Learning Manual

Mastering QuickBooks© Learning Manual

Copyright
Copyright© 2022 by National Real World Training, Inc. All rights reserved. Screen shots© Intuit

Inc. All rights reserved. This publication, or any part thereof, may not be reproduced or

transmitted in any form or by any means, electronic or mechanical, including photocopying,

recording, storage in an information retrieval system, or otherwise, without the prior written

permission of National Real World Training, Inc.

Trademark Acknowledgements
Intuit, QuickBooks, QuickBooks Pro, TurboTax, ProSeries, Lacerte, and QuickZoom are

registered trademarks of Intuit Inc. Windows, Microsoft, Excel, and Outlook are registered

trademarks of Microsoft Corporation. Other brand names and product names are trademarks

or registered trademarks of their respective holders.

Disclaimer
These training materials are provided without any warranty whatsoever, including, but not

limited to, the implied warranties of merchantability or fitness for a particular purpose. All

names of persons or companies in this manual are fictitious unless otherwise Noted.

Version 9.24.22

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www.quickbookstraining.com
 Day 1 Agenda
During webinars, all times listed below are in Central time.

Seminar Welcome………………………………………………………………………..….9:30

Chapter 1: Introduction to QuickBooks

Break…………………………………………………………………………......….. 10 minutes

Chapter 2: Working With Lists

Chapter 3: Financial Statements

Chapter 4: Items

Lunch Break…………………………………………………………….………………..1 hour

Chapter 5: Money In I

Chapter 6: Money In II

Break……………………………………………………………………………...…. 10 minutes

Chapter 7: Customizing Forms

Chapter 8: Finding and Saving Time

Chapter 9: Sales Tax

Class Dismissed……………………………………………………………………….…… 5:30

Question & Answer Session (Optional)

 Day 2 Agenda
During webinars, all times listed below are in Central time.

Seminar Welcome………………………………………………………………..……….....9:30

Chapter 10: Money Out I

Chapter 11: Money Out II

Break………………………………………….……………………………………...10 minutes

Chapter 12: Banking

Chapter 13: Reconciliation

Lunch Break …………………………………………………………………………..….1 hour

Chapter 14: Security & Multi-User

Chapter 15: Working With Reports

Chapter 16: Accounting Tasks & Procedures

Break……………………………………………………………………………….....10 minutes

Chapter 17: Setting Up Payroll

Chapter 18: Time Tracking

Chapter 19: Running Payroll

Chapter 20: Inventory

Class Dismissed……………………………………………………………………………. 5:30

Question & Answer Session (Optional)

 Table of Contents
Select headers below to jump to content

Chapter 1 - Introduction to QuickBooks© 10

Introduction 11
Editions of QuickBooks 12
Industry-Specific QuickBooks 16
Toggle to Another QuickBooks Edition 19
Create Company File 21
Complete Your Setup 22
Moving Around in QuickBooks 25
Centers 26
What You See on Screen 28
Preferences 29
Customize Home Page 30

Chapter 2 - Working with Lists 32

List Types 33
List Limits 35
Use Lists 38
Edit List Entry 41
Merge List Entry 43
Sort Lists 44
Print Lists 45

Chapter 3 - Financial Statements 46

Financial Statements 47
Account Types 50
Add Accounts/Subaccounts 51
Collapse Financial Statements 54
General Journal Entries 55
Your Financial Statements 56
Company Snapshot 58
Insights Tab 59

Chapter 4 - Items 60
Understanding Items 61
Add Items 63
Reports 66

Chapter 5 - Money In I 69
Customers and Jobs 70
 Money In Workflow 75
Method 1-Invoice 75
Create Invoice 76
Email Invoice 77
Print Invoices 79
Undeposited Funds 80
Receive Payments 81
Make Deposits 83
Reports 86
Income Tracker 87

Chapter 6 - Money In II 88
Method 2-Sales Receipts 89
Enter Sales Receipts 90
Make Deposit 90
Method 3 - Make Deposits 91
Method 4-Import from Other Program 92
Credit Memos Intro 93
Option 1: Retaining as Available Credit 94
Option 2: Use Credit to Apply to Invoice 95
Option 3: Giving a Refund 96
Customer Statements 97
Reports 100

Chapter 7 - Customizing Forms 102

Introduction to Templates 103
Create Template Design 103
Customize Template Data Layout 106
Duplicate/Download Templates 111

Chapter 8 - Finding and Saving Time 112

QuickBooks Calendar 113
How to Find a Transaction 115
QuickBooks Keyboard Shortcuts 121
Memorizing Transactions 122
Change Memorized Transaction Detail 125

Chapter 9 - Sales Tax 127

Set Up Sales Taxes 128
Taxable Sale 133
Non-taxable Sale 133
Review a Sales Tax Liability Report 134
Adjust Sales Taxes 135
 Pay Sales Taxes 136

Chapter 10 - Money Out I 137

Add Vendors 138
Money Out Workflow 140
Advantages of Tracking Bills 141
Method 1: Track Accounts Payable 142
Accessing Print Checks from Home Page 146
Method 2: Open Drawer 148
Hand-written Checks 149
Making Non-Bill Payments with Electronic Transactions 150
Reports 151

Chapter 11 - Money Out II 154

Using Credit Cards 155
Creating Vendor Credit Memos 158
Review the Vendor Open Balance Report 158
Applying Vendor Credit Memo 159
Vendor Refund 161
Void vs. Delete Checks 162
Reports 164

Chapter 12 - Banking 165

Bank Feeds 166
Get Started with Bank Feeds (Direct Connect) 167
Get Started with Bank Feeds (Web Connect) 168
Reviewing Downloaded Transactions 170
Matching To Existing Transaction (Recognized Tab) 172
Adding a New Transaction (Unrecognized Tab) 174
What if QuickBooks Should’ve Matched Something but Didn’t? 175
What QuickBooks Downloads vs What You Enter Manually 176
Add a Deposit 177
Split Transaction 178
Ignore Transactions 179
Recording Owner’s Personal Expenses 180
Transfers 181
Credit Card Payments 182
Review Rules 183

Chapter 13 - Reconciliation 184

Reconcile a Bank Account 185
Compare your Statement to QuickBooks 186
Reconciliation Reports 187
 Locate Discrepancies 188
Register Tips 190
Tips on the Reconciliation Window 191

Chapter 14 - Security and Multi-User 192

Users 193
Add a New User 194
What is multi-user mode? 195
Audit Trail 197

Chapter 15 - Reports 199

Report Center 200
Columns 201
Sorting 202
Column Width & Order 203
Filter Reports 205
Header/Footer 206
Fonts & Numbers 207
Report Preferences 208
Memorizing 209
Report Groups 209
Working with Microsoft® Excel® 212
Update Report Data 214

Chapter 16 - Accounting Tasks & Procedures 216

Backup Data Files 217
Updating QuickBooks 220
Getting Maintenance Releases 221
Year-End Steps 222
Set a Closing Date 222
Financial Info to Accountant 225
Incorporate Accountant’s Changes 226

Chapter 17 - Payroll Setup 227

Payroll Setup 228
Payroll Items 231
Employees 235

Chapter 18 - Time Tracking 240

Set Up Time Tracking 241
Enter Weekly Timesheet 242
Print Timesheets 243
Invoice for Time 244
 Time Reports 246

Chapter 19 - Running Payroll 248

Create Paychecks 249
Print Paychecks 253
Print Pay Stubs 254
Pay Liabilities & Taxes 255
Reports 259

Chapter 20 - Inventory 261

Manage Inventory 262
Purchase Orders 263
Adjust Inventory 267
Inventory Reports 268
What To Do After Class Is Over 269
How to Open a Sample File 270
VIP Membership Details 271
Certification 271
 Chapter 1

Introduction to
©
QuickBooks

Table of Contents Page 10

Introduction
Welcome to Mastering QuickBooks. Using QuickBooks effectively for your business is
the focus of this class.

Goals/Learning Objectives
1. Learn the features and capabilities of QuickBooks.
2. Learn the most common problems (and their fixes!) in each area of QuickBooks.
3. Discover the tricks and tips of QuickBooks to help you use QuickBooks to its fullest
potential.

About Intuit
Intuit Inc. is a leading provider of business and financial management solutions for
small businesses, consumers and accounting professionals. Its flagship products and
services, including QuickBooks®, and TurboTax® software, simplify small business
management and payroll processing, personal finance, and tax preparation and filing.
ProSeries® and Lacerte® are Intuit's leading tax preparation software suites for
professional accountants. For more information, visit www.intuit.com.

About Real World Training

Real World Training was founded in 1992 by David J. O'Brien, CPA. Initially the
company provided one-on-one accounting software training to small businesses. In
1994, the company began focusing exclusively on QuickBooks and began offering
training courses on the program. In 1996, Real World Training developed the
Mastering QuickBooks seminar. Since that time, Real World Training has taught over
2,000,000 students how to master QuickBooks for their business. For more information
on Real World Training or to see seminar schedules online, visit
www.quickbookstraining.com.

Table of Contents Mastering QuickBooks Level 1 Page 11

Editions of QuickBooks
There are several editions of QuickBooks: QuickBooks Online, QuickBooks Desktop
(e.g. QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise Solutions).
Each edition includes basic features such as check writing, paying bills, entering sales
and making deposits.
As an additional benefit, QuickBooks Pro, Premier, and Enterprise Solutions share a
common look and feel. QuickBooks Premier and QuickBooks Enterprise Solutions are
also available in industry-specific editions.
QuickBooks Online Editions
QuickBooks Online uses your web browser. QuickBooks online looks different than
desktop editions of QuickBooks but has similar features. Also, since it is cloud-based
software, it has several advantages over the desktop editions. Visit
quickbooks.intuit.com for more information.

Advantages of QuickBooks Online

1. Anytime, anywhere access
2. All data stored online; no computer or backup issues
3. Always up to date; software updates applied automatically
4. Works flawlessly with smartphones and tablets

Go to quickbooks.intuit.com for current pricing and plans.

Table of Contents Introduction to QuickBooks - Chapter 1 Page 12

QuickBooks Desktop Editions
QuickBooks Pro
QuickBooks Pro includes the following features:
Features
Up to 3 Simultaneous Users

Time Tracking

Advanced Job Costing

Integration with Word, Excel®, & Outlook

Inventory

Price Levels for Customers

Integration with Leading Business Software Applications

Create and Customize Professional-Looking Forms

Additional Customer Statement Options

Automatically Create a Budget

Vehicle Mileage Tracker

Fixed Asset Tracker

Track Multiple Ship To Addresses

Multicurrency

Table of Contents Mastering QuickBooks Level 1 Page 13

QuickBooks Premier
QuickBooks Premier includes everything in QuickBooks Pro, plus:
Features

Up to 5 Simultaneous Users

Sales Orders/Back Orders

Inventory Assemblies

More Powerful Reports for Accountants

Export Report Templates

More Journal Entry Options

Create Forecasts

Business Planner Tool

Create Purchase Orders from Estimates and Sales Orders

Per Item Price Levels

Units of Measure-Simple

Improved Invoicing for Time and Expenses

Table of Contents Introduction to QuickBooks - Chapter 1 Page 14

QuickBooks Enterprise Solutions
QuickBooks Enterprise Solutions includes everything in QuickBooks Premier, plus:
Features

Up to 30 Simultaneous Users

Improved Multi-user Performance

Enhanced Security

Expanded List Capacity

Advanced Inventory (additional fees may apply)

Combine Reports from Multiple Companies

Run Reports Faster

QuickBooks Statement Writer

Even More Journal Entry Options

Units of Measure-Advanced

Enhanced Custom Field Capability

Custom Advanced Reporting with ODBC

Enhanced Inventory Receiving

Table of Contents Mastering QuickBooks Level 1 Page 15

Industry-Specific QuickBooks
QuickBooks Premier and QuickBooks Enterprise Solutions are available in
industry-specific editions, including: Contractors (Construction), Nonprofit
Organizations, Manufacturers/Wholesalers, Retail, Professional Services, and
Accounting Firms.
Contractor Edition
Contractor Edition includes everything in QuickBooks, plus:
● Contractor Specific Menu
● Job Costing Center
● Contractor Reports:
● Job Status
● Job Costs by Vendor
● Costs-to-Complete
● Unpaid Job Bills by Vendor
● Expenses Not Assigned to Jobs
● Certified Payroll - Box 1 Employee Info
● Change Orders
● Liability and Pay as You Go Workman’s Comp Insurance tracking
● Billing Rate Levels

Nonprofit Edition
Nonprofit Edition includes everything in QuickBooks, plus:
● Nonprofit Specific Home Page and Menu
● Nonprofit Reports:
● Biggest Donors/Grants
● Donors/Grants Report
● Programs/Projects Report
● Budget vs. Actual by Donors/Grants
● Budget vs. Actual by Programs/Projects
● Statement of Financial Position
● Statement of Functional Expenses
(Form 990 Report)
● Special Forms (Enter Pledges, Donations)
● Nonprofit Unified Chart of Accounts (UCOA)

Table of Contents Introduction to QuickBooks - Chapter 1 Page 16

Manufacturing & Wholesale Edition
Manufacturing & Wholesale Edition includes everything in QuickBooks, plus:
● Manufacturing/Wholesale Specific Menu
● Manufacturing/Wholesale Reports:
● Inventory Reorder Report by Vendor
● Sales by Customer Type
● Sales Volume by Customer
● Profitability by Product
● Special Forms (Quotes, Sales Order Worksheet)
● Customized Form Templates:
● Customer Return Materials Authorization
● Non-conforming Material Report
● Damaged Goods Log
● Improved Bill of Materials and Sales Orders

