1. IntroductionWelcome| 00:00 | Hi. My name is Suzanne Robertson and welcome
to QuickBooks Pro 2008 Essential Training.
| | 00:06 |
Over the next few hours we will be talking about accounting
principles and how you should relate them to your business
| | 00:12 | along with covering the basic to
intermediate functions of the program.
| | 00:16 | When working with an accounting program is important to not only
know how to make an entry but also why you are making an entry.
| | 00:23 | Why should I recognize revenue at the time
of the sale instead of when I am paid?
| | 00:29 | Why should void an invoice rather than delete it?
| | 00:32 | Why should I recognize an expense at the time
I receive the goods and not when I pay for them?
| | 00:39 | Understanding the whys in addition to the hows will better
prepare you for keeping track of your company's revenue
| | 00:45 | and expenses, which in turn will make your life much easier
| | 00:49 | when it comes to tax reporting, borrowing money
from a creditor, or selling your business.
| | 00:54 | So sit back, relax, and let's get started
with QuickBooks Pro 2008 Essential Training.
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| Understanding QuickBooks Pro| 00:01 | What is QuickBooks Pro?
| | 00:03 | Well I'm glad you asked.
| | 00:04 | QuickBooks Pro is an accounting program
designed for small to medium-sized businesses.
| | 00:09 | It keeps track of your customer and vendor information
i.e. checks, invoices, statements, credit memos, etc.
| | 00:16 | It keeps detailed records of how much you have in the bank,
| | 00:19 | How much inventory you have and who you owe money to.
| | 00:23 | It produces financial statements, which allow you to view your
income, expenses, assets, liabilities, and equity in report formats.
| | 00:32 | And it will also allow up to five users to access
the program at one time, but with some limitations.
| | 00:38 | Now what won't QuickBooks Pro do?
| | 00:41 | If you're in the business of manufacturing parts
that you assemble into a finished product,
| | 00:45 | QuickBooks Pro is not a good solution for you.
| | 00:48 | Let's say that you manufacture and sell bikes. You manufacture
the bike parts, frames, wheels etc. and then assemble them into a
| | 00:56 | finished bike.
| | 00:57 | QuickBooks Pro will not provide you a good way to track the
assembly of the individual parts into the finished goods.
| | 01:04 | For this you will need QuickBooks Premier and you can
find it at the QuickBooks web site at www.QuickBooks.com.
| | 01:12 | Another thing that QuickBooks Pro does not do
is track inventory stored in multiple locations.
| | 01:18 | If you need to track your inventory
among multiple physical locations,
| | 01:23 | you may need QuickBooks Enterprise Solutions,
which is partnered with Velocity Inventory.
| | 01:28 | I suggest you check out Intuit's web site to see the various
solutions they offer that are tailored to meet your business'
| | 01:34 | specific needs.
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| Learning how this title works| 00:00 | In this title, we will be covering an extensive amount of
information regarding not only QuickBooks Pro 2008 but also
| | 00:07 | basic accounting principles and methodologies.
| | 00:11 | In chapters 1 and 2 we will discuss what you will be learning
in this title and what QuickBooks Pro will and won't do.
| | 00:17 | We will cover basic accounting methods such
as double entry and accrual-based accounting.
| | 00:22 | In addition to reviewing two of the most important financial
reports an accounting system offers: the income statement
| | 00:27 | and the balance sheet.
| | 00:29 | In Chapter 3, we will take you through the easy step interview,
| | 00:33 | starting with what information you need to gather before starting
interview all the way through setting up your company and
| | 00:39 | creating your company file.
| | 00:40 | In chapter 4 we deal with the QuickBooks environment
| | 00:43 | and how you navigate in the program and customize your view so
that you can find the features and functions you use easily.
| | 00:50 | In Chapter 5 we will discuss the chart of accounts, which is the
organizational system for your company's financial information.
| | 00:57 | In chapters 6 and 7 we will cover setting up items.
| | 01:01 | Items can be things that you sell and they can
be things that you buy to run your business.
| | 01:05 | We will also look at how to create a sales tax item so
you can appropriately tax the items that you are selling.
| | 01:11 | In chapters 8, 9, and 10 we cover everything related your customers.
| | 01:16 | We will cover how to find information on your customers
quickly and easily, how to create a new customer,
| | 01:21 | invoice a customer and receive customer payments.
| | 01:24 | In chapters 11, 12, 13 and 14 we look
at everything related to your vendors:
| | 01:30 | How to find information on your vendors quickly and
easily, how to create a new vendor, enter vendor bills,
| | 01:36 | pay vendor bills and track inventory.
| | 01:40 | In chapters 15 and 16 I will show you where to find the preset
reports that QuickBooks offers and a few sample reports that
| | 01:46 | I feel help you with the day-to-day operations of your business.
We will also see how you modify an existing report to tailor it to
| | 01:53 | your own specific business needs, as well as exporting
the information into another program such as Excel.
| | 01:59 | Chapter 17 will show you how to pay the sales tax you've
collected from your clients and how to manually adjust your
| | 02:05 | inventory.
| | 02:06 | In Chapter 18 we will discuss two features of QuickBooks
that can cause you problems if you don't understand how to
| | 02:12 | use them properly: memorized transactions and closing of periods.
| | 02:16 | As you can see we have lot a work ahead of us. Before we
get started, I just want to impart a word of warning to you,
| | 02:23 | which I will do in the next movie.
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| A word of warning| 00:01 | Like all things in life, there are rules
we must follow or suffer the consequences.
| | 00:06 | Accounting does not have exact rules, but rather guidelines
that if ignored, may carry serious repercussions with
| | 00:12 | certain government agencies. This would be a bad thing.
| | 00:16 | Luckily for you, this course and a good tax
attorney should keep you out of trouble.
| | 00:21 | There are accepted assumptions and principles that have
been developed for accounting and you will find that once
| | 00:27 | you understand these principles, basic
accounting concepts become more understandable.
| | 00:32 | People often refer to them as generally
accepted accounting principles or GAP.
| | 00:36 | I will be discussing a few of these accounting principles
throughout the title in order to better prepare you for working
| | 00:42 | with the application.
| | 00:43 | There will be some information regarding GAP that I will
not cover because this title is designed to teach you the
| | 00:49 | QuickBooks application not accounting.
| | 00:52 | However, the information I will be providing will be more
than adequate for you understand the basic concepts you need
| | 00:58 | to be successful in setting up and maintaining
your company 's financial record-keeping.
| | 01:03 | I strongly recommend you consult with your CPA or
accountant to understand your own specific City, County,
| | 01:11 | state or country's legal requirements to
ensure you are in compliance with their laws,
| | 01:18 | and that you apply the proper accounting methods for your business.
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| Using the exercise files| 00:00 | If you are a premium member of the lynda.com training library
| | 00:04 | or if you're watching this tutorial on a disk,
| | 00:08 | you have access to the exercise files used throughout this title.
| | 00:12 | Each chapter of the title has a corresponding
folder in the exercise files folder.
| | 00:16 | At the beginning of each chapter,
| | 00:18 | you can open up the QuickBooks exercise files to follow
along with the movies contained within this chapter.
| | 00:24 | The QuickBooks program is date driven,
meaning when you launch the program
| | 00:28 | QuickBooks will default to the date your
computer's internal clock is set to.
| | 00:33 | This can cause the exercise file to look
drastically different than what you see on the screen.
| | 00:38 | The simple solution is to change your computer's
internal clock to the dates we used to record this title.
| | 00:44 | The dates we used are January 1st
and 2nd 2008 for chapters 1 through 14
| | 00:50 | and February 29th 2008 for chapters 15 to 18.
| | 00:55 | To change your internal clock, if you're using Windows,
just go to the Control Panel, Date and Time.
| | 01:03 | If you're on a Mac, go to the System Preferences, Date and Time.
| | 01:08 | If you need further help with this please check out lynda.com
Online Training Library title for your operating system.
| | 01:15 | And remember, change the date back
after you're done following along.
| | 01:20 | If you don't want to reset your computer's clock,
| | 01:23 | you can still follow along, but know that you will have
to change the date filter range inside QuickBooks for the
| | 01:29 | different transactions we will be looking at.
| | 01:34 | If you're a monthly or annual subscriber to the lynda.com Online
Training Library, you don't have access to the exercise files,
| | 01:42 | but you can follow along by simply loading the
program and starting the easy step interview.
| | 01:47 | You don't and probably shouldn't try to set up your own
company's file at the same time you're learning this program.
| | 01:55 | But you can create a dummy file with which to follow along.
| | 01:59 | Okay, let's get started.
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2. Basic Accounting PrinciplesUnderstanding the big picture| 00:00 | Before you begin using an accounting program like QuickBooks,
you should understand the basic function of it.
| | 00:06 | An accounting system is nothing more than
a way to organize financial information.
| | 00:11 | Yep,
| | 00:12 | that's it.
| | 00:13 | Pretty simple I know, but that is the
basic function of an accounting system.
| | 00:18 | This financial information can then be used to provide
accurate reports to the people who need it most.
| | 00:24 | People like business owners and employees,
| | 00:27 | creditors,
| | 00:29 | and government agencies.
| | 00:31 | Now there are many types of reports an accounting system produces.
| | 00:34 | And later on in this title we will look at
some of the preset reports QuickBooks has to offer.
| | 00:40 | But first in the next two movies, we are going to talk
about two main reports all accounting systems produce:
| | 00:46 | the income statement
| | 00:48 | and the balance sheet.
| | 00:50 | In a nutshell the income statement summarizes your
revenues and expenses for a specific period of time
| | 00:56 | and lets you know if you've made or lost money.
| | 01:00 | The balance sheet summarizes your company's assets,
| | 01:03 | liabilities and equity,
| | 01:05 | which will let you know the net worth
of your company at any point in time.
| | 01:10 | This is the same thing in saying, "If I took everything I owned
| | 01:14 | and paid off everything I owe,
| | 01:17 | what amount of money would I have left?"
| | 01:19 | if you don't understand these concepts don't worry.
| | 01:22 | I'll be covering them in more detail in the next two movies.
| | 01:25 | Besides the benefit of QuickBooks creating these financial
reports, QuickBooks keeps all your financial data in one, neat,
| | 01:32 | organized file. You won't have to manually add sales receipts
to know what your total revenue was for the year anymore.
| | 01:40 | Gone are the days of scrounging through mounds of paper looking
for a copy of a check you wrote to know if you paid the bill.
| | 01:46 | Gone are the headaches.
| | 01:48 | QuickBooks will keep accurate records of all your transactions
and will help you manage your business by providing
| | 01:54 | financial data that you can use to
evaluate your company's performance
| | 01:58 | and make smart business decisions
that will keep your business profitable.
| | 02:03 | Remember,
| | 02:04 | keeping your financial information in an accounting program
like QuickBooks will not only help you manage your business
| | 02:10 | but it will make your life that much easier when
you're trying to process a loan from a bank,
| | 02:15 | looking to establish credit,
| | 02:17 | or paying your taxes at the end of the year.
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| Creating an income statement| 00:01 | As we discussed in our previous movie,
| | 00:03 | QuickBooks organizes your financial information into accurate
reports that you will use to guide your business in a
| | 00:09 | profitable direction.
| | 00:11 | One of the most important financial reports an
accounting system produces is the income statement,
| | 00:16 | which is also known as a profit and loss statement.
| | 00:19 | The income statement summarizes a company's
revenue and expense for a specific period of time
| | 00:26 | and will let you know if your company is making or losing money.
| | 00:30 | Which I am sure I don't have to tell you is important for you
to keep track of. It will also track the profitability of the
| | 00:36 | products you are selling by showing the
costs associates with the products you sell,
| | 00:40 | in addition to the revenue they earned.
| | 00:43 | Revenue is the money you earn by selling and
providing products and services to your clients.
| | 00:49 | Expenses represent the money you spend
| | 00:52 | on products and services to run your business.
| | 00:55 | OK,
| | 00:56 | let's look at an example of a simple income statement.
| | 00:59 | At the top is listed the name of the company,
| | 01:02 | the type of report,
| | 01:04 | and the specific period of time that is being reported.
| | 01:07 | As I mentioned, an income statement reports
revenue and expenses for a specific period of time,
| | 01:13 | and in this case we're looking at the month of January 2008.
| | 01:18 | As you can see
| | 01:19 | the income is listed at the top of the report.
| | 01:22 | This represents our sales for the month of January.
| | 01:25 | In addition to income, costs of goods
sold and gross profit are also shown.
| | 01:31 |
By deducting the cost of goods sold from our income
| | 01:34 | we are left with our gross profit.
| | 01:38 | We're going to be covering costs of goods sold and
gross profit in greater detail in the next movie.
| | 01:43 | On the second half of the report shows our company's expenses.
If we want to know how much money we made for the period,
| | 01:50 | We simply deduct the total expenses from the gross profit.
| | 01:54 | If our gross profit exceeds our total expenses
then we made many and retained a net profit.
| | 02:00 | Now, what would happen if we had a bad month?
| | 02:03 | If our sales drop and our total
expenses are greater than our gross profit,
| | 02:08 | then we lose money and our business suffers a loss.
| | 02:12 | Remember, the purpose of an income statement is to keep track
of your revenue and expenses for a particular period so that you
| | 02:19 | will know if you're making or losing money.
| | 02:22 | You can prepare income statements annually,
| | 02:25 | monthly,
| | 02:26 | quarterly,
| | 02:27 | or even daily.
| | 02:28 | I recommend for most companies you generate monthly statements.
| | 02:32 | I find it very helpful to review revenue and expenses
on a regular basis. This will help you spot trends in your
| | 02:39 | spending and sales that you can then use to help
guide your business in a profitable direction.
| | 02:46 | We will look at a standard income statement
in QuickBooks later on in this title.
| | 02:51 | But to find the report in QuickBooks,
| | 02:54 | go to Reports on the Menu bar,
| | 02:57 | select Company and Financial,
| | 02:59 | and then choose either your Standard
or Detail Profit and Loss Statement.
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| Understanding the cost of goods sold| 00:01 | As we saw in the previous movie,
| | 00:03 | the income statement is broken into
two sections: revenue and expense.
| | 00:08 | The revenue section lists all the income associated
with the products and services that we sell.
| | 00:13 | the expense section lists all of the expenses
associated with operating your business.
| | 00:19 | In addition to revenue and expense,
| | 00:21 | the income statement also contains cost of goods sold.
| | 00:24 | The cost of goods sold is a figure reflecting the cost of
the product or service that your business sells to generate
| | 00:31 | revenue.
| | 00:32 | This expense appears on the income statement as a separate line item.
| | 00:38 | The reason this expenses is kept separate is so you can track
what you are making on the products and services that you sell.
| | 00:44 | To give you an example,
| | 00:46 | let's say we sold a coffee mug for ten dollars,
| | 00:49 | but it costs four dollars to purchase.
| | 00:52 | Our revenue is ten dollars for the sale.
| | 00:55 | Our cost of goods sold is four dollars.
| | 00:57 | We subtract the cost of goods sold from the revenue
| | 01:01 | and are left with a gross profit of six dollars or
what's also known as a gross margin of 60 percent.
| | 01:07 | The six dollars is the amount of money we made
on the sale once we deduct the cost of the product.
| | 01:15 | In using our sample income statement we
can see that our total income was $11,500.
| | 01:21 | However, it cost us $1,900 to buy the items we are selling.
| | 01:26 | Because we know the cost of the items, we can see
that our true revenue or gross profit was only $9,600,
| | 01:34 | or an 83 percent gross margin.
| | 01:37 | Finally, once we deduct the rest of our expenses
| | 01:40 | we will know our net profit, which is
the money we made for the period.
| | 01:45 | As you can see, keeping track of the cost of products and
services that you are selling will allow you to measure
| | 01:51 | your profitability on those items.
| | 01:53 | This information will help you make smart business decisions
in targeting those products and services that you sell that
| | 02:00 | make you the most money.
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| Using a balance sheet| 00:01 | Like the income statement
| | 00:03 | the balance sheet is one of the most important
financial reports an accounting system produces.
| | 00:08 | The balance sheet summarizes your company's current
value or net worth or at any given point in time.
| | 00:13 | Let me say that again.
| | 00:15 | A balance sheet summarizes your company's current value
| | 00:19 | or net worth at any given point in time.
| | 00:22 | Now some of you may be saying, "OK Suzanne, that's
great, thanks, but what exactly does that mean?"
| | 00:28 | Well, I'm glad you asked.
| | 00:30 | If you remember from the previous movie we saw, the income
statement tracks revenue and expense accounts to let us know
| | 00:36 | if we've made or lost money.
| | 00:39 | The balance sheet tracks everything else.
| | 00:41 | The balance sheet tracks everything that we own,
| | 00:44 | everything that we owe,
| | 00:46 | and the net value between the two.
| | 00:48 | These accounts are called assets,
| | 00:50 | liabilities,
| | 00:52 | and equity.
| | 00:53 | And before you can understand what a balance sheet is,
you first have to understand what assets, liabilities, and
| | 00:59 | equity are.
| | 01:01 | An asset is something that the business owns.
| | 01:04 | Some examples of assets you might find on a balance sheet
| | 01:07 | are: cash you have in your checking account,
| | 01:09 | accounts receivable which is the
money that your customers owe you,
| | 01:13 | an inventory of the products that
you sell or equipment that you own.
| | 01:17 | Liabilities are monies that the business owes to other people.
| | 01:21 | This can be a bank loan,
| | 01:23 | accounts payable which are your vendor bills,
| | 01:25 | or perhaps credit card debt.
| | 01:29 | Equity is a term whose meaning depends very much on the contacts.
| | 01:33 | In general,
| | 01:34 | think of equity as ownership in any asset
| | 01:37 | after all debts associated with that asset are paid off.
| | 01:41 | To help give you a visual,
| | 01:43 | let's put this concept into a mathematical formula:
| | 01:47 | assets - liabilities
| | 01:49 | = equity.
| | 01:51 |
| | 01:52 | A good example of this is let's say you
own a building that is valued at $500,000
| | 01:58 | but you owe $200,000 to the bank.
| | 02:02 | Since you can readily sell it for cash,
| | 02:04 | the owner's equity or net value of the building
is $300,000. If we look at this in our formula:
| | 02:11 | assets,
| | 02:13 | a $500,000 - our liability of $200,000
| | 02:17 | = our equity of $300,000.
| | 02:20 | Let's look at another example.
| | 02:22 | This time the owner puts $10,000 of his own personal
money into the business for various business expenditures.
| | 02:30 | On the company's books the transaction
would be recorded as follows.
| | 02:34 | Equity is increased by $10,000.
| | 02:37 | The cash or company business checking
account is also increased by $10,000.
| | 02:42 | And if we look at it in our formula:
| | 02:44 | assets - liability, which in this case is zero
| | 02:48 | = our equity.
| | 02:50 | Now that you know what assets, liabilities, and equity
are, let's take a look at a simple balance sheet.
| | 02:58 | At the top is listed the company name,
| | 03:01 | the type of report,
| | 03:03 | and the point in time being recorded.
| | 03:05 | For this balance sheet we're reporting on our
company's net worth as of December 31, 2007.
| | 03:12 | Now remember,
| | 03:14 | as we just talked about
| | 03:15 | the balance sheet reports on the company's assets
| | 03:18 | which are the things that we own, our liabilities
which are the things that we owe to other people,
| | 03:24 | and our equity which is the value or net worth of our company.
| | 03:28 | This balance sheet is an example of
how you enter your beginning balances.
| | 03:32 | It's dated December 31st of 2007 and our start date of our business or
the day we're going to start operating is going to be January 1st of
| | 03:41 | 2008.
| | 03:43 | We have $20,000 in assets;
| | 03:46 | $10,000 came from a bank loan.
| | 03:50 | And another $10,000 came from the
owner putting money into the company.
| | 03:55 | Net income is currently zero because our first day or start
date will be January 1st, 2008, so we do not have any revenue
| | 04:03 | or expense yet to report.
| | 04:05 | One of the most important things you need to know
about a balance sheet is that it needs to balance,
| | 04:09 | thus the name.
| | 04:11 | To balance, the total assets
| | 04:13 | must equal the total liabilities
| | 04:16 | plus equity.
| | 04:18 | In looking at our example balance sheet,
| | 04:20 | total assets shows $20,000. And remember from the previous slide
that money came from a bank loan of $10,000, and our owner's
| | 04:28 | equity of $10,000.
| | 04:30 | Total liabilities in equity then show as $20,000
| | 04:34 | and our assets = our liabilities + equity. This is no
coincidence. When you create your company in QuickBooks and enter
| | 04:42 | your beginning balances, QuickBooks will automatically try
to balance your balance sheet for you using a method of
| | 04:49 | accounting called double entry accounting.
| | 04:52 | Double entry accounting is what keeps the balance sheet in
balance. We're going to talk in detail about double entry
| | 04:58 | accounting in the next movie and how to enter beginning balances
in creating accounts in QuickBooks later in this title.
| | 05:04 | Let's see what happens to a balance sheet
after one month of doing business.
| | 05:08 | At the end of the following month, which is January 31st, 2008,
we have an increase in our assets and an increase in our equity
| | 05:16 | of $25,700.
| | 05:19 | If we look at the income statement for the month of
January, we see that we had a net profit of $5,700.
| | 05:26 | This net profit flows onto the balance sheet into equity
| | 05:30 | through the net income line.
| | 05:32 | It also increases our assets by $5,700
| | 05:35 | which kept our balance sheet in balance.
| | 05:39 | I think the best way to think of a balance sheet is
that it lets you know how solvent your company is.
| | 05:45 | If I closed my business today and paid off my entire debt,
| | 05:50 | how much money would I have left?
| | 05:52 | That's what the balance sheet tells you.
| | 05:54 | I would strongly recommend to review your balance sheet monthly.
It should coincide with the end of the period for which your
| | 06:01 | income statement was prepared.
| | 06:03 | Understanding your company's financial statements will
empower you when it comes time to negotiating with a lender
| | 06:09 | for credit or if down the road
you're looking to sell your business.
| | 06:13 | To find this report in QuickBooks go to the Menu bar,
| | 06:17 | select Company and Financial,
| | 06:19 | and then choose a Standard or Detailed
balance sheet you'd like to see.
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| Using double-entry accounting| 00:00 | First I want you to know that QuickBooks
does double entry accounting for you.
| | 00:05 | You could skip this movie and still
use QuickBooks without a problem.
| | 00:09 | The reason I have included this movie
| | 00:11 | is because if you're going to do your own bookkeeping, there
are two accounting methods that I feel everyone should have at
| | 00:16 | least a general understanding of:
| | 00:18 | double entry accounting
| | 00:20 | and accrual-based accounting.
| | 00:22 | We are going to cover accrual-based accounting in our next movie.
| | 00:25 | Most of you are probably familiar with single entry accounting.
| | 00:29 | In single entry accounting you deposit money
and the bank increases or debits your account.
| | 00:34 | When you take the money out the bank
decreases or credits your account.
| | 00:39 | In double entry accounting there are two
entries made to the transaction instead of one.
| | 00:44 | Unlike single entry counting, double entry accounting shows us
not only where the money is going but also where it came from.
| | 00:51 | Double entry accounting provides a system of
checks and balances by summing all of the debits
| | 00:56 | and summing all of the credits and comparing the totals. If
the two totals do not equal, you are out of balance which means
| | 01:04 | you've made a mistake.
| | 01:06 | This ties back to the balance sheet
| | 01:08 | and what keeps it in balance.
| | 01:10 | As you can see in the example, we've
increased our cash account by debiting it.
| | 01:15 | And we've also increased our revenue account by crediting it.
| | 01:18 | I'm sure you're wondering how do you know when to debit and
credit something and how you know whether that increases or
| | 01:25 | decreases it.
| | 01:28 | Debits and credits increase or decrease
account balances based on the type of account.
| | 01:34 | Asset and expense accounts, you debit to increase them
| | 01:38 | and you credit to decrease them.
| | 01:40 | Liability, equity, and income accounts,
| | 01:43 | you credit to increase
| | 01:45 | and debit to decrease.
| | 01:48 | Now I know this may not make a lot of sense yet,
| | 01:51 | but I'm going to show you a chart that I put together that may
help. This is called T accounts. Someone showed this to me when
| | 01:58 | I was just starting out in accounting and I found them to be
incredibly helpful. The T forms two columns, debits on the
| | 02:05 | left and credits on the right.
| | 02:07 | Each account formed it's own T and as you can see it gives you
a quick reference on how to increase or decrease an account.
| | 02:15 | In a previous movie we discussed asset, liability, and equity
| | 02:20 | are associated with your balance sheet.
| | 02:22 | And revenue and expense are
associated with your income statement.
| | 02:27 | As you can see that's broken out here in this slide. So this
gives you a quick, easy reference and I'm going to provide this
slide in an exercise file so at any time you can print it out
| | 02:37 | and put it up on your wall and use it as a reference point
for when you're doing your own accounting work in QuickBooks.
| | 02:43 | Now at this point, I'm sure it's all as clear as mud to you.
| | 02:47 | Remember, QuickBooks performs the double entry accounting
so you will not need to memorize this information.
| | 02:53 | However you want to try and understand the concept behind
double entry accounting. The whole idea is to provide a way to
| | 02:59 | ensure you that entered your financial information correctly.
If your debits don't equal your credits, then your balance
| | 03:06 | sheet will not balance.
| | 03:09 | Let's look at an example of a transaction you would post
in QuickBooks that may help you see how this would work.
| | 03:18 | We're going to sell an item for $100 and invoice the client.
| | 03:22 | The client is going to pay us later for the sale.
| | 03:24 | This is called accrual-based accounting and we're going to discuss
it in the next movie in detail. But just so you understand, the idea
| | 03:31 | behind accrual-based accounting is you sell the item today and the
client pays you later. You're going to book the revenue and earn
| | 03:38 | it today because the client has received their product,
but they're going to pay you at a later date.
| | 03:43 | When we sell an item
| | 03:44 | we're going to post that money to our revenue account.
| | 03:47 | Now remember in the previous slide,
revenue accounts are income accounts
| | 03:51 | and we need to increase our revenue account by the $100 of the sale.
| | 03:56 | What do we want to do when we want to increase an income account?
| | 03:59 | We credit it.
| | 04:01 | OK now, in double entry accounting you have to
affect two accounts for the one transaction.
| | 04:07 | So we've sold something,
| | 04:08 | we've posted the sale in our revenue account,
| | 04:11 | and now we have to create the second entry.
| | 04:14 | Because the client is going to pay us later, we're going
to post that money in what is called accounts receivable.
| | 04:20 | Accounts receivable is money that the client owes you. They're
going to pay you at a later date and so you're going to keep track of
| | 04:27 | that debt or that money that's owed
to you through accounts receivable.
| | 04:31 | Now, accounts receivable is an asset account.
| | 04:34 | And we want to increase the asset account by $100.
| | 04:38 | How do we increase an asset account?
| | 04:40 | Well, if we look at the chart we put together of our T accounts
we can see that asset accounts are increased by debiting them.
| | 04:46 | So we're going to debit our accounts receivable by $100.
So now let's look at our transaction for a minute.
| | 04:52 | We've sold something and we've invoiced it. What's happening
behind the scenes is QuickBooks is our revenue was increased by
| | 04:58 | $100 so we credited it,
| | 05:00 | and accounts receivable was also
increased by $100 and we debited it.
| | 05:05 | OK now, that's how it's going to sit until the client pays us.
So, the client now has paid us and we've received the payment and
| | 05:12 | we have to record that money in QuickBooks.
| | 05:15 | So if we're going to record it in QuickBooks
what's the first account we have to affect?
| | 05:19 | Well, that would be our cash account. We want to record the money.
| | 05:23 | Cash is an asset.
| | 05:24 | We want to increase cash by $100. That's the
payment. How do we increase our asset account?
| | 05:30 | We look at accounts receivable, which is also an asset.
| | 05:33 | We debit it.
| | 05:35 | So we're going to debit cash $100 the money that we were paid.
| | 05:39 | Remember accounts receivable is used for the money people owe you.
| | 05:44 | These people have now paid us. That means we have to
reduce accounts receivable by the $100. We have to lower
| | 05:51 | the amount owed since it is no longer due.
| | 05:55 | So, how do we lower an asset account?
| | 05:58 | Well, if we debit it to increase it then the opposite
would hold true to decrease it. We're going to credit it.
| | 06:05 | So you can see the corresponding entry here. We
originally had the time of the sale increased revenue,
| | 06:12 | and we increased the money owed to us through accounts receivable.
| | 06:15 | When it was paid to us we increased our cash and then
we lowered accounts receivable, because the money was no
| | 06:21 | longer owed to us.
| | 06:24 | This may be a confusing concept to you, but I want you
to remember this movie as we begin working with QuickBooks.
| | 06:30 | When we get to chapter 9 and look at invoicing customers
| | 06:34 | and Chapter 10, client payments,
| | 06:36 | I want you reference back to this movie
| | 06:39 | as it will make a lot more sense
to you once you see it in action.
| | 06:42 | Remember, QuickBooks will take care of the double entry
accounting that goes on behind the scenes for you. The two most
| | 06:48 | important concepts to remember from this
movie are: two entries for every transaction
| | 06:54 | and those entries must equal one another
to keep your accounts in balance.
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| Differentiating accrual from cash-based accounting| 00:00 | Like double entry accounting,
| | 00:02 | accrual-based accounting is a standard accounting method.
| | 00:06 | Accrual-based accounting is the recognition of revenues
and expenses based on receipt of products and services rather
| | 00:13 | than payment.
| | 00:15 | In accrual-based accounting you have not earned the
revenue until the customer has received their product or
| | 00:21 | service just as you have not incurred the expense until
you have received the products or services you purchased.
| | 00:29 | The idea behind this principle is to prevent people from
incorrectly stating their revenue by recording sales based on
| | 00:36 | payment rather than the customers
receipt of the physical product.
| | 00:40 | If you record revenue based on when a customer pays you, you're
not following accrual-based accounting but rather cash-
| | 00:47 | based accounting.
| | 00:49 | Cash-based accounting is a method of accounting in which
the payment of cash is the basis for revenue recognition.
| | 00:55 | Cash-based accounting can distort the true income and expense
of your business and can incorrectly reflect your income.
| | 01:03 | Let's take a look at a cash-based sale to give you an idea
of what I am talking about. In a given period you have
| | 01:09 | sold many items
| | 01:11 | but you have collected little to no money.
| | 01:14 | However, you pay lots of bills.
| | 01:16 | Under the cash-based accounting you're only recording revenue
for items that you have been paid for so your income statement
| | 01:23 | look something like this.
| | 01:26 | You have total income of $5,000.
| | 01:29 | Your cost of goods sold is $1,300
| | 01:32 | leaving a gross profit of $3,700.
| | 01:36 | Your total expenses however were $3,900 which means you paid
out more money than you were paid during the period. And
| | 01:44 | that makes you suffer a net loss of $200.
| | 01:47 | Now, let's take a look at accrual-based to
compare how different the scenario would be.
| | 01:54 | In accrual-based accounting in a given period you sell and
deliver lots of products and services in addition to paying bills.
| | 02:02 | And in this accounting method you recognize the income and
expense at the time of delivery, so your income statement
| | 02:08 | look something like this.
| | 02:10 | You've got total income of $11,500.
| | 02:14 | Total cost of goods sold is only $1,900,
| | 02:17 | and your gross profit is $9,600.
| | 02:20 | Your total expenses are only $3900 so instead of a loss, we now
have a profit of $5,700. So, you can see the difference between the
| | 02:30 | two. In accrual-based accounting I'm recognizing the
revenue and expense at the time of receipt versus when someone
| | 02:37 | has paid me. And this can drastically
change how I report on my income statement.
| | 02:44 | Generally, the best method to use is accrual-based
accounting as it will get the most accurate reporting of your
| | 02:50 | finances. However, some businesses do report as cash-based
for tax purposes. If you're unsure as to what method is right
| | 02:58 | for your business you should consult with your CPA or accountant.
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|
|
3. The Easy Step InterviewPreparing for the Easy Step Interview| 00:00 | The two-step interview is designed for those people new to
QuickBooks. It will take you through a series of questions
| | 00:06 | that's designed to help build your company profile to tailor
to your business needs. If you're an old pro at QuickBooks or
| | 00:12 | upgrading from a prior version of QuickBooks,
you can skip the easy step interview.
| | 00:16 | Preparing for the easy step interview is going to require some things that
you're going to need beforehand. Numbre one, you need to think about your
| | 00:21 | conversion date or the date you're going to be starting to
use QuickBooks. This is important because that will determine
| | 00:27 | how much information from a detailed standpoint
you're going to want to bring into QuickBooks.
| | 00:32 | To give you an example, if we were a brand-new company, we had not been
in business before, and we were just going to be starting on the first
| | 00:38 | of the year January 1st, 2008. There is no prior history or
data we'd be bringing into QuickBooks. So there truly is not a
| | 00:44 | conversion date if you will, it's more of a start date,
| | 00:47 | January 1st, 2008. And then we would just go forward with populating
into QuickBooks all of our current business activities that
| | 00:53 | happening during the day. Most companies, of course, have been
operating for a period of time and they have information they
| | 00:58 | need take from one program and bring it into QuickBooks. You
need to choose what date you're going to want to bring that
| | 01:04 | information into QuickBooks on. The information that you need
to gather would be your balance sheet and your profit and loss
| | 01:09 | statement.
| | 01:10 | These two items contain the financial information you will
need to populate into QuickBooks. In addition to those two
| | 01:16 | items, you'll probably want to have your tax return available.
| | 01:19 | Your tax return contains your legal business name, your federal
tax ID number, and your method of accounting. All of these things
| | 01:24 | you're going to be asked during the easy step interview.
| | 01:27 | Your method of accounting, whether that's accrual-basis
or cash-basis, will be determined prior to coming into
| | 01:32 | QuickBooks. If you're unsure of that method, you should check
with your CPA or accountant. You may also want to have
| | 01:38 | available some detailed records for accounts payable and
accounts receivable. Dependendent upon the date you've chosen to
| | 01:43 | convert your data into QuickBooks will lead into how much
detailed information you want to bring in for accounts
| | 01:49 | receivable and accounts payable. Again, under the scenario that
we'll be running for our exercises thiss a brand-new company with
| | 01:55 | no history to it. You may also want to have availabe
| | 01:57 | some detailed information of accounts
payable and accounts receivable.
| | 02:01 | The level of information or level of detail of information
you need to bring in will be dependent upon the date you've
| | 02:06 | chosen to convert into QuickBooks. In addition to accounts
payable and accounts receivable you may need some detailed
| | 02:11 | information on your customers and your vendors. A list of
customer names, customer addresses, and phone numbers, and the same
| | 02:17 | for your vendors. This information again, you will want to populate
into QuickBooks. It will be a much easier for you if you have
| | 02:24 | this information readily available at the
time you're going through the interview.
| | 02:27 | During the course of the interview,
QuickBooks will ask you a series of questions.
| | 02:31 | One of the questions will be what type of industry are you. Are
you a construction-based company? A service-based company like
| | 02:36 | accounting? Depending on what type of industry you are
QuickBooks will then tailor your company profile to match and
| | 02:42 | maximize the benefits and features within QuickBooks to that company.
QuickBooks will also ask how you are organized. Are you incorporated?
| | 02:49 | Are you a sole proprietorship?
| | 02:50 | Are you a limited liability corporation? If you're
unsure you want to check with your CPA or accountant.
| | 02:56 | When will your fiscal year begin? This is an important question
and one if you are unsure again, you may want to consult with your
| | 03:01 | accountant or CPA.
| | 03:02 | A fiscal year is a 12-month period of time that is used to
calculate your company's financial information. Generally, fiscal
| | 03:08 | years run concurrently with the calendar year being January
through December. There are some exceptions to this rule. You will
| | 03:14 | find that some government agencies and schools may have an o
ffset beginning in June through July as their 12-month fiscal
| | 03:20 | reporting period. But commonly we see January 1st is used for the
beginning of your fiscal year and runs concurrently through the
| | 03:27 | calendar year.
| | 03:28 | Again, if you're unsure of this, you can check with your CPA or accountant
and they can advise you as to what your fiscal year should be.
| | 03:33 | Once you've answered all of these questions and gathered
your data you'll be ready to begin the easy step interview.
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| Upgrading from a previous version of QuickBooks| 00:00 | Before starting the easy step interview, we're going to talk
about upgrading your data from your previous version of QuickBooks.
| | 00:05 | If you're upgrading from QuickBooks Pro 2006 and
2007 you can go straight into QuickBooks Pro 2008.
| | 00:12 | If you're coming from a version prior to 2006 you need to first
do a preliminary conversion to 2006 and then convert to 2008.
| | 00:21 | Once you've done that you'll be ready
to go and start using QuickBooks.
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| Converting data from other programs| 00:00 | Prior to starting the easy step interview, you will have an
option if you are converting from another program or if you want
| | 00:05 | to skip the easy step interview. If you're converting from
another program, QuickBooks gives you some easy convert options
| | 00:11 | for the following: Quicken 98-2008, Peachtree 2001-2008,
and Microsoft Small Business Accounting and Office
| | 00:19 | Accounting 2006-2007. If you're coming in from any one of
these other programs, QuickBooks has built into it an easy
| | 00:25 | convert process wizard that will just take you
through step-by-step converting your data. If you will
| | 00:30 | be converting data from any of these programs, simply click
on the Convert button in the easy step interview startup
| | 00:36 | screen and it will take you through a step-by-step process.
| | 00:39 | If you have further questions in regards
to upgrading or converting your data,
| | 00:43 | you can go to www.quickbooksgroup.com.
| | 00:46 | They have an upgrade conversion center that can answer
questions as far as if you're upgrading from a prior version of
| | 00:52 | QuickBooks, if you're converting your data from Quicken or
Peachtree, or perhaps you're coming from another program and
| | 00:57 | you don't know how to get the data from that program into
QuickBooks. These helpful links may be able to answer some of
| | 01:03 | those questions for you.
| | 01:04 | In addition to converting or upgrading your data, you may be
trying to set up your company profile on a multiuser or network
| | 01:11 | environment. If you go to support.quickbooks.intuit.com,
| | 01:15 | you'll be able to find information on how to set up your
Company profile in a multiuser or networking environment.
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| Starting the Easy Step Interview| 00:28 | After you've installed QuickBooks on your system, you'll see
this icon now loaded on your Desktop called QuickBooks Pro 2008.
| | 00:35 | You can go ahead and double-click this icon
and it's going to go ahead and launch QuickBooks.
| | 00:39 | QuickBooks is launched and this brings you to this Main menu
here that gives you some choices. What we want to do is we're
| | 00:45 | going to Create a new company file.
| | 00:47 | If you are upgrading from a previous version of QuickBooks
Pro, you could go to Open an existing file and if you had 2006 or
| | 00:53 | 2007, it would take you through the conversion process. For
our exercise today, we're going to be creating a new company
| | 00:59 | file so we're going to click on that icon. This is the easy
step interview startup screen and you'll notice at the very
| | 01:04 | top here we have the Start interview button. This will launch
the easy step interview. And down here towards the bottom
| | 01:10 | left we have Convert data. This is what I was speaking about
in our earlier movie where if you were coming in from Quicken, or
| | 01:15 | Peachtree, or MS Accounting
| | 01:17 | software. At this point you could click on Convert data and
this would launch you into a new wizard for converting the data
| | 01:22 | from those programs into QuickBooks. Also if you're an old
pro, very familiar with QuickBooks, don't feel you need to go
| | 01:28 | through the interview process,
| | 01:30 | at this point you could skip the interview.
Just enter in your company information
| | 01:34 | and then go right into QuickBooks. For our exercise
today, we're going to go ahead and start the interview.
| | 01:39 | Our first screen is Enter your company information. If you look
here at the top, you'll see this red asterisk. And notice at the
| | 01:46 | bottom here, this tells you what
that means. It's a required field.
| | 01:48 | So what QuickBooks is telling you is that in this screen shot
the only required information it needs is your company name.
| | 01:55 | However, because we are setting up a brand-new company
in QuickBooks we're going to go ahead and fill in all the
| | 02:00 | information that we have pertaining to this company.
OK, I'm going to go ahead and type in our company name.
| | 02:05 | The name of our company is Eat Cake Patisserie. If I hit
the Tab key, you notice that it autofills in the name in the
| | 02:11 | Legal name section. Normally, the company name and the legal
name would be the same. The exception to this rule is if you're
| | 02:17 | operating under a DBA. A DBA is a doing business as name,
meaning that I have a legal name for my entity, however, I
| | 02:25 | do business as this name. An example of that would be if my
legal name was Suzanne Robertson Incorporated, but I was doing
| | 02:33 | business as Suzanne Robertson.
| | 02:35 | Thereby I would have two different names. In this
case our company name and our legal name is the same.
| | 02:41 | So we're going to leave it as such.
| | 02:43 | My federal tax ID number that I need to complete in this
field again is provided on your tax return form. The number
| | 02:50 | will depend on how your organization
| | 02:52 | is held. Are you incorporated?
| | 02:55 | Are you a sole proprietorship or a limited liability corporation?
| | 02:59 | If you're unsure of the number to populate in this field
you should check with your accountant or CPA. Our company is a
| | 03:05 | corporation so we're going to go ahead
and fill in our Federal tax ID number.
| | 03:09 | (Typing.)
| | 03:13 | And to our next field which is our Street
address and we're going to go ahead and complete that
| | 03:18 | right now as well.
| | 03:24 | (Typing.)
| | 03:31 | And we're going to complete the Phone number.
| | 03:35 | And for the purpose of this exercise all of this information
that I am filling in for our company is fictitious. You would
| | 03:42 | complete, of course, all of your
actual information for your company.
| | 03:46 | And we're going to enter our E-mail address.
| | 03:49 | (Typing.)
| | 03:57 | At this point we can go ahead and click on Next.
| | 04:01 | Select your industry allows QuickBooks to know what type of
business you're running so we can turn on certain features
| | 04:07 | within the program that'll best suit your business needs.
You can see there's a long list to choose from. If you cannot
| | 04:13 | find your type of business, simply choose the one that is
closest to it. QuickBooks will assign features to that industry and
| | 04:20 | then later on you can choose to turn them off or select
other features that you feel may be a more appropriate for your
| | 04:26 | business.
| | 04:27 | We are going to select Restaurants and catering
| | 04:31 | or bar.
| | 04:34 | And we're going to click on Next.
| | 04:36 | How is your company organized? This is where QuickBooks
asks you how is your company organized or held. Are you a
| | 04:43 | corporation, also known as a regular or C corp? Are you
sole proprietorship or perhaps a limited liability corp?
| | 04:50 | After selecting the type of business entity you are, QuickBooks
will know what type of tax form is best suited for your entity.
| | 04:57 | We're going to go and select a
Corporation for our business entity.
| | 05:02 | QuickBooks is now asking to select
your first month of your fiscal year.
| | 05:06 | And as we discussed previously, you have to determine what 12
months you want to use for reporting of your financial information.
| | 05:13 | As you can see QuickBooks defaults to January because that
is the recommended timeframe for starting. We're going to go
| | 05:19 | ahead and leave that, but if you notice there is a dropdown
arrow and if you click in it, it does give you all 12 months of the
| | 05:25 | year for you to choose from. So if you had an alternate
timeframe to start with, you would simply select that month
| | 05:31 | and it would populate in this field. We're
going to go ahead and leave it selected for January.
| | 05:37 | QuickBooks allows you to add a password to your system to
protect your company file and its contents. Generally, passwords
| | 05:44 | are used in a multiuser environment but
you can use them for single-user as well.
| | 05:48 | In a multiuser environment not only are you allowed to assign
passwords to each user, but you can assign levels of authority or
| | 05:55 | areas of the data they can access based on that password.
This comes in handy when you have someone who perhaps is just
| | 06:02 | a bookkeeper for your company
| | 06:03 | and all you want them to be able to access is your payroll
section, but you don't want them to see any other data within
| | 06:08 | the company. Or perhaps you have someone who's just the accounts
receivable clerk and you do not want them to have access to
| | 06:14 | your payroll or accounts payable information. You can assign
them a password in that level of authority and QuickBooks will
| | 06:19 | limit them as far as the data they can
see in all other areas of the company.
| | 06:23 | You always have to set one person up as the administrator who has
access to all areas of the company. You can also use it in an area
| | 06:29 | where there are only is a single-user, and by turning on
the password feature you're preventing other people who may
| | 06:35 | have access to your computer to be able to
access your file. Passwords are optional,
| | 06:40 | you do not have to turn them on. But they are a good security feature
and we do recommend at least one person having a password for
| | 06:46 | for accessing the company file. For exercise purposes today,
| | 06:50 | we're going to leave this feature off. But I would strongly recommend,
whether you're in a multiuser environment or single-user, that for your
| | 06:56 | own company file you do assign a password. At this point we're
ready to create our company file. We're going to go ahead and click
| | 07:02 | on Next.
| | 07:04 | And QuickBooks is going to take us into our File Save as window.
| | 07:07 | And here we have our choices of where we're going to locate
our company file and what we're going to name it. QuickBooks
| | 07:13 | will default on your system and you can choose to change those
defaults if you like. That will be based on your own company
| | 07:18 | business needs. If you notice at the top here you have the Save in
window and it shows you where it's going to be saving the file. At
| | 07:25 | that time you can choose to save it in another place.
We're going to go ahead and leave it in the default.
| | 07:30 | You can see that QuickBooks also has populated our company
name as our file name and we're going to go ahead and leave
| | 07:36 | it as such. And it is giving us the default file type, which is
how we want to save it. We don't want to change that file type
| | 07:41 | structure. Now we are going to click on Save.
| | 07:49 | We've completed the first half of our easy step interview and
in the next movie we will be covering how to customize QuickBooks
| | 07:54 | for your business.
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| Customizing QuickBooks for your business| 00:00 | The second half of the step interview is all about customizing
QuickBooks for your business needs. We're going to go through a series of
| | 00:05 | questions and at the end we'll have a program that's set up
and tailored to our business needs by selecting features that
| | 00:12 | QuickBooks feels will best serve us. If at the end
| | 00:15 | we see that there are features that our
company actually doesn't need to use--
| | 00:19 | not a problem. We'll be able to turn
those features off at a later time.
| | 00:22 | We're going to go ahead and click on Next.
| | 00:24 | Our first question is what do you sell. Do you only sell services
such as consulting? Gym memberships? Accounting services? Do
| | 00:31 | I only sell products? Some physical, tangible things I'm
making and delivering to somebody such as lamps, books, and
| | 00:38 | hardware? Or do I do both? In the case of training, perhaps
I do consulting and training services, and I also then sell
| | 00:45 | products of that training in a CD or a book format. For our
company, we do both. Eat Cake can provide services from catering,
| | 00:53 | labor services. We
| | 00:54 | can also sell prices far as physical
cakes, muffins, cookies, things of this nature.
| | 00:59 | So our company does both products and services and that's
what we're going to select. And we're going to click on Next.
| | 01:05 | Do you sell products online? Again, we can
look at the option that QuickBooks gives us.
| | 01:10 | Number one is currently yes, I sell products online. No, I
don't sell anything online but I may want to at a later date.
| | 01:16 | Or I don't sell online and I'm not interested in doing so.
Whichever one of these you select, if later on down the road you
| | 01:22 | decide oops, nope, that wasn't the right choice for me,
| | 01:25 | don't worry, you can go back and change it.
So this is not an all or nothing at this point.
| | 01:30 | Your company may not currently sell online but you may want to
at a later date. So we're going to go ahead and select that button
| | 01:36 | Again, we can always change this later on.
We're going to go ahead and click on Next. Do
| | 01:40 | you charge sales tax? And notice that Yes is already defaulted
and is recommended for our business type. Now QuickBooks mades
| | 01:48 | that decision from what we originally told it that we were
a caterer, restaurant, bar, that we were incorporated. All of
| | 01:54 | these things now tells it,
OK, so based on that criteria
| | 01:59 | yes to this, no to that. And this particular feature is saying
yes, we do recommend for your type of business that you should
| | 02:06 | charge sales tax.
| | 02:07 | Again, if you're unsure don't worry about it. Later on we
can always change it. So we're going to go ahead and leave the
| | 02:12 | default the system has chosen for us.
| | 02:15 | Do you want to create estimates in QuickBooks? Now,
an estimate is similar to a quote, a bid, a proposal,
| | 02:23 | something you're going to provide to a client to give them
an idea of the cost of whatever it is you're selling to them.
| | 02:28 | Some businesses use estimates, others do not. As you can see,
QuickBooks for our business type has recommended no for
| | 02:35 | us. However, I know that we are going to be providing
estimates down the road to our clients because we do do catering
| | 02:41 | in relationship to the bakery business, and so I will be
providing estimates to my clients for wedding cakes and all
| | 02:48 | types of other services. So we're
going to go ahead and choose Yes.
| | 02:51 | Now again, if I find down the road that were not
using this feature I can always turn it off later.
| | 02:56 | I'm going to go ahead and click on Next.
| | 02:59 | Using sales receipts in QuickBooks: First of all a Sales Receipt
is different than an Invoice and you need to understand the
| | 03:05 | difference between the two. A Sales Receipt is something
you use when a client pays you at the time they've
| | 03:11 | received your service or goods or products.
| | 03:14 | This gets into the accrual versus cash-basis concepts and not
all companies use sales receipts. There are a lot of companies
| | 03:21 | that are strictly accrual. There's never a time when they're going
to bill somebody that they're going to receive payment at the same
| | 03:26 | time they bill. And in those cases they would use an Invoice.
