta0? pa%roll? pa%roll ta0es? or other pa%roll lia!ilities' Instead? see page I1 to learn ho# to pa% sales ta0? and 4hapter 1 for info a!out pa%roll transactions'

WRITING CHECK WITHOUT BIPP8 T( =&ite * .%e.0 in t%e W&ite C%e.0s =in)(=+ ?(//(=
1' 4&en the ;rite !hecks <in o< .y &ressing !trlO;, choosing BankingM;rite !hecks, or clicking the ;rite !hecks icon on the Ho'e &age@ :s %ou can see in 5igure C*C? QuickBooks tries to flatten the learning curve !% making the upper part of the #indo# look like a paper check' If %ou use multiple currencies? QuickBooks lists the currenc% for %our checking account in the Bank :ccount !o0? the currenc% for the vendor on the right side of the +,a% to the <rder of/ !o0? and the currenc% for the check to the left of the check amount' If %ou set up !ank account preferences "page I44$? such as #hich !ank account to use #hen %ou open the Jrite 4hecks #indo#? QuickBooks automaticall% chooses that account for %ou'

F i )%RE +9+

4hoosing a name in the +,a% to the <rder of/ field fills in the :ddress !o0? #hich is perfect for printing checks for mailing in #indo# envelopes' .ven though the compan% name appears in the +,a% to the <rder of/ field? QuickBooks also displa%s the compan% name in the :ddress !o0 name to sho# %ou #hat it prints on checks' If %ou include account num!ers in %our vendor records? QuickBooks adds the account num!er to the Memo field' :lso? if %ou don=t use multiple currencies? the ,a% <nline check!o0 appears near the top of the #indo#' Turn this check!o0 on to send this pa%ment electronicall% "page I22$'

2' #f you <ant to &rint the check, at the to& of the <in o<, 'ake sure the 6rint 2ater check.o" is turne on, an then ski& to ste& 4@ #f youBre <riting checks .y han , turn off the 6rint 2ater check.o" an then continue <ith ste& (@ Jhen this check!o0 is on? the #ords +To ,rint/ appear to the right of the Bo' la* !el? and QuickBooks adds the checks %ou create to a print )ueue' Jhen %ou print those checks "page 200$? QuickBooks replaces +To ,rint/ #ith check num!ers'

.o" is correct@ Jhen %ou turned off the ,rint Pater check!o0? QuickBooks automaticall% filled in the Bo' !o0 #ith the ne0t check num!er for the selected !ank account' If the num!er it filled in doesn=t match the check %ou=re #riting !% hand? t%pe in the num!er from %our paper check' If %ou t%pe a check num!er that=s alread% !een used? QuickBooks #arns %ou a!out the duplicate num!er #hen %ou tr% to save the check' In the #arning message !o0? click 4ancel? and then? in the Jrite 4hecks #indo#? edit the value in the Bo' field'
T#6

BIPP8

If %ou suspect that there=s more than one check num!er a#r%? open the checking account register "page & I$ to revie# multiple checks at once' To renum!er a check in the register #indo#? dou!le*click the check transac* tion=s Bum!er cell? t%pe the ne# num!er? and then press .nter to save the change' :s long as %ou keep editing check num!ers until all the duplicates are gone? it=s perfectl% accepta!le to save a duplicate check num!er' 4' #n the G6ay to the 4r er ofH ro&9 o<n list, choose <ho' you <ant to &ay@ This list includes customers? vendors? emplo%ees? and names from the <ther Bames Pist' If %ou entered the vendor=s name in the +,rint on 4heck as/ !o0 #hen %ou set up the vendor? %ou=ll see +,rint :s: Zname[/ a!ove the +,a% to the <rder of/ line' ' * entries to the E"&enses an #te's ta.s for the things the check is &ay9 ing for, Iust like you o <hen you enter a .ill K&age 13+L@ QuickBooks calculates the check amount as %ou add entries on these ta!s' If %ou fill in the check amount and then start adding e0penses and items? %ou=ll kno# that the check total and the posted amounts match #hen no unallocated dollars remain' If %ou mangle the entries on either ta!? %ou can start over !% clicking the 4lear 8plits !utton at the top of the #indo#' I' !lick $ave A !lose to recor the check@ To #rite another check? click 8ave - Be#' To thro# a#a% an% values in the #indo# and start over? click 4lear'

ing !hecks to an *ccount Register

In QuickBooks? entering checks in a !ank account register is fast? eas%? andUfor ke%!oard aficionadosUaddictive' B% com!ining t%ping and ke%!oard shortcuts? such as ta!!ing from cell to cell? %ou can make short #ork of entering checks' Aere=s ho# to create checks in a register #indo#: 1' 6ress !trlO* to o&en the !hart of *ccounts <in o<, an then your .ank account@ ou.le9click

Nou can also open the register !% clicking 4heck >egister in the Aome page=s Banking sectionW then? in the ;se >egister dialog !o0? select the checking ac* count and click <6' .ither #a%? QuickBooks opens the account register #indo# and positions the cursor in the Qate cell of the first !lank transaction'

WRITING CHECK WITHOUT BIPP8 2' T( *)D1st t%e .%e.0s )*te ;< * ?e= )*<s+ 2&ess t%e 2/1s 0e< KIL
KNL until the ate is <hat you <ant@ 8ee :ppendi0 4 "availa!le from this !ook =s Missing 4Q page at ## #' missingmanuals'com(cds$ for more date*related ke%!oard shortcuts' &' 6ress Ta. to 'ove to the >u'.er cell@ QuickBooks automaticall% fills in the ne0t check num!er for that !ank account' If the num!er doesn=t match the paper check %ou #ant to #rite? press T or X until the num!er is correct or simpl% t%pe the ne# num!er' ",ages 204X20I e0plain ho# to fill in the Bum!er cell if %ou make a pa%ment #ith a de!it card? :TM card? electronic transaction? or other method'$ 4' 6ress Ta. to 'ove to the 6ayee cell, an then start ty&ing the na'e of the &ayee@ QuickBooks scans the lists of names in %our compan% file and selects the first one that matches all the letters %ou=ve t%ped so far' :s soon as it selects the one %ou #ant? press Ta! to move to the ,a%ment cell' ' #n the 6ay'ent cell, ty&e the a'ount of the check@ If %ou previousl% recorded a check for that vendor? QuickBooks fills in this cell #ith the amount from the previous check' To use a different amount? simpl% t%pe the ne# value' I' !lick the *ccount cell@ If the pa%ee is a vendor #ith pre*fill accounts assigned "page E0$? QuickBooks adds +*split*/ to the :ccount cell' In that case? click 8plits !elo# the ta!le to open the 8plits panel "see 5igure C*10$ so %ou can enter amounts for more than one account' Nou can also click 8plits if %our check covers more than one t%pe of e0pense and %ou #ant to allocate the pa%ment among several accounts' 5or each allocation? specif% the account? amount? memo? customer? and class "if %ou track classes$? and then click 4lose' D' #f the check a&&lies to only one e"&ense account, in the *ccount list, choose the a&&ro&riate account@ ro&9 o<n

Nou can also choose an account !% t%ping the account=s num!er or the first fe# letters of its name' :s %ou t%pe? QuickBooks selects the first account that matches #hat %ou=ve t%ped' Jhen the account is correct? press Ta! to move to the Memo cell' E' To a a escri&tion of the check, in the Me'o cell, ty&e your notes@ ;hen youBve fille in all the fiel s you nee , click Recor to save the check@ Pather? rinse? repeat'

,><Q;4IB@ 4A.468

F i )%RE +910

To allocate a check to multiple accounts or to specif% a customer? 2o!? or class in the check register? click the 8plits !utton "circled$ to open the panel sho#n here so %ou can assign them' If %ou modif% the value in the ,a%ment cell or an% values in the :mount cells? click >ecalc to change the check pa%* ment amount to the total of the splits'

>4TE

.ntering checks in the register is !est reserved for paper checks that %ou #rite? !ut %ou can print checks %ou enter in the register: In the register? t%pe To ,rint in the transaction=s Bum!er cell and then click >ecordW QuickBooks adds the check to the )ueue of checks #aiting to !e printed' ",age 200 e0plains ho# to print these )ueued*up checks'$

,roducing 4hecks
Jhen %ou choose 4heck in the ,a% Bills #indo#=s Method field? %our checking account register sho#s check transactions? !ut %ou still have to generate ph%sical checks to send to %our vendors' 5or companies that produce lots of checks? printing them in QuickBooks can prevent carpal tunnel s%ndrome' But for a sole proprietorship that generates onl% a fe# checks each month? #riting them !% hand is eas% enough' :s this section e0plains? QuickBooks accepts either approach #ith e)ual aplom!'

;riting !hecks .y Han


Aand#riting checks doesn=t re)uire an% #ork in QuickBooks? !ut %ou still have to keep %our compan% file in s%nc #ith %our paper checks' Jhether %ou=re #riting checks for !ills %ou=ve paid in QuickBooks or scratching out a spur*of*the*moment check to the fortune*teller for this #eek=s corporate horoscope? %ou #ant to make sure that the check num!ers in %our !ank account register match %our paper checks' If %ou=ve alread% recorded %our check transactions in QuickBooks !% pa%ing !ills "page 1E $ or entering a check transaction in %our checking account register #indo# for an immediate pa%ment "page 1C $? s%nchroniKing check num!ers is as

WRITING
eas% as CHECK WITHOUT

2' T( *)D1st t%e .%e.0s )*te ;< * ?e= )*<s+ 2&ess t%e 2/1s 0e< KIL

,><Q;4IB@ T%e ?i&st 4A.468

5RODUCIN #riting the paper checks in the same order as entered them ste2 is te//in, Q1i.0B((0s =%i.% 2&inte& t( %ou 2&int t( *n) t%e in QuickBooks'
5irst? open the checking account register #indo#' Nou=ve got a fe# #a%s to do this: Nou can press 4trlT: to open the 4hart of :ccounts #indo#? and then either dou!le*click the checking account=s ro# or right*click it and choose ;se >egister' :lternativel%? click 4heck >egister in the Aome page=s Banking panelW then? in the ;se >egister dialog !o0? select %our checking account? and then click <6' <nce the register #indo# is open? %ou can use the check transactions to guide %our paper check #riting? as sho#n in 5igure C*11'

F i )%RE +911

In a register #indo#? the code 4A6 in the T%pe cell indicates a check transaction' The code BIPP,MT along #ith a check num!er indicates a !ill paid !% check'

>4TE

If the ne0t check num!er in QuickBooks isn=t the one on %our ne0t paper check? figure out #h% the% don=t match' The ans#er might !e as simple as a voided check that %ou forgot to enter in QuickBooks or a check %ou #rote earlier that #as out of se)uence' But if someone is #alking off #ith !lank checks? %ou need to take action' ;ntil %ou find the reason for the mismatched check num!er? editing the check num!ers that QuickBooks assigns in the checking account register is the easiest #a% to get checks into the mail' In the register #indo#? simpl% dou!le*click an incorrect check num!er and then t%pe the num!er that=s on %our paper check'

$etting %& QuickBooks to 6rint !hecks


If %ou have scads of checks to generate? printing on preprinted computer checks is #ell #orth the small amount of setup %ou have to do' :nd if %ou dedicate a printer to check printing and keep it stocked #ith checks? setup is trul% a one*time event'
T#6

Pock up %our preprinted checks and an% printer stocked #ith them' <ther#ise? %ou might discover checks missing? #hich can lead to mone% disappearing from %our !ank account'

%ou use' "The program remem!ers these settings? so %ou need to go through this process 2ust once'$ :fter %ou=ve specified %our check*printing settings? QuickBooks fills them in automaticall% in the ,rint dialog !o0? though %ou can al#a%s change those options !efore %ou print' Aere=s ho# %ou set QuickBooks up to print checks: 1' 4&en the G6rinter setu&H ialog .o" .y choosing FileM6rinter $etu&@

4A.468

The dialog !o0=s 5orm Bame drop*do#n list includes all the forms %ou can print in QuickBooks? so %ou can choose different print settings for each one' 2' #n the For' >a'e ro&9 o<n list, select !heckJ6ay!heck@

Jhen %ou select this option? the 4heck 8t%le section appears in the !ottom of the dialog !o0W step 4 descri!es #hat to choose there' &' #n the G6rinter na'eH ro&9 o<n list, choose the &rinter you <ant to use@

If %ou choose a printer !rand that QuickBooks recogniKes "there are onl% a fe# it doesn=t$? the program automaticall% fills in the +,rinter t%pe/ !o0' If %ou use a ver% old or ver% odd printer? %ou=ll have to manuall% choose the t%pe of printer' +,age*oriented "8ingle sheets$/ refers to printers that feed one sheet at a time' 4hoose 4ontinuous ",erforated .dge$ if the printer feeds a roll of paper'
>4TE

If %ou print to checks on continuous*feed paper? properl% aligning the paper in the printer is critical' Nou can save time and a lot of #asted checks !% aligning the paper !efore %ou print !atches of checks? as descri!ed on page 2C2' 4' #n the !heck $tyle section, choose the o&tion that re&resents the ty&e of check you &urchase @ KThe .o" on &age 201 e"&lains <here you can .uy checks@L The +,rinter setup/ dialog !o0 displa%s e0amples of each check st%le it can deal #ith? making it eas% to choose the right one? as sho#n in 5igure C*12' Loucher checks print one to a page? so the%=re !% far the easiest to use' Ao#ever? if %ou use standard or #allet checks to save paper? see the !o0 on page 202 to learn ho# to tell QuickBooks ho# %ou #ant it to handle partial pages of checks' ' #f the co'&any you .uy checks fro' <ants too 'uch 'oney to &rint your co'&any info an logo on the checks, turn on the G6rint co'&any na'e an a ressH an G%se logoH check.o"es@ Turning on the +,rint compan% name and address/ check!o0 tells QuickBooks to print the compan% name and address %ou filled in #hen %ou created %our compan% file "page 10$' If %ou turn on the +;se logo/ check!o0? the program opens the Pogo dialog !o0' 4lick 5ile and then? in the <pen Pogo 5ile dialog !o0? select the file containing %our logo and click <pen' "QuickBooks can handle BM,? @I5? O,.@? ,B@? and TI55 formats'$ Back in the Pogo dialog !o0? click <6'

4A.468

check!o0es turned off'

F i )%RE +912

The Loucher option repre* sents one*page forms that include !oth a check and a detacha!le stu! for pa%roll or check info' The 8tandard option sets QuickBooks up to print to checks that fit in a a10 !usiness envelopeW these checks t%picall% come three to a page' Jallet checks are narro#er than standard !usiness checks and have a perforation on the left for tearing the check off? leaving a stu! containing check information that %ou can file'

I' #f you have an i'age of your signature save on your co'&uter, you can &rint it on your checks .y turning on the 6rint $ignature #'age check.o"@ Jhen %ou turn on this check!o0? QuickBooks opens the 8ignature dialog !o0' 4lick 5ile and then? in the <pen Pogo 5ile dialog !o0? locate and dou!le*click the file containing %our signature' "<ne #a% to create a graphic file of %our signature is !% signing a piece of paper and then scanning it'$ D' !lick 4: to save your check9&rinting settings@ The ne0t section tells %ou ho# to actuall% print checks'
>4TE

If %ou #ant to change the fonts on the checks %ou print? click the +,rinter setup/ dialog !o0=s 5onts ta!' There %ou can change the font for the entire check form !% clicking 5ont? or designate a special font for the compan% name and address !% clicking :ddress 5ont'

6rinting !hecks
In the ,a% Bills #indo#=s Method section? choosing the +To !e printed/ option adds the checks %ou=ve selected for pa%ment to a print )ueue #hen %ou click the ,a% 8elected Bills !utton' Nou can also tell QuickBooks to add a check to a print )ueue !% turning on the ,rint Pater check!o0 at the top of the Jrite 4hecks #indo#' :fter %ou confirm that %our preprinted checks are in the printer and that the checks are aligned properl%? %ou can print )ueued*up checks !% follo#ing these steps:

,><Q;4IB@ 4A.468
FREQ%E>T28 *$:E1 Q%E$T#4>

Bu%ing ,reprinted 4hecks


Qo I have to order checks from IntuitG The short ans#er is no? !ut there are compelling reasons to go #ith Intuit=s checks' The compan% sells competitivel% priced preprinted checks that #ork #ith QuickBooks' :lso? the program keeps track of the checks %ou=ve used and tells %ou #hen to order more' It then automaticall% sends the correct !ank account num!er #ith %our order' To order Intuit checks? at the top of the Jrite 4hecks #indo#? click <rder 4hecks' If %ou haven=t ordered from Intuit !efore? select the +I=m ordering from Intuit for the first time/ option' QuickBooks turns on the check!o0 to use %our compan% and !ank account information to fill out %our order form' 4lick <rder Bo# to open the 4hecks #e! page and set up %our order' Nou can also purchase checks from %our !ank or a !usiness* form compan% "such as 4larke :merican or Qelu0e$' The checks have to !e preprinted #ith %our !ank account num!er? !ank routing num!er? and the check num!er? !ecause QuickBooks prints onl% the pa%ment information? such as date? pa%ee? and amount' 8o if %ou order checks from a compan% other than Intuit? !e sure to tell them that %ou use QuickBooks? since the checks need to have fields positioned to match #here QuickBooks prints data'

1' #f the 6ay'ent $u''ary ialog .o" is o&en, click 6rint !hecks@ 4ther<ise, choose FileM6rint For'sM!hecks@ QuickBooks opens the +8elect 4hecks to ,rint/ dialog !o0 and selects all the unprinted checks? as sho#n in 5igure C*1&'

F i )%RE +91(

The first time %ou print checks? QuickBooks sets the 5irst 4heck Bum!er !o0 to 1' If necessar%? change this num!er to match the one on the first check loaded in %our printer'

2' #f you onBt <ant to &rint a &articular check thatBs liste , turn off its check9 .o"@ ;hen only the checks you <ant to &rint are selecte , click 4:@ QuickBooks opens the ,rint 4hecks dialog !o0? #hich looks much like the +,rinter setup/ dialog !o0 for checks "5igure C*12$'

CHA5teR 9: 5A$ING !OR

201

,><Q;4IB@ 4A.468

&' #f the first &age of checks in your &rinter is a &artial &age, in the G>u'.er of checks on first &ageH .o", ty&e ho< 'any checks there are@ Nou #on=t see this !o0 if %ou=re printing to voucher checks? !ecause the% print one to a page' But for standard or #allet checks? this !o0 lets %ou use leftover checks from previous print runs #hen %ou have a page*oriented printer' T%pe the num!er of leftover checks on the partial page? and then insert that page into %our printer=s envelope feeder' :fter QuickBooks prints checks to that page? it #ill !egin feeding full sheets of checks from the paper tra%' 4' !lick 6rint@ Because of the pro!lems that can happen during printing "paper 2ams? lo# toner? or an unfortunate coffee spill$? QuickBooks opens the +,rint 4hecks X 4onfirmation/ dialog !o0 after it prints checks' ' #f there <as a &ro.le', in the G6rint !hecks N !onfir'ationH ialog .o", click the Re&rint cell for each check that i nBt &rint correctly@ If the #hole !atch is a loss? click 8elect :ll' I' !lick 4: to re&rint the checks@ In addition to printing the checks? QuickBooks also removes the #ords To ,rint from those checks in %our checking account register? replacing them #ith the check num!ers it used'

)EM #> THE R4%)H

;sing Peftover 4hecks


If %ou use voucher checks? %ou don=t have to #orr% a!out leftovers? !ecause each check prints on its o#n page' Ao#ever? #hen %ou print standard or #allet checks to single sheets of pa* per "#hich usuall% have three checks on each sheet$? %ou might print onl% one or t#o of the checks on the last sheet? leaving a leftover or t#o' Aappil%? QuickBooks includes a setting that lets %ou print on those orphaned checks' Aere are the steps: 1' 4hoose 5ileM,rinter 8etup? and then choose 4heck( ,a%4heck in the 5orm Bame drop*do#n list' 2' 4lick the ,artial ,age ta!' &' 4 h o o s e t h e o p t i o n " 8 i d e ? 4e n te r? o r , o r t r a i t$ t h a t corresponds to ho# %our printer feeds envelopes? and then click <6 to save the setting' The 8ide and ,ortrait options are the most common methods' If %ou select 8ide? %ou insert the partial page of checks into the envelope feeder side#a%s? #ith the top of the first check aligned #ith the left side of the envelope feed' Jith the ,or* trait option? %ou feed the top of the first check straight into the envelope feeder' "Jhether %ou insert pages face up or do#n depends on the t%pe of printer %ou have' ,rint a sample page of checks to determine #hich direction %ou have to feed pages' Then tape a note to the printer #ith instructions like +,rint side do#n? top edge in first/ so %ou don=t misprint an% pages in the future'$ Before %ou start printing? feed the page #ith orphaned checks into %our printer=s envelope feeder' That #a%? QuickBooks prints to those orphaned checks !efore printing to the full pages of checks in the paper tra%'

,a%ing ;sing <ther ,a%ment Methods


These da%s? %ou can choose from a plethora of pa%ment methods? such as credit cards? de!it cards? online services like ,a%,al? and even cold cash' 5ortunatel%? recording these transactions in QuickBooks is a lot like recording checks' This sec* tion descri!es the other pa%ment methods %ou can use and ho# the% differ from #riting checks'

M.TA<Q8

6aying <ith !re it !ar s


Jhen %ou make credit card purchases? the easiest #a% to record those charges in %our compan% file is !% signing up for online !anking #ith %our financial institution "page I14$? setting up !ank feeds "page I1 $? and then do#nloading the transactions "page I1D$' But %ou can also enter credit charges manuall%'
T#6

Jhether %ou do#nload charges or not? entering charges manuall% is a great #a% to catch erroneous or fraudulent charges that appear on %our statement' 5or e0ample? after entering %our charges manuall%? %ou can do#nload the charges from %our credit card compan%' If %ou see additional charges that don=t match the ones %ou entered? either %ou forgot a charge or there=s an error in %our account' >ecording credit card charges is almost the same as #riting checks e0cept that? instead of the Jrite 4hecks #indo#? %ou #ork in the .nter 4redit 4ard 4harges #indo#? sho#n in 5igure C*14' Behind the scenes? QuickBooks adds the credit card charge to %our credit card account? #hich is a current lia!ilit% account' That means the !alance in the account increases !ecause %ou o#e more mone%' "Jhen %ou #rite a check out of %our checking account? the account=s !alance decreases !ecause %ou have less mone% in that asset account'$

F i )%RE +914

;nless %ou #ant %our Len* dor Pist a#ash #ith ever% piKKa parlor? gas station? and parking lot %ou pa* troniKe? consider creating generic vendors such as Meals? @as? and ,arking' If %ou #ant to track specific vendors? t%pe their names in the Memo field here' Nou can leave the >ef' Bo' field !lank or enter %our receipt num!er there' :llo* cating a charge to multiple accounts or to a customer #orks the same as for !ills "page 1DC$'

5A$ING U ING
M.TA<Q8

T( (2en t%e Ente& C&e)it C*&) C%*&,es =in)(=+ .%((se

4harges or click the .nter 4redit 4ard 4harges icon in the Aome page=s Banking section' Nou can also enter charges directl% in the credit card account register? 2ust as %ou do #ith checks'
>4TE

To enter a refund for a credit card charge? near the top of the .nter 4redit 4ard 4harges #indo#? choose the >efund(4redit option and then fill in the #indo#=s fields #ith info a!out the refund %ou received'

6aying <ith a 1e.it !ar


,a%ing #ith a de!it card is like #riting a check? !ecause the transaction removes mone% from %our !ank account' 5or that reason? %ou use the Jrite 4hecks #indo# to record de!it card transactions' In fact? %ou can also use the Jrite 4hecks #indo# to record electronic funds transfers' The onl% difference !et#een these transactions and regular checks is #hat %ou enter in the #indo#=s Bo' field' Instead of putting a check num!er in this field? %ou can use a code to identif% the t%pe of pa%ment' 5or e0ample? enter QB for a de!it card or .5T for electronic transactions like an online !ill pa%ment %ou make #ith %our !ank=s !ill*pa% service' If %ou have several de!it cards for %our !ank account? %ou ma% #ant to include the last four digits of the card num!er after the code so %ou can tell %our transactions from %our partner=s transactions' Qe!it card transactions are different from credit card charges? #hich is #h% %ou don=t use the .nter 4redit 4ard 4harges #indo# to record them' Qe!it card charges reduce the !alance in %our !ank account? #hich is a current asset account "page 2$? #hereas credit card charges increase the !alance in %our credit card account? #hich is a current lia!ilit% account "page 2$'

6aying <ith 6ay6al


,a%ing via ,a%,al is similar to pa%ing #ith a de!it card "descri!ed in the previous section$? e0cept that these pa%ments remove mone% from %our ,a%,al account? not %our checking account' The Jrite 4hecks #indo# #orks for recording ,a%,al e0pense pa%ments #ith a fe# small changes' Aere are the fields that #ork differentl% #hen %ou record ,a%,al pa%ments: V Bank *ccount@ Nour ,a%,al account is like a checking account: If %ou pa% for e0penses via ,a%,al? the pa%ment decreases %our ,a%,al account !alance' 8imilarl%? customer pa%ments increase %our ,a%,al account !alance' 5or those reasons? %ou create a !ank account "page 1$ in QuickBooks to represent %our ,a%,al account' Then? #hen %ou record a ,a%,al pa%ment in the Jrite 4hecks #indo#? simpl% choose the account %ou set up for ,a%,al in this drop*do#n list' That #a%? the check amount reduces %our ,a%,al account=s !alance' V >o@ Instead of putting a check num!er in this field? %ou can use a code like ,, to identif% this as a ,a%,al pa%ment? or simpl% leave it !lank'

5A$ING
T#6

,a%,al=s idios%ncrasies can make tracking transactions difficult' 5or e0ample? ,a%,al transactions might sho# up as pending for a fe# da%s !efore the% clear' :nd ,a%,al reports don=t present the info %ou need to reconcile %our account in the most helpful format' If %our ,a%,al account sees a lot of action? !oth in pa%ments %ou make as #ell as customer deposits? a third*part% program that do#nloads ,a%,al transactions into QuickBooks ma% !e the ans#er' <ne of the most popular is 8imple ,ort "###'simpleport'n et $'

U ING

M.TA<Q8

6aying <ith !ash


Qashing out to !u% an e0tension cord so %ou can present a pitch to a potential clientG 4hances are %ou=ll get mone% from the pett% cash dra#er at %our office' ,ett% cash is the common term for mone% spent on small purchases? t%picall% less than Y20' Man% companies keep a cash dra#er at the office and dole out dollars for small? compan%*related purchases that emplo%ees make' But for the small !usiness o#ner #ith a !ank card? getting pett% cash is as eas% as #ithdra#ing mone% from an :TM' .ither #a%? pett% cash is still compan% mone%? and that means %ou have to keep track of it and ho# it=s spent' The follo#ing sections e0plain ho#' RE!4R1#>) *TM ;#TH1R*;*2$ *>1 1E64$#T$ T4 6ETT8 !*$H Before %ou can pa% for something #ith pett% cash? %ou need to put some mone% into %our pett% cash dra#er' In QuickBooks? adding mone% to %our pett% cash account mirrors the real*#orld transaction: Nou either #rite a check made out to 4ash "or the trust#orth% emplo%ee #ho=s cashing the check$? or %ou #ithdra# mone% from an :TM' To #rite a check to #ithdra# cash for %our pett% cash account? simpl% use the Jrite 4hecks #indo# "choose BankingMJrite 4hecks or? on the Aome page? click the Jrite 4hecks icon$ to record the transaction' If %ou #ithdra# cash from an :TM? use the Transfer 5unds #indo# "choose BankingMTransfer 5unds$ instead' If creating transactions in an account register #indo# is <6 #ith %ou? here are the steps for replenishing %our pett% cash #ith a check: 1' #n the !hart of *ccounts <in o< K&ress !trlO* to o&en itL, ou.le9click your checking account to o&en its register <in o<@ QuickBooks selects the date in the first !lank transaction' Qepending on the date preference %ou choose "page I 4$? the program fills in either the current date or the last date %ou entered in a transaction' If %ou added mone% to pett% cash on a different da%? choose the correct date' 2' #f youBre <ith ra<ing 'oney fro' an *TM, in the >u'.er cell, either ty&e ATM or clear the value thatBs there@ If %ou=re #riting a check to get pett% cash and QuickBooks fills in the Bum!er cell #ith the correct check num!er? continue to the ,a%ee cell' <ther#ise? t%pe the correct check num!er in the cell' &' ;hether youBre <riting a check or <ith ra<ing 'oney fro' an *TM, in the 6ayee cell, ty&e a na'e such as !ash or 6etty !ash @ If %ou made a check out to one of %our emplo%ees? in the ,a%ee cell drop* do#n list? choose that person=s name'

5A$ING U ING
M.TA<Q8

4' In t%e 5*<3ent .e//+ t<2e t%e *3(1nt t%*t <(1&e 3(vin, ?&(3
account to &etty cash@ If %ou track classes in QuickBooks? this is one time to ignore the 4lass cell' Nou assign classes onl% #hen %ou record purchases made #ith pett% cash "as e0plained in the ne0t section$' ' #n the *ccount cell, choose your &etty cash account@ If %ou don=t alread% have a pett% cash account in %our chart of accounts? create the account here !% choosing _:dd Be#`? and then !e sure to choose the Bank account t%pe' That #a%? %our pett% cash account appears at the top of %our !alance sheet #ith %our other savings and checking accounts' I' !lick Recor to save the transaction@ That=s it]
T#6

If %ou make a #ithdra#al from an :TM to get pett% cash? use QuickBooks= Transfer Mone% feature "page &IE$ to record the transaction' In the Transfer 5unds 5rom !o0? choose %our !ank accountW in the Transfer 5unds To !o0? choose %our pett% cash account' RE!4R1#>) 6%R!H*$E$ M*1E ;#TH 6ETT8 !*$H :s long as compan% cash sits in a pett% cash dra#er or %our #allet? the pett% cash account in QuickBooks keeps track of it' But #hen %ou spend some of the pett% cash in %our #allet or an emplo%ee !rings in a sales receipt for purchases? %ou have to record #hat #as !ought' "The !o0 on page 20D e0plains ho# to track pett% cash if an emplo%ee #ants cash !efore the%=ve made a purchase'$ The pett% cash account=s register is as good a place as an% to record these purchases' In the 4hart of :ccounts #indo#? dou!le*click the pett% cash account to open its register #indo#' Then? in a !lank transaction? follo# these guidelines to record %our pett% cash e0penditures: V >u'.er cell@ :lthough pett% cash e0penditures don=t use check num!ers? QuickBooks automaticall% puts the ne0t check num!er in this cell an%#a%' The easiest thing to do is ignore the num!er and move on to the ,a%ee cell' V 6ayee cell@ Nou don=t have to enter an%thing here? and for man% pett% cash transactions? entering a ,a%ee #ould 2ust clog %our list of names? so leave this cell !lank' V Me'o cell@ T%pe the vendor=s name or details of the purchase here' V 6ay'ent cell@ .nter the amount that #as spent' V *ccount cell@ 4hoose an account like <ffice 8upplies to track the e0pense'
T#6

To distri!ute the pett% cash spent to several accounts? click 8plits' In the ta!le that appears? specif% the account? amount? customer or 2o!? class? and a memo for each split "page &II$'

>.4<>QIB@ L.BQ<> >.5;BQ8 :BQ 4>.QIT8


;4R:*R4%>1 ;4R:$H46

,ett% 4ash :dvances


@ood management practices #arn against dishing out pett% cash #ithout a receipt' But suppose an emplo%ee asks for cash in advance to purchase a ne# lava lamp for the conference roomG There=s no receipt? !ut %ou reall% #ant the lava lamp to impress the 4.< of a tie*d%e compan%' The solution in the real #orld is to #rite a paper I<; and place it in the pett% cash dra#er until the emplo%ee coughs up a receipt' In QuickBooks? record the advance as if the purchase #ere alread% complete' 5or the lava lamp? create the transac* tion in an account register using entries like these: V In the ,a%ee cell? t%pe the name of the vendor %ou=re purchasing from' V In the :mount cell? t %pe the amount of mone% %ou advanced to the emplo%ee' V In the :ccount cell? choose the account that corresponds #ith the e0pense? such as <ffice 8upplies' V In the Memo cell? t%pe a note a!out the emplo%ee #ho received the advance? the I<; in the pett% cash dra#er? and #hat the advance is for' Jhen the emplo%ee comes !ack #ith a receipt? %ou can update the transaction=s Memo cell to sho# that the I<; has !een repaid' If the emplo%ee !rings change !ack? create a deposit to put that mone% !ack in the pett% cash account using the same pa%ee and account as the original #ithdra#al transaction'