Retail Edition
Retail Edition includes everything in QuickBooks, plus:
● Retail Specific Menu
● Retail Reports:
● Profit & Loss Monthly Comparison
● Balance Sheet Monthly Comparison
● Gross Margin by Inventory Item
● Customer Payment by Payment Item
● Purchase Volume by Vendor
● Vendor Returns
● Special Forms (Enter Daily Sales, Vendor Returns, Sales Order Worksheet)
● Customized Form Templates:
● Customer Return Materials Authorization
● Non-conforming Material Report
● Damaged Goods Log
● Improved Bill of Materials and Sales Orders

Table of Contents Mastering QuickBooks Level 1 Page 17

Professional Services Edition
Professional Services Edition includes everything in QuickBooks, plus:
● Professional Service Specific Menu
● Professional Services Reports:
● Project Cost Detail
● Unbilled Expenses by Project
● Expenses Not Assigned to Projects
● Billed vs. Proposal by Project
● Billed/Unbilled Hours Reports
● Project Status
● Open Balances by Customer/Project
● A/R Aging Detail by Class
● Special Forms (Proposal & Estimates, Enter Bills & Expenses)
● Billing Rate Levels

Accountant Edition
Accountant Edition includes everything in all the editions of QuickBooks, plus:
● Accountant Specific Menu
● Accountant Reports: (Including)
● Adjusted Trial Balance Report
● Adjusting Journal Entry Report
● Journal Entries Entered Today
● Advanced Accounting Tools:
● Client Data Review
● Export G/L Balances to Lacerte or ProSeries
● Sample Company Files for Various Industries
● Design Professional Financial Statements
● Working Trial Balance
● Fixed Asset Manager
● Toggle Between QuickBooks Editions
● QuickBooks File Manager
● Multiple Instances of QuickBooks

Table of Contents Introduction to QuickBooks - Chapter 1 Page 18

Toggle to Another QuickBooks Edition
QuickBooks Desktop Premier, QuickBooks Accountant (QBA), Enterprise Solutions
Accountant (QBESA), and QuickBooks Enterprise Solutions (QBES) have the Toggle
feature. This enables you to change your QuickBooks Desktop edition from a specific
industry to another.
These are the Industry-specific Editions you can toggle from and to:
● General
● Accountant
● Contractor
● Manufacturing & Wholesale
● Nonprofit
● Professional Services
● Retail
● Pro (not available in QBESA/QBES)
1. Toggle QuickBooks Desktop Premier or Enterprise Solutions to another edition
From the Help menu, choose Manage My License
2. Choose Change to a Different Industry Edition
3. Select the edition you wish to switch to.
4. QuickBooks will take a few moments to configure and will relaunch in the selected
version.
Note: In the Accountants Edition, select File:Toggle to Another Edition.

Table of Contents Mastering QuickBooks Level 1 Page 19

Note: To find out which version of QuickBooks you have, Press F2.

Table of Contents Introduction to QuickBooks - Chapter 1 Page 20

Create Company File
QuickBooks makes it easy to start. Just answer some basic questions about your
business.
1. Select File:New Company from the menu.

2. Select the Start Setup button.

3. Enter appropriate information into the windows displayed by QuickBooks.
For a more complete setup, we recommend the Advanced Setup (Easy Step
Interview), under Other Options.

Table of Contents Mastering QuickBooks Level 1 Page 21

Complete Your Setup
After you create your company file, there are several tasks you may need to complete:
1. Complete and modify lists. This includes lists such as customers, vendors, items,
employees.
2. Enter opening balances. Enter these opening balances as of one day BEFORE your
start date. There is some guidance in the QuickBooks Help system.
3. Enter historical transactions. Enter all transactions from the start date to the current
date. You must enter these transactions in a specific order. There is also some
guidance for this in the QuickBooks Help system.

Table of Contents Introduction to QuickBooks - Chapter 1 Page 22

Start Working
1. When you finish creating your company file, QuickBooks opens the QuickBooks
Setup window.

2. Select Start Working to begin using QuickBooks.

Table of Contents Mastering QuickBooks Level 1 Page 23

My Company Information
You can view and edit the contact details for your business in the My Company
window.
1. Select Company: My Company.
2. To edit, select the pencil.

Table of Contents Introduction to QuickBooks - Chapter 1 Page 24

Moving Around in QuickBooks
You can access the features of QuickBooks using the home page, icon bar, centers, or
menus.
Home Page
The Home page provides an easy way to access windows and shows the workflow of
common business transactions.
Display the Home Page
3. Select My Shortcuts.
4. Select the Home icon.

Icon Bar
The Icon Bar appears at the top or to the left of the window. To use an icon, click with
the mouse.

Display/Hide the Icon Bar

Select View: Top Icon Bar or Left Icon bar from the menu.

Table of Contents Mastering QuickBooks Level 1 Page 25

Centers
Display Center
1. Select My Shortcuts.

2. Select the (List Name) icon (e.g. Vendors, Customers) .

Table of Contents Introduction to QuickBooks - Chapter 1 Page 26

Menus
All the features of QuickBooks are available via the menus. There are
three types of menus available.
Drop-down menus at the top of the screen

Shortcut menu by clicking the right mouse button

Menus on the bottom of most lists

Table of Contents Mastering QuickBooks Level 1 Page 27

What You See on Screen

Ribbon - Provides quick access to features and options for the current transaction.
a. Back Arrow- Records the entry and displays the prior transaction.
b. Forward Arrow- Records the entry and opens a new transaction window.
c. Save- Records the entry and leaves the window open.
d. Print- Print the transaction.
e. Attach File- Allows you to attach a document to the current transaction.
(Attachments are not stored in the company file, but in an “Attach” folder in the
file location.)
f. Save & Close- Records the entry and closes the window.
g. Save & New- Records the entry and opens a new transaction window.
h. Clear- Erases information entered on a new form.
i. Revert- Clear is replaced by revert once a transaction is saved. It erases changes
entered while modifying a saved transaction.
j. Tabs to switch between ribbons.
Parts of a Transaction- Four basic details you enter for each transaction.
1. Who -Who are you paying or who is paying you?
2- When - When did the transaction happen in the real world?
3- What - What are you purchasing or selling?
4- How much - The amount of money you receive or spend on a transaction.
Table of Contents Introduction to QuickBooks - Chapter 1 Page 28
Preferences
Customize how QuickBooks works by modifying your preferences.
Customize QuickBooks Preferences
1. Select Edit:Preferences from the menu.
Note: The My Preferences tab only affects you.

Table of Contents Mastering QuickBooks Level 1 Page 29

The Company Preferences tab affects all users that use the QuickBooks company file.

Customize Home Page

You can customize the Home page to match the workflow of your business.
1. Select Edit:Preferences from the menu.
2. Select Desktop View.
3. Choose the Company Preferences tab.

4. Enter appropriate information in the Preferences window.

5. Select OK.

Table of Contents Introduction to QuickBooks - Chapter 1 Page 30

Table of Contents Mastering QuickBooks Level 1 Page 31
 Chapter 2

Working with
Lists

Table of Contents Page 32

What are Lists?
QuickBooks uses lists to organize information about the people and businesses you
buy things from as well as the things you buy and sell. Lists help you save time in
several ways:

1. Lists store information about people and businesses you work with to record
transactions quickly. They also help you find previously recorded transactions.
2. Lists are the foundation of reports. How you organize the list translates to what
you’ll see on reports.
3. Lists let you track who owes/paid you money and who you owe/paid money to.

List Types
Center-Based Lists
Open center-based lists from their icon on the Home page or the top menu. These
lists include Customers & Jobs, Vendors and Employees.

Table of Contents Mastering QuickBooks Level 1 Page 33

Menu-Based Lists
Menu-based lists are available via the Lists menu. These include the Item List, Chart of
Accounts, Class List, and Payroll Item List. You can also open the Item List and Chart of
Accounts from the Home page.

Table of Contents Work with Lists – Chapter 2 Page 34

List Limits
To view your specific company’s list limits visit the F2 menu. The counts listed in the
menu are specific to the company file.
Nams List Pro & Premier Enterprise Only

Customers & Jobs

Vendors
14,5001 Unlimited2
Employees

Other Names List

List Name Pro & Premier Enterprise Only

Items-including inventory items 14,500 Unlimited2

Sales reps 10,000 10,000

Price levels 100 100

Sales tax codes 10,000 10,000

Job types 10,000 10,000

Vendor types 10,000 100,000

Customer types 10,000 100,000

Payroll items 10,000 10,000

Classes 10,000 100,000

A/R terms & A/P terms (added together) 10,000 29,000

Payment methods 10,000 10,000

Shipping methods 10,000 10,000

Customer messages 10,000 100,000

To do's 10,000 100,000

Memorized transactions 14,500 50,000

Memorized reports 14,500 29,000

Chart of Accounts 10,000 100,000

1
In Pro/Premier, you can have a total of 14,500 names. Names include Customers, Vendors, Employees, and Other Names.

2
Performance testing was conducted at 100,000 list entries. You may see performance degradation as you add more than
100,000 items, customers or vendors.

Table of Contents Mastering QuickBooks Level 1 Page 35

 Names Lists
1. Vendors-This list stores the companies and individuals from whom you purchase
goods or services. To track accounts payable from a company or issue a 1099 at the
end of the year, you must enter the name as a vendor.
2. Customers & Jobs-This list stores customers and the jobs performed for them. To
invoice a company on account, you must enter the name as a customer or job.
3. Employees-This list stores employees and their related payroll information. To pay
an employee using payroll or issue a W-2 to an employee, you must enter the
person as an employee.
4. Other Names-This list stores the names of companies and individuals that do not
need to appear on another names list.
Rules for Names Lists
1. The limit for each individual list is 14,500 names (unlimited in QuickBooks
Enterprise Solutions). The limit for the four names lists combined is also 14,500
names (unlimited in QuickBooks Enterprise Solutions). Press the F2 key or hold
down the Control key and press 1 on the keyboard.

2. An individual name can only be included on one list.

3. Once entered on a list, you can not move the name to another list. The only
exception is the Other Names List. When you move Other Names to another list, the
move is permanent.

Table of Contents Work with Lists – Chapter 2 Page 36

Moving Other Names
Move Individual Other Names to Another List
1. Display the list by selecting Lists:Other Names List from the menu.

2. Select the item to be moved from the list.

3. Select the Other Names button at the bottom of the list.
4. Select Edit Other Name from the menu.
5. Select the Change Type button.

6. Select the button next to the appropriate new name type.

7. Select OK.
Note: When making a name change, this cannot be undone.

8. Select OK on the Change Type window.

Table of Contents Mastering QuickBooks Level 1 Page 37

Use Lists
Add Entry from a Center
1. Display the appropriate list.
2. Select the New (List Name) button.
3. Enter appropriate information in the window, and select OK

Add Entry from a List

Display the appropriate list.
For menu-based lists, choose between the desired entry, the select one of the
following:
the Edit menu.

Table of Contents Work with Lists – Chapter 2 Page 38

selecting the left-most button at the bottom of the list.

or Right-Clicking on a list or a transaction to get a menu.

Table of Contents Mastering QuickBooks Level 1 Page 39

Add Entry from Form
1. Display the form and enter appropriate information.
2. Type the name of the new entry as it will appear in the list.
3. Press the Tab key.

4. When adding a name, select the Quick Add button or Set Up button in the
window. When adding an account or item select Set up.
5. Enter appropriate information in the window (if you selected Set Up in step 4).

Table of Contents Work with Lists – Chapter 2 Page 40

Edit List Entry
1. Open the list for the type of entry you want to modify.

2. Select the entry in the list to edit.

3. For center-based lists, select the Edit (List Name) button.
For menu-based lists, select the left-most button at the bottom of the list, then
select Edit (List Name) from the menu.
4. Enter or change appropriate information.
5. Select OK.

Note: You can press Control+E on your keyboard for a shortcut and on most lists
double-clicking the entry also opens the edit window.

Table of Contents Mastering QuickBooks Level 1 Page 41

Delete List Entry
Note: If you have used a list entry in a transaction you cannot delete it. Instead, you
must make the entry inactive or merge it with another entry.
1. Display the appropriate list.
2. Select the entry in the list to delete.
3. For center-based lists, select Edit:Delete (List Name) from the menu.
For menu-based lists, select the left-most button at the bottom of the list, then
select Delete (List Name) from the menu.
4. Select OK.

Make List Entry Inactive

1. Display the appropriate list.
2. Select the entry in the list to make inactive.
3. For center-based lists, select the Edit (List Name) button.
For menu-based lists, select the left-most button at the bottom of the list, then
select
4. Make (List Name) Inactive from the menu.
5. For center-based lists, select the (List Name) is inactive box, then select OK.

Hide or Show All Entries on List

Display the appropriate list.
For menu-based lists, select the Include inactive checkbox.

Table of Contents Work with Lists – Chapter 2 Page 42

For center-based lists, select the View drop-down arrow on the (List Name) tab, then
select All (List Name).

Note: Make sure to change the dropdown back to “Active” when finished.

Merge List Entry

1. Display the appropriate list.
2. Select the list entry to merge (the entry you no longer want to see).
3. For center-based lists, select the Edit (List Name) button.
For menu-based lists, select the left-most button at the bottom, then select
edit (List Name) from the menu.
4. Type the entry you want to merge it with as the new name.
Note: For accuracy, copy and paste the name into the Name field.
5. Select OK on the pop-up asking “Are you Sure?”.
6. Select Yes in the Merge window.
Note: When merging accounts in the Chart of Accounts, you can only merge accounts
that are of the same type (e.g. liability with other liabilities, expense with other
expenses, income with other incomes).