But in a retail or some type of a cash-based entity where
| | 03:34 | you're selling something and at the time you sell it
you receive payment, a Sales Receipt would be appropriate.
| | 03:39 | QuickBooks has told for us, they don't recommend it for our
business. However, we do have a retail shop where people
| | 03:45 | can actually walk in. They can choose from our muffins and cakes,
buy them over the counter and pay us and at that time we could
| | 03:53 | use a form of Sales Receipt in QuickBooks or what you would
call a Cash Register function. So we're going to go and
| | 03:58 | click on Yes here to enable that feature. And again, if we
come into the program later on and we find that no, actually we
| | 04:05 | don't need that, we can always turn it off.
| | 04:08 | I'm going to go ahead and click on Next.
| | 04:10 | Using Statements in QuickBooks: Billing Statements are very
common for when you are on accrual-basis in invoicing your
| | 04:16 | clients and they're going to then pay you
later for something you've sold them today.
| | 04:20 | Very commonly at the end of the month you may want to send
the client a statement that shows all of the charges that have
| | 04:27 | been accumulated up to that point in time from money that they
owe you. Now, the statements can list not only money that is
| | 04:32 | owed by the client. It can also show the payments or
credits that may be applied to the client's account as well.
| | 04:38 | Again, QuickBooks defaults based on prior information we
gave it to whether it thinks we need Billing Statements or
| | 04:44 | not for our company. It recommended no, but we're going to go
ahead and turn that feature on again because we do have times
| | 04:50 | when we're going to do a Cash Receipt. Meaning what the person
comes in at the time and pays for us right over the counter.
| | 04:55 | And then during our catering side of the business we will
be billing or invoicing people for services that will be
| | 05:01 | delivered later and I may need to send them a statement for that
information. So we're going to go ahead and turn that feature on
| | 05:07 | and click on Next.
| | 05:08 | Using progress invoicing: Now Progress Invoicing is a little bit
different than just your traditional invoicing in QuickBooks.
| | 05:15 | Progress Invoicing is generally used for if you're
doing a large job that may run several months
| | 05:21 | and along the way you're going to charge the client for little
sections of work that has been completed and payment up
| | 05:27 | to that point. It's very commonly used in construction. So where
a contractor will come in and bid on a home. They're going to
| | 05:34 | build your house for you and the house is going to take six months to
build. And so during that course of time there will be sections of it
| | 05:41 | completed. So in the first 30 days the framing goes up. OK
so they're going to charge you at that point for the work done
| | 05:48 | up to that point. That is a Progress Invoice. In the next 30 days
they get the sheet rock up and they get to start to put up the
| | 05:55 | drywall and they create another Progress Invoice for the work
completed up to that point. And so on forth. In our business model
| | 06:02 | we do not use progessing invoices. We're not going to have jobs
that are going to go on months and months and months with all
| | 06:07 | these components to it. We're going to
invoice the client at one time and then
| | 06:11 | be paid for that invoice. So we're going to leave
this feature as no as QuickBooks has recommended.
| | 06:16 | Again,
| | 06:17 | we could always turn it back on later if we needed to.
| | 06:19 | We're going to go ahead and click on Next.
| | 06:22 | Managing bills that you owe:
| | 06:24 | This is actually another word for Accounts Payable.
| | 06:27 | Accounts Payable is a way of managing money that you owe to other
people. So, it's a list of your vendors. It's a list of all the
| | 06:33 | bills, and when they're due,
| | 06:36 | and how much money you've paid to them. I strongly suggest for almost
every business type that you use Accounts Payable or a managing of
| | 06:42 | your bills. And as you can see QuickBooks has recommended
that as a yes to us that we should be doing this to track our
| | 06:47 | bills. So we're going to go ahead and leave that as
the default and we're going to go ahead and click on Next.
| | 06:52 | Do you print checks? And again, here we have our series of
questions of whether yes, I currently print checks. No, I
| | 06:59 | don't currently print them but I'd like to later. Or I don't
print them and I don't plan to. Now, I don't know of any
| | 07:04 | business that doesn't need to write a check. (Laughs.) If you're
the kind of business that is just taking money in and not having
| | 07:09 | to pay it out, I want to come work for you.
| | 07:11 | For our company, yes, we print checks. We've printed them in
the past. We're going to continue to print them so we're going to
| | 07:17 | select that.
| | 07:19 | And then we're going to go ahead and click on Next.
| | 07:21 | Tracking inventory in QuickBooks: And again, this is going to really
depend on the type of business you are and whether you currently track
| | 07:29 | inventory, whether you would like to track inventory in the future.
| | 07:33 | Inventory Tracking is very common for people who manufacture
something. So they're building the components and then putting
| | 07:39 | it together. Or possibly they're buying the rock components
from other vendors but then assembling it themselves. Or they
| | 07:47 | just buy the component from another vendor, they stock
in on their shelf, and then they in turn resell it.
| | 07:52 | All of those could be used for tracking of some type of material
that you have sitting on your shelf that later on you're
| | 07:58 | going to turn around and resell to somebody else. Whether
they're raw materials and goods that you then turn into another
| | 08:04 | product that you in turn sell, or whether there is an individual
product you buy from a vendor and then turn around and
| | 08:09 | resell it yourself.
| | 08:10 | Those types of items you may or may not want to track in inventory.
And again, it's a choice that you have to make depending on
| | 08:16 | your own company needs.
| | 08:17 | QuickBooks has some good solutions for tracking of inventory.
It helps allow you to see how much quantity you have on
| | 08:24 | hand at any given time of a particular item. that allows you to
see the average cost of that item, how much you've sold, and when
| | 08:30 | you need to reorder by setting default thresholds.
| | 08:33 | For our business, we're going to go ahead and
turn on that feature even though it recommends no.
| | 08:38 | We do actually do some tracking of inventory for our company.
We buy espresso machines that we then turn around and
| | 08:45 | resell to our clients. And we also buy coffee mugs that we
them will turn around and resell. So I want to make sure that
| | 08:51 | I track my inventory of coffee mugs and espresso machines
so that I know how much it's costing me, how much I have on
| | 08:57 | hand, and when it is time to reorder that product.
| | 09:00 | So we've selected Yes and we're going to click on Next.
| | 09:04 | Do you accept credit cards? And again, we have our three
questions here of yes, I do currently accept them. No, I don't
| | 09:11 | currently but I would probably like to later. Or I don't
and I don't plan on doing it. Now again, in today's market
| | 09:17 | most people are accepting credit cards. Again, don't worry.
If right now you don't and you don't select that feature,
| | 09:24 | later on you can always turn it on. We're going to go ahead
and leave it on because we do accept credit cards for our
| | 09:29 | business.
| | 09:30 | We're going to click on Next.
| | 09:33 | This is very helpful if you're going to bill customers based on
labor costs for a job that you've done. Very commonly again, this
| | 09:40 | is used in a construction setting where I'm charging time and
material for my job. I need to be able to charge the client for the
| | 09:46 | labor costs. I also wnat to be able to analyze how much
time I've spent and to what job that's associated with.
| | 09:53 | And I want to be able to pay my employees based on that time
tracking. So all those things you accomplish by turning on time
| | 09:59 | tracking in QuickBooks. And for our purposes we're going to
leave it on for our company because we do provide again catering,
| | 10:06 | which does have labor services involved. And I want to be able
to associate that with perhaps a particular client. Again as
| | 10:13 | if we're catering a wedding, I want to be able to track that time
associated, pay appropriately, and charge the client appropriately for
| | 10:19 | the hours spent. And so we're going
to leave that as a yes and again,
| | 10:22 | if you turn this off don't worry,
you can always turn it on again later.
| | 10:26 | We're going to click on Next. The next question QuickBooks asks you is
do you have employees. And for our company, yes we do. And regardless
| | 10:34 | of whether using QuickBooks payroll or not, I would
suggest that you set this up appropriately for whatever your
| | 10:39 | company business has.
| | 10:41 | For ours we have employees and we have W-2 employees, which is
someone that you actually run through payroll, collect taxes out of
| | 10:47 | their check and then send that tax payment in for
the employee to the state and federal government.
| | 10:52 | In addition to W-2, we also
have what's called 1099 contractors.
| | 10:56 | Now, a 1099 contractor is not an employee.
| | 11:00 | You do not withhold taxes from what you're paying them during
the course of the year. You pay them a gross wage. Then you
| | 11:05 | report those earnings to the government at the end of the
year and then it is up to that person to pay their own taxes
| | 11:11 | directly to the government themsleves.
| | 11:13 | We do have both so we're going to select
both and we're going to click on Next.
| | 11:17 | Using accounts in QuickBooks: The next section here is going
to talk about the Chart of Accounts which is nothing more than
| | 11:23 | a way to organize your income and expenses within the
program. The Chart of Accounts is a great feature in
| | 11:30 | accounting. It allows you to be able to see how much you're making, how
much you're spending based on categories that you've determined. And that
| | 11:38 | really allows you to be able to control expenses and understand
where your sales are coming from so that you can better
| | 11:44 | manage your business.
| | 11:46 | And if you look here QuickBooks gives you a little why is Chart
of Accounts important and the help tools are always great
| | 11:51 | for little reminders or clarification on
things that you may not be familiar with.
| | 11:57 | OK, we're going to go ahead and click on Next.
| | 12:00 | We now need to select a start date for our business.
| | 12:02 | This is the date we're going to convert all of our financial
information into QuickBooks. And we spoke about this earlier how
| | 12:08 | important the start day is. This really determines how much
information we're going to be bringing into QuickBooks at the
| | 12:14 | time that we start using it for our company operations. It gives
you two options here. Basically you have the beginning of the year
| | 12:20 | that you can select and it's defaulted to 1, 1 of 2008. Now,
you may see something different when you actually load the
| | 12:26 | software on for yourselves. Generally QuickBooks
will drive to whatever the current year you're in.
| | 12:31 | We are showing 1, 1 of 2008 for the purposes of this
exercise. The other option we have is use today's
| | 12:38 | date or the first day of the quarter or month.
| | 12:40 | And again, this is really up to you.
| | 12:42 | We strongly recommend starting the first of th calendar year
when possible. It makes it the easiest for everybody. You don't
| | 12:49 | have to bring as much level of detail into QuickBooks. Of
course, if that's not going to work for you, if you know, it's
| | 12:55 | May and you need to get this going now and you can't wait
| | 12:59 | until the next year to get going on QuickBooks, then obviously
you have to have a different start date. I always recommend
| | 13:04 | the first day of the month or the first day of a quarter. For our
purposes for the exercise we're going to choose the beginning of the
| | 13:10 | fiscal year.
| | 13:11 | But again, you have to look at your own company needs, where you're
at in the year in relationship to your fiscal year, and when you
| | 13:17 | feel is appropriate for you to start using QuickBooks.
| | 13:19 | The amount of detail or data you have to bring into QuickBooks
will be predicated on whatever start date that you choose.
| | 13:28 | QuickBooks is now asking us to Add a bank account.
| | 13:30 | Now, bank accounts are generally what you're going to be
tracking your money in, so your actual, physical cash. Commonly
| | 13:36 | they're checking accounts, savings accounts,
money market accounts, things of this nature.
| | 13:40 | At this point in the easy step interview we could set up our
existing bank account, however, we're going to go ahead and
| | 13:46 | do that in a later chapter. So I'm
going to go ahead and select No
| | 13:50 | and we're going to add the bank account later. You could select
yes and then it would take you through setting up some bank
| | 13:55 | accounts, but as I said we're going to go ahead and do that
in a later chapter so I'm going to select No at this point.
| | 14:00 | Reviewing of your income and expense accounts: These are the default
accounts that QuickBooks is now going to populate into your company file.
| | 14:07 | Again, these accounts were chosen based on all the prior
criteria we've been giving QuickBooks in answering all these
| | 14:13 | questions. Its come up and said OK, these are the accounts we think
you're going to most frequently use. So here you go. Here's your list.
| | 14:20 | And if you notice
| | 14:21 | on the left you've got checkmarks. The checkmark
means that's the account thats been selected
| | 14:27 | and it tells you the account name or description of the account
| | 14:29 | and to the right it's going to give you the type of account.
Now, we're going get into more information as far as what these
| | 14:35 | mean in a later chapter. But you can go ahead and go with the
defaults QuickBooks has set up because again, once we actually
| | 14:41 | get into the program we can customize. We
can take things out, we can add things in.
| | 14:46 | It's all changeable. So you don't have to be worried that you have
to choose everything right at this point. Later on we can go in
| | 14:52 | and edit or add as we need. And we can even do it as we start to
work with the program. So we're going to go ahead and leave the
| | 14:58 | defaults that QuickBooks has chosen here.
| | 15:01 | We're going to click on Next.
| | 15:03 | Congratulations. You've now finised the easy step interview
and we're now ready to move on and start using QuickBooks.
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|
|
4. Understanding the QuickBooks EnvironmentUsing the home page| 00:00 | Upon completion of the Easy Step Interview, QuickBooks watches
and you're now in the program. And this is going to be the first
| | 00:06 | screen that you come to.
| | 00:07 | QuickBooks gives its own tutorials and what they call Coach
Tips which basically helps you work through the program. If
| | 00:13 | you're a first-time user to QuickBooks and you really don't
know where any thing is at, where to find certain functions
| | 00:18 | and features, QuickBooks provides you with some quick easy references
and this workflow that kind of shows you here's kind of where you
| | 00:26 | start and here's where you get to the end.
| | 00:28 | The first thing is going to default to--it's called Coach Tips.
You can see this little screen here has kind of popped up
| | 00:34 | on our window and that's where it's driving us to. And it has a
tutorial that can take you through certain functions and features
| | 00:39 | of QuickBooks. And it has what they call Show Coach Tips, and
if we click on that, notice that the box went way over here
| | 00:45 | to the right.
| | 00:46 | And now the screen has kind of changed a little bit and you got this
whole path. It takes you through this path depending on what it is that
| | 00:52 | you're trying to do at any given time in the software. So if I'm
trying to Create an Invoice, I'm trying to enter a bill. Do I
| | 00:58 | want to go ahead and pay that bill? Notice the number one here that
is highlighted and it says Create Sales Receipts. And when I hover
| | 01:04 | over it I get my hand and my little pop-up that tells me what this
is. This is telling you that if you've sold something and you're
| | 01:10 | Creating a Sales Receipt here's where you start and then notice
the workflow takes you right over to Record a Deposit.
| | 01:15 | Because when
| | 01:16 | you have a Sales Receipt it means clients gotten their service
or product and you've been paid, and now you've got the
| | 01:22 | money and you're going to go ahead and deposit that money.
| | 01:24 | If you look over here you'll see these little I's, and everywhere
there's an I you get the pop-up. By clicking here it's
| | 01:30 | going to take you and show you now, the workflow for that item.
So I mean this is where I start with Creating an Invoice. My
| | 01:36 | next step would be then to Receive a Payment. So I bill somebody
with an Invoice and then later on they're going to pay me
| | 01:43 | for that Invoice so I have to Receive that Payment. And then the
last step to that would be Record a Deposit. So it's QuickBooks
| | 01:48 | little quick reference guide if you forget the path
| | 01:51 | or in the order that you're supposed to do some of these
transactions. We're going to go ahead though and we're not going to
| | 01:57 | go through any of that.
| | 01:58 | So we're going to hide the Coach Tips.
And by clicking on that button, that went away
| | 02:03 | and it brought it back out here to the
center. And now I want to get rid of
| | 02:06 | the QuickBooks coach altogether so I'm going to
click in the X and notice it sends it back over here.
| | 02:12 | To completely get it out of sight we click on the Minimize
button and it shrinks it up. So any time I want to get the Coach
| | 02:18 | Tips back, if you click on the Plus sign,
| | 02:21 | it expands and there they are. And I can just click on them again
and I go right back into it. Like I said we're not going to use it,
| | 02:27 | so we're going to hide it
| | 02:28 | and then we're going to minimize it.
| | 02:30 | This is our home page what we see here.
| | 02:33 | And this gives you our workflow within QuickBooks of all the
things that we may do at any given time while we're working with the
| | 02:38 | software. This gives you the workflow for any given
time, things that we may be doing within the program.
| | 02:44 | If you look back to the right here on this bar, below QuickBooks coach
you have account balances. And again, when you see thse Plus signs,
| | 02:51 | it means there's more information contained within.
| | 02:54 | If I click on that, it expands and you see your name and
balance. Once we create our Chart of Accounts and we have balances
| | 03:01 | populated into these Chart of Accounts, they would list
here. And it's a quick reference, a fast check if you're
| | 03:07 | wanting to look up some information.
| | 03:09 | We're going to go ahead and left-click here to
| | 03:11 | shrink that back up. Learn About Services: This is some
quick shortcuts if you want more information on services that
| | 03:18 | QuickBooks offers. So if you're looking at possibly adding
in QuickBooks Payroll, this is a link to their website that can
| | 03:23 | give you more information on the payroll options available.
If you currently accept credit cards but don't have a
| | 03:29 | merchant vendor, someone that can actually process your credit
card transactions. Or you're wanting to look to change or you're
| | 03:35 | possibly wanting to use QuickBooks online services. Then you
could click here to this link and it would take you to their website
| | 03:40 | and they'd give you
| | 03:41 | more information on those services available.
| | 03:43 | The same with Ordering Checks and other
Recommended services that QuickBooks offers.
| | 03:48 | Lastly is the Reminders & Alerts. These are functions in
QuickBooks for general reminders and alerts of daily tasks that you
| | 03:55 | may have to do, what they call system reminders. So if you have
checks that you print once a week, payroll every other week,
| | 04:02 | invoice batch printing so you're going to print invoices once
a week. You can set yourself up a reminder in QuickBooks and
| | 04:10 | it would take you through a little prompt at that time given to
go ahead and use that function. We're not going to learn about
| | 04:15 | this right now. We're going to learn
about how to set Reminders & Alerts
| | 04:18 | in a later chapter.
| | 04:19 | As far as using the homepage on a daily basis, it's really
a matter of preference. Some people like the workflow
| | 04:25 | and in this format being able to see physically where it is
that they're going next. Other people don't like to use it at all.
| | 04:31 | They prefer going to the dropdown menus or the navigation bar.
For our exercise we're going to go ahead and refer to the
| | 04:36 | menu bar and dropdown menus and not use the homepage. It
is certainly something that you on your own can bring up and
| | 04:41 | use. We're going to go ahead and turn this feature off by
| | 04:45 | clicking over here in the red X.
| | 04:47 | Now, at any time if we wanted to bring it back, not a problem.
We just go right to the navigation bar where it says Home.
| | 04:53 | Notice the little pop-up that you get. Click on that, it
brings it right back. So by closing the window you're not losing
| | 04:58 | anything, you're not losing the capability to bring it back up.
| | 05:01 | And we're going to go ahead and close it again. So remember it's just
a matter of preference. It's how you like to move and look in the
| | 05:06 | environment. Some people prefer having that type of a workflow.
Other people prefer just going to the navigation bar and
| | 05:12 | dropsdown menus.
| | Collapse this transcript |
| Using the Navigation and Icon bars| 00:00 | Before we get started in all of the other functions associated with
QuickBooks like invoicing or setting up your Chart of Accounts.
| | 00:06 | or billing somebody, we should really talk about the environment
itself and what you're looking at here and how you find
| | 00:12 | things within QuickBooks. And I'm going to be defaulting a lot
to referencing to the dropdown menus and the Navigation bar as
| | 00:18 | far as directing you where to find all of these different
functions within the software. So let's cover that first
| | 00:24 | before we get involved in all the other aspects. If you look
at the top you have these buttons up here and this is called a
| | 00:29 | Navigation bar.
| | 00:30 | And the Navigation bar is used to jump to these particular
areas within QuickBooks that has all these other features
| | 00:36 | associated with it.
| | 00:37 | We learned about the homepage in a previous movie.
And if we click on the Customer Center you
| | 00:42 | can see that that takes you now to a new feature within
QuickBooks that has to do with everything for our clients.
| | 00:49 | And this is where later on were going to be getting into adding
new clients, adding new customer jobs, invoicing, you name it.
| | 00:56 | But for now we're going to go ahead and close this window.
| | 00:59 | And again, each one of these buttons on the
Navigation bar, it would take us to that center where
| | 01:04 | you can perform functions associated with those types of
transactions. In addition to the Navigation bar you're going to have
| | 01:10 | the dropdown menus. Under the dropdown menu, it contains many
of the same things you're going to find in the Navigation bar
| | 01:15 | but not everything. When we go under Company we can see that
you have the homepage which is also contained on the Navigation
| | 01:21 | bar. But then you have other information
that's pertinent just for the company itself.
| | 01:26 | If we go to where it says Customers, again you can all see
Customer Center which is a button on the Navigation bar. And
| | 01:32 | then you have additional options of different things you can
do for your customers. Most of these items are contained in
| | 01:37 | the Customer Center but as we go along you will see that there
are some things that are only found under the dropdown menu.
| | 01:45 | If we go to View on the Menu bar, you can see that the word
Navigation bar is there with a checkmark next to it. What that
| | 01:51 | means is the same that the Navigation
bar is in view on your desktop.
| | 01:56 | By deselecting or taking away the checkmark notice the
Navigation bar disappears. Now at any time you see this in your
| | 02:02 | own view at home, it means you have just deselected
the Navigation bar. And by going back to View
| | 02:08 | and selecting it again, it will come right back so you haven't
lost it. It's just that you deselected or you didn't want to
| | 02:13 | show that in View any longer. The same goes for what they
call the Icon bar which is located directly to the right
| | 02:19 | of the Navigation bar. If you see here next to Help there's this
little bar. This separates the two. Everything to the left
| | 02:26 | is considered the Navigation bar and everything to the
right is considered the icon bar. The reason that they've
| | 02:32 | differentiated the two of these is the Icon bar you
can customize. You can add your own buttons to it.
| | 02:38 | The Navigation bar is a default set by the program, and you
can't really change that other than making it appear and
| | 02:44 | disappear. But the Icon bar, you can add your own buttons to
it so if there are repetitive tasks you're doing all the time,
| | 02:51 | and you just want a button you can click on to bring that
up, you can add it to the Icon bar. If we go up to View
| | 02:57 | and we go to where it says Customized Icon Bar,
| | 03:01 | we're going to bring up this window. And in here if you look at the
names, these are the items that are already listed on the Icon bar.
| | 03:08 | If we wanted to add our own, let's say " I do invoicing everyday,"
| | 03:13 | and it would sure be nice if I just
had a button that said invoicing.
| | 03:17 | I'm going to click on Add
| | 03:19 | and it takes me into this list of available functions
I have that I can add to the Icon bar for myself.
| | 03:25 | So I can see here what says Create Invoices. And I'm going to left-
click to select that. And notice is kind of gives me this nice little
| | 03:31 | picture here. You can choose any graphic you like to represent
your Invoice button. Also it gives you a default for the
| | 03:37 | label which you can change to anything you may like. We're
going to go ahead and leave it as Invoice and then the
| | 03:42 | description is a little pop-up flag
you get when you hover over the button.
| | 03:46 | So we're going to say, "That's all good
for me," and I'm going to click on OK.
| | 03:49 | And then if you'll look right here on the
Icon bar, it has created my Invoice button.
| | 03:54 | I'm going to go ahead and say OK here
| | 03:56 | and now if I go up and click on my button,
| | 03:59 | I'm taken right into the Create Invoice window. So it's
just a way of customizing the environment for me for tasks
| | 04:05 | that I may do on a daily basis that I just want a quick
reference to. We're going to go ahead and close that window.
| | 04:11 | We're going to go back to View again
| | 04:13 | and Customize Icon bar.
| | 04:16 | Now if I have any icons on the bar that I don't want, the same
can be held for getting rid of them. I can go ahead and hit Delete
| | 04:22 | any choices on there that I'm not currently using because I
can always go back and add them later. So if I'm currently
| | 04:28 | not using Payroll,
| | 04:29 | I can go ahead and select that
| | 04:31 | and click on my Delete option and it takes it off the Icon bar.
Don't worry, it's not gone good. You can always go back to
| | 04:37 | Add and find it back in the list. You can see it's located
right here and I can always re-add at a later time. So
| | 04:44 | again you customize it for your own needs. Put up there the
things that you probably use most frequently. It's a great
| | 04:49 | tool. The last one we're going to do is we're going to add Bill.
Because we do a lot of bill paying and unfortunately it's not all
| | 04:55 | about billing people and collecting money,
but we also have to pay it out.
| | 04:58 | So we're going to go ahead and look for the Enter Bills.
And again, it's defaulted to this graphic and it's labeled it
| | 05:05 | for me with my description. I'm going to
say OK and now that's been put up there as well.
| | 05:10 | So we're going to go ahead and close our customization.
| | 05:13 | And we can look up here and it says Enter Bills and
by clicking, it takes us to our Enter Bills window.
| | 05:19 | There's only a couple more things I want to show you as far as
customizing of your environment. I'm going to click on the Customer
| | 05:25 | Center and bring that window open,
| | 05:26 | and then I'm also going to click on the Vendor Center
and bring that window open. Now notice the Vendor Center
| | 05:31 | goes right on top and I can no
longer see my Customer Center window.
| | 05:35 | If I go up to Window on the Menu bar, you'll
notice that Vendor Center has a checkmark to it
| | 05:40 | and that is the window that is in view. And if I click on
Customer Center now that brings that on top of it and I can now
| | 05:45 | see that. That's one way of moving between windows but I don't necessarily
think that's the best way. There are a couple other options that are
| | 05:52 | available to you. If you go back to View on the Menu bar
| | 05:55 | and you left-click you'll see Open window list.
| | 05:58 | And if I select that, this bar comes in on the left-hand side.
And notice here I show my Customers Center which is the
| | 06:05 | active window, but it also shows me Vendor Center. This shows
any windows that you have open and by simply then selecting
| | 06:12 | that it will bring that window forward.
| | 06:15 | So it's also nice if you're having a lot of windows going
at one time and you want to quickly be able to change between
| | 06:20 | windows. Keep your
| | 06:22 | Open windows list on your desktop and then you
can just quickly switch between the two at any time.
| | 06:27 | If you don't want it, you simply click on the X. It sends it
back away but you can always bring it right back by going back
| | 06:33 | to View and reselecting it under Open window list.
| | 06:37 | We're going to close that.
| | 06:39 | The last thing I'd like to show you under View
is one window versus multiple window view.
| | 06:44 | Currently the system has us defaulted to multiple windows view.
| | 06:48 | If you look you're on the screen it says Customers Center
and again, we can't really see anything behind it. However,
| | 06:54 | if you
| | 06:54 | take your pointer to the blue Title bar, you left-click and hold,
| | 06:58 | and drag down, a-ha! There appears Vendor Center.
And I'm able to move this window around the screen.
| | 07:04 | I can also then go to my window behind, left-click on
that, make that the active window and bring that forward.
| | 07:10 | If you look down here towards the bottom you can see the
other window kind of peeking out below it. And again, I can
| | 07:16 | left-click and drag this around my screen.
| | 07:19 | I can also resize the image. So there's a lot of things
you can do as far as movement wise to be able see multiple
| | 07:25 | layers within your window. Different
| | 07:27 | than one-window view.
| | 07:29 | If we choose One-window view notice it maximizes the window.
| | 07:33 | You no longer can see anything behind it.
| | 07:36 | If I click and hold, I'm trying to drag but I can't move
the window anywhere and I cannot resize. I don't get my double-
| | 07:41 | headed arrow and I can't resize anything.
| | 07:44 | So really, again, it's a matter of preference. Some people
prefer multiple windows so that they can move around and
| | 07:51 | kind of put things next to one another and
be able to see two things at one time.
| | 07:56 | Some people preferr to have it just a single view only and
then use the Open window list to kind of go between. For our
| | 08:02 | exercise purposes today, we're going to go
ahead and we're going to use the One-window view.
| | 08:07 | And we're going to go ahead and close these right now.
| | 08:10 | Understanding your environment, being able to customize shortcuts,
knowing where to find things in the dropdown menus. These
| | 08:16 | are all things that will limit frustrations as you begin working
with the program because it will help make it faster for you
| | 08:21 | when you're trying to locate a function to be able to
process that particular transaction. You won't have to
| | 08:26 | do the hunt and peck method of where is that? Where did I last see
that? You'll know right away because it's sitting right here on
| | 08:32 | your Icon bar and you can just click right to it.
| | 08:34 | So I strongly advise that when you have time on your own,
you go later to look through the features and really choose
| | 08:39 | what it is that you want to see on those Icon bars and
how you want to set up your environment in QuickBooks.
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| Setting up QuickBooks Essential Preferences| 00:00 | In the Easy Step Interview QuickBooks asks us a series of questions
that allow part of the features to be turned on that would
| | 00:05 | best be utilized by our business. During that time you may or may
not have been sure of the answers to your questions. Either A, you
| | 00:11 | turned features on that you really don't need or B, you didn't
turn on the features that you really do need. Never fear, at this
| | 00:17 | point we can still go back in now and customize QuickBooks further
and add features that aren't currently active, or deselect
| | 00:24 | and turn them off if we don't think we're going to
use them. To do this, go to Edit on the Menu bar
| | 00:28 | and click, and you'll see Preferences List at the bottom. If
you're using a Mac you'll find the QuickBooks Preference window
| | 00:33 | located in the upper left-hand corner in the QuickBooks menu
dropdown. It may look a little bit different than the PC
| | 00:38 | version but don't worry, all of the same
features and preferences are there.
| | 00:41 | And you go go back to Edit,
| | 00:43 | and select Preferences.
| | 00:44 | Within the Preference window it defaults to General. And if you see
on the left-hand side there are a lot of options available to you and
| | 00:50 | you're not going to cover them all right now. We'll hit them
later as we move to the different chapters and come back to
| | 00:55 | them when they're prevalent for that particular item that we
want to look at. For right now, we're just going to talk about
| | 01:00 | General.
| | 01:01 | If you look here on the right you'll see that you have a My
Preference option and a Company Preference option. The main
| | 01:05 | difference between the two is on Company Preferences anything
you change, that affects for everybody. Meaning if there's
| | 01:12 | multiple people accessing the file, the changes I make on
Company Preferences they will see. On My Preferences it only
| | 01:18 | affects me or that single user. So that's
the main difference between the two.
| | 01:22 | When working with preferences you have to keep in mind the
changes you make may or may not affect others. Anything on the My
| | 01:27 | Preference tab is for yourself, anything
on Company Preference tab affects everybody.
| | 01:32 | You can see there's a lot of options here within the window.
| | 01:34 | I recommend that you leave the features set to default. Until
you've had an opportunity to work with the program and see what
| | 01:39 | they do, you don't want to be coming in here turning things
off that you may actually need. The only thing we're going
| | 01:44 | to do for today is on Turn off pop-up messages. We're going to turn this
feature off. Because as we're going through the file, we're going to try
| | 01:51 | and minimize the number of pop-ups that QuickBooks will
produce. If we go to Desktop view, you notice that your Save
| | 01:56 | Changes window comes up. Just click on Yes to save the changes
you made in the prior window. Now our Desktop view is open.
| | 02:03 | You'll notice you have the same tabs contained in this window
as you did in the General window. If you look down in the
| | 02:08 | option here under View, you'll see multiple windows and one window.
These were the same options we had contained in the
| | 02:14 | previous movie when we were under our view on the dropdown menu
and we saw One window choice and Multiple window choice. By
| | 02:20 | choosing One window in My preference settings, the next time
I launch the software this will be the view I always have. If I
| | 02:27 | come down here to the Desktop view, you can
see you have several options within here.
| | 02:31 | Show homepage when opening a company file.
| | 02:33 | Prevuiously we've seen that the homepage
launches when you launch the program.
| | 02:37 | If we do not want to use the homepage to navigate throughout the
program, we can deselect it by taking the checkmark out of the box.
| | 02:44 | If we select Company Preferences, we can now see what is
set up for the program and what all users would see when they
| | 02:50 | come into QuickBooks. These preferences were turned on at the
time during the Easy Step Interview when we answered those
| | 02:55 | series of questions that QuickBooks gave us about our company.
This is what it selected. So you can see the checkmarks
| | 03:01 | by these meaning that these preferences have been turned on,
and if you look down towards the bottom you can see that it says
| | 03:08 | On next to Time tracking, Payroll, Inventory and
so on. If at this point in time we said "Oops,
| | 03:14 | made a mistake. Don't need to have Estimates turned on. I don't
use Estimates. I don't foresee myself using Estimates." To turn
| | 03:20 | it off, if we click on it, it takes us to our Change view
and our save. We say yes, we want to Save the change.
| | 03:25 | Then it's going to take me to my Job Estimates Preference and on this
Company Preference tab you'll see Do you create estimates? Yes or
| | 03:33 | no?
| | 03:34 | Yes was originally selected. We're going to say no,
| | 03:37 | and we're going to go back to our Desktop view.
Our Save Change window comes up again
| | 03:42 | and we've now turned it off. So it's as simple as that. If we come back
later and say, "Oops, nope. I'm actually going to need to use estimates."
| | 03:48 | We can go back
| | 03:50 | select it again, it takes us back to our Job Estimates and Company
Preferences. We now say, "Yes, I do need it." Go back to my
| | 03:58 | Desktop view,
| | 03:59 | save again,
| | 04:00 | and now it's back on.
| | 04:01 | The last thing we're going to look at is Spelling.
| | 04:03 | Notice here now there are no Company Preferences for Spelling.
| | 04:07 | You will find that some do not contain Company Preferences.
In this case, Spelling is only for My Preferences. It's only going
| | 04:13 | to affect for myself.
| | 04:14 | Notice that Spell Check is turned on I would definitely not
recommend turning that off. I don't know about you, but I need
| | 04:20 | Spell Check. And then as far as other options you have Ignore
words with. Commonly it's Internet addresses so we're going to
| | 04:27 | deselect that.
| | 04:28 | And that is going to be our final change that we're going to make
at this time in our Preference setting. Again, remember if you ever
| | 04:33 | need to come back and find this,
| | 04:35 | you go to Edit,
| | 04:36 | Preferences, and here's your list that is going to contain for
all the different features and functions that are turned on in
| | 04:42 | QuickBooks for you.
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|
|
5. Chart of AccountsUnderstanding the Charts of Account list| 00:00 | The Chart of Accounts is a complete list of your company's
accounts and balances. You use these accounts to track how
| | 00:05 | much money your company has, how much money it owes, how much money
you've made in sales, and how much money you've spent in expenses. You
| | 00:12 | may remember earlier in the title we discussed the following
account types: Asset accounts which is something that you own.
| | 00:19 | Examples of this, bank accounts,
| | 00:21 | accounts receivable, and inventory.
| | 00:24 | Liability accounts which are something that you owe to other
people. Examples of these are bank loans, accounts payable,
| | 00:30 | and credit cards. And finally Equity accounts
| | 00:33 | which is nothing more than your asset accounts minus your total
liability counts, gives you your net worth or value in the company.
| | 00:42 | These along with some other account types such as Income, which
is products and services that you sell, and Expense accounts
| | 00:47 | which are products or services that you buy form the main
accounts you'll be using on a daily basis in QuickBooks.
| | 00:53 | We go to Lists on the Menu bar. You'll
see Chart of Accounts here selected.
| | 00:58 | And we're going to go ahead and click on that to bring up our Chart of
Accounts window. Now before we get into creating a new account, entering
| | 01:03 | beginning balances, and editing accounts, let's just talk about
the window itself and the different ways you can view the
| | 01:08 | information here. Contained on the left-hand side is a list of default
accounts that QuickBooks created based on our Easy Step Interview.
| | 01:15 | If you look to the right you'll see the type of account listed
that's associated with the naming convention on the left. Quick-
| | 01:21 | Books assigned these types of accounts, again, based on the
questions and answers we had through the Easy Step Interview.
| | 01:26 | There are different ways you can view the data on the left-hand
side in the descriptions. If you click on where it says Name,
| | 01:32 | you'll notice that the accounts shuffle and change and
it is now being sorted in alphabetical order descending.
| | 01:38 | If I click again on the word Name,
| | 01:40 | it again listed in alphabetical order
and this time in an ascending view.
| | 01:44 | The diamond appears and that is to restore or reset the list
back to its original or default status. And by clicking on
| | 01:50 | the diamond, it restores the list to its original
default. I can do the same thing with Type.
| | 01:55 | If I click in the header,
| | 01:57 | I can go ahead and sort the list by the account type. This is nothing
more than a way to be able to find information in the Chart of
| | 02:03 | Accounts window. If this list is very lengthy and you know
the type of account versus name of the account, you can
| | 02:09 | assort the list by Type and it might make it a faster find for
what you're looking for. You can also do the same thing by Name.
| | 02:15 | And again, if you know the name of it versus the type of
account, sort the list alphabetically to be able to help you
| | 02:20 | find the account faster.
| | 02:22 | We're going to go ahead and leave it set to default. As you can
see this is a very simple list for the Chart of Accounts and I'm
| | 02:28 | sure if you've noticed here, we're missing a Bank account.
| | 02:30 | So in our next movie we're going to
learn how to Create a new account.
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| Creating an account| 00:00 | In looking at our Account list, we're missing several key
accounts that we need to add, one of them being a bank account.
| | 00:05 | We're going to the bottom of our screen where it says Account
and we're going to click on that button and go to where it says New.
| | 00:11 | We're going to select that and we're in our New Account set-up window. Here
are our account types that we're going to choose and we're going to select
| | 00:17 | Bank. And if you notice on the right-hand side, it gives you
a little bit of a brief description of the types of accounts
| | 00:24 | that would be associated with Bank.
| | 00:25 | If you need more information you would just click on that
and QuickBooks help would come up to the right over here.
| | 00:31 | We're going to go ahead and continue.
| | 00:33 | If you notice at the top we have Account Type is Bank.
And now we have a default cursor blinking for Account Name.
| | 00:40 | We're going to go and label this Bank.
| | 00:42 | Press my Tab key down
| | 00:44 | and go into Description. In here you can either use the account
name or if you need to give more information as to what this
| | 00:51 | account is, you can do so here. And we're going to go Main checking
account and then we're going to Tab down to Bank Account Number. And
| | 01:00 | this you would fill in, of course, as your bank account number.
| | 01:04 | (Typing.)
| | 01:05 | And we're going to Tab down again and go to Routing Number and, of course,
these are all fictitious numbers simply made up for this exercise.
| | 01:13 | If you look down below, we have Tax-Line
Mapping and How do I choose the right tax-line.
| | 01:19 | QuickBooks will set up Tax-Line Mapping for your Chart of Accounts
so if you process your own tax return at the end of the year by
| | 01:25 | using TurboTax or some other program like that, it will populate
into that program based on these tax-lines that have been
| | 01:32 | associated with the Chart of Accounts. For more information on
what type of tax-lines you should be using you want to either
| | 01:38 | check with QuickBooks Help or
check with your CPA and and accountant.
| | 01:41 | Under that we have Enter opening balance. In this window
QuickBooks is going to ask you to enter in your opening
| | 01:47 | balance for this account as of
a certain period of time ending date.
| | 01:51 | Commonly you would take that off your bank statement. You're going to
enter in your Statement Ending Balance and your Statement Ending Date. For
| | 01:56 | our exercise we're going to go ahead
and enter in the balance of $200,000.
| | 02:02 | And we're going to enter in our
Statement ending date which is 12, 31, 07
| | 02:08 | and click on OK.
| | 02:10 | Below that you'll see that you have an option for Remind me to
order checks when I reach check number X. And this is nothing
| | 02:17 | more than a system reminder of one of those alerts that we
originally had talked about in a prior movie, where you can
| | 02:22 | say when I get to check number 2005 please remind me to reorder
and you'll get a little pop-up that comes up and flags you for
| | 02:30 | that. You also have an option for ordering checks online through
QuickBooks if that's who you're going to purchase your checks through.
| | 02:36 | And we're going to go ahead and leave that blank
for now and we're going to click on Save and close.
| | 02:41 | This is an online service pop-up, it's asking us if we're
interested in the setting up online services with QuickBooks. You'll
| | 02:47 | get these throughout the program. We're
going to go and decline it this time.
| | 02:50 | And now if you look at your Chart of Accounts list, we have
our new account we just created which is our Bank Account.
| | 02:56 | And if we look to the right, the Type
is Bank and the Balance is $200,000.
| | 03:01 | We've created our Bank Account
| | 03:03 | and now we need to go in and create a couple more accounts
because we don't have all the Income Accounts we need here
| | 03:08 | for our business, and we need a few more Expense Accounts. So we're
going to go ahead and create one Income right now, and one more Expense
| | 03:14 | Account right now. We're going to go into this area here and
we're going to right-click and New, and for the Mac users, it's a
| | 03:20 | control-click.
| | 03:22 | We're going to choose Income and again on the right you see some options. And
we're going to be making Product Sales, so we're going to click on Continue
| | 03:30 | and it takes us into our Income window.
Account Name we're going to type in.
| | 03:35 | And in Description, the same thing.
| | 03:38 | And if you notice at the bottom of the window you don't
have an option here for Opening Account Balance. The reason for
| | 03:45 | that is you create that entry other places in QuickBooks and
you'll have to make a choice. You're either going to create
| | 03:50 | individual transactions and relist all of your invoices
and payments, or create balances on the Customer Setup. We're
| | 03:58 | going to be learning about how to do all of that later in the title.
| | 04:01 | We're going to go ahead and hit Save and close.
| | 04:03 | And now we see Products Sales listed
| | 04:05 | and we're going to create one more.
| | 04:08 | You're going to go to Expense,
| | 04:11 | Continue.
| | 04:12 | OK, we're in our new Expense Account window. We're going to
go into Account Name and we're going to create General liability
| | 04:20 | insurance.
| | 04:23 | And then I'm going to copy and paste that into my Description.
| | 04:27 | And we're going to Save and Close. Alright, so now we have of our new
Expense Account and we've created our three new accounts. And that's
| | 04:34 | how you create a new account in QuickBooks.
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| Creating a sub-account| 00:00 | In looking at the Chart of Accounts, you will notice QuickBooks
has made an account called Insurance Expense. Now most
| | 00:06 | businesses have different types of insurance:
| | 00:08 | automobile insurance, general liability insurance, worker's
comp insurance. If you put all of these expenses under this
| | 00:14 | one account, at the end of the year it would be difficult to
figure out how much money you've spent on each individual insurance
| | 00:20 | because they are all lumped together.
| | 00:22 | The solution to this is to create individual subaccounts
for each individual insurance expense under the main account.
Let's going ahead and make one so you can see a good example
of this. Obviously, you can create subaccounts for any
| | 00:34 | type of account.
| | 00:35 | We're going to go ahead and make a subaccount out of our
general liability insurance and put it under Insurance Expense.
| | 00:40 | To do this, you have to take the subaccount and place it
below the main account. If you notice the diamond on the
| | 00:46 | left-hand side of the description, when I move my pointer over it,
I get a four-headed arrow. If I left-click and hold, and drag
| | 00:53 | down, I'm going to release it once the dotted line is below
the main account that I want to put the subaccount under.
| | 00:59 | I release that
| | 01:00 | and now I can click and hold again
in move one level in to the right,
| | 01:04 | and release there and I've now just created the subaccount
of general liability insurance under the main account of
| | 01:10 | Insurance Expense.
| | 01:11 | In addition to the Insurance Expense I want to create a main
account for my sales so that I can see food sales and product
| | 01:18 | sales individually, but also group
them under a main Income Account.
| | 01:22 | To do this, if you remember in our previous lesson
| | 01:25 | to Create a new account, we're
going to right-click and go to New.
| | 01:28 | We're going to click on Income and Continue,
| | 01:31 | and we're going to call our Account Name Income.
| | 01:34 | And in Description field we're going to type
in Total sales for all products and services.
| | 01:43 | We're going to go ahead and Save and close
| | 01:45 | and now we have our new Income Account on the main line.
| | 01:47 | And again, we have Food sales and Product
sales. They're already below Income.
| | 01:51 | So we're just going to go to our
diamond and get our four-headed arrow,
| | 01:54 | click and hold, and drag on to the right. And now
we've just subbed Food sales underneath Income
| | 02:00 | and we're going to go to Product sales and do the same thing.
| | 02:03 | So we've created Food sales and Product
sales as subaccounts under our Income,
| | 02:08 | and we've created our general liability insurance
| | 02:11 | under our Insurance Expense. Now finally, if we wanted to
create a subaccount at the time of making the account. So in
| | 02:17 | other words, besides general liability insurance, I also need to
have automobile insurance that we're going to track through this
| | 02:23 | company. And as you can see on the line, currently there is no
account called automobile insurance so I need to make that account.
| | 02:29 | So again, I'm going to right-click, go to New.
| | 02:32 | This time we're going to make an Expense Account.
| | 02:34 | And Continue.
| | 02:36 | (Typing.)
| | 02:43 | Copy and paste this in the Description and
| | 02:46 | if you notice right here in this window
there's this option for Subaccount of.
| | 02:51 | I'm going to put a checkmark in this box,
| | 02:53 | and now I'm going to click in my dropdown menu.
| | 02:55 | And I get a list presented to me of all the same
account types as what my account up here represents.
| | 03:01 | So if we look on the list we can see Insurance Expense,
| | 03:04 | and I'm going to select that meaning that my automobile
insurance expense is going to be a subaccount under my main
| | 03:11 | account of Insurance Expense.
| | 03:13 | And go ahead and Save and close
| | 03:15 | and there we go. So you have two
different ways we can create subaccounts.
| | 03:18 | Right in the main view here by going to the diamond and getting
the four-headed arrow, you can click and drag and create sub-
| | 03:24 | accounts or when you're in the new window and creating a new
account from scratch, at that time you can also choose to
| | 03:30 | select that account and make it a subaccount underneath an
existing account. Subaccounts are a good way to organize your
| | 03:35 | company's financial information. As you can see by adding
subaccounts you will be able to track expenses and revenue
| | 03:41 | to whatever level of detail is needed by your company.
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| Editing an account| 00:00 | Because we're all human and we all make mistakes there'll
be a time when we will need to make a change or edit account
| | 00:05 | information in QuickBooks.
| | 00:07 | This could be something as simple as changing the name on the account
to correcting a beginning balance error. I want to remind you at
| | 00:12 | this time that you have to be careful when editing account
information as there are rules to accounting that must be
| | 00:17 | followed to stay in compliance with state and federal laws.
If you're unsure when you are making a change, please check
| | 00:23 | with your CPA or accountant. For our exercise today the account
we are going to edit is our Bank account. We had created
| | 00:29 | this account earlier and only named it Bank which isn't really
very descriptive. So we're going to give it a little bit more
| | 00:35 | information into the name. To edit an account,
| | 00:38 | we first select the account, we right-
click on it, and we can go to Edit.
| | 00:42 | And for you Mac users it'll be a control-click.
| | 00:45 | Now, if you notice here it tells us we're in the Edit account
mode so we're not creating a new account. And if you look under
| | 00:49 | Account Type it still says Bank and is defaulted to Account Name.
| | 00:53 | And simply we're going to click in here and just give a little bit more
information. We're going to call this the Tutti Frutti Bank. We have our
| | 01:01 | Description here that is our main checking account that this tells
us what banking entity we're with. So if later down the road we
| | 01:07 | open numerous bank accounts we'll know that this Bank account
is with the Tutti Frutti Bank. And as we talked about in our
| | 01:13 | previous movie if you were going to have multiple bank accounts,
you can create one main account called banks and then make
| | 01:19 | Tutti Frutti Bank a subaccount underneath
that main account right here in this window.
| | 01:23 | We're going to go ahead and Save and close.
| | 01:26 | And now we've modified the bank name.
| | 01:28 | Another type of edit that you may want
to make is to the Beginning Balance.
| | 01:32 | Again we're all human and we'll make mistakes,
| | 01:35 | and in looking at this now I realize that it's not $200,000 that
should have been the starting balance for this account. It should
| | 01:41 | have actually been $250,000. So that's
rather a big error and we need to fix it.
| | 01:45 | If you remember from a previous chapter according to general
accounting principles, making changes to your data is OK
| | 01:51 | as long as you're not changing historical
data by adjusting information from a closed period.
| | 01:56 | Now, you're probably going to get sick of hearing this from me and
I'm going to be saying it over and over again, but don't be afraid to
| | 02:01 | consult with your CPA or accountant. This is really important
information. You want to make sure you get it in right for a lot of
| | 02:06 | reasons, but the bottom line is to keep yourself
out of jail. To edit this account information,
| | 02:11 | if you go to the line and double-click on it,
| | 02:14 | it takes you into the Account Register.
| | 02:16 | Now, this looks very similar to some people to a checkbook.
| | 02:19 | If you look to the left you'll see this is the date we posted
the transaction. It's telling us the type of transaction--DEP
| | 02:25 | stands for deposit. It shows us the account that the money was sent
to in addition to our bank. It posted it to the opening balance Equity
| | 02:32 | Account. And then to the right over here is our amount. To edit this
amount it's very simple. We're just going to click in the field,
| | 02:38 | (Typing.)
| | 02:39 | add in $250,000,
| | 02:41 | and at the bottom were going to click on Record.
| | 02:44 | We're going to get our window that asks us, "Are you sure you want to
do this? You're making changes to something that was already posted.
| | 02:50 | Are you sure you want to make
those changes?" We're going to say Yes.
| | 02:54 | And if you notice now, it has recorded $250 and we're going to
close our window. And now we've adjusted our balance. So again,
| | 03:01 | if you need to edit an account you can go ahead and do so from
making a change to the name, to change a description, to the change
| | 03:08 | of the balance. Just remember, if you're going to be adjusting balances
you want to make sure that you're doing so with generally accepted
| | 03:14 | accounting principles, and if you have any questions
about that check with your CPA or accountant.
