In this video, author Jess Stratton shows how to create and set up a brand-new company file using fictional data in QuickBooks 2017.
- [Instructor] QuickBooks makes it easy to get started by walking you through many of the first crucial steps to setting up your company file, and then you can be off and running. You can create a new company file by clicking Create New Company in the No Company Open screen or at any time, click File and select New Company. From here, click the blue Start Setup button. The first thing you can do is enter your email address. You don't have to, but it's useful if you already have an Intuit account. Maybe you purchased QuickBooks from their website.
This way, when you create a new company, it can automatically pre-populate all your information. In this case, however, I'll click Skip. It's not necessary. Now we can tell QuickBooks about the business. The only information I have to put in here are the ones with the red asterisk. I'll start by putting the business name in first. For this course, I'll be using the fictional company Wisdom Pet Medicine. Now I can choose an industry. I can either start typing or I can click the blue Help Me Choose button.
The reason you'd want to select an industry from QuickBooks is so that QuickBooks can automatically set the preferences and the accounts based on what type of business you have. You can scroll through the list. It's okay if your business isn't listed here, and it's also okay if your business changes or if you don't get it right the first time. You can always change the preferences and you can always remove or add accounts, so the decision that you make here is absolutely not crucial to the success of your business. In fact, if you don't see your industry here at all, you can scroll all the way to the bottom and choose a general product-based business or a general service-based business.
If your business does both products and services, it's okay. In this case, this is what happens for Wisdom Pet Medicine. I'm going to choose a general service-based business. I can see the accounts that are listed on the right-hand side that it's going to create by default for me. We'll be creating many more over this course. I'll click the blue OK button and I'm brought back to the screen. Now we can choose a business type. Are you a corporation or an LLC? You may already have an employer identification number and you can put that in here.
This would separate the business from your own identity. And the business has its own tax forms, while you keep your personal tax income to yourself. Or maybe you're a sole proprietorship in which you conduct business as a DBA, which stands for Doing Business As. The business taxes in this case are filed using your Social Security number. This way, you file your personal taxes and you fill out a tax form itemizing your business expenses, then you add in your business income profit as additional income while doing your personal income tax.
It's up to you whether you want to put your tax ID into QuickBooks. You don't have to. In this case, I'll choose a sole proprietorship. If you're not sure which to pick, I do recommend watching the course Setting Up Your Small Business as a Legal Entity with Dana Robinson. You can also change this later. For example, your business can start out as a sole proprietorship and as it grows you can change it to a corporation or an LLC. Finally, it's up to you whether or not you want to put your business address and your phone number in here.
In this case I'm going to. Click the blue Create Company button at the bottom right-hand side when you're all set. In just a few moments the company file will be created and now you're brought to a screen where you can learn some more about services that QuickBooks offers, like payroll and ordering checks. In this case, I'll click the blue Start Working button on the bottom right-hand side. This is going to take me directly to my homepage. To maximize the screen view I'll click the maximize button on the top right-hand side of the screen, and I'm also going to collapse the navigation pane by clicking the arrow on the top right-hand side of the pane.
Now that your company file is all set up, up next I'm going to show you how to back it up.
- Setting up a new company file
- Working with the chart of accounts
- Adding bank accounts and credit cards
- Adding service or inventory items
- Setting up sales tax
- Adding customer, vendor, and employee profiles
- Billing customers
- Receiving payments
- Recording deposits
- Handling refunds and credits
- Paying employees
- Sharing QuickBooks with others
- Running reports