Table of Contents Mastering QuickBooks Level 1 Page 43

Sort Lists
Sort Using Column Headings
1. Display the appropriate list.
2. Select the appropriate column heading.

Restore List Order (after column sort)

1. Display the appropriate list.
2. Select the diamond at the top left of the list.

Sort a List Manually (available on most lists)

1. Display the appropriate list.
2. Select the diamond to the left of the entry and drag it up or down.

Sort Alphabetically (restores order after manual sort)

1. Display the appropriate list.
2. For center-based lists, select View: Re-sort List from the menu.
For menu-based lists, select the left-most button at the bottom of the list, then
select Re-sort List? from the menu.
3. Select OK in the Resort List? window.

Table of Contents Work with Lists – Chapter 2 Page 44

Print Lists
Option 1: From the Reports Tab
1. Select Reports:List:<List Name> from the menu.

2. Select the Print drop-down arrow and select Report.

3. Select Print in the Print Reports window.

Option 2: Select the first menu in the bottom left hand corner of the list, then select
Print List.

Option 3: Select the Print button at the top of the Center Based list.

Table of Contents Mastering QuickBooks Level 1 Page 45

 Chapter 3

Financial
Statements

Table of Contents Page 46

Financial Statements
For those of you who are from a non-accounting background, this chapter will help you
to learn some accounting basics, which leads to understanding more about how
QuickBooks works. You’ll discover the intention behind the Chart of Accounts and how
it relates to two financial statements: the Balance Sheet and the Profit & Loss.

Chart of Accounts
The Chart of Accounts represents the “hub” of your accounting system. Each account
represents something that your business owns/owes or a reason that your business
earns/spends money. As you record transactions, you assign accounts that represent
where the money came from/went to and why. After each transaction, the account
balances update on your financial statements based on the accounts and amounts you
entered. Each account in the Chart of Accounts becomes a line on either the Balance
Sheet or the Profit & Loss Statement.
For example, you used a debit card in an office supplies store and then later download
the transaction. The first account affected by the transaction is the Checking account
linked to your debit card. That represents where the money came from/went to. The
second account the transaction affects is the reason why you spent/earned money …in
this case, office supplies. So you would probably use an expense account named
Office Supplies so that you could track how much you’ve spent on office supplies over
time.

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Balance Sheet

The Balance Sheet is the financial snapshot or position of your business. If someone
took a photograph of your business right now, what would the financial picture look
like? The Balance Sheet has 3 areas: assets, liabilities, and equity.
Assets
Anything owned by your business. Assets include cash/liquid assets like bank accounts,
inventory you plan to sell to customers, fixed assets like vehicles and equipment, and
even receivables that your customers owe you
Liabilities
What your business owes people/companies outside of your business. Liabilities
include credit cards, loans like mortgages and car notes, lines of credit and even
payables that you owe on open bills from vendors.
Equity
What the business owes the owners of the business. Equity tracks the investments into
the business, draws out of the business to pay the owner/partner and retained
earnings. You might also see an account called Opening Balance Equity, which is a
summary of what the business was worth to the owner before the business started
using QuickBooks.

Run a Balance Sheet

1. Select Reports: Company & Financial from the menu.
2. Select the appropriate Balance Sheet report.

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Profit & Loss Statement

This statement is the movie of your business. It measures performance over a specified
time period. This financial statement includes income, costs of goods sold and
expenses.
Income
Income accounts track money that comes into your business through the sale of goods
or services. They’re also used to track income generated through donations or
pledges from donors. Examples include sales and service income.

Cost of Goods Sold

Cost of Goods Sold accounts track the money you spend that is directly related to a
specific sale. This includes the cost of contractors you paid to work on a specific job,
materials purchased for a specific customer/project, and even the original purchase
price of inventory that you’ve sold.
Note: If you use inventory products & services, QuickBooks automatically calculates the
cost of goods sold for you when you record your sale of inventory. You learn about this
in the Inventory chapter.

Expenses
Expense accounts track what your business spends on regular expenses like rent,
insurance and payroll. Expenses are also often called “overhead” and don’t tend to
increase or decrease based on the work you perform.

Run a Profit and Loss

1. Select Reports: Company & Financial from the menu.
2. Select the appropriate Profit and Loss report.

Note: You will learn how to print/send and export to Excel in the Working with Reports
Chapter.

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Account Types
The most important element when working with the Chart of Accounts is the Account
Category Type. This must be correct, or your financial statements will be wrong!
Account Types - Balance Sheet
QuickBooks Type Description Examples

Bank Your bank accounts Checking, Savings and Petty Cash

Accounts Receivable What your customers owe you Accounts Receivable

Assets likely to be turned into Inventory, Short-term Investments

Other Current Asset
cash within 1 year and Undeposited Funds

Assets expensed over more Furniture & Fixtures and Computer

Fixed Asset
than 1 year Equipment
Assets that do not belong in
Other Asset Long-term Investments
other types
What you owe vendors in open
Accounts Payable Accounts Payable
bills
Company credit cards used to
Credit Card AMEX, Mastercard, and VISA
make purchases
Liabilities you’ll pay off within 1 Sales Taxes Payable and Payroll
Other Current Liability
year Taxes
Liabilities that take longer than Mortgage Payable and Long-term
Long Term Liability
1 year to pay off Bank Notes

Owner’s investments and Owner’s Contribution and Owner’s

Equity
draws out of the business Draw and Retained Earnings

Account Types - Profit & Loss

QuickBooks Type Description Examples

Revenue generated through Product Sales, Service Income and

Income
sales/donations Donations

Cost of Goods Sold Cost you pay for products Materials and Cost of Sales
sold/services performed

Operating expenses and

Expense Insurance, Office Supplies and Rent
overhead

Income earned outside of Credit Cards Rewards, Cash

Other Income
normal operations Rewards and Interest Income

Other Expense Non-operating expense Interest Expense

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Add Accounts/Subaccounts
Add Account
1. Select the Chart of Accounts icon on the Home page.
2. Select the Account button.
3. Select New from the menu.

4. Select the appropriate Account Type.

5. Select Continue.

6. Enter remaining information in the Add New Account window.

7. Select Save & Close.
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Subaccounts allow you to track your business in more detail by grouping accounts
together in a logical fashion. Subaccounts are useful when you print financial
statements because they group together related accounts and show a subtotal for the
group. QuickBooks supports five account levels.

Add Subaccount
1. Select the Chart of Accounts icon on the Home page.
2. Select the Account button.
3. Select New from the menu.
4. Select the appropriate Account Type.
5. Select Continue.

6. Enter remaining information in the Add New Account window.

7. Select the box next to Subaccount of.
8. Select the Subaccount of drop-down arrow and select the appropriate account.
9. Select Save & Close.

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Change Account to Subaccount
1. Click the Chart of Accounts icon on the Home page.

2. Move the cursor over the diamond to the left of the account that will become a
subaccount.
3. Click and drag the account to move below the parent account.
4. Click and drag the account to move to the right.
5. If the list is no longer in order alphabetically, Click View, Re-sort to return the list to
its original order.

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Collapse Financial Statements
When printing financial statements with subaccounts, the collapse rows feature allows
you to hide the subaccounts and only show the parent accounts. You can collapse
different levels of subaccounts or all of the subaccounts.

Collapse/Expand Financial Statements

1. Select Reports:Company & Financial from the menu.
2. Select the appropriate report.

3. Select the arrows to the left of the accounts to collapse individual accounts, or
select the Collapse Rows button to collapse all the subaccounts.
4. Select the arrows to the left to expand the individual subaccounts, or select the
Expand Rows button to expand all the subaccounts.

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General Journal Entries
Occasionally, you may need to change the balances of your accounts in the chart of
accounts. These entries are general journal entries. When entering journal entries, the
Debit total and Credit total must equal.

Make General Journal Entry

1. Select Company:Make General Journal Entries from the menu.

2. Enter the information in the Make General Journal Entries window.

3. Select Save & Close.
Note: Journal Entries can be memorized for automatic entry each month.

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Your Financial Statements
Review a Comparison Balance Sheet
1. Select Reports:Company & Financial:Balance Sheet Prev Year Comparison from the
menu.

Review a Profit & Loss Statement-By Month

1. Select Reports:Company & Financial:Profit & Loss Standard from the menu.
2. Select the Columns drop-down arrow and select Month.

Review a Profit & Loss Statement-% of Income

1. Select Reports:Company & Financial:Profit & Loss Standard from the menu.
2. Select the Customize Report button.
3. Select the % of Income box below Add subcolumns for.
4. Select OK.

Table of Contents Financial Statements – Chapter 3 Page 56

Review a Profit & Loss Statement-Cash Basis
1. Select Reports:Company & Financial:Profit & Loss Standard from the menu.
2. Select the Cash button next to Report Basis.

Note: When running financial statements, choose the appropriate report basis. Accrual
basis shows transactions in the period when the service was performed or when the
goods were delivered, not when it was paid. Cash Basis shows transactions in the
period when it was paid.

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Company Snapshot
Review and Customize the Company Snapshot
1. Select Company:Company Snapshot from the menu.

2. Select Add Content.

3. Select the left or right arrow buttons to browse the available snapshot panels.
4. Select the Add button next to the desired panel.
5. Select Done to hide the available snapshot panels.
6. Select and drag a panel heading to reposition a panel.
7. Make additional selections as appropriate to customize individual panels.
8. Select a panel down arrow to view additional options, such as Print or Print
Preview.
9. Select X on a panel to remove it from the Company Snapshot window.
10. Select OK (if prompted) to confirm the deletion.

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Insights Tab
Review and Customize the Insights Tab
1. Select the Insights tab.

2. Select the gear icon to add or remove reports.

3. Select the report(s) to add.
4. Select OK.
5. Make the appropriate selections on each panel to customize the panel

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 Chapter 4

Items

Table of Contents Page 60

Understanding Items
Items are critical to maximizing the use of QuickBooks. Items perform these functions
in QuickBooks.
1. Any line item on a purchase order, invoice, or estimate must be set up as an Item.
2. Items make it easier to fill out sales forms.
3. Items act as pointers for the financial statements. In other words, items handle the
behind the scenes accounting for sales and purchases.
4. Items allow you to track quantities purchased and sold in addition to dollars
purchased and sold.

Item List

Item on Invoice

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How Much Detail
How much detail is necessary when setting up items? The rule of thumb is to set up as
much detail as possible to get the full benefit of items. However, the limit is 14,500
items in a QuickBooks company file (unlimited in QuickBooks Enterprise Solutions). A
good method is to set up individual items if you will use the item more than once. If
you will only use the item once, a generic item might be more appropriate.

Service Item

Item List - Service Item

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Item Types
When adding an item, the key element is the Type. QuickBooks is very restrictive when
allowing changes in the type. Therefore, it is critical they are set up correctly.
Item Type Description Use If You-

Service Services provided to or from others Buy or sell services

Inventory Part Inventory you purchase, track as Track quantities, value, and
inventory, and then sell number on order of inventory

Materials or parts for which you do Do not track the quantity of

not track quantities inventory

Non-inventory Materials or parts you buy but do not

Part sell Purchase items that are not sold

Materials or parts you sell but do not Sell items that are not purchased
buy
Inventory items you assemble from Assemble finished goods from
Inventory other inventory, non-inventory, components
Assembly inventory assembly, other charge,
and service items and then sell * Not available in Pro.

Other Charge Miscellaneous charges Show freight, handling, or

delivery charges on PO or invoice

Subtotal Used to calculate subtotals Show subtotal on invoice or PO

Group Allows fast entry of a group of Often sell or buy the same group
individual items of items
Calculates an amount or percent to Give or receive discounts off the
Discount be subtracted from a total or sales price
subtotal

Payment Used to split into multiple payments Enter daily sales onto a sales
types on sales receipts receipt

Sales Tax Item Calculates a single sales tax Charge customers for sales taxes

Calculates two or more sales taxes Charge customers for a

Sales Tax Group grouped together on the same sale combination of sales tax rates as
one line item on invoice

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Add Items
1. Select the Items & Services icon on the Home page.
2. Select the Item button.
3. Select New from the menu.
4. Select the appropriate item Type.
5. Enter remaining information in the New Item window.
6. Select OK.
Inventory Part

Non-Inventory Part

Table of Contents Items – Chapter 4 Page 64

Service (Performed by Subcontractor)

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Reports
Review the Sales by Item Summary
Select Reports:Sales:Sales by Item Summary from the menu.

Table of Contents Items – Chapter 4 Page 66

Review a Purchases by Item Summary
Select Reports:Purchases:Purchases by Item Summary from the menu.

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Review an Item Profitability Report
Select Reports:Jobs, Time & Mileage:Item Profitability from the menu.

Table of Contents Items – Chapter 4 Page 68

 Chapter 5

Money In I

Table of Contents Page 69

Customers and Jobs

The Customer Center stores information about your customers and the jobs you
perform for them.
Note: If you start typing you can get to the name very quickly (the cursor is dark
green, don't use the search box).

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Should you use customers?
To invoice a customer, you must first add a customer to the Customers & Jobs list.

Add Customers
1. Select the Customer Center icon.
2. Select the Customers & Jobs tab in the Customer Center window.
3. Select the New Customer & Job drop-down arrow and select New Customer.
4. Enter appropriate information in the New Customer window.
5. Select OK.

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Payment Settings

Additional Info

Should you use jobs?

Table of Contents Money In– Chapter 5 Page 72
QuickBooks uses jobs to track income and expenses by project. For instance, a
construction company that builds homes might build 20 homes during a year. It is
critical that they know which houses are profitable and which are not. They should
enter each house as a job.