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| Making accounts inactive and deleting accounts| 00:00 | There are times when you may need to make an account inactive or delete
it altogether. An example of this would be if you have a product
| | 00:06 | that you've discontinued and are no longer selling. You may no
longer need the Income Account that you created for that item. Or
| | 00:12 | perhaps you had an account QuickBooks created for you at the
time of the setup and you never used it. The trick is knowing
| | 00:17 | when you can delete something and when you need to make it inactive.
| | 00:21 | The difference being, something that is inactive stays
within the program and you have the option to reactivate it
| | 00:26 | later and continue using it or not.
| | 00:28 | When you delete something, it's gone forever and there's no
getting it back. And that can be a dangerous thing so you have to be
| | 00:34 | really careful when you delete something in QuickBooks. Now
the system itself will not let you delete something that has
| | 00:41 | transactions posted against it. So by default there's a little
safety net of protection built into the program itself. So that
| | 00:47 | should help a little bit. If you go and try and Delete Account,
the system will prompt you and tell you, "Uh-huh, sorry, can't do
| | 00:53 | that," because there's a history here and we're not going to let
you get rid of it. At that point in time you would make it inactive.
| | 00:58 | To make an account inactive,
| | 01:01 | you select the account,
| | 01:02 | you go down to the account button, and if you see in the
list Make account inactive. We're going to select that
| | 01:07 | and poof!
| | 01:08 | it's gone.
| | 01:09 | Now, where did it go? It's still there, it's just hidden it from
you. If you want to view Inactive accounts, you go back down
| | 01:16 | to Account at the bottom.
| | 01:18 | Click in the button and now you have the option to
show Inactive accounts. We're going to select that.
| | 01:23 | And now, if you've noticed my list has changed. All of a sudden
this new column has come into play with this big X. The X represents
| | 01:29 | an Inactive account.
| | 01:31 | We're going to reselect the account
| | 01:35 | and we're going to make it active again.
| | 01:38 | And now it appeared back in the list and our list has gone back
to normal view. If we want to delete an account, get rid of it
| | 01:43 | altogether. We're not going to use it, we're never going to use it again.
We select the account, and in this case we're going to use Uniforms.
| | 01:48 | We're not going to buy uniforms for our staff, I'm not going to need
uniforms in the future, everyone gets to dress casual around here. It's a
| | 01:54 | very nice atmosphere. So we're going to
go ahead and get rid of this account.
| | 01:57 | We're going to select it.
| | 01:58 | We're going to go to Edit on the Menu bar,
| | 02:00 | and we're going to choose Delete Account.
| | 02:03 | Now, QuickBooks gives you this warning window to make sure that
you really want to do this. Because as I said before, once you
| | 02:08 | delete it, there's no getting it back.
| | 02:10 | We're going to say OK,
| | 02:12 | and it's gone. So remember when you're going to choose to delete an account
or make it inactive, you have to think of a couple things. Number one:
| | 02:18 | Does this account have transactions posted against it? If so,
I'm going to make it inactive and not delete it. I'll be able to
| | 02:24 | eventually delete the account once my fiscal year has
closed and I'm starting in to my new fiscal year. Then
| | 02:30 | QuickBooks will allow me to delete it and get rid of it.
| | 02:32 | If I have no transactions posted against it and I know I'm never
going to use it, then I can go ahead and delete the account.
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|
|
6. Setting Up ItemsUnderstanding the Items list| 00:00 | We finished our Easy Step Interview and have created a Chart
of Accounts. Now it's time to create items for the products and
| | 00:05 | services that we sell. This can be a confusing concept and
is much easier if I just show you the finished product first.
| | 00:11 | Don't worry, we're going to be covering how to add items and create
invoices in the following movies, but for now we're going to start
| | 00:17 | with the finished product.
| | 00:19 | If you look on your screen, you can see this is our item list.
| | 00:22 | This contains all the items that we're going to
be using on customer invoices and on vendor bills.
| | 00:28 | The description here tells you what the item is and if you
look to the right you can see the type of item. And again,
| | 00:33 | we're going to cover this in the following movies. However, what I want
to really focus on is the account that is associated with these items.
| | 00:40 | In our prior movie we went through and we created some Income
Accounts and Expense Accounts. Those accounts then become
| | 00:46 | linked to the items that we're going to be making.
| | 00:49 | Where you can really see this is on an invoice.
| | 00:52 | Here's a sample of a customer invoice--
| | 00:55 | and notice here, our list.
| | 00:58 | If you look here, you can see that this is the same list
we were just viewing in our Item window. And this is the
| | 01:04 | information that is populated on the invoice that the client sees.
| | 01:07 | What I want you to notice is nowhere on this form do you see the Income
Account information. That is the behind-the-scenes accounting that
| | 01:14 | QuickBooks handles for you. We'll be
looking more at invoices in a later movie.
| | 01:18 | Now that you know why you need items to make invoices much
easier and more efficient to fill out, let's go ahead and look
| | 01:24 | at creating a new item.
| | Collapse this transcript |
| Adding an inventory item| 00:00 | Let's create our first item.
| | 00:02 | If we go up to List on the Menu bar,
| | 00:04 | we'll go to where it says Item List and left-click. This brings
us into our Item List window and notice there's already one
| | 00:10 | created for us.
| | 00:11 | QuickBooks did this when we went through the Easy Step Interview
and it created tis sales tax item for us. We're going to look at
| | 00:17 | sales tax items later. So for right now, we're going to start with
creating a brand-new item from scratch. You go down to the bottom of the
| | 00:22 | window where the button says Item.
| | 00:25 | We're going to left-click, and I'm sure you've noticed as we're going through
previous chapters here, you always seem to be going down to the bottom
| | 00:30 | of these windows. There's always a button down there and if you click,
that's generally where you're going to find the New option and this is
| | 00:35 | consistent throughout the program.
| | 00:38 | OK, this brings us into our new Item window.
| | 00:41 | And if you see here we, have a dropdown list with all the different
types of items available to us. Now there's several different
| | 00:47 | kinds in here, and you're going to need to know what type
of item you want to create for billing of your clients or
| | 00:53 | using it on vendor bills.
| | 00:54 | We're going to start with an inventory item.
| | 00:58 | Now, Inventory is used when you want to track things
that you buy that you're going to turn around and resell.
| | 01:04 | Some companies require that they track their inventory, others do
not. This is going to be a choice you need to make for whatever
| | 01:10 | your business needs are, but I'm
going to show you how to set one up.
| | 01:14 | For our company, we are going to do some tracking of inventory.
There are products that we buy from someone else and then
| | 01:20 | we keep them on the shelf for a little bit and we turn around and
resell them at a later date. So I want to know how much I've bought,
| | 01:26 | and then I want to know when I've turn around and sold it,
what my quantity on hand is. And to do this, I have to list that
| | 01:32 | item as an Inventory Part. Now in this screen,
| | 01:35 | you see the the first option you have is Item Name and Number.
OK, we buy espresso machines and then we turn around and
| | 01:41 | we sell them to our clients. So we're going to go ahead and create
| | 01:48 | a little brief description in our Item Name and Number and
then we're going to go ahead and Tab over to Manufacturer's
| | 01:54 | Part Number. Wherever you're buying these from, there's probably some
type of a part number you're going to be getting and you would fill
| | 02:00 | that in, in this screen.
| | 02:02 | (Typing.)
| | 02:03 | And then we're going to come down to Description. And notice you
have Purchase Information and a description for the purchase of
| | 02:10 | this item, and then you have Sales Information and a
description that's going to be listed on the sales transaction.
| | 02:15 | The difference here is one description is for where you bought
it from, so from the manufacturer or vendor, and the other is
| | 02:21 | what's going to show up on the client's invoice. Now they can
be the same or you can make them different. Again, it's up to
| | 02:28 | you and what information you want to show in here.
| | 02:32 | (Typing.) Now notice by hitting the Tab key, it populates
what I typed in the Purchase Information into the
| | 02:41 | Sales Information for me. Again, if you don't want them to
be the same, you can go ahead and make a change here. We're
| | 02:46 | going to go ahead and leave them the same.
| | 02:48 | If brings me down here to my Cost field. Now again, when
you're tracking inventory, what the system will do is track
| | 02:54 | your cost, how much you paid for it, and then it's going to track
how much you sold it for. So you get an idea of what your profits are
| | 03:00 | on this item. Our cost for this product is $15. The default
account that this item is going to be linked to is what's
| | 03:08 | called Cost of Goods Sold. A Cost of Goods
Sold Account is not the same as an Expense Account.
| | 03:12 | A Cost of Goods Sold is a cost associated with something that
we sell. Straight expenses have nothing to do with things
| | 03:19 | that we sell. They are part of expenses associated with
operating of the business, but they don't have a direct link to
| | 03:25 | a product that we buy and then turn around and sell later.
So we create a Cost of Goods Sold Account which is associated
| | 03:32 | with something that you're selling. QuickBooks knows this and so
by default it's already created an account and links it to it for us.
| | 03:40 | Preferred Vendor: If I bought my espresso and coffee machines
from a preferred vendor, the same vendor all the time, I
| | 03:47 | could list them here. We have not gotten to that point yet
of creating vendors. If I wanted to I could do a Quick Add
| | 03:53 | right here, but we're going to show this in a later chapter.
| | 03:57 | On this side for Sales Information, this is the information
that's going to come in on my invoice. So when I bill a client
| | 04:03 | for a espresso coffee machine, how much am I going
to charge him for that? So I'm going to put in $75
| | 04:09 | and then we come down to our Tax Code.
| | 04:12 | Now notice, tax was defaulted for this item. And that's
because in the Easy Step Interview we told QuickBooks that we
| | 04:18 | tax for things that we sell. So QuickBooks made an
assumption that we're going to be taxing this item.
| | 04:23 | We could at this time change that if we needed to and this
goes back to whatever your state tax laws are. If you're
| | 04:28 | unsure whether you should be charging sales tax or not,
you need to confirm with your CPA or accountant.
| | 04:33 | We do charge sales tax for this product so we're going to leave
it as a taxable sale. And then lastly, we have to associate this
| | 04:39 | item or link it to our Income Account. And this is how
we're going to track our sales. This is a product so if you
| | 04:46 | remember in our previous chapter, we created under Income our
product sales. And so we're going to link this item to that Income
| | 04:54 | Account, so that later on at the end of the year I'll know
how many espresso coffee machines I've sold and for how much.
| | 05:00 | Down here at the bottom we have Inventory Information.
| | 05:03 | And again, QuickBooks knowing that this is an inventory item,
has already assigned a default Inventory Asset Account
| | 05:09 | for us. Now this is listed as an Other Asset on our Chart of
Accounts. Later on if we wanted to, we could go in and customize
| | 05:18 | this. Edit it, change it, make it a subaccount--all of these
things we talked about in prior chapters to get a little bit more
| | 05:24 | information if we needed to. And again, this is dependent
upon your business. How many different types of Inventory Assets
| | 05:30 | are we to be carrying? Is it in
the tens? Is it in the hundreds?
| | 05:33 | Is it in the thousands? Dependent upon that depends
on then whether we're going to want to have more accounts
| | 05:40 | here, as in subaccounts to be able to better track this level of
information. For us, we're going to leave it on the main account
| | 05:46 | Reorder Point: OK, so QuickBooks says, "Great. You buy a bunch
of the stuff and you keep it on the shelf. At what point do
| | 05:53 | you want me to tell you, hey, you only have this many left.
You're going to need to order some more to sell." So what is that
| | 05:59 | number for your Reorder Point? We're going to go ahead and put in
five. As we start doing business we may find these things are selling
| | 06:05 | like hot cakes, and we're going to have to actually raise our
Reorder Point because we can't keep them on the shelf fast enough.
| | 06:11 | Quantity On Hand: So if my Reorder Point is five,
| | 06:14 | how many do I currently have? Right now we have 25 on
the shelf ready to sell and then our total value gets
| | 06:21 | populated. And this is a calculation QuickBooks
runs by our costs multiplied by the on hand quantity.
| | 06:27 | As of Date is when is we starting with this inventory. What
is our start date that we've put this on the shelf and we're
| | 06:33 | going to book this Inventory Asset into QuickBooks. And notice
it's defaulted to our start date of 1, 1, 2008 and we're going to
| | 06:39 | leave it as such.
| | 06:40 | So now we're going to go ahead and click on OK.
| | 06:44 | And there is our first item that we've created. It's our Inventory
Item for our espresso and coffee machines. And you can see
| | 06:50 | QuickBooks gives you a brief summary of what it is that the item
| | 06:53 | is listed for.
| | 06:54 | When we created the Inventory Item we had to assign an Inventory
Asset Account. Let's go take a look at that now and see how it
| | 07:00 | affected our Chart of Accounts.
| | 07:03 | We're going to go to List, Chart of Accounts.
| | 07:06 | And if you look here now, Inventory Asset has been populated on
the Chart of Account list, and if we go to the right you can see
| | 07:12 | the 375 total, which was the total that QuickBooks calculated
based on the information we provided when we set up the item.
| | 07:19 | And if you'll notice, our total balance now encompasses the 375.
Now keep in mind as you go through and populate your item
| | 07:26 | list, if you're adding a lot of inventory items, they're all going
to be linked to this one Asset Account. And then it would be
| | 07:32 | difficult later on to go back and say, "OK, well how much
| | 07:36 | do I have of this particular item?" So this again is where
subaccounts come into play. You may want to create some sub-
| | 07:41 | inventory accounts to be able to track in detail
the different items associated with them.
| | 07:49 | If when working with your own software you find that you did
not have an inventory item available to you, it's because the
| | 07:54 | preference is not turned on. To turn the preference on,
you go to Edit on the Menu bar. Go down to Preferences.
| | 08:00 | Select Items in inventory. Choose your Company Preference
tab and put a checkmark in this box. This will turn that
| | 08:07 | functionality on. Say OK and the next time you come into
your Item List window, you will have the option to Create an
| | 08:12 | Inventory Item.
| | Collapse this transcript |
| Adding a non-inventory item| 00:00 | We've created our first item which is our Inventory Part. And
now we're going to create another item, which is to be a Non-
| | 00:05 | Inventory item. We're going to go ahead and right-click. And for you
Mac users it's going to be a control-click and we're going to go to New.
| | 00:12 | And again, we're back in our New Item window and we have our
list. And this time we're going to choose Non-Inventory Part.
| | 00:18 | Now the difference between an Inventory and Non-Inventory
is again, on Inventory is for something that you buy that you
| | 00:25 | want to track and that eventually you're going to resell. A Non-
Inventory is simply something that you buy but you don't need
| | 00:31 | to track it. That's it. That's as simple as it gets.
| | 00:34 | So for us, we have other products that we sell but we're not
going to track them as inventory because they're perishable.
| | 00:40 | We make cookies, muffins, cakes, and these are things we bake
early in the morning and then we sell the same day. And there's
| | 00:47 | no point in tracking that as part of inventory because
at the end of the day, we're making a whole new stock.
| | 00:52 | So were going to go ahead and put in our name here for our
first Non-Inventory Part that we're going to sell, which is our
| | 00:57 | 9-inch round chocolate cake. And I'm going to Tab over and
we're going to copy and put the same thing in the Manufacturer's
| | 01:06 | Part Number. And we're going to come down to our Description field.
| | 01:11 | Now, I don't know if any of you have noticed--as we've been going through
these lessons--that my spelling is not as good as it should be. I've
| | 01:17 | become just a child of spell check.
| | 01:19 | So we're going to go ahead and use that right now so you get a chance
to see it. QuickBooks was very nice and accomodating to all of us poor
| | 01:25 | spellers as myself, in giving us a spell check to run through. So yes,
that does not look right. Does it at all? So we're going to make that say
| | 01:32 | round and, of course, we have our list here if it can figure out
what it is I was trying to say. I'm going to click on Replace.
| | 01:39 | Then it goes to chocolate which, of course, I had
misspelled so we're going to click on Replace there,
| | 01:43 | and now it's OK.
| | 01:45 | Alright, we've got our description in there correctly and
if we go over to Price, we're going to populate the price of
| | 01:51 | what we're going to sell this for.
| | 01:52 | Notice that in this window we do not have the option as we did
on an Inventory Part to be able to track a Cost of Goods Sold,
| | 01:59 | or how many of these we purchased, or what we have left on hand to resell.
So here we're going to just populate what we're selling this for to
| | 02:05 | your clients. And we sell our round 9-inch cakes for $15.95.
| | 02:09 | And again, this is a taxable item and we have our choice at
this point if we did not want to charge sales tax, but we do.
| | 02:15 | So we're going to leave that selected.
| | 02:17 | And then we have to choose our Income Account that this item is going to be
linked to so that we know where the money came from, and it's for food sales.
| | 02:25 | OK, and we're going to click on
| | 02:27 | OK. So there we have now our Inventory
and Non-Inventory item for selling.
| | 02:32 | And if you notice up here
| | 02:34 | for the Inventory item, it shows us the quantity we have on
hand and for the Non-Inventory item it's blank, and that's
| | 02:40 | because we don't track that for Non-Inventory items.
| | Collapse this transcript |
| Adding service items| 00:00 | In the prior two movies we saw how to
Create an Inventory Item and a Non-Inventory Item.
| | 00:04 | Now we're going to create a third one, a Service Item.
| | 00:08 | We're going to go back to our New
| | 00:10 | and come back into our New Item window and we see Service
is the first one it's default to. We're going to select that.
| | 00:15 | Now Service items are different from the other two.
| | 00:18 | Inventory items and Non-Inventory items
are generally associated with Product Sales.
| | 00:23 | A Service item would be things outside of that such as
consulting hours, professional fees, or labor charges. We are
| | 00:29 | going to Create a Service Item for our catering labor charges.
| | 00:32 | (Typing.)
| | 00:36 | I'm going to highlight that and I'm going
to put that down in my description as well.
| | 00:40 | I'm going to include my rate that we're
going to charge and we're at $3 per hour.
| | 00:44 | Now I could believe this rate blank if it was something that
fluctuated depending on the job, however, our--pretty much our
| | 00:50 | standard labor rate is $20 per hour.
| | 00:52 | When I'm actually in on the invoice I can make a change at
that time as well if for some reason I wanted to lower or
| | 00:58 | increase the rate.
| | 00:59 | That's not a problem to do at the time of invoicing. But for now we're
going to leave our standard. We have our tax code here and again we have the
| | 01:04 | option of whether we want to make this a taxable sale are not.
| | 01:07 | We do not charge tax on our services or labor charges
so we're going to choose this as a non-taxable item.
| | 01:13 | And lastly, we need to add the Income Account.
| | 01:15 | Now again, in our prior movies we had included an Income
Account for food sales and product sales. But we did not
| | 01:21 | create an Income Account for our labor or catering service
charges. So at this time it would be really great if we could add
| | 01:27 | one. And QuickBooks was kind enough to think about that ahead
of time and give us an Add New option right here from our New Item
| | 01:33 | window. So we're going to go and select that now and notice it
takes us right into our Add New Account. Our Account Type is Income
| | 01:40 | and we go and put in the Income Account Name.
| | 01:45 | (Typing.)
| | 01:49 | And we're going to highlight that and put that in our Description.
| | 01:53 | (Typing.)
| | 02:05 | OK, and at this time we're going to make this a
subaccount. And we're going to add it in under Income.
| | 02:13 | We're going to go ahead and Save and close.
| | 02:15 | And there we go, one quick add all through the Item window, we've
set up our service item for our labor and catering charges, and
| | 02:22 | we're going to click on OK.
| | 02:24 | And there we go.
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| Adding other charges| 00:00 | Another type of item you can create
in QuickBooks is called Other Charge.
| | 00:04 | (Typing.)
| | 00:07 | Other charges are used for miscellaneous labor, delivery
charges, and setup fees, things outside of products that you
| | 00:15 | buy or sell, or services that you buy and sell.
| | 00:17 | In this case, we're going to go ahead and create for our
company an Other Charge that's for delivery charges. So when we
| | 00:24 | cater a job, if we're just going to be dropping off a cake,
| | 00:26 | we're just going to charge the delivery fees
for taking the cake over to that location.
| | 00:30 | We name it delivery charges. We're going
to copy and paste that into our Description.
| | 00:40 | Notice in this window we have an amount or a percentage that we
can apply. For our case we're going to go ahead and charge a
| | 00:45 | flat fee of $20. This again, is not a taxable item. We have
the option but we do not charge tax on our delivery charges.
| | 00:54 | And then we have to associate this with an Income Account.
| | 00:57 | We had previously created our service and labor charges
and that's the account we're going to select for this item.
| | 01:02 | We're going to say OK.
| | 01:05 | And notice again, we've now added to our Item List, and we
have delivery charges. If you look here to the right our type
| | 01:10 | fields are filling up with all different types of items that
we have available to sell and buy to our clients and vendors.
| | Collapse this transcript |
| Adding sub-items| 00:00 | As you can see our Item List is starting to grow with all
different types of things that we sell. And this list can get
| | 00:06 | very long, especially for our industry. There's a lot of
cakes that we bake, different kinds, cookies and muffins, and so
| | 00:12 | this list is going to get very lengthy. However, there are a lot of
similar items that are on here and I want to be able to group those
| | 00:18 | items together. So I can apply the same concepts I learned
through subaccounts in our previous chapters to our Item List.
| | 00:24 | So we're going to create a couple more quick cake accounts and
then you can see how we can create subaccounts out of those for
| | 00:30 | easy organization.
| | 00:33 | We're going to select our Non-Inventory Part again
| | 00:35 | and this time we're going to make a lemon cake.
| | 00:39 | (Typing.)
| | 00:52 | And we're going to charge $25 and it's a taxable item. And we're going
to go ahead and choose Income Account of food sales and say OK. And
| | 01:00 | we're going to make one more.
| | 01:02 | (Typing.)
| | 01:16 | Whoops. Too many decimal points there.
| | 01:21 | OK, we're going to create our Income
Account again, food sales, and say OK.
| | 01:25 | Alright, so now we have three different kinds of cakes. They're all
Non-Inventory. They're all coded the same Income Account. And I want
| | 01:32 | to go ahead and create a main cake account that I can
sub or roll all of my individual items under, so if at any
| | 01:40 | one time I wanted to see that total for cake sales, it's
a quick easy look. Or if I need to see, well, how much am I
| | 01:46 | selling of a particular kind of cake, I'll have that available
to me as well. So we're going to create our main account
| | 01:54 | which is just going to be called cakes.
| | 01:57 | And finally, cakes.
| | 02:02 | There isn't going to be a price associated with this
account. It doesn't matter whether it's taxable or not.
| | 02:06 | The Income Account though, however, is important. We're going to
choose Income. The reason you don't need price or tax information
| | 02:12 | is I'm never going to actually use this as an item on the invoice.
The client's never going to see it. This is for internal purposes
| | 02:20 | only so there is no price that has to be associated with it.
| | 02:23 | We're going to go ahead and say OK.
| | 02:24 | So very similar to my Chart of Accounts here. If you'll notice,
I have the diamonds on the left.. I've got all of my descriptions
| | 02:31 | showing up on the left, so just like we
did on the subaccounts for Chart of Accounts,
| | 02:36 | the same rules apply. We have to have the account we're going
to be putting under the main account, below the main account
| | 02:43 | in the list.
| | 02:44 | Which we have everything except our 9-inch
round chocolate cake. It's above the word cakes.
| | 02:49 | So that's the first thing I'm going to move down. I'm going to get my
four-headed arrow hovering over my diamond. I'm going to left-click and
| | 02:55 | hold and I'm going to drag this below cakes. I'm going to release and
there we go. So now they're all listed under cakes and I'm going to go
| | 03:02 | ahead and click and hold, and drag one end to the right. And
now I've just subbed 9-inch round cake underneath my cakes.
| | 03:09 | I can also go a different route with it.
If we right-click and we go to Edit item,
| | 03:14 | notice my sub-item checkbox in here.
We can go ahead and select that.
| | 03:18 | Click in our dropdown and there's cakes available to us there as
well. So that's another option. We're going to go ahead and say OK
| | 03:23 | there.
| | 03:24 | And finally, white cakes will go back to
the easy quick and hold, drag over.
| | 03:29 | And there they are.
| | 03:30 | So we've now grouped those very nicely under cakes, and at any time
later on down the road, it will be real quick and easy for me
| | 03:37 | to know what my total cake sales are, or individually
based on the type of cake sale I'm making.
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7. Sales TaxLearning if it's necessary to collect and pay sales tax| 00:01 | Depending on where you do business, you may be required to
pay a portion of your revenue to the government in the form of
| | 00:06 | a tax. This is generally referred to as a sales tax. If
you're required to collect sales tax, you also must then pay it
| | 00:14 | to a tax agency on a regular schedule that the tax agency
sets. If you're unsure as to whether you should be
| | 00:20 | collecting and paying sales tax, you really
should check with your CPA or accountant.
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| Setting up sales tax items| 00:01 | During the Easy Step Interview we told QuickBooks that we
charge sales tax. That is why QuickBooks made the default
| | 00:07 | out-of-state tax account that you see right here. Now if you
look to the right it tells you what the item type is. So
| | 00:13 | sales tax items are created just like the other items in the Item
List. It gives you the account name and then over the right
| | 00:20 | it says zero. And that is because this item is out-of-state
exempt. So that means we're not charging anybody for
| | 00:26 | taxation because that's an out-of-
state sale. Now for our business,
| | 00:31 | typically 99% of the time people are going to be right up our the
counter, paying us right then and there, and walking away with
| | 00:36 | the goods. And where our business is located, we do charge sales
tax. So we need to Create another Tax Item that has a tax rate
| | 00:43 | percentage assigned to it. So to do that we're going to
go to the same place we created all of our other items.
| | 00:49 | And again, we're in our New Item window. And if we look towards the
bottom we have an option for Sales Tax Item. We're going to go ahead and
| | 00:56 | select that. And here we're going to put in our Sales Tax Name. In
this field you want to put in the name of the county, city, or state
| | 01:04 | that's requiring you to collect the tax. For us, in our county it's
Anywhere. And then the name of our county that's requiring us--
| | 01:14 | that collects our sales tax. And in the Description,
| | 01:20 | notice it just drops in sales tax, and I'm going to give it a
little bit more of a description. The reason that I do this is
| | 01:28 | some states go down to the county level
| | 01:31 | and each county will have their own tax rate. So there are
some areas where you can have multiple sales tax that you
| | 01:38 | will be applying especially if your business is located in
multiple areas. For some people it'll just be one. For other
| | 01:46 | people they'll have to create multiple of these. So we're going to go
ahead and give it a little more description and we're going to come
| | 01:51 | down to our tax rate. And we're going to charge 7.25%
in our Sales Tax. Now, the final option here is the Tax
| | 01:59 | Agency. This is the
| | 02:01 | vendor that we're going to pay the tax to that we've collected.
| | 02:05 | OK and again, if you're unsure of all this, you really need
to check with your CPA or accountant. Now if you look down
| | 02:11 | here in the dropdown, oh, it's blank. And that is because the T
ax Agency is the vendor and we haven't set up any of our
| | 02:17 | vendors yet. But at this point in time, we can do a Quick Add
| | 02:21 | and very quickly just populate the information we need
for this one item. So we're going to go click on Add New.
| | 02:27 | It takes us into our New Vendor window.
| | 02:30 | So just like before in our previous movie where we were in an
item and we didn't have the Income Account we needed, we can
| | 02:35 | do a Quick Add Setup here for our vendor.
And we're going to type in our Vendor Name.
| | 02:39 | (Typing.)
| | 02:43 | And because we're going to do this real quick, down and dirty, we're
not going to fill in the rest of the information right now. We can go
| | 02:49 | back later and populate all the address
and contact information that we need.
| | 02:53 | We're going to click on OK
| | 02:55 | and now we have the Tax Agency set up.
| | 02:58 | So we've created our Tax Item.
| | 03:00 | We're going to say OK.
| | 03:01 | And if you look out here, here it is under our Name
List. And if we go to the right there's our 7.25%.
| | 03:08 | Now, this item is going to show up on our invoices
where we can apply that to anything that we sell.
| | 03:13 | And that's how you add a Sales Tax item.
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| Setting up sales tax codes| 00:02 | If you're at your own computer and you do not have an option
to Create Sales Tax Items, or to Collect Sales Tax, or any of
| | 00:08 | these features, it's because it's turned off in QuickBooks. And
what you need to do is you have to go turn it on and we find that
| | 00:14 | under Preferences.
| | 00:16 | So we go to the Sales Tax. This is
going to be a Company Set Preference.
| | 00:20 | And if you look right at the top here, Do you charge sales tax. It
should say yes and then the feature will be turned on and you'll be able
| | 00:27 | to create sales tax items. If it says
no, then you need to turn it on.
| | 00:31 | Also, you can see right here you can Add
a Sales Tax Item, which is what we just did.
| | 00:35 | And down here you can assign sales tax codes. Now if you
remember in the previous movie when we were setting up the Non-
| | 00:42 | Inventory and Inventory items, we were choosing whether they
were taxable or nontaxable. And this is here where you can add
| | 00:49 | additional codes if you need to for whether something is
taxable or nontaxable. For most of us these two codes are
| | 00:56 | enough, but in some cases depending on where you live, the state
may require additional explanation when you're not going to
| | 01:02 | tax something. They don't want you
to just lump it under this if
| | 01:05 | it's not taxable. Well that's great, but why isn't it taxable? Maybe
a little more explanation there might be needed. So you can
| | 01:13 | add some additional codes which we're going to go ahead and do.
| | 01:15 | Give you one as an example
| | 01:17 | for why you would say something is not taxable or I'm not going to
charge it for sales tax. And in most cases, it's things like nonprofit
| | 01:24 | organizations or it's labor and I don't
tax for labor, things of this nature.
| | 01:30 | So for us we're going to create a nontaxable labor code. And
we're going to use LDR as an abbreviation for the tax code. And
| | 01:39 | we're going to go ahead and say Non-
| | 01:41 | Taxable labor and notice that's what's selected here.
| | 01:48 | And we're going to go ahead and say OK
| | 01:50 | and that's what comes up.
| | 01:52 | As far as what you seen down here,
| | 01:54 | When do you owe sales tax, and you have choices for an Accrual-
Basis or Cash-Basis. Again, as we talked about previously,
| | 02:00 | Accrual-Basis is
| | 02:02 | I'm not going to recognize the revenue until person has
not only paid me but received their product or service.
| | 02:09 | You're either going to owe as of the invoice date, which is
on Accrual-Basis or upon receipt of payment on a Cash-Basis.
| | 02:15 | When do you pay sales tax? That's going to be determined by the ax
agency and they will let you know, believe me. It's either going to be
| | 02:22 | monthly, quarterly, or annually.
| | 02:25 | We're going to click OK and
leave the Company Preference window.
| | 02:30 | Once you begin collecting sales tax,
you will need to know how to pay it.
| | 02:33 | We will cover paying sales tax in
the additional information chapter.
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8. Customer InformationUsing the Customer Center| 00:01 | The Customer Center shows all of your customers and their
transactions in a single place. Up to this point we have been
| | 00:07 | working with a company file that is void of data. For
this exercise we will open a pre-populated file which will
| | 00:13 | provide you with a good example of what your
QuickBooks file will eventually look like.
| | 00:17 | If you access to the exercise files,
at this time please go to the File menu
| | 00:22 | select Open or Restore Company,
open a company file, click on Next.
| | 00:27 | In your drop down, go to your Desktop, choose exercise files,
chapter 8, and select the company file. Click on Open.
| | 00:37 | If you don't have access to the exercise files don't worry,
you're not missing anything. We've pre-populated the database
| | 00:44 | because it just makes it easier to understand.
| | 00:46 | To open the Customer Center we go to the navigation bar,
| | 00:49 | Click on the icon called Customer Center
and it launches the Customer Center.
| | 00:54 | If you look here on the left, you can see that we have a tab that
says Customers & Jobs and listed is all the customers we have
| | 01:01 | in this file. On the right is the balance associated with
that customer. And if you left click one time on a customer,
| | 01:07 | we can see that the transactions associated
with this customer come into view.
| | 01:11 | We have currently showing All Transactions. If we filter
this information to show us other types of transactions such
| | 01:18 | as Sales Receipts or possibly Receive Payments, then
the Filter By comes into play and you can look at
| | 01:24 | different ways to filter the
information that would be in view.
| | 01:27 | If we just show Invoices then you can filter by All Invoice
or just Open Invoices or perhaps invoices that are overdue.
| | 01:36 | We're going to go ahead and leave it as All Transactions.
| | 01:38 | And then you also have a Date filter. So again this
is just different ways to view your information.
| | 01:43 | Above is listed a summary of the customer's contact information.
We're going to look at how you populate this information in
| | 01:49 | the next movie. If you go back here
to left, you see Customers & Jobs,
| | 01:55 | and below that is Active Customers, and there's a drop down arrow.
If we click on the drop-down arrow we can see that there are
| | 02:01 | additional ways to view the customer information and again
all of this is nothing more than different ways to view the
| | 02:07 | data here. So if you're looking for something in particular,
you can filter out information and pare down your view.
| | 02:14 | Here, you can either view all Active Customers, All Customers
or Customers with Open Balances, So you have different ways to
| | 02:22 | view the information here. We're going
to leave it as all Active Customers.
| | 02:27 | The Transaction tab, when you click on that to bring that into
play, is another way of viewing your data. Instead of by customers,
| | 02:35 | you can now view the information by transaction and if you look to
the right, now it's showing you the customer here, but only just
| | 02:41 | invoices associated for all these different customers. Again
you have Filter By as an option, and you can filter by All
| | 02:47 | Invoices, Open Invoices, or Overdue. And you can also use
Date as a filter option. So by selecting the different
| | 02:55 | transaction types we can see different
types of transactions for all customers.
| | 03:00 | We're going to go ahead and go
back to our Customer & Job tab.
| | 03:04 | This arrow pointing to the right is for showing a
full list of information associated with your customer.
| | 03:11 | This information can be customized for your own particular
needs. Right now it's just showing the name of the customer, their
| | 03:17 | Ship to 1 field that's set up on the Customer Profile and their
balance and any notes you may have. If we wanted to add more
| | 03:24 | information into this view. we would simply
right-click or Control-click for a Macintosh
| | 03:29 | and select Customize Columns.
| | 03:32 | In here it brings us to our Customize Columns view. As you can
see we have all these different fields we can use and bring
| | 03:39 | into view. We're going to go ahead
and add in some more of our address.
| | 03:42 | We're going to select the Ship to number 2
and we're going to also add Ship to number 3.
| | 03:48 | Now once it populates it to the right, we want to put it in
the correct order. So by selecting it and clicking on Move Up,
| | 03:54 | I can move it into the order that I need, and we're going to
do the same thing with ship to 3 and now I'm going to say OK.
| | 04:01 | You can see that it populates it in the view and we're going
to click and drag this out, expand the list so we can see all the
| | 04:07 | information clearly. So this is now giving us our name,
our ship to 1 field, the additional ship to address fields,
| | 04:15 | and again if we wanted to customize this
further, we simply right click or Control-click
| | 04:20 | Customize Columns and it brings
us back into our Customize window.
| | 04:25 | If we don't want to keep this list extended we just simply
left click one more time on the arrow and it collapses and any
| | 04:30 | time you want to bring back the information,
we left click again to show the full list.
| | 04:36 | Again the Customer Center shows all of your customer
information and their transactions in a single place. We're going
| | 04:41 | to look now at how to create a
new customer in our next movie.
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| Adding a new customer| 00:01 | To add a new customer we're going to go to
where it says New Customer & Job and we're going to
| | 00:04 | click on that one time and select New Customer.
| | 00:08 | Alright, it brings us into the New Customer window and the cursor
is blinking for Customer Name. Now entering the Customer Name
| | 00:14 | can be done several ways. For larger companies that may have
customers with the same last name sometimes they choose to
| | 00:20 | use a convention of a mix numbers and letters and generally
it's the first three numbers of the address and the first
| | 00:28 | three letters of the last name. If you don't have that large
of customer database, you can just use the full customer name.
| | 00:34 | For our exercise purposes we're
just going to use the customer name.
| | 00:38 | And when it's an individual we go last name first,
and I strongly recommend that is how you put it in.
| | 00:46 | And then we're going to come down to our opening balance. Now an opening
balance, this is similar to when we were on the chart of accounts, and we set
| | 00:52 | up an opening balance for our bank. You have the same choices
and questions here you have to ask yourself before you
| | 00:58 | populate this field and the scenarios go something like this.
| | 01:02 | If I have existing company with existing clients who owe me money,
| | 01:06 | I have to look at the date I'm converting to QuickBooks. How much
history do I have and do I want to take the time to bring that
| | 01:13 | into QuickBooks or would I rather leave
that history in my existing program?
| | 01:17 | Then I will just reference back there when I need to, and
starting with my conversion date, I'm just going to populate that
| | 01:23 | going forward with all new transactions associated with this
customer. And this is the choice you have. You have to ask
| | 01:29 | yourself is it worth the time and energy to take all this
information from this old program and populate it into the new one?
| | 01:37 | And that will depend on the volume we're talking about.
| | 01:40 | If your company is brand new and you have no history, then it's
a piece of cake. The opening balance is zero. But if you're coming
| | 01:46 | with prior information you have to look at what your conversion
date is and how much data you have to bring over. You
| | 01:54 | can just put in the balance as of the date of conversion.
Then that is all it will be is a lump sum.
| | 02:01 | The detailed information will be left in the old program. Or you
can choose to input into QuickBooks each transaction individually.
| | 02:09 | And again that depends on how much time you want to take.
| | 02:12 | For our exercise purposes we're going to go ahead and leave this
blank because as a brand-new client we haven't sold them anything.
| | 02:18 | Down here in the main body we have several tabs. The first tab
is the Address Info tab, and if this had been a company we would
| | 02:25 | populate the Company Name field. This is not a company
it's an individual so we're going to skip that field
| | 02:30 | and come down here. Now Patty is not married so she's a Miss.
I'm going to go ahead and put in her first name.
| | 02:38 | No initial, and we're going to put in her last name. And I'm using my
Tab key to move on down and if you notice in the Bill To section it
| | 02:47 | populated my client's name for me.
| | 02:49 | Now in here I can just go and hit my Enter key, come
down a line and continue with populating the address.
| | 02:55 | Or I can click on the Edit button and it takes me into the Edit
Address Information field. Either way does the same thing,
| | 03:02 | it's just a matter of choice. From in here or we can go ahead.
| | 03:13 | Then we're going to come down into City,
| | 03:19 | State,
| | 03:21 | and Zip Code.
| | 03:24 | Then click on OK.
| | 03:27 | Now we have a Bill To address and a Ship To address and a nice
little handy-dandy Copy button. So if they're both the same we
| | 03:34 | don't have to retype. We can just click on Copy and this
brings up this window. Now notice Address Name is Ship To 1
| | 03:41 | and then populates all the same data. If I say OK, look here
now we have a Ship To 1 and a drop down. That is because
| | 03:48 | QuickBooks allows you to have multiple shipping addresses
for this client. So if you need to add additional shipping
| | 03:53 | addresses you would click on Add New
| | 03:55 | and it would take you into another Ship To Address window and it
would label it Ship To 2. We don't for this client so we're just
| | 04:01 | going to go ahead and cancel.
| | 04:03 | Also notice here your additional buttons of Add New, Edit and
Delete, which all affect your Ship To address and lastly you have
| | 04:09 | a default shipping address. So if you do have multiple, you
can pick one of them to be the default that QuickBooks will
| | 04:16 | always choose to use, and then you can choose
the other ones later at any given time.
| | 04:22 | Up in here, in our contact information again QuickBooks
has populated based on the Customer Name information and
| | 04:29 | we're going to go ahead and put in Phone Number,
| | 04:35 | fax,
| | 04:39 | and then you can fill in the rest the fields
as you would need, and an e-mail address.
| | 04:54 | And notice as I go out of the field QuickBooks gives me a little
pop-up so I can see all of the text even though it may not
| | 05:00 | be in view. Alright we're going to go
ahead and go to Additional Information.
| | 05:05 | In the Categorizing and Defaults field
| | 05:07 | Type is used for customers to be able to categorize them by
different things, and that will depend on your business, how you
| | 05:13 | want to use the Type field or whether you want use it at all.
For our business we're looking at trying to be able to find
| | 05:19 | out where the customers are coming from, how do they hear
about us? We have web site advertising, we're using yellow
| | 05:25 | pages advertising and newspaper. So in our Type we're going to
say this is how the customer heard about us. They came from the
| | 05:32 | web site. They came from the Yellow Pages.
They came from fill in the blank.
| | 05:38 | And that way later on when I pull up some reports, and I want
to see where are my marketing dollars going? Where am I gaining
| | 05:45 | most of my customers from? I can pull a report by this field,
and it will show me Yellow Pages and all the customers
| | 05:51 | associated with that. It will show the web site and all the
customers associated with that, which will help me direct better
| | 05:57 | my expense and my marketing dollars and
filter that money where it should go.
| | 06:02 | For you if you want to create a new Type, click on Add New.
| | 06:06 | It takes us to our New Customer Type window and in here we're going
to add in Newspaper as another Type. because again I advertise
| | 06:13 | under newspapers, I advertise under web site and I advertise
in the Yellow Pages. So we're going to fill in Newspaper and
| | 06:22 | notice here we have a Subtype and go ahead and select that and
again we cover just like subaccounts and subitems and subtype,
| | 06:31 | we're going to choose from Advertisement
and we're going to click on OK.
| | 06:34 | And there it is populated in our Type window.
| | 06:38 | So you have to look at your business needs and see if you want to
use Type to categorize your clients in some way that makes sense
| | 06:44 | for your business. In Terms you're going to associate with each
client. One is it that they owe you money for something they've bought.
| | 06:52 | Now there are standard terms that most companies use. It's Due on
Receipt, meaning at the time the sale basically the money's due.
| | 06:59 | Net 15 means it's due in 15 days from the date of the sale.
| | 07:03 | Net 30, which is due 30 days from the date
of sale and Net 60, 60 days from date of sale.
| | 07:09 | You also can give discounts or money off it they decide to pay
you early, which is what the 1% and 2% from the 10 net 30.
| | 07:16 | Meaning if they pay me in 10 days even though they have net 30 terms,
I'll give them a 1% discount off the sale price. And the same
| | 07:23 | thing here. Consignment are for pieces that are on consignment,
and you're reselling them for someone els. Now if you need add in
| | 07:30 | another term that you don't see here, we click on Add New,
| | 07:35 | and it brings us into a New Terms window. We're going to
go ahead and create one more discount term for our clients.
| | 07:46 | We're going to give it that name. It's going to be a 5%.
If they pay us in 10 days even though it's a net 30 term.
| | 07:52 | So the net due is 30 days, the discount percentage is
5% and it's a discount if they pay us within 10 days.
| | 08:00 | You do have a date driven option, but I recommend you stick
more with this the standard. You can look at this and play
| | 08:07 | around with this and see if that works for your business needs
but we're going to go ahead and do a standard option and give
| | 08:11 | them a 5% discount off if they pay us early.
| | 08:17 | Okay we can also assign a sales rep to this customer, and again
this comes in handy down the road I want to run some sales
| | 08:26 | reports and look up what customers are associated by what rep. If
we click on the drop-down arrow you can see I have one sales rep
| | 08:33 | existing and we're going to go ahead and add another one
at this time. This brings us into our New Sales Rep window.
| | 08:39 | And the first thing we're going to
do is type in the Sales Rep Name.
| | 08:45 | Jr. Mint. And when I clicked on Tab, it brought me up into
this window saying well, I looked for the sales rep name, and I
| | 08:52 | couldn't find it so at this time do you want to Quick Add this
person as an employee or do you want to go through a full-blown
| | 08:58 | set up? So since we're kind of in a hurry, you know we're moving,
we're selling, we got to get going here, we're just going to do a
| | 09:04 | Quick Add at this time. If we wanted to,
we could also go through the full setup,
| | 09:08 | that's certainly an option, but for our purposes
today, we're going to go ahead and do a Quick Add.
| | 09:14 | You have to choose how this person is set up in your company.
Are they a vendor? Are they employee? Are they other?
| | 09:19 | For our purposes they're an employee.
And we're going to click on OK.
| | 09:24 | Notice in here it already filled in my Sales Rep Initials
based on the name and it gave my Sales Rep Type as an Employee.
| | 09:31 | I'm going to go ahead and click on OK.
| | 09:34 | And now it's filled in and if I click on my
drop-down, I now have both of my employees listed.
| | 09:39 | Preferred Send Method.
| | 09:42 | If we had selected e-mail for our client as long we subscribe to
the QuickBooks Billing Solutions whenever we go in to Bill the
| | 09:49 | client, create an estimate, the preferred method of send
would be selected for e-mail. If you're not subscribing to
| | 09:56 | the QuickBooks Billing Solutions then
this will have no impact on those forms.
| | 10:01 | We go down to the Sales Tax information and in here we have a Tax Code,
and as you know in previous lessons we talked about how you can create these.
| | 10:09 | Our client is taxable so we're going
to go ahead and leave that as default.
| | 10:12 | If this client was exempt from sales tax, in our Tax Code
we could select Nontaxable sales, and we could fill in a
| | 10:19 | resale number associated with this client if they were a reseller
of our goods, meaning they bought it from us and then they
| | 10:24 | turned around and sold it to somebody else. This client
doesn't do that and we do charge taxes to them when they buy
| | 10:31 | goods from us. So we're going to leave it as Taxable.
| | 10:33 | And notice our Tax Item has already defaulted to what
we had set up previously for our anywhere sales tax.
| | 10:40 | If we come over to the right we have
a Custom Fields section and it's empty,
| | 10:43 | and that's defaulted in QuickBooks. What this gives you is options
to define some custom fields that you want to add for your client.
| | 10:50 | We're going to go ahead and do some right now.
| | 10:52 | If we click on Define Fields it brings
us into our Define Fields window.
| | 10:57 | Now for our client, we're going to go ahead and set up some
fields here that we're going to populate later for information
| | 11:03 | for possible catering or marking to events that we know may be
occurring for this client down the road, one of those being a
| | 11:10 | birthday. We do sell birthday cakes so it would be nice to know
the client's birthday. So later on we can send maybe a little
| | 11:15 | marketing flyer too, reminding him that we're having a special
on cakes or cookies or something. So in the label we type in
| | 11:21 | Birthday and then to the right you can see these are
the different areas that this label can be populated into.
| | 11:27 | For our purposes we're only going to put Birthdays on
Customer:Jobs, meaning in the Customer:Job field this label will
| | 11:34 | appear. Now while we're in here, we're al;so going to put
another label and this is going to be for Anniversaries.
| | 11:41 | And again this is for our clients. We do a lot of wedding cakes
so we know their actual marriage date and so when that comes
| | 11:48 | around for the next anniversary we can set them out a little
marketing flyer and maybe hopefully they'll come back and get
| | 11:53 | some more treats from us during that time. And then lastly
for our commercial clients we're going to put in web site
| | 12:01 | because it's good to have that information contained on our
commercial clients. So we're going to go ahead and click on OK.
| | 12:06 | This is an information window that pops up letting you know that
you've activated this for the first time. We're just going to say
| | 12:11 | OK. If you didn't want to see this pop up again in the future
you can put a check mark in here for please do not display.
| | 12:18 | And there are our custom fields and we can click in here and
populate them with that information. Now the reason that you
| | 12:24 | go about doing this besides just gathering the information in
the Customer window is later on in reports that are run by
| | 12:30 | this client we can go and actually filter by these fields.
So if we want to look up everyone on the same birthdate to
| | 12:36 | do a mass mailing to for that given month, we can run a report
by that field. We've set up all the information that we're
| | 12:43 | going to set up for this customer at this time.
| | 12:46 | So we have in their Bill To and Ship To address.
We've got in their Contact Information.
| | 12:51 | On the Additional tab we've set up the type of customer they are,
the Terms, the Sales Rep associated, their preferred send
| | 12:57 | method, whether they're taxable or not, and we've created some
custom fields. So at this point we can go ahead and say OK and
| | 13:03 | save this customer. And that's done
for setting up a new customer.