>ecording Lendor >efunds and 4redits


8a% %ou ordered &0 doKen light#eight pol%prop%lene T*shirts for %our summer Qeath Lalle% marathon? !ut %our vendor mistakenl% silk*screened the logo on long* sleeved cotton T*shirts heav% enough to survive a nuclear !last' If %ou raise a ruckus? the vendor ma% issue %ou a refund check or a credit' .ither #a%? it=s eas% to record the mone% %ou get !ack in QuickBooks' Aere=s ho# to deposit a vendor=s refund check or credit card refund: 1' #n the Ho'e &ageBs Banking &anel, click Recor BankingMMake 1e&osits@ 1e&osits, or choose

2' #f the G6ay'ents to 1e&ositH <in o< a&&ears, turn on the check'ark cell for each &ay'ent you <ant to e&osit along <ith the refun check@ Then click 4: to o&en the Make 1e&osits <in o<@ The +,a%ments to Qeposit/ #indo# opens onl% if %ou have other deposits to make' &' #n the Make 1e&osits <in o<Bs 1e&osit To ro&9 o<n list, choose a .ank account@ If %ou selected other deposits in the +,a%ments to Qeposit/ #indo# in the previous step? the% appear in the ta!le'

.R,.B8.* >.P:T.Q >.,<>T8

RUNNIN

4' #n the first .lank Receive Fro' cell, choose the ven or <ho issue refun check@

the

Nou can choose a customer? emplo%ee? or other name if the check isn=t from a vendor' ' #n the Fro' *ccount cell, choose the account associate <ith the refun @ 5or a refund for shirts %ou purchased? %ou might choose a cost of goods sold account that %ou use for products %ou !u% specificall% for a customer' If the refund is for office supplies? choose the e0pense account for office supplies' I' Fill in the other fiel s an then click $ave A !lose@ .nter a note a!out the refund "in the Memo cell$? the check num!er "if %ou re* ceived a refund check$? the pa%ment method "to indicate #hether %ou received a refund check or a credit card refund$? and the amount of the refund' If the vendor insists on issuing %ou a credit #ith its compan% instead of a refund check? here=s ho# to record that credit in QuickBooks: 1' #n the Ho'e &ageBs /en ors &anel, click Enter Bills, or choose /en orsMEnter Bills@ QuickBooks opens the .nter Bills #indo# as if %ou=re going to enter a !ill' 2' -ust .elo< the <in o<Bs ri..on, choose the !re it o&tion@ QuickBooks changes the giant heading in the #indo# to 4redit and the :mount Que la!el to 4redit :mount' The other fields sta% the same' &' 4n the E"&enses an #te's ta.s, fill in the cells <ith the ite's for <hich you receive cre it@ .nter positive num!ers 2ust as %ou did #hen %ou entered the original !ill' Quick* Books takes care of posting the credit amounts to %our accounts' Nour inventor% account decreases due to the inventor% items %ou returned? and %our e0pense accounts= !alances decrease due to e0pense credits' The total credit amount also reduces the !alance in %our :ccounts ,a%a!le account' 4' !lick $ave A !lose@ That=s it] "8ee page 1C1 to learn ho# to appl% a credit'$

>unning .0pense*>elated >eports


QuickBooks= Lendors - ,a%a!les reports tell %ou ho# much %ou o#e each vendor and #hen the pa%ments are due' The reports in the program=s ,urchases categor%? on the other hand? focus on ho# much %ou=ve !ought from each vendor %ou #ork #ith' This section tells %ou ho# to put the reports in these t#o categories to #ork'

20F

QUICKBOOKs 2014: tHe MIssInG

*J6 *ging an /en or Balance Re&orts


If %our compan% is flush #ith cash and %ou pa% !ills as soon as the% appear in the ,a% Bills #indo#? %our :(, :ging reports and Lendor Balance reports #ill contain mostl% Keroes' If %ou #ant an overvie# of ho# much %ou o#e each vendor and ho# much is overdue? use one of the follo#ing reports listed under >eportsMLendors - ,a%a!les: V *J6 *ging $u''ary@ This report sho#s all the vendors %ou o#e mone% to and ho# old %our !alances are for each one' Qou!le*click a value to see a report of the transactions that produced the amount o#ed'

RUNNIN G >.P:T.Q
>.,<>T8

V *J6 *ging 1etail@ >un this report to see each unpaid !ill sorted !% its !illing date and grouped into !ills that are current? 1 to &0 da%s overdue? &1 to I0 da%s overdue? I1 to C0 da%s overdue? and more than C0 da%s late' V /en or Balance 1etail@ This report sho#s %our !ills and pa%ments grouped !% vendor'
T#6

Nou can also see the details of a vendor=s !alance in the Lendor 4enter: 8elect the vendor on the Lendor=s ta! and then? on the right side of the #indo#? click the <pen Balance link' V %n&ai Bills 1etail@ If %ou #ant to evaluate all %our unpaid !ills !efore %ou pa% them? this report is helpful !ecause it displa%s the !ills due up to the current date? grouped !% vendor' To include !ills due in the future? in the report #indo#=s Qates !o0? choose :ll' If %ou #ant to inspect a !ill more closel%? dou!le*click an%#here in its ro#? and the .nter Bills #indo# opens #ith the !ill=s details' "Nou can also run this report from the .nter Bills #indo#: 4lick the >eports ta! at the top of the #indo# and then click the ;npaid Bills Qetail icon'$

CHA5teR 9: 5A$ING !OR

209

!H*6TER

10 Invoicing

elling %our customers ho# much the% o#e %ou and ho# soon the% need to pa% is an important step in accounting' :fter all? if mone% isn=t flo#ing into %our organiKation from outside sources? eventuall% %ou=ll close up shop and close %our QuickBooks compan% file for the last time' :lthough !usinesses use several different sales forms to !ill customers? the invoice is the most popular? and? unsurprisingl%? customer !illing is often called invoicing' This chapter !egins !% e0plaining the differences !et#een invoices? statements? and sales receiptsUeach of #hich is a #a% of !illing customers in QuickBooksUand #hen each is most appropriate' :fter that? %ou=ll learn ho# to fill in invoice forms in QuickBooks? #hether %ou=re invoicing for services? products? or !oth' If %ou send invoices for the same items to man% of %our customers "and don=t use the program=s multiple currencies feature$? QuickBooks= !atch invoice feature can help: Nou select the customers? add the items %ou #ant on the invoices? and the program creates all the invoices for %ou' If %ou track !illa!le hours and reim!ursa!le e0penses #ith QuickBooks? %ou can also have the program chuck those charges into the invoices %ou create' 5inall%? %ou=ll find out ho# to handle a fe# special !illing situations? like creating invoices #hen products %ou sell are on !ackorder' Nou=ll also learn ho# to create estimates for 2o!s and then use them to generate invoices as %ou perform the #ork' :nd? since %ou occasionall% have to give mone% !ack to customers "like #hen the% return the lime*green pol%ester leisure suits that suddenl% #ent out of st%le$? %ou=ll learn ho# to assign a credit to a customer=s account? #hich %ou can then deduct from an e0isting invoice? refund !% cutting a refund check? or appl% to the customer=s ne0t invoice'

21

4A<<8IB@ TA. >I@AT TN,. <5 5<>M

>4TE

4hapter 11 continues the invoicing lesson that starts #ith this chapter !% teaching %ou ho# to produce statements that sho# %our customers= account status' It also e0plains ho# to create sales receipts #hen customers pa% %ou right a#a%' 4hapter 12 e0plains ho# to get an% kind of sales form into %our customers= hands? along #ith a fe# other timesaving techni)ues? like finding transactions and memoriKing them for reuse'

4hoosing the >ight T%pe of 5orm


In QuickBooks? %ou can choose from three different sales forms to document #hat %ou sell? and each form has strengths and limitations' Invoices can handle an% !ill* ing task %ou can think of? so the%=re the !est choice if %ou have an% dou!ts a!out #hich one to use' Ta!le 10*1 summariKes #hat each sales form can do' The sections that follo# e0plain the forms= capa!ilities in detail and give guidance on #hen to choose each one'
T*B2E 1091 Jhat each QuickBooks sales form can do *!T#4> Track customer pa%ments and !alances :ccept pa%ments in advance :ccumulate some charges !efore sending sales form 4ollect pa%ment in full at time of sale 4reate summar% sales transaction :ppl% sales ta0 :ppl% percentage discounts ;se @roup items to add charges to form :dd long descriptions for items 8u!total items Include customer message Include custom fields on form R R R R R R R R R R R $*2E$ RE!E#6T $T*TEME>T R R R R R #>/4#!E R R R R R R R R R R R R

>4TE

QuickBooks ,remier and .nterprise editions include one more t%pe of sales form: the sales order' In those editions? #hen %ou create a sales order for the products that a customer #ants to !u%? %ou can create an invoice for the items that are in stock and keep track of out*of*stock items that %ou=ll need to send to %our customer #hen a ne# shipment arrives "page 2 4$'

$ales Recei&ts
The sales receipt is the simplest sales form that QuickBooks offers? and it=s also the shortest path !et#een making a sale and having mone% in the !ank "at least in QuickBooks$' But this form is suita!le onl% if %our customers pa% the full amount at the time of the saleUfor e0ample? in a retail store? restaurant? or !eaut% salon' Ao#ever? %ou can accumulate charges for time "page 1II$ and !illa!le e0penses "page 1DC$ and then add them to a sales receipt' But for products %ou sell? sales receipts handle onl% pa%ment in full' Jhen %ou create and save a sales receipt in QuickBooks? the program immediatel% posts the mone% %ou receive to the ;ndeposited 5unds account or to the !ank ac* count %ou choose' :s %ou=ll learn in this chapter and the ne0t? invoices and statements take several steps to move from !illing to !ank deposits? so ease of depositing is one advantage of sales receipts over those other sales forms' 8ales receipts can handle sales ta0? discounts? and su!totalsUor an% other item in %our Item Pist' But #hen %ou operate a cash !usiness? creating a sales receipt in QuickBooks for each ne#spaper and pack of gum %our ne#sstand sells is not good use of %our time' Instead? consider creating a sales receipt that summariKes a da%=s or a #eek=s sales "page &4&$? using a customer named 4ash 8ales that %ou create specificall% for that purpose'

CHOO ING

>I@AT TN,. <5 5<>M

$tate'ents
8uppose %ou=re a la#%er and %ou spend 1 minutes here and 1 minutes there #ork* ing on a client=s legal pro!lem over the course of a month' .ach time %ou do so? that=s another charge to the client=s account' In QuickBooks? each of those charges is called a statement charge' Nou can enter them individuall% "page 2DE$ or? if %ou track time in QuickBooks? %ou can add %our time to an invoice 2ust as easil%? as descri!ed on page 24 ' Businesses often turn to statements #hen the% charge the same amount each month? such as a fi0ed monthl% fee for Internet service or full*time #ork as a con* tract programmer' :lthough statements #ork for these fi0ed fees? %ou can also use memoriKed invoices "page &04$ and QuickBooks= !atch invoice feature "page 2&I$ to do the same thing 2ust as easil%' Jhere statements reall% shine is summariKing a customer=s account' Behind the scenes? a statement adds up all the transactions that affect the customer=s open !alance over a period of time? #hich includes statement charges? pa%ments? and invoices' The statement sho#s the customer=s previous !alance? an% pa%ments that the customer has made? an% invoices that the% haven=t paid? and an% ne# charges on the account' 5rom all that information? QuickBooks calculates the total and displa%s it on the statement? so %ou kno# ho# much mone% is outstanding and #hether it=s overdue'

CHA5teR 10:

21#

5<>M8 :BQ :44<;BT8

ACE

>4TE

:lthough statements can track customer pa%ments and !alances? the% can=t handle the follo#ing !illing tasks: V Tracking sales ta0 V ;sing @roup items to add several items V :ccepting multi*paragraph descriptions of services or products V 8u!totaling items V :ppl%ing percentage discounts to items sold V Including a message to the customer V Including custom fields V 8ummariKing the services and products sold "on statements? each service or product %ou sell appears as a separate statement charge$

#nvoices
If statements or sales receipts don=t #ork for %our situation? don=t !e afraid to use invoices' The% accept an% item %ou=ve created in %our Item Pist "see 4hapter $ and the% track #hat customers o#e %ou' Besides offering the features listed in Ta!le 10*1? an invoice is the onl% t%pe of QuickBooks sales form %ou can generate from an estimate "page 2I $' If %ou=re a general contractor and prepare a detailed estimate of the services and products for a 2o!? %ou=ll save a huge chunk of time !% turning that estimate into an invoice for !illing' :nd if %ou have to refund some of %our customer=s mone%? %ou can also turn an invoice into a credit memo "page 2IE$'

8ales 5orms and :ccounts


:n invoice or other sales form is the first step in the flo# of mone% through %our compan%? so no# is a good time to look at ho# QuickBooks posts income and e0* penses from %our invoices to the accounts in %our chart of accounts' 8uppose %our invoice has the entries sho#n in 5igure 10*1' Ta!le 10*2 sho#s ho# the amounts on that invoice post to accounts in %our chart of accounts'
>4TE

The lines on the invoice in 5igure 10*1 don=t sho# all the movements !et#een accounts listed in Ta!le 10*2' Behind the scenes? QuickBooks transfers mone% to %our cost of goods sold and inventor% accounts' Aere=s #h% the amounts post the #a% the% do: V Nou sold Y ?000 of services and Y4CC'D of products? #hich is income' The income values appear as credits to %our 8ervices Income and ,roduct >evenue accounts to increase %our income !ecause %ou sold something' In this e0ample?

214

QUICKBOOKs 2014: tHe MIssInG

the discount is in an income account? so the discount is in the Qe!it column to reduce %our income'

5<>M8 :BQ :44<;BT8

ACE

F i )%RE 109 1

If %ou=re still getting used to dou!le*entr% account* ing? !alancing the de!it and credit amounts for an invoice is a !rainteaser' 5or e0ample? the items for services and products on the invoice sho#n here turn up as credits in %our income accounts? as in Ta!le 10*2' The discount reduces %our income? so it=s a de!it to the 8ales Qiscounts income account' :lthough the de!its and credits appear in different accounts? the total de!it must e)ual the total credit'

T*B2E 1092 Qe!its and credits have to !alance *!!4%>T :ccounts >eceiva!le 8ervices >evenue ,roduct >evenue 8ales Qiscounts 8ales Ta0 ,a%a!le 8hipping income 4ost of @oods 8old Inventor% Total 5,722@01 24C'DE 24C'DE 5,722@01 D 0'00 &D'4E & '00 1EB#T 4?E22'2& ?000'00 4CC'D !RE1#T

4>.:TIB@ IBL<I4.8

V The Y&D'4E of sales ta0 %ou collect is a credit to the 8ales Ta0 ,a%a!le account' V The shipping charge "Y& '00$ is a credit in %our shipping income account to sho# #hat %ou charged for shipping' V :ll those credits need to !alance against a de!it' Because %our customer o#es %ou mone%? the amount o#ed "Y4?E22'2&$ !elongs in the :ccounts >eceiva!le account? indicated !% the de!it'

V Nou also sold some products from inventor%' Nou credit the Inventor% account #ith the cost of the products? Y24C'DE? #hich decreases the Inventor% account=s !alance' Nou offset that credit #ith a de!it for the same amount to the 4ost of @oods 8old account? #hich is an income statement account'

4reating Invoices
Qepending on #hich edition of QuickBooks %ou use? %ou have up to three features for creating invoices: V !reate #nvoices can handle ever%thing %ou thro# at it: services? products? !ill* a!le time? and !illa!le e0penses' It=s availa!le in QuickBooks ,ro and higher' V !reate Batch #nvoices "page 2&I$ lets %ou select all the customers to #hich %ou #ant to send the same invoice "that is? the same items and the same amounts$' If %ou send the same invoice to the same customers all the time? %ou can set up a !illing group for those customers and? from then on? simpl% choose the group' :fter %ou create the invoice? %ou can print or email it to the customers in the list' This feature is availa!le in QuickBooks ,ro and higher? as long as %ou don=t use multiple currencies'

V #nvoice for Ti'e A E"&enses, availa!le onl% in QuickBooks ,remier and .nter* prise editions? can do ever%thing that the 4reate Invoices feature can do? !ut it=s a real time*saver #hen %ou invoice for !illa!le time and e0penses' :s %ou=ll learn on page 24I? %ou specif% a date range and QuickBooks sho#s %ou all the customers #ho have !illa!le time and e0penses during that period' Jhen %ou choose a customer or 2o! and tell the program to create an invoice? it opens the 4reate Invoices #indo#? fills in the usual fields? and fills the invoice ta!le #ith the customer=s !illa!le time and e0penses' <nce %ou=re in the 4reate Invoices #indo#? %ou can add an% other items %ou #ant? like products %ou sold or dis* counts %ou=re offering' This feature also lets %ou create !atch invoices for time and e0penses "page 24E$' Invoices tell %our customers ever%thing the% need to kno# a!out #hat the% pur* chased and #hat the% o#e %ou' If %ou created customers and 2o!s #ith settings such as pa%ment terms? ta0 item? and sales rep "page D1$? as soon as %ou choose a customer and 2o! in the 4reate Invoices #indo#=s 4ustomer:Oo! field? QuickBooks fills in man% of the fields for %ou'