Add Jobs
1. Select the Customer Center icon.
2. Select the Customers & Jobs tab in the Customer Center window.
3. Select the appropriate customer or job in the list.
4. Select the New Customer & Job drop-down arrow and select Add Job.

5. Enter appropriate information in the New Job window.

6. Select OK.

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Recording Sales
There are 4 ways to record sales in QuickBooks.
Method 1- Invoice
Use this method if a customer owes you money and will pay you later.

Method 2- Sales Receipt

Use this method if your customer pays you at the time of the sale.

Method 3- Deposit
Use this method to record income on a deposit, when you do not use any of the
previous methods.

Method 4- Import from Other Program

There are 100s of compatible programs that work with QuickBooks. You record sales in
the other program and send it to QuickBooks.

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Money In Workflow

Table of Contents Mastering QuickBooks Level 1 Page 75

Method 1-Invoice
Steps for Method 1
1. Create Invoice
2. Receive Payment
3. Make Deposit

Create Invoice
1. Select the Create Invoices icon on the Home page.
2. Select the Customer:Job drop-down arrow and select the appropriate customer or
job.
3. Enter remaining information in the Create Invoices window.
4. Select Save & Close.

Service Invoice

Table of Contents Money In– Chapter 5 Page 76

Product Invoice

Email Invoice
Email While in Invoice
While in the Invoice, select the down arrow next to the Email Button and Invoice or
Batch.

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Setting Up an Email
1. Select Edit:Preferences:Send Forms from the menu.
2. Select My Preferences

Edit Email Templates

1. Edit the email template by selecting Edit:Preferences Send Forms
2. Select Company Preferences

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Print Invoices
Print While in Invoice
1. While in the Invoice, select the down arrow next to the Print Button and Invoice or
Batch.

2. Select File:Print Forms:Invoices from the menu.

3. Select OK.
4. Select the appropriate batch to print, and select Print in the Print Invoices window
(if applicable).
5. Enter appropriate information in the Print Invoices window.
6. Select Print.
7. Select OK in the Print Invoices - Confirmation window.
Note: Once the invoice is printed, it will be removed from the Print Later Queue.

Review Accounts Receivable Aging Summary

Select Reports:Customers & Receivables:A/R Aging Summary from the menu

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Undeposited Funds
When you receive a customer’s payment it is automatically placed into an asset
account called Undeposited Funds. This is a temporary holding place for received
payments until a Deposit is made.
A number will appear on the Record Deposits icon on the homepage indicating
how many payments are in Undeposited Funds.
When you select Record Deposits, you match up all checks that are going to the bank
that day, and it will drop the payments into a deposit slip window. Once you have
placed all payments in a deposit, then Undeposited Funds will go to zero.
Note: You can edit the name of the account to represent where you actually keep your
money (e.g. Payments to be Deposited).

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Receive Payments
1. Select the Receive Payments icon on the Home page.

2. Select the Received From drop-down arrow and select the appropriate customer or
job.
3. Enter remaining information in the Receive Payments window.
4. Select Save & Close.

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Receiving a Partial Payment

The Result
The transaction is now listed in the Undeposited Funds account. In order to transfer it
from undeposited funds into the correct bank account, follow the steps listed next to
Record Deposits.

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Make Deposits
1. Select the Record Deposits icon on the Home page.

2. Select the appropriate payment method(s) to view next to the View payment
method type.
3. Select the line items to deposit.
4. Select OK.

Note: If you want to go back to this window, select Payments in the deposit window.

Table of Contents Mastering QuickBooks Level 1 Page 83

5. Enter any additional items for deposit in the Make Deposits window.
6. Select the Print button to print deposit slips and/or the deposit summary.

7. Select Save & Close.

Note: Undeposited funds is now reduced and has been transferred onto a deposit slip
that is now found in the bank account.

Funds being Deposited in the Checking account

Table of Contents Money In– Chapter 5 Page 84

Result in the Chart of Accounts

Table of Contents Mastering QuickBooks Level 1 Page 85

Reports
Review an Open Invoices Report
Select Reports:Customers & Receivables:Open Invoices from the menu.

Note: If you see a zero balance or invoices that have really been paid, or credits in this
report then you have not connected the payments or credits to the open invoices.

Review a Collections Report

Select Reports:Customers & Receivables:Collections Report from the menu.

Table of Contents Money In– Chapter 5 Page 86

Income Tracker
The Income Tracker allows you to easily see your Accounts Receivable transactions in
one place. Select from the available categories at the top of the window to see
Unbilled, Unpaid, or Paid transactions.
Review the Income Tracker
1. Select Customers:Income Tracker from the menu.
2. Make the appropriate selections in the Income Tracker window.

Table of Contents Mastering QuickBooks Level 1 Page 87

 Chapter 6

Money In II

Table of Contents Customers & Sales Part II- Chapter 6 Page 88

Method 2-Sales Receipts
Enter sales receipts when your customer pays you in full at the time of the sale.
Scenarios for using a Sales Receipt (not limited to)
● Retail sales
● Walk in sales
● Donations
● Online Sales

Steps for Method 2

1. Create Sales Receipt
2. Make Deposit

Table of Contents Mastering QuickBooks Level 1 Page 89

Enter Sales Receipts
1. Select the Create Sales Receipts icon on the Home page.

2. Select the Customer:Job drop-down arrow and select the appropriate customer or
job.
3. Enter remaining information in the Enter Sales Receipts window.
4. Select Save & Close.

Make Deposit
1. Select the Record Deposits icon on the Home page.
2. Select the line items to deposit.
3. Select OK.
Note: You can batch payments for invoices and sales receipts in the same deposit.

Limitations of Sales Receipts

1. Can’t track a due date for the payment (they have paid immediately)
2. Cannot track balance (Sales receipts don’t affect the customer balance in the
customer center because they do not have time to pay like they would in an invoice
situation).
3. Are not going to show up on Customer Statements

Advantages of Sales Receipts

1. There is only one step required to record both income and payment.
2. QuickBooks does not require Customer in Sales Receipt transactions.
3. No effect on Accounts Receivable.
4. Can include details about the products sold.

Table of Contents Customers & Sales Part II- Chapter 6 Page 90

Method 3 - Make Deposits
Use this method to record income on a deposit, when you do not use any of the
previous methods.

Steps for Method 3

Make Deposit
1. Select the Record Deposits icon on the Home page.
2. Select OK.

3. Enter any amounts to deposit in the Make Deposits window.

4. Select the Print button to print deposit slips and/or the deposit summary.
5. Select Save & Close.

Limitations of Lump-Sum Deposits

1. You can’t use items
2. You can’t record sales tax
3. Does not show on Sales Reports or Customer Statements, Only Profit and Loss

Scenarios to Use Lump-Sum Deposits

1. Great for non-profits whose only income is one or two large donations checks per
year.
2. Great for restaurants or retail using a third party or POS to track sales details
outside of QuickBooks.
3. To record money the owner gives from their personal bank account to the business.

Table of Contents Mastering QuickBooks Level 1 Page 91

Method 4-Import from Other Program
With Method 4 another program designed for your industry determines how the sales
data imports into QuickBooks.
Visit the QuickBooks Desktop Marketplace for Apps
In your browser, visit desktop.apps.com.

Table of Contents Customers & Sales Part II- Chapter 6 Page 92

Credit Memos Intro
Use this form to issue a customer credit for a previously recorded sale. You can create
a refund check as part of this process. You should create credit memos if you use
methods 1, 2. You should not create credit memos if you use methods 3 or 4.
Scenarios to Use a Credit Memo
● Providing discounts to a customer with an outstanding balance
● Bad Debt- when a customer does not pay what they owe and the company incurs
the charge
● To reverse incorrect invoices
● Use a credit memo to give refunds or credits for a current or future invoice.

Limitations of Credit Memos

● Using a Credit Memo for sales tax vs. non sales tax, you must handle each
differently.

Using Credit Memos

When entering in a credit memo, three options are available as to how you can
use/apply to the customer account.
1. Retaining as Available Credit
2. Giving a Refund
3. Apply to an Invoice

Table of Contents Mastering QuickBooks Level 1 Page 93

Option 1: Retaining as Available Credit
1. Select the Refunds & Credits icon on the Home page.

2. Select the Customer:Job drop-down arrow and select the appropriate customer or
job.
3. Enter remaining information in the Create Credit Memos/Refunds window.
4. In the popup, select the option to Retain as an available credit.

5. On the customer account the credit will be visible in the transactions list. It will
show an open amount that you can apply on a future invoice.

Table of Contents Customers & Sales Part II- Chapter 6 Page 94

Option 2: Use Credit to Apply to Invoice
1. Select the Refunds & Credits icon on the Home page.

2. Select the Customer:Job drop-down arrow and select the appropriate customer or
job.
3. Enter remaining information in the Create Credit Memos/Refunds window
4. In the pop-up window, select Apply Credit to Invoices
5. Select the Invoice(s) to apply the available credit to, enter the amount to apply to
each invoice in the Amt. Applied column.
6. Select Done.

Table of Contents Mastering QuickBooks Level 1 Page 95

Option 3: Giving a Refund
1. Select the Refunds & Credits icon on the Home page.

2. Select the Customer:Job drop-down arrow and select the appropriate customer or
job.
3. Enter remaining information in the Create Credit Memos/Refunds window.
4. Select the Use Credit to give refund button.

5. Make appropriate selections in the Issue a Refund window.

6. Select OK.
7. Select Save & Close.

Table of Contents Customers & Sales Part II- Chapter 6 Page 96

Customer Statements
Use statements for two reasons:
1. To help remind customers of past due balances
2. To send activity of transactions for a specific period (e.g., invoices, payments)

Prepare Customer Statements

1. Select the Statements icon on the Home page.

2. Make appropriate selections below Select Statement Options, Select Customers,

and Select Additional Options.
3. Select Print (or E-Mail).

All Open Transactions Statement

Table of Contents Mastering QuickBooks Level 1 Page 97

Activity Based Statement with Invoice Summary
1. To access, select Customers:Create Statements and enter in the desired details.

2. Then select Preview

Table of Contents Customers & Sales Part II- Chapter 6 Page 98

Activity Based Statement with Invoice Item Detail
1. To access, select Customers:Create Statements and enter in the desired details.

2. Then select Preview

Table of Contents Mastering QuickBooks Level 1 Page 99

Reports
Review a Sales by Customer Summary (Collapsed)
1. Select Reports:Sales:Sales by Customer Summary from the menu.
2. Select the Collapse Rows button to show less detail.

Show % of Sales
Select the Customize Report button, select % of Column, and then select OK.

Table of Contents Customers & Sales Part II- Chapter 6 Page

100
Show Report Columns by Month
At the top of the report, select Month from the Show Columns dropdown menu.

Show Cash Basis Report

At the top of the report, select Cash next to Report Basis.

Table of Contents Mastering QuickBooks Level 1 Page 101

 Chapter 7

Customizing
Forms

Table of Contents Page 102

Introduction to Templates
You use a template to create nearly every transaction in QuickBooks. Any template
with Intuit in front of its name, is a default template within the QuickBooks Desktop
software and you cannot edit it. However, it is possible to make a copy of the template
so that you can adjust the design as desired, through the Template dropdown. When
ready to edit the template, select the Formatting tab found along the top of the
transaction toolbar.

Create Template Design

You can select from existing professional design templates or create your own design.
You can add your logo, and customize the fonts, colors, and grid styles.
QuickBooks makes it easy to apply your design to multiple templates at once for a
consistent look across your different templates. (Additional fees may apply.)
You can make multiple templates for different types of customers. You can also change
whether or not customers can see certain fields of your invoices. There are things that
you might want to keep internal vs. being visible to your customers, such as the
internal terminology vs. public terminology used in the business.
● Estimate (internal) and Bid or Quote (external)
● Invoice (internal) and Pledge (external)
● Sales Receipt (internal) and Donation or Daily Sales (external)

1. Open a template to customize.

2. Select the Formatting tab.

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1. Preview See the template the way your
customer/vendor will see it when you print
or email it.
2. Manage Templates View a list of templates so you can copy,
rename, customize, and download additional
templates.
3. Download Templates Downloads customize templates to create
the right image for your business.
4. Customize Data Layout Customizes what information appears on a
transaction and where it appears on the
printed emailed version your
customers/vendors see.
5. Spelling Spell-checks the descriptions
6. Insert Line Inserts a blank line above an item so you can
type additional text, create space, or insert a
new live item when applicable.
7. Delete Line Deletes selected line item(s).
8. Copy Line Copies selected line item(s).
9. Paste Line Pastes copied line item(s).
10. Customize Design Adds a professional look to your templates.

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3. Select the Customize Design button.

4. Make appropriate selections in the QuickBooks Forms Customization window.

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5. Preview the new design and select which forms to apply the design to.

6. Select Apply (to find the template, you’ll need to select Show All Templates and
scroll through the list to find your template).

Customize Template Data Layout

You can change the data layout of several forms in QuickBooks. You can customize
invoices, credit memos, sales receipts, purchase orders, statements, estimates, and
sales orders. You can specify which fields and columns to include, the name that
appears for them, and where they show up on the printed form. QuickBooks also
enables you to add text box, data fields, and other image files to the printed form.
Customize Template Layout
1. Open a form to customize.
Table of Contents Customizing Forms – Chapter 7 Page 106
2. Select the Formatting tab.
3. Select Customize Data Layout.