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| Adding a new job| 00:01 | Jobs are an easy way to organize multiple billing events
under one customer. The same concepts we learned in previous
| | 00:07 | movies regarding subaccounts and subitems
can be applied to customer jobs.
| | 00:12 | Traditionally construction-based companies use Jobs for Billing
their customers for different phases of construction:
| | 00:18 | home remodels new construction, bathroom remodels, so on forth.
You would create a customer job and bill them appropriately
| | 00:26 | for that event. In our industry we're going to use them for
events, specifically for weddings and anniversaries, birthdays.
| | 00:34 | We're going to go ahead and take one of our existing
customers and add a wedding event to that customer or job.
| | 00:40 | Sally Sugar's getting married. She's going to marry Jo Sweet.
| | 00:43 | And they're going to be Sugar and
Sweet. Sally Sugar is getting married.
| | 00:47 | So we're going to go ahead and add a job to her account.
| | 00:49 | We're going to go up to where it says New Customer
& Job and we're going to click on Add Job.
| | 00:55 | Okay. Now we're in a New Job window and it's
asking us for the Job Name, not the Customer Name,
| | 01:00 | and this is going to be Sugar & Spice Wedding.
| | 01:06 | We're going to go over to the Job Info tab.
| | 01:08 | We're going to fill in the information
associated with this job. So the Job Status.
| | 01:13 | Notice you have different options here. Pending is if you had
given them an estimate and you are waiting for that to come back.
| | 01:19 | Awarded means they accepted your estimate but
you actually haven't started anything yet.
| | 01:23 | In progress is you're in progress doing the job and Closed means
it done. Not awarded, I gave it an estimate and they declined.
| | 01:32 | So you can track these things if you want to see how many of
these are going out and how many are being converted or in
| | 01:38 | what status or progress the job is in. For us
we're going to go ahead and be in progress.
| | 01:45 | We're going to choose a start date for the job.
| | 01:47 | So their wedding is going to be March 1 with a projected
end date of the same day, cause it's just a one-day event.
| | 01:54 | Now if this was a construction job,
| | 01:56 | perhaps it was going to go over a course of six months. So you
could have a start date being of March and an ending date in June,
| | 02:03 | or projected ending date I should say. And an actual ending
date for us would be completed when the job is completed.
| | 02:10 | We're going to go ahead to Job Description.
| | 02:17 | And so we've typed in their names
and now we're going to put in Job Type.
| | 02:23 | And this is going to be a Residential.
| | 02:25 | Now similar to Customer Type, you can put in further Job Type
information and again this can be used later on reports
| | 02:31 | if you're trying to categorize what types of job you're doing
most. So if again I want to see how the bathroom remodels
| | 02:38 | am I doing? How many kitchen remodels am I doing? How many
weddings am I doing versus how many birthdays am I doing?
| | 02:44 | Things of this nature. We're just going to go
ahead and leave for the default for this time.
| | 02:48 | And go ahead and click on OK.
| | 02:51 | And it's added a job to our Sally Sugar.
| | 02:56 | Now if we had additional events happening with this person we
could continue adding jobs and they would list in this view here.
| | 03:03 | There is another way, you can add a job in QuickBooks and I
don't recommend it because it has some drawbacks to it. But when
| | 03:10 | you're in Creating New Customer,
| | 03:12 | right in here you have a Job Info tab, and clicking on it you
see it's all the same information. The only thing different is up
| | 03:19 | here it says Customer Name and not Job Info. What QuickBooks
does is if it's just one job it says okay, we're just going to
| | 03:25 | combine in all right on to the customer template.
| | 03:28 | This can create problems down the road if you then look to
add additional jobs, and you want to break out those jobs
| | 03:34 | independently from the customer setup. I don't recommend
it. It can create some problems for you. I strongly just
| | 03:41 | recommended if you're going to add even a
single job you go to the Add Job window.
| | 03:47 | So as you can see similar to subaccounts and subitems,
having jobs on customers gives you a little bit more
| | 03:54 | information and a quick glance to see you what you may have
pending for that customer. It can break out from a revenue
| | 04:01 | standpoint and help track a little bit easier
for you where the money is coming in from.
| | 04:06 | Plus on reports later on you'll be able filter by this
information and really get a good idea of where you may want to
| | 04:12 | spend your marketing dollars towards.
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| Merging customers| 00:01 | There are times where in business you may come across some
duplication in your customer list and you need to merge two
| | 00:08 | clients together. It doesn't happen very often, but generally if
you have a very large client database and there's multiple people
| | 00:14 | working in the file, sometimes duplication can occur and you end
up with more than one account for the same client and you need
| | 00:20 | to combine the two. Now you have to be careful when you
do this. Number one, once you merge a client there is no
| | 00:27 | un-merging it or breaking it back apart.
| | 00:29 | All the transactions even in the closed periods will now be
under one name, and it may also affect previous financial reports.
| | 00:36 | The data associated with a merge customer job such as address,
phone number etc. is removed from your records along
| | 00:42 | with the name and so you really have to make sure that this
is what you want to do. That you're getting rid of this old
| | 00:48 | information and merging it all under the one. It will take
the history as far as the invoicing and the transactions that
| | 00:55 | are associated with it. But anything on the
Address tab, you're going to get rid of that
| | 00:59 | and you're going to go everything under the correct name.
| | 01:02 | So if you look here in our list we have Hazelnut Hotel and
we have a second Hazelnut Hotel that got put in there by
| | 01:08 | mistake. Someone misspelled the name hotel and must not have
seen the first one, and we're just using this as an example.
| | 01:14 | And there was a transaction posted to it and really this is
the same customer so we want to merge them together. So this is
| | 01:21 | the wrong one. The correct information is on this
Hazelnut Hotel. So we're going to go ahead and open this.
| | 01:27 | Now we're in the Edit window and we're going to change the
name to the correct spelling we're going to click on OK.
| | 01:35 | Now this is giving us our Merge window and it says This name is
already being used. Would you like to merge them? At this point,
| | 01:41 | if I say yes I'm going to lose the data associated on this
address window. All of this data is going to go away and it's
| | 01:48 | going to take the data that's on the other Hazelnut Hotel and
it's going to assume that's the correct data. It should take my
| | 01:55 | transactions with it, that won't be a problem, but it's going
to merge all my data together. Once I do this I cannot undo it.
| | 02:00 | We're going to go ahead and say Yes.
| | 02:02 | It's telling me that I'm going to lose this data. As I said,
everything on the address info window we're going to lose.
| | 02:08 | So I'm going to say that's fine.
We're going to continue and say OK.
| | 02:12 | Now if you see here,
| | 02:14 | we only have one Hazelnut Hotel, the other one is gone,
but it did bring in our invoice number, so it does take the
| | 02:20 | transactions over with it, but it leaves us now with one customer.
| | 02:24 | So again, just remember, if you're going to merge customers,
you cannot undo it once you merge. You may affect
| | 02:31 | transactions that occurred in closed periods. And it can also
affect previous financial reports. So remember to be careful,
| | 02:37 | because once you merge data you cannot unmerge it.
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| Making customers inactive and deleting accounts| 00:01 | There may be times when you need to make a customer inactive or
delete it because you're no longer selling to that client. When
| | 00:08 | that happens, you need to make a choice. Whether you want to
actually delete the customer and take them out of your database
| | 00:13 | completely, or if you want and make them inactive and save
the record or information in QuickBooks that you can use at a
| | 00:20 | later date. Making someone inactive is probably the better way
to go and how I would recommend handling your customer records
| | 00:26 | until you really understand whether you're going to need that
information or possibly that you'll be reselling to that client
| | 00:32 | at a later date. Deleting can be dangerous, because
once you delete something you cannot get it back.
| | 00:37 | To make a client inactive, you
choose the client and right click.
| | 00:43 | You get a pop-up window and see where it says Make Customer
Job Inactive, you select that and it disappears out of your
| | 00:50 | list. Now it's still held within QuickBooks, you just don't
see in view anymore. If we go to the top we see View - Active
| | 00:57 | Customers. We click on the drop-down and
it gives us the choice to see All Customers.
| | 01:01 | This now includes inactive and similar to when we learned about
the chart of accounts, the x represents inactive accounts
| | 01:08 | or inactive clients or customers in this case. So Peppermint
Patty has been labeled as inactive. To reactivate her, we can
| | 01:15 | open her up by double-clicking. And if you'll notice right here
in the Customer Edit window, there's a check mark put in Customer
| | 01:22 | inactive. We deselect that and say OK. The list this still in
view for All Customers, but there's no further x's in play and
| | 01:30 | so all these customers are currently active and we'll go ahead
and put back in our Active Customer view. Now it we want to
| | 01:36 | delete Peppermint Patty, we can do that
QuickBooks will not allow you to delete a client,
| | 01:41 | if there are already transactions posted against that client,
| | 01:45 | regardless of whether there is a zero balance or not,
| | 01:48 | or if there is a balance associated with that client.
| | 01:51 | QuickBooks will not allow you to delete the client
you'll have to wait to either the balance is zero,
| | 01:56 | and there are no transactions posted in whatever fiscal year
you're operating in. Once you've closed your fiscal year and
| | 02:03 | started a new fiscal year, as long as there's no balance and
no transactions, QuickBooks will then let you delete your
| | 02:10 | client. To do this we select the client
to go to Edit menu - Delete Customer Job.
| | 02:16 | It's going to give you this warning: Are you sure you want
to do this, cause once you delete it's gone. We say OK.
| | 02:22 | And Peppermint Patty is gone out of our list and that's
how you delete and make clients inactive. Again remember
| | 02:28 | making them inactive saves the information and you can
reactivate it at a later date. Deleting completely wipes it out
| | 02:35 | and it's gone and there's no getting it back.
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|
|
9. Invoicing CustomersCreating an invoice| 00:01 | In this chapter we will be working with the Eat Cake QuickBooks
file from the chapter 9 folder in the Exercise Files folder.
| | 00:08 | An invoice is used when you sell a product or service to a
client and you need to create a bill for that client to be able
| | 00:14 | to track the money they owe you. A good example of this
is the Hazelnut Hotel, who buys regularly from us morning
| | 00:21 | muffins for their guests. They call us, they place an order over
the phone and we deliver this product to them at a later date.
| | 00:27 | At the time that they're placing the order we will create an
invoice to bill them, so that we can track of how much money they
| | 00:33 | owe us later. We will be covering in a later chapter
| | 00:36 | how we receive customer payments, but for now let's go ahead and
look how we create an invoice for our client. If you go to where
| | 00:42 | it says New Transactions, and we click on Invoices.
| | 00:46 | This brings us into our Create Invoice window. And notice here
at the top we have Customer:Job and it defaults to Amy Apple and
| | 00:54 | if we click the drop-down arrow it shows our list of customers
that we populated into QuickBooks. We're going to go ahead and
| | 01:00 | select Hazelnut Hotel.
| | 01:01 | This brings in the billing information for Hazelnut Hotel
which we had put in previously on the customer set up window.
| | 01:08 | If you look to the right, you can see also
that the Ship To information is added as well.
| | 01:13 | QuickBooks auto populates the Invoice date as of today's date.
You can change the date by clicking on the calendar icon
| | 01:20 | and choose an alternate date. The
date should be the date of the sale.
| | 01:24 | QuickBooks also auto populates the Invoice number. Now if you're
new to QuickBooks and just creating your company file for the
| | 01:30 | first time, the Invoice number will be the number 1.
You may or may not want to use this number.
| | 01:35 | You can type in whatever numbering convention you would like
and QuickBooks will carry that forward. So if you wanted to
| | 01:41 | use, as we have here this 1000 series, you can type that in
and the next time you open the Invoice window it will pick up
| | 01:48 | from that number. Or you can just leave
the default that QuickBooks chooses for you.
| | 01:52 | QuickBooks populates today's date for the
Invoice date and it gives us an Invoice number.
| | 01:58 | It also selects an Invoice template. If you click on the drop-
down arrow you'll see that there are several here to choose from.
| | 02:04 | You can customize these which we will talk about in a later
chapter. We're going to go ahead and leave the default template
| | 02:09 | it's selected. If we come down here into the body we can look
at the first column choice is Quantity so how much of this product
| | 02:17 | or service is our client going to buy.
We're going to go ahead and type in 20
| | 02:22 | and tab over one. We are now in the Item Code and if we left
click in the drop-down arrow would get a list of all of the
| | 02:29 | Items that we had created previously. We're going to be sellling
to this client lemon muffins. So we're going to go ahead and
| | 02:36 | select that and it auto fills in our description along with
the price that we had originally set up when we created the Item
| | 02:43 | of $2,50 and it takes that price and multiplies it by
the quantity to give us the total amount for this Invoice.
| | 02:49 | And notice that this Item is set up as taxable
and again, if you remember from our prior chapter,
| | 02:54 | when we had set up our Items, we had the choice at that time
as to whether we wanted to use tax or non-taxed for this Item.
| | 03:01 | If you click on the drop-down you can still change that for
this individual transaction. It will default to what you created
| | 03:07 | initially when you made the Item. However, for this transaction
or this Invoice you could change it to non-taxable if
| | 03:14 | you needed to. We're going to go ahead
and leave it set up for taxable.
| | 03:18 | If you look down below here you'll also see where we created our
tax for the area. For our business we had 7 and a quarter percent
| | 03:26 | tax that we have to apply when we make a sale. So
that is what is chosen as the default. Again at this
| | 03:33 | time, if you wanted to change it for this one transaction you
could. We're going go ahead and leave it set to the default
| | 03:38 | of 7 1/4 percent and you can see here that it takes the amount,
multiplies it by the 7 1/4 percent and gives us our tax
| | 03:45 | and then that goes into the total for
what we're going to charge this client.
| | 03:52 | If we go down here to the bottom, you can see that we have
two choices available to us as to how we're going to send this
| | 03:57 | Invoice to the client.
| | 03:58 | Is it either going to be printed and mailed or e-mailed?
Now by leaving the check mark in To Be Printed, it means that
| | 04:05 | it's going to batch or group this invoice with other invoices
that may have had this selected to be printed at a later
| | 04:12 | date. If you want to print the Invoice right now as we're making
it, you simply take the check mark out, go up to where it says
| | 04:19 | Print, click on the printer icon and send it to your printer.
If you're looking to print the Invoices at a later date you
| | 04:25 | simply leave the check mark selected, continue making several
other Invoices and then you can print them all at one time.
| | 04:31 | The same goes for the email.
| | 04:33 | Alright, if we look up here, we can see that we have some
other fields that we can populate with information. The first
| | 04:39 | one being PO Number or Purchase Order Number. So if the
client had provided us with a purchase order number
| | 04:45 | we could put it in this field at this time. It brings in
the terms that were originally set up for the client when we
| | 04:50 | created the customer, which is net 15. Notice the drop-down
arrow. Whenever you see this it means that you can change it
| | 04:57 | for this one transaction. So if for some reason
for this particular Invoice we wanted to give the
| | 05:03 | client different terms we could. We're
going to go ahead and leave it on the net 15.
| | 05:07 | The Sales Rep name automatically populates and again if for
some reason we needed to change that, QuickBooks is giving
| | 05:14 | us the option. We're going to go
ahead and leave it to the default
| | 05:17 | and then a Ship To date is being the same as the Invoice date.
So if you were going to have a different Ship Date for this
| | 05:24 | product you could change it here. For
our purposes we can leave them the same.
| | 05:29 | We're going to go ahead and save and close. Save and close
will actually record the Invoice and then it closes the Invoice
| | 05:36 | window and you're done. Save & New will record the Invoice, leave
the Invoice window open so you that you can continue on and make
| | 05:44 | additional Invoices. Both post the Invoice one just closes the
window and the other one keeps the window open. Clear clears all
| | 05:52 | the contents out that we've just put into this Invoice. So if
you had populated Invoice and it was wrong information and you
| | 05:58 | needed to get rid of all of it, you would simply click Clear,
and it would clear it all out and you would start from scratch.
| | 06:04 | We're done with this Invoice. It's ready to go.
So we're going to go ahead and save and close.
| | 06:09 | And congratulations you've just
created your first invoice and QuickBooks.
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| Using invoice templates| 00:01 | Depending upon your business, you may not be able to use
the default templates that QuickBooks provides for invoicing.
| | 00:07 | However, before making that determination you should look at the
options that QuickBooks provides to you. We're going to go ahead
| | 00:12 | and open the invoice we just created in
our previous movie under Hazelnut Hotel.
| | 00:17 | We're going to double click on it right here and it brings us
back into that invoice. Now if you look, when we originally made
| | 00:24 | this invoice, Intuit Product
Invoice was the selected template.
| | 00:27 | If we click on the drop-down arrow, we have other choices,
and before we try something else let's look and see what's
| | 00:33 | on here. We have a PO number we can put in. We have terms,
the Rep, Ship options, Via and Freight on board, which is what
| | 00:42 | FOB stands for. These are all having to do with product sales.
So this invoice is geared to product sales and QuickBooks has put in
| | 00:51 | fields associated most commonly with those types of sales.
| | 00:54 | If that is not something that you do on a regular basis, you are
more service based, shall we say. Let's go ahead and go in the
| | 01:01 | drop-down and look at a service invoice. Now if you see here, we
still have a PO number, but all the shipping information is gone
| | 01:11 | and that's because in a service-based industry, you're not
physically sending products to and from, so there's really no
| | 01:17 | reason you need those fields. QuickBooks know this and has
created a template that's more geared towards that business.
| | 01:24 | Let's go ahead and bring the other one back. Now besides these
fields let's look in the body of the invoice. We have Quantity to
| | 01:30 | the left, Item Code, Description, Unit Price and
Amount. If we bring back up our service template.
| | 01:38 | Look and see what we have. These really
haven't changed much. We still have Item,
| | 01:42 | Quantity and Description, Rate and Amount. So you're still
getting the same features on here. You're just losing these top
| | 01:49 | template parts for the shipping information.
| | 01:53 | And then finally a professional invoice, which is a
little different from your service and your product.
| | 01:58 | It takes out the PO and it just leaves the terms. You still
have the Item that you're going to choose, the Description, the
| | 02:07 | Quantity and the Rate. It's just
gotten rid of the Purchase Order number.
| | 02:10 | So again depending on your business needs,
will depend on what template you need.
| | 02:14 | If none of these templates fit your needs, then there is
an option for customizing and we're going to show that later
| | 02:20 | in this title.
| | 02:21 | Okay, so let's go ahead and make a new invoice with
a different template. We're going to go ahead and
| | 02:27 | close this invoice without saving it. So I'm going to go up here
to the red x and we're going to close and it's going to ask me
| | 02:32 | if I want to change the transaction and record these
new changes, and I don't, so I'm going to say No.
| | 02:37 | And that's going to leave my original invoice that I made and
we're going to make a new invoice for Hazelnut Hotel. So we're
| | 02:43 | going to go back to New Transactions - New Invoices. Notice
again it brings in my default template. Hazelnut hotel is what's
| | 02:50 | selected. If I press my Tab key it brings me down and populates
all my information. Now I'm going to go up to my template and
| | 02:57 | I'm going to select Service. Okay so now it's a
service template. I'm going to go over to my Item.
| | 03:01 | And this time I'm going to choose Catering Labor because that's
just for Service and as far as the Quantity goes we can choose
| | 03:08 | how many hours we're going to be charging them for
our catering labor, and we're going to say 8.
| | 03:13 | And now it takes our Quantity, multiplies
it by our Rate and gives our amount.
| | 03:17 | Now in the Description if we wanted to give more information that
this is for a morning breakfast and we could give the date that
| | 03:25 | the breakfast is going to be and put that in there. Again we have
all the information calculating, this is a nontaxable item so
| | 03:34 | you can see that our Anywhere Sales Tax is here, but because
the item is selected as nontaxable no taxes been applied and our
| | 03:43 | total is just 160. Now we're going to go over to the left and
we're going to deselect To be printed and we're going to batch
| | 03:50 | print this To be e-mailed. So instead of printing this invoice
we're going to e-mail it to Hazelnut Hotel. We're going to go
| | 03:59 | ahead and save and close. We get this pop-up window that's
telling us that we're missing the information for e-mailing to
| | 04:05 | Hazelnut Hotel. So QuickBooks will flag you if you have marked
someone to be e-mailed and you do not have an e-mail address
| | 04:11 | currently saved on that customer profile. So for us right now
since we know we want to e-mail it to the hotel we can go
| | 04:17 | ahead and put it in at this time.
| | 04:23 | Okay. You can enter multiple e-mail addresses by separating
with semicolons. We just have the one for our client.
| | 04:29 | We're going to go ahead and say OK.
| | 04:32 | And now it has saved it and it has updated
our customer information and we're good to go.
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| Modifying the Customer Message| 00:00 | A nice feature that QuickBooks offers is that you can modify your
customer messages on your invoices. Let's take a look at that.
| | 00:07 | New Transactions - Invoices.
| | 00:10 | And this time we're going to click on our drop-
down list and we're going to choose Laurie Lollipop.
| | 00:15 | It brings in her information and we're going to go down the
bottom here and see our customer message. Now it's blank by
| | 00:22 | default and we're going to populate this invoice, but we want to
modify our message to this client. So first thing, let's go ahead
| | 00:29 | and sell her something. And Laurie is going to buy
from us some coffee mugs and she's going to buy one
| | 00:33 | and it costs $15 and we've got our tax going and all that looks
good for our total. But our message is blank, and we want to
| | 00:41 | maybe let her know about a special that we're going to be running
later. If we look in the drop-down list here, we can see we've
| | 00:46 | got: All work is complete! It's been a pleasure! All kinds of
great things, but there's nothing here that really talks about
| | 00:51 | any kind of specials that we're running. So I want to customize
this message cause when I send the invoice to Laurie I want to
| | 00:58 | let her know that I'm running this special on cakes and hey,
maybe you might be interested cause you have some event coming
| | 01:03 | up. So to do this we're going to
go ahead and click on Add New
| | 01:06 | and brings us into our New Customer Message
window and we're going to go ahead and type in
| | 01:11 | 25% Off! All birthday, Weddings & Specialty Cakes, and again
my typing is atrocious so we're going to click on my spell
| | 01:24 | check to check me out here. Look at that it's
all good, what a miracle. We'll click on OK.
| | 01:30 | and we're going to say OK here and then voila!
| | 01:34 | It is in our customer message. So this is just a nice
feature Quickbooks offers. If you don't like any of the templates
| | 01:39 | they've provided, or you have something in particular you
need to say to your clients, this will print at the bottom of
| | 01:45 | your invoice. We also want to make sure that
To be printed is selected so that later on when we
| | 01:50 | print all of our invoices this one is included,
and we're going to click on Save & Close.
| | 01:56 | And now if we go over to Laurie Lollipop, we're going to
select that and you can see the invoices listed here and if we
| | 02:02 | double-click to open it. there's our specialty message.
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| Printing invoices| 00:00 | As discussed in a previous movie, you have the option for
printing or e-mailing client invoices and if we look at the
| | 00:07 | bottom this invoice was To be printed, which means that later on
we're going to go ahead and print this invoice and send it to the
| | 00:13 | client. However we're going to go ahead and print the invoice
right now. So the first thing we're going to do is take off the
| | 00:19 | check mark. We're going to go up to Print.
| | 00:21 | We have our drop down so we have a few different options
here. We could Preview the invoice at this point to see how it's
| | 00:25 | going to look when it prints. We can go directly to Print.
| | 00:29 | We could do a Print Batch which means looking to
do all of them that have been waiting to print.
| | 00:34 | And then we can get into Packing Slips and Shipping
Labels. We're going to go ahead and just go to Print.
| | 00:40 | It's asking us to continue on because we've made some changes to
this transaction and do we want to record those changes before
| | 00:46 | we move forward. The change we made was we took off the check
mark To be printed. We're going to say Yes to this and keep going.
| | 00:52 | And now it brings us into our Print One Invoice window.
| | 00:55 | Now if you're working on a Macintosh this may look completely
different but very similar options exist. The first thing you're
| | 01:01 | going to see is the Printer name which is going to vary depending
on your own printer. A lot of things in here will be different
| | 01:09 | depending on what operating system you're
using and what print drivers you have loaded
| | 01:11 | but the basic features are all going to be there.
| | 01:14 | What type of print type as far as your page selection.
| | 01:17 | Over here you have a Preview option that allows you to see the
document before you print it. We're going to go ahead and click
| | 01:22 | on that and it brings you into this Preview mode.
| | 01:25 | You have this nice handy dandy spyglass for zooming in, into
different areas, so you can get a little bit more information
| | 01:31 | and see it a little bit better, and then if you click again it
takes you back out. So if we want to see the price we can take a
| | 01:37 | look at that. There's our nice added message and we can zoom back
out. From this point we could print. We can also close and go
| | 01:44 | back to our Print window.
| | 01:45 | Down in here you have Number of copies. So right now it defaults
to 1. If you needed more than one copy, meaning you need
| | 01:51 | to keep yourself a copy, and hand a copy to the client or mail
a copy to a client, but keep one for your files, you could just
| | 01:56 | change that to 2 or more and then the program would print as
many is you need. At this point, you could go ahead and click
| | 02:02 | on Print and it would print the invoice. We're going to go ahead
and cancel out and I'm going to show you a different way to
| | 02:08 | print it. Now also keep in mind if you printed and invoice at the
time you're making it, you want to make sure that you take the
| | 02:14 | checkmark out of this box because if you leave the check mark
in it will then still batch the invoice and you'll be printing
| | 02:20 | it again at a later date. We're going to go ahead and Save &
Close. And now we're going to go up to File on the menu bar.
| | 02:27 | We're going to go down to Print Forms and you'll see you get
this pop-up to the right and Invoice is one of your options.
| | 02:33 | We're going to select that,
| | 02:34 | and it brings us into our Select Invoices to Print. Now here's
where if you had multiple invoices that all had that check
| | 02:41 | box selected, you would see them listed here in this window and
at this point you could still choose which ones you want to send
| | 02:48 | or not. Select All of course leaves the check mark next to it.
Select None removes it and if there were more of them it would
| | 02:54 | take the check mark out of all of them.
| | 02:56 | And then you can individually check off
or individually deselect or Select All.
| | 03:03 | So you have a lot different options in here as far as choosing
who you want to actually print and mail the invoice to or not.
| | 03:09 | Notice also the top it lets you know, the offsetting or
correlating account that QuickBooks is going be posting this
| | 03:15 | invoice to. This gets into double entry accounting and what we
talked about in previous movies, where when you make invoice,
| | 03:22 | you're affecting an income account. So that's allowing you
to track where your sale is coming from, and the offsetting
| | 03:27 | entry is to accounts receivable and it goes there because you
haven't been paid yet. So this is the account that the dollar
| | 03:34 | is going to sit in that's telling us, this
is how much they owe me and I have to wait to get
| | 03:39 | payment on this before the money comes out of that account.
| | 03:41 | Once you select what it is you want
to print, you would just click on OK.
| | 03:45 | And it takes you back to the same window that we saw
previously when we had said that we just want to print it at
| | 03:50 | the time we made it. And that's how you print an invoice.
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| Emailing invoices| 00:01 | In addition to printing an invoice
you can also e-mail an invoice to a client.
| | 00:05 | If you look on the Address Info tab you can see here that you
have the option you insert a client's e-mail address and then
| | 00:12 | on the Additional Info tab you can select the Preferred Send
Method. By doing this when you create invoice for a client
| | 00:19 | automatically the To be e-mailed as
well the To be printed is selected.
| | 00:25 | To then send an e-mail to a client, you go to File on
the menu bar, go down to where it says Send Forms
| | 00:32 | and QuickBooks brings us into this window for e-mailing to
our clients. Now similar to the Print window, anything that
| | 00:38 | you had selected To be email will appear on this list, and we
have two that are selected and waiting to go out. The first
| | 00:46 | one is highlighted gives you the default information that
QuickBooks populates for you. This is just default text that
| | 00:52 | QuickBooks has. You can edit this e-mail
text by clicking on the Edit E-mail button
| | 00:57 | and it takes you into this window and allows you to customize
the text for your needs. You simply highlight the text.
| | 01:14 | Type in what you'd like. You can check the send address, where
it's coming from, and the subject. If this looks good we can also
| | 01:24 | run a spellcheck. Everything looks good there.
| | 01:25 | And you always have the option to revert back to
the default text. We're going ahead and click on OK.
| | 01:31 | It brings it back to this window. Similar to the Print window
you have the choices of Select All or Select None. You can
| | 01:37 | also manually click in and remove the check marks or put them
in and the invoice will come in as an attachment in the client's
| | 01:45 | e-mail as a PDF. At this point, if you were ready to go you would
click on Send and QuickBooks would e-mail the selected invoices.
| | 01:52 | The attachments would come in a PDF format.
| | 01:55 | If you are using Outlook, Outlook Express or
Windows Mail as your default e-mail program
| | 02:00 | QuickBooks will link into that program and send these e-mails
through your own personal e-mail. You will have a copy of
| | 02:06 | it in your Sent box and there is no cost for
this service. We're going to go ahead and close.
| | 02:12 | So e-mailing is just an alternate method for sending an invoice
to your client and again remember if you selected that as
| | 02:18 | the preferred method, when you're in the Invoice window, To
be e-mailed will be selected along with To be printed. So the
| | 02:25 | invoice will still print, which is probably a good thing to
continue because you do want a hard copy of whatever it is
| | 02:30 | that you're sending to your client. So I recommend that you do
not deselect that. Leave that feature enabled. Go ahead and print
| | 02:36 | a copy and then you can make a note on it that
you've e-mailed that copy to the client as well.
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| Voiding invoices| 00:01 | We all make mistakes, and there will be times you need to
correct a customer invoice. I cannot stress this enough that
| | 00:07 | you do not simply open an existing invoice and just start making
changes. There are rules that you must follow in accounting and
| | 00:14 | going in and just changing history is one of the things the
IRS has a real problem with. I want to show you the right
| | 00:22 | way to correct a mistake on a customer's invoice.
| | 00:25 | The first option is to void the invoice and to do that you
have to go to the invoice and open it up. So this is the
| | 00:31 | original transaction we made and we realize we made a mistake
here. Either we charged them the wrong price, maybe there's an
| | 00:38 | error in the Ship To or Billing address, who knows what's
wrong with it but there's something not right and I
| | 00:43 | need to fix it. Now generally, if it's a Ship To, Billing address,
those things aren't as important as the Price. If you're
| | 00:50 | affecting anything to do with the amounts
that's where you'll get yourself in trouble.
| | 00:55 | So I strongly advocate voiding the invoice and re-creating it.
| | 00:59 | Not just getting rid of it. To void this
invoice we're going to go up to the Edit menu.
| | 01:05 | We're going to say Void Invoice. Now if you will
look it zeroed it out. It kept some information
| | 01:13 | cause it's going to keep this as a history for us. It's not
going to just get rid of it. It's going to hold the Invoice number,
| | 01:18 | everything is going to stay in the system so that we have a
placeholder for this information, so if someone were to come back
| | 01:24 | ask us about it, it's not just gone, like it never existed.
| | 01:27 | At this point with we're going to Save & Close. It's going to ask
us: Are sure you want to change this? We're going to say Yes.
| | 01:34 | And then you would create a new invoice for that
customer with the corrected information populated.
| | 01:41 | So that's voiding an invoice and remember, if you are
correcting a mistake that has to do with a dollar value,
| | 01:47 | voiding the invoice is the way to go, not deleting it.
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| Editing and deleting invoices| 00:01 | When is it okay to delete or edit an invoice? In our previous
movie, we discussed voiding invoices. Deleting and editing is
| | 00:08 | different than voiding. When you need delete something it's gone.
It's no longer there. There's no getting it back. There's
| | 00:14 | no history of it. Editing it is kind of the same. When you've
changed something, the original transaction is gone and now
| | 00:21 | you've replaced it with something else. There are definite rules
to follow when your deleting and editing and you have to be
| | 00:26 | careful cause it can get you in a lot of
trouble if you don't apply them correctly.
| | 00:32 | When is it okay to edit or delete. If you found the mistake
before you sent it to the client and if you found the mistake
| | 00:39 | in the same reporting period it was posted in. If both these
things hold true then it would be okay to make changes by
| | 00:46 | either deleting the invoice completely and starting over or
editing it, making some changes to it and resending it. So
| | 00:52 | you can look here at our example. We created the invoice today.
We found a mistake within a couple of days and we haven't
| | 00:59 | sent it to the client yet. If all these things hold true, then
it's a okay for me to make changes by either editing the original
| | 01:08 | invoice or deleting it and making a new one.
| | 01:10 | When is it not okay? It's not okay if I'm
affecting financial history by the changes I make.
| | 01:18 | An example of this is I made the invoice today.
| | 01:21 | I do not discover my mistake until perhaps next month and I've
already sent the invoice to the client. So now I have these
| | 01:29 |
financial statements that reflect this information. At this
point in time I should not be deleting or editing because
| | 01:36 | I'm going to change history and the IRS has a real issue with
that. So you have to be very careful when you're in here wanting
| | 01:43 | to edit or delete something. If any of this criteria holds true,
you do not want to edit or delete. So do not delete. So instead
| | 01:53 | you have to create a credit memo
in the current accounting period.
| | 01:54 | We're going to cover credit memos in the following movie but
since now that you've been warned, we're going to go back in
| | 02:00 | and we're going to take a look how
you delete and edit an invoice.
| | 02:04 | For our example, we're going to use Hazelnut Hotel and the invoice
we made on January 2, Invoice number 1012. We're looking
| | 02:11 | at it and we realize that the amount's wrong. So we're going to
go ahead and open it by double-clicking on it and we're back in
| | 02:18 | our Invoice window. Now we're going to go ahead
and click in here and the rate is incorrect.
| | 02:22 | We should have charged them $25 per hour instead
of $20 per hour so I need to make a change to that.
| | 02:28 | And again now I am changing something that I already made
but because I found my mistake within only a couple of
| | 02:34 | days and I have not sent it to the client yet, this is going
to be okay to do, but you have to really careful when you're
| | 02:41 | in here doing this. So we're going to change that. It's going to
recalculate for us and I'm going to go ahead and Save & Close.
| | 02:47 | Now it's warning me: You have changed this transaction, are you
sure you want to go forward with this? In this case I'm going to
| | 02:53 | say Yes and it saved it and it's redone.
| | 02:57 | Alright, and again be careful when you're just changing things,
as long as it holds true to the rules I gave you, that it's in
| | 03:04 | the same accounting period, you haven't sent it to the
client, it's okay to go in and just make those kind of edits.
| | 03:10 | Now if I want to delete it, I want to absolutely just get rid of
it, I don't need it in my system anymore, then we're going to go
| | 03:15 | ahead and open up. This is the one we marked void and you can see
that it's still zero and then QuickBooks gives this little Paid
| | 03:22 | across it. But I don't need this at all, I can just simply
get rid of it, there's no history that I need to keep for any
| | 03:28 | purposes. I'm going to go up to Edit on the menu bar,
| | 03:30 | I'm going to select Delete, QuickBooks is going to give me this
warning: Are you sure you want to get rid of it because once it's
| | 03:36 | gone, there's no getting it back. I'm going to say OK,
| | 03:39 | and out it goes. And what you see now is a prior invoice, it's
not the invoice we were looking at. We can just ahead and close,
| | 03:46 | and it's gone. We're down to our only invoice. And that's
deleting and editing and again I can't forewarn you enough.
| | 03:53 | You have to be really careful when you're using these, that
you understand the ideas behind when you use one over the other,
| | 04:00 | and if you're unsure you really want to check with your CPA or
accountant, and we're going to be covering credit memos next
| | 04:05 | and I strongly advise that you watch that movie as well.
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| Using Credit Memos| 00:00 | A credit memo is used when you need to reduce a customer's
balance or correct an invoice that has been recorded in a
| | 00:06 | prior period. A couple of examples of when you might need to make
a credit memo, is either you made a mistake when you originally
| | 00:13 | created the billing for the client, or perhaps the client has
decided they no longer want to purchase your goods and have
| | 00:20 | asked for you to credit out their bill. We will use Susie Sweet
as an example and open up her invoice that we created on
| | 00:26 | January 2nd. You can see that Susie bought 10 muffins and she
paid $2.50 each for a total of $26.81. Susie did not receive her
| | 00:34 | muffins and has asked us to credit this off her account.
| | 00:38 | To do so, we're going to go to New
Transactions - Credit Memos/Refunds,
| | 00:44 | and this brings us into our Credit Memo window. Notice it looks
very similar to the Invoice window but at the top here it says
| | 00:51 | Credit Memos/Refunds. We're going
to go ahead and select Susie and
| | 00:55 | in the body it gives you the option to put
back in the item that was originally sold.
| | 00:59 | What this allows you to do is, you recorded revenue with
the original sale of the 10 muffins and that posted that revenue
| | 01:06 | particular income account. What you now want to do by
creating this credit memo is you're going to reverse out that
| | 01:12 | transaction and take that revenue back out of that account.
| | 01:16 | We're going to go ahead and select our muffins
and it brings in the auto default description.
| | 01:21 | It's still going to remain taxable cause we have to give her
a total credit for the total that she paid. The Quantity is 10 and
| | 01:27 | if we look at the bottom. it's $26.81. You do not need to put
a negative in front of this amount. QuickBooks already knows this
| | 01:34 | is a credit and it will take care of reversing out
the transaction without you putting a negative in front of the
| | 01:39 | number. We're going to go ahead and click
on Save & Close. We get this window that comes up.
| | 01:45 | And this window is asking us if we want to
Retain as an available credit, Give a refund,
| | 01:51 | or Apply this to an invoice. And QuickBooks knows there's already
an existing invoice in place so we're going to accept Apply to an
| | 01:58 | invoice, and it's going to bring us into this window.
| | 02:01 | We see here the original invoice we
used to bill Susie for the muffins.
| | 02:05 | This invoice is selected by default and again you could take
the check mark off and if there were additional invoices in here,
| | 02:10 | select the one that you're looking for. We're going to go
ahead and leave that selected and we're going to click on Done.
| | 02:16 | Okay, now we come out back into our main view and you can see
the invoice is still listed. If we double-clicke to reopen it, it
| | 02:22 | now says paid and it has been zeroed down below.
| | 02:28 | If we go to our Transactions tab and we look
up Credit Memos, there's Susie Sweet's credit.
| | 02:34 | And this is the Credit Memo that we just created
to void out or credit out her original invoice.
| | 02:41 | Now let's take a look at another example of a credit memo.
This time were going to go to Hazelnut Hotel and we don't need to
| | 02:48 | credit out the whole invoice. We only need to credit out a
certain amount of it. So again we're going to open the original
| | 02:54 | invoice and take a look at it. We had billed Hazelnut Hotel for
8 hours of catering labor. The reality is we only spent 6 hours
| | 03:02 | there at the client's. We need to credit them 2 hours
of labor that we had originally charged them on this bill.
| | 03:07 | So to do that we're going to still create a credit memo
but we're only going to create it for part of this cost.
| | 03:14 | We're going to go back to our New Transactions and to Credit
Memos. Hazelnut Hotel is selected here. We're going to tab down
| | 03:21 | to bring that information in. Remember again if this was not
in view, we could select it from the list. Again we're in the Credit
| | 03:27 | Memos window. We're going to come down to Item. We're going to
choose Catering Labor because again that was what we originally
| | 03:34 | sold under and you want to put that the same
income account that the original sale went against.
| | 03:39 | We have Catering Labor in our Description. It's a nontaxable
item. And this time instead of the full 8 hours and crediting
| | 03:47 | the whole amount, we're just going to credit 2 hours or $40.
So we're reducing the balance owed from $200 to $160. We have our
| | 03:58 | $40 here. We're going to go ahead and Save & Close.
| | 04:01 | And again we get our window that comes up because it knows
there's an open invoice associated with this client. So it's
| | 04:08 | asking us at this time, what we'd like to do, and
for us we're going to go ahead and again apply.
| | 04:12 | And here it brings it into our Apply Credit Invoice window
once again and this time, if you look over, you can see amount
| | 04:18 | applied is $40, not the full $200. We're going to click on
Done, Okay now let's open up the invoice and take a look at it.
| | 04:26 | And if you see here all this information remains the same,
however Balance Due is now $160 because Payments Applied
| | 04:34 | are $40, which is our credit. So at this point, you can
reprint this invoice and send it back out to the client along
| | 04:40 | with a copy of their Credit Memo and they
would have a new adjusted balance to pay.
| | 04:45 | This is probably one of the best ways to go about
correcting mistakes that you make in your billing.
| | 04:50 | So remember credit memos are a very good way to either completely
void out or credit off an existing client balance that was either
| | 05:00 | made in error by yourself or because the client never received
their product. It can also be used for things such as refunding
| | 05:06 | a payment, bounced checks. All these types of things you can
use a credit memo to process the transaction within QuickBooks and
| | 05:12 | have good record keeping for your clients.
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| Creating client statements| 00:00 | A customer statement will show your clients any outstanding
or past due balances them may have. I think any business
| | 00:07 | regardless of their size should send monthly statements to
their clients. By sending a statement you will help minimize human
| | 00:14 | error. Oh, I never got that, or the Oh, I'm so sorry I forgot
to pay it. The frequency you choose to send your statements at is
| | 00:22 | based on your company's needs. However, I would strongly
recommend that you send at minimum monthly or quarterly
| | 00:28 | statements. Now let's go ahead
and take a look how you create one.
| | 00:31 | To create a customer statement we're
going to go up to the menu bar
| | 00:35 | and we're going to click on Customers and Create Statements.
Before we go there I just want to show you if you were to go to
| | 00:40 | New Transactions notice it doesn't say anything in here to create
a statement. To find it you're going to have to go to the menu
| | 00:48 | bar and go to create statements that way.
Alright we're in our Create Statements window
| | 00:53 | and the first options you have to use is your Statement Date.
| | 00:57 | Okay, so it's brought in today's date and we're going
to move that and make it for the first of next month.
| | 01:04 | And then our statement period is going to be for
the month at we're in. So we're going to change that.
| | 01:12 | In general you're going to run a period for the month. There may
be exceptions to that depending on your own needs, but generally
| | 01:17 | you're going to make it for a 30-day period and the statement
date should be sometime in the month after that period.
| | 01:23 | In Select Customers you have different choices here, and again
this is all going to be on whatever your needs are. If you're
| | 01:29 | just needing to run a statement for one customer, you can just
do that right here and then the drop-down gives you your list.
| | 01:35 | If you had multiple customers you needed to choose from, you
could select that. Click on choose and then QuickBooks would take
| | 01:40 | you into this window where you can just pick and choose by
putting checkmarks next the people you want to send statements
| | 01:47 | to. You can also choose by Type and if you remember in our
previous movie we had associated some types with customers, and
| | 01:54 | so again it's another way of filtering the information and
sending statements to a select few folks. For us we're just
| | 02:00 | going to go ahead to All Customers so you can
get an idea of what this is going to look like.
| | 02:05 | Now at this point we can view the selected customers.
| | 02:08 | This gives you a list of everyone that we're choosing
and we've selected everyone by the All Customers.
| | 02:14 | Now we're going to preview our statements.
So we're going to click on the Preview button
| | 02:19 | and it brings us into this window, which just give you
a quick view of what it's going to look like before prints.
| | 02:25 | You have your spyglass so you can zoom in into particular
areas or zoom out if you're wanting to check certain amounts.
| | 02:32 | And if you'll notice at the bottom this is were you have your
aging bar or in other words telling the client how past due they
| | 02:39 | may be in money that is owed to you. If we click in here we can
see that this client has a zero balance. They don't owe you any
| | 02:45 | money. And if we click on our next page it'll cycle us
through all of our customers cause that's what we've selected.
| | 02:51 | Now there's several with no balances. If we look here,
this one does have an invoice associated with it and it has the
| | 02:57 | credit memo we had applied in a previous movie, and if we
go down we can see are total down here and this is listed in the
| | 03:04 | 1 to 30 days, so they're current. I'm
going to go ahead and close out of here.
| | 03:09 | Now if we look to the right, this gives us some
more options. The first of all is the template.
| | 03:15 | There is only one standard template that QuickBooks provides.
We do have a customize field here and we're going to learn more
| | 03:21 | about that later when we get into customizing invoices.
Here you can create one statement per customer
| | 03:27 | or you have the option for per job. So you can kind of drill down
to make this as detailed as you want, which is a nice feature to
| | 03:35 | have. We're going to leave it as per customer.
| | 03:37 | Show invoice item details on statements. Let's
choose that and then let's take a look back here.
| | 03:44 | And we're going to cycle through a couple and now look at
what this looks like. Before it just gave the invoice number,
| | 03:50 | now it's actually giving the line items on the invoice. So this
is a choice how much information you want to give to your client
| | 03:57 | on their statement. It's certainly something that could come
in handy if they'd never had an original copy or they lost their
| | 04:02 | copy and maybe they want some more information.
You can choose to print these details on your statement.
| | 04:09 | We're going to go ahead and leave that off for the moment. Print
statements by billing address zip code. This is the order they
| | 04:15 | will print in and so if you have a very large run of statements
and the post office requires you to have them already sorted by
| | 04:23 | zip code this would be a good feature for you to use. Print due date on transactions. So when is it due? This is automatically
| | 04:29 | flagged by default. I strongly recommend that you leave
that on because you want the client to see when it's due.
| | 04:35 | And these are the Do nots. This helps you filter out what
you don't want to send. So again, if we look at our preview here,
| | 04:44 | we have several clients that have these zero balances. Now really
you don't need to send a statement to a client that's a zero.
| | 04:50 | It's kind of a waste of paper and it's something that we
probably, none of us need to be doing. So we can filter them
| | 04:57 | out right here by saying Do not create statements with a zero
balance. Let's go ahead and look at our preview now and notice we
| | 05:05 | don't start with a zero anymore. Now we're right on to someone
that owes us money. And if I cycle through here there's only the
| | 05:14 | two. So it's taken those out for us and it won't print those.
We can also say don't send them with a balance of less than x.
| | 05:20 | If you don't feel it's worth sending someone a statement who has
$10 or less that they owe you, $50 or less, you pick the number.
| | 05:29 | You can put that in here and again QuickBooks will filter
them out and not print a statement for that client.
| | 05:34 | With no account activity and for inactive clients already is
a default and again I strongly recommend you leave that as the
| | 05:41 | default. So in this window is where you choose how and who
you want to send statements to, and each time you go to send out
| | 05:49 | statements, every month you can come in this window and make
changes as you need to. If you need to send a single statement
| | 05:56 | to a client at any given time you would come back to this window
and you can also do that by selecting the one or multiple
| | 06:02 | rather than all. So again, I highly recommend no matter what size
your business is that you use statements to send to your client
| | 06:11 | on some type of a frequency that you establish, whether that be
monthly or quarterly, cause it will certainly help prevent those
| | 06:17 | cases of balances going out too long
and you not being paid on your sales.
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| Assessing finance charge| 00:00 | A finance charge is a fee you assess to those
clients who our past due on their payment to you.
| | 00:06 | There's a high probability that at some point a client will be
late in paying you. You need to decide if it is right for your
| | 00:12 | business to assess a finance charge to your clients.
| | 00:15 | Having said that, let's take a look at where
you find how to assess client's finance charges.
| | 00:21 | We're going to go to the menu bar.
We're going to where it says Customers.
| | 00:25 | Go back to Create Statements. If you remember from our
previous movie, this is where we created monthly or quarterly
| | 00:31 | statements for our clients. In the screen, there's a
button here to the right that says Assess Finance Charges.
| | 00:37 | We're going to go ahead and click on this and it's going to
take us into this main window for assessing finance charges to our
| | 00:44 | clients. Now for the purpose of this exercise, we have changed
our date and we're now showing March of 2008 so that we can get
| | 00:51 | a few invoices that are late. These invoices were created in
January of 08 and it's now March and we still have not received
| | 00:57 | payment from our clients. They are past due or late in
paying us based on the terms we originally had given them.
| | 01:05 | You can see here towards the bottom and we have selections of
Mark All, Unmark All. If we choose Unmark All, it takes away the
| | 01:13 | check marks and nothing is selected at this point to assess.
| | 01:15 | If we reselect by Mark All the checkmarks come back in play
and if you look up here to the right it shows you the overdue
| | 01:21 | balance and the finance charge it will be assessing.
| | 01:26 | Now where did QuickBooks calculate these amounts from? How did
it know how much to charge them for? If we go down here to the
| | 01:32 | bottom we're going to click on Settings and it's going to take us
to our Preference window. And if you remember from prior movies
| | 01:39 | we had talked about the Preference settings and that at some
point in time you're going to want to come in here and check
| | 01:43 | these for your company. This is what you'll find for Finance
Charge, your company preferences and how it's set up for
| | 01:50 | calculating to your customers. First it starts with Annual
Interest Rate and QuickBooks defaults to 12.5%. You're going to
| | 01:58 | need to check with your own state and find out much you can
charge on this interest rate. The Minimum Finance Charge would be
| | 02:06 | the minimum amount. So if what's the due on the invoice, once
it's multiplied by the Annual Interest Rate, if it goes below
| | 02:14 | this threshold that you sent, at a minimum you're going to
charge them this amount and QuickBooks has defaulted to $2.
| | 02:22 | The grace period of 10 days means whatever the due date is that
they owe you, they'll get another 10 days before the system
| | 02:29 | wants to assess them this charge. And again you can set these
to whatever you need. You'll want to check with your state to
| | 02:36 | make sure you're in legal compliance of their laws. Finance
charges and the collection of them come in as income on your
| | 02:43 | accounts and you can see right here that QuickBooks has already
setup under income in your chart of accounts, a finance charge
| | 02:49 | line. So by default, if you collect any money from finance
charges QuickBooks will post that to this income line.
| | 02:57 | Assess finance charges on overdue finance charges. You have to
be really careful of this. I'm going to click on this box just
| | 03:03 | so you can see the warning that QuickBooks brings up. It
tells you right here that laws vary on this, whether you can
| | 03:10 | actually access a charge on top of a charge you really have
to be careful and check to make sure that you're in compliance.
| | 03:17 | We're going to deselect that and take the check mark out.
| | 03:20 | Down here Calculate charges from. It defaults to due date and
I would recommend that's where you leave it. What this means is
| | 03:27 | again, whatever terms I gave the client of when the payment
was due, that is at the point that this is going to calculate
| | 03:34 | the grace period from. So for example I billed a client
today, they have net 30 terms or the payment is due in 30 days.
| | 03:41 | On day 31, which is from the due date, this grace period starts.