8ome invoice fields are more influential than others? !ut the% all come in hand% at some point' To understand the purpose of the fields on an invoice more easil%? %ou can !reak the form up into three !asic parts "see 5igure 10*2$' Because the invoices %ou create for product sales include a fe# more fields than the ones for services onl%? the follo#ing sections use a product invoice to e0plain ho# to fill in each field %ou might run into on the invoices %ou create' These sections also tell %ou #hat to do if the information that QuickBooks fills in for %ou is incorrect'

4>.:TIB@ IBL<I4.8

F i )%RE 109 2

The top of the invoice has overall sale information? such as the customer and 2o!? the invoice date? #ho to !ill and ship to? and the pa%ment terms' The ta!le in the middle has info a!out the products and services sold? and other items? such as su!totals and discounts' Belo# the ta!le? QuickBooks fills in the Ta0 field and the 4ustomer Ta0 4ode field #ith values from the customer=s record? !ut %ou can change an% values that the program fills in' Nou can also add a message to the customer? choose %our send method? or t%pe a memo to store in %our QuickBooks file'

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If %ou charge customers !ased on the progress %ou=ve made on a pro2ect? invoices are a little more complicated? !ut %ou=ll learn ho# to handle this situation on page 2I4'

!reating an #nvoice
In the sections that follo#? %ou=ll find details a!out filling in all the fields on an invoice' "The !o0 on page 21C descri!es some of the #a%s nonprofit invoicing differs from for*profit invoicing'$ 5or no#? here=s the !asic procedure for creating and saving one or more invoices !% using the 4reate Invoices feature: 1' 6ress !trlO#M in the Ho'e &ageBs !usto'ers &anel, click the !reate #nvoices iconM or, in the !usto'er !enter tool.ar, choose >e< TransactionsM#nvoices@

IBL<I4.8

isn=t turned on? clicking the Aome page=s 4reate Invoices icon opens the 4reate Invoices #indo# immediatel%' If %ou use QuickBooks ,remier or .nterprise and %ou=ve turned on the preference to invoice for time and e0penses "page ID2$? the Aome page displa%s the Invoices icon instead of the 4reate Invoices icon' 4licking Invoices displa%s a shortcut menu #ith t#o entries: +Invoice for Time - .0penses/ and 4reate Invoices' 4hoose 4reate Invoices to create a regular invoice' 8ee page 24I to learn ho# to use the shortcut menu=s other entr% to invoice for !illa!le time and e0penses' 2' #n the !reate #nvoices <in o<Bs !usto'er:-o. .o", choose the custo'er or Io. associate <ith the invoice@ Jhen %ou pick a customer or 2o!? QuickBooks fills in man% of the invoice fields #ith values from the customer=s record "see page D1$? the 2o!=s record if %ou selected a 2o! "page DI$? and preferences %ou set "page DC$' 5or e0ample? QuickBooks pulls the data for the Bill To address? Terms? and >ep fields from the customer=s or 2o!=s record' :nd %our 8ales - 4ustomers preferences "page III$ provide the values for the Lia and 5'<'B' fields' "5<B stands for +free on !oard?/ #hich is the ph%sical point #here the customer !ecomes responsi!le for damage to or loss of the shipment'$
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Qepending on the QuickBooks edition %ou use and transactions %ou=ve entered? a fe# other #indo#s ma% open #hen %ou choose a customer or 2o!' If the customer or 2o! %ou selected has an availa!le estimate? the :vaila!le .stimates dialog !o0 opens so %ou can fill in the invoice simpl% !% selecting an estimate and clicking <6' If %ou use QuickBooks ,remier and there=s an outstanding sales order "page 2 4$? the :vaila!le 8ales <rder #indo# appears so %ou can select the one %ou #ant to invoice' In QuickBooks ,remier? if the preference for invoicing time and e0penses is turned on and the customer or 2o! has associated time or e0penses? the Billa!le Time(4osts dialog !o0 opens #ith the +8elect the outstanding !illa!le time and costs to add to this invoice/ option selected' If %ou don=t #ant to add the time and e0penses to this invoice? select the option #hose la!el !egins #ith +.0clude?/ and then click <6' "To learn more a!out invoicing for time and e0penses? see page 24 '$ &' For each &ro uct or service you sol , in the line9ite' ta.le, enter the info for the ite', inclu ing its ?uantity an &rice Kor rateL@ If %ou #ant? %ou can also fill in the !o0es !elo# the line*item ta!le? such as 4ustomer Message and Memo' If %ou=ve signed up for online pa%ments "page D2$? %ou can choose #hether to include an online pa%ment link on the invoice %ou send' :nd %ou=ll rarel% need to change the sales ta0 rate associated #ith the customer? !ut %ou can if necessar%' 4' Maintain your &rofessional i'age .y checking for s&elling errors .efore you sen the invoice@ To run QuickBooks= spell*checker? at the top of the 4reate Invoices #indo#? click the 5ormatting ta!? and then click 8pelling' "If %ou checked spelling #hen

% o u

rors #ill !e edits %ou=ve made to item descriptions'$ If the spell*checker doesn=t #ork the #a% %ou #ant? then change %our 8pelling preferences "page ID2$' ' To save the invoice you Iust create an close the !reate #nvoices <in o<, click $ave A !lose@ If %ou=re unhapp% #ith the choices %ou made in the current invoice? click 4lear to start over #ith a fresh? !lank invoice' If %ou have additional invoices to create? click 8ave - Be# to save the current invoice and !egin another'
>4TE

IBL<I4.8

If %ou create or modif% an invoice and then click the ,rint icon in the 4reate Invoices #indo#=s Main ta!? QuickBooks saves the invoice !efore printing it? #hich helps prevent financial hank%*pank%'

*2TER>*TE RE*2#T#E$

Invoicing for Bonprofits


If %ou sell products and services? then %ou create invoices #hen someone !u%s something' 5or nonprofits? ho#ever? invoices can record the pledges? donations? grants? or other contri!u* tions %ou=ve !een promised' Invoicing for nonprofits differs from the profit #orld=s ap* proach' 5irst of all? man% nonprofits don=t send invoices to donors' Bonprofits might send reminders to donors #ho haven=t sent in the pledged donations? !ut the% don=t add finance charges to late pa%ments' Moreover? !ecause some donors ask for specific t%pes of reports? nonprofits often use several :ccounts >eceiva!le accounts to track mone% coming from grants? dues? pledges? and other sources' Jhen %ou have multiple :ccounts >eceiv* a!le accounts? the 4reate Invoices #indo# includes an :ccount

field so %ou can choose the appropriate :ccounts >eceiva!le account " 2ust like #hen %ou #ork #ith multiple currencies? as descri!ed in the Bote on page 224$' 5or e0ample? #hen %ou create an invoice for pledges? %ou=d choose the ,ledges >eceiva!le account' To compensate for this additional field? QuickBooks provides a hand% feature #hen %ou use multiple :ccounts >eceiva!le accounts: The program remem!ers the last invoice num!er used for each one in %our QuickBooks 4hart of :ccounts? so %ou can create uni)ue invoice num!ering schemes for each of them' 5or e0ample? if %ou create an invoice for the ,ledges >eceiva!le account and set the Invoice a field to +,P* 100?/ QuickBooks automaticall% assigns invoice num!er +,P*101/ to the ne0t invoice %ou create for that account'

Filling

in

# n v o i c e H e a e r F i e l s
I f % o u f i l l i n a l l t h e f

ields in %our customer and 2o! records "see 4hapter 4$? QuickBooks takes care of filling in most of the fields in the header section of invoices' Aere=s #hat the header fields do and #here QuickBooks gets the values it fills in automaticall%' !H44$#>) THE !%$T4MER 4R -4B The selection %ou make in the 4ustomer:Oo! field "sho#n in 5igure 10*&$ is %our most important choice for an% invoice' In addition to !illing the correct customer for %our #ork? QuickBooks uses the settings from the customer=s or 2o!=s record to fill in man% of the invoice=s fields'

IBL<I4.8

F i )%RE 109(

If %ou #ork on different 2o!s for a customer? click the name of the 2o!? #hich is indented underneath the customer=s name' If %our #ork for a customer doesn=t relate to 2o!s? 2ust click the customer=s name' The column to the right of the customer and 2o! names provides another #a% to differenti* ate customers and 2o!s: It displa%s +4ustomer:Oo!/ for a customer entr%? and +Oo!/ for a 2o! entr%'

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If %ou=ve turned on the preference for multiple currencies? the last column in the 4ustomer:Oo! drop* do#n list sho#s the customer=s currenc% "as sho#n in 5igure 10*&$' <nce %ou select a customer or 2o!? the panel on the right side of the 4reate Invoices #indo# sho#s a summar% of the customer=s account and its recent transactions "5igure 10*4$' The 4ustomer ta! displa%s the customer=s open !alance and the credit limit %ou=ve set for that customer so %ou can see #hether the ne# invoice e0ceeds that limit' Nou can also revie# recent transactions to check #hether pa%ments have come in !efore %ou send an invoice for finance charges' :n% notes that %ou=ve entered for the customer appear at the !ottom of the panel' 4lick the arro# at the panel=s top left to e0pand or collapse it'

CREATIN

Q1i.0B((0s &e3e3;e&s =%i.% te32/*te <(1 .%(se =%en <(1 IBL<I4.8

F i )%RE 1094

If %ou spot an% errors in the customer=s informa* tion? click the .dit !utton "the pencil icon$ to open the customer=s record in the .dit 4ustomer #indo#' 4lick the open !alance value to generate a 4ustomer <pen Balance report that sho#s the transactions that contri!ute to the open !alance' To inspect an% of the recent transactions? click the !lue te0t to open the corresponding #indo#? such as >eceive ,a%ments'

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The right*hand panel=s Transaction ta! sho#s information a!out the transaction that=s currentl% displa%ed in the 4reate Invoices #indo#' The ta!=s 8ummar% section sho#s #ho created and edited the transac* tion and #hen' If there are related transactions? such as a pa%ment or credit memo? the% appear in the >elated Transactions section' !H44$#>) *> #>/4#!E TEM62*TE The option %ou choose in the Template drop*do#n list near the top right of the 4reate Invoices #indo# determines #hich fields appear on %our invoices and ho# the%=re laid out' 5or e0ample? %ou might use t#o templates: one for printing on %our compan% letterhead and one for invoices %ou send electronicall%' 4hoosing a template !efore doing an%thing else is the !est #a% to prevent printing the #rong invoice on e0pensive stationer%'

IBL<I4.8

CREATIN
invoice' 8o if %ou use onl% one invoice template? choose it on %our first invoice and the program chooses it for %ou from then on' But if %ou s#itch !et#een invoices? !e sure to select the correct template for the invoice %ou=re creating'
>4TE

Templates aren=t linked to customers' If %ou pick a template #hen %ou create an invoice for one customer? QuickBooks chooses that same template for %our ne0t invoice? regardless of #hich customer it=s for' Nou can s#itch templates an%time' Jhen %ou choose a template? the 4reate Invoices #indo# displa%s the appropriate fields and la%out' If %ou=ve alread% filled in an invoice? changing the template doesn=t thro# out the dataW QuickBooks simpl% displa%s it in the ne# template' Ao#ever? QuickBooks #on=t displa% settings like %our compan% logo? fonts? and other formatting until %ou print or previe# the invoice "page 2& $' Man% small companies are perfectl% happ% #ith the invoice templates that Quick* Books provides' Jhen %ou create %our first invoice? %ou might not even think a!out the la%out of the fields' But if %ou run across a !illing task that the current template can=t handle? don=t panic: Nou can choose from several !uilt*in templates' :nd if %ou #ant %our invoices to reflect %our compan%=s st%le and image? %ou can create %our o#n custom templates "see page D11$' The options %ou see in the Template drop*do#n list depend on the QuickBooks edition %ou use' Before %ou accept the template that QuickBooks chooses? in the Template drop*do#n list? )uickl% select and revie# the templates to see #hether %ou like an% of them !etter' Aere are a fe# of the more popular !uilt*in templates: V #ntuit 6ro uct #nvoice@ If %ou sell products #ith or #ithout services? this tem* plate is set up to sho# information like the )uantit%? item code? price for each item? total charge for each item? sales ta0? and shipping infoUincluding the ship date? shipping method? and 5<B' V #ntuit $ervice #nvoice@ This template doesn=t !other #ith shipping fields !ecause services are performed? not shipped' It includes fields for the item? description? )uantit%? rate? amount? ta0? and purchase order num!er' #ntuit 6rofessional #nvoice@ The onl% difference !et#een this template and the Intuit 8ervice Invoice is that this one doesn=t include a ,'<' Bum!er field? and the )uantit% "Qt%$ column follo#s the Qescription column'

V 6rogress #nvoice@ If %ou !ill customers !ased on the progress %ou=ve made on their 2o!s? use this template? #hich has columns for %our estimates? prior charges? and ne# totals' It appears in the Template drop*do#n list onl% if %ou turn on the preference for progress invoicing "see page I C$'
>4TE

The Intuit ,acking 8lip template is included in the Template drop*do#n list even though it isn=t an invoice template' It=s listed !ecause? #hen %ou ship products to customers? %ou can print an invoice and packing slip from the 4reate Invoices #indo# "see page 2C $'

CREATIN
invoice sho#s onl% the total charge' It includes fields for the date? item? descrip* tion? ta0? and purchase order num!er' V Ti'e A E"&ense #nvoice@ If %ou !ill customers !% the hour? this template is the one to use' It includes a column for hours and hourl% rate? and it calculates the resulting total' "The :ttorne%=s Invoice template is identical to this one e0cept in name'$ THE 4THER HE*1ER F#E21$ :s 5igure 10* sho#s? QuickBooks can fill in most of the remaining header fields for %ou' :lthough the follo#ing fields don=t appear on ever% invoice template? here=s ho# to fill in an% empt% fields or change the ones that QuickBooks didn=t complete the #a% %ou #ant: V !lass@ If %ou turned on the class*tracking feature "page I40$ to categoriKe %our income and e0penses in different #a%s? choose a class for the invoice' If %ou skip this !o0 and have the class reminder preference set? QuickBooks tells %ou that the !o0 is empt% #hen %ou tr% to save the invoice' :lthough %ou can save the invoice #ithout a class if classes don=t appl% to the transaction? it=s important to assign classes to ever% class*related transaction if %ou #ant %our class*!ased reports to !e accurate' 5or e0ample? if %ou use classes to track income !% partner and save an invoice #ithout a class? the partner #ho delivered the services on the invoice might complain a!out the siKe of her pa%check'

IBL<I4.8

F i )%RE 1095

:fter %ou choose a customer? if %ou=ve as* signed a price level to that customer=s record "page D2$? the name of the price level appears in !rackets !elo# the 4ustomer:Oo! la!el' Nou can change the customer=s price level !% editing the customer=s record "page E1$? or %ou can choose e0isting price levels to change the price %ou charge as %ou add items to the invoice "see the !o0 on page 2 4$'

IBL<I4.8

If %ou #ork #ith multiple currencies and the customer is set up to use a currenc% other than %our home one? then at the top of the 4reate Invoices #indo#? the :ccount !o0 appears and sho#s the :ccounts >eceiva!le ":>$ account for the invoice=s income' QuickBooks creates an additional :ccounts >eceiva!le account "page 2$ for a currenc%? such as :ccount >eceiva!le*.;>? #hen %ou assign that currenc% to the first ne# customer that uses it and then save the customer record' V 1ate@ <ut of the !o0? QuickBooks fills in the current date here? #hich is fine if %ou create invoices #hen %ou make a sale' But service !usinesses often send invoices on a scheduleUthe last da% of the month is a popular choice' If %ou #ant to get a head start on %our invoices? %ou can change %our QuickBooks preferences so the program uses the same date for ever% su!se)uent invoice "until %ou change the date$? making %our end*of*month invoicing a tin% !it easier' ,age I12 tells %ou ho#' V #nvoice C@ Jhen %ou create %our first invoice? t%pe the num!er that %ou #ant to start #ith' 5or e0ample? if %ou=d rather not reveal that this is %our first invoice? t%pe a num!er such as 24 ' Then? each time %ou create a ne# invoice? Quick* Books increases the num!er in this field !% one: 24I? 24D? and so on'
T#6