Default Title The title that your customer sees

Date The date of the transaction
Invoice # Distinct number applied to the transaction
Bill To Address and Name of the customer you are billing/charging the transaction to
Ship To Address and Name of the customer to ship the item(s) to
P.O. Number Related purchase order numbers to the transaction (if applicable)
S.O. Number Related sales order numbers to the transaction (if applicable)
Terms Length of time before the payment is due
Due Date The date the payment is due
REP The sales representative who made the sale on the transaction
Account Number Customer account number
Ship Date The date you expect to ship the items to the customer
Ship Via Shipping details
F.O.B. Free On Board / Freight On Board
Project/Job Related project or job to this particular sale for the customer
Other
Custom Field shown in the Header
OK
Saves your changes
Cancel
Closes without saving your changes

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Service Date Adds a date column for date of service performed/ goods sold
Item What was sold/purchased on the transaction
Description Description of item/service sold/purchased
Mfr. Part Number Identifying number for items sold/purchased
Quantity How many of each good or service sold/purchased
Rate Rate for one item sold/purchased
Amount Quantity x Rate for the line item

4. Select whether to include fields on screen by selecting the box below Screen.
Select whether to print fields by selecting the box below Print.
5. Repeat steps for each tab in the Additional Customization window.

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Message Message to the customer
Subtotal Total, less taxes
Sales Tax Amount of sales tax
Total Total dollar amount of entire transaction
Payments/Credits Dollar amount of payments or credits applied to transaction
Balance Due Current amount due on the transaction
Customer Total Balance Customers current Accounts Receivable balance
Job Total Balance The jobs’ current Accounts Receivable balance
Long text (disclaimer) (optional) Extra line to communicate to customer or provide legal
disclaimer

6. Select the Layout Designer button to change the appearance of the printed form.
7. Make changes to the layout as appropriate.
8. Select OK in the Layout Designer window.
9. Select OK in the Additional Customization window.

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Manage Templates

Table of Contents Customizing Forms – Chapter 7 Page 110

Duplicate/Download Templates
Duplicate a custom template to use it as a starting point for other forms. This makes it
easier to create additional templates with the same “look and feel”.
Duplicate Custom Template
1. Select Lists:Templates from the menu.
2. Select the template to duplicate.
3. Select the Templates button and select Duplicate.
4. Select the form type to create in the Select Template Type window.
5. Select OK. (Once duplicated you can edit the name and details on the template.)

Download Custom Templates

1. Select Lists:Templates from the menu.
2. Select the Templates button and select Download Templates.

3. Select the form and select Download.

4. Save the template to your computer.

Making the New Template a Default

Note: After you record a transaction with a template, it becomes your default.

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 Chapter 8

Finding and
Saving Time

Table of Contents Page 112

There are a lot of ways to save time in QuickBooks. In this chapter you’ll learn a few of
those ways including …
● QuickBooks Calendar
● QuickBooks Search
● Recurring Transactions

QuickBooks Calendar
For each day, the QuickBooks calendar shows you what is due (bills, invoices, and to
do’s) and what transactions you entered. You can also add to do’s for future tasks.
Customize Calendar settings with Calendar preferences.
Note: Your calendar may be different from others in your company, based on the
security settings of the company.
This calendar is just used for QuickBooks information, it will not connect to Google
Calendar or any other outside calendar applications.

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Add a To Do
1. Select the QuickBooks Calendar icon on the Home page.
2. Select Add To Do.

3. Select the appropriate to do Type, Priority, and Due Date.

4. Enter the Details and an appropriate Status.
5. Select OK.

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How to Find a Transaction
What if you make a mistake on an invoice or a check? Can you retrieve the original
transaction and make the necessary changes? Yes! QuickBooks lets you retrieve and
change transactions using the methods discussed in this chapter.
Previous/Next Buttons
Use the Previous/Next buttons to locate recently entered transactions.

Use Previous/Next Buttons

1. Display the appropriate form.
2. Select the Previous or Next button until the original transaction shows on the
screen.

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Find Button
QuickBooks has a Find button on checks, invoices, bills, estimates, sales receipts,
credit card charges, purchase orders, credit memos, and sales orders. Use the Find
button to quickly locate transactions.
1. Display the appropriate form.
2. Select the Find button on the toolbar at the top of the form.

3. Enter the information you want to search for.

4. Select the Find button.

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Use Simple Find
1. Select Edit:Find from the menu. (Keyboard shortcut: Control + F)
2. Select the Simple tab.
3. Enter information you want to search for.
4. Select the Find button.
5. Double select to open the transaction.

Use Advanced Find

1. Select Edit:Find from the menu. (Keyboard shortcut: Control + F)
2. Select the Advanced tab.
3. Choose the Filter(s). (e.g., Amount, Name or Memo)
4. Enter information you want to search for.
5. Select the Find button.
6. Double select to open the transaction.

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Find Names and Transactions Using Centers
Find Name In a Center
1. Select Vendors/Customers/Employees from the Home Page, then select the first
tab.
2. Select the name in the list to the left.
Note: If you can’t remember the name, you can search for an address or other
information. Select the magnifying glass to see the results.

3. Once you’ve selected the name, the transactions tab will be visible. Choose what
type of transactions to view, and filter by status and date.
4. Double select to open the transaction.

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Find Transaction in a Center
1. Select Vendors/Customers/Employees from the Home Page.
2. Select the Transactions tab.
3. Make appropriate selections from the drop-down arrows.

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QuickBooks Search
QuickBooks Search helps you find list entries, transactions, and menu items. Not sure
how to access a feature? Not sure which list a name is on? Use Search to find it quickly.
Set Search Preferences and Update Search Index
1. Select Edit:Preferences from the menu.
2. Select Search.
3. Select the Company Preferences tab.
4. Select Update automatically and choose the frequency from the dropdown.

Use QuickBooks Search

1. Select Edit:Search from the menu.
2. Enter the information in the Search field.
3. Narrow your search by using the search filters provided.
4. Press Enter or select the magnifying glass.

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QuickBooks Keyboard Shortcuts

General Action Data Entry

Shortcuts Shortcuts Action
F2 or Ctrl + Displays important information Esc Closes active window
1 about QuickBooks Tab Moves to the next field
Ctrl + A Chart of Accounts Shift Tab Moves to previous field
Ctrl + W Opens Write Checks window Ctrl + L Opens corresponding list for
Ctrl + I Opens the Create an Invoice current field
window Alt + S Saves a transaction
Ctrl + J Customer Center
Alt + N Saves the transaction opens a new
Ctrl + M Memorize current transaction transaction
Ctrl + T Show Memorized Transaction List Alt + Down Displays the drop down list for
Ctrl + R Goes to active Register, or Register
Arrow that field on a form
selector
Ctrl + X Cuts text in a field
Ctrl + Q QuickReport of list entry
Ctrl + C Copy text in a field
Ctrl + H List of connected transactions
Ctrl + O Copy transaction in a register
Ctrl + Y Accounting background of a
transaction (transaction journal) Ctrl + V Paste transaction in register, or
text in a field
Ctrl + F Find transaction
Ctrl + Alt + Y Copy line in invoice
Ctrl + P Prints the active window
Ctrl + Alt + V Paste copied line in invoice
Alt-Print Takes a screenshot of current
Screen window (don’t forget to paste) Ctrl + Delete Deletes a line in a transaction
Print Screen Takes a screenshot of entire screen Ctrl + Insert Inserts a line in a transaction
(don’t forget to paste) Ctrl + N New transaction/list entry
Ctrl + Tab Toggles between open windows in Ctrl + E Edit transaction/list entry
QuickBooks Ctrl + D Deletes a Transaction (will ask
Alt + Tab Toggles between open applications “Are you Sure?”)
in Windows Up Arrow Moves to line/field above
Diamond Use the diamond on lists to move Down Arrow Moves to line/field below
the entry to another position in the Space Bar Toggle checkboxes on and off
list or to make subaccounts, Home Beginning of current field
sub-times or jobs End End of current field
F1 Help Ctrl + Right Moves cursor one word to the
Arrow right
Date Action
Ctrl + Left Moves cursor one word to the left
Shortcuts
Arrow
+ Increase date
- Decrease date
T Changes date to today’s date
Y Changes date to beginning of year
R Changes date to end of year
M Changes date to beginning of
month
H Changes date to end of month
W Changes date to beginning of week
K Changes date to end of week

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Memorizing Transactions
If you have transactions that occur often, you can save time by memorizing the
transaction. QuickBooks lets you memorize checks, bills, invoices, and many other
transactions.
QuickBooks does not allow memorization of any transactions that require decisions
(bill payments, customer payments or payroll).

Memorize Recurring Transaction for Automatic Entry

1. Enter the transaction to memorize.
2. Select the Memorize button at the top of the transaction.

Note: If you do not see a Memorize button, select Edit:Memorize (Form Name) from
the menu.

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3. Choose how you want QuickBooks to handle the transaction.
4. Enter remaining information in the Memorize Transaction window.
5. Select OK.

Add to my Reminders List The transaction will be added to the Memorized Transactions on your
reminders list. Choose how often to receive the reminder.
Do not remind me The transaction will not be added to your reminders list or automated. Use
for transactions that repeat from time to time. Go to the memorized
transaction list and double-click the transaction to record it.
Automate Transaction When you open QuickBooks, it prompts you to enter the transaction based
Entry on the schedule you choose.
How Often The frequency that QuickBooks will remind or enter the transaction
Next Date The date for the next reminder or the next entry
Number Remaining Including next date, how many times to remind or enter
Days In Advance to Enter Number of days before next date for QuickBooks to remind or enter

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Automatically Enter Memorized Transactions
1. When you open your QuickBooks company file, you’re prompted to select the
transactions to automatically enter.
Note: Opening the company file activates memorized transactions. You must close and
reopen the company file to execute the memorized transaction on the date
created/setup.
2. Choose Enter Checked Now to enter transactions now or Enter All Later to enter
no transactions at this time.
Note: If you do not want a prompt to automatically enter this transaction in the future,
delete it from the Memorized Transactions List.
3. Select OK in the QuickBooks Information window.

View the Memorized Transaction List

1. Select Lists:Memorized Transaction List from the menu.

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Change Memorized Transaction Detail
1. Select Lists:Memorized Transaction List from the menu.
2. Double-click on the transaction you are changing.
3. Enter any changes in the transaction window.
4. Select the Memorize button at the top of the transaction.
5. Select the Replace button to replace the details in the memorized transaction, or
Add to save it as a new memorized transaction
6. Press the ESC key.
7. Select No (to avoid recording the entry before its scheduled date).

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Change Memorized Schedule Details
1. Select Lists:Memorized Transaction List from the menu.
2. Right select the transaction and select Edit Memorized Transaction.
3. Make appropriate changes in the Schedule Memorized Transaction window.
4. Select OK.

Delete Memorized Transaction

1. Select Lists:Memorized Transaction List from the menu.
2. Right select the transaction and select Delete Memorized Transaction.
3. Select OK to confirm the deletion

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 Chapter 9

Sales Tax

Table of Contents Page 127

What is Sales Tax?
Sales taxes are taxes placed on the sale or lease of goods and services. Each
individual state governs sales tax in the United States and there is no national sales
tax.

Set Up Sales Taxes

Tracking sales taxes can be a challenge. For instance, some customers might be
taxable while others are not. Also, you might have to tax customers at different rates
depending upon their location. And finally, some of the things you sell might be
taxable while others are not. QuickBooks can help you track and control sales taxes.
There are five steps to setting up sales taxes in QuickBooks:
1. Turn on sales tax
2. Set up sales tax items and groups
3. Set up sales tax codes
4. Assign a sales tax code to items
5. Assign a sales tax item and sales tax code to customers

Step 1: Turn on Sales Tax

1. Select Edit Preferences
2. Select Sales Tax on the left-hand side
3. Select Company Preferences
4. Select Yes to track sales tax.
5. Select Add Sales Tax Item button to set up your first tax rate. See step 2 for details.
6. Enter the additional information in the Preferences window.
7. Select OK.

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Step 2: Sales Tax Items and Groups
Sales tax items identify the rate and the tax agency for which you collect sales taxes.
There are two types of items for sales tax purposes:
● Sales Tax Items calculate single taxes paid to a single tax agency.
● Sales Tax Groups calculate two or more sales taxes grouped together and applied
to the same sale.

1. Select the Items and Services icon on the Home page.

2. Select the Item button and select New.
3. Select Sales Tax Item or Sales Tax Group as the Type.
4. Enter remaining information in the New Item window.
5. Select OK.
Note: If a rate changes, double select the Sales Tax Item to adjust the rate.
Sales Tax Item

Sales Tax Group

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Step 3: Sales Tax Codes
Some states require more detailed reporting of non-taxable sales. Sales tax codes
classify why a transaction is either taxable or non-taxable.
1. Select the Manage Sales Tax icon on the Home page.
2. Select Open Sales Tax Code List.

3. Select the Sales Tax Code button and select New from the menu.

4. Enter a code under Sales Tax Code.

5. Select the Taxable or Non-Taxable button as appropriate.
6. Select OK.
7. Select Close in the Manage Sales Tax window.

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Step 4: Assign Sales Tax Code to Item
Assign a sales tax code to indicate whether an item is taxable or non-taxable. Assign
Sales tax codes to service, inventory part, non-inventory part, other charge, and
discount items.
1. Select the Items & Services icon on the Home page.
2. Double select the item to edit it.
3. Select the Tax Code drop-down arrow and select the appropriate sales tax code.
4. Select OK.

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Step 5: Assign Sales Tax Item and Code to Customer
Assign a sales tax code to indicate whether a customer is taxable or non-taxable.
Assign a sales tax item to indicate the customer's tax rate. Transactions for
non-taxable customers do not calculate sales tax even if they are purchasing a taxable
item.
1. Select the Customer Center icon.
2. Select the Customers & Jobs tab in the Customer Center window.
3. Double select the Customer.
4. Select the Sales Tax Settings tab.
5. Select the Tax Code drop-down arrow and select the appropriate sales tax code.
6. Select the Tax Item drop-down arrow and select the appropriate sales tax item.
7. Select OK.