They have another 10 days to pay me or to the 41st day. After
| | 03:53 | that QuickBooks will assess the finance charges to that client 's
past due balance. You can choose invoice and billed date, but
| | 03:59 | I do not recommend it. Give your client plenty of time to pay
their bill. You do not want to penalize them and unless you
| | 04:05 | really have to because now they've go
well beyond the terms you both agreed to.
| | 04:09 | Lastly mark finance charges To be printed. You would select
this if you don't print statements. If you're going to
| | 04:17 | print monthly and quarterly statements, which again I do
recommend that you do, finance charges will be assessed at that
| | 04:23 | time and you can go ahead and just print them on your statements.
If you do not print statements, but want to assess finance
| | 04:31 | charges, you should put a check mark in this box and then
when you assess the finance charge, QuickBooks will print an
| | 04:37 | individual invoice just for that charge. We print
statements so we're not going to select that option.
| | 04:43 | We're going to go ahead and leave the
default setup by QuickBooks and say OK.
| | 04:47 | And so that is how QuickBooks went ahead
and calculated this finance charge for us.
| | 04:53 | At this point we can assess the charges to our clients by
clicking on the Assess Charges button. The last thing I want you
| | 05:01 | to note is down here at the bottom where it says Customers with
*s have payments or credit memos which have not been applied to
| | 05:10 | any invoice. Now in this field we do not have a client that this
applies to. But what QuickBooks is telling you is if you see an
| | 05:20 | * next to one of their names, it means the client has a payment
or a credit memo that has not been applied to anything and the
| | 05:27 | reality is this overdue balance may not be correct then. So
if you see an asterix next to one of these names you're going to
| | 05:35 | check first before assessing the finance charge.
We're going to go ahead and click on Assess Charges.
| | 05:41 | And now we can go ahead and preview our statements,
| | 05:46 | and if we look here on our line you can see the finance charge
is being assessed to this customer because they are late in
| | 05:52 | their payment to us.
| | 05:55 | So again you have to make a business decision if you're going
to be assessing finance charges to your clients. If so you
| | 06:02 | also want to make sure that you set up correctly before you start
charging those. That you are in compliance with your state laws.
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|
|
10. Customer PaymentsMaking client sales receipts| 00:01 | In this chapter we will be working with the Eat Cake QuickBooks
file from the Chapter 10 folder in the Exercise Files folder.
| | 00:08 | Previously, we talked about invoicing clients. But
what if your business is a point-of-sale business?
| | 00:14 | Meaning a client comes in, picks up the product, and pays you
at that time. For those types of transactions, you would use a
| | 00:20 | sales receipt. You find them under New Transactions, Sales
Receipts. And in this window it looks very, very similar to our
| | 00:28 | invoicing window. And it is, except for the fact that in here you're
going to be recording income in cash rather than income in Accounts
| | 00:36 | Receivable. Remember, when you use an Invoice, it's because
the client is going to pay you at a later date. We use a Sales
| | 00:43 | Receipt because the
| | 00:44 | client's paying us today.
| | 00:45 | Up here at the top we can pick what customer we're selling to.
| | 00:49 | In here we're going to pick Laurie Lollipop.
| | 00:52 | And you can see in the Sold To window,
it populates her information.
| | 00:55 | We're going to come down to Item and
| | 00:57 | we're going to select the item that Laurie is buying today. And
it's going to be some more coffee cups. We're going to go over into
| | 01:03 | quantity and enter two.
| | 01:05 | Now notice again, this window is very similar to the Invoice window.
So you have your Item column where you select what it is the client
| | 01:11 | is buying. It fills in the description. It gives you whether
it's a taxable item or not. You fill in the quantity. It brings
| | 01:18 | in the rate and then calculates the amount. The main difference in
this screen is you have a place for Check Number if they're paying
| | 01:24 | by check and Payment Method. Which, of course, we see
the dropdown arrow and that always tells us there's more
| | 01:29 | choices available. This list is provided by QuickBooks
for default types of payment. If you don't see the type of
| | 01:35 | payment you need in the list, you can always click
on Add New and add an additional payment type.
| | 01:40 | We're going to go ahead and use Check,
| | 01:42 | and then in the Check Number field
we will type in the check number.
| | 01:46 | And then if we look at the top,
we have our Sales Receipt Date
| | 01:49 | and our Sales Number, which just like on the
invoicing will just run concurrently from this number.
| | 01:54 | We also have our template options. So right now we only have
one as far as a standard template in QuickBooks and we can always
| | 02:00 | customize additional templates later.
| | 02:03 | If we look down here at the bottom we can see our total of $32.18. Because
this is a taxable item, it's applying sales tax and has been flagged to
| | 02:11 | be printed later. So just like in our Invoices, at this point
we can Save & Close and be done with the Sales Receipt. We can
| | 02:17 | click on Save & New which would post this one receipt but
keep the window open for additional Sales Receipts, or we
| | 02:23 | can Clear which would clear everything off the Sales Receipt
and start fresh. We're going to go ahead and Save & Close.
| | 02:31 | Alright now let's go take a look at Laurie Lollipop. And if
we look in All Transactions view we see Sales Receipt listed
| | 02:39 | here. And I wanted to point out this right here to you. The prior
two were Invoices and the account they were going to is called
| | 02:45 | Accounts Receivable. If you look here it tells you the
Sales Receipt and it says Undeposited Funds. This is the
| | 02:51 | difference I had mentioned earlier. In a
Sales Receipt your income is increased
| | 02:56 | but the money does not go to Accounts Receivable. Meaning they've
already paid me and QuickBooks says, "OK. It's cash. I'm going to
| | 03:05 | hold it in this Undeposited Funds Account, and then when you tell
me I'll go ahead and and turn that into a deposit and actually
| | 03:12 | record it in the bank." This is a default set up by QuickBooks.
We're going to cover Undeposited Funds in the next movie
| | 03:18 | for Receive Payments but I wanted to point
this out to you so you could see it here.
| | 03:22 | So remember, you use a Sales Receipt when you have the situation
of someone coming in, buying the products and services
| | 03:29 | from you, and paying you at the same time, versus an Invoice which is a
they've bought the products and services but they're not going to pay
| | 03:35 | you until later.
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| Receiving payments| 00:00 | Previously in this title, we've looked at how to
| | 00:04 | bill a client on an Invoice, we've looked at how to create
the line items that appear on the Invoice or through the Item
| | 00:10 | List. We've looked at the Chart of Accounts and how to create
Income and Expense accounts so we know where we're spending
| | 00:16 | our money and where we're making it from.
| | 00:18 | But now it's time to learn how to receive the money,
how to post your clients' payments into QuickBooks.
| | 00:24 | We're going to go to New Transactions
and we're going to go Receive Payments.
| | 00:28 | Alright. We're in our Receive Payments window.
| | 00:30 | And again, we have our choices at the top to receive from
| | 00:34 | and our dropdown list. We're going to
go ahead and leave them on Hazelnut Hotel.
| | 00:38 | Now notice, down here below in the body all of these invoices have come
in. And these are all open and outstanding invoices that the client
| | 00:46 | owes us payment on.
| | 00:48 | In the Amount field, QuickBooks is asking us to enter how much
money or how much they've paid us and then we're going to
| | 00:55 | apply that amount to these invoices.
| | 00:58 | I want to draw your attention to the very first line here. The original
amount of the Invoice was $200 but the current amount due is
| | 01:05 | only $160. And that is because in a prior lesson, we learned
how to make Credit Memos and we had applied a Credit Memo
| | 01:11 | as a partial payment to this Invoice. Now the client has
paid us the remaining balance owed of $160 and that is
| | 01:19 | what we are going to record here today.
| | 01:21 | So in the Amount field
| | 01:23 | I'm going to type in $160.
| | 01:26 | OK, we're going to select our Payment
Method which is going to be Check.
| | 01:29 | You have a Memo field available to you here if you needed to
give a little more information about this customer payment.
| | 01:34 | Over here you have Check Number which
we're going to go ahead and insert.
| | 01:40 | And the Date you're receiving payment on which
we're going to leave to the default of 1, 1, 2008.
| | 01:45 | Notice it also gives you a nice little reminder
here of what the customer's Current Balance is.
| | 01:50 | Once I put in the amount, if you look down here QuickBooks
automatically selected the first invoice for payment.
| | 01:57 | Now this is a preference you can turn on and off in
QuickBooks, and again, we find those under the Edit menu.
| | 02:02 | QuickBooks selected this Invoice for
us because it was the first one due.
| | 02:06 | You could deselect it by clicking once and taking the
checkmark out, and choosing to put this payment towards
| | 02:11 | another Invoice. You may see these pop-ups that from QuickBooks
from time to time depending on what you're doing here in
| | 02:16 | this window. This one is just explaining that by selecting
this Invoice that has $536 due and 25 cents, the payment
| | 02:25 | does not pay this balance in full. So QuickBooks is
asking you, do you want to Leave it as an Underpayment
| | 02:31 | or is this all you're going to get from the customer, and
you want to Write Off the Remaining Balance owed of the $376.25.
| | 02:38 | We're just going to Leave it as an Underpayment because we're not
even going to leave this selected. So we're going to deselect that
| | 02:43 | and put it back to the correct amount that we do want to pay,
which is the very first Invoice. Now if you notice down here, we have
| | 02:50 | the Amount Due,
| | 02:51 | the Amount Applied.
| | 02:52 | Currently there are no Discounts and Credits
we're applying to this customer.
| | 02:56 | And so we can go ahead and Save & Close.
| | 02:59 | And if you look now here in your window, you'll see the
transaction listed of payment. This is going to be the Check
| | 03:04 | Number. And again, Undeposited Funds is the account it
went to for $160. Just like in the Sales Receipt which we
| | 03:11 | talked about in the prior movie, QuickBooks will take the money
that you receive in, it will hold it in this account until you're
| | 03:18 | ready to actually make a deposit into the bank. At that time
the money will come out of Undeposited Funds and get posted to
| | 03:24 | whatever Bank account you choose.
| | 03:26 | So remember, when you receive payments from your clients,
you're going to go to New Transactions, Receive Payment window.
| | 03:32 | You're going to Post the Payment. It's going to then come in view here
as Undeposited Funds, and then afterwards when you're ready to take
| | 03:38 | it to the bank, you're going to go ahead and make that deposit in the bank.
And we'll cover in the next movie how you Make a Deposit in QuickBooks.
| | Collapse this transcript |
| Making a deposit| 00:01 | Now that you've collected a lot of money from your clients,
you need to be able to take that money to the bank
| | 00:06 | and post it as a Deposit into QuickBooks. To do this, you're
going to go up to the Menu bar to where it says Banking.
| | 00:12 | You're going to left-click and go to where it says Make Deposits.
| | 00:16 | This is going to bring you into your Payments Deposit window.
First of all, you can select your view for type of payments
| | 00:22 | you're going to deposit.
| | 00:25 | If you click on the dropdown arrow, you can
see all the choices you have available to you.
| | 00:29 | You can also do Selecte a Type meaning
I can pick and choose which ones I want.
| | 00:34 | For our purposes today, we're just going to leave it on Check because
that's the only type of deposits we have available to put into the
| | 00:40 | bank. But if you are taking credit card payments and such,
you can come in here and select those individually or group
| | 00:46 | them, and then make a deposit based on that type.
| | 00:49 | Now, let me just advise you of something here. If you do
take credit card payments, you will want to Batch or Group
| | 00:56 | them by Type when you make your deposit. And the reason for
that is the next month, you're going get in what's called the
| | 01:02 | merchant card statement
| | 01:04 | that you're going to want to reconcile. It's similar to a bank
statement. It's just for your credit card transactions and these
| | 01:10 | statements come from your merchant carrier being American
Express, MasterCard, and Visa to Discover, whoever it is that
| | 01:16 | you're using. You're going to want to break it out
based on the type of credit card that you're accepting.
| | 01:21 | This will make it much easier down the road when you go to
Reconcile the Statement because the information will already
| | 01:27 | be categorized our grouped for you.
| | 01:30 | In here
| | 01:33 | we have two deposits that we need to make.
| | 01:35 | And if you notice at the bottom, there's a Select All button
and then there's a column here with the checkmark. And similar
| | 01:40 | to the other windows we've been in, in prior movies, if you
Select All it automatically populates the checkmarks for you and
| | 01:46 | selects these two checks for deposit. You can also select None
and then go in and individually and select the ones that you want.
| | 01:53 | Down here it gives us our Payment Total
| | 01:56 | and we're going to click on OK.
| | 02:00 | Now it takes us back to our Make Deposit window.
| | 02:02 | In here we first have the option of Deposit to. Which Bank account
are we going to be depositing our funds to? And there's the dropdown
| | 02:10 | and Tutti Frutti Bank is listed by default.
Now if we had more than one bank
| | 02:15 | we could choose between them. We're just
going to go ahead and use Tutti Frutti Bank.
| | 02:18 | We're going to include the Date of our deposit and
so we're going to leave the default date of today.
| | 02:23 | If you're making the deposit today but physically taking it to
the bank tomorrow, you could change this date to tomorrow's date.
| | 02:30 | However, we're going to leave it for today's
date and Memo is just going to say deposit.
| | 02:37 | In here
| | 02:38 | we have the Received From, so the clients that have paid us. From
Account which as we talked about before, the money's being held in
| | 02:45 | this Undeposited Funds Account. It gives us the Check Number.
We have another Memo field as well that we could put additional
| | 02:52 | information into if we needed in regards to this client's
payment. Payment Method which, of course, is defaulted to
| | 02:58 | Check because that's what we selected at the time the payments were received and then the amounts. Notice you can click in these
| | 03:04 | fields and you can make changes at this time,
but I don't recommend making changes here.
| | 03:08 | If you had a change that you needed to make we would do that
outside back in the original transaction as long as it's
| | 03:14 | within the same posting period.
| | 03:18 | This gives us our Deposit Subtotal down
here and our Deposit Total right here.
| | 03:23 | And if we look to the right we have this little bit of information
that QuickBooks has provided to us in the area of Petty Cash.
| | 03:30 | If you are looking to take money out of a deposit--in this case,
we only have checks that we're depositing--but if there
| | 03:36 | was cash listed up here and you wanted to pull that cash out
to use for operating expenses and your business, you could
| | 03:43 | at that time create a Petty Cash Account within your Chart
of Accounts, list the reason why you're taking the money out,
| | 03:49 | put the amount in, and QuickBooks would deduct that amount
from your Deposit Total. If you have questions on how
| | 03:55 | to use Petty Cash or set it up, I would check with
your CPA or accountant first before going through this.
| | 04:00 | Otherwise, looks like we're all good to go. We have our deposits
listed. We have our Deposit Total. At this point we click on Save
| | 04:07 | & Close, it would post the deposit and put the money in our
bank, and we're good to go. If we had other deposits we wanted
| | 04:13 | to make we could say Save & New, it would keep the Deposit window
open, but post this transaction. And again, we also have the
| | 04:20 | Clear option which as we know from prior movies, would clear
everything out and start us from scratch. We're done with this
| | 04:25 | deposit so we're going to go ahead
and click on Save & Close.
| | 04:29 | And now to check to see where the money
went. We're going to go up to Lists,
| | 04:33 | Chart of Accounts,
| | 04:34 | Tutti Fruitti Bank. We're going to double-click to open it,
| | 04:37 | and if we look on 1, 1, 2008, that's the Type of deposit,
there's the name Deposit, and there is our deposit Amount.
| | 04:44 | We're going to go ahead and Close.
| | 04:50 | Now that we've made our deposit, let's take
a look at a report that shows us what we did.
| | 04:55 | If we go to Reports on the Menu bar, and we go to where
is says Banking, we're going to choose Deposit Detail.
| | 05:01 | And there you have it. It shows you Deposit, the date, the
name of the bank, and the amount, and then the individualized
| | 05:09 | transactions. And notice this little spyglass that
you get, this is a zoom. If you double-click,
| | 05:14 | it'll take you right to the transaction.
| | 05:16 | So just remember, if you're making deposits from your Customer
Payments, you're going to want to go to Banking on the Menu bar,
| | 05:23 | Make Deposits,
| | 05:25 | and select and come into your window and post your deposits
by type. That's very important. That will save you later
| | 05:30 | down the road when you're trying to reconcile your statements.
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| Applying discounts and credits| 00:00 | For your business you may have clients that you set up with an
early payment discount. Or perhaps you had a client who paid for
| | 00:07 | an item and then returned it so they
now have a credit on their account.
| | 00:11 | These discounts and credits can be applied to clients' open
balances through the same process you receive a client's payment.
| | 00:19 | If you go back to Customers on the Menu bar and choose
Receive Payments, it takes you back into the Customer Payment
| | 00:25 | window. And in here we're going to receive from Sally Sugar.
Now, notice she has several invoices listed here as owed and
| | 00:33 | down at the bottom we have discounts and credits. We click on
this button, it takes us into our Discounts and Credits window.
| | 00:40 | And if we look here it's giving us
information on what discounts and credits
| | 00:44 | are available for this client.
| | 00:46 | First of all it tells us that the top the
original amount of the sale was $17.11.
| | 00:51 | If we move this window out of the way, what they're referencing seen
as Invoice number 1020 for $17.11. So that is the invoice they're
| | 00:59 | bringing in here.
| | 01:00 | Again, QuickBooks generally defaults to the very first line
item in the Received window. You could choose other invoices
| | 01:06 | you would want to apply this to, and select manually. But we're
going to go for right now with what QuickBooks has defaulted to. So
| | 01:12 | they're telling us the amount due is $17.11.
Discount used is 17 cents. If we go to the Discount tab
| | 01:21 | it's going to show us that the suggested discount is 17 cents, and
that's because when we set up this client we gave them an early
| | 01:29 | payment terms of 1% if they paid within 10 days of the net-30
terms. So they're paying us within that timeframe so QuickBooks is
| | 01:37 | suggesting we give them their discount we promised. Now if
you wanted to change that amount at this time, you could.
| | 01:43 | You need to choose a Discount account and you would need to
check with your CPA or tax accountant if you're not sure what
| | 01:49 | type of account you should be selecting in here. QuickBooks
does not offer a default. It just gets you into the Chart of
| | 01:55 | Accounts. So you want to check with your tax accountant
or CPA before you fill in this information.
| | 02:02 | On the Credit tab, it's showing us that they also have some
credits available to us. Credits being in the form of we
| | 02:09 | processed a Credit Memo for this client and we didn't apply it
to anything at the time we made the Credit Memo. So now they
| | 02:15 | have that credit available on their account and QuickBooks
is trying to apply it to this Invoice. If you look up here
| | 02:22 | it's telling you out of the credit amount of $32.18, QuickBooks
is going to apply $16.94. That's because they're using the
| | 02:30 | discount of the 17 cents,
| | 02:32 | and then applying the remaining credit to zero out the balance
owed on this Invoice. It's going to leave the remaining credit of
| | 02:39 | $15.24. If we want QuickBooks to do this we go ahead and click
on Done. If we didn't want to apply, we could take the check-
| | 02:48 | mark away and then notice all it's applying is the Discount Used
and leaving a Balance Due. Since we're not going to label a
| | 02:56 | Discount account at this point, we're also
going to zero out the amount of discount.
| | 03:00 | We're going to go back to our Credits and just apply the credit.
And again, now if you look Discount used is zero, Credit
| | 03:07 | used is $17.11. It's still paid in full, we're just paying it
all with the credit. We're going to go ahead and click on Done.
| | 03:16 | And now if you look here in your Receive Payment window, for
this Invoice they have received a credit of $17.11 and zeroed
| | 03:23 | out that Invoice.
| | 03:25 | We're not going to be paying anything further at this point, however,
we do have additional credits available to us. So if we went
| | 03:31 | back in here, you will notice that
there is still money left over,
| | 03:35 | about $17.11 and they could again
post this to the next invoice due.
| | 03:41 | We're going to go ahead and Cancel that. We're just going to
do the one credit at this time and we're going to Save & Close.
| | 03:48 | So if you have credits available for your clients or you're
applying some type of an early payment discount, just
| | 03:54 | remember when you're in the Receive Payment window you want
to check the Discounts and Credits that may be available to
| | 04:01 | you for your client to use at the time of payment.
| | Collapse this transcript |
| Refunding clients| 00:00 | As we discussed in our prior movie you're going to have clients
who have bought and paid for product, and then decide that they
| | 00:07 | don't want it and return it. And they're either going to want
a credit on their account or they're going to want a refund.
| | 00:12 | For the clients who want a refund, it's going to be a couple-step
process. But first let's go ahead and Create an Invoice and show a
| | 00:19 | payment against it, and then I'll
show you how to Refund that Payment.
| | 00:22 | We're going to go to New Transactions. We're going to go to
Invoices. Susie Sweet is who we're going to use for our example.
| | 00:29 | We're going to go down to Items and select
coffee cups. She's going to buy one of those.
| | 00:34 | We're going to go ahead and Save & Close.
| | 00:37 | Now this is a message that comes up if you have credits on
your account. This is letting us know they have credits and do
| | 00:42 | we want to apply it this time. For the purpose of this exercise,
we're not going to apply any credits so we're going to say No.
| | 00:48 | And we're going to leave the Invoice stand.
| | 00:50 | Now, we're going to go ahead and we're going to pay that Invoice.
So we're going to go back to New Transactions, Receive Payments.
| | 00:56 | And again it's for Susie Sweet.
| | 00:59 | And here's her Invoice coming in.
| | 01:02 | And we're going to go ahead and click on it. QuickBooks will give you this
pop up when you do not fill in the amount prior to selecting what Invoice
| | 01:08 | you want to pay. It's trying to tell that it's going to assume
then that the amount matches the Invoice you're selecting.
| | 01:15 | We're going to go ahead and say Yes to that because that is
true in our case. It may not always hold true and so you may
| | 01:20 | not want to say Yes, but for this case we are paying $16.09.
That is the amount we want populated here. The Payment Method
| | 01:27 | is defaulting to Check and we'll go ahead and leave that.
| | 01:30 | We've already selected this is the Invoice we want to pay and
again, our balance is zero. We're going to hit Save & Close.
| | 01:37 | OK, now we've paid the Invoice. Now the client's asking for
their money back on that Invoice. So to give them their money
| | 01:44 | back we're going to have to process a Credit Memo and then
turn that into a Refund. To process a Credit Memo we go to New
| | 01:51 | Transactions, Credit Memos and Refunds.
| | 01:54 | Alright, Susie Sweet is in our drop-down choice. We're going to
tab to bring her down. We're going to go back to our item and we want to
| | 02:01 | put the Credit Memo back to the same part that she originally
bought. So we're going to go in here and choose one.
| | 02:08 | We have a remaining credit of $16.09.
| | 02:11 | We're going to Save & Close. Now in here, you may remember this from
our prior lessons, before we were choosing to apply to an Invoice.
| | 02:19 | We also have two other options: Retain as an available credit
for later use or Give a refund. In this case we're going to
| | 02:26 | refund her, her money. So we're going
to leave that selected and say OK.
| | 02:30 | It takes us into Issue a Refund window and
it has Who it's to, the Amount of the refund,
| | 02:36 | the Date of the check.
| | 02:38 | It has the Bank account over here that
we're going to take the money out of.
| | 02:43 | It's going to tell us that we're issuing it as a Check,
| | 02:45 | the address. We could put some more information in here if we
wanted to for future use. It's going to batch it to be printed so
| | 02:52 | when we go and print all of our checks
later, this will be included. We say OK
| | 02:57 | and now it processes the check and shows up in our transaction line
here. And that is how you refund to a client. It's a two-step process.
| | 03:04 | You have to create the Credit Memo first, then it will take take you
through the Check window. Once you've got that, you can Batch it,
| | 03:10 | and then you can print the check at that time. So remember, if
you have a client who requests a refund from you, you have to
| | 03:16 | process a Credit Memo first to be able to run the refund check.
| | Collapse this transcript |
|
|
11. Vendor InformationUsing the Vendor Center| 00:00 | A vendor is anyone you pay money
to with the exception of employees.
| | 00:04 | To view the Vendor Center, go to the Navigation bar
| | 00:07 | and left-click one time on Vendor Center.
| | 00:09 | This brings all of your information into view. The Vendor
Center works just like the Customer Center where it gives you
| | 00:14 | your information or a list of vendors on the left-hand side.
It gives you their Current Balances and then to the right it
| | 00:20 | shows you the detailed information
associated with the vendor you have highlighted.
| | 00:24 | So by just left-clicking one time to select a vendor,
| | 00:27 | you can see that the information then populates on the right
of all the different transactions associated with this vendor.
| | 00:32 | Now, if you look here in the Details window,
| | 00:34 | you can see the Show All Transactions is defaulted.
| | 00:38 | You can filter your view by Showing All Transactions or picking
an individual transaction you'd like to filter your view by.
| | 00:45 | You also can click in the header row and send these transactions
into ascending or descending order, depending again how you would
| | 00:52 | like to see the information.
| | 00:53 | The same options are available to you by searching for the
vendors themselves. If you have a very long list of vendors
| | 00:58 | you could go ahead and filter by Name by clicking in the
Name field and then you can select ascending or descending
| | 01:04 | order for the names. Now, if you see this diamond pops, this
lets you know that the list has been sorted now from its default
| | 01:10 | view, and by clicking in the diamond you
can resend the list back to its default view.
| | 01:14 | So at any time you can change the view and sort it by alphabetical
order, or set it back to his default view by clicking in
| | 01:20 | the diamond.
| | 01:21 | You can view vendor information by the individual vendor
transactions themselves, or you have a Tab located up here
| | 01:27 | called Transactions. And if you click on this Tab and bring it
forward and make it the active window, you can now view information by
| | 01:33 | the transaction type itself, not the vendor. So if I want to
see all my bills regardless of who the bill was with, I click
| | 01:40 | on the Transaction tab. I select Bills and now it's a listing
of my vendors, the Type is Bill, the Bill Number, and Date
| | 01:47 | and so on forth.
| | 01:48 | You can also select on Purchase Orders or any other type
of transaction to bring those in view, and then you have the
| | 01:53 | same filter options up above.
| | 01:55 | We're going to go ahead and click back on Vendors.
| | 01:57 | If you notice here at the top above Name and Balance Total,
| | 02:00 | you have Active Vendors as your view currently and you have
a dropdown arrow for more choices. If we left-click in there, we
| | 02:06 | can see that you can select to see All Vendors, Currently Active
Vendors, or Vendors with Open Balances. This comes in handy
| | 02:11 | when you have vendors that you perhaps have marked Inactive or are
no longer using them, and you want to see those vendors. You would
| | 02:17 | select All Vendors and those vendors would come into view.
| | 02:20 | Also, if you have vendors with zero balances and you didn't want
to see those, you could go ahead and select Vendors with Open
| | 02:25 | Balances only and it would just show those
vendors. We're going to leave it on Active view.
| | 02:30 | To the right you have a right-pointing arrow. If you left-click
on it one time it expands or maximizes your view for your
| | 02:36 | Vendor List. Now in here, we have a column titled Name and we have
another title called Balance Totaland Notes. You can actually
| | 02:44 | customize this to you further and show
more information in this window.
| | 02:48 | If you right-click or control-click on a Mac,
| | 02:51 | you can go to Customize Columns.
| | 02:53 | And in here, it brings you this window. Now, if you look at the
window you see you have all these available columns on the left,
| | 03:00 | and what's currently active on the right.
| | 03:02 | So on the right we have our Name, and we have
the Status as Active, Balance Total and Notes.
| | 03:07 | If we wanted to add in, say the address. We left-click to select it
and we click on Add. Now, notice it populate it towards the bottom.
| | 03:16 | We have a Move Up, and Move Down is grayed out because right
now it's at the bottom. There's no place to go down further.
| | 03:21 | So we're going to go ahead and move it up
| | 03:22 | to right after Name.
| | 03:24 | We're also going to select Address 3,
| | 03:26 | and Add,
| | 03:27 | and we're going to move that up. The Move Down button now is available
and I can move it back down in the list if I so choose. I also
| | 03:33 | have Remove and Add if I need to take something out that
is showing up on the right by simply clicking on it
| | 03:39 | and Remove. And by doing that I can also
put it back in later if I so choose
| | 03:44 | by selecting it
| | 03:45 | and adding again.
| | 03:47 | Now, we're also going to finish our Address
| | 03:49 | and we're going to put in one more,
| | 03:55 | and Add into and move it up.
| | 03:58 | We're actually going to remove that.
| | 04:01 | OK, that looks good so now I'm going to say OK.
| | 04:04 | If we come in here, you can see it's all kind of squished up
on us. We're going to go ahead and click and hold, and drag
| | 04:09 | over, and expand out our view by getting our double-headed arrow
and release. And if we look at our header row we have our Name,
| | 04:16 | Address 1, Address 3, and Address 2. Now,
something is not quite right with this picture.
| | 04:20 | I have Address 2 after Address 3 so I've made
a mistake there. I need to go in and fix that.
| | 04:26 | So it's very simple to do. I'm going to go back in, Customize
Columns, and I'm going to click on Address 2, and I'm going to move
| | 04:31 | that up above Address 3. And if you notice here, Address 1 has
the same names, so it's repeating what's in the Name field. So I
| | 04:38 | really don't need that, so I'm going to
left-click on that and I'm going remove that.
| | 04:42 | And instead I'm going to grab Address 4 and Add that back in,
move it on up, and click on OK. And now, let's go ahead and click
| | 04:50 | and drag,
| | 04:51 | and there we go. So we can see how you can edit it and
customize this so you can see whatever data you want
| | 04:58 | associated with your vendor.
| | 04:59 | Now, if we left-click on our Minimize button,
| | 05:02 | it shrinks back up our view and summarizes our Active Vendor
List. And at any time I can maximize the window again and bring
| | 05:08 | my list back into view. And again if I ever want to change
these out, I can just go ahead and right-click and go to my
| | 05:14 | Customize Columns, and move things around in this view.
| | 05:17 | We're going to say OK and we're going to leave this.
| | 05:20 | So again, the vendor Center allows you to view all of your
vendor information and transactions in one convenient spot.
| | 05:28 | You can filter that information by dates and by type.
| | 05:31 | You can also drill down by double-clicking
| | 05:34 | and it takes you right to the transaction.
| | 05:36 | From here you can Add a new vendor, Add a transaction,
| | 05:40 | Edit a vendor's information, and run quick
reports. Now let's go ahead and Add a new vendor.
| | Collapse this transcript |
| Adding a new vendor| 00:00 | QuickBooks allows you the flexibility
of Adding a vendor at any time.
| | 00:03 | You may choose to input all of your vendors at once or as you
go along and input them individually. To Add a vendor, we go
| | 00:10 | up to the top where it says New Vendor and left-click one time.
This takes us into the New Vendor window and you can see
| | 00:16 | QuickBooks defaults to Vendor Name. Now keep in mind, if you
have a lot of vendors there may be a possibility of duplication
| | 00:22 | of name. In that case you may want to look at creating
an alternate file structure for your vendors by using a
| | 00:27 | combination of the vendor name with perhaps their address. Very
commonly used as the first three letters of the vendor name and
| | 00:33 | the first three numbers of their billing address. For our
exercise today, we're just going to input the Vendor Name
| | 00:43 | into Company Name and insert again.
| | 00:47 | By hitting the Tab key, it automatically lists my Company
Name down here in Name and Address and Print on Check also
| | 00:54 | autofills in with the Company Name.
| | 00:56 | If at this time we wanted to change it, we could simply highlight
and type in whatever we wanted it to read when it prints on
| | 01:02 | the check. We're going to go ahead
and leave it as the Company Name.
| | 01:05 | In this field, we can add in the rest of the address information.
We can also click on the Address Detail button and it
| | 01:11 | would bring us into Address Information
and we can populate it from this field,
| | 01:16 | or we can simply come in right here on the main tab, hit our
Entry key, and come down, and put in the remaining address
| | 01:22 | information.
| | 01:30 | (Typing.)
| | 01:31 | We come up into our Contact field and we put in the
Name of our Contact. And I'm just pressing the Tab
| | 01:38 | key to move between fields. You can also take your cursor with
your mouse and click into what ever field you want to type into.
| | 01:47 | And finally, we're going to enter our E-mail Address.
| | 01:51 | (Typing.)
| | 01:53 | And as you can see, when you're typing in it goes beyond
what you can see in the field. QuickBooks gives you a nice
| | 02:00 | little pop-up.
| | 02:01 | Now, the Address tab is all you need to fill out to get
tarted with your vendor, and even at minimum, all you'd have to
,
| | 02:06 | do is put in your Vendor Name and that would be enough
to save this vendor and begin working with QuickBooks.
| | 02:11 | As you can see, now we have all the information associated with
this vendor for our billing address, contact information, and phone
| | 02:17 | number. At this point we can start working with QuickBooks in
this vendor and if there is additional information we needed
| | 02:22 | add it as we go along, we could.
| | 02:24 | Next, we're going to talk about Opening Balances.
| | Collapse this transcript |
| Opening balance| 00:00 | Creating a Vendor Opening Balance is just like when we
discussed Opening Balances for customers and on the Chart of
| | 00:05 | Accounts. You the same choices and questions that you
have to ask yourself before you populate this field.
| | 00:11 | If I have an existing company with existing vendors I owe
money to, I have to look at the date I'm going to convert to
| | 00:17 | QuickBooks and how much history do I have, and do I want to
take the time to bring that into QuickBooks. Or would I rather
| | 00:23 | leave that history in my existing program
and just reference back there when I need to.
| | 00:28 | And starting with my Conversion Date,
| | 00:30 | am I going to populate that going forward with all
the new transactions associated with this vendor.
| | 00:36 | My Conversion Date can be today's date and I would enter all of
the balances from yesterday and then start going forward today. My
| | 00:44 | Conversion Date can also be the beginning of my fiscal
or calendar year. So I would enter all the historical
| | 00:49 | transactions into QuickBooks up to that point, and then my
Start Date in QuickBooks would be from that date forward.
| | 00:55 | Or I can choose to use the date my company began and an
enter all the historical transactions from that point to
| | 01:01 | today
| | 01:02 | and then go forward from that into QuickBooks.
| | 01:06 | To make this choice you have to ask yourself, is it worth
the time and the energy to take all this information from
| | 01:12 | the old program and populate it in the new one. And that will
depend on the volume we are talking about. If your company is
| | 01:18 | brand-new and you have no history, then
easy as pie. Your Opening Balance is zero.
| | 01:23 | But if you're coming with prior information, you have to look
at what your Conversion Date is and how much data you have
| | 01:29 | to bring over. You can put in the balances as of the date of the
conversion as it will be a lump sum. The detailed information
| | 01:36 | will be left in the old program. Or you can choose to put
into QuickBooks each transaction individually and again
| | 01:43 | that depends upon how much time you want to take.
| | 01:45 | For our exercise purposes today, we're going to populate the
Vendor Balance with $2000. And we're going to change the Start Date
| | 01:54 | as of 1, 1, 08 and that's because that
was our Start Date for this company.
| | 01:59 | We're going to go ahead and Save this and then we're going to take
a look at our Chart of Accounts so that you can see how QuickBooks
| | 02:04 | handles this type of a transaction.
| | 02:06 | So we've put in the Balance, we have
our Start Date, and we're going to say OK.
| | 02:11 | Now, let's go ahead and bring up our Chart of Accounts.
| | 02:13 | On the Chart of Accounts you can see that QuickBooks has
created a new account called Uncategorized Expenses. If we
| | 02:19 | double-click to Open it, you can see here that Lend A Hand now has
an Opening Balance--let me go ahead and expand that so that you can
| | 02:26 | read that--of $2000.
| | 02:29 | This is the money that we just populated on our Vendor Setup.
And this is what QuickBooks does. It says, "OK, you got this chunk
| | 02:35 | of money that you owe, so I'm going to
increase Accounts Payable for you automatically.
| | 02:40 | And because I don't know what exactly you spent the money on, I'm
going to create this default Miscellaneous Expense Account that
| | 02:47 | we're just going to throw the
money into for tracking purposes."
| | 02:50 | Let's go ahead and Close our Chart of Accounts
| | 02:53 | and we're going to reopen our Lend A Hand. And as you can see now,
the Current Balance is listed as $2000 and that is our Opening
| | 03:00 | Balance. So as you can see, you will need to decide how much
historical information you want to bring into QuickBooks when
| | 03:06 | setting up your vendors. Now let's look at
how we Add a Vendor Account Number in our next movie.
| | Collapse this transcript |
| Setting a vendor account number| 00:00 | If your vendor assigns you an Account Number, enter the number
in the field on the Additional Tab Info where it says Account
| | 00:07 | Number.
| | 00:08 | QuickBooks will take this Account Number and automatically enter
it into the Memo field on your Vendor Check. If this vendor
| | 00:14 | is someone you pay online, an Account Number is required
because the payee uses this number to identify who you are.
| | 00:22 | Remember, this is a number that you do not create. This
is a number that is assigned to you. You use it to track on
| | 00:28 | your checks so that when you pay a vendor they have the
Account Number readily available on the check and can easily
| | 00:34 | match you up in their records. We're going to go ahead and fill
in this Account Number here, and then later on when we go to pay
| | 00:40 | this vendor, this Account Number will
show up in the Memo field of our check.
| | Collapse this transcript |
| Categorizing vendors and defaults| 00:00 | QuickBooks allows you to categorize your vendors by types. By
selecting a type you can group your vendors together by category
| | 00:07 | which can provide you a greater level of detail for reports.
| | 00:10 | This information can be very helpful down the road if
you have a certain type of vendor that you use for certain
| | 00:17 | expenses.
| | 00:18 | A good example of this: Lend A Hand Incorporated is a vendor
we use strictly for the catering side of our business.
| | 00:24 | By creating a Type called catering, I can filter a report
that only shows me the vendors and costs associated with this
| | 00:31 | side of my business. So you can see, if I have a lot of
vendors and later on I want to be able to pull out just a certain
| | 00:38 | aspect of my business, by creating a Type called Catering
I'll be able to quickly and easily do that through my reports.
| | 00:45 | If we click in the dropdown arrow, we can see that catering
is not in the list. So we want to go ahead and Add New.
| | 00:52 | This takes us in our New Vendor Type
window and we're going to type in Catering.
| | 00:56 | We're going to say OK and Catering is now populated. If I click
down in the list I can see that becomes an option now for all
| | 01:03 | future vendors I'm going to create.
| | 01:05 | Next we have Terms.
| | 01:07 | The Terms field is used to create payment terms with your
vendor. Payment Terms is nothing more than the amount of time
| | 01:13 | you have from the date you get the bill to the day it's due.
| | 01:17 | Payment Terms can be Net 15 meaning that
the bill is due 15 days from the date of the bill.
| | 01:22 | Or perhaps it's Net 30 giving you a 30-day window from the time
you received the bill to when the bill is due. if you don't see an
| | 01:29 | option available in the dropdown menu, you can always Add a
new set of terms that can be associated with your vendor. The
| | 01:35 | 5% and 2% that you see here are Discount Terms. Meaning if I
pay the bill early then I'm going to be getting this discount. In
| | 01:43 | this case of the 5% 10 Net 30, the bill is due Net 30,
however, if I pay it within 10 days I receive a 5% discount.
| | 01:51 | We want to make our
| | 01:52 | own terms so we're going to click on Add New.
| | 01:55 | And it brings us into our New Terms window. Here
we're going to go ahead and give our terms a name,
| | 01:59 | and we're going to say 5% Net 25.
So we're going to receive a 5% discount
| | 02:08 | if we pay this bill--whoops, forgot to put in another--if we
pay this bill 15 days prior to the due date, which is Net 25
| | 02:16 | days out.
| | 02:17 | So we're going to leave Standard as selected.
| | 02:19 | We're going to go into Net Due In so it's due in 25 days.
| | 02:24 | We're going to receive a 5% discount
| | 02:27 | if we pay the bill within 15 days.
| | 02:30 | So 5% discount if we pay the bill within 15 days but the
bill it has a Net 25 term meaning it's not due for 25 days.
| | 02:38 | We're going to go ahead and say OK
and now that comes into our dropdown choice.
| | 02:44 | So again remember, Terms is nothing more
than how long do I have to pay this bill
| | 02:49 | before its past due.
| | 02:50 | If you have a Credit Limit with the vendor, you can enter that
information here and QuickBooks will automatically warn you if you
| | 02:57 | were to exceed that credit limit.
| | 02:58 | Think of a Credit Limit like a credit card. I can go out and make all
these purchases and at some point my credit card is going to max out
| | 03:04 | and I can't make any more purchases on this card.
| | 03:07 | A Credit Limit's the same. The vendor has extended a certain
amount a money to you that you can charge if you will on the
| | 03:13 | account, and once you've hit that maximum they're not going to let you
purchase anything further until you've paid down the balance, or paid
| | 03:19 | down the Credit Limit. QuickBooks can warn you if you are
about to exceed that Credit Limit by putting the amount here.
| | 03:25 | We're going to have a $1000 Credit Limit for this vendor.
| | 03:28 | Once I start making purchases with theis vendor, QuickBooks
will warn me if I should meet my Credit Limit. Tax ID Number:
| | 03:34 | In this field you would fill in the Tax ID number if this vendor
was eligible for a 1099. You do not have to put in Tax ID
| | 03:42 | Numbers for anyone that's incorporated.
| | 03:44 | Now, let's talk for a minute about 1099s. First of all, any
individual who works for you but you do not withhold taxes from
| | 03:50 | their pay, they are considered a 1099 vendor.
| | 03:53 | What does this mean for you? At the end of the year you're
supposed to report those gross wages to the government.
| | 03:59 | Now currently in the state of California, the threshold is
$600 for the year. So if you pay somebody and it's under that
| | 04:05 | threshold, you do not need to report them as a 1099.
| | 04:09 | If they exceed that threshold, you are supposed to flag them
here by putting in their social security number and checking this
| | 04:15 | box where it says they are Eligible for 1099.
| | 04:18 | If it's a sole proprietor or just an individual the
Tax ID Number should be their social security number.
| | 04:24 | I will be covering in greater detail how to
set up 1099s in QuickBooks later in this title.
| | 04:28 | This company is incorporated so they are not a 1099,
and so we're not going to fill anything in this field.
| | 04:34 | If you remember from our prior movie, we talked about custom
fields in our Customer Setup. QuickBooks also gives you the
| | 04:39 | same options for your vendors. If there's additional information
you need to add to your vendor setup and QuickBooks does
| | 04:46 | not give you a field to put that in,
| | 04:48 | you can create your own by clicking on Defined Fields.
| | 04:51 | If you remember from our prior movie when we were working
with customers we had created custom fields for birthday and
| | 04:56 | anniversary. We're going to go and type in website. We're going to
put a checkmark in the column for vendors and we're going to say OK.
| | 05:04 | Now, you get this pop-up field
| | 05:06 | that just asks if you want to go ahead forward and put this. You have
activated Custom fields for this list and do you want to go ahead and
| | 05:11 | populate this on your templates. We're going to say OK.
| | 05:15 | And then there's our website with our field that we
can put information in associated with this vendor.
| | 05:21 | (Typing.)
| | 05:29 | So remember, if there's additional fields that you need in
QuickBooks, you can just click on Defined Fields and it brings you
| | 05:35 | into this window. You can fill in whatever
information is appropriate for your business.
| | 05:41 | Finally, we're going to look at Account Pre-fill In.
| | 05:43 | And Account Pre-fill In refers to your Chart of Accounts
and the Expense Account that should be associated with this
| | 05:49 | vendor. Once you assign an Expense Account to a vendor,
QuickBooks will then automatically fill in the account information
| | 05:55 | when you are entering a bill, credit card charges, writing
a check. Whatever transaction you're doing for that vendor,
| | 06:01 | QuickBooks will remember this account information you've put
in on the Vendor Set Up and use that on the transaction. You
| | 06:07 | can always override any pre-fill information in the individual
transaction itself. Meaning if I select account here
| | 06:13 | by clicking on my dropdown arrow--and for Lend A Hand,
it's part of our catering business, so the Expense Account
| | 06:19 | we're going to select for them
| | 06:21 | is going to be Cost of Goods Sold.
| | 06:24 | Later on if I need to change that Expense Account, it won't be a
problem. I can go ahead and modify it on the individual transaction.
| | 06:30 | For reoccurring payments this is a great feature that helps
you save time by not having to look up the Expense Accounts each
| | 06:36 | time you input the bill.
| | 06:38 | So let's take a look back here where we started. On the
Additional Info tab we talked about categorizing and defaults
| | 06:44 | that you can set up for your vendors. You can create a type
| | 06:47 | by either choosing from the dropdown list that QuickBooks
provides, or adding your own dependent on your own business needs
| | 06:53 | and how you need to later on look at information for your vendor.
| | 06:56 | You also have default terms that QuickBooks gives you which
is nothing more than telling the system when this bill is due.
| | 07:02 | Again, you have dropdown and choices that are already default
in QuickBooks, or you click on Add New and creat your own terms
| | 07:09 | associated for this vendor.
| | 07:11 | Your Credit Limit which is nothing more than the amount of
money the vendor has extended to you to use. QuickBooks will
| | 07:16 | flag you and warn you if you're exceeding this Credit
Limit as long as you populate the information in this field.
| | 07:22 | The Vendor Tax ID Number is used for when you're reporting
a vendor who is eligible as a 1099. Remember, 1099s are not
| | 07:28 | incorporated. They're sole proprietorship or an individual,
and they have to exceed the minimum $600 threshold that is
| | 07:34 | currently set. If you're unsure of whether you need to be
categorizing someone as a 1099, you can check with your CPA
| | 07:40 | or accountant. Know that the threshold can change from year to
year so you'll want to check with your CPA or accountant to make
| | 07:45 | sure you are in compliance. We have our
Custom Fields that we can add at any time
| | 07:49 | to include additional information that we need about this vendor.
And finally, our Account Pre-fill. The Account Pre-fill In
| | 07:55 | is great for reoccurring payments. This will save you time
from having to lookup account information on this vendor in
| | 08:00 | the future.
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| Making vendors inactive and deleting accounts| 00:00 | During your course of business, you will find that there are
some vendors you stop doing business with and would like to
| | 00:05 | remove them from QuickBooks. To do this, you have a couple
of choices. You can make a vendor inactive which hides the
| | 00:12 | vendor but keeps all the information within QuickBooks, or you
can delete the vendor which wipes out all information and
| | 00:18 | there is no getting it back. I strongly recommend that you
start with making a vendor inactive versus deleting.
| | 00:24 | This way it holds the information. It just hides it from your
view. Later on if you're sure you're not going to do business with
| | 00:29 | that vendor anymore, then at that point in time you can delete
the vendor. QuickBooks will not allow you to delete any
| | 00:34 | vendors that have Open Balances or
transactions posted against them.
| | 00:38 | If that's the case, you have no choice but to mark the
vendor Inactive and wait 'til the end of your fiscal year.
| | 00:44 | At the beginning of your next fiscal year if you're still sure
you're not going to use the vendor any longer, you can delete
| | 00:49 | them at that time.
| | 00:50 | To make an vendor inactive,
| | 00:52 | we go up to the vendor and we right-click,
and we select Make Vendor Inactive.
| | 00:57 | Now, notice the vendor is gone out of my list. The
vendor is still within QuickBooks, it's just hidden.
| | 01:03 | To see the vendor, I'm going to go up to where it says
View, I'm going to left-click and choose All Vendors.
| | 01:09 | Notice here is Honest Tom's Accounting Service with a big X
next to it. The X represents the fact that I have marked
| | 01:15 | the vendor Inactive. If I want to bring the vendor back into view
and reactivate the vendor, I'm going to right-click on them again,
| | 01:22 | Made Vendor Active. The X goes away and now I'm going to
change my view from All Vendors back to Active Vendors,
| | 01:29 | and there's Tom's Honest Accounting Service.
| | 01:32 | So again remember, if you have a vendor that you've stopped doing
business with and you don't want to see them in your list any
| | 01:37 | longer, I recommend starting with inactivating the vendor. That
will take them out of the list but still hold the information and
| | 01:44 | you can always reactivate them later in case you start using them
again. Or you can Delete them, but deleting them will wipe them out
| | 01:50 | and you will no longer have any information on that vendor in your
system. To delete a vendor, we're going to go ahead and select the
| | 01:56 | vendor again,
| | 01:57 | and this time we're going to go to Edit on the Menu bar.
| | 02:00 | And where it says Delete Vendor, we're going to select that. And you're
going to get this pop-up. This is your last chance. This says, "Are you
| | 02:06 | sure because once you do this, there's no getting it back."
| | 02:09 | We say OK,
| | 02:11 | and they're gone out of our list.