>4TE

,ress the plus "T$ or minus "X$ ke% to increase or decrease the invoice num!er !% one' Jhen %ou save the current invoice? QuickBooks considers its invoice num!er the starting point for su!se)uent num!ers' If %our last invoice #as a mistake? the !est thing to do is to void it "page &2 $' If %ou delete it instead? %ou=ll end up #ith a gap in %our invoice num!ers' 5or e0ample? #hen %ou delete invoice num!er 20&? QuickBooks has alread% set the ne0t invoice num!er to 204' 8o? if %ou notice the gap? in the Invoice a !o0? t%pe the num!er %ou #ant to use to get QuickBooks !ack on track? and void incorrect invoices from no# on' V Bill To@ This field is essential if %ou mail invoices' Jhen the customer record includes a !illing address "page IC$? QuickBooks puts that address in this field' If %ou email invoices? a !illing address isn=t necessar%Uthe customer name in this field simpl% identifies the customer on the emailed form' V $hi& To@ If %ou sell services? %ou don=t need an address to ship to' But if %ou sell products? %ou need a shipping address to send the products to %our customer' Jhen %ou use a template like Intuit ,roduct Invoice? QuickBooks puts the ship* ping address from the customer=s record in this field' If %ou create additional shipping addresses "for instance? for different office locations$? click the do#n arro# to the right of the 8hip To drop*do#n list and choose the address %ou #ant'

V 6@4@ >u'.er@ If %our customer issued a purchase order for the goods and ser* vices on %our invoice? t%pe that purchase order num!er here'

CREATIN %ou then use those terms for ever% invoice' Jhen the customer=s record G

IBL<I4.8

includes pa%ment terms "page D1$? QuickBooks uses them to fill in this field' Ao#ever? if %ou decide to change the termsUperhaps due to the customer=s failing financial strengthUchoose a different term here? such as +Que on receipt'/

>4TE

If QuickBooks fills in fields #ith incorrect values? make the corrections on the invoice' Jhen %ou save the invoice? QuickBooks asks if %ou=d like the ne# values to appear the ne0t time? as sho#n in 5igure 10*I'

F i )%RE 1090

If %ou click Nes here? QuickBooks changes the corresponding fields in the customer and 2o! records' If %ou click Bo? it changes the values onl% on this particular invoice'

Re&@ If %ou assigned a sales rep in the customer=s record "page D&$? QuickBooks fills in this field for %ou' If the sales rep changes from invoice to invoice "for instance? #hen the rep is the person #ho takes a phone order$ and %ou left the >ep field !lank in the customer=s record? choose the right person here' Peave the field !lank if the transaction doesn=t have a sales rep'

V $hi&@ QuickBooks fills in the current date here' If %ou plan to ship on a differ* ent date "#hen the products arrive from %our #arehouse? for e0ample$? t%pe or choose the correct date' V /ia@ If %ou specified a value in the ;sual 8hipping Method preference "page III$? QuickBooks enters that value here' To choose a different shipping method for this invoiceUfor instance? #hen %our customer needs the order right a#a%Uclick this field and select the one %ou #ant' "8ome templates use the la!el 8hip Lia for this field'$

V F@4@B@ This stands for +free on !oard/ and signifies the ph%sical point at #hich the customer !ecomes responsi!le for the shipment' That means that if the shipment !ecomes lost or damaged !e%ond the 5<B point? it=s the customer=s pro!lem' If %ou set the ;sual 5<B preference "page IID$? QuickBooks enters that location here' To choose a different 5<B for this order? t%pe the location %ou #ant'
>4TE

;nlike man% of the other fields in the invoice header area? the 5'<'B' !o0 doesn=t include a drop*do#n list' QuickBooks doesn=t keep a list of 5<B locations !ecause most companies pick one 5<B point and stick #ith it'

FREQ%E>T28 *$:E1 Q%E$T#4>

M%sterious ,rice 4hanges


<ne of m% 8ervice items costs Y1 0 per hour' But #hen I cre* ated a customer invoice for that item? the ,rice .ach came up as Y120' Jhat=s going onG Before %ou rush to correct that 8ervice item=s price? look near the top of the 4reate Invoices #indo#? to the right of the 4ustomer:Oo! field' If %ou see te0t in s)uare !rackets? such as +ZPo%alt%[?/ %ou=ll kno# that %ou set up %our customer #ith a price level "page D2$' Instead of a mistake? this price ad2ustment on %our invoice is actuall% a clever and convenient feature' ,rice levels are percentage increases or decreases that %ou can appl% to the prices %ou charge' 5or e0ample? %ou can set up price levels to give discounts to %our high*volume customers or mark up prices for customers kno#n for their fre)uent use of %our customer*service line' To use price levels? %ou first have to turn on the ,rice Pevel preference "page IID$' If %ou assign a price level to a customer? QuickBooks automati* call% applies that price*level percentage to ever% item %ou add to invoices for that customer' The onl% indication that Quick* Books has applied the price level is the price level=s name to the right of the 4ustomer:Oo! field "and the items= altered prices$' Nou can also appl% price levels to individual items on an invoice' 5or e0ample? suppose %ou offer a 20 percent discount on a different item each month' Jhen an item is the monthl% special? %ou can appl% the Monthl% 8pecial price level to 2ust that item? as sho#n in 5igure 10*D' Jhen %ou use price levels? %our customers don=t see that the price increases or decreases? #hich means the% could take %our discounts for granted' If %ou #ant to emphasiKe the discounts %ou appl%? use a Qiscount item instead to visi!l% reduce prices on %our invoices "see page 2&1$'

Entering #nvoice 2ine #te's


If %ou dutifull% studied 4hapter ? %ou kno# a!out the different t%pes of items %ou can add to invoices' This section descri!es ho# to fill in a line in the 4reate Invoices #indo#=s line*item ta!le to charge %our customers for the things the% !u%' "The !o0 on page 22C e0plains a shortcut for speeding up this process'$ The order in #hich %ou add items to an invoice is important' 5or e0ample? #hen %ou add a 8u!total item? QuickBooks su!totals all the preceding items up to the previous 8u!total item "if there is one$' The program does nothing to check that %ou add items in the correct orderU%ou can add a 8u!total item as the first line item? even though that does nothing for %our invoice' 8ee page 2&0 for the full scoop on adding 8u!total? Qiscount? and <ther 4harge items in the right order'
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If multiple currencies are turned on and %ou have customers set up to use foreign currencies? #hen %ou create an invoice for one of those customers? QuickBooks automaticall% applies the e0change rate %ou entered for that currenc% to item prices and service rates' "8ee the !o0 on page 4IE to learn ho# to do#nload e0change rates and o!tain e0change rates for certain dates'$ To use a specific e0change rate in an invoice? fill in the +.0change >ate 1 Zcurrenc%[ H/ !o0 #ith the e0change rate !efore %ou add items to the invoice' "If %ou forgot to change the e0change rate !efore adding items? delete the lines in the invoice? set the e0change rate? and then add the items again'$

CREATIN G

IBL<I4.8

F i )%RE 1093

To appl% a price level to a single item? click the ,rice .ach "or >ate$ field for the item that=s on special' Jhen QuickBooks displa%s a do#n arro# to indicate that a drop*do#n list is availa!le? click the arro# and then choose the price level %ou #ant'

The order of columns in the line*item ta!le varies from template to template' This section lists the columns in the order the% appear on the Intuit ,roduct Invoice template "sho#n in 5igure 10*E$: V Quantity@ 5or products? t%pe a )uantit%' 5or services %ou sell !% the hour "or other unit of time$? t%pe the num!er of time units' "8ee page 2 0 to learn ho# to select hours from a timesheet'$ If %ou sell services at a flat rate? %ou can leave this cell !lank and simpl% fill in the :mount cell'
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If %ou t%pe a )uantit% for a product that e0ceeds ho# man% %ou have on hand? QuickBooks ,ro simpl% #arns %ou that %ou don=t have enough' QuickBooks ,remier displa%s the same #arning and tells %ou ho# man% %ou have on hand? ho# man% are on sales orders "page 2 2$? and the total availa!le' Quantit% doesn=t appl% if the item is a discount? su!total? or sales ta0' 8o if %ou choose one of these items after entering a )uantit%? QuickBooks removes the value in the Quantit% cell'

CREATIN

F i )%RE 1097

In the Intuit ,roduct Invoice template? the Quantit% column comes first' :fter %ou choose an item? make sure to check the value in the :mount cell' If the num!er looks too large or small? the )uantit% %ou entered might not match the units for the item' 5or e0ample? if %ou charge for develop* ing training materials !% the hour !ut charge for teaching a training class !% the da%? the )uantit% for developing training materials has to !e in hours and the )uantit% for teaching in da%s'

V #te' !o e@ 4lick this cell and then choose an item from the drop*do#n list "see 4hapter for details on items$' Qepending on the info %ou entered #hen %ou created this item "page 101$? QuickBooks ma% fill in the Qescription and ,rice .ach "or >ate$ cells for %ou' V 1escri&tion@ If %ou set up inventor% items #ith standard descriptions? Quick* Books automaticall% puts them in this cell' But %ou can edit a description to? for e0ample? add detailsUlike changing the generic description +8ecurit% service/ to the more specific +Bightl% rounds ever% t#o hours'/ V 6rice Each Kor RateL@ Qepending on the t%pe of item %ou=re adding to the invoice? QuickBooks goes to the item=s record "see 4hapter $ and gra!s the value in the 8ales ,rice field or >ate field and puts it here' 5or e0ample? an Inventor% ,art item=s price al#a%s comes from the 8ales ,rice field? #hereas 8ervice items use the >ate field "unless a partner or su!contractor performs the #ork? in #hich case the% use the 8ales ,rice field$'

V !lass@ If %ou turned on the 4lass feature "page I40$? %ou can fill in this cell #ith the class for this item' V *'ount@ QuickBooks calculates the total in this cell !% multipl%ing the )uantit% !% the value in the ,rice .ach "or >ate$ field' But nothing stops %ou from simpl% t%ping a value in this field? #hich is e0actl% #hat %ou #ant for a fi0ed*fee contract' "5or the full stor% on invoicing for fi0ed*fee contracts? see the !o0 on page 2&1'$

CREATIN this cell and fills it in #ith the ta0a!le status %ou specified in the item=s record? G

IBL<I4.8

and fills in the Ta0 !o0 !elo# the ta!le #ith the 8ales Ta0 item %ou set in the customer=s record' "The ta0 rate for the 8ales Ta0 item %ou select appears to the right of the Ta0 !o0'$ Jith the ta0a!le status of %our customers "page D2$ and the items %ou sell "page 10E$ in place? QuickBooks can automaticall% handle sales ta0 on %our invoices' 5or e0ample? #hen an item is ta0a!le and the cus* tomer is lia!le for pa%ing sales ta0? the program calculates the total sales ta0 !% adding up all the ta0a!le items on %our invoice and multipl%ing that num!er !% the ta0 rate set in the Ta0 !o0 !elo# the ta!leW it then displa%s this value !elo# the ta!le "see 5igure 10*E$'

T#6

If %ou notice that an item=s ta0a!le status isn=t correct? don=t change the value in the Ta0 cell' Nou=re !etter off correcting the customer=s or item=s ta0 status so QuickBooks can calculate ta0 correctl% in the future'

64;ER %$ER$B !2#>#!

:dding @roup Items to Invoices


If the same items fre)uentl% appear together on %our invoices? %ou can add all those items in one step !% creating a @roup item "page 110$' :n% t%pe of item is fair game for a @roup item? so %ou can include 8ervice items? discounts? su!totals? and other charges' 5or e0ample? customers #ho !u% %our delu0e vin%l sofa covers also tend to purchase the dirt*magnet front hall runner and the fau0*mar!le garage floor liner' 8o %ou could create a @roup item "perhaps called the Beat 5reak ,ackage$ that includes the items for the sofa cover? runner? and liner? #ith the )uantit% %ou t%picall% sell of each item' To add a @roup item to an invoice? in the 4reate Invoices #indo#=s item drop*do#n list "la!eled Item or Item 4ode depending on the invoice template %ou=re using$? simpl% choose the @roup item %ou created' QuickBooks fills in the first line !% putting the name of the @roup item in the item cell' Then the program adds additional lines "including )uantit%? description? and price$ for the individual items in the group? such as the sofa cover? runner? and liner'

M41#F8#>) 2#>E #TEM$ 8ometimes? %ou forget to add line items %ou need' 5or e0ample? sa% %ou=ve added several services and inventor% items to %our invoice and then realiKe that %ou need 8u!total items follo#ing the last service and last inventor% items so %ou can appl% a shipping charge to onl% the inventor% items' <r if %our customer changes her mind? %ou can insert or delete a line item' Nou can also cop% and paste line items' Aere=s ho# to modif% lines in the line*item ta!le: V #nsert a line@ >ight*click the line a!ove #hich %ou #ant to add a line? and then choose Insert Pine from the shortcut menu? as sho#n in 5igure 10*C' If %ou prefer ke%!oard shortcuts? press 4trlTInsert instead'

F i )%RE 109 +

:s %ou add items to the ta!le? QuickBooks adds !lank lines "and ne# pages? if needed$ to %our invoice' Ta! into or click a !lank line to add as man% lines as %ou need' The num!er of items visi!le depends on the siKe of the 4reate Invoices #indo#' To vie# more items? click the 8uperma0 !utton at the top right of the #indo# "see page && for the full scoop on 8uperma0 mode$' Nou can also move the scroll !ar up or do#n or resiKe the #indo# !% ma0imiKing it or dragging a corner of it'

1elete a line@ >ight*click the line %ou #ant to get rid of and choose Qelete Pine from the shortcut menu? or press 4trlTQelete'

V !o&y a line@ >ight*click the line %ou #ant to cop%? and then choose 4op% Pine from the shortcut menu' 8uppose %ou filled in a line for a ta0a!le product !elo# the 8u!total item %ou added for ta0a!le items %ou sold' Instead of recreating the line item in the right location? it might !e )uicker to cop% this line and paste it #here it should go in the invoice ta!le' Then !e sure to delete the original line' V 6aste a line@ >ight*click the line a!ove #hich %ou #ant to paste the copied line and choose ,aste Pine from the shortcut menu' QuickBooks ad2usts the invoice=s lines accordingl%'

*&&lying $u.totals, 1iscounts, an 6ercentage !harges


Jhen %ou add 8ervices? Inventor% ,arts? and Bon*inventor% ,arts "see 4hapter $ to an invoice=s line*item ta!le? the% don=t affect their neigh!ors in an% #a%' Ao#ever? #hen %ou offer percentage discounts on #hat %ou sell or include <ther 4harge items that calculate shipping as a percentage of price? the order in #hich %ou add items !ecomes crucial' :nd if %ou #ant to appl% a percentage calculation like a discount or a shipping fee to several items? %ou=ll need one or more 8u!total items to make the calculations #ork'

CREATIN G
)EM #> THE R4%)H

4>.:TIB@ IBL<I4.8

Invoicing 5i0ed*,rice 4ontracts


5i0ed*price contracts are risk% !ecause %ou have to s#allo# an% cost overruns !e%ond the fi0ed price %ou charge' But if %ou=ve sharpened %our skills on similar pro2ects in the past and can estimate %our costs #ith reasona!le accurac%? fi0ed*price con* tracts can provide opportunities for !etter*than*average profit' <nce %ou and %our customer agree on the fi0ed price? that amount is all that matters to the customer' .ven if %ou track the costs of performing a 2o!? %our customer never sees those num!ers' In QuickBooks? %ou can invoice fi0ed*price contracts in t#o different #a%s: V )rou& ite'@ If %ou use the same sets of services and products for multiple 2o!s? create a @roup item that includes each service and product %ou deliver and set up the @roup item to hide the details of the underl%ing services and products "page 110$' :fter %ou add the @roup item to %our invoice? change the price of the @roup item to %our fi0ed price' V $ervice ite'@ If ever% fi0ed*price 2o! is different? create a 8ervice item "page 104$ called something like 5i0ed 5ee and leave its >ate field set to 0'00' Jhen %ou add that item to an invoice? fill in its >ate field #ith the full amount of the fi0ed*price contract' Then? #hen %ou reach a milestone that #arrants a pa%ment? create a progress invoice: In the Quantit% column? t%pe the decimal that e)uates to the percentage completed "such as '2 for 2 percent$? and QuickBooks calculates the pa%ment !% multipl%ing the )uantit% !% the fi0ed*price amount'