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When you record an invoice or a sales receipt, QuickBooks uses the status of the item
and the customer to calculate sales tax. The customers’ status overrides the item
status if the customer is non-taxable.

Taxable Sale

Non-taxable Sale

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Review a Sales Tax Revenue Summary Report
1. Select the Manage Sales Tax icon on the Home page.
2. Select Sales Tax Revenue Summary.

Review a Sales Tax Liability Report

1. Select the Manage Sales Tax icon on the Home page.
2. Select Sales Tax Liability.

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Adjust Sales Taxes
1. Select the Manage Sales Tax icon on the Home page.
2. Select Adjust Sales Tax Due.

3. Enter an appropriate adjustment in the Sales Tax Adjustment window.

4. Select OK.
5. Select Close in the Manage Sales Tax window.

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Pay Sales Taxes
1. Select the Manage Sales Tax icon on the Home page.
2. Select the Pay Sales Tax button.

3. Select the individual items to select for payment.

4. Enter remaining information in the Pay Sales Tax window.
5. If paying electronically on your state's website, enter EFT or other reference as the
starting check number.
6. Select OK.
7. Select Close in the Manage Sales Tax window.
8. You can see the payment in the Checking account register.
Note: If you delete a sales tax payment, the amount goes back into the Sales Tax
Liability.

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 Chapter 10

Money Out I

Table of Contents Page 137

Vendors

Vendors are companies or individuals you purchase goods or services from.

Reasons to Track a Vendor
1. Contractors or subcontractors that are eligible for a 1099
2. To track money owed to companies or individuals
3. To get reports about goods and services purchased from a vendor

Add Vendors
1. Select Vendors from the Home page.
2. Select the New Vendor button and select New Vendor

3. Enter appropriate information in the New Vendor window.

4. Select OK.

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Payment Settings

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Money Out Workflow

Your bookkeeping should accurately mirror the transactions that occur in the real world
as closely as possible. There are two different ways to enter and pay bills. The method
you use depends on if you track accounts payable for a transaction.
Track Your Purchases
There are two ways to record purchases. The method used depends on if you track
accounts payable.
Method 1: Track Accounts Payable
Tracking accounts payable means that you enter the bill before paying the vendor. If
you track accounts payable, you always know how much you owe your vendor.
Steps if you use Accounts Payable: Enter Bill → Pay Bill
Method 2: Open Drawer
If you do not use accounts payable, you directly write the check or enter the credit
card charge. In other words, you do not enter the bill before paying the vendor. With
this method, QuickBooks will not know how much you owe your vendor.
Steps if use Open Drawer method: Write Check or Enter Credit Card Charge

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Advantages of Tracking Bills
● QuickBooks warns about Duplicate Bills
QuickBooks will warn you if you enter a reference number (ref. no.) that has already
been used for that vendor, so you do not double pay.
● Automatically use Discounts/Credits
1. Select Edit: Preferences from the menu.
2. Select Bills.
3. Select the Company Preferences tab.
4. Select the Warn about duplicate bill numbers from the same vendor box.
5. Select the Automatically use credits box.
6. Select the Automatically use discounts box.
7. Select the Default Discount Account drop-down arrow and select the appropriate
account.
8. Select OK.

● Greater Control over Expenses and Financial Statements

Using Bills allows you to realize the expense on the day of the Bill and not the day of
the Bill Payment. This allows you to see both Cash and Accrual based reports. The
expense shows on the Accrual basis report based on the date of the bill and the
expense shows on a Cash basis report based on the date of the bill payment.
● Keep Track of Who you Owe and Bill Due Dates
By using bills, you have access to the Accounts Payable Aging Summary and Detail
reports. Both reports show who you owe, how much you owe them and if you are
overdue. The Summary report shows totals owed to the vendor whereas the Detail
report shows each bill separately.
● Prints Payment Details on the Voucher Stub
By tracking accounts payable, you’re able to see payment details on the voucher stub
such as invoice numbers, due dates, the original amount, amount paid, discounts and
credits, rather than having to add the details all in the memo.

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Method 1: Track Accounts Payable
1. Enter Bill
2. Pay Bill (regardless of how you pay the bill: check, credit card, PayPal, cash, or wire)

Enter Bill
1. Select the Enter Bills icon on the Home page.

2. Select the Vendor drop-down arrow and select the appropriate vendor.
3. Enter remaining information in the Enter Bills window.
4. Select Save & Close.

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Review Unpaid Bills Report
Select Reports:Vendors & Payables:Unpaid Bills Detail from the menu.
Note: Run an Unpaid Bills Detail report to determine what is causing a discrepancy in
your Accounts Payable account.

Review an Accounts Payable Aging Summary

Select Reports:Vendors & Payables:A/P Aging Summary from the menu

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1. Select the Pay Bills icon on the Home page.

2. Select the bills you want to mark as paid.

3. Enter remaining information in the Pay Bills window.

● If you’re making a partial payment on a bill, change the dollar amount in the Amt.
to Pay column.
● If you set the Automatically Apply Discounts or Credits preference, you will see the
discount calculated, and the credit applied when you pay the bill.
● If you did not turn on the Automatically Apply Discounts or Credits, select Set
Discount or Set Credits to manually apply them.
● If you’re paying the bill with a bank account, select Check as the payment method,
and choose Print Check or Assign Check #, for anything other than a printed check.
(Common examples include Debit, Wire, ACH, EFT and PayPal)
● If you’re paying a bill with a Credit Card, choose Credit Card as a method.

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4. Select Pay Selected Bills.

● If you choose print check, you’ll see this window. You can print the checks from this
window or you can Pay More Bills. If you select Done to close this window you
access the print queue from the home page (which you will see in the next section).

● If you chose to assign check #’s, you’ll see this window. This is where you assign
payment details (hand written check numbers, or other payment methods).

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Accessing Print Checks from Home Page
1. Select the Print Checks icon on the Home page.

2. Select the individual checks to select for printing.

3. Select OK.

4. Select the button next to the appropriate Check Style in the Print Checks window.
5. Select Print.
6. Select OK in the Print Checks - Confirmation window
Note: Voucher checks allow you to see the details of the bills paid on the voucher.

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Print Bill Payment Stubs
If you track accounts payable, you can always print out a paper stub, to see the bills
and credits on the bill payment.
1. Select File:Print Forms:Bill Payment Stubs
2. Select the stubs to print in the Select Bill Payment Stubs to Print window.
3. Select OK.

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Method 2: Open Drawer
If you’ve decided to not track Accounts Payable in QuickBooks, or you’ve just paid for
something that didn’t involve a bill, you don’t need to use Bills/Bill Payments. Instead,
all you have to record is a Check or Credit Card Charge. Use Checks anytime you
spend money out of a bank account and you are not entering a bill. Whether you want
to print them through QuickBooks or record a handwritten check, Checks are the right
transaction to record. If you spend money through a credit card use a Credit Card
Charge instead. (You see Credit Card Charges in the next chapter.)

Record a check
1. Select the Write Checks icon on the Home page.
2. Select the Pay to the Order of drop-down arrow and select the payee.
3. For checks to be printed later, select the Print Later box.
For hand-written checks, make sure the Print Later box is NOT checked so you can
enter the handwritten check number.
4. Enter remaining information in the Write Checks window.
5. Select Save & Close.

Print Checks
Print the checks following the steps you learned earlier.

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Hand-written Checks
You still have to record handwritten checks that you wrote outside of QuickBooks so
that they affect your account balances in QuickBooks. Enter the hand-written check
information, using the check # from the hand-written check.

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Making Non-Bill Payments with Electronic Transactions
Anytime you spend money out of a bank account, and you did not use a bill, use this
method. In the No. field, enter in the way you made the payment (e.g. common
examples include Debit, Wire, ACH, EFT and PayPal). How do you enter these
electronic transactions? Use the same Write Checks form, but enter “DEBIT” (or any
other payment method) as the check no. QuickBooks shows the transaction reduces
the balance in your bank account without altering the check number sequence. These
debit card transactions also appear during the bank reconciliation.
Note: These processes do not apply to credit cards, you will see credit cards in the
next chapter.

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Reports
Review Expense by Vendor Summary
Select Reports:Company & Financial:Expenses by Vendor Summary from the menu.

Note: Expenses by Vendor Summary report does not show purchases made with the
items tab.

The following report is only available for people who record bills and bill payments.

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Review a Vendor Balance Detail Report
Select Reports:Vendors & Payables:Vendor Balance Detail from the menu.

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Review Bill Tracker
Select Vendors:Bill Tracker from the menu.

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 Chapter 11

Money Out II

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Using Credit Cards
Add Credit Card Account
1. Select the Chart of Accounts icon on the Home page.
2. Select the Account button.
3. Select New from the menu.
4. Select Credit Card as the Account Type.
5. Select Continue.

6. Enter remaining information in the Add New Account window.

7. Select Save & Close.

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Enter Credit Card Charges
1. Select the Enter Credit Card Charges icon on the Home page.

2. Select the Credit Card drop-down arrow and select the appropriate credit card.
3. Select Purchase/Charge if you’re recording a purchase, or Refund/Credit if you
need to record a refund or a credit.
4. Enter remaining information in the Enter Credit Card Charges window.
5. Select Save & Close.

Note: For Credit Card Payment, use the Write Checks window, not a Bill in
QuickBooks. If paid electronically, enter EFT in the Check No.

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Record Credit Card Payment
1. Select the Write Checks icon on the Home page.
2. Select the Bank Account drop-down arrow and select the bank account you used to
pay the credit care.
3. Select in the expenses tab and choose the credit card account you are paying as
the account.
4. Enter remaining information in the Write Checks window.
5. Select Save & Close.

Note: You can get to the credit card register, by going to Chart of Accounts,
double-clicking the credit card or by pressing Ctrl R while you are entering
transactions.

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Creating Vendor Credit Memos
When a vendor gives you a credit to reduce your accounts payable balance (how much
you owe the vendor), enter a Vendor Credit.
1. Select the Enter Bills icon on the Home page.
2. Select the Credit button at the top of the window in order to reduce the accounts
payable balance for the vendor.
3. Enter remaining information in the Enter Bills window.
4. Select Save & Close.

Review the Vendor Open Balance Report

1. Select the Vendors icon on the Home page.
2. Highlight the vendor.
3. Select the Open Balance link in the vendor record.

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Applying Vendor Credit Memo
1. Select the Vendors icon on the Home page.
2. Select the Pay Bills icon on the Home page.
3. Select the appropriate bills for the payment.

Note: If you have selected the setting for automatically apply credits, QuickBooks will
apply the credit. If you have not selected the setting click Set Credits and choose
which credits to apply.

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4. Enter the appropriate payment details in the pay bills window.
5. Select Pay Selected Bills.

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Vendor Refund
When a vendor gives you a refund that you deposit into your bank account, you
should record a deposit transaction in QuickBooks.
1. Select the Record Deposit icon on the Home page.

2. Select the bank account you are depositing the check in and enter the appropriate
date.
3. Enter the vendor name in the Received From field.
4. In the From Account field use the account that was used on the original transaction.
For example, telephone expense which would reduce the amount of telephone
expense.
5. Enter any notes you would like to see in reporting in the Memo field.
6. Include the Check No. and Payment Method.
7. Enter the amount of the refund.
8. Select Save & Close.

Note: If you deposit the refund with other payments from customers, select the
undeposited funds to include in the deposit as you learned in the Money In I chapter
and on the next blank line type in the vendor refund details.

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Void vs. Delete Checks
Void a check if you used the check number, but the payee will never cash it. Delete a
check if the check was never used in the real world.
Delete a Check
1. Display the appropriate check in the Write Checks window.
2. Enter any notes you would like to see in the Audit Trail reporting in the Memo field.
3. Select Save in the ribbon.
4. Select Edit:Delete Check or Edit:Delete Bill Pmt-Check from the menu.
5. Select OK in the Delete Transaction window.
6. Select Save & Close.

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Void a Check
1. Display the appropriate check in the Write Checks window.

2. Select Edit:Void Check or Edit:Void Bill Pmt-Check from the menu.

3. Enter any notes you would like to see in reporting in the Memo field.
4. Select Save & Close.
5. Select Yes to void the check and enter adjusting journal entries.

Note: If the check was from a prior accounting period, QuickBooks voids the check
and automatically records journal entries replacing it in the past so the previous
periods remain unaffected. This only applies to checks written using expense accounts
(also known as simple checks) and only if you choose “Yes” when QuickBooks asks.

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Reports
Review the Missing Checks Report
1. Select Reports:Banking:Missing Checks from the menu.
2. Select the Specify Account drop-down menu and select the bank account.
3. Select OK.

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 Chapter 12

Banking

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Bank Feeds
Use Bank Feeds to electronically manage bank and credit card accounts directly from
QuickBooks. There are two ways to connect your bank and credit card accounts.
Option 1: Direct Connect
With Direct Connect, QuickBooks receives information directly from your financial
institution and maintains a persistent connection that downloads transactions
whenever they clear. Transactions await your approval in the Bank Feeds Center
before they’re added to the register. This requires the use of a PIN or password
from your financial institution.
Note: Not all banking institutions allow Direct Connect and some banks charge a fee
for this service.

Option 2: Download and Import a Web Connect File from your

Bank/Credit Card’s Website
Some bank/credit card websites let you download records of your financial
transactions as .QBO files. Once you’ve downloaded a .QBO file, you can import it,
and the records it contains, into QuickBooks. This method requires you to download
and import a new file anytime you want to bring new transactions into Bank Feeds.