So again remember, you have inactivate
| | 02:15 | or deleting. It's your choice, but I strongly recommend to
start with inactivating and then later on down the road you
| | 02:22 | can always choose to delete them.
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|
|
12. Entering Vendor BillsEntering bills| 00:00 | If you are entering a bill into QuickBooks it means the vendor
has given you payment terms, which means that you've bought the
| | 00:06 | product now but don't have to pay for it until later.
| | 00:08 | This transaction is recorded in QuickBooks at the time you Receive
the Bill from the vendor. The bill is recorded through the
| | 00:14 | Enter Bills window in QuickBooks. When you enter the bill
| | 00:17 | QuickBooks will keep track of how much money you owe and when
it is time to pay the bill. This is different than writing
| | 00:23 | a check in QuickBooks.
| | 00:25 | If you write a check in QuickBooks
it means you've bought the product
| | 00:28 | and are paying for it at the same time.
| | 00:31 | QuickBooks does not need to track money owed,
but instead will record the payment and expense.
| | 00:36 | Let's look at how to enter a bill in QuickBooks.
| | 00:39 | To follow along with this exercise, we will be working with t
he Eat Cake QuickBooks file from Chapter 12 folder in the
| | 00:46 | Exercise Files folder. To create or enter a bill in QuickBooks:
| | 00:50 | We're going to go to New Transactions,
| | 00:52 | Enter Bills.
| | 00:54 | Now, we're in the Enter Bills window,
| | 00:56 | we're going to click in the dropdown,
and we're going to choose The Gas Company.
| | 01:00 | Notice that it autofills in the Address information,
| | 01:03 | in the Date is defaulting to today's date.
| | 01:06 | You can click in the calendar and select a different date if
appropriate. We're going to go ahead and leave it for today's date.
| | 01:11 | Reference Number is where you would put in the invoice
number or any number on the bill that is used for tracking.
| | 01:17 | We're going to go ahead and enter in our invoice number and
| | 01:20 | we're going to come down to Amount Due.
| | 01:22 | Now, Amount Due on this bill is $35.
| | 01:26 | We're going to Tab again and it takes us down to our Bill Due Date.
| | 01:29 | Now, notice that QuickBooks has already calculated this date for us.
| | 01:32 | This date is calculated from our Net 15 terms. This was the
terms that we set up as default terms when we created the Vendor
| | 01:39 | Profile. And it's going from our due date
and going Net 15 out to give us the 17th as the due.
| | 01:45 | We have a Memo field that you could type in
additional information about this bill if you needed to.
| | 01:49 | Now, we're going to come down to our Expense tab.
| | 01:51 | Now, the Expense tab is where you're going to log in what expense account
this bill is associated with. Now, if you remember from our previous
| | 01:58 | chapters, we looked at creating Income and Expense Accounts
that help us track things that we sell and the purchases that we
| | 02:03 | make for our business.
| | 02:04 | If you notice here Utilities is the default account that
comes up, and that's because when we set up the vendor on the
| | 02:10 | Account Pre-fill In, we selected Utilities which is the
correct Expense Account for this vendor. If I click in the
| | 02:17 | dropdown arrow you can see here is my
list of accounts and there's Utilities.
| | 02:21 | So we're going to go ahead and leave that selected
| | 02:23 | and the Amount comes in as $35.
| | 02:26 | In a Memo field I could put in more information
such as this is a utility bill for December of 2007.
| | 02:34 | I could also copy this and put that information in my Memo field.
| | 02:38 | This is from my internal information.
| | 02:41 | This information can be used on reports or printing on the check.
| | 02:45 | To the right we have Customer Job and Billable Information.
| | 02:48 | You use these fields when you're tying
this expense to a particular customer or job.
| | 02:53 | We're going to learn about how to track customer job expenses
later on in the title. At this point the bill looks good and ready
| | 02:58 | to post. And if we go down to our bottom right-hand corner, we
can see the Save & Close, Save & New, and Clear are our options.
| | 03:06 | These are the same options we had available to
us when we were working with Customer Invoices.
| | 03:10 | Save & Close saves the bill and closes the window. Save
& New saves the bill but leaves the window open to enter
| | 03:17 | additional bills in, and Clear clears out all the information
we just put in the bill and starts us from scratch.
| | 03:23 | We're going to go ahead and Save & Close.
| | 03:28 | Now, if we go to The Gas Company and select it,
| | 03:31 | We can see in the balance is $35,
| | 03:33 | and here's our bill listed. We're going to go ahead double-click
on it to open it up, and that takes us right back into the
| | 03:38 | bill, and we could make any changes we needed at this time.
| | 03:41 | We're going to go ahead and Save & Close again.
| | 03:44 | Alright, we're going to make another bill.
| | 03:47 | We're going to go back to New Transactions,
| | 03:49 | we're going to go Enter Bills,
| | 03:50 | and this time
| | 03:51 | we're going to choose Cathy's Cups & Saucers.
| | 03:54 | Again, it brings in the Address information.
| | 03:57 | It brings in our Date today.
| | 03:59 | We're going to go ahead and put in our Invoice Number again.
| | 04:02 | And this time I'm going to leave the Amount Due blank,
| | 04:04 | and I'm going to move down to the Tabs.
| | 04:06 | And instead of using the Expense tab,
| | 04:08 | this time I'm going to use the Item tab. Now, this is a choice
you're going to have to make when you're working with bills. You can
| | 04:14 | either choose to use the Expense tab to track your expenses,
which is fine for things such as utilities or anything
| | 04:21 | that's a non-inventory item.
| | 04:23 | So any expense that you're not trying to track in inventory,
you can use the Expense tab to code the expense and the
| | 04:29 | amount and you're fine.
| | 04:30 | The Item tab is used for when you're tracking inventory.
| | 04:33 | You want to use this Tab and code your purchase
back to the inventory that you're increasing.
| | 04:38 | This way QuickBooks will have the correct quantity on hand
for your inventory part. We're buying coffee cups and mugs from
| | 04:46 | Cathy's Cups & Saucers. We resell this inventory part to
our customers. We're going to go ahead and select that.
| | 04:53 | Notice the Description automatically comes in,
| | 04:55 | and now we have an option to put in a quantity. Notice
$5 Amount Due is what defaulted because that's the only
| | 05:01 | cost right now selected.
| | 05:03 | We're going to go ahead and buy ten of these.
| | 05:06 | It takes the quantity you multiplied by
the cost to give us our Total Amount.
| | 05:10 | I also want to be a little more explicit exactly what I
am buying so in my Description field I'm going to put in
| | 05:18 | coffee cups.
| | 05:19 | So we're buying ten at $5 each for a total of $50 and
QuickBooks went ahead and calculated that and up that in our
| | 05:26 | Amount Due for us. By putting it on the Items tab, QuickBooks
will track in our inventory that we've bought and added
| | 05:33 | ten more cups to this inventory line. Different from the
Expense tab, which as you notice there's no place to track
| | 05:40 | quantity. If we had put it there QuickBooks would not be
adjusting our inventory and then our inventory would be off.
| | 05:47 | So if you're tracking inventory through QuickBooks, when you make
the purchase that increases your inventory, you're going to want to
| | 05:53 | use the Items tab to track that. Now, at this point
| | 05:56 | we're going to go ahead and Save
& New and leave the window open.
| | 06:01 | Notice QuickBooks posted it
| | 06:03 | and now it's giving us a blank bill that we can create one
more transaction with. We're going to choose this time,
| | 06:09 | Cookie Cutter Supply Incorporated.
| | 06:10 | Again, all the information comes in. Our date populates.
| | 06:14 | (Typing.)
| | 06:17 | Now, for the Cookie Cutter Supply Company
we're going to go back to our Expense tab.
| | 06:22 | And in here, it's defaulting to food purchases which is
the Expense Account that was originally set up on this
| | 06:26 | vendor. However, for this particular purchase what we are
buying is not part of food purchases. We're actually renting
| | 06:33 | some equipment from this company. So I need to change
my Expense Account. If I look in my list I do not currently
| | 06:38 | have an Equipment Rental Expense Account. So I need to make
one and QuickBooks gives me the option that I can Add New
| | 06:44 | right from here. So we're going to go ahead and click on Add New.
| | 06:47 | And if you remember again from our previous movies, this brings
us into our Account window where we can add and create accounts.
| | 06:53 | Expense is defaulted
| | 06:54 | so we're going to click on Continue.
| | 06:58 | Alright, this brings us into our Add New Account
window. Our Type is Expense. Our Account Name is
| | 07:05 | Equipment Rental.
| | 07:08 | And we're going to go ahead and
copy and paste it into Description
| | 07:11 | and we're going to Save & Close.
| | 07:14 | And now, we have Equipment Rental listed as you can see here.
| | 07:18 | And we can go ahead and code this
expense to that expense category.
| | 07:22 | And we are renting
| | 07:24 | an espresso bar for catering.
| | 07:31 | And then we're going to go ahead and Save & Close.
| | 07:34 | And if we look,
| | 07:37 | we can see our bills listed here, and at any time
we can drill down and see the details of that transaction
| | 07:43 | along with Cathy's Cups & Saucers,
| | 07:45 | and The Gas Company.
| | 07:47 | So as you can see there are several different
ways you can input a bill into QuickBooks.
| | 07:51 | You have the option to use the Expense tab
solely by choosing the account that you need
| | 07:56 | or
| | 07:56 | if you're tracking inventory, you use the Item tabs and select
the inventory item that you're looking to fill. And this
| | 08:02 | way QuickBooks will be able to track your inventory properly
and make sure you have Quantity On Hand reflected correctly at
| | 08:08 | all times.
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| Crediting a bill| 00:00 | If you have overpaid a vendor or
returned items that you didn't need,
| | 00:04 | the vendor will either refund your money, or more likely
| | 00:07 | issue you a credit on your account.
| | 00:09 | These credits can be applied later to future purchases
from that vendor. To Create a Credit in QuickBooks,
| | 00:15 | we're going to go to New Transactions, Enter Bills.
| | 00:18 | Now, I know that seems like a funny place
to go but if you look here at the top,
| | 00:22 | Bill is the default, however, here's Credit right next
to it. And watch what happens when we select credit.
| | 00:28 | The window changes and now is in Credit mode.
| | 00:32 | Let's look at that again. We clicked select Bill,
| | 00:35 | and it says Bill here and gives us a familiar screen.
| | 00:38 | And then if I select Credit
| | 00:40 | it switches to Credit mode.
| | 00:41 | Now Cathy's Cups & Saucers, we had bought in the previous movie
ten additional cups for our inventory. Before we issue our
| | 00:48 | Credit, let's take a look at what our inventory currently is.
| | 00:52 | If we go to List on the menu,
| | 00:53 | Item Lists, this brings us into our Item List window,
| | 00:57 | and we have coffee cups and mugs.
| | 00:59 | And we look to the right and currently we have 57 on hand to sell.
| | 01:03 | If go back to our Credit window
| | 01:05 | I'm going to return two out of the ten that we just bought from
Cathy because we bought too many. We don't need all of those.
| | 01:12 | Again, we look up here and here's our Date today.
| | 01:14 | Reference Number if we had one to put in and in here we
could reference a Credit Number given to us from the vendor.
| | 01:22 | Now, if we come down here, again we have our two Tab choices.
We have the Expense tab or the Item tab and remember from
| | 01:28 | our previous movie,
| | 01:29 | on the Expense tab you would enter the Expense Account,
| | 01:33 | and you'd enter the Amount. But there's no spot for the
Quantity. You can't track inventory on the Expense tab.
| | 01:39 | So we go to our Items tab, and in here we can select our item
| | 01:44 | and we can put in the quantity that we're returning which is two.
| | 01:48 | And notice it calculates our Credit
Count by two multiplied by the costs.
| | 01:52 | And again, in our Description field
we can put a little more information.
| | 01:57 | Now, at this point I'm going to go ahead and Save & Close.
| | 02:01 | And now, we're going to go back to our List view,
| | 02:03 | our Item List, and if you look to the right,
| | 02:07 | A-ha. On hand is now 55 so it lowered our inventory count
by two. So QuickBooks will track as long as you use the Item
| | 02:16 | list any inventory product you have based
on sales and purchases what the current on hand is.
| | 02:22 | We're going to go ahead and close that.
| | 02:24 | And so again remember, if you need to Create a Credit, it's a
little bit in a hidden spot. You have to go to New Transactions,
| | 02:31 | Enter Bills.
| | 02:32 | And on the Bill window you're going to select Credit
| | 02:35 | and then you can enter in the credit associated with that
vendor. We will be covering how to apply Vendor Credits to
| | 02:41 | your Vendor Bill Payments in the next chapter.
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| Editing, deleting, or voiding a bill| 00:00 | There'll be times when you make a mistake
and need to edit or delete a Vendor Bill.
| | 00:04 | We covered this topic in detail when we talked
about Deleting Customer Invoices in a prior movie.
| | 00:10 | Just remember, you need to be careful that you are not affecting
financial history by whatever change you choose to make.
| | 00:17 | when needing to correct a mistake you made on a Vendor
Bill, you have a few choices. You can go to the bill,
| | 00:23 | open it back up,
| | 00:25 | and simply make changes right here on the screen and resave
it. And again, I strongly recommend you be careful with this
| | 00:30 | depending on the date of the bill. When you discovered the
mistake really will depend on then whether you want to go editing
| | 00:36 | this. You can make edits right from the screen but be careful.
You want to make sure that the date that you're making the
| | 00:42 | edits is within a few days of the date
you actually posted the transaction.
| | 00:47 | Another option to fixing the mistake
that you made is just voiding the bill.
| | 00:52 | What this will do is it will keep some
information but zero out the amount.
| | 00:57 | To Void a Bill, you open the bill
and go to Edit on the Menu bar,
| | 01:01 | and you'll have an option for void. If you select this,
it keeps all the other information but zeroes out the total.
| | 01:07 | Now, you may ask what's the difference between
that and just going in and editing it.
| | 01:11 | At this point then I could restart from
scratch. I would zero this bill out
| | 01:15 | and then just create a new bill with the correct information.
| | 01:18 | A lot of it depends on what it is you're trying to correct, but
this is one option to kind of start from scratch but still have a
| | 01:25 | history of the information
| | 01:27 | available for later.
| | 01:28 | We're going to go ahead and Save & Close.
| | 01:30 | It's going to ask you if you're sure you want to do this because you're
changing something you already recorded. We're going to go ahead and say Yes.
| | 01:39 | And now you can see we still have a line item of it,
| | 01:42 | but it's zeroed.
| | 01:43 | The last option is just to delete it. Get
rid of it. Take it out like it never existed.
| | 01:47 | And again, you have to be careful when doing this. It really
epends on what was the mistake, when did you make it, and when did
| | 01:54 | you discover it, as far as which of these three items you use.
| | 01:57 | To Delete a Bill you're going to open it back up again.
| | 02:00 | Notice now, it says Paid and that's because it's been zeroed so the
system marks it as paid meaning you don't owe any money on this.
| | 02:07 | We're going to go back up to Edit.
| | 02:09 | And this time we're going to select
| | 02:11 | Delete Bill.
| | 02:12 | We choose that and Delete Transaction comes up. It asks if you're
sure you want to do this because once you say OK, it's gone and
| | 02:18 | there's no getting it back.
| | 02:20 | We say OK,
| | 02:22 | and it takes it out and this is the previous bill that
was in our view. We're going to go ahead and close to this,
| | 02:28 | and now you can see the bill is gone.
| | 02:30 | So you have several choices of a way to correct your
mistake. You can go in, open up the existing bill and edit it.
| | 02:36 | You can void the bill which leaves
some history but zeroes it out.
| | 02:40 | Or you can delete it and just completely
get rid of it out of your system.
| | 02:43 | Again, depending on the type of edit you're trying to make and
when you discovered your mistake will really dictate which
| | 02:50 | one of these three you choose to use.
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| Merging vendors| 00:00 | There's going to come a time when you're working in QuickBooks and
you realize that you've listed the same vendor twice. Whether this
| | 00:05 | was done accidentally by a typo, or perhaps there's multiple people
working in the program and didn't realize one person had already
| | 00:11 | created the vendor. Who knows? But it's going to happen
and you may have transactions post against both vendors.
| | 00:16 | You will need to merge those two together so you have
accurate data contained on just one Vendor Profile.
| | 00:21 | Now, for us to see how this works in QuickBooks
we're going to create a new vendor real quick.
| | 00:27 | And the duplicates going to be for Cookie Cutter Supply Company.
| | 00:33 | (Typing.)
| | 00:48 | OK, and we're also going to enter a transaction on t
his vendor so you can see how the data merges together.
| | 00:59 | (Typing.)
| | 01:09 | And as you can see here, we're just going to go ahead and put
in the cost of food purchases for $1000, and it's for these different
| | 01:14 | types of supplies that we're buying from Cookie Cutter Supply
Company for a total of $1000. OK, and we're going to put the Invoice
| | 01:20 | Number in right here.
| | 01:23 | And we're going to click on Save & Close.
| | 01:26 | Now, if we look we can see that under this vendor we have a bill
listed and we know this is a mistake. This is the duplicate
| | 01:32 | vendor that we created. And here's the actual
vendor and they also have a bill listed.
| | 01:36 | So what we need to do is merge the two vendors together and
have these bills reflect on one vendor. We want to keep this
| | 01:43 | bill. We don't want to get rid of it, but we want it
to show up on the correct vendor which is over here.
| | 01:47 | To do this you're going to go ahead and
open up the vendor you don't want any more.
| | 01:51 | And once you merge vendors there is no unmerging
them and getting any of the data back. So once I do this,
| | 01:58 | I'm going to lose any information contained
in here because QuickBooks is going to assume
| | 02:05 | that it wants me to keep
| | 02:06 | all the information on this vendor.
| | 02:10 | I will retain the actual bills.
| | 02:13 | Those won't go away, so the bills associated with this
vendor will stay and will become merged with this vendor.
| | 02:19 | OK, so we're going to go ahead and open up the
one we don't want to keep anymore which is the CCS.
| | 02:26 | Now, to merge the two vendors we're going to take the name
of the correct one and we're going to apply it to the name of the
| | 02:32 | one that's wrong.
| | 02:33 | If the name is long and complicated
| | 02:36 | you want to copy the name by hitting
Control+C or Command+C on the Mac
| | 02:41 | and saying OK. And then go into the one that you're going
to fix, and in here you're going to paste in the correct name.
| | 02:48 | Now, by putting in the exact same name,
we're going to click on OK, and
| | 02:51 | you're going to get the Merge window. And what QuickBooks is
asking you is do you want to merge these two together. The
| | 02:56 | name's already being used and
you want to merge it with that one?
| | 02:59 | You say Yes,
| | 03:01 | and now Cookie Cutter Supply is the only one in the list.
And if you look to the right, there's both of the bills, so it
| | 03:07 | took whatever information was on the other one.
| | 03:10 | It put it into the correct one,
| | 03:13 | but it held any information on this screen with the original.
So what it deleted was the old information that was on the wrong
| | 03:22 | one as far as Address info. If you notice it kept
Charlie Chip and all the phone and fax information,
| | 03:28 | and it kept all the spelling and everything the same.
| | 03:31 | OK.
| | 03:31 | So just remember, when you're going to merge vendors:
| | 03:34 | Number one, you want to make sure that they're the same vendor
because once you merge, there is no pulling them back apart.
| | 03:40 | And you go to the incorrect one, you open it up,
| | 03:43 | and you rename it the exact same name as the correct one.
| | 03:46 | Once you save it will take all of the bills and data information
and it will populate it as one and merge the two together.
| | 03:53 | So remember, you use merging vendors generally when you find
a mistake that you've made and you have the same vendor
| | 03:58 | listed more than once.
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|
|
13. Paying Vendor BillsUsing bill payments vs. writing a check| 00:00 | QuickBooks allows you two different ways to pay
bills. First you have the Pay Bills window.
| | 00:05 | You use the Pay Bills windows if you have already entered a
bill into the Enter Bills window first. Then you would go
| | 00:11 | through the Pay Bills window to pay that bill.
| | 00:14 | The path QuickBooks takes is you enter the bill first and it
increases your Accounts Payable or the money that you owe to
| | 00:20 | somebody, and it also increases your expense
account for whatever the item is that you bought.
| | 00:24 | You use the Enter Bills window when you've bought something
but you're not going to pay for it until later. So the vendor has
| | 00:30 | given you terms, which we learned about in our prior chapter.
| | 00:33 | Once you've entered the bill, and you're ready to pay it.
You're going to go through the Pay Bills window. At that time,
| | 00:39 | QuickBooks will go ahead and decrease Accounts Payable or the
money you owe because now you're going to pay the bill and it's
| | 00:45 | also is going to decrease your cash. So
again the process is I've entered the bill,
| | 00:49 | and I'm going to increase the money I owe to somebody. Okay I
owe this money later to this person. And I'm going to increase my
| | 00:56 | expense account meaning for whatever it is I've bought, I'm
increasing that expense. Later on, whether it's net 15, net 30,
| | 01:04 | I'm going to pay the bill and I'm going to decrease the money
I owe to somebody else. I'm not going to owe that money anymore,
| | 01:10 | because now I'm getting ready to pay it
and I'm going to decrease my cash account.
| | 01:13 | And then finally I'm actually going to print the check. So that's
the first option you have in QuickBooks on how to pay a bill.
| | 01:19 | The other option you have to pay bills in QuickBooks is the
Write Checks window. Now you would use the Write Checks if at
| | 01:25 | the time of purchase you're also paying for the item. This is
very different than the Enter Bills and Paying Bills because
| | 01:31 | you use Enter Bills when I'm going to pay for it later and then
go through the Pay Bills window. Write Checks is I'm buying
| | 01:38 | it now and I'm paying for it now.
| | 01:41 | Now QuickBooks does some different things behind the scenes
as it does with paying bills. In Write Checks you completely
| | 01:47 | bypass Accounts Payable, and that's because there is no money
that you're going to owe later. You're paying for it right now.
| | 01:54 | So the only thing that QuickBooks does is it increases your
expense account and it decreases your cash, and then you're done.
| | 02:00 | Now a good example of when you use this is you've gone and
grabbed a check out of your checkbook. You've gone to Cosco,
| | 02:06 | you're buying a bunch of office supplies. You write the check
right there at Cosco and then you come back to the office.
| | 02:12 | So now you need to record that check that you just wrote for
Cosco. You would go to the Write Checks window and you would
| | 02:17 | enter it. And again at that time you've paid for it, so there
isn't any money that you're going to pay out later. You're not
| | 02:23 | going to be getting a bill from Cosco. So you would use the Write
Check window. So remember if it's something where you're billed
| | 02:30 | and you're going to pay for the item later. I've bought it today
but I don't pay until 30 days from now or 15 days from now,
| | 02:37 | Use the Enter Bills window, then the Pay Bills window. If it's I'm buying
it today and I have to pay for it today you use the Write Checks window.
| | Collapse this transcript |
| Paying a bill| 00:00 | As we discussed in our prior movie, you have two different
ways you can pay bills in QuickBooks. You can use the Pay Bills
| | 00:05 | window or the Write Checks window. We're
going to start with the Pay Bills window.
| | 00:09 | Now during the course of business you been receiving bills
from vendors for things that you've purchased and now it's time
| | 00:14 | to pay those vendors. So we're going to go to New Transactions
| | 00:17 | and we're going to go to Pay Bills. This brings us into our
Pay Bills window and if you look at the top, the first option is
| | 00:23 | Select Bills to be Paid. So what bills out of what's listed
in this window are we going to pay? Now commonly you're going need
| | 00:29 | to filter the information you see in this window. If you've been
in business for quite a while and you have a lot of vendors you
| | 00:34 | do business with, adds are your vendor list is going to fill
up this entire window, it's not going to be as short as mine
| | 00:40 | and you're going to to want to be able to look at this data
and say Okay well obviously I only want to pay bills that are due,
| | 00:47 | so Due on or before and then you can select a date. And notice
how my list changed by my selecting Due on or before versus Show
| | 00:55 | all bills. By showing all bills it doesn't matter when the
bill is due, it's just going to list everything in this window,
| | 01:00 | but the reality is I'm not going to pay
everything. I'm going to pay it when it's due.
| | 01:03 | And generally I recommend that you pay bills on a weekly
schedule and you look at that by choosing the date on or before
| | 01:09 | that you want to pay the bill.
| | 01:10 | So if your paying the bill on a Friday you want to go at least
one week out and pay bills through the following week. Maybe it's
| | 01:16 | two weeks for your business, maybe it's three weeks. You have
to look at your own individual cash flow needs and decide how far
| | 01:22 | out you want to pay your bills, but you
would use this option to make that choice.
| | 01:27 | For our exercise we're going to go ahead and leave Show
all bills so we can see what we have listed. Now if we go to
| | 01:33 | the very first one it gives you the date due then it
gives you the vendor name, the bill reference number,
| | 01:37 | a discount date if there's one associated
with this vendor which we do have one here,
| | 01:42 | meaning if I pay this bill by the 17th, it's due on the 27th,
but if I pay it by the 17th, I may be able to get a discount on this
| | 01:50 | bill. Amount Due, discount used if any, that
means I've actually applied the discount to the bill.
| | 01:55 | Credits used, if any. If I have a credit to apply
and we talked about credits in our previous chapter.
| | 02:00 | And then the amount paid and notice these are blank right
now and that's because I haven't selected a bill yet by putting
| | 02:06 | a check mark on the left.
| | 02:07 | So I can either individually click and put a checkmark
in the box and then it selects that vendor and that bill,
| | 02:13 | and then notice the amount to be paid fills in.
Or I have an option here at the bottom.
| | 02:17 | And first now it's Clear Selections because I selected one. So
we're going to clear the selection. Notice the amount goes away.
| | 02:23 | And now I have Select All Bills. So if I wanted to select
all the bills in the current view I click on this button
| | 02:30 | and QuickBooks automatically fills in all the check
marks for me. So again, I can individually select,
| | 02:36 | clear, and select all. Now we're just going
to go ahead and pay one bill for right now.
| | 02:40 | And we're going to go ahead and choose Cookie
Cutter Supply Co., the very first bill on the list.
| | 02:44 | And if we go look again to the right we've got Amount Paid
and then total that's due and the total amount that I'm paying.
| | 02:50 | Now if we go down here we have a
few options. You can go to the bill.
| | 02:53 | And this is nice if you're in this window and you can't
remember the details associated with this bill, like what was
| | 02:58 | that thousand dollars for. You can click on Go to bill and
it takes you to the actual transaction. Now I don't recommend
| | 03:04 | making any edits in this window. Again as we talked about
in the prior chapter, the way that you can edit and change out
| | 03:09 | bills, you have to look at history and whether I'm changing
any historical data. So I don't recommend changing it here.
| | 03:15 | There are other ways you can go ahead and edit
the bill, which we covered in our previous chapter.
| | 03:20 | Also you have setting the discount and set credits, which at
this point in time if we had a discount or credit associated
| | 03:25 | with a vendor bill, we could go ahead and set it here. However
we're going to cover in detail how to apply a discount and
| | 03:30 | credits in our next movie. So we're
going to leave those alone for now.
| | 03:33 | If you comes down to Payment Method, Check is selected and you
have a drop-down arrow. If you selected the drop-down arrow you
| | 03:39 | would see you also have an option for credit card payment. So
if you were using your credit card to pay bills, you could select
| | 03:45 | that and then enter the appropriate information at this time.
| | 03:47 | We're going to go ahead and leave Check as the payment method.
To be printed is automatically selected to start. If at this point
| | 03:54 | in time you had actually already paid some bills using the
Write Check window but didn't realize that you had entered them
| | 03:59 | previously through the Enter Bills window and they showed up in
this list. You go, Oh my gosh, I don't want to print and pay that
| | 04:05 | again. You could assign a check member at this time, and we're
going to go through in the next exercise how to go ahead and do
| | 04:09 | that. But for now we're going to leave To be printed because
we do need to pay this bill for Cookie Cutter Supply Co.
| | 04:15 | Payment Account Tutti Frutti Bank is the default checking
account. Notice if I click on the drop-down arrow it's the only
| | 04:21 | bank account I have listed and I have an option to Add New. So
if you had more than one checking account and you were kind of
| | 04:27 | bouncing between them to pay your bills, at this point you could
select which account you wanted to have the money come out of
| | 04:32 | to pay this bill. We're going to go ahead and leave Tutti Frutti
and it gives us our ending bank balance that we currently have in
| | 04:38 | the bank so we know we have plenty of money to pay the bill. And
then finally Payment Date. This is the date that will print on
| | 04:43 | the check for the check date. You can change this at this point
time if you wanted to. So let's say I'm going to pay my bills on
| | 04:49 | Friday, but I'm processing this information on Wednesday, but
I want the check date to be Friday. I would change this date to
| | 04:55 | reflect Friday's check date even though I'm processing the
bills today and this is just a choice. It's up to you whatever
| | 05:01 | date you select here is just what's going to print as the check
date. So we've selected Cookie Cutter. We're all set to go there
| | 05:08 | and I'm going to go ahead and Pay Selected Bills.
| | 05:12 | The Payment Summary window appears and if you look in here
it's just giving you some information on what you've told
| | 05:17 | QuickBooks to do. So your payment details. Here's your payment
date. Here's the checking account it's going to come out of, and
| | 05:23 | the method. And then it tells you who you're paying. At this
point in time QuickBooks gives you the option of Pay More Bills,
| | 05:29 | Print Checks, or Done. Now, if you look at this window and you
say Oh gosh I didn't select all the bills I need to, you can go
| | 05:36 | back and pay more bills and it takes you right back to the Pay
Bills window and you can go and select further bills that you
| | 05:41 | want to pay. If you look at this window and go Nope,
| | 05:43 | that's fine, I just want to pay the one bill, you can click on
Print Checks and it will take us to the Print Check window and
| | 05:48 | we just pay this one bill. Or if you have it selected correctly
however, you don't want to print checks right now, you're
| | 05:55 | just batching it and then you're going to print them later,
you can click on Done. QuickBooks will batch this check
| | 06:01 | to be printed at a later time. We're going to go ahead
and select Print Checks to see what that looks like.
| | 06:06 | And this takes us into our Check to Print window. Now again
Bank Account. It's defaulting to our main, which is what we
| | 06:12 | had originally selected and we
could change it if we wanted to.
| | 06:15 | Then it shows us the check we've selected and puts a checkmark
next to it by default. You how the options of Select All or
| | 06:22 | Select None. Again picture a list of checks in here and if you
got to this point and realize, Ooh I still need to make changes,
| | 06:27 | I don't want to print all those checks, you could Select None
and clear them and then go back in an individually select
| | 06:34 | or by selecting none and then go No, I do want to print them all,
Select All and it would put check marks next to all of them.
| | 06:39 | We're going to go ahead and leave this selected.
| | 06:41 | QuickBooks gives you the default starting number. You would
look at the check that you have and you would make sure that
| | 06:45 | the first check you're using you have the correct first
check number listed here. Then you'd click on OK.
| | 06:51 | And it takes you into your Print Checks window. Now you have
to know that this window's going to look slightly different
| | 06:56 | depending upon whether you're on a PC or Mac
and what type of print drivers you're using.
| | 07:00 | It will tell you how many checks you have to print and the total.
It will give you the printer name of where ever you're defaulting
| | 07:05 | the print to. It will give you the page orientation type and it
should show you the check style which you need to look at and
| | 07:12 | decide what type of check you're printing on. Is it
the voucher style, a standard style or a wallet style.
| | 07:18 | When you select wallet checks, QuickBooks
is going to give you this warning window,
| | 07:22 | and it's for you to be sure that you have the correct
wallet check type selected to prevent any printing issues.
| | 07:27 | We're going to go ahead and say OK.
| | 07:29 | We're going to leave it selected for Voucher, which is pretty
much the standard check style, but again you do have options
| | 07:34 | depending on the type of checks that you use.
| | 07:36 | Number of copies and then your different options for collating
and printing the company name and using your logo on your check.
| | 07:41 | Once you have everything selected the way that you need
it you just click on Print and your check is printed.
| | 07:47 | It takes you into your Print Check - Confirmation window,
and this is just asking: Did your check print correctly?
| | 07:52 | And if it did, you could go ahead and say OK and be done.
If you had an issue where the printer jammed, you had the wrong check
| | 07:58 | number actually listed, perhaps it was the wrong amount you
didn't realize it, you would click in the Reprint area and
| | 08:04 | click on OK and QuickBooks would put this check back out
to be printed again and it would void out the check number
| | 08:09 | that you had associated. Our check printed fine so
we're going to select none and I'm going to say OK.
| | 08:15 | And now we've printed our check for QuickBooks.
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| Assigning check numbers| 00:00 | As we discussed in our prior movie when you're paying
a bill you do have the option in the Pay Bill window
| | 00:06 | to select To be printed versus Assign a check number. Now the
times when you're going to use assign a check member is if you're
| | 00:12 | in this window and you're looking at the bills and you realize,
Oh my gosh I've already paid this bill earlier through the Write
| | 00:20 | Checks window and I didn't remember that I had entered it through
the Enter Bills window. So you don't want to double pay it by
| | 00:25 | selecting it here and printing a
nother check for the same bill.
| | 00:28 | At this time, if you see that and realize Oops, I've
already paid this bill, you can go ahead and select it
| | 00:34 | and then Assign check number instead of To be printed.
| | 00:38 | What this is going to do is it's going to give QuickBooks
a chance to go ahead and say Okay well then what check did you
| | 00:43 | use to already pay this bill and we'll record that transaction
for you. So again I've selected it here, I've assigned a check
| | 00:50 | number and now I'm going to go Pay Selected Bills and it takes me
into this window that's Assign Check Numbers and QuickBooks gives
| | 00:55 | you two options. It says let QuickBooks assign the check number
or let me assign the check number which is what you're going to
| | 01:01 | want to do because you've already written the check, you know
what the check number is and so you're going to enter it here at
| | 01:07 | this time. The check date you would change if it's not today. If
I wrote the check a week ago then I need to make sure that I put
| | 01:14 | that date in here. If I wrote it today, then that's fine, I leave
it the same date. It gives you the payee information and the
| | 01:20 | amount. You say OK. And now it takes us into our Payment Summary,
which is similar to what we saw before but this is now just
| | 01:25 | confirming that here's the check number, here was the vendor,
here's what you paid and at this time you could say I'm done or
| | 01:33 | now I have to go back and pay more bills. But we're done. So
remember, if you've written a check already and when you're
| | 01:39 | in the Pay Bills window you discover Oops I entered it before
through Enter Bills but I've already paid it, just choose
| | 01:44 | Assign check number. You can go ahead and put the check number
in and QuickBooks will take it out of your Pay Bills window.
| | Collapse this transcript |
| Printing checks in batches| 00:00 | Now as we talked about in our prior movie you go into the Pay
Bills window to pay your bills and when you're in there you
| | 00:06 | have the option To be printed or Assign a check.
| | 00:09 | And we individually paid one bill, but let's say we have a
group that we have to pay. First of all notice at the bottom
| | 00:15 | here. Assign Check Number is now the default and that's
because in the prior movie we assigned a check number because
| | 00:20 | we had actually paid the bill already and we just needed to
tell QuickBooks don't pay it again. However QuickBooks holds that
| | 00:26 | as the default so that next time you come into the Pay Bills
window, this is now what is selected, So we have to remember
| | 00:32 | to look down here and change that To be printed for
the rest of bills that we want to go ahead and pay.
| | 00:37 | Now we want to pay a group of bills at one time and by
doing that again you have your options of Select All,
| | 00:42 | or Clear and select individually. We're going to go ahead and
select these three bills to pay by putting the check mark in.
| | 00:49 | Again it brings us over here and tell us the amount that we're
paying. It gives us our total due but how much we're actually
| | 00:55 | going to be paying during this transaction.
| | 00:56 | My To be printed is selected. My Payment Method is checked. It
tells me what checking account I'm taking it out of and I'm going
| | 01:03 | to select Pay Selected Bills.
| | 01:06 | QuickBooks takes you into the Payment Summary window. It gives
you all the same information that we looked at the last time.
| | 01:11 | It gives you all the checks that you've decided to pay and then
you have the same three options available to you as far as Pay
| | 01:17 | More Bills, Print the checks now or Done. Now clicking on Done
holds this information in QuickBooks and you can print the checks
| | 01:23 | later, and this happens a lot where I've selected the payments
to be made but I don't want to print the checks right now. I'm
| | 01:29 | in the middle some other task that I need to do and then when
I'm ready I'll go to my printer. I'll feed in my checks. I'll go
| | 01:35 | back and tell QuickBooks to go ahead and print
these checks. So we're going to select Done.
| | 01:38 | Okay, so now QuickBooks is holding those checks waiting to be
printed. So now I'm done doing all the other things I have to
| | 01:44 | do and I'm ready to print my checks. To be able to print those
checks I have selected I go now to File on the menu bar. I go to
| | 01:51 | Print Forms, and here I select Checks. This takes me into my
Select Checks window, which is the same window I was in before
| | 01:59 | through the Pay Bills window. Notice here are the checks I
had selected. It still gives me the bank account to select from.
| | 02:05 | It's now picking up from my check number, remember we had changed
it in our previous movie and it's now going concurrently to the
| | 02:11 | next number. Again at this point in time if I needed to change
that number because I accidentally shredded a check or a check
| | 02:16 | was damaged and I'm not going to pick it up from this point I
could go in here and type in the next check member and QuickBooks
| | 02:21 | would pick up from this point. But we're going
to go ahead and leave it as what it defaults to.
| | 02:25 | And again I have my options of it automatically
selecting all the checks, selecting none
| | 02:30 | and individually selecting. I say OK. It takes me back into my
Print Checks window. Now it's telling me I have three checks to
| | 02:37 | print for this amount of money. I have all
of my same selections. I click on Print.
| | 02:43 | It sends it through and again it asks me for my confirmation
and if there's any reprints I need to do. So if I had a
| | 02:49 | printer jam or something went wrong, at this point in time
I could select which one to reprint and QuickBooks would put
| | 02:55 | that back out available to print the
check again. We're okay. And we're done.
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| Applying vendor credits and discounts| 00:00 | As we discussed in the prior movie QuickBooks allows you when
you're paying pills to apply vendor discounts and credits.
| | 00:06 | Now remember a credit is money due you from the vendor for a
possible overpayment of an invoice or you returned a product you
| | 00:14 | didn't really neat. In addition to credits you also receive a
discount from the vendor for early payment. A discount is a fixed
| | 00:20 | amount or percentage that you deduct from
the amount that the vendor charges you.
| | 00:24 | We talked about how to create vendor payment terms with
discounts and how to make a vendor credit earlier in the title.
| | 00:29 | But now we need to learn how to apply these credits and discounts
to our bills. In the Pay Bills window if you look at the
| | 00:35 | bottom here's where you have Set Discount and Set Credits and
again we would go through and select the vendors that we're
| | 00:41 | wanting to pay and then we can see the information that comes
populated in the window and associated with this vendor.
| | 00:47 | I select the vendor and then I look across
and see what information QuickBooks gives me.
| | 00:51 | Now here it doesn't show me any discounts or credits but
if I look to the bottom all of a sudden I see that I have a
| | 00:57 | credit available for Cathy's Cups & Saucers of $10. If I
select Whole Latte of Love, there are no credits associated
| | 01:03 | with this vendor. So by clicking on the
vendor it shows me what I have available.
| | 01:08 | Now this is not a great way if you have a lot of vendors filled
up in the screen. Picture the vendors list all the way down where
| | 01:15 | you can't even see them anymore and you have to scroll and you
individually have to go through and select the vendor to see
| | 01:21 | what you have available as far as a discount or a credit.
| | 01:24 | There is a more efficient way to go about this and that's by
turning on a preference in QuickBooks that will automatically
| | 01:29 | populate the credit information for you and then you can choose
whether you want to apply it or not. To do that we're going
| | 01:36 | to cancel out of this screen and go to Edit - Preferences and for
you Mac users Preferences are found under the QuickBooks menu.
| | 01:43 | And we're going to coming into our Preferences window,
we're going to make sure Bills is selected and go to Company
| | 01:48 | Preferences. In this window where it says Paying bills you're
going to put a checkmark in the box for Automatically use
| | 01:55 | discounts and credits. This turns that preference on so that next
time you're in the Pay Bills window QuickBooks will associate
| | 02:01 | and discounts and credits automatically with
the vendor. You'll be able to easily see it in view.
| | 02:05 | In addition, you have to associate an account with
the discounts that you're going to be applying.
| | 02:10 | For the purpose of this exercise I'm going to use an
expense account and treat the discount as a reversed expense,
| | 02:16 | money I saved by paying the bill early. This way the money will
post as a minus amount on the expense line reducing my total
| | 02:23 | expenses. Again, if you're not sure what type of
account to use check with your CPA or accountant.
| | 02:29 | We're going to go ahead and click here and add a new account.
| | 02:33 | We're going to change the account type to expense and we're going
to label this account name Earnings Discount and then we're going
| | 02:41 | to copy and paste into the description and
we're going to go ahead and Save & Close.
| | 02:46 | Okay, so this is now prefilled in for our
default discount account. We're going to say OK.
| | 02:52 | Alright and go back into our Pay Bills window. So we're going
to select Cathy's Cups & Saucers and notice nothing's coming in up
| | 02:58 | here yet, until I put the check mark to the left.
| | 03:01 | By placing the checkmark in the box now, it automatically
applies the credits to the vendor and no longer holds them as
| | 03:07 | available down here. Now at this point I could still make
changes if I don't want to use all the credits for this
| | 03:12 | particular vendor payment.
By clicking on the Set Credits button
| | 03:16 | it takes me to the Credit window and you can see the check
mark was already selected. I can take the check mark out
| | 03:22 | and deselect it which takes me back to zero, which
is what it was before I turn the preference on.
| | 03:27 | So again by selecting under Edit and Preferences and putting
the preference on to automatically apply credits and
| | 03:33 | discounts, QuickBooks will do it for you and
any time you can go back into the Set Credits
| | 03:39 | and choose to modify or edit the
information that's contained within here.
| | 03:43 | In addition to credits, we also have discounts available to us
and if we click on this tab to bring this window forward, you
| | 03:49 | can see QuickBooks is giving you information as far as
what the terms are with the vendor and any suggested discount
| | 03:54 | it may have based on the credit terms you set up initially
when you created the vendor. For us we don't have any, which
| | 04:00 | is why the amount is zero,
| | 04:01 | but it has included the default account we created earlier for
our earnings discount. So at this time, if we needed to apply
| | 04:08 | in a discount to this bill, meaning I wanted to reduce the total
amount that I owed the vendor, I could type in the amount here,
| | 04:15 | click on Done, and it would apply not only
the amount of discount but the credit as well.
| | 04:21 | For this exercise, we don't have any discounts associated with
this vendor so we're going to leave that zero, go back to our
| | 04:26 | Credits tab, see that we've selected to
use this entire credit against the bill.
| | 04:31 | Click on Done. It's going to leave it posted up here and reduce
the amount owed to $40. So the bill was $50, we've applied a $10
| | 04:39 | credit and now we're choosing to pay the remaining
balance of $40. We click on Pay Selected Bills,
| | 04:46 | QuickBooks is going to take us into our Payment Summary window.
| | 04:49 | It's going to again show us what we're paying and how much we're
paying and at this point in time, we could choose to Print the
| | 04:54 | Check, Pay More Bills or select Done, which would
hold the check in QuickBooks for us to print later.
| | 05:01 |
We're going to go ahead and click Done,
| | 05:02 | close the window and now later on when we're ready to print additional checks, this check will be waiting for is under our
| | 05:08 | File - Print Forms - Print Checks, and there it is.
| | 05:14 | And so here we're in our Print Checks window and if there was anything wrong with this check we could reprint at this time
| | 05:19 | but we're going to say OK and the check has been printed.
| | 05:22 | Remember that QuickBooks will not automatically apply credits and discounts to your vendors. You have to go turn the feature
| | 05:27 | on under the Preference window.
| | 05:29 | Also remember that to apply credits and discounts to your vendor payments you have to go to New Transactions,
| | 05:35 | Pay Bills and in this window you will have the option to set discounts and credits.
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| Using the Write Checks window| 00:00 | As we talked about previously in the chapter there are two ways
you can pay bills out of QuickBooks. You can use the Pay Bills
| | 00:06 | window, or you can use the Write Checks window.
| | 00:08 | Remember that the Write Checks window is used for when you've
written some type of manual check. The term manual check means
| | 00:13 | you didn't print it out of QuickBooks, but rather you're hand
writing it because you're going to take it right then and there
| | 00:18 | to the vendor or you've taken a blank check with you out to
the vendor and now you're going to pay for it and then come back and
| | 00:24 | record it in QuickBooks later. To write a manual check,
you go to Banking on the menu bar, Write Checks.
| | 00:29 | And in this window you select the vendor that you're making
the check out to. So in this case we have to go to the gas
| | 00:35 | company because we forgot to pay our utility bill and they're
going to shut us off. The only way to prevent this is we have
| | 00:41 | to take a check straight down to the gas company's office and
pay them. So I'm just going to go ahead and write a manual check
| | 00:47 | that I'm going to then walk over to the gas
company with so I can pay my utility bill.
| | 00:51 | If you notice the Expense account tab is forward and Utilities
is the account default. I also do have an Items tab in
| | 00:57 | here. This is just like in the Enter Bills and Pay Bills
window, where you have either choice that you can make as far
| | 01:02 | as how you want to code this expense. We're
going to go ahead and use the default account
| | 01:06 | and we're going to put in $35. Notice that 35 comes
into the Check field and To Print is what's selected
| | 01:12 | meaning that QuickBooks is going to batch this to print it
later. Our bank account is selected as Tutti Frutti Bank.
| | 01:18 | And so this is our checking account option and if we had
other checking accounts we could click on the drop-down arrow
| | 01:22 | and select a different account we'd want to write the
check out of. We're going to go ahead and leave it there.
| | 01:27 | In the Memo field we can put more information. So if this was
a past due bill and you were paying for a prior month, you can put
| | 01:34 | in that information here to give yourself
a little bit of a reminder later down the road.
| | 01:41 | At this point, you come down to the bottom and you have the
same options we have in a lot of the other windows we've been
| | 01:46 | looking at, which is Save & Close, which
saves the transaction and closes the window,
| | 01:50 | Save & New which saves the transaction but leaves the
window open to have additional checks written, or Clear which
| | 01:56 | clears out everything we've put into the window at
this time and kind of starts you over from scratch.
| | 02:00 | Also let me point out the date which defaults to today's date
and again generally in manual checks you are using today's date,
| | 02:06 | however, if this was a check that you pulled out of the
drawer two days ago you ran to the office supply store,
| | 02:11 | wrote the check and just now you're getting to record in
QuickBooks, you would want to make sure this date reflects that
| | 02:17 | actual check date that you wrote. For our purposes we're writing
the check today and we're going to walk it over to the gas
| | 02:24 | company. So we're going to leave it set to the
default. I'm going to go ahead and Save & Close.
| | 02:28 | And now if I wanted to print the check, I
would go back up to File - Print Forms - Checks,
| | 02:31 | and here it's listed in my Print Check window.
And now we're going to click on OK and print the check.
| | 02:39 | And it takes us into our Print Checks window, and we would
make sure we have our Check Style selected and click on Print.
| | 02:46 | And it would take us through to our Confirmation window
and we need to say OK and we've printed our check.
| | 02:51 | Now that was the first example of
how to use the Write Checks window,
| | 02:54 | and in that example we created the check and then we had QuickBooks
print the check and that may happen for you. Again it's
| | 03:00 | the circumstance of, Okay I'm at the office and I need to go
out and pay this bill, so I need to take a check with me. So my
| | 03:07 | accounts payable clerk please write me a check right now that
I can then walk over and hand to the vendor. That's scenario
| | 03:12 | number one. Scenario number two is I actually took a blank
check with me to the vendor and while I'm there I'm filling
| | 03:20 | the check out or writing it manually
or by hand, and then later on when I
| | 03:24 | come back to the office I need to record the check. For that
scenario we go back to Banking - Write Checks window. And again
| | 03:31 | we're back in same window we were at previously. This time we're
going to select Lend A Hand Inc. This is a vendor we use who
| | 03:38 | supplies waiters and servers for our catering side of the business
and I have to go to that vendor, discuss with them some things
| | 03:44 | that we're going to be needing for an upcoming event and I'm
going to be giving them a deposit check at this time. So I'm
| | 03:49 | taking a blank check with me from the company, I'm going to go
over to Lend A Hand and I'm going to write a check while I'm there.
| | 03:54 | So here we're going to go ahead and record now, I've come
back to the office and I have that amount that I filled out
| | 04:00 | on the check. So we gave them $100 deposit for catering service.