Nou first learned a!out 8u!total? Qiscount? and <ther 4harge items in 4hapter ' 5igure 10*10 sho#s ho# to com!ine them to calculate percentage discounts and add markups to the items on %our invoices' 5or e0ample? the item la!eled +1/ is a 8u!total item that adds up the values of all the items up to the previous 8u!total item' 5or e0ample? to keep the 8ervice items out of the product su!total? add a 8u!total item after the last 8ervice item' :s sho#n !% the item la!eled +2/ in 5igure 10*10? for Qiscount and <ther 4harge items created as percentages? QuickBooks multiplies the percentage !% the total on the preceding line' "If the discount applies to onl% one item? add the Qiscount item immediatel% !elo# the item %ou #ant to discount'$ To appl% a percentage discount to several items? use a 8u!total item to total their cost "such as the item la!eled +&/ in 5igure 10*10$? and then add a percentage Qiscount or <ther 4harge item on the line follo#ing that su!total "like the item la!eled +4/ in 5igure 10*10$' Aere are the steps for arranging 8u!total? Qiscount? and <ther 4harge items to calculate percentages on invoice items: 1' #f you <ant to iscount several ite's on an invoice, enter all those ite's one after the other@ .ven though the Balance Que field !elo# the line*item ta!le sho#s the total of all items? to appl% a discount to all of them? %ou=ll need to add a 8u!total item to the line*item ta!le'

F i )%RE 10910

This line*item ta!le includes 8u!total and Qiscount items that appl% to onl% some of the items on this invoice'

2' * a $u.total ite' after the last ite' you <ant to iscount, like the 6ro uct $u.total ite' la.ele G(H in Figure 10910@ The 8u!total item adds up all the preceding line items up to the previous 8u!* total' 5or e0ample? in 5igure 10*10? the 8ervices 8u!total item "la!eled +1/$ is a su!total of all the 8ervice items on the invoice' The ,roduct 8u!total item adds up all items !et#een the 8ervices 8u!total and the ,roduct 8u!total items' &' To a&&ly a &ercentage iscount or charge to the su.total, a a 1iscount or 4ther !harge ite' Kla.ele G4H in Figure 10910L to the line i''e iately .elo< the $u.total ite'@ If %ou=ve alread% added other items to the invoice? right*click the line immedi* atel% !elo# the 8u!total item and then choose Insert Pine from the shortcut menu' That inserts the percentage discount or charge item on the line !elo# the 8u!total item' 4' #f you have a or charge, a
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itional ite's that you onBt <ant to inclu e in the those .elo< the 1iscount or 4ther !harge ite'@

iscount

These steps also #ork for <ther 4harge items that %ou set up as percentages? such as shipping? as sho#n at the !ottom of 5igure 10*10'

CREATIN * ing a Message the2*i) !usto'er 2' On t%eto 4Get On/ineJ s.&een+ ?i// in t%e e3*i/ *))&ess *n) 4>.:TIB@ IBL<I4.8 G Nou can include a message 2*ss=(&) <(1to %our customers on %our invoicesUfor instance?
thanking them for their !usiness or asking for feed!ack' In the 4ustomer Message drop*do#n list? choose the message %ou #ant to include' The messages in this drop*do#n list are the ones %ou=ve added to the 4ustomer Message Pist "page 14 $' If the mes* sage %ou #ant to use isn=t listed? then click _:dd Be#` to open the Be# 4ustomer Message dialog !o0'
T#6

Qon=t use the 4ustomer Message Pist for info that changes #ith ever% invoice? such as the purchase order num!er or date range for the invoice' Instead? add uni)ue information to the cover letter or email that %ou send #ith %our invoice'

ing an 4nline 6ay'ent 2ink

The <nline ,a% !o0? #hich sits !elo# the 4reate Invoices #indo#=s line*item ta!le? is %our ke% to )uick and eas% pa%ments from customers' 4hoose one of the online pa%ment entries in this drop*do#n list? and %our customer #ill receive an online pa%ment link to pa% %ou electronicall% from its !ack account or credit card via In* tuit=s <nline ,a%mentBet#ork' Jhen %our customers use the links to pa% %ou? the mone% gets deposited into %our !ank account? and %ou can do#nload the pa%ment transactions into QuickBooks !% choosing 4ustomersMIntuit ,a%mentBet#orkM Qo#nload ,a%ments' "There are currentl% no setup? cancellation? or monthl% fees for this service' Nou currentl% pa% a flat 0 cents for each !ank pa%ment %ou receiveW fees for credit card pa%ments var%' The fees for this service could change? so check #ith Intuit for pricing !efore %ou sign up'$ This section descri!es ho# to turn on and use this feature'
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If %ou don=t #ant to use Intuit=s <nline ,a%mentBet#ork? %ou can turn off all online pa%ment links in one fell s#oop' 4hoose .ditM,references M,a%ments? and then on the 4ompan% ,references ta!? click Turn <ff <nline ,a%ments' Jhen %ou do so? QuickBooks turns off all online pa%ment links on all invoices for all customers? even if links #ere previousl% turned on' $#)>#>) %6 F4R #>T%#T 6*8ME>T>ET;4R: Before customers can pa% %ou through an online pa%ment link? %ou have to create a ,a%mentBet#ork account' "If %our customers tr% to use the online pa%ment links !efore %ou create %our account? the%=ll see a message that %ou haven=t signed up %et'$ Aere=s ho# to sign up: 1' !hoose !usto'ersM#ntuit 6ay'ent>et<orkM*.out 6ay'ent>et<ork@ The +@et paid <nline on QuickBooks invoices/ screen appears in a !ro#ser #indo#' :fter this screen appears? the +Quick intro: <nline invoice pa%ments/ screen pops up in front of it' There %ou can #atch a video or click 4ontinue to get !ack to the +@et paid <nline/ screen'

Nou can also sign up using %our Intuit account? if %ou have one' To do that? click the +8ign up #ith e0isting Intuit account/ link'
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<n the +@et paid <nline/ screen? QuickBooks automaticall% puts the email address associated #ith %our compan% file in the QuickBooks .mail :ddress field' If this field is !lank or contains an incorrect email ad* dress? !e sure to t%pe in the correct one' ,a%mentBet#ork communicates #ith %ou through this email address and? more importantl%? uses it to direct customer pa%ments to %our !ank account' &' To a your .ank account info, click the G* .ank no< so youBre all setH ra io .utton@ Then, fill in the info for the .ank account you <ant e&osits sent to@ Nou need to provide the t%pe of account? !ank name? routing num!er? account num!er? account holder=s name? compan% name? and phone num!er' 4' ;hen you finish filling in the fiel s, click !o'&lete $et %&@ : message !o0 sho#s that %our info is !eing processed' ' ;hen the GTell us a.out your .usinessH screen a&&ears, fill in the fiel s like your co'&any na'e an fe eral ta" #1, an then click *&&ly@ That=s all there is to it] $ETT#>) 4>2#>E 6*8ME>T 2#>: 6REFERE>!E$ QuickBooks gives %ou several #a%s to control #hen online pa%ment links appear: V *ll invoices for all custo'ers@ To include online pa%ment links on ever% invoice %ou create? turn on the Invoice ,a%ments preference' 4hoose .ditM ,referencesM,a%ments? and then click the 4ompan% ,references ta!' Turn on the +Include online pa%ment link on invoices/ check!o0' If %ou don=t have the multi*currenc% preference turned on in %our compan% file? in the +:llo# invoice to !e paid online #ith/ drop*do#n list? choose the pa%ment methods %ou #ant to accept: +!ank account/ or +!ank account or credit card'/ If %ou do have the multi*currenc% preference turned on? all %ou=ll see is the te0t +:llo# invoice to !e paid online #ith !ank account?/ !ecause that=s the onl% method availa!le for multi*currenc% files' To include links on printed invoices? too? turn on the +:lso include on printed invoices/ check!o0' V *ll invoices for a custo'er@ Nou can specif% #hether to include online pa%ment links on all the invoices for a particular customer !% editing the customer=s re* cordW page D2 tells %ou ho#' The :dd <nline ,a%ment Pink To Invoices setting is on the ,a%ment 8ettings ta! of the 4reate 4ustomer or .dit 4ustomer #indo#'

CREATIN >4TE G If %ou choose a setting for a specific customer? it overrides the setting %ou chose for all invoices in
the ,references dialog !o0' 5or e0ample? if %ou tell QuickBooks to include online pa%ment links on all invoices and then edit a customer=s record to not sho# such links? online pa%ment links #on=t sho# up on future invoices for that customer? !ut the%=ll still appear on the rest of the invoices %ou create' V #n ivi ual invoice@ Jhen the invoice is visi!le in the 4reate Invoices #indo#? choose the setting %ou #ant for that invoice in the <nline ,a% !o0 !elo# the line*item ta!le'

4>.:TIB@ IBL<I4.8

!hoosing Ho< to $en the #nvoice


<n the 4reate Invoices #indo#=s Main ta! "if it=s not selected? click it in the #indo#=s upper*left corner$? %ou=ll find t#o check!o0es that simplif% sending invoices to customers: ,rint Pater and .mail Pater' But these check!o0es don=t tell the #hole stor%U%ou actuall% have five options for sending invoices: V 6rint no<@ If %ou create onl% the occasional invoice and send it as soon as it=s complete? turn off !oth check!o0es' Then? on the 4reate Invoices #indo#=s Main ta!? click ,rint and follo# the instructions on page 2CI' V 6rint later@ If %ou #ant to add the invoice to a )ueue to print later? turn on the ,rint Pater check!o0' That #a% %ou can print all the invoices in the )ueue? as descri!ed on page 2CI'

V E'ail no<@ In the 4reate Invoices #indo#=s Main ta!? click the .mail !utton "it looks like an envelope$ and follo# the instructions for emailing invoices on page &01' V E'ail later@ If %ou #ant to add the invoice to a )ueue to email later? turn on the .mail Pater check!o0' Nou can then send all the invoices in the )ueue? as descri!ed on page &02'
T#6

8ee page IIC if %ou #ant to set a preference that automaticall% turns on the .mail Pater check!o0 if the customer=s ,referred Qeliver% Method is email' :nd page IIE e0plains ho# QuickBooks #orks #ith email programs' V 6rint and e'ail later@ Turn on !oth check!o0es if %ou #ant to email invoices to get the !all rolling and then follo# up #ith paper copies' If %ou=re sending an invoice for products %ou=ve sold? %ou also have to ship those products to %our customer' 8ee the !o0 on page 2&I to learn a convenient and mone%*saving #a% to ship products'

%6 T4 $6EE1

8hipping ,roducts
If %ou sell products? making regular runs to the 5ed.0 or ;,8 office gets old )uickl%' But sitting )uietl% #ithin QuickBooks is a free service that could change the #a% %ou ship packages' The program=s 8hipping Manager feature lets %ou sign up for shipping services and start sending out packages right a#a%' Nou can print 5ed.0? ;,8? and ;'8' ,ostal 8ervice shipping la!elsW schedule pickupsW and even track package progress right in QuickBooks' 8hipping Manager fills in shipping la!els #ith customer addresses from %our QuickBooks invoices? sales receipts? or customer records' :ll %ou pa% are the 5ed.0? ;,8? or postal service charges on %our shipment' Aere=s #here %ou can find 8hipping Manager: V If %ou=re creating an invoice for products %ou plan to ship? in the 4reate Invoices #indo#? click the 8end(8hip ta!? and then click the !utton for the shipping method %ou #ant to use' In the drop*do#n menu that appears? choose #hat %ou #ant to do? such as ship a package? schedule a pickup? or track a package that=s alread% on its #a%' V The 8ales >eceipt #indo# also includes a 8end(8hip ta!? #hich #orks in the same #a% as the one in the 4reate Invoices #indo#' V 4hoose 5ileM8hipping? and then choose 8hip 5ed.0 ,ackage? 8hip ;,8 ,ackage? or 8hip ;8,8 ,ackage' The first time %ou choose a shipping action? such as 8hip 5ed.0 ,ackage? a setup #iKard steps %ou through creating an account for that shipping compan%'

ing a Me'o to 8ourself

The 4reate Invoices #indo# includes a Memo !o0? #hich #orks 2ust like Memo !o0es throughout QuickBooks' Nou can use it to remind %ourself a!out something special on the invoice or to summariKe the transaction' 5or e0ample? if the invoice is the first one for a ne# customer? %ou can note that in the Memo !o0' The memo #on=t print on the invoices %ou send to %our customers' Ao#ever? it does appear on %our sales reports and customer statements? so !e careful #hat %ou t%pe here'
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The <pen Invoices report ">eportsM4ustomers - >eceiva!lesM<pen Invoices$ is hand% #hen %ou #ant to see all the invoices for #hich %ou haven=t %et received pa%ment' It lists all the invoices for each customer and 2o!? #hen the%=re due? and their open !alances' If the invoices are overdue? the :ging column sho#s 2ust ho# late the% are' Income Tracker "page &20$ is another #a% to check up on upcoming or overdue income'

4reating Batch Invoices


If %ou send invoices #ith the same items and the same )uantities to man% of %our customers? QuickBooks offers a great invoicing timesaver' Instead of creating indi* vidual invoices for each customer? %ou can set up a single !atch invoice and send it to as man% customers as %ou #ant' :nd %ou can speed things up even more !% creating a !illing group that includes all the customers that receive the invoice? so %ou don=t have to re*select them each time %ou send a !atch invoice'

CREATIN >4TE 2' use Inthe t%e B*t.% Inv(i.e se/e.t .1st(3e&s G Nou can=t !atch invoice feature if %ou=in)(=+ have multipleeit%e& currencies turned onin)ivi)1*/ "page I C$' That=s IBL<I4.8 in t%e e*&.% #h% #hen that preference is turned on? the 4reate Batch Invoices entr% doesn=t appear on the 4ustomers menu'

Before 8ou !reate #nvoice

8our First Batch

Batch invoices use the pa%ment terms? sales ta0 rates? and send methods %ou specif% for each customer? so !e sure to fill in these fields in customers= records !efore %ou create %our first !atch invoice' These fields are on the ,a%ment 8ettings? 8ales Ta0 8ettings? and :dditional Info ta!s "page D0? page D2? and page D2? respectivel%$ of the 4reate 4ustomer and .dit 4ustomer #indo#s' Nou can use the :dd(.dit Multiple Pist .ntries #indo# "page 11E$ to find and fill in an% missing values'

$etting %& a Batch #nvoice


Aere=s ho# to create a !atch invoice for several customers: 1' !hoose !usto'ersM!reate Batch #nvoices@ The Batch Invoice #indo# opens "5igure 10*11$'
>4TE

If this is %our first time using 4reate Batch Invoices? the +Is %our customer info set up correctl%G/ message !o0 appears? reminding %ou that %ou need to fill in terms? sales ta0? and send method settings for %our !atch invoice customers' 4lick <6 to close it and open the Batch Invoice #indo#' If %ou need to fill in more information for %our customers? close the Batch Invoice #indo# and choose PistsM:dd(.dit Multiple Pist .ntries to open the :dd(.dit Multiple Pist .ntries #indo# to complete %our customers= records'

F i )%RE 10911

Nou can rename or delete the !illing groups %ou create !% clicking Manage @roups' To select a different !illing group? choose it from the Billing @roup drop*do#n list' If %ou modif% the customers in the list? click 8ave @roup to update the !illing group #ith the current set of customer names'

.o" on the <in o<Bs right si e, or choose an e"isting grou& fro' the Billing )rou& ro&9 o<n list@ If %ou select individual customers? %ou can select ad2acent names !% clicking the first customer=s name and then 8hift*clicking the last customer=s name' Nou can also 4trl*click each customer name %ou #ant to select' If %ou choose a !illing group? the name of the group appears a!ove the 4ustom* ers In This @roup !o0? and the individual names appear in the !o0? as sho#n in 5igure 10*11' "The !o0 on page 2&C e0plains ho# to create !illing groups'$
>4TE

If %ou add individual customers and a !illing group to the 4ustomers In This @roup list? #hen %ou click a#a% from the list? a Batch Invoice message !o0 asks if %ou #ant to save the changes to the !illing group' 4lick Nes to add the individual customers to this !illing group and use the full list for the !atch invoice' 4lick Bo to use the list of customers for this !atch invoice #hile leaving the saved !illing group as it is' <r click 4ancel to return to the Batch Invoice #indo# to make additional changes' &' *fter you a the a&&ro&riate custo'ers to the !usto'ers #n This )rou& list, click >e"t@ <n the +8tep 2 of &/ screen that appears? QuickBooks automaticall% puts to* da%=s date in the Qate !o0 and displa%s a ta!le for the ne0t step in the process: adding items to the invoice' 4' To use a ifferent ate, choose it in the 1ate .o"@

Nou can also choose a different invoice template from the Template drop* do#n list' ' #n the line9ite' ta.le KFigure 10912L, fill in the ite's you <ant to a invoice Iust as you o for a regular invoice K&age 220L@ Nou can add an% item from %our Item Pist to a !atch invoice' I' *fter you fill in the ite's for the invoice, click >e"t@ The +8tep & of &/ screen lists the customers #ho #ill receive the invoice? includ* ing their terms? send methods? ta0 info? and other information' If %ou notice an% errors or omissions? click Back to correct them' D' ;hen everything looks goo , click !reate #nvoices@ QuickBooks creates the invoices for the selected customers' The Batch Invoice 8ummar% dialog !o0 appears and sho#s ho# man% invoices are set up to print and ho# man% to email? !ased on the customers= preferred deliver% methods' "The dialog !o0 mentions the customer=s ,referred 8end Method? !ut the field in the customer record is actuall% la!eled +,referred Qeliver% Method'/$ If the ,referred Qeliver% Method for an% of the customers is set to Bone? the dialog !o0=s +unmarked/ entr% sho#s ho# man% invoices aren=t marked to !e mailed or to the

DE5O IT + DOWN
5orms "page 2CI$' IBL<I4.8

F i )%RE 10912

5ill in the items for the !atch invoice as %ou do the line items in the 4reate Invoices #indo#' "The fields %ou see in the ta!le depend on the invoice template %ou=re using'$

T#6

Nou can vie# or change each customer=s deliver% method selection in the 4ustomer 4enter' 8impl% right*click the customer=s name and choose .dit' Then click the ,a%ment 8ettings ta! to see %our selections' E' !lick 6rint to &rint the invoices 'arke invoices 'arke to .e e'aile @ to &rintM click E'ail to sen the

If %ou #ant to print or email the invoices later? click 4lose' Then %ou can print or email them !% choosing 5ileM,rint 5ormsMInvoices or 5ileM8end 5orms'
%6 T4 $6EE1

4reating a Billing @roup


Billing groups make it eas% to select all the customers #ho receive the same !atch invoice' <nce %ou set up a !illing group? %ou can select it in the Batch Invoice #indo#? and QuickBooks automaticall% adds all the customers in it to the 4ustomers In This @roup !o0 in one fell s#oop' Aere=s ho# to create a !illing group: 1' In the Batch Invoice #indo# "4ustomersM4reate Batch Invoices$? !efore %ou select customer names? in the Billing @roup drop*do#n list? choose _:dd Be#`' 2' In the @roup Bame dialog !o0? t%pe a name of the group? like JeightPoss for all the customers on %our monthl% diet plan? for e0ample' Then click 8ave' &' In the Batch Invoice #indo#=s 8earch >esults list? 4trl* click all the customers %ou #ant to add to the group? and then click :dd to cop% the names to the 4ustomers In This @roup !o0' 4' 4lick the 8ave @roup !utton !elo# the 4ustomers In This @roup !o0' QuickBooks saves %our ne# !illing group so %ou can use it again simpl% !% selecting it in the Batch Invoice #indo#'

>.T:IB.>8

Qeposits? Qo#n ,a%ments? and >etainers


Qeposits? do#n pa%ments? and retainers are all prepa%ments: mone% that customers give %ou that %ou haven=t actuall% earned %et' 5or e0ample? a customer might give %ou a do#n pa%ment to reserve a spot in %our !us% schedule' ;ntil %ou perform services or deliver products to earn that mone%? the do#n pa%ment is more like a loan from the customer than income' >eceiving mone% for something %ou didn=t do feels good? !ut don=t make the mis* take of considering that mone% %ours' ,repa%ments !elong to %our customers until %ou earn them? and the% re)uire a !it more care than pa%ments %ou receive for completed #ork and delivered products' This section e0plains ho# to manage all the intricacies of customer prepa%ments'

$etting %& QuickBooks for 6re&ay'ents


If %ou accept prepa%ments of an% kind? %ou=ll need an account in %our chart of ac* counts to keep that mone% separate from %our income' Nou=ll also need an item that %ou can add to %our invoices to deduct prepa%ments from #hat %our customers o#e: V 6re&ay'ent account@ If %our customer gives %ou mone% and %ou never do an%thing to earn it? the customer is almost certain to ask for it !ack' Because unearned mone% from a customer is like a loan? create an <ther 4urrent Pia!ilit% account in %our chart of accounts "see page 2$ to hold prepa%ments' 4all it something like 4ustomer ,repa%ments' V 6re&ay'ent ite'@ 4reate a prepa%ment item in %our Item Pist? as sho#n in 5igure 10*1&'

F i )%RE 1091(

Jhether %ou accept de* posits or retainers for ser* vices or product deposits? create a 8ervice item for these prepa%ments' Jhen %ou create this item? as* sign it to the prepa%ment account "a current lia!ilit% account$ %ou created'

Recor ing 6re&ay'ents


Jhen a customer hands %ou a check for a deposit or do#n pa%ment? the first thing %ou should do is #ait until she=s out of earshot to %ell? +Nippee]/ The second thing is to record the prepa%ment in QuickBooks' Nou haven=t done an% #ork %et? so there=s no invoice to appl% the pa%ment to' 5ortunatel%? a sales receipt not onl% records a prepa%ment in QuickBooks? !ut #hen %ou print it? it also acts as a receipt for %our customer' Aere=s ho# to create one:

240

QUICKBOOKs 2014: tHe MIssInG

DE5O IT + 1' M*0e s1&e t%e */es Re.ei2ts 2&e?e&en.e is


If %ou don=t see a 4reate 8ales >eceipts icon in the QuickBooks Aome page=s 4ustomers panel or an .nter 8ales >eceipts entr% on the 4ustomers menu? choose .ditM,referencesMQesktop Lie#? and then click the 4ompan% ,refer* ences ta!' Turn on the 8ales >eceipts check!o0? and then click <6' 2' 4 n t h e H o' e &age, click t h e !reate $ a les Recei&t s icon Kor choose !usto'ersMEnter $ales Recei&tsL@ QuickBooks opens the .nter 8ales >eceipts #indo# to a !lank receipt' &' #n the !usto'er:-o. .o", choose the custo'er or Io. fro' <hich you re9 ceive a e&osit or o<n &ay'ent@ QuickBooks fills in some of the fields? such as the customer=s address in the 8old To !o0? #ith information from the customer=s record' 4' Fill in the other hea er .o"es as you <oul invoice K&age 21+L@ for a regular sales recei&t or

DOWN >.T:IB.>8

If %ou use classes? in the 4lass !o0? choose a class to track the prepa%ment' If %ou have a customiKed template 2ust for prepa%ments "page D11$? in the Template drop*do#n list? select that template' In the Qate !o0? choose the date that %ou received the prepa%ment' In the ,a%ment Method !o0? pick the method the customer used to pa% %ou' If the customer paid !% check? in the 4heck Bo' !o0? t%pe the check num!er for reference' ' #n the ta.le, click the first #te' cell an use its ro&9 o<n list to choose the &re&ay'ent ite' you <ant to use Kfor e"a'&le, a $ervice ite' calle so'ething like G1e&osits an Retainers,H as escri.e on &age 240L@ This step is the ke% to recording a prepa%ment to the correct account' Because %our prepa%ment items are tied to an <ther 4urrent Pia!ilit% account? Quick* Books doesn=t post the pa%ment as income? !ut rather as mone% o#ed to %our customer' I' #n the *'ount cell, ty&e the a'ount of the e&osit or o<n &ay'ent@

Nou don=t need to !other #ith entering values in the Qt% and >ate cellsUthe sales receipt simpl% records the total that the customer gave %ou' Nou=ll add the details for services and products later #hen %ou create invoices' D' !o'&lete the sales recei&t as you <oul any other &ay'ent for'@

5or e0ample? add a message to the customer? if %ou like' :t the top of the .n* ter 8ales >eceipt #indo#? click .mail or ,rint to provide the customer #ith a receipt' If %ou turned off the preference to use the ;ndeposited 5unds account "page II1$? %ou=ll see the Qeposit To !o0 to the right of the 4lass !o0' In the Qeposit To !o0? choose ;ndeposited 5unds if %ou plan to hold the pa%ment and deposit it #ith others' If %ou=re going to race to the !ank as soon as %our computer shuts do#n? choose %our !ank account instead' "If %ou turn on the

CHA5teR 10:

241

>.T:IB.>8

deposits pa%ments to the ;ndeposited 5unds account? so the Qeposit To !o0 doesn=t appear in the 8ales >eceipt #indo#'$ E' !lick $ave A !lose@ QuickBooks posts the pa%ment to %our prepa%ment account and closes the .nter 8ales >eceipts #indo#'

*&&lying a 1e&osit, 1o<n 6ay'ent, or Retainer


Jhen %ou finall% start to deliver stuff to customers #ho=ve paid up front? %ou invoice them as usual' But the invoice %ou create needs one additional line item that deducts the customer=s prepa%ment from the invoice !alance' 4reate the invoice as %ou normall% #ould #ith items for the services? products? charges? and discounts "page 22I$' :fter %ou=ve added all those items? add the item for the prepa%ment and fill in the :mount cell #ith a negative num!er to deduct the prepa%ment from the invoice amount? as sho#n in 5igure 10*14 "top$'

F i )%RE 10914

Top: Jhen %ou create an invoice for the customer? the prepa%ment offsets the customer=s !alance' To deduct the prepa%* ment from the invoice !alance? in the :mount cell? enter the prepa%ment as a negative num!er? as sho#n here' Bottom: Initiall%? #hen %ou create a sales receipt for a deposit or do#n pa%ment? QuickBooks adds the mone% to %our prepa%ment <ther 4urrent Pia!ilit% account' Jhen %ou appl% the deposit to an invoice? QuickBooks transfers the mone% from that account to reduce the customer=s :ccounts >eceiva!le !alance'

DE5O IT +
of the deposit as %ou needW %ou can appl% the rest of it to the ne0t invoice'

I? t%e .%*&,es (n t%e inv(i.e *&e /ess t%*n t%e *3(1nt (? t%e

DOWN >.T:IB.>8

Refun ing 6re&ay'ents


Qeposits and do#n pa%ments don=t guarantee that %our customers #ill follo# through #ith their pro2ects or orders' 5or e0ample? a customer might make a deposit on decor for his !achelor pad' But #hen he meets his future #ife at the monster truck rall%? his plan for the !achelor pad is crushed as flat as the cars under the trucks= #heels' <f course? %our customer #ants his mone% !ack? #hich means %ou share some of his disappointment' Nour first step is to determine ho# much mone% the customer gets !ack' 5or e0* ample? if a customer cancels an order !efore %ou=ve purchased the products? %ou might refund the entire deposit' Ao#ever? if the leopard*print #allpaper has alread% arrived? %ou might keep part of the deposit as a restocking fee' :fter %ou decide ho# much of the deposit %ou=re going to keep? %ou have to do t#o things: move the portion of the deposit that %ou=re keeping from the prepa%ment account to an income account? and then refund the rest of the deposit' Aere=s ho# to do !oth: 1' !reate an invoice for the custo'er or Io. .y choosing !usto'ersM!reate #nvoices, an then, in the !usto'er:-o. .o", choosing the custo'er@ Nou create an invoice to turn the deposit %ou=re keeping into income' 2' #n the first #te' cell, choose an ite' relate to the cancele Io. or or er@

5or e0ample? if %ou=re keeping a deposit for products %ou ordered? choose the item for those products' If the deposit #as for services %ou planned to perform? choose the appropriate 8ervice item instead' &' #n the ite'Bs *'ount cell, ty&e the a'ount of the kee&ing@ e&osit that youBre

Because items are connected to income accounts "see 4hapter $? this first line in the invoice is #here %ou assign the amount of the deposit that %ou=re keeping to the correct income account for the products or services %ou sold' 4' #n the ta.leBs secon line, a the &re&ay'ent ite' an fill in the a'ount of the e&osit youBre kee&ing as a negative a'ount, as sho<n in Figure 10915@ This item removes the amount of the deposit %ou=re keeping from %our lia!ilit% account so %ou no longer o#e the customer that mone%'

>.T:IB.>8 QuickBooks removes the deposit %ou=re keeping from the prepa%ment lia!ilit% account and posts that mone% to the income account associated #ith the item %ou selected in step 2' If %ou=re keeping the #hole deposit? %ou=re done' But if %ou aren=t keeping the entire amount? %ou have to refund the rest to the cus* tomer? so continue on to the ne0t step'

F i )%RE 10915

In the first ro#=s :mount cell? enter the amount of the deposit %ou=re keeping as a positive num!er' Then? in the :mount cell for the prepa%ment "the second ro#$? t%pe a nega* tive num!er? #hich makes the invoice=s !alance Kero' The prepa%ment item also deducts the deposit from the prepa%ment lia!ilit% account? so %ou no longer +o#e/ the customer that mone%'

I' To refun the rest of the K&age 230L@

e&osit, create a cre it 'e'o for the re'ain er

In the 4reate 4redit Memos(>efunds #indo#=s ta!le? add the prepa%ment item %ou used in the invoice' In the :mount cell? t%pe the amount that %ou=re refunding' D' !lick $ave A !lose@ QuickBooks removes the remaining deposit amount from %our prepa%ment lia!ilit% account' Because the credit memo has a credit !alance? QuickBooks opens the :vaila!le 4redit dialog !o0' E' #n the *vaila.le !re it ialog .o", choose the G)ive a refun H o&tion an then click 4:@ QuickBooks opens the Issue a >efund dialog !o0 and fills in the customer or 2o!? the account from #hich the refund is issued? and the refund amount' If %ou #ant to refund the deposit from a different account? choose a different refund pa%ment method or account' C' !lick 4: to create the refun @ :ll that=s left for %ou to do is mail the refund check'

Invoicing for Billa!le Time and 4osts


Jhen %ou #ork on a time*and*materials contract? %ou charge the customer for la!or costs plus 2o! e0penses' 4ost*plus contracts are similar e0cept that %ou charge a fee on top of the 2o! costs' 4ontracts like these are !oth lo# risk and lo# re#ardUin effect? %ou=re earning an hourl% #age for the time %ou #ork' 5or these t%pes of contracts? it=s critical that %ou capture all the e0penses associated #ith the 2o! or %ou=ll lose some of the profit that the contract offers' QuickBooks helps %ou get those !illa!le items into %our invoices' Nou have to tell the program a!out ever% hour #orked and ever% e0pense %ou incur for a customer or 2o!' But once %ou do that? it=s eas% to !uild an invoice that captures these !illa!le items' Nou can add !illa!le time and costs to an invoice #hen it=s open in the 4reate Invoices #indo#' :nd? #hen %ou open the 4reate Invoices #indo# in QuickBooks ,ro or ,remier and choose a customer or 2o!? the program reminds %ou a!out out* standing !illa!le time and costs' QuickBooks ,remier also has a separate feature specificall% for creating invoices for !illa!le time and costs' The follo#ing sections tell %ou ho# to perform all these tasks'

IBL<I4IB@ 5<> BIPP:BP. TIM. :BQ 4<8T8

$etting %& #nvoicing for Ti'e an !osts


In some industries? like consulting and la#? invoicing for time and e0penses is the norm' But !efore %ou can pop %our !illa!le time and e0penses into QuickBooks invoices? %ou first need to record them as !illa!le items and assign them to the correct customer or 2o!' Aere are the !illa!le items %ou can add to invoices and the chapters that tell %ou ho# to track them: V Billa.le ti'e@ 4hapter E "page 1 E$ descri!es ho# to track !illa!le time and assign hours to a customer or 2o!' V Mileage@ 4hapter E "page 1IE$ descri!es ho# to track mileage and assign !ill* a!le mileage to a customer or 2o!' V 6urchases an e"&enses relate to a custo'er or Io.@ >eim!ursa!le e0penses include products %ou purchase specificall% for a 2o!? services performed !% a su!contractor? and other e0penses such as shipping and postage' 4hapter C descri!es ho# to make items and e0penses reim!ursa!le to a customer or 2o! "page 1E&$ as %ou enter !ills? checks? or credit card charges in QuickBooks'

ing Billa.le Ti'e an !osts to #nvoices

If %ou use QuickBooks ,ro or ,remier? %ou can add !illa!le time and costs directl% in the 4reate Invoices #indo#' Aere=s ho#: 1' 6ress !trlO# or choose !usto'ersM!reate #nvoices to o&en the !reate #nvoices <in o<@