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Get Started with Bank Feeds (Direct Connect)
1. Contact your financial institution to obtain Login and Password information.
2. Select Banking:Bank Feeds:Set Up Bank Feed for an Account from the menu.
3. Complete the remaining on-screen instructions.

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Get Started with Bank Feeds (Web Connect)
1. Log into your financial institution’s website.
2. Download/Export your transactions for the date range you need as a .QBO file, and
save it in an easily accessible place on your computer.
Note: Some financial institutions call .QBO files QuickBooks files or Web Connect.
3. In QuickBooks, select Banking:Bank Feeds: Import Web Connect file.
4. Select the bank or credit card account the transactions relate to. If you’ve already
created the bank or credit card account on the chart of accounts in QuickBooks,
choose Use an existing QuickBooks account and select the account from the
drop-down menu. If you have not set up the account on your chart of accounts in
QuickBooks, select Create a new QuickBooks account.

5. Select Continue.

6. Select OK.
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Set Preferences
1. Select Edit:Preferences from the menu.
2. Select Checking.
3. Select the Company Preferences tab.
4. Select Advanced Mode.
Note: If you’re using Express Mode, set rule preferences to help QuickBooks “learn”
as you go. Always ask before creating a rule allows you to edit the rule before saving.

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Bank Feeds Center
The Bank Feeds Center stores all transactions downloaded from your financial
institutions. You can add these transactions as new entries on your register, or match
them to transactions you’ve already recorded in QuickBooks.
Note: The first time you use Direct Connect, the financial institution determines how
far back to retrieve transactions. If you download again at a later time, this feature
knows where you left off. For Web Connect: You must put in a date range each time
you download a .QBO file from your bank/credit card.

1. Add Account Add accounts to Bank Feeds

2. Rules View/edit/delete rules applied to banking transactions

3. Connected Accounts View bank and credit card accounts connected to QuickBooks
4. Transaction List Downloaded transactions you need to review

Reviewing Downloaded Transactions

1. Select Banking:Bank Feeds:Bank Feeds Center from the menu.
2. Select the account you want to work with.
3. Select the tab you want to work in (Recognized, Partially-recognized, etc.).
4. You can confirm details for a single transaction through the Action drop-down
menu, or select multiple transactions and confirm them in a batch with the Batch
Actions drop-down menu.
Note: Options vary based on the type of transaction and the tab (recognized vs
unrecognized) you are viewing.

Recognized Tab

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 Batch Actions drop-down options (Recognized Tab)
Add/Confirm If you’ve already entered the downloaded transactions, this matches them to
what you’ve already entered. Matching downloaded transactions to existing
transactions avoids duplicates. If the transactions are new, this adds them to the
register.
Ignore Removes the downloaded transactions from the transaction review list.
Not a Match Tells QuickBooks the transactions don’t match and moves them into the
Unrecognized tab.

Individual Transaction Actions drop-down options (Recognized Tab)

Add/Confirm If you’ve already entered the downloaded transaction, this matches it to what
you’ve already entered. Matching a downloaded transaction to an existing
transaction avoids duplicates. If the transaction is new, this adds it to the
register.
View Details Displays the existing transaction that QuickBooks suggests you match the
downloaded transaction to.
Not a Match Tells QuickBooks the transactions don’t match and moves them into the
Unrecognized tab.
Ignore Removes the downloaded transaction from the transaction review list.

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Matching To Existing Transaction (Recognized Tab)
On the Recognized tab, QuickBooks auto-matches transactions downloaded from your
bank/credit card to transactions you’ve already entered manually into QuickBooks. The
Recognized tab also shows transactions QuickBooks has applied a rule to. You learn
about rules later in this chapter.

You can confirm transactions one-by-one from the Action column or you can batch
confirm transactions by selecting Add/Confirm under the batch actions drop down
menu. This will confirm matches and/or add any transactions QuickBooks applied a
rule to.

If the transaction is not a match for an existing transaction, choose Not a match under
the action drop-down menu, and QuickBooks moves the transaction to the
Unrecognized tab.

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Unrecognized Tab

Batch Actions drop-down options (Unrecognized Tab)

Modify Enters the same Payee, Account, Customer:Job and Memo to multiple
transactions at one time.
Add/Confirm Records the transactions in the bank/credit card account register.
Ignore Removes the downloaded transactions from the transaction review list.

Individual Transaction Actions drop-down options (Unrecognized Tab)

Add Adds downloaded transaction to the register
Add more details Add details not available through the transaction review list, like multiple
accounts (split).
Match to existing Choose a match from transactions you’ve already recorded. Matching a
transactions downloaded transaction to an existing transaction avoids duplicates.
Ignore Removes the downloaded transaction from the transaction review list.

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Adding a New Transaction (Unrecognized Tab)
You use the Unrecognized tab to record transactions that aren’t in QuickBooks yet.
1. Select the Payee drop-down menu > select (or Add New) the customer, vendor,
employee or other name the transaction was with.
2. Select the Account drop-down menu > select (or Add New) the account that best
describes why you received or spent money. Note: this is where the transaction
appears on your financial statements.
3. Select Add to record the transaction into the account register.

(Optional) To save time:

1. Enter details for multiple transactions.
2. Select the checkbox next to each transaction. (See screenshot below)
3. Select Batch Actions > Add/Confirm.

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What if QuickBooks Should’ve Matched Something but Didn’t?
Whenever transactions appear in your Bank Feeds Center, QuickBooks searches
through your transaction history to see if you’ve already recorded it. If it discovers a
match, the transaction appears in the Recognized tab, which you learned about earlier.
If you download a transaction that you’ve already recorded and QuickBooks didn’t find
the match on its own, you can find the match yourself.
1. Select Action drop-down menu > select Match to existing transaction.
2. Enter an amount, type of transactions and/or date to search for the transaction.
3. Select the correct transaction to match with the downloaded transaction.
4. Select Save and add to register.

Note: If you add downloaded transactions that are already in QuickBooks without
matching them, you create a duplicate in the register.

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What QuickBooks Downloads vs What You Enter Manually
Why would you need to manually enter anything into QuickBooks if you can just
download from your connected bank or credit card account? Since Bank Feeds makes
it so easy to enter transactions, it’s tempting to rely on it to record all of your
transactions. However, there are some transactions that you cannot download from the
bank. If you want QuickBooks to print a check, or if you want to record more specific
products and services a customer purchased from you, you’ll need to record those
details through a manually entered transaction.

Transactions you add through Bank Feeds:

● Receive Payment from customers (you should still record this manually if it
applies to multiple invoices, or deposited with other payments)
● Bill Payments (if you paid a bill with a printed check, handwritten check, or used
credits, you should still enter it manually)
● Credit Card Charges
● Credit Card Credits
● Transfers

Transactions you enter manually:

● Invoices
● Estimates
● Sales Receipts
● Refunds & Credits to customers
● Deposits (you can download some vendor refunds without adding manually)
● Checks (printed or handwritten)
● Bills
● Vendor Credits
● Purchase Orders
● Paychecks and Timesheets (you can sometimes download third-party payroll)

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Add a Deposit
If you receive a deposit that doesn’t relate to a sale, such as a refund from a vendor or
an owner’s contribution, you can add it from the Unrecognized tab.
1. Select the Payee drop-down menu > select (or Add New) who you received the
money from.
2. Select the Account drop-down menu > select (or Add New) an account that best
describes why you received the money. Note: For vendor refunds, use the same
account you used when you paid the vendor. This reduces that account’s balance.
3. Select Add.

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Split Transaction
Use “Add more details” to assign more than one account to a transaction.
1. Select the Action drop-down menu > select Add more details.
2. Split the total amount into multiple accounts and/or Customer:Jobs. Select Add
line and enter the amount on each line to reach the total amount of the transaction.
3. Select Save and add to register to record the transaction.

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Ignore Transactions
You may need to ignore downloaded transactions, such as duplicates or transactions
that took place before you chose to start tracking an account.
Reasons to Ignore Transactions
1. If you download transactions you’ve already included in a reconciliation (you learn
about reconciliations later). You cannot reconcile a transaction twice, so ignore to
avoid a duplicate.
2. If the bank sent the transaction more than once.
3. If the transaction happened before the date you chose as the starting point for the
account. Whenever you set up a new bank or credit card account you have to
choose an opening balance date, and enter your balance on that account on that
date. If you record any transactions that happened before that date, it’s like
recording it twice.

To ignore one transaction:

1. Select the Action drop-down menu.
2. Select Ignore.

To ignore more than one transaction:

1. Select the checkboxes next to each transaction you want to ignore.
2. Select Batch actions.
3. Select Ignore.

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Recording Owner’s Personal Expenses
It’s tempting to ignore personal expenses; however, you need to record all transactions
from your bank and credit card accounts in order to reconcile the account. During a
reconciliation, you compare your bank statements to what you have in QuickBooks to
make sure you’ve recorded everything that happened in that account. If you ignore
ANY transaction that appears on your statement, you’ll not be able to reconcile.
Instead of ignoring these transactions, you can use an equity account to properly
record the transaction. Most businesses have an equity account named Owner’s Draw
that you use for these kinds of personal purchases. If you do not have this on your
Chart of Accounts, you can easily create a new equity account with this name.

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Transfers
Transfers represent the movement of money from one bank account to another. You
can download and add them to QuickBooks without entering them manually first. If
you transfer money between two bank accounts that you’ve connected to bank feeds,
then you only need to Add the transfer for one account. It will show up in the
Recognized tab for the other account.
Add/Match Transfers
1. In the Account field, select the account the money came from (if the amount
appears in the Deposit column) or the account the money went to (if the amount
appears in the Payment column).
2. Select Add.
3. If the other bank account is also connected to bank feeds, confirm the match in the
Recognized tab for that bank account

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Credit Card Payments
If you pay your credit card balance online, with a debit card or with a bank transfer, the
payments will download to the Bank Feeds Center.

Add Credit Card Payments

1. Select the Payee drop-down menu > select (or Add New) the name of the vendor or
other name you paid.
2. Select the Account drop-down menu > select the credit card account you paid.
3. Select Add.
4. If the credit card account is also connected to bank feeds, confirm the match in the
Recognized tab for that credit card.

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Review Rules
1. Select Rules.
2. To add a rule, select + Add Rule. Enter the appropriate information, and select
Save.
3. To edit a rule, double-click the rule, make changes, then select Save.

Note: If QuickBooks asks you to set up a rule, always review/edit the rule to be sure
that you approve what QuickBooks created for you.

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 Chapter 13

Reconciliation

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Reconcile a Bank Account
In QuickBooks, you reconcile bank and credit card accounts to make sure your records
match the bank’s. This helps you locate errors in QuickBooks. You should reconcile
bank and credit cards each month when you receive their statements.

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Compare your Statement to QuickBooks
1. Get your bank statement from the bank/credit card company
2. Select the Reconcile icon on the Home page.

3. Select the Account drop-down menu and select the bank or credit card account
you want to reconcile.
4. Enter appropriate information in the Begin Reconciliation window.
5. Select Continue.

Tip: When reconciling, you must make what you see in QuickBooks match what is
on your statement.
● Work through one section at a time, starting with Deposits and Other Credits (for
example). Statements typically group transactions into three sections: Total
Deposits, Checks, and Other.
● Starting with the Deposits, your goal is to make the total value for the Deposits
and Other Credits in QuickBooks match the total value you see on the statement.

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● If a transaction is different from how it appears on the statement, double-click it
and edit it. Select Save once you've made it match the statement.
6. Select the items that cleared the bank. Once there is zero difference between what
you have in QuickBooks and what appears on the statement, select Reconcile Now.
7. Select the type of reconciliation report you want to keep for your records.
8. Select Print/Display.

Reconciliation Reports

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What if your difference is not zero?
In a reconciliation, discrepancies (or differences) mean that something in QuickBooks
doesn’t match the statement. Use the list below of potential problems/solutions to
successfully complete the reconciliation.

Problem Solution
Incorrect beginning balance If this is your first reconciliation, add or
edit the beginning balance from the
register.
If this is not your first reconciliation,
consult the Locate Discrepancies report.
Missing or extra cleared transactions Unselect transactions that do not appear
on your statement and/or record missing
transactions and select them.
Transactions entered for the wrong Double-click the transaction and correct
amount or date the dollar amount or date.
Incorrect ending balance Select Modify to edit the ending balance
using the correct balance from the bank or
credit card statement.

Locate Discrepancies
QuickBooks provides an easy way to locate and fix bank account reconciliation
discrepancies. You can undo the last reconciliation or restart the reconciliation of a
selected account. You can run a Discrepancy Report as well as previous reconciliation
reports. Note: QuickBooks Pro only lets you print a copy of the most recent
reconciliation report.
1. Select the Reconcile icon on the Home page and select the appropriate account.
2. Enter appropriate information in the Begin Reconciliation window.
3. Select Continue.
4. Select Modify.

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5. Select Locate Discrepancies.

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Register Tips
1. Select Chart of Accounts.
2. Double-click a bank or credit card account.
3. Reconciled transactions display a checkmark in the checkmark column. Transactions
downloaded and added/matched from bank feeds display a lightning bolt, which
means they are pre-reconciled for the next reconciliation.

Note: To see transactions grouped by status, select the Sort By drop-down menu on
the bottom left and sort by Cleared status. Sort the transactions by amount to view
any duplicate transactions.

Do not delete or edit reconciled transactions. Doing so disrupts future reconciliations.

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Tips on the Reconciliation Window

1. In the top right corner, choose to Hide transactions after the statement’s end date
to remove any transactions not in the statement date range.
2. Double-check the Beginning Balance and make sure that the number of deposits
and other credits/checks and payments are the same as what’s on your statement.
3. If you have the account connected to bank feeds, you see a Matched button.
Select it and enter the statement end date to select all of the transactions you
matched or added from the bank feeds window.
4. Select Modify to correct information like Statement Date and Ending Balance.

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 Chapter 14

Security and
Multi-User

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Users
Users on the QuickBooks Desktop have varying permissions within the account. Depending on
the type of user set up, one would have access to different responsibilities within the Desktop
account.
● Help you track who makes changes
Admin
When you set up a new company, QuickBooks automatically sets up an admin user.
This one user has unlimited access to all of QuickBooks. The Admin is the only user
who can:
● Add new users
● Change a user's access privileges
● Import and export data*
● Change company info and preferences*
● Set and change the closing date and password*
● Create portable company files*
*An External Accountant user can also perform these tasks.

Add Details to an Admin User

1. Select Company:Set Up Users and Passwords:Set Up Users from the menu.

2. Enter the admin’s name as the Admin’s Name.

3. Enter the admin’s password as the Admin’s Password.
4. Enter the admin’s password as the Confirm Password.
5. Select a Challenge Question and enter a Challenge Answer.
6. Select Next, and then select Finish.
7. Select Close.

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Add a New User
The QuickBooks Admin can add users to the company file and assign user security
levels. You can set up your accountant as an External Accountant user. An External
Accountant user can access all areas of QuickBooks, but can’t view sensitive customer
information, such as credit card numbers.
Note: You can have as many users in a company file as you would like, this is not the
same as User Licenses.
Add a New User (Pro and Premier)
1. Select Company: Set Up Users and Passwords: Set Up Users from the menu.
2. Enter the administrator password (if prompted) and select OK.
3. Select the Add User button.
4. Enter the new user's name as the User Name.
5. Enter the new user's password as the Password.
6. Enter the new user's password as the Confirm Password.
7. Check the box if you want to add this user to your license.
8. Select the Next button.
9. In the first screen, select the user’s access level: Selected areas of QuickBooks, All
areas of QuickBooks, or External Accountant.
10. Select the appropriate level of access in the following windows.
11. Select Finish in the last window.
12. Select Close.

Add a New User (Enterprise Solutions)

1. Select Company: Users: Set Up Users and Roles from the menu.
2. If prompted, enter the appropriate Password and select OK.
3. Select New.
4. Enter the user’s name as the User Name.
5. Enter the user’s password as the Password (optional).
6. Enter the user’s password as the Confirm Password.
7. Select a role from the list of Available Roles and select Add.
8. Repeat Step 7 to assign additional roles.
9. Select OK.
10. Select Close.
Note: Now that you have set up various users, you can run your account in Multi-User
mode. To Log Off, select File: Close Company/Logoff

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What is multi-user mode?
Benefits of Multi-user mode
● Multiple people can work in the file at the same time, so they don’t have to trade
the company file back and forth.

Requirements to use Multi-User Mode

● Install QuickBooks on a computer that is networked with your other computers.
● Or install on a server that is networked with all of your other computers.
● Or contact Right Networks to set up remote hosting.

Drawbacks of Multi-User Mode

In most QuickBooks editions, you must be in Single-user mode to perform certain
actions. These actions include:
● Some types of changes to lists (such as deleting, merging, and sorting)
● Change company preferences
● Create or work with accountant's copies
● Condense or rebuild data
● Import or export data
● Create portable company files
● Adjust inventory

QB Version Number of Simultaneous Users

QuickBooks Pro up to 3

QuickBooks Premier up to 5

Enterprise Gold & Platinum up to 30

Enterprise Diamond up to 40

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How to use multi-user mode…
Switch to Multi-user Mode
1. Select File: Switch to Multi-user Mode from the menu.
2. Select OK.

Switch Back to Single User Mode

1. Select File: Switch to Single-user Mode from the menu.
2. Select OK.

Log in as another user

1. Log out as current user (select File: Close Company/Logoff)
2. Select File: Open or Restore Company from the menu.
3. Select Open a company file (.QBW).
4. Select Next.
5. Select the name of the appropriate company file.
6. Select Open.
7. Enter the User Name and the Password.

8. Select OK.

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Audit Trail
An important part of accounting is tracking the transactions added, changed, or
deleted during a time period…and by whom. QuickBooks provides this information
through the Audit Trail report.
Review an Audit Trail Report
Select Reports: Accountant & Taxes:Audit Trail from the menu to view Additions,
Changes, Deletions and more on transactions.

Audit Trail with Modification

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Audit Trail with Deletion

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 Chapter 15

Reports

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Report Center
The Report Center helps locate and run reports that show the information you need.
Open Report Center
1. In My Shortcuts on the left icon bar, select Reports.

2. Select the appropriate report group to the left.

3. To open a report, select the Run icon below the report preview.
Note: The Contributed tab allows access to shared reports from other QuickBooks
users.

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Columns
Modify Report Columns
1. Run the appropriate report. Select Reports:Customers & Sales:Customer Phone
List.
2. Select the Customize Report button.

3. Change appropriate information in the Modify Report window.

4. Select OK.

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Sorting
Sort Report
1. Run the appropriate report.
2. Select the Customize Report button.

3. Select the drop-down arrow next to Sort by to select the sort field.
4. Select the appropriate button next to Sort in.
5. Select OK.

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Column Width & Order
Change Column Width
1. Run the appropriate report.
2. Select and drag the divider between column headings to the left or right.

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Change Column Order
1. Run the appropriate report.
2. Select and drag the column title over the diamond between column headings.

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Filter Reports
1. Run the appropriate report.
2. Select the Customize Report button.
3. Select the Filters tab.

4. Change appropriate information in the Modify Report window.

5. Select OK.

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Header/Footer
Change Header/Footer
1. Run the appropriate report.
2. Select the Customize Report button.
3. Select the Header/Footer tab.

4. Change appropriate information in the Modify Report window.

5. Select OK.

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Fonts & Numbers
1. Run the appropriate report.
2. Select the Customize Report button.
3. Select the Fonts & Numbers tab.

4. Select the appropriate report element in the Change Font For list.
5. Select the Change Font button.

6. Enter appropriate information in the window.

7. Select OK.
8. Select whether to change all related fonts.
9. Enter remaining information in the Customize Report window.
10. Select OK.

Note: You can change the font size in a report by right clicking the part you want
to change fonts for.
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Report Preferences
Report preferences allow you to customize and format reports for your business needs.

Set Report Preferences

1. Select the Edit menu and select Preferences.
2. Select Reports & Graphs in the list to the left.
3. Select the Company Preferences tab.

4. Select Format.

5. Change the Header/Footer or Fonts & Numbers on reports.

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Memorizing
Memorize a Report
1. Run the appropriate report.
2. Make appropriate changes to the report.
3. Select the Memorize button.

4. Enter the report name in the Memorize Report window.

5. Select OK.

Report Groups
QuickBooks lets you display/print multiple reports at one time. To do so, create a
Memorized Report Group. Once you add a group, you can click and drag memorized
reports to make them part of a group. You can also add a report to a group when you
memorize the report.

Add a Memorized Report Group

1. Select Reports:Memorized Reports:Memorized Report List from the menu.
2. Select the Memorized Report button.
3. Select New Group from the menu.

4. Enter the Name in the New Memorized Report Group window.

5. Select OK.
Note: If you make any changes you can memorize the report again and choose either
replace (to replace the existing report) or new (to create a 2nd memorized report).
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Add Memorized Report to Group
1. Display the report you want to add to the group
2. Select Memorize
3. Check Save in Memorized Report Group
4. Select the group you want to add it to in the drop down

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Display/Print a Memorized Report Group
1. Select Reports:Process Multiple Reports from the menu.

5. Select the reports to display/print in the Process Multiple Reports window.

6. Change the From and To dates of the reports as appropriate.
7. Select Display or Print.

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Working with Microsoft® Excel®
QuickBooks lets you create custom reports in Excel without having to re-enter the data.

Export a Report to Excel

1. Run the appropriate report.
2. Select the Excel button.
3. Select whether to create a new worksheet or update an existing worksheet from
the menu.
4. Select the Advanced button to modify the transfer options.

Note: Select Advanced to remove spaces between columns before exporting.

5. Select the Export button.
6. QuickBooks automatically runs Excel and displays the report.

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Table of Contents Reconciliation - Chapter 12 Page 213
Update Report Data
QuickBooks makes it easy to update report data in Excel if the QuickBooks data
changes after export. The first time you do this, you must have your QuickBooks
Company File open.

Update Report in Excel

1. Save the report in Excel.
2. Select the QuickBooks tab and select Update Report.

3. Select Browse to select the location of your company file (if necessary).
4. Select the drop-down arrows to change the date range for the report
(if necessary).
5. Select Update.

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Export Report-Considerations
If you make changes to your exported report, Excel only keeps certain changes:
● Renamed report titles
● Font formatting in row and column headers
● Resized columns
● Renamed column and row headers
● Inserted rows and columns with information entered
● Formulas (the updated report must contain the row associated with the formula)
● Inserted text
Any time you make the following changes to your exported report you will have to
manually update the excel file:
● Font formatting in non-header cells
● Formatting other than changes to Font
● Moved data cells

Formula Errors
If you entered a formula in your Excel report and you receive an error when you
update the report, you have two choices:
1. Close the workbook without saving to retain the report before the update.
2. Save the report on Sheet1 to keep the updated report without the formula.

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 Chapter 16

Accounting
Tasks &
Procedures
Table of Contents Page 216
Backup Data Files
You should make regular backups of your QuickBooks company files and keep these
backups off-site. This ensures you will always have a recent copy of your critical
accounting records should a data loss occur.
QuickBooks makes this easy with options for setting the reminder frequency for
backups, verifying data integrity, and scheduling backups at set intervals. You can also
use Intuit’s online backup service (additional fees apply).

There are four ways to backup your company file in QuickBooks:

1. Backup online
2. Manual backup
3. Automatic backup
4. Scheduled backup

Back Up Company Data File

1. Select File: Back Up Company: Create Local Backup from the menu.
2. Select the Options button.
3. Set the backup location and other options and select OK.

4. Select Next.
5. Select when to back up, select Next.

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6. If creating a manual backup, select Save.
If creating an automatic or scheduled backup, set options and create a schedule.

7. Select Finish.

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Restore Data Files
Restoring data files means recreating a company data file from a backup copy. You
may do this for several reasons.
● You have a damaged company file.
● You have a damaged hard drive on your computer.
● You wish to review your company data as it stood at an earlier date.

1. Select File:Open or Restore Company from the menu.

2. Select Restore a backup copy.

3. Select Next.
4. Select Local backup or Online backup.
5. Select Next.
6. Select the backup file being restored in the Open window.
7. Select Open.
8. Select Next.
9. Select an appropriate Restore To location.
10. Select Save.
11. Enter the User Name: and Password: in the QuickBooks Login window
(if the file is password protected).
12. Select OK in the QuickBooks Information window.

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Updating QuickBooks
Versions
QuickBooks releases a new version of the software approximately every year. A new
version adds new features and improvements. Intuit charges a fee for the purchase of
a new version. Contact Intuit for current prices.
After you install the new version, QuickBooks asks you to update your data file to the
new version. By typing “YES”, QuickBooks automatically updates your file to the new
version. Once you update the file, you can no longer open the data file in the previous
version.
Maintenance Releases
Intuit occasionally creates maintenance releases for an existing version of QuickBooks.
A maintenance release usually corrects problems in QuickBooks not discovered until
after distribution of a new version. Also, Intuit might add features that were not
available at the time of the release of the version. Intuit does not charge a fee for
maintenance releases.
To determine the current version and release of QuickBooks, display the Product
Information window.

Display the Product Information Window

Press the F2 key or hold down the Ctrl key and press 1 on the keyboard.

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Getting Maintenance Releases
You should download the current maintenance release for your QuickBooks version.
You must install the update on every computer that will run QuickBooks in a multi-user
system. You can share updates with other users in a multi-user environment.
There are three ways to get the latest maintenance release.
1. Get updates automatically, via the QuickBooks Update Service. By turning on the
Automatic Update feature in the Update QuickBooks window, QuickBooks will
automatically download a new maintenance release when available.
2. Check for and download updates using the QuickBooks Update Service when you
want. You should check for updates once a month to keep QuickBooks current.
3. Manually download and install the latest maintenance release from the QuickBooks
website.

Turn On/Off Automatic Update

1. Select Help: Update QuickBooks Desktop from the menu.
2. Select the Options tab.
3. Select the Yes or No button next to Automatic Update.
4. Select to select the appropriate updates in the Update QuickBooks window.
5. Select Save, then Close.

Check For and Download Updates

1. Select Help:Update QuickBooks Desktop from the menu.
2. Select the Update Now tab.
3. Select the Get Updates button.
4. Select the Yes button when exiting QuickBooks (if prompted).

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Year-End Steps
You can keep as many years of data in QuickBooks as you wish. However, there are
certain procedures you should follow at year-end. In this chapter, you learn 3 steps to
complete in QuickBooks at year-end. Consult your accounting professional regarding
all year-end procedures your company must complete.
1. Set a closing date and password to restrict users from a prior period.
2. Provide your accountant with your QuickBooks financial information using a
method such as the Accountant’s Copy.
3. Incorporate changes from accountant.

Set a Closing Date

This year-end procedure involves restricting user access to prior accounting periods
and setting a closing date and password. To make a change to a prior period, a user
must have access and must know the closing date password.
1. Select Company:Set Closing Date from the menu.

2. Select Set Date/Password.

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3. Enter a Closing Date