Now we've already written this check so we don't need to print it
| | 04:13 | again. We've given it to the vendor. I'm just recording it in
QuickBooks. So this time, we want to make sure we take the check
| | 04:19 | mark out of To be printed. We don't want the check to print again,
I just want record the expense and lower my cash. So I take the
| | 04:25 | check mark out. I click on Save & Close.
| | 04:27 | It records the check. Now previously, if you remember we had gone
to File - Print Forms when we had batched the check to print later.
| | 04:34 | If I go there now notice it's empty, and that's because I
deselected the option to print and QuickBooks just went ahead and
| | 04:41 | record it and assumed we had already taken
care of it by hand writing the check.
| | 04:46 | To look at this and see the transactions we've been posting, we can
go to our chart of accounts, and we can open up our bank register.
| | 04:54 | And if you look here you'll see the
Lend A Hand check that we just printed and
| | 04:59 | and the gas right up here and these are the two
checks we just did through our Write Checks window.
| | 05:04 | So remember, you would use the Write Checks window for any
time you're making a purchase and paying at the same time.
| | 05:10 | You would use the Enter Bills window and Pay Bills window,
if you're going to receive a bill from the vendor and pay them
| | 05:16 | at a later date.
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|
|
14. Using Purchase OrdersUnderstanding the reason for purchase orders| 00:00 | Before we can talk about why you should use a Purchase Order,
we need to talk about what a Purchase Order is. You
| | 00:07 | have to think about Purchase Orders like a promissory note. It tells
the vendor that you want to buy something at an agreed-upon price,
| | 00:13 | and that you are authorized to make the purchase, and that
you will pay the vendor at a later date for the product.
| | 00:19 | Sending a Purchase Order to a vendor constitutes a legal
offer to buy products which is why vendors usually request
| | 00:24 | Purchase Orders
| | 00:25 | for purchases of significant size,
| | 00:28 | as the Purchase Order reduces the risks involved.
| | 00:31 | Now, besides giving the vendor peace of mind that they will
be paid for their product, Purchase Orders enables you, the
| | 00:36 | buyer, to keep track of what you're buying,
| | 00:40 | Purchase Orders track what you've ordered
| | 00:42 | and when you ordered it.
| | 00:44 | They track how much you ordered,
and when it's due to be received,
| | 00:48 | and they tracked when it did actually come in.
| | 00:52 | Now, QuickBooks creates a non-posting entry to hold the
Purchase Order information. What this means is it does not post
| | 01:00 | anything to Accounts Payable or to an Expense Account, meaning it's
not going to show that you have a liability or outstanding debt
| | 01:06 | for this, or that you've increased your expenses. And the reason
for this is in accrual-based accounting you don't record
| | 01:12 | an expense until you actually have received products. And
Purchase Orders again are just a promissory to buy and
| | 01:19 | pay later. And at this point in time you actually haven't
| | 01:22 | received anything. So QuickBooks creates this little holding account
that's a non-posting just to keep track of the information. And
| | 01:30 | later on when you actually receive the items in the bill
you'll post that information into QuickBooks, and then it will
| | 01:35 | increase your expense and increase your liability.
| | 01:38 | Tracking your purchases in QuickBooks can be a great asset if
you have a high volume of products you buy on a regular basis.
| | 01:45 | Not to mention it helps you manage your cash flow better so you
get a good idea of how much money you have out there pending
| | 01:51 | in liability for orders that you've
placed that are pending receipt.
| | 01:55 | If you don't do a lot of high-volume ordering,
you may not need to use Purchase Orders.
| | 02:00 | If you do have a lot of inventory that you need to track or are
frequently ordering product, then Purchase Orders would be a
| | 02:05 | good thing to use to help you better keep track of what you've
purchased, and when you've purchased it, and when it's coming in.
| | Collapse this transcript |
| Creating a purchase order| 00:00 | As we discussed in the prior movie, Purchase Orders
will help you keep track of the products that you buy.
| | 00:05 | To create a new Purchase Order
go to New Transactions, Purchase Orders.
| | 00:09 | If you do not see this in your program at home, that means
you did not enable the feature at the time you created your
| | 00:15 | company in QuickBooks and you need to do so now.
| | 00:19 | To enable the feature go to Edit on the Menu bar, Preferences.
And if you're on a Mac go to the QuickBooks menu,
| | 00:25 | Preferences.
| | 00:27 | In this window you want to make sure
Items in Inventory is selected
| | 00:31 | and bring up Company Preferences.
| | 00:33 | A checkmark needs to be next to Inventory and Purchase Orders
are active. Once that's turned on, you will have the option
| | 00:40 | to create Purchase Orders in QuickBooks.
We're going to leave it as OK.
| | 00:45 | And now we can create our first Purchase Order.
We're going to go back to New Transactions
| | 00:49 | and you should now see Purchase Orders in
your dropdown and we're going to select it.
| | 00:54 | This brings you into your Create Purchase Order window. And
if you notice, it looks very similar to the Invoice window and
| | 00:59 | the Sales Receipt window for that matter. We have at
the top our Previous and Next buttons, Print and E-mail.
| | 01:05 | Below that we have Vendor Options and the dropdown arrow to
choose a vendor that we want to create our Purchase Order for.
| | 01:11 | And we're going to select Cookie Cutter Supply Company.
| | 01:14 | It populates that information into the Vendor window and to the
right it also gives Ship To you as our address which is the default.
| | 01:21 | Now, if you wanted to ship it someplace else, if you noticed
here in the milddle you have a Ship To option and a dropdown. So
| | 01:27 | if you were buying a product that you wanted to have drop-
shipped at another location, perhaps a customer, or if you had
| | 01:33 | multiple offices,
| | 01:35 | you could choose it here. Then QuickBooks would fill that information
in here in the Ship To field. We're going to leave it as the
| | 01:41 | default. And up above here we have the date which you can
change by clicking in the calendar and choosing another date
| | 01:46 | for this Purchase Order. We're going to go ahead
and leave it to the default which is today's date.
| | 01:50 | And to the right of that we have the P.O.
Number which QuickBooks automatically assigns.
| | 01:56 | Down below we have Expected Date. This is the
date that you're expecting to receive the items.
| | 02:02 | This date you click in the calendar and again, you change it
to whatever date you are expecting to receive the shipment.
| | 02:08 | We're going to go ahead and say
we're going to receive it next Friday.
| | 02:11 | The Ship Via is how is it being shipped. And again, these
are defaults that QuickBooks populates with. If you did not
| | 02:17 | see the method of shipping that you are using, you can click
on Add New and set it up at that time. We're going to go ahead
| | 02:22 | and use UPS.
| | 02:24 | Now, if you're using your own program and you do not see some
of these options, by going into the Customize button it'll take
| | 02:32 | you into the Customize Template form and you'll find you'll be
able to select these and more fields to have show up on your P.O.
| | 02:38 | We're going to learn about customizing
our templates later on in this title.
| | 02:43 | Down here in the body we have the Item and Description. And again, if we
click in the column we get the dropdown arrow. And you're going to notice
| | 02:49 | this is the Item List that we had created earlier in our
title and populated with things that we sell to our clients.
| | 02:56 | In addition to items that you sell, you can also create this
with items that you purchase, or they may be one in the same
| | 03:01 | thing. You buy the item and then you turn around and sell it.
In this case, this is true for our espresso machines. We buy them
| | 03:08 | from another vendor and then we turn around and sell them to
our clients. So we're going to choose that as the product that we're
| | 03:13 | buying from Cookie Cutter Supply Company.
| | 03:16 | And in the Quantity field we're
going to go ahead and type in ten.
| | 03:20 | Our rate is already established when we set up the item. Customer
field if we were going to associate this particular purchase
| | 03:26 | with a customer--which we're not at this time--and then give
us the Amount which it multiplies by the Rate and the Quantity.
| | 03:33 | Down here in the bottom you have To be printed and To be
e-mailed. To be printed is the default. If you wanted to e-mail
| | 03:40 | this Purchase Order to your vendor, you can also select To be
e-mailed and send it to them that way. We're going to go ahead and
| | 03:46 | leave To be printed to be checked, which means later on we'll close
and save this Purchase Order and then we can go ahead and Batch
| | 03:52 | Print all four orders at one time through the File, Print menu.
If we wanted to go ahead and print this Purchase Order right at
| | 03:58 | this time, we would take the checkmark out and then
select Print at the top, and print this Purchase Order
| | 04:03 | individually.
| | 04:04 | But we're going to go ahead and
leave this selected to print it later.
| | 04:08 | Down here in the right we have our three buttons: Save & Close,
which will post this Purchase Order and then close the window,
| | 04:15 | Save & New, which will post this Purchase Order and then
keep the window open to create another one, and Clear, which
| | 04:21 | clears out all the contents in the window
and let's us start over from scratch.
| | 04:25 | We're going to go ahead and Save &
Close and post this Purchase Order.
| | 04:31 | Alright, if we go now and select
Cookie Cutter Supply Company,
| | 04:35 | We can see here that Purchase Order Number 1007 is listed with
today's date, and there is our 250. If we wanted to see the
| | 04:43 | details associated with this Purchase Order, we would double-
click and reopen it, and there it is. So that's how you create a
| | 04:50 | Purchase Order in QuickBooks. Again remember, Purchase Orders
are great if you're tracking inventory in QuickBooks and always
| | 04:56 | want to have consistent information as
far as the quantity on hand, what I've bought,
| | 05:01 | when is it due to come in, and did I receive it.
| | 05:04 | So that's how you create a Purchase Order in QuickBooks. Next we're
going to learn how do you receive an item against that Purchase Order
| | 05:11 | meaning OK, I've ordered it,
| | 05:13 | and now I've gotten it in, and I need to record that in
QuickBooks. And we're going to cover that in our next movie.
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| Receiving items and entering bills at the same time| 00:00 | After you create a Purchase Order in QuickBooks
there are two ways to receive the items. One,
| | 00:06 | you receive in the items first
| | 00:08 | and then later on you're going to enter the bill.
| | 00:11 | Or what QuickBooks feels is the most common method, you're going to
receive the items and the bill at the same time. Now remember, you're
| | 00:19 | using a Purchase Order because you're tracking the products
that you're buying. Whether they're inventory or non-
| | 00:23 | inventory items doesn't really matter, though generally you're going to
use it because it's an inventory item that you're stocking and you want
| | 00:30 | to keep track of your quantities.
| | 00:33 | In QuickBooks you have the choice of receiving the
items first and then entering the bill at a later date,
| | 00:39 | or receiving your items and bill at the same time. We're going
to look at receiving the items and bill at the same time.
| | 00:46 | Go to New Transactions
| | 00:48 | and right below Purchase Orders
you have Received Items and Enter Bill.
| | 00:52 | We're going to select that and it brings us into an Enter Bills
window. Now notice here Bills Selected and Bills Received. OK,
| | 01:00 | that's the key difference. This is referencing now that there's
items associated with what we're doing so we're tracking
| | 01:06 | something in this process versus just entering a bill. When
you just enter a bill it means that you weren't tracking
| | 01:13 | anything associated with that bill.
| | 01:16 | If we choose the vendor Cookie
Cutter Supply by hitting our Tab key,
| | 01:19 | it brings us to our Open P.O. Exist window. So QuickBooks
is flagging you that with this vendor you have open purchase
| | 01:26 | orders meaning I bought some stuff and I'm pending receipt and
marking the bill coming in. So do you want to go ahead and receive
| | 01:32 | now? We say Yes we do.
| | 01:35 | Now it brings you into your window here that shows you a list
of any Purchase Orders associated with Cookie Cutter Supply
| | 01:40 | Company. Again, you have a dropdown. You could change it to
another vendor, but this is the vendor we're currently looking
| | 01:45 | to receive against.
| | 01:47 | I can put a checkmark next to the P.O. that I want to receive.
I say OK and then now in my window if you notice, this has
| | 01:55 | become grayed out,
| | 01:56 | and we're just working with Bill Received. And it's populated
the information that I had on my Purchase Order from what I
| | 02:02 | originally ordered from the vendor. It's brought in my Description
of my item, my Quantity and Cost, and my Amount. It also
| | 02:09 | gives me an option to Associate this cost with a customer
job. So if this purchase was for a particular job I could
| | 02:16 | choose the customer here
| | 02:17 | and add it in. And I can also tell it
whether it's billable to the client.
| | 02:22 | It also shows you to the right the
Purchase Order Number that you've selected.
| | 02:26 | In Reference Number you would enter in the Bill Number. Notice
it defaults to today's date and again, you could change that
| | 02:31 | by clicking in the calendar and putting whatever Bill Date you
needed. We're going to go ahead and leave it to the default date.
| | 02:36 | The Amount automatically populates based on the quantity in the
Cost fields. It also gives you the Bill Due which are the terms that
| | 02:43 | are set up for this vendor that we created when we initially
set up Cookie Cutter Supply. So we have a Net 30 terms so it's
| | 02:50 | driving off the Bill Date and giving
us Net 30 or due on February 1st.
| | 02:55 | If you looked at the bottom of the window we have some
options down here. Select Purchase Order: So let's say when we
| | 03:01 | originally came in here, we chose a P.O. and now we look
at it and it's wrong. I really don't want P.O. 1005. I made
| | 03:09 | a mistake. I need another P.O. Or maybe it's more
than one. At this point we could click on Select P.O.
| | 03:15 | It would take us back into our open window and instead we
could choose a different purchase order. I actually want 1006.
| | 03:22 | I say OK
| | 03:24 | and now the information changes.
| | 03:26 | And now we have P.O. Number 1006.
| | 03:30 | OK, let's say "Nope, Made a mistake. Not really
what I need." I'm going to go back to select a P.O.
| | 03:35 | I actually need both that I'm receiving. Both have come in.
I have all the product on both of these Purchase Orders. You
| | 03:41 | can receive them all at one time by selecting both here and
clicking on OK, and now it lists both in your view. You have a
| | 03:48 | lot of flexibility built in and you can receive
multiple items at one time. For our purposes today,
| | 03:54 | we're only going to the select one
item, Purchase Order Number 1005.
| | 03:58 | And we're going to say OK. All
of the information has come in.
| | 04:02 | We also have an option to Clear Quantities. It will clear
out the quantity column so you can receive whatever number of
| | 04:08 | items actually came in. As an example I've ordered two
espresso machines. The shipment came in today and I only got one
| | 04:16 | with a little notice that says
the other one was backordered.
| | 04:19 | So I could Clear the quantity
| | 04:23 | and type in one,
| | 04:25 | and then notice Amount Due and Cost here reflects this
amount of $25. This would then leave the P.O. Number still
| | 04:31 | open with one more item remaining to be received.
| | 04:35 | So you have additional flexibility here as well. Notice the
button now has changed back to Receive All. If I click that, it
| | 04:42 | puts it back to the total quantity that
I originally had purchased on the P.O.
| | 04:46 | So if I'm only receiving part of this shipment, I can change
this Quantity number at any time. It will leave the remaining
| | 04:52 | items open on the Purchase Order. We're going to
go ahead and Receive All the items at this time.
| | 04:57 | And then lastly, we have an option to show us the Purchase
Order. So again, if this isn't giving us enough information or
| | 05:03 | we're unsure about some of the things that we're looking at,
we can go right down to the details of the actual order itself.
| | 05:10 | Now, this shows you the details of the transaction that you
originally posted for this Purchase Order. And at this point you can
| | 05:16 | just see when was the expected date so you'll know how long it
actually took from the time that you ordered it, to the time
| | 05:21 | expected to receive it, to when you actually received it.
It also shows you currently here that no items have been
| | 05:26 | received yet because you're in the process of receiving those items.
We're going to go ahead and Save & Close this and come back to
| | 05:31 | our original screen.
| | 05:33 | And if you notice down here in the bottom right-hand corner,
you the same three buttons that I'm sure you've become quite
| | 05:38 | familiar with at this point if you've been going through
many of these movies with me. We have Save & Close which saves
| | 05:43 | the transaction and closes the window.
| | 05:46 | We have Save & New which saves a transaction but keeps the
window open so you can make another one, and we have Clear
| | 05:52 | which clears out all the data we just
inputted and let's you start over from scratch.
| | 05:56 | We're going to go ahead and add in our Bill Number.
| | 06:01 | (Typing.)
| | 06:02 | Everything looks good. We've received all of our
items and we're going to go ahead and Save & Close.
| | 06:09 | Now, if you come back out here you can look and Cookie Cutter
Supply Company is what's selected, and down here is our bill for
| | 06:17 | the items we just received.
| | 06:19 | If we go into the Purchase Order that we received on,
| | 06:23 | notice that QuickBooks stamps it Received in Full, and
if you look over here it tells you how many items you've
| | 06:29 | received and that this Purchase Order is now closed. So this
gives you all the information that you need to be able to
| | 06:35 | track your purchases. It lets you know when they came in,
| | 06:38 | it's going to tell you how many you received, and it's going
to close out this Purchase Order for you so you won't have any
| | 06:43 | more items later in the future you're going to receive against it.
| | 06:48 | So remember, QuickBooks gives you two options to be able to
receive items. You can either receive the item and enter the
| | 06:54 | bill at the same time which is just what we did.
| | 06:57 | Or you can receive the item first and then enter the bill
later which we're going to look at in our next movie.
| | Collapse this transcript |
| Receiving items| 00:00 | In the prior movie we saw how you received the
items and bill at the same time in QuickBooks.
| | 00:05 | But what if you received the items you purchase today
| | 00:08 | and you received the bill next week?
| | 00:10 | You don't want to wait to record the items in
QuickBooks, because then your inventory will be off.
| | 00:15 | The simple solution is to receive the items first
| | 00:18 | and then enter the bill later.
| | 00:19 | To do this in QuickBooks we're going to
go to New Transactions, Receive Items.
| | 00:24 | This brings us into our Receive Item window and notice
right here it tells you Item Receive Only. So QuickBooks is
| | 00:30 | telling you you're not entering the bil,
you're just receiving the items at this point.
| | 00:34 | Notice this is all grayed out and
our Bill Received is not checked.
| | 00:38 | It's defaulting to today's date.
| | 00:40 | Reference Number, you could put that in if you had one
associated with a packing slip or something like that.
| | 00:45 | And we have Cookie Cutter Supply Company coming in at the top.
We have our dropdown arrows where we can select another vendor
| | 00:51 | if we needed to, but we're going to go
ahead and use Cookie Cutter Supply Company.
| | 00:56 | you can see here, it brings us into our Open P.O. window. So it's
telling us we have Open Purchase Orders associated with the vendor
| | 01:03 | and QuickBooks is asking do you want to receive something
against one of these purchase orders. We're going to say Yes,
| | 01:08 | and it brings us into our Open Purchase Orders window.
| | 01:11 | Now in here again, Cookie Cutter Supply is defaulted. If we
needed another vendor we could select it at this point, but
| | 01:17 | we're going to use Cookie Cutter Supply and we're going to receive
against Purchase Order Number 1006. We're going to put a checkmark by
| | 01:23 | clicking here in the box.
| | 01:25 | And we're going to say OK.
| | 01:28 | Now, if you look in your window here, you can see on the Items
tab it has pulled in the information that was associated on
| | 01:34 | Purchase Order Number 1006 and it tells us right over here to the
right. This is very similar to what we looked at in our previous
| | 01:40 | movie when we looked at receiving the item and entering the bill
at the same time. All the same concepts apply here. We're just
| | 01:46 | only receiving the item right now and
we're going to receive the bill later.
| | 01:50 | So again, it tell us what it is that we ordered, it tells us the
Quantity, the Costs and the Total Amount, and it's also brought
| | 01:56 | that in at the top here. Notice in our Memo
field it just says Received items (bills to follow).
| | 02:02 | We also have the same options at the bottom where if we looked
at this and said, "Oops, I picked the wrong Purchase Order. I
| | 02:08 | don't want 1006." We can click on Select P.O
| | 02:13 | and it brings us right back into our same window.
And at this point in time we could select Multiples
| | 02:19 | or just one.
| | 02:21 | We're going to go ahead and leave it as 1006.
| | 02:25 | We also have Clear Quantity which zeroes out the Quantity Total,
and then we can type in whatever quantity we actually received.
| | 02:32 | So again, if we didn't receive all 15,
| | 02:35 | if we only receive, say 10.
| | 02:37 | You can either click in the Quantity field
| | 02:39 | and type in the Amount,
| | 02:40 | or click on the Clear Quantities and it would zero it out,
| | 02:44 | and then type in the amount you need.
| | 02:46 | Either way it gives you the same result.
| | 02:49 | (Typing.)
| | 02:51 | Now, if you look down here at the bottom you can see that
Receive All again comes back into play. So if we actually had
| | 02:56 | received all the product, we click on Receive All
and it restores back to its original defaults.
| | 03:02 | Show P.O. again, does the same thing where it will drill down
to the actual Purchase Order itself. So if you need to see more
| | 03:07 | information than what you're seeing in this screen, you can
click on Show P.O. and it would take you to P.O. Number 1006.
| | 03:14 | And down on our bottom right we have our same three buttons
that we always have which is: Save & Close which will save
| | 03:19 | this transaction and close the window,
| | 03:22 | Save & New which saves the transaction and keeps the window
open to create a new transaction with, or Clear which
| | 03:29 | clears out all the contents of this
window and let's you start from scratch.
| | 03:32 | We're going to go ahead and click on Save & Close.
| | 03:36 | So as you can see, now we've received our items in QuickBooks
and we've increased our inventory. Next week when we receive
| | 03:43 | the bill, we will post it into QuickBooks and we're
going to look at how to do that in our next movie.
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| Entering a bill for received items| 00:00 | If you're using Purchase Orders in QuickBooks, and you've received
items in QuickBooks without receiving the bill, there is one
| | 00:07 | more step you need to follow to make sure you've completed the
transaction properly in QuickBooks. And that's entering the bill
| | 00:12 | for the received item. Again remember,
| | 00:15 | QuickBooks has a couple of different ways you can go
about receiving items for things that you've bought.
| | 00:19 | The first step is you Create the Purchase Order which creates
this holding account for the order that you've placed.
| | 00:25 | It also allows you to track the order. The second step is
Receiving the Items. So once you've actually physically got the
| | 00:31 | items you need to record that in QuickBooks, and you can either
do that at the same time you receive the bill or you can do that
| | 00:36 | independently where you receive the item first,
and then later on you follow up with the bill.
| | 00:41 | We just went through receiving an item separately in our prior movie
and now we're going to look at just entering the bill for that
| | 00:47 | received item.
| | 00:48 | We're going to go to New Transactions.
| | 00:50 | And now, we're going to go to Enter Bill for Received
Items. We select it and that brings us into our window.
| | 00:57 | It gives us the company that we're looking to receive the bill
against, and notice we have our dropdown menu to choose in here
| | 01:02 | whichever company we were looking for. Cookie Cutter Supply
is the correct company, and notice it lists in here that we
| | 01:08 | received items for Bill to Follow. We're going
to go ahead and select that and click on OK.
| | 01:14 | And now this brings us into our next window. It looks very
similar to the other bill windows we've been in, however,
| | 01:20 | this time the checkmark is placed in Bill Received. So if
you remember from the prior movie, we were in a very similar
| | 01:26 | window, only it said Item Receipts only. This was not checked
and all we did at that time was post the item receipt into
| | 01:33 | QuickBooks, and now we're actually going to post the bill that's
associated with this purchase. In our Reference Number we would put in
| | 01:39 | our Bill Invoice Number.
| | 01:43 | (Typing.)
| | 01:45 | The amount due automatically comes in
from what's listed down in the Items tab.
| | 01:49 | We have our Bill Due Date, which
again is driving off of our terms.
| | 01:53 | We have the same options available to us at the bottom for
selecting a P.O., declaring the quantities, to showing this
| | 01:59 | P.O. that we have listed.
| | 02:01 | We have Save & Close which saves
the transaction and closes the window.
| | 02:04 | We have Save & New which saves the transaction and keeps
the window open to make another one, and this time instead of
| | 02:10 | Clear, we have Revert. Now, Revert actually takes it out from
being a Bill Received and puts it back to an Item Received only.
| | 02:17 | If we click on the Revert button notice the checkmark comes
out of Bill Received and Item Received only comes back into play.
| | 02:24 | However, that's not what we're doing, we're actually receiving
the bill at this time. So we're going to put the checkmark back in Bill
| | 02:29 | Received and it takes us back into that mode. You would use the
Revert button if by accident you had come in to receive the bill
| | 02:36 | in the reality was you weren't receiving the bill, you were
ctually receiving the item. This just gives you kind of an
| | 02:42 | out right from this window rather than you having to close
this window out and go all the way back to the beginning.
| | 02:47 | For us, we're done. We've got the bill received, all the correct
information is showing for us, and we're going to go ahead
| | 02:53 | and Save & Close.
| | 02:55 | And now you can see our Item Receipt is gone and we've just
entered the bill for the $75 that was associated with this
| | 03:02 | original purchase for Cookie Cutter Supply Company.
| | 03:05 | So again, remember,
| | 03:06 | if you're going to be tracking items in QuickBooks, Purchase
Orders are a good way to do that. It will help keep track of what
| | 03:12 | you ordered, when you ordered it,
| | 03:14 | when is it due, and when you received it.
| | 03:16 | Then QuickBooks gives you two different options of how to
receive those items. You can either receive the item and the bill
| | 03:22 | at the same time,
| | 03:24 | or you can choose to receive
the item separately from the bill.
| | 03:28 | Now, some of you may be asking,
| | 03:31 | "What if I have received the bill before the item?"
| | 03:34 | You will notice QuickBooks does not give you an option to
record the bill first. This is because under generally accepted
| | 03:41 | accounting principles you record an expense
at the time you receive the product, not the bill.
| | 03:46 | QuickBooks tries to follow this principle which is
why you do not have the option available to you.
| | 03:51 | The proper method would be to hold the bill and to not enter it
until you have received your items. If this does not meet your
| | 03:58 | business needs,
| | 03:59 | please consult with your CPA or accountant.
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| Learning to close a purchase order| 00:00 | You may find a time that after you've created a Purchase
Order, you need to close it and get rid of it because you
| | 00:06 | actually canceled the order. And so you don't need to leave
the Purchase Order open and outstanding. There is no product
| | 00:12 | that will ever be received against
it. It just needs to be closed.
| | 00:15 | If we go to the Transaction tab, we can see all
of our Purchase Orders listed here on the right.
| | 00:20 | And we're going to bring up A Whole Latte Love by selecting it
and double-clicking on it to open the Purchase Order. Now, we
| | 00:26 | ordered this on the 2nd of January and we bought ten espresso
machines. But as it turned out, we had already ordered espresso
| | 00:33 | machines from another vendor so we didn't actually need this
additional ten. So we called, we canceled the order, and
| | 00:40 | now we actually need to close the P.O. in QuickBooks. To do this,
if you look to the right, we now have a column for Closed and
| | 00:47 | one for Received items. Received is zero
| | 00:50 | because we have not received any of these items we ordered, and
we never will because we canceled this Purchase Order. We're
| | 00:56 | going to click where it says Closed and put a checkmark in this
column. And notice the word Closed comes into play. This will
| | 01:03 | close out the P.O. It will no longer be open. You won't be able
to receive any items against it or use it down the road.
| | 01:09 | It will keep a copy in QuickBooks for reference but the
Purchase Order is now closed, and if later on we need to buy
| | 01:14 | additional equipment from this vendor, we would Create
a New Purchase Order. We go ahead and Save & Close.
| | 01:21 | It gives us this window that asks us if we want to record the changes
we've made to this Purchase Order and we do, so we're going to go
| | 01:27 | ahead and say Yes.
| | 01:28 | And now we've closed the Purchase Order.
| | 01:31 | As you're doing business you're creating these as you go along,
and Purchase Orders will just sit there as a non-posting
| | 01:36 | account on your books. At some point in time you're going to
want to review your outstanding Purchase Orders and determine if
| | 01:42 | the products are still going to be received or not. If the
Purchase Orders are very old, and the reason they're still sitting
| | 01:48 | there is because you canceled the order but never went into QuickBooks
and actually closed the P.O., you're going to want to do that and
| | 01:55 | so it will take it off the books and close it out.
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|
|
15. Understanding Preset ReportsUnderstanding preset reports| 00:00 | As we talked about in the beginning of this title,
| | 00:02 | one of the most important things an accounting
system does is organize your financial information.
| | 00:07 | In the previous chapters we learned how to enter
data into QuickBooks such as creating invoices,
| | 00:12 | receiving customer payments,
and entering and paying vendor bills.
| | 00:16 | QuickBooks then organizes this information using the chart
of accounts into categories such as income and expense which
| | 00:23 | we use on reports to show how much money
we've earned and how much money we've spent.
| | 00:27 | Because we took the time initially to set up our accounts
correctly, we can now easily pull this information out of
| | 00:32 | QuickBooks by using any one of the
many preset reports QuickBooks offers.
| | 00:37 | In the next chapter I'm going to show you how to customize
a report to fit your business needs and then save the report.
| | 00:43 | But first, I want to show you a few
of the preset reports QuickBooks offers
| | 00:48 | that I think you will find very
useful in your day-to-day needs.
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| Understanding Sales by Item Summary reports| 00:00 | There are many Sales Reports you can choose from in QuickBooks.
I like the Sales by Item Summary Report because it shows you
| | 00:06 | the total quantity of each item you sold, the total
sales amount, and the Cost of Goods sold for each item.
| | 00:12 | So you can see your gross margin.
| | 00:14 | If you don't know what I mean when I
say cost of goods sold or gross margin,
| | 00:18 | You may want to go back and review
cost of goods sold movie in Chapter 2.
| | 00:21 | To find the sales by item summary, we go to the menu bar
where it says Reports, go down to where it says Sales
| | 00:28 | and choose the Sales by Item Summary. Now the first thing
you look at is the title. It tells us the name of the company,
| | 00:34 | the title of the report, and the date for what the information
is that we're looking at. Here it has Sales by Item Summary,
| | 00:42 | January 2008. If you go to the upper left-hand corner Dates and
you can see it says This Month-to-date, and we have a drop-down
| | 00:48 | arrow. If you click in here it you'll get a different
option for filtering the date range of this report.
| | 00:53 | You can choose All, Today, This week-to-date, and so on.
We're going to go ahead and leave This Month-to-date.
| | 00:58 | You can also change the date manually
here in the From and To fields.
| | 01:02 | It does the same thing as selecting the default options here.
To get the exact same dates you see displayed here, change the From
| | 01:11 | to 1/1of 08, and the To to 1/31 of 08.
| | 01:14 | Next to that we have Columns and this is how you're going
to sort or look at your information contained in each of the
| | 01:20 | columns. Right now it's going by Totals only,
and then your Sort By, which is selected as Default.
| | 01:27 | We have different ways of viewing
the information in the columns.
| | 01:30 | We can look at our data by Week, or by day.
| | 01:33 | If we look at it by week, we see our information
change. It now says January 1st through the 5th.
| | 01:39 | This is showing us our sales for the week of January 1st
through the 5th. If we go down the bottom to the scrollbar,
| | 01:45 | and scroll to the right we can see
additional weekly sales information.
| | 01:49 | We can then go back and reselect for the month, and it
now again shows us our sales for the month of January.
| | 01:55 | You also have the Sort By option which is nothing more than
giving a sorting by the Column. So if we look at Total, we
| | 02:03 | have an ascending and descending button. And if we select
that it shifts the way that this information is sorted.
| | 02:11 | You can sort it by ascending or descending order.
| | 02:14 | We're going to go ahead and leave it with the default. If we
look to the left number one, it tells us the item that we sold.
| | 02:21 | It starts with Inventory items so if you track inventory it's
going to give you a list of any of those items you set up in
| | 02:27 | QuickBooks. Next comes Non-inventory items,
so things that you aren't tracking through inventory.
| | 02:33 | After that we have Services that we sell.
| | 02:36 | The first column is the Quantity of what we've sold. So for
coffee cups and mugs we sold three for the month of January.
| | 02:44 | The column to the right of that is the amount. This is the total
amount of sales for the month. So for three we've sold for a
| | 02:52 | total of $45. Next to that we have percentage of sales.
Percentage of sales looks at the total sales for the month
| | 02:58 | and the percentage of coffee mug sales in compared to the total.
| | 03:03 | So we've sold 2.8% out of our total
sales for the month were coffee mugs.
| | 03:08 | To the right of that is average price. Our average
price that we're selling coffee mugs at is $15
| | 03:14 | To the right of that is cost of goods sold. This is the total
for three coffee mugs that it's cost us to sell this product.
| | 03:23 | Our average cost is five dollars each.
| | 03:26 | So it's $5 per for a total of $15 is what it cost us
to sell this product leaving us a gross margin of $30. So
| | 03:35 | again, you can see if our average price is $15,
and it cost us $5, that leaves a net of $10
| | 03:42 | per item. We sold three of them which gives our gross margin
of $30 or 66.7% gross margin. If you look below that you can
| | 03:52 | see that for the parts there are no cost of goods sold
associated and that's because these are non-inventory items, so
| | 03:58 | we're not tracking the cost of these items that we're selling.
It still gives us the same information in regards to the
| | 04:04 | sale, so we still get a quantity, the total amount, the
percentage of the sale, and the average price. The same thing
| | 04:12 | with Service, at the bottom lists the totals for this report.
| | 04:15 | And if you notice as I'm moving my pointer around sometimes
I get this little zoom spyglass. Whenever you see that that
| | 04:21 | means QuickBooks will let you drill down to a little bit more
detailed information in regards to this item. So in this case,
| | 04:28 | if I want to see detailed information on what makes up these
sales of the $45 I take my spyglass and I double-click and
| | 04:36 | then it takes me to just that inventory item, and I can see
a detailed listing of what was happening transaction-wise
| | 04:42 | for the month of January associated with that item. Notice the
name of the report's changed. I'm in a whole different report.
| | 04:49 | At this point, I can simply close the report
to get back to where I was originally started.
| | 04:53 | As you can see this report gives you a great
amount of detail regarding the products you sell.
| | 04:59 | As I said before keeping track of the cost of the products and
services that you sell allows you to measure your profitability
| | 05:05 | on those items. This information will help you target those
products and services that you sell that make you the most money.
| | 05:12 | So I strongly recommend that you review this on a regular
basis as it will really help you see what type of money you're
| | 05:18 | making on the things that your selling.
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| Understanding Accounts Receivable Aging reports| 00:00 | An Aging Report is nothing more than a list
of customers who have not paid their invoice.
| | 00:05 | An Aging Report tracks past due invoices based on
the date of the sale and due date of the invoice.
| | 00:11 | The Aging Report can show you when the invoice is due, the amount
of the sale, and how many days past due the invoice may be.
| | 00:18 | This is very helpful for keeping track of how much money is owed
to you and if you have customers who are late in paying you.
| | 00:25 | I want to show you one of the Aging Reports that
QuickBooks offers. If we go to Reports on the menu bar,
| | 00:31 | Customers & Receivables and we're going to look
at the Accounts Receivable Aging Detail report.
| | 00:38 | If we look in the upper left-hand corner we have where
we can select what date we want to view this data for,
| | 00:43 | and it's defaulting to today. If you click on the drop-down
arrow you can see you have a lot of different options as far as the
| | 00:48 | date range you want to choose for this report.
We're going to go ahead and leave it as today.
| | 00:52 | You could also just select it manually by clicking in
the calendar icon here and choosing a date range as well.
| | 00:58 | If you look at the report here, it tells you as of January
31, 2008. So that means the information contained on the
| | 01:05 | report is through this date. The interval days is 30,
| | 01:09 | meaning that it's breaking this out by 30 days. If you wanted
to see it in different intervals, you could change this to 10,
| | 01:17 | 20, 40, whatever you needed it to be and
then QuickBooks would refilter these by that range.
| | 01:23 | The past due through is saying through 90 days past due.
That's how it's going to capture anything that's beyond that,
| | 01:31 | drop it into your 90 day range. Again, if you
wanted to see that farther out, perhaps 120,
| | 01:38 | you could put that information in here and then QuickBooks
would show you that listed here on the left. Sort By and it's
| | 01:44 | selected to default. If you click the drop-down arrow this
gives you different columns that you can sort your data by.
| | 01:51 | If we select type, we have an ascending and descending option to
be able to filter our Type column simply by clicking the button.
| | 02:00 | It'll allow you to resort this information
in ascending or descending order.
| | 02:06 | We're going to go ahead and leave it on default.
| | 02:08 | These are nothing more than ways to view this data, and this is a
matter of preference. How you need to get information out of this
| | 02:16 | report. As we look at the different preset reports QuickBooks has
to offer you're going to notice that a lot of this is the same
| | 02:21 | information as far as how you go about changing things, and
QuickBooks did that on purpose. It makes it easier for you
| | 02:27 | to be able to figure things out.
| | 02:29 | There will be certain things that are particular to a
report but the overall concepts are going to be the same.
| | 02:35 | If we look here to the left we can see that first of all it lists
the current invoices, meaning people that are not past due yet.
| | 02:41 | The first column is type, so it tells you the type of data
you're looking at. In this case we have invoices and a few credit
| | 02:48 | memos. It's going to bring credit memos in if they are outstanding,
meaning you have to not applied them to anything yet.
| | 02:56 | So if you see credit memos on your Aging report it means you
credited your client but you didn't apply that credit to
| | 03:03 | anything else yet so it's leaving it open,
| | 03:05 | and you can apply it to an invoice later. Next to Type we
have Date and this is the date of the transaction. This
| | 03:12 | invoice was created on January 2, 2008.
| | 03:15 | Next to that we have the number associated with the invoice.
If there were any PO's assigned at the time, they would be listed
| | 03:21 | here. The next column is the name of the customer,
the terms associated with that customer,
| | 03:27 | so did I give them Net 30, Net 15, how
long they have before they have to pay me.
| | 03:32 | The due date, which is associated with
the Terms. So based on the invoice date,
| | 03:37 | and the terms you gave the client,
is going to base when it's due.
| | 03:41 | Aging is how many days past due and these
are blank because they're not due yet.
| | 03:47 | And then our open balance, which is the amount of
money that we billed them and what they have to pay us.
| | 03:52 | If you go down to your 1 to 30 category, these are now the
invoices or perhaps credit memos that are now considered past due.
| | 04:00 | And as you can see we have a few here and the system is
telling you how far past due they are. So for this particular
| | 04:06 | invoice they are 17 days past due.
| | 04:09 | I recommend you print an Accounts Receivable Aging Report
at the end of each month and review it. This way you can stay
| | 04:15 | pro-active in your follow-up with a customer who is
either already past due or close to becoming past due.
| | 04:22 | By regularly checking your accounts receivable aging, you
should be able to minimize the number of customers who pay you late.
| | 04:28 | This will help keep your cash flow positive or in
other words you'll have more money to pay your bills with.
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| Understanding Unpaid Bills reports| 00:00 | Similar to an Accounts Receivable Aging Report, the Unpaid
Bills Detail lists unpaid vendor bills and their due date.
| | 00:07 | By using this report to keep track of your vendor bills,
you can ensure that you will pay your bills on time
| | 00:13 | and avoid penalty fees or finance charges. To find the report,
we go to the menu bar, we select Reports - Vendors & Payables -
| | 00:22 | Unpaid Bills Detail. Now, if you listened
to any of the other movies prior to this,
| | 00:27 | you will see similar features presented, such as the Date filter.
| | 00:31 | Again, we have options as far as when
we want to see the dates on this report.
| | 00:35 | We're going to go and leave it selected for Today.
| | 00:38 | And again to the right we also have an option to just choose
it manually by clicking in the calendar button. We have our
| | 00:44 | Sort By, which again sorts the different column headers.
It's set to default but you can see that you can select the
| | 00:50 | different columns, and then you have your ascending and
descending button to be able to filter the data in a different
| | 00:58 | order. We're going to go ahead and leave it to the default.
| | 01:00 | In our Type column it shows us the type of item associated with
this vendor. So whether it's an item receipt or the actual bill.
| | 01:08 | It gives us the date of that item,
the number associated with it,
| | 01:12 | the due date, so if we're looking at the bill we can see that
the due date of the bill is January 17, 2008, and the aging.
| | 01:20 | As far as how far out or past due
we are on the paying of that bill,
| | 01:24 | and the open balance associated with it. So this is very similar
to the customer Accounts Receivable Aging report. It just
| | 01:31 | shows us the information for our vendor
bills and the money we owe to other people.
| | 01:36 | Just like in the other reports, you also have your zoom lens,
where if you need to see the details associated with this bill
| | 01:42 | you can double-click and it will
take you to the actual bill window.
| | 01:45 | We go ahead and just close that and it
takes us right back to our report.
| | 01:49 | As I mentioned before, you can find information more than
one way in QuickBooks. If you go to the Vendor Center by
| | 01:56 | clicking on the Vendor Center icon located
on the taskbar and go to the Transaction tab.
| | 02:01 | Select Bills, you can view by Open Bills or Overdue Bills and
this will give you the same information that you were showing on
| | 02:08 | the Unpaid Bills Detail report. You can also then print this
information by clicking on the Print button in a report format.
| | 02:15 | Again no matter how you look up this information, I strongly
recommend that you get into a weekly routine of paying your
| | 02:21 | bills. If you are always paying 5 to 7 days out from the due
date, you avoid the risk of being late and racking up late fees
| | 02:31 | and penalty charges. Besides avoiding the additional
fees, it is important to pay your vendor bills on time
| | 02:34 | as it will help you establish and maintain good credit.
| | 02:37 | Without good credit vendors will require you to pay at the
time of purchase, which can negatively affect your cash flow.
| | Collapse this transcript |
| Understanding Inventory reports| 00:00 | If you use QuickBooks to track your inventory, you will want
to take the time to review the various reports QuickBooks offers.
| | 00:06 | I want to show you one of these reports that will help you save
time by showing you exactly what your current quantity on hand
| | 00:12 | is and if you have reordered product
recently, and if so when is it due.
| | 00:16 | Go to Reports on the menu bar, select
Inventory - Inventory Stock Status by Item.
| | 00:23 | Now again if we look at this report it tells at the top
the title of the report so we know what we're looking at
| | 00:29 | and the time frame associated with it. This is for January 2008.
| | 00:33 | Again we have a date range that we can filter different dates
by or we could manually type in the dates that we wanted this
| | 00:38 | report to filter. We have our column headers for Item
Description and on the left it lists the different
| | 00:44 | types of inventory items that we carry.
Next to Item Description we have Preferred Vendor.
| | 00:49 | At the time we created the item if we had associated
a vendor with this item ,it would be listed here.
| | 00:54 | Right now, we don't have any vendors
associated with the purchases of these items.
| | 00:58 | The Reorder Point shows us what we
set up when we created the item.
| | 01:02 | At what point did we want the system to flag us to order
more product. We told the system when we get down to 10 to
| | 01:09 | let us know and it's time to reorder.
| | 01:11 | On Hand means the total quantity that we currently have
in stock. So we have 112 coffee mugs currently in stock.
| | 01:18 | Order would come into play if we had gone below the reorder
point, and now there would be a checkmark in this column saying
| | 01:24 | it's time to reorder more products.
| | 01:26 | On PO would mean if we had ordered some product. it would
show us the quantity that we have on a purchase order. So you can
| | 01:33 | see for espresso machines, we currently
have 10 of them on order through a PO.
| | 01:38 | Next date of delivery is telling us when they are due to be
received. So we have 10 of our espresso machines that are due to
| | 01:45 | be received on January 11.
| | 01:47 | If we take our zoom lens we can go ahead and
drill down and get a little bit more information.
| | 01:53 | So we can see here for the espresso machines,
that we've billed and invoiced for various things.
| | 01:59 | And our purchase orders and as of the date and what POs we have
outstanding. And here's the one where we have 10 that we're
| | 02:07 | awaiting on. So we can go ahead and close this report
and go back to our main Inventory Stock Status report.
| | 02:12 | As you can see the Inventory Stock Status by Item report
is a good tool for when you're getting ready to reorder
| | 02:18 | product. It will let you know what is your current quantity
on hand, and if you have already ordered replacement product.
| | 02:25 | Another option would be the Open Purchase Orders
report, which we will look at in our next movie.
| | 02:30 | The Open Purchase Orders report provides a list of all
current part ordered but not yet received. This report filters by
| | 02:36 | open purchase order numbers rather than by inventory items,
which can be helpful if you were trying to look up a specific order
| | 02:42 | you placed. You will find there are many ways you can look up
the same information in QuickBooks. The key will be to find which
| | 02:48 | method is right for you.
| | Collapse this transcript |
| Understanding Open Purchase Orders reports| 00:00 | Let's say we sell coffee mugs and espresso
machines and our inventory is running low.
| | 00:04 |
I placed an order a few weeks ago, but I
can't remember when or how much I ordered.
| | 00:09 | If I can't find this information I could end up
duplicating the order and have too many of the same product.
| | 00:14 | The Open Purchase Orders report gives me a quick easy way to get
a complete list of all the products I've ordered that have not
| | 00:20 | yet been received. To find this report we go to Reports
on the menu bar, Purchases - Open Purchase Orders.
| | 00:28 | Now if we look up, again we have a
range of dates that we can pull in,
| | 00:31 | and it's already defaulting to All, meaning it wants to show
me all my open purchase reports regardless of when they where
| | 00:38 | created. You can filter this by different dates, but I would
recommend leaving it to All because you don't want to miss one
| | 00:43 | and by changing the date it could take a few out that are open.
| | 00:47 | You also have your option of just filling in
manually a From and a To. Show All or only Show Open.
| | 00:54 | Show All shows all purchase orders, regardless of
their status whether the items had been received or not.
| | 01:00 | Show Open is just that, it shows only the purchase
orders that you're still waiting to receive items on.
| | 01:06 | Sort By is set to default and if we click on the drop-down arrow
we see that we have different options to sort our columns by.
| | 01:11 | We're going to go ahead leave it on default. If we look in
Type, we can see that it shows us just our purchase orders.
| | 01:17 | We have the date that the purchase order was created.
| | 01:20 | We have the name of the vendor that we bought the
product from, the number on the purchase order,
| | 01:25 | and the delivery date that the product is expected.
It also shows us the total amount. We have our zoom lens,
| | 01:31 | so if at any time we want to drill down to the details of
this purchase order, we just double-click and it takes us to
| | 01:37 | the purchase order itself. We're can go ahead and close that
| | 01:41 | and it takes us back to our report. Now as I mentioned before,
there are many ways to view information in QuickBooks. We can
| | 01:46 | also go to the Vendor Center by clicking
on the Vendor Center icon located on the taskbar,
| | 01:51 | bringing up the Transactions tab, going to Purchase Orders,
and filtering the information by Open Purchase Orders.
| | 01:58 | This gives us the same information that was contained on the
report. We can still print a report from the screen by clicking
| | 02:03 | on the Print button.
| | 02:05 | You can also use the Open Purchase Orders to find a purchase
order that you need to cancel or close because you ended up
| | 02:11 | never receiving the items. By opening up the Purchase Order
| | 02:15 | and going to where the column says Close,
you can left-click once to place a checkmark,
| | 02:22 | and it will close the Purchase Order
| | 02:23 | and cancel it out. This may be needed if you've ordered
things and they decided to cancel that order and you have not
| | 02:30 | received the products. You can go ahead and go to
that Oen Purchase Order, close it out and save it.
| | 02:35 | It will ask if you want to change
the transaction, you say Yes,
| | 02:39 | and then it removes the report from
your Open Purchase Order list.
| | 02:42 | As I mentioned before there are many ways
you can look up information in QuickBooks.
| | 02:46 | You will need to find which method is
the right one for your business.
| | 02:49 | If you are using purchase orders, you will want to review your
Open Purchase Order report on a regular basis to ensure proper
| | 02:56 | tracking is occurring for the products you are ordering.