IBL<I4IB@ 5<> BIPP:BP. TIM. :BQ 4<8T8

2' #n the !usto'er:-o. to invoice@

ro&9 o<n list, choose the custo'er or Io. you <ant

If the customer or 2o! has outstanding !illa!le time or e0penses? the Billa!le Time(4osts dialog !o0 opens and automaticall% selects the +8elect the out* standing !illa!le time and costs to add to this invoiceG/ option? as sho#n in 5igure 10*1I "foreground$'

F i )%RE 10910

To add !illa!le time and costs that haven=t !een !illed to an invoice? keep the option that !egins #ith +8elect/ selected in this dialog !o0' If %ou don=t #ant to !ill that time and cost %et? select the option that !egins #ith +.0clude'/ Nou can add time and e0penses at an% time !% clicking the :dd Time( 4osts !utton at the top of the 4reate Invoices #indo#'

&' #n the Billa.le Ti'eJ!osts ialog .o", click 4:@ The +4hoose Billa!le Time and 4osts/ dialog !o0 opens'
>4TE

Nou can open the +4hoose Billa!le Time and 4osts/ dialog !o0 an%time the 4reate Invoices #indo# is open !% clicking the :dd Time(4osts !utton on the #indo#=s Main ta!' 4' To select the ti'e an costs you <ant to a to the invoice, follo< the in9 structions that .egin <ith ste& 1 on &age 250@

%sing #nvoice for Ti'e A E"&enses


If %ou use QuickBooks ,remier or .nterprise? the program has a special feature for adding !illa!le items to invoices' If %ou turn on the +Invoice for Time - .0penses/ feature? it sho#s %ou ever% customer #ith !illa!le time and e0penses #aiting to !e invoiced and ho# much there is of each t%pe? so it=s eas% to see all %our outstanding !illa!le hours and reim!ursa!le e0penses'

T( set t%e 2&e?e&en.e ?(& t%is ?e*t1&e+ .%((se E)it>5&e?e&en.es>Ti3e A Ex2enses' On t%e C(32*n<

IN@OICING !OR

and e0penses/ check!o0' "Peave this check!o0 turned off if invoicing for time and e0penses is the e0ception rather than the rule' If %ou leave it off? %ou can still add time and other costs to an invoice in the 4reate Invoices #indo#? as descri!ed in the previous section'$ #>/4#!#>) 4>E !%$T4MER 4R -4B F4R T#ME *>1 EF6E>$E$ Aere=s ho# to use the +Invoice for Time - .0penses/ feature to create an invoice for !illa!le time and e0penses for one customer or 2o!: 1' !hoose !usto'ersMG#nvoice for Ti'e A E"&ensesH or, on the Ho'e &age, click the #nvoices icon, an then choose G#nvoice for Ti'e A E"&ensesH on the ro&9 o<n 'enu@ QuickBooks opens the +Invoice for Time - .0penses/ #indo#? #hich lists the customers and 2o!s that have !illa!le time and e0penses associated #ith them' The #indo#=s ta!le sho#s the amount of !illa!le time? e0penses? and mileage for each customer and 2o!' The Items column sho#s the reim!ursa!le amount for products that %ou purchased specificall% for the customer or 2o!' 2' #n the 1ate Range Fro' an To .o"es, ty&e the starting an en ing for the ti'e an e"&enses you <ant to invoice@ ates

5or e0ample? if %ou #ant to invoice for !illa!le time and e0penses for the previous )uarter? t%pe the first and last da%s of the period? like 1(1(2014 and &(&1(2014' To invoice for all outstanding time and e0penses up to a certain date? leave the Qate >ange 5rom !o0 !lank' &' To select a custo'er or Io., click any<here in its ro<@ QuickBooks highlights the customer or 2o! %ou clicked' 4' To choose s&ecific .illa.le ti'e an costs to a to the invoice, turn on the G2et 'e select s&ecific .illa.le costs for this !usto'er:-o.H check.o" at the .otto' of the <in o<@ This check!o0 is active onl% #hen one customer or 2o! is selected' If %ou select more than one customer or 2o! "see page 24E to learn ho# to create a !atch of time and e0penses invoices$? this check!o0 is gra%ed out' If %ou turn this check!o0 off? the program adds all !illa!le time and costs to the invoice' ' !lick !reate #nvoice@ If %ou turned on the +Pet me select specific !illa!le costs for this 4ustomer:Oo!/ check!o0? QuickBooks opens the +4hoose Billa!le Time and 4osts/ dialog !o0 sho#n in 5igure 10*1D? #hich includes ta!s for time? e0penses? mileage? and items "products$' "This dialog !o0 is the same one %ou see if %ou click :dd Time(4osts in the 4reate Invoices #indo#' ,roceed to page 2 0 to learn ho# to add specific !illa!le time and costs to an invoice'$

IN@OICING

BIPP:BP. TIM. :BQ 4<8T8

If %ou left the +Pet me select specific !illa!le costs for this 4ustomer:Oo!/ check* !o0 turned off? the 4reate Invoices #indo# opens #ith %our invoice alread% filled out' :ll %ou have to do is save the invoice !% clicking 8ave 4lose'

F i )%RE 10913

<n the +4hoose Bill* a!le Time and 4osts/ dialog !o0=s Time ta! "!ackground$? click the <ptions !utton to tell QuickBooks ho# to handle different activities' In the +<ptions for Transferring Billa!le Time/ dialog !o0 "foreground$? the program automaticall% selects the option that displa%s the total hours for each 8ervice item' Ao#ever? %ou can choose the other option to tell QuickBooks to add a separate line for each activit%? to sho# the hours #orked each da%? for instance' If each activit% is on its o#n line? %ou can transfer activit% descrip* tions? notes? or !oth to the invoice'

!RE*T#>) * B*T!H 4F T#ME *>1 EF6E>$E$ #>/4#!E$ If %our compan% is set to use a single currenc% "page I C$ and %ou have QuickBooks ,remier or .nterprise? %ou can create time and e0penses invoices for more than one customer or 2o!' Aere are the steps: 1' !hoose !usto'ersMG#nvoice for Ti'e A E"&ensesH or, on the Ho'e &age, click the #nvoices icon, an then choose G#nvoice for Ti'e A E"&ensesH on the ro&9 o<n 'enu@ The +Invoice for Time - .0penses/ #indo# sho#s all the customers #ith out* standing !illa!le time and e0penses and includes a checkmark column on the left side of the ta!le' 2' #n the 1ate Range Fro' an To .o"es, select the ate range you <ant@ &' To select several custo'ers or Io.s, click the check'ark cells for the ones you <ant@ Jhen a customer or 2o! is selected? a checkmark appears in the checkmark column? as sho#n in 5igure 10*1E'

IN@OICING !OR

F i )%RE 10917

Nou can select more than one customer? as long as %ou use QuickBooks ,remier or .nterprise and don=t use multiple currencies' In that case? the +Invoice for Time - .0* penses/ #indo# includes a checkmark column' Nou can click individual checkmark cells or drag over the cells to toggle them on or off'

4' !lick >e"t $te&@ The +Batch Invoice for Time - .0penses/ dialog !o0 opens #ith the customers and 2o!s %ou selected' ' To s&ecify the o&tions for the invoices, click E it 4&tions .elo< the ta.le@ !hoose the settings you <ant, an then click 4:@ Pike the +<ptions for Transferring Billa!le Time/ dialog !o0 sho#n in 5igure 10* 1D? the +<ptions for Transferring Billa!les/ dialog !o0 has options for sho#ing time for each activit% on separate invoice lines or sho#ing the total hours for each 8ervice item' If each activit% is on its o#n line? %ou can transfer descrip* tions? notes? or !oth to the invoice' Nou can also specif% a markup percentage and account for e0penses' I' To look at the etails for a custo'er or Io., click Revie< Billa.les@ In the +>evie# Billa!le Time and 4osts/ dialog !o0? click the do#n arro# to the right of the +Time and 4osts 5or/ !o0 and choose a customer or 2o!' The dialog !o0=s ta!le sho#s the !illa!le info for that customer or 2o!' 4lick <6 #hen %ou=re done to close the dialog !o0' D' #n the GBatch #nvoice for Ti'e A E"&ensesH ialog .o", click !reate #nvoices@ QuickBooks creates the invoices for the selected customers' The Time - .0* penses 8ummar% dialog !o0 appears and sho#s ho# man% invoices are set up to print and ho# man% to email? !ased on %our customers= preferred deliver% methods "page D1$' 4lick ,rint to print the invoices marked to printW click .mail to send the invoices marked to !e emailed' To print or email the invoices later? click 4lose' Then %ou can print or email them !% choosing 5ileM,rint 5ormsMInvoices or 5ileM8end 5orms'

IN@OICING

BIPP:BP. TIM. :BQ 4<8T8

$electing Billa.le Ti'e an !osts


>egardless of ho# %ou open the +4hoose Billa!le Time and 4osts/ dialog !o0 "5igure 10*1D$? the steps for selecting the !illa!le time and costs to add to an invoice are the same' Aere=s #hat %ou do: 1' #n the G!hoose Billa.le Ti'e an !ostsH ialog .o", to select all the entries on the Ti'e ta., click the $elect *ll .utton@ QuickBooks adds a checkmark in the first column for ever% activit%' To add or remove a ro#? click its checkmark cell to toggle it on or off' .ach ta! in the dialog !o0 sho#s the total value of the entries %ou=ve selected on that ta!' The +Total !illa!le time and costs/ value !elo# the ta!le is the total of all the selected items on all four ta!s' 2' #f you <ant the invoice to inclu e only one line for all the ti'e an e"&enses youBve selecte , turn on the G6rint selecte ti'e an costs as one invoice ite'H check.o" .elo< the ta.le@ :fter %ou create the invoice in step I of this list? in the 4reate Invoices #indo#? %ou=ll see separate entries for !illa!le items so %ou can verif% that the invoice is correct' Ao#ever? #ith this check!o0 turned on? the printed invoice #ill include onl% one line? la!eled Total >eim!ursa!le .0penses'
>4TE

If %ou=ve created the invoice #ith one line for time and costs? it takes several steps to recreate it sho#ing individual costs' To change an invoice !ack to a line*!%*line listing? in the 4reate Invoices #indo#? delete the Total >eim!ursa!le .0penses line item' Then click :dd Time(4osts on the #indo#=s Main ta! to open the +4hoose Billa!le Time and 4osts/ dialog !o0 and reselect all the entries %ou #ant' 5inall%? turn off the +,rint selected time and costs as one invoice item/ check!o0? and then click <6' &' !lick the E"&enses ta., an then click the check'ark cell for each e"&ense Klike 'eals, airfare, an other costsL you <ant to a to the invoice@ If %ou mark up e0penses? such as phone calls and postage? the .0penses ta! lets %ou track %our markups' In the +Markup :mount or %/ !o0? t%pe the markup=s dollar value or percentage' Then choose the income account for the markup' "The !o0 on page 2 2 tells %ou ho# to appl% different markups to different e0penses'$ To have QuickBooks calculate the sales ta0? turn on the +8elected e0penses are ta0a!le/ check!o0' "If the customer is ta0 e0empt? QuickBooks doesn=t add sales ta0 even if %ou turn on this check!o0'$
>4TE

<n the .0penses ta!? the Memo column displa%s #hat %ou t%ped in the Memo field of the original vendor !ill? check? or credit card charge' QuickBooks uses the entries in this column as the description on the invoice' "Nou can=t edit the Memo te0t in this dialog !o0' 8o? if %ou didn=t enter a Memo in the original e0pense transaction? %ou=ll have to t%pe the description for each e0pense once it=s added to the invoice'$

4' C/i.0 t%e Mi/e*,e t*; *n) se/e.t t%e 3i/e*,e <(1 =*nt t( *)) t(
4lick <ptions to tell QuickBooks #hether to sho# one line for mileage or a separate line for each trip? like %ou did on the Time ta! "5igure 10*1D$' ' 4n the #te's ta., select the &ro ucts you .ought s&ecifically for this cus9 to'er or Io. that you <ant to a to this invoice@ 4lick an item=s checkmark cell to add it to the invoice' I' ;hen youBve selecte ta., click 4:@ all the .illa.le ite's you <ant to a fro' every

IN@OICING !OR

QuickBooks closes the +4hoose Billa!le Time and 4osts/ dialog !o0 and adds all the items %ou selected to the invoice? as sho#n in 5igure 10*1C' If it looks good? click 8ave - 4lose' If not? edit the invoice to include #hat %ou #ant or click 4lear to start from scratch'

F i )%RE 1091+

Nou can edit the item descriptions in the 4reate Invoices #indo#' If %ou didn=t t%pe memos in the original e0pense transac* tions? %ou have to t%pe the descriptions for !illa!le e0penses directl% into the Qescription fields here' Because the invoice is open in the 4reate Invoices #indo#? %ou can add additional line items to it !efore %ou save it'

CHA5teR 10:

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IN@OICING !OR
;4R:*R4%>1 ;4R:$H46

:dding Qifferent Markups to Billa!le .0penses


The .0penses ta! of the +4hoose Billa!le Time and 4osts/ dialog !o0 has onl% one +Markup :mount or %/ !o0? #hich might seem like a pro!lem if %ou add different markups to some of %our !illa!le e0penses' But there=s nothing stopping %ou from adding these e0penses to %our invoice in more than one !atch #ith a different markup amount or percentage for each !atch' Aere=s ho#: 1' In the +4hoose Billa!le Time and 4osts/ dialog !o0? click the .0penses ta!' 2' In the +Markup :mount or %/ !o0? t%pe the markup for the first !atch of e0penses' &' Turn on the checkmark cell for each e0pense that %ou #ant to appl% that markup to' 4' 4lick <6 to add the selected e0penses to the invoice' ' <n the 4reate Invoices #indo#=s Main ta!? click :dd Time(4osts' I' In the +4hoose Billa!le Time and 4osts/ dialog !o0? click the .0penses ta!' D' 4hange the value in the +Markup :mount or %/ !o0 to the ne0t markup and then turn on the checkmark cell for the e0penses at this markup' 4lick <6 to close the dialog !o0' E' >epeat steps XD for each additional markup' This techni)ue #orks 2ust as #ell #hen some of the e0penses are ta0a!le and others aren=t' 8impl% choose the ta0a!le items? turn on the +8elected e0penses are ta0a!le/ check!o0? and then add the ta0a!le e0penses to the invoice' Be0t? reopen the +4hoose Billa!le Time and 4osts/ dialog !o0? choose the nonta0a!le items? turn off the +8elected e0penses are ta0a!le/ check!o0? and then add the nonta0a!le e0penses to the invoice'

!hecking for %n.ille !osts


Most 4ustomers - >eceiva!les reports focus on charges %ou=ve alread% invoiced' If %ou invoice customers for reim!ursa!le e0penses? forgetting to invoice for these reim!ursa!le costs takes a !ite out of %our profits' 8o !e sure to regularl% run the ;n!illed 4osts !% Oo! report ">eportsM4ustomers - >eceiva!lesM;n!illed 4osts !% Oo!$ to look for e0penses that %ou=ve forgotten to invoice' This report sho#s costs that %ou designated as !illa!le to a customer or 2o! !ut haven=t %et added to an invoice'

Invoicing for Backordered ,roducts


,lacing a product order to fulfill %our customers= orders is kno#n as a !ackorder' If !ackorders are a regular part of %our !usiness da%? %ou should consider finding suppliers #ho deliver more )uickl% and ma%!e upgrading to QuickBooks ,remier or .nterprise? #hich have a !uilt*in sales order form for tracking !ackordered items' If %ou have QuickBooks ,ro? %ou can handle !ackorders using pending invoices'

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QUICKBOOKs 2014: tHe MIssInG

W%en <(1 te// .1st(3e&s t%*t * 2&()1.t is (1t (? st(.0+ t%e< 3i,%t

the !ackorders in different #a%s' Aere are the most common re)uests for !ackorders: V Re'ove the .ackor ere ite's fro' the or er@ 4ustomers in a hurr% ma% ask %ou to fill the order #ith onl% the products %ou have in stock' If the% can=t find the !ackordered products an%#here else? the% can call in a ne# order' V $hi& all ite's at once@ If convenience is more important than speed? %ou can hold the customer=s order until the !ackordered products arrive and then ship the #hole order at once' V $hi& .ackor ere ite's <hen they arrive@ Man% customers re)uest that %ou process their orders for the products %ou do have in stock and then send the !ackordered products #hen %ou receive them' If %our customer #ants %ou to remove !ackordered items from an order? %ou can ship the rest of the order and invoice the customer immediatel%' But #hen customers ask %ou to hold all or part of their orders until !ackordered products arrive? the% usuall% e0pect %ou to invoice them for !ackordered products onl% #hen %ou ship them' If that=s the case? %ou don=t #ant the income appearing in %