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|
|
16. Working with ReportsModifying a report| 00:00 | In the previous movies, we looked at a few of
the preset reports QuickBooks has to offer.
| | 00:05 | Now what if we need to slightly modify the
report to better fit our business needs?
| | 00:09 | QuickBooks allows us ways to customize the
report so we can taylor it to our own needs.
| | 00:15 | We will use the income statement which is called the Profit
and Loss Statement in QuickBooks as an example of how to
| | 00:20 | modify a report.
| | 00:22 | To find this, we go to Reports on the Menu bar,
| | 00:25 | Company & Financial,
| | 00:26 | Profit & Loss Standard.
| | 00:28 | And like we mentioned in the last chapter, to get the
exact same date you see here for your exercise files,
| | 00:34 | change the From to February 1st, 2008,
| | 00:37 | and the To to February 29th, 2008.
| | 00:40 | We covered in the prior chapter how to View
this report, but now we want to Modify the report.
| | 00:46 | The first I want to draw your attention to, however,
before we get started is in the upper left-hand corner here.
| | 00:51 | QuickBooks dates this report with the time and the date of
when you're actually viewing or if you were to print this
| | 00:57 | report it would print this information. It's also showing
you the Basis of the report meaning how is it calculating this
| | 01:03 | information and it's using an Accrual-Basis to
calculate the information you see on the report.
| | 01:08 | If we go to Modify Report,
| | 01:11 | one of the options that we have
| | 01:13 | is to change the report basis. Now, we talked about accrual
versus cash earlier on in the title, and if you remember
| | 01:20 | Accrual-Basis says you're going to report revenue and expenses at the
time of receipt of product and services versus when you're paid. The
| | 01:28 | report defaults to this accrual-basis for reporting.
But what if for tax purposes I need it to show cash?
| | 01:35 | Here we would select Cash
| | 01:37 | and say OK.
| | 01:38 | And notice the report changed. It's now showing us as a cash-
basis reporting meaning only showing things that I've been paid
| | 01:46 | on or that I've paid for.
| | 01:48 | Notice up here it's changed to Cash-Basis. So you can
see you have a couple different ways here you can show your
| | 01:54 | income and expenses dependent upon how it is that
you're reporting whether you're accrual or cash-basis.
| | 02:00 | If we go back to Modify Report
| | 02:03 | and reselect Accrual
| | 02:05 | and say OK,
| | 02:06 | it takes us back to our accrual-basis reporting.
| | 02:08 | Let's go back to our Modify Report button.
| | 02:11 | This time, what if we want to
see a prior period of information?
| | 02:15 | We're currently in the month of February,
| | 02:16 | but I want to see January's information in comparison to February.
| | 02:20 | If we look down at the bottom here, we had Add Subcolumns and we
have several choices. We want previous period. And we're going to
| | 02:27 | select Change
| | 02:29 | from the dollar standpoint,
| | 02:30 | and change the percentage. Meaning show me the dollar amount
that's changed from one period to another, and the percentage
| | 02:37 | change from one period to another.
We're going to click on OK,
| | 02:40 | and now if you look at report we have
more columns that have come into view.
| | 02:45 | We still have February but we also have the prior period of
January showing. We can see on each line item it shows those
| | 02:52 | our sales,
| | 02:53 | and it shows us our expenses.
| | 02:55 | Over here we have our Change column which is the
dollar amount of change between the two months.
| | 03:00 | So from February to January we went down 100% in our
sales of service or labor charges. We didn't have any in
| | 03:08 | February and we sold 260 in January.
| | 03:11 | Food sales, however, we increased by $2,295.80
| | 03:16 | or 43.5% change.
| | 03:19 | So you can see this report can show you history
| | 03:22 | from prior periods and lets you know if you're increasing or
decreasing in sales and expenses. Let's go back to our Modify
| | 03:29 | Report button.
| | 03:30 | We're going to take that off. We have our Filters tab,
| | 03:33 | which is where we can filter out
data or information from a report.
| | 03:37 | and we're going to cover the Filters tab right after we're
done talking about income statement by looking at Unpaid Bills.
| | 03:43 | We're going to go ahead and jump
over now to our Header and Footer tab,
| | 03:46 | and in here you can change information that shows on the
report in the formatting of it. We have our Company Name which
| | 03:52 | defaults and brings in our company name for us. We have the
Report Title. We're going to change it from profit and loss to
| | 03:59 | Income Statement.
| | 04:02 | The Subtitle, we're going to go ahead and put in a date range.
| | 04:05 | (Typing.)
| | 04:08 | The Date Prepared, you can change that to whatever you like.
| | 04:11 | Then you have Time Prepared, Report Basis. These are all the
things that were defaulting on the report earlier. Whether you
| | 04:17 | choose to show those or not are up
to you. It's just a matter of preference.
| | 04:20 | We're going to go to our Fonts and Numbers tab.
| | 04:22 | And in here again, you can change a
certain way that the report is formatted.
| | 04:26 | Show Negative Numbers
| | 04:28 | it defaults to normally,
| | 04:29 | which is what it's showing you an example of here.
| | 04:32 | You can also have it show parentheses
| | 04:34 | or with a trailing minus. It's up to you. This is just
a matter of preference. So if you had any negative numbers
| | 04:40 | showing on your report,
| | 04:41 | this is the way you could format that.
| | 04:44 | You can also choose to put color. Show All Numbers
| | 04:47 | Except Zeros and Without Sense. So
if you don't want to show the zeros,
| | 04:51 | the system will go ahead and round up to the nearest. And Without
Sense if it already has anything there, it's going to take it out.
| | 04:57 | As far as our columns, we can change
the font for these different labels.
| | 05:02 | So again, if you want to change
the way it looks as the default,
| | 05:05 | in here you can go ahead and choose Company Name.
| | 05:08 | It's giving you an example of what it currently looks like.
| | 05:11 | Click on Change Font
| | 05:12 | and it brings you into this window where
you can select different types of fonts,
| | 05:17 | different sizes, and different colors.
| | 05:20 | Say OK.
| | 05:21 | It's going to ask you if you want to change
all related fonts. We're going to say No,
| | 05:26 | and now we're going to go ahead and click on OK.
| | 05:29 | Notice all the changes took place in
our report. It took out the zeros
| | 05:33 | and it changed our company name.
| | 05:34 | It also gave us our date range that we had changed on the
report header and footer. So as you can see, there are
| | 05:39 | several different ways you can modify your report.
| | 05:42 | I want to take you to the Unpaid Bills Detail Report
| | 05:45 | to show you how to filter data which can be
helpful when looking for specific information.
| | 05:50 | We're going to go ahead and close
this report by clicking on the X.
| | 05:53 | QuickBooks is asking us if we want to Memorize
this report because we've made changes to it.
| | 05:57 | We're going to do that in our later movie. So we're
going to go ahead and say No to this right now.
| | 06:02 | To go to the Unpaid Bills Detail Report,
| | 06:04 | we go to Reports,
| | 06:06 | Vendors & Payables,
| | 06:07 | Unpaid Bills Detail.
| | 06:09 | And if you remember, when we looked at the Unpaid Bills Detail
Report in the previous chapter, we saw that you can view the
| | 06:15 | information by different dates.
| | 06:17 | But what if we wanted to filter the
data by the due date of the bill?
| | 06:22 | In other words run a report that only
shows unpaid bills through a certain date.
| | 06:26 | To do this, we're going to go to Modify Report,
| | 06:29 | Filters.
| | 06:30 | On the Filters tab you have Choose a Filter, and there's all
these options here on different things you can filter the
| | 06:36 | information by. And when they say filter they mean exactly
that. Take out if you will certain bits of information. I don't
| | 06:43 | want to see this. In this case, what we want to do is we want
to filter by the Due Date because I don't want to see all
| | 06:51 | the bills that are due which is what this report
contains. If you look it's showing me everything.
| | 06:55 | And I don't want to see everything. I
only want to see up to a certain date.
| | 06:59 | So right now it's selected to All.
| | 07:02 | We can put in up to this date and then it will modifiy
this report based on that date range I've provided.
| | 07:09 | We're going to go ahead and say OK
| | 07:12 | and then look what happens to our report.
| | 07:14 | It changes and filters out bad information. Now
| | 07:18 | up here, we still have Unpaid Bills Detail and as of February
29th, 2008. I want to modify this report a little further
| | 07:26 | so that I have a better description
of what this report is doing.
| | 07:30 | We're going to take out Detail,
| | 07:33 | and we're going to change As Of
| | 07:35 | and title it Through
| | 07:38 | January 20th, 2008.
| | 07:41 | So if we go back to our Filter tab
| | 07:44 | and select the date,
| | 07:45 | that is the filter we chose. So we're
making our header read the same.
| | 07:50 | We're going to say OK.
| | 07:51 | And now this tells me what I have filtered this information
by and notice the due date is only showing me bills
| | 07:58 | that are due through January 20th, 2008.
| | 08:01 | As you can see, you can customize reports to fit your needs.
| | 08:05 | This helps when you're looking for specific data
that may not be contained on the preset report.
| | 08:10 | At this point, if we close the report,
| | 08:13 | QuickBooks would not save our changes and revert
to the original format the next time we opened it.
| | 08:18 | In order to save the changes we made, we'll need to Memorize
the report which we're going to do in the next movie.
| | Collapse this transcript |
| Memorizing a report| 00:00 | In the previous movie we created this Custom Bills Due Report
| | 00:03 | that we want to save in QuickBooks
so that we can use it again later.
| | 00:07 | QuickBooks calls this memorizing a report
| | 00:09 | which is the same thing as saving it.
| | 00:12 | First I want to show you the preset memorize report list.
| | 00:16 | If we go to Menu bar,
| | 00:17 | select Reports,
| | 00:19 | and Memorize Reports,
| | 00:21 | We see the Memorize Report List.
| | 00:23 | It's the same thing that you see listed here individually
| | 00:26 | by the group or category name, and then the
individual reports kept under that category.
| | 00:31 | We're going to go ahead and click on the list
| | 00:33 | and it will bring us in to the Memorize Report List window.
| | 00:35 | If we click on the Header,
| | 00:37 | we can sort and filter the information that we
see on the screen in ascending or descending order
| | 00:42 | by simply left-clicking one time,
| | 00:44 | and it filters the data.
| | 00:45 | If we want to put the list back to it's normal default format,
| | 00:48 | We simply click on the diamond
| | 00:50 | and the list goes back to its regular format.
| | 00:53 | The names in bold are the Group Names
| | 00:55 | and the individual reports are
contained underneath those groups.
| | 00:59 | We want to go ahead and create our own group in QuickBooks but
we're going to save all of our own custom memorize reports to.
| | 01:05 | To do this, we go down where it says Memorize Reports.
| | 01:08 | We left-click once
| | 01:10 | and we're going to select New Group.
| | 01:12 | It brings us into this window, and we need to name our group.
| | 01:15 | We're going to call it Eat Cake
| | 01:18 | Customized Reports.
| | 01:20 | And we're going to say OK.
| | 01:22 | And notice now, that brings that into our Report List window.
| | 01:26 | We're going to go ahead and close this window,
| | 01:28 | and we still have our Unpaid Bills Report set up.
| | 01:31 | We haven't saved it yet.
| | 01:33 | To do this, we're going to go ahead
and click on the Memorize button
| | 01:37 | and it brings us into this Memorize Report window.
| | 01:39 | It's going to ask us to name the report
and it's bringing in the default title.
| | 01:44 | And Save and Memorize Report Group--
| | 01:46 | We select this checkbox, and as you can see the group we
just created is in our list along with all the other default
| | 01:52 | preset groups that QuickBooks had already created.
| | 01:54 | We're going to leave ours selected,
| | 01:56 | and we're going to say OK.
| | 01:58 | QuickBooks now memorized this report,
| | 02:00 | and if we close it
| | 02:02 | we go to Reports on the Menu bar,
| | 02:03 | Memorize Report List and there is our memorized report group
| | 02:07 | with our individual Unpaid Bills Report.
| | 02:09 | We select it
| | 02:10 | and there it comes back into play.
| | 02:12 | Now, at this point in time if we wanted to make changes to it,
| | 02:15 | we would click on Modify Report.
| | 02:16 | We're going to go to our Fonts & Numbers tab.
| | 02:19 | We're going to change the color on our Report Title.
| | 02:22 | Change font,
| | 02:23 | and we're going to leave it Arial.
| | 02:25 | We're going to go Bold Italic.
| | 02:27 | Change it the Size.
| | 02:28 | And we're going to change from navy
| | 02:30 | to a nice fuchsia.
| | 02:32 | We're going to say OK.
| | 02:33 | It's asking us if we want to change
all related fonts. We're going to say No.
| | 02:37 | We're going to say OK.
| | 02:39 | And now it's changed the color for our report title.
| | 02:41 | We're going to want to save this change
so we're going to rememorize the report.
| | 02:45 | We're going to click on our Memorize button again,
| | 02:48 | and this time it's going to ask us if we
want to Replace the existing memorize report.
| | 02:52 | We say OK
| | 02:53 | and it's now saved the changes.
| | 02:55 | If we close,
| | 02:56 | go back to Reports,
| | 02:58 | Memorize Reports.
| | 03:00 | We see our group that we created. We have our Unpaid Bills,
| | 03:03 | and there it saved it with our changes.
| | 03:05 | If you need to modify a preset report
| | 03:08 | and then want to save your changes,
| | 03:09 | remember to memorize it so it will be
available for you to use again in the future.
| | Collapse this transcript |
| Exporting reports to Excel| 00:00 | There may be times when you need to export
your data from QuickBooks into another program.
| | 00:04 | Perhaps you need to add financial information in
QuickBooks with other information from another program
| | 00:09 | or maybe you need to provide your sales rep's commission
| | 00:13 | and sales reports in electronic format so they
can get additional information regarding their sales.
| | 00:19 | QuickBooks has made it very easy for you to export reports.
| | 00:23 | You can choose to export them directly into Excel
| | 00:25 | or into a comma separated values file.
| | 00:28 | If we go to Export
| | 00:30 | and leftclick once,
| | 00:31 | it takes us into our Export window.
| | 00:33 | The Basic tab is up
| | 00:35 | and it defaults to a comma separated values file or CSV.
| | 00:39 | A comma separated values file
| | 00:41 | are simply text files.
| | 00:43 | Each field in the file is separated from the next
by a comma. Most spreadsheets support this format
| | 00:49 | although you can create and edit
CSV files with any text editor.
| | 00:53 | We're going to be working with an Excel workbook, so we're going to
select a new Excel workbook. Now notice by my selecting this, down here,
| | 01:00 | this came into view: Include a new worksheet in the workbook
that explains worksheet linking options. You can choose to
| | 01:07 | deselect this if you don't need this information from QuickBooks
but we're going to leave it selected so you can see what it is.
| | 01:14 | At this point were ready to export.
| | 01:16 | So we're going to go ahead and click on our Export button,
| | 01:19 | and that brings us right in to Microsoft Excel.
| | 01:22 | You can use Excel to reformat this information. If you need
help in understanding how to use Excel, you can check out the
| | 01:28 | Excel Essential Training title elsewhere
on the lynda.com training library.
| | 01:32 | If we go to the bottom of ourer workbook we can see we do have
two worksheets. The first one being QuickBooks Export Tips.
| | 01:39 | I just want to click on this for a moment to bring that worksheet
forward. This is the information that QuickBooks asked
| | 01:45 | us if we want to populate in Excel that helps explain some
things about linking worksheets and how the data came in. If
| | 01:52 | you don't need this information in the future, you can simply
deselect that in the Export window and then it won't bring
| | 01:58 | this information into Excel.
| | 01:59 | If we click back on the other sheet it shows us back our data.
| | 02:02 | Now, we're going to go back to QuickBooks for a moment and I want
to show you some advanced features for exporting data into Excel.
| | 02:11 | We're going to go ahead and click back on Export,
| | 02:14 | and this time we're going to select the Advanced tab.
| | 02:16 | Now, in here we have a lot of different options available
to us. The first thing it asks is Preserve the following
| | 02:22 | QuickBooks report format.
| | 02:24 | We have Fonts, Colors, Space between Columns and Row Height.
When QuickBooks exports into Excel sometimes it puts some odd
| | 02:32 | spacing in between columns that you may not want.
| | 02:35 | If you take the checkmark out here, it won't put those spacing
in between columns. Again, this is going to be a matter of
| | 02:41 | preference and depending on how you like to see the information.
We're going to go ahead and take it out just so you can see the
| | 02:46 | difference.
| | 02:47 | Down here we have turned on the following Excel features.
So this turns on certain things within Excel itself after you
| | 02:53 | bring in the data.
| | 02:55 | Auto Outline is a nice feature that I want to show you in
Excel that allows you to collapse and expand your rows of data
| | 03:02 | that you're bringing in.
| | 03:03 | Auto Filtering is also another nice feature in Excel that I
want to show you. It allows you to be able to filter data by
| | 03:08 | certain columns.
| | 03:10 | As far as our printing options go, Send header to Page Setup
in Excel means that the name of the report here is going
| | 03:17 | to go into the header information in Excel
and you won't actually see it on your screen.
| | 03:21 | We're going to go ahead and change that option so you
actually see the header information on the screen in Excel.
| | 03:27 | OK, now we're ready to export.
| | 03:29 | Alright, now this brings us back into Excel,
| | 03:32 | and you can see here, this in the data
filter I was referring to before.
| | 03:35 | By just left-clicking once it gives you an opportunity
to filter the information that is in this column.
| | 03:43 | Now our Auto Outline isn't turned on here.
| | 03:46 | To find that, you're going to go to Data on the Menu bar.
| | 03:49 | You're going to go into Group
| | 03:51 | and Auto Outline.
| | 03:53 | This is what gives you the option to be able to expand and
collapse rows of the data contained within Excel. Right now
| | 04:00 | everything is expanded. Now, we're going to go ahead
| | 04:04 | and click on the Minus sign and it collapses the row. Notice it's changed
to a Plus sign now. When you see the Plus sign it means there's more
| | 04:10 | information contained. And to view that information you simply left-
click on the Plus sign one time and it expands the row. Again, this
| | 04:17 | is nothing more than a way to view information. You may or may
not need this feature. But sometimes it can prove handy if
| | 04:23 | you have a very big profit and loss statement, or perhaps a very
large report with a lot a rows of information and you want to be able
| | 04:30 | to quickly and easily expand and collapse
| | 04:32 | those rows for viewing purposes.
| | 04:34 | You can also use Excel's charts and graphs to
create customized reports for your company's needs.
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| Printing reports| 00:00 | To print a report
| | 00:01 | have the report open and go to Print on the Menu bar.
| | 00:05 | The look of this Print window will vary depending
upon whether you are working on a Mac or PC,
| | 00:10 | and what type of print drivers you have.
| | 00:12 | You'll be able to choose where you want to print the document to,
| | 00:15 | whether you want to print it in landscape or portrait,
| | 00:18 | and the page range.
| | 00:19 | You can click on the Preview button
| | 00:21 | to view the report prior to printing.
| | 00:23 | If you're having troubles formatting
the report to print the way you like,
| | 00:27 | try exporting it to Excel first
| | 00:29 | reformatting it in Excel,
| | 00:31 | and then print.
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|
|
17. Additional InformationPaying sales tax| 00:00 | During the course of this title we looked at how you turned
the preference on and off to record sales tax. We saw how you
| | 00:06 | create a sales tax item
| | 00:08 | and how you apply sales tax to a customer's invoice.
| | 00:11 | Once you have collected sales tax, you will need to
know how to pay it to the appropriate government agency.
| | 00:17 | If we go to Vendors on the Menu bar,
| | 00:21 | select Sales Tax,
| | 00:22 | Manage Sales Tax. This takes us
into our Manage Sales Tax window.
| | 00:27 | And in here, think of this as basically a one-stop
shop for everything relating to sales tax.
| | 00:32 | The first option we have here is to
set up your sales tax preferences
| | 00:36 | which we learned earlier in the title.
| | 00:38 | The next step is to pay the tax.
| | 00:40 | You need to check with your tax agency to know when you're
required to pay your sales tax. Generally you are required to
| | 00:46 | pay either monthly,
| | 00:47 | quarterly, or annually.
| | 00:49 | The Sales Tax Liability Report provides the necessary
information you need to be able to pay your sales tax.
| | 00:56 | By selecting the Sales Tax Liability Report you can see that it's
going to give you information on your total sales for the month
| | 01:02 | of February 2008.
| | 01:04 | In addition to the total sales it's going to break out what makes
up those sales by nontaxable and taxable items. As you can see
| | 01:12 | here there were no nontaxable sales for the month of February.
| | 01:15 | We did have all of our sales as taxable sales for the month
of February and it also shows us what our current tax rate is.
| | 01:23 | Finally it shows us the amount of tax
that we collected which is $574.46.
| | 01:28 | And the last column shows us the sales tax payable as of
February 29, 2008. The reason these two amounts are different is
| | 01:37 | because tax collected is for just the month of February. That
is the amount of time that this report is calculating. However,
| | 01:44 | the Sales Tax Payable As Of means everything up to this point,
and we have not paid for January 2008 sales tax yet. So it's
| | 01:52 | including that amount into our February's dollars
| | 01:56 | to give us a total owed of $963.27.
| | 01:59 | I recommend you print a copy of this report to keep with the
vendor check stub and the tax form you will be completing.
| | 02:06 | Once we've had a chance review the report and print
it, we're going to go ahead and close the window.
| | 02:11 | And now it's time to pay our tax.
| | 02:14 | In the Pay Sales Tax window,
| | 02:16 | if you look here at the top, the first option you have is
Choose the checking account that you want to pay the sales tax
| | 02:21 | from. We have the dropdown arrow so we know that we can look in
here and see if we have additional accounts we wanted to pick from.
| | 02:28 | The next is the Check Date. The system always defaults to
today's date. You could change this Check Date by just simply
| | 02:34 | clicking on the calendar.
| | 02:37 | Show Sales Tax Due Through is the field that shows
the date through which you're paying your sales tax.
| | 02:42 | This is defaulting to February 29, 2008, however, this
includes both January and February as we can see here. We only
| | 02:50 | want to pay through January so we're going to change this date
to January 31, 2008. Once I click in the body you notice that the
| | 02:57 | amount changes. This is now the total
amount due just for January 2008.
| | 03:02 | Starting Check Number is grayed out and it says To Print and
that is because the To Be Printed checkbox has been selected.
| | 03:09 | If we deselected that, the autofill would already be completed
and QuickBooks would think that we had manually printed this check.
| | 03:15 | We however, do want the system to print
it so we're going to leave that selected.
| | 03:20 | In the body of the window you can see that we only have one
tax agency available for paying. Now, if your company has
| | 03:27 | multiple tax agencies that you owed multiple tax to, there would
be a list showing up in this window. And at this point you could
| | 03:34 | select to pay all of them, one of them, or just a
couple at a time. To Pay All Tax by clicking that
| | 03:40 | would put a checkmark next to anyone listed in this window.
| | 03:43 | Clear Selections, of course, would then remove that.
| | 03:46 | We want to go ahead and pay just the one tax
agency so we're going to click on All Tax.
| | 03:51 | And finally, you have an Adjust option.
| | 03:55 | If when you had reviewed your report, you noticed that there
was a mistake--you either over-collected or under-collected
| | 04:01 | sales tax--and you needed to adjust the amount,
| | 04:04 | you can come into this window and
make an adjustment to your account.
| | 04:09 | Now the adjustment account you need to pick you would have
to define yourself. You have a Sales Tax Payable Account that is
| | 04:14 | listed as a liability.
| | 04:16 | However, you cannot post the adjustment to this account, you
either have to create an Expense Account or an Income Account
| | 04:22 | and QuickBooks gives it's recommendation as far as which type of
account it thinks you should use dependent upon whether you want to
| | 04:27 | increase or decrease the tax collected.
| | 04:30 | I recommend that you speak with your CPA or accountant.
| | 04:35 | In the adjustment section you would simply choose whether
you want to increase or reduce the tax and fill in the amount.
| | 04:41 | In the Memo field you could type in the
information as to why you're adjusting the tax.
| | 04:48 | Back here in our window we can see that we selected Anywhere
Sales Tax. Our vendor is State Tax Agency. The amount due is
| | 04:56 | $388.81. We're paying through January 31st of 2008 and
we will be printing our check later. At this point we're
| | 05:04 | good to go and we're going to say OK.
| | 05:07 | QuickBooks now has saved that information
and then we can go to File on our Menu bar,
| | 05:13 | Print Forms,
| | 05:14 | Checks and it brings us into our Check window, and we can see that
our check here for the tax agency is just waiting for us to go
| | 05:21 | ahead and print it.
| | 05:22 | One final note I want to show you in this window is under
Related Tasks. Again, QuickBooks has made this a one-stop
| | 05:29 | shop to manage all your sales tax related tasks. And so down
in here you have an option to be able to view your sales tax
| | 05:36 | items that you've created,
| | 05:38 | you have another link that takes you to the Sales
Tax Code List, and to adjust your sales tax due.
| | 05:43 | This a good place to manage your sales tax. You can also by
going to Vendor's Sales Tax see the individual tasks listed
| | 05:50 | right here in the dropdown menu. Either way it's up to you.
| | 05:54 | Just remember, if you collect sales tax for the items that
you sell, be sure to know when you are required to submit
| | 05:59 | payment to your tax agency. Paying sales tax late
to the government can carry serious repercussions.
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| Performing a manual inventory adjustment| 00:00 | If you track inventory in QuickBooks there will come
a time when you need to manually adjust your inventory.
| | 00:06 | If you're in the retail business,
you may have heard of the term shrink.
| | 00:10 | This is when the item grows a pair legs and walks off,
| | 00:13 | or as other people like to call it, theft.
| | 00:15 | Another reason you may need to adjust your inventory is you
simply made a mistake when you received the items into QuickBooks.
| | 00:22 | To manually adjust your inventory, go to Vendors
| | 00:25 | on the Menu bar,
| | 00:27 | Inventory Activities,
| | 00:29 | Adjust Quantity Value On Hand.
| | 00:32 | In this window we first start with the Adjustment Date
| | 00:34 | and QuickBooks always defaults to today's date. You can
simply change this by clicking on the calendar and choosing
| | 00:40 | another date. We're going to go ahead
| | 00:42 | and leave it as the default. Next we add a Reference Number and
QuickBooks auto-populates this number for us. We can click in the field
| | 00:49 | similar to Invoices and Sales Receipts and type in whatever
number we like. And then QuickBooks will pick up from this
| | 00:54 | point, however, we're going to go
ahead and leave it with the default.
| | 00:58 | The Adjustment Account is the account you need to create in
QuickBooks for the dollar value of whatever adjustment you're
| | 01:03 | making to your inventory. In other words I'm going to change the
value of my inventory and I need to show that money somewhere.
| | 01:09 | You're either going to create an
Expense Account or an Income Account.
| | 01:13 | QuickBooks recommends that if you're going to show a loss
meaning I'm going to reduce my inventory and the value of it, I
| | 01:19 | expense that out.
| | 01:21 | And if I'm going to show a gain or increase the value of my inventory,
I use an Income Account. For today's exercise we're going to
| | 01:27 | go ahead and code an Expense Account because I think very rarely
are you going to find that you gain inventory. Most of the time is
| | 01:33 | you're going to be showing it as a loss.
| | 01:36 | To do this we go ahead and Add a New Account.
We're going to change our Account Type to Expense.
| | 01:42 | And we're going to name our account Inventory Adjustment.
| | 01:49 | In our Description we're going to call it shrink,
| | 01:51 | comma, theft.
| | 01:54 | We're going to Save & Close.
| | 01:57 | And there you see it in window.
| | 01:59 | In the body it's going to show all items we have created that are
inventory items, and as you can see we have two. We have coffee
| | 02:06 | mugs and espresso machines. To the right it gives us our Current
Quantity, so right now we have 99 coffee mugs and we have
| | 02:13 | 29 espresso machines. However, I know that we only actually
have 90 coffee mugs, and we only have 25 espresso machines.
| | 02:22 | And the reason I know this is that I did a physical quantity
count of everything that was on my shelf and that's the
| | 02:28 | number that came up. So some-
| | 02:29 | where along the lines we lost nine coffee mugs,
| | 02:32 | and we lost four espresso machines.
| | 02:35 | If you notice to the right now it's giving me my difference
in quantity. So QuickBooks is calculating based on the new
| | 02:41 | quantity I've put in and reducing my value of my inventory.
Towards the bottom it gives me my Dollar Adjustment Value
| | 02:48 | so we're going to take a loss of $145 on these items.
| | 02:53 | If we go down to this corner here we see Value Adjustment and
there's a checkbox. I'm going to go ahead and select it and notice
| | 02:59 | what it's changed up here.
| | 03:01 | Gone is my Quantity Difference and instead I have Current
Value and New Value. So QuickBooks is now showing me my
| | 03:08 | dollar value. Here was the $495 associated with 99
coffee mugs and $725 associated with 29 espresso machines.
| | 03:19 | My new value based on my new quantities is $450 for my coffee
mugs and $625 for my espresso machines. Notice my Total
| | 03:27 | Value didn't change because this is
just showing me additional information, not
| | 03:31 | anything new.
| | 03:33 | If I take out the checkmark
| | 03:36 | it just now gives me my quantities instead of my values,
| | 03:39 | and my Total Value Adjustment still remains the same. So it
just depends on how you like to see the information. You can
| | 03:44 | either view it as Quantity
| | 03:46 | or instead look at the Value of the
inventory. Either way it's up to you.
| | 03:51 | We're going to go ahead and leave it as Quantity.
| | 03:53 | The last thing you want to do in here is probably include
a Memo as to why you're adjusting your inventory. I always
| | 03:59 | recommend this because six months down the road you're not going
to remember why you changed it and then you're going to be asking
| | 04:05 | yourself, "Why the heck did I do this?"
So we're just going to put in a note.
| | 04:09 | (Typing.)
| | 04:19 | We put in a note that says that
we're adjusting this due to theft.
| | 04:23 | We're going to go ahead and Save & Close.
| | 04:26 | And now QuickBooks has updated our inventory.
We can check this by going to List, Item List.
| | 04:32 | And in here we can see our coffee mugs and espresso machines,
and if we look to the right we can see now our Quantity On Hand
| | 04:38 | is 90 and 25. So QuickBooks went ahead and reduced our
inventory for us and the last place we can check is Lists and
| | 04:46 | Chart of Accounts.
| | 04:48 | And in here we should have our Expense Account that we created
which is our Inventory Adjustment Account. And if we double-
| | 04:54 | click on it, it takes us into this quick report and it
shows us our Inventory Adjustment, the Date we did it,
| | 05:00 | the Number.
| | 05:01 | We have our zoom lens so we know if we double-click here,
we can zero down to the actual transaction so we can see the
| | 05:07 | details of what it is that we did.
| | 05:10 | So if you need to manually adjust your inventory, make sure you
have the correct quantity before you make the adjustment. You
| | 05:16 | also make sure that you make a memo to yourself so
you can remember later why you made the adjustment.
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|
18. PitfallsUnderstanding memorized transactions| 00:01 | I want to show you a handy feature
QuickBooks offers called Memorize Transactions.
| | 00:05 | However, I have included it in the pitfalls section of this title
because you can get yourself into a lot of trouble using them.
| | 00:12 | To prevent this from happening, I will show you how they
work and then I will show you the down side to using them.
| | 00:18 | Memorize Transactions can be a great tool if you have a
reoccurring event such as a monthly bill that is always the
| | 00:24 | same amount, and perhaps you even have it set up as an auto-
deduct from your checking account. Or you may have monthly customer
| | 00:30 | invoices you want to automate billing for.
| | 00:34 | To create a Memorized Transaction, let's first go to the Customer
Center and we're going to select an invoice that we want to
| | 00:40 | memorize as a reoccurring billing for one of our clients. We're
going to use the Hazelnut Hotel. We billed them in February for
| | 00:47 | this muffin order and they've since told us that they
want to make this a reoccurring event every Monday.
| | 00:53 | So this sale we want to memorize this Invoice so that we
can bill them every Monday automatically for muffin delivery
| | 00:59 | that we're going to do.
| | 01:01 | OK, it's already all set up.
So we go to Edit on the Menu bar
| | 01:05 | and we select Memorize Invoice.
| | 01:08 | Now, this window will appear. The first thing you have is you Name
this transaction and it pulls in the client name as a default. If
| | 01:15 | you had multiple invoices for this client, different types
of transactions, perhaps they had not only this muffin
| | 01:21 | order but there was another type of order that they wanted it
reoccurring on a regular basis, then I would suggest that you
| | 01:27 | rename this and give it a specific name just for this order.
For this exercise we're going to leave it as the default
| | 01:33 | of just the Hazelnut Hotel.
| | 01:35 | You have an option here of having this remind me.
| | 01:38 | And what that says to the system is all I want you to do
is give me a little reminder that we need to bill this client.
| | 01:44 | You would set the frequency over here to the right as to how
often you wanted--daily, weekly, every two weeks, and so on forth.
| | 01:51 | And then the next time you wanted to be reminded. All this does
is pop up a little reminder window. Next time you launch the program
| | 01:57 | that says, "OK, you have to bill the Hazelnut
Hotel." It doesn't post anything in the system.
| | 02:03 | The other option is to Automatically Enter.
| | 02:06 | And Automatically Enter is that automation that you're
looking for the system to do. You select that and then on the
| | 02:12 | frequency, we're going to choose Weekly.
| | 02:15 | The next date we're going to set is for next Monday.
| | 02:18 | The Number of Remaining would be used if I was only going to
create so many invoices for this client. Like let's say that they
| | 02:24 | said we only want to do this for ten more weeks and then I'm done.
| | 02:27 | We don't have that right now, it's just kind of an
open-ended order, so we're going to leave this blank.
| | 02:33 | Days in Advance to Enter would be if I needed to create
this invoice so many days before the next due date.
| | 02:39 | In this case we don't, so we're going to leave that as zero.
| | 02:43 | We're also set up so we're going to say OK.
| | 02:46 | Alright, now I can go and close my Invoice
| | 02:50 | and to see my Memorized Transaction
we're going to go to List on the Menu bar
| | 02:53 | and we're going to bring up our Memorized Transactions list.
| | 02:56 | As you can see and hear, now it's
listed, the Transaction Name Hazelnut Hotel.
| | 03:01 | And it shows us the Type of transaction which is and Invoice.
It shows us the Source Account which is Accounts Receivable
| | 03:07 | because this is an invoice billing.
| | 03:09 | It shows us the Amount of our invoice, our Frequency which
is weekly, and that the auto-checkmark is in place meaning that
| | 03:15 | this is going to auto-post on the next date of March 3rd.
| | 03:20 | OK, now let's take a look if we want
to Create a Memorized Transaction that's a bill.
| | 03:25 | We're going to go ahead and leave our list open
and we're going to bring up our Vendor Center.
| | 03:29 | In here we're going to select Hummingbird Auto Incorporated because
we have a car that we leased for our company from them. And this car
| | 03:36 | payment is automatically deducted from our account every month.
So we have kind of a reoccurring billing set up with them that I
| | 03:42 | want to go ahead and memorize so that the
system will automatically take it out for me.
| | 03:47 | This was the last bill we posted in
February so we're going to open it up.
| | 03:51 | And just like when we did the invoice,
we go to Edit in on the Menu bar,
| | 03:54 | Memorize Bill.
| | 03:56 | We come back into our Memorize Transaction window, and this
time we're going to rename this so you can get an idea of other
| | 04:02 | options you have. And this will just help you down the road
if you have a lot of Memorized Transactions, perhaps know what
| | 04:08 | they're for. In this case we're going to call it Auto Lease Payment.
| | 04:14 | Again, we have the same options as far as whether I just want
the system to Remind Me and not post anything or whether I
| | 04:21 | want it to Automatically Enter. And since this
is an auto-deduction out of my checking account
| | 04:26 | I do in fact want it to actually enter it automatically
into QuickBooks. How Often is going to be monthly.
| | 04:32 | The Next Date--this bill was on the first, so the Next Date is
going to be on the first of March. Numbered of Remaining--this bill
| | 04:40 | will end eventually, it's after 15 more months. We're going to
be done with the lease payment so that's where I want it to
| | 04:46 | end. And again, Days in Advance would be used if I wanted to put
this bill in a number of days before it's actually due. So if
| | 04:54 | this was not an auto-withdrawal from my checking account,
I could enter perhaps ten days before the due date. QuickBooks
| | 05:00 | would populate this into my Unpaid Bills List.
| | 05:02 | And then when I go to run that,
| | 05:05 | it will show up.
| | 05:06 | But since we're going to just go ahead and leave it as the first,
we're not going to enter any days in advance here, we're just going to
| | 05:12 | leave it as the first as the next day to enter.
| | 05:15 | We're going to say OK.
| | 05:17 | and now we're going to close our Bill window.
| | 05:21 | We're going to go ahead and bring
back up our Memorize Transaction List.
| | 05:24 | And here we see now that are our auto
lease payment is under the Type as Bill,
| | 05:29 | the Source Account is Accounts Payable,
| | 05:32 | our Amount is $500,
| | 05:34 | Frequency is monthly,
| | 05:36 | and the checkmark is in for auto so it's automatically going
to post the bill for us, and the Next Date is on the first.
| | 05:43 | Now if I wanted to Edit one of these transactions,
| | 05:46 | I would select the transaction by highlighting
it, left-clicking on it one time,
| | 05:50 | go to Edit on the Menu bar,
| | 05:52 | and Edit Memorize Transaction. It would take me right back into
my Memorize Transaction window, and in here I can change any of
| | 05:59 | this information that I needed. Such as, if I
wanted to give more information to the name,
| | 06:03 | you could say Hazelnut Hotel Muffins
| | 06:07 | and say OK.
| | 06:09 | And then it made our changes and saved it. If I wanted to delete
one of these, I don't need it anymore, we're done with the
| | 06:15 | memorized transaction, I don't want this to reoccur and post
any longer. Again, we go to the transaction and we select it.
| | 06:24 | We then go to Edit and we choose Delete Memorized Transaction.
This is going to ask me if I'm sure I want to delete this,
| | 06:30 | I say OK,
| | 06:32 | and the transaction is gone.
| | 06:34 | That's all the good stuff that Memorize Transactions
does. It can create reoccurring events for you. You can
| | 06:40 | automate it in the system so you don't have to remember to post
it. The system will automatically do it for you. This can be
| | 06:46 | really helpful if you have a lot of transactions that are
reoccurring. I myself have used this for companies I've worked
| | 06:52 | for where we do billing, automated billing for our clients
and we have hundreds of clients we bill every month. We create a
| | 06:59 | Memorized Transaction List and the system then will automatically
run these and post them for us so we don't have to re-
| | 07:04 | enter and retype all this information manually.
| | 07:07 | There is a big downside to Memorize Transaction.
That's what I want to tell you about.
| | 07:12 | There are two things you have to be careful of.
| | 07:15 | Number one:
| | 07:16 | you have to remember that you've memorized the transaction.
| | 07:19 | Now,
| | 07:20 | I know this may sound silly, but it's true. I've seen it time
and time again where especially if there's several people
| | 07:27 | working in the program,
| | 07:28 | and one person has perhaps memorized some
transactions and forgot to tell the other person.
| | 07:35 | The other person gets the bill or perhaps the client invoice.
They don't know there's been a Memorized Transaction and
| | 07:41 | they post the bill.
| | 07:42 | Then the Memorized Transaction comes intoe play and also gets
posted so now you've double entered. This can occur frequently. If
| | 07:51 | it's not caught, you'll end up having a lot of additional expense
that shouldn't be on the expense line and you'll have to credit
| | 07:56 | off or void off later. You'll also end up overbilling your
clients which could make some people upset and you want to
| | 08:02 | avoid. So the first thing you have to really watch
out for is just to know that you've created the
| | 08:08 | transaction. You have to let everyone in the office know
if you have multiple people working in the program.
| | 08:12 | Or you, yourself need to set yourself some type of
reminder until you get used to working with them.
| | 08:18 | The second thing you have to be careful of is how to edit a
memorized transaction. People make mistakes all the time in the
| | 08:25 | way they go about editing this and
accidentally end up creating a duplicate bill.
| | 08:30 | Let me show you what I mean. If this was
incorrect, let's say we had the wrong amount.
| | 08:36 | If you saw before we went Edit, Edit a Memorized Transaction,
and notice in here it doesn't give you any opportunity to
| | 08:42 | change the amount of this invoice. To change the amount
of this invoice, we need to double-click and open it.
| | 08:48 | And in here we would actually make our changes. So let's say
instead of 200, they change their mind and they only actually
| | 08:55 | want 100 of each. So we're going to go through
and we're going to just make these be 100 of each.
| | 09:02 | (Typing.)
| | 09:04 | OK, which changes our amount of our billing. Now at this point,
generally people would say, "OK I'm done. I'm going to Save
| | 09:11 | & Close it." By clicking on Save & Close, you are actually posting
| | 09:16 | the bill.
| | 09:18 | And now I just changed
| | 09:20 | my Next Due. I didn't edit my Memorize Transaction. Notice
the amount didn't hold. It's still $2145. I go wait a minute,
| | 09:28 | I just changed that.
| | 09:30 | No you didn't, you just posted an Invoice. If you want to edit
the Memorized Transaction, when you open it up and make your changes,
| | 09:46 | instead of hitting Save & Close, you actually have
to go back to the Menu bar and select Edit,
| | 09:51 | Memorize Invoice.
| | 09:53 | And now in here it's going to ask you if you want to
replace and you say Yes, I want to replace the previous one.
| | 10:00 | Then you don't save this. You just close it. It'll
ask you if you want to record it. You say No.
| | 10:07 | And now you've actually edited or changed your Memorized
Transaction without posting an invoice. This is a common mistake
| | 10:15 | people make when they're trying to edit an amount on something
that they memorize. They accidentally end up reposting
| | 10:21 | the bill and then saving the Memorized Transaction on top of that.
As they go in and keep trying to correct the transaction, they
| | 10:27 | keep reposting the same invoice over and over and over again.
So it's just another area you have to be really careful in. As
| | 10:34 | long as you understand and know what you're doing,
you won't have any problems with Memorize
| | 10:37 | Transactions. But if you're not familiar or used to working with
them, I just want you to be really careful because it's an easy way
| | 10:44 | to duplicate things in the system.
| | 10:46 | So again, remember when you want to create
one, open up the original transaction,
| | 10:51 | you go to Edit on the Menu bar, Memorize the item.
If you want edit it, it's going to be the same steps
| | 10:58 | and then you're just going to be replacing.
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| Understanding closing periods| 00:00 | Another feature I want to show you in
QuickBooks is how to set your Closing Date.
| | 00:05 | The reason I have this categorized in the pitfalls section of
this title is not so much that the feature itself is a pitfall.
| | 00:11 | It's that because no one really uses it and that's the
pitfall. You should be using Closing Dates. First let me
| | 00:17 | explain what they are.
| | 00:19 | In accounting we have monthly transactions that are occurring.
| | 00:23 | When you record those transactions, generally you're looking at that
period of time for information on your finances. And some people
| | 00:30 | review that information monthly, some people review that
information quarterly, some people review that information annually.
| | 00:36 | You're kind of forced to look at that information at
least once a year at minimum for your tax purposes.
| | 00:42 | Once you file your taxes and you're starting your new fiscal
year, you don't want to affect the data from the year
| | 00:48 | before. And if you have periods that are shorter than annually,
let's say that you're reviewing financial statements
| | 00:54 | quarterly, or you're reviewing your financial statements monthly.
Once you've reviewed that information, you don't want to change
| | 01:01 | that historical data anymore at that point. You should be
closing that period or closing that date. And what that does is it
| | 01:08 | prevents you from affecting that
data. This is important in account-
| | 01:12 | ing because the tax agencies really frown upon people changing
historical data once they've filed the information with them.
| | 01:20 | To set a closing period in QuickBooks,
| | 01:24 | we go to Company on the Menu bar,
| | 01:26 | and we choose Set Closing Date.
| | 01:28 | In here it brings us to our Company Preferences window.
| | 01:32 | And right here at the bottom we have Closing Date, date through
which books are closed and it's not set yet. Now again, depending on
| | 01:39 | your business needs, you may look
at setting a closing date every month.
| | 01:43 | So that for the month of February, once we're done with it and
we've reviewed everything, and we've done our bank reconciliations,
| | 01:50 | and checked our income statement, and checked our balance sheet and
it all looks good, we're going to close the period and we're going to
| | 01:55 | start March. And then we're not going
to want to post into February anymore.
| | 02:00 | And then in March, once we're done with March we would do the same
thing, and it would be kind of just keep a rolling of this closing
| | 02:06 | of the period. Or perhaps for your business needs, you only
want to do that on a quarterly basis. So you leave a whole three
| | 02:12 | months open of things that you can edit and change and at the
end of that quarter you're going to set a closing date. Or then for
| | 02:19 | some it may be annually. Whatever it may be, you're going to
want to come in here to do this at minimum on an annualized basis.
| | 02:26 | We set Date and Password and it brings us into this window.
| | 02:30 | Now, the first thing it's pointing to is Set the Closing Date. There's a
lot of information in here. What it's telling you is that once you set
| | 02:37 | the Closing Date, if you don't set a password and give levels
of protection, even though you've set a Closing Date anyone
| | 02:44 | can still go back later and make changes. Without having a
password in place, it still won't prevent anyone from making a
| | 02:51 | change. It will warn them
| | 02:53 | and we'll take a look at that. It'll say, "You know you're going to be
posting something into a closed period. Are you sure you want to do that?"
| | 02:59 | But they still have the option. If you set a password here,
then only the people with the password can then still go back
| | 03:07 | and make changes and close periods.
| | 03:09 | So it's up to you and how you run your business. I would
strongly recommend creating passwords and levels. We don't show
| | 03:15 | this in this class. In the Easy Step Interview you have the
option to create an admin password. We didn't do it for this
| | 03:21 | title but use can certainly go in and create that for your own
company. For us, we're going to set a closing date of 01, 31, 08.
| | 03:29 | We're going to say OK
| | 03:31 | and this is QuickBooks just flagging us to say, "You don't have
an admin password set up. You sure you want to do that? We really do
| | 03:38 | recommend it." We're going to say No at this time.
| | 03:41 | And notice now here, we have a date set.
| | 03:44 | At any time we can come back and we can remodify this date,
and keep changing it as we work through the year. For right
| | 03:50 | now, we're going to leave it for January 31st, 2008.
| | 03:54 | We'll say OK.
| | 03:56 | Now, just for grins and giggles, let's say we want
to try and Create an Invoice that we backdate.
| | 04:01 | So we're going to go New Transactions, Invoices.
| | 04:04 | We're going to use Amy Apple and notice the date defaulted to today's
date. We're going to backdate this into January. We're going to pick
| | 04:11 | the 15th.
| | 04:13 | We're going to select to sell her a coffee mug.
| | 04:16 | Quantity is going to be one.
| | 04:18 | And now we're going to Save & Close. And here's the message we
get. It says, "You're affecting a period that's been closed,"
| | 04:25 | and, "Are you sure you want to do that?" At this point we
could select Yes and it would backdate it in the 15th. And the
| | 04:32 | reason for that is we have no password set up to prevent
anyone from just going in and still making the change. So it's
| | 04:39 | great we set the closing date, however, it's not really the
security we're looking for without the passwords. So you're
| | 04:46 | probably going to want to institute the passwords if you're
going to in fact use the closing date for your business.
| | 04:52 | We're going to go ahead and say No
and we're going to close this transaction.
| | 04:56 | So remember, I strongly recommend using closing dates. I
think it's a good tool to prevent you changing historical
| | 05:04 | financial information in your accounting system. At minimum
I would look at doing it on an annualized basis and at
| | 05:11 | best, monthly. Anything else between is up to you. You can always
talk to your CPA or accountant to get their input and advice on
| | 05:18 | what they would recommend. You can always go into it and change the
closing date by just coming back here at your Company Preferences,
| | 05:24 | Set Date and Password. So if
| | 05:26 | there's ever a time you need to
change this date, it's not a problem.
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ConclusionUsing additional resources| 00:00 | If you have additional questions regarding QuickBooks, you have
several resources available to you within the QuickBooks program.
| | 00:07 | If we go to Help on the Menu bar and go to QuickBooks Help,
| | 00:11 | relevant topics appear on the active window.
| | 00:14 | You can also click on the Search tab and type in
any topic you'd like to search on in QuickBooks.
| | 00:19 | Now we're going to go ahead and close Help and
| | 00:21 | we're going to go back to Help on the Menu bar.
| | 00:24 | Another option would be the QuickBooks User Community.
| | 00:29 | In here you can narrow your search by selecting
a specific task that you may be looking for.
| | 00:35 | Or possibly a product and service that you have questions on.
| | 00:39 | Or perhaps the type of business.
| | 00:42 | You can also select Frequently Asked Questions.
| | 00:45 | And in here you'll have a list of frequently
asked questions on QuickBooks Pro Tasks.
| | 00:52 | Another option on the Help menu
| | 00:53 | would be our support.
| | 00:55 | In here you can find answers to technical questions such as: if
you encounter an issue when installing the program or downloading,
| | 01:02 | questions on using QuickBooks in a multiuser environment,
| | 01:05 | or perhaps restoring a company backup file.
| | 01:12 | Lastly in Help,
| | 01:14 | we can find a local expert.
| | 01:17 | If you'd like to speak with a certified QuickBooks expert,
you can search here and QuickBooks will let you know if
| | 01:22 | there's an expert living in your area.
| | 01:24 | So as you can see, if you have questions about QuickBooks
you have many resources readily available to you.
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| Goodbye| 00:00 | If you're watching this goodbye, hopefully it means you've
watched the whole title. If so, you should be well prepared to
| | 00:06 | start using QuickBooks Pro 2008.
| | 00:09 | I want to thank you for joining me today and
I hope you enjoyed learning about QuickBooks Pro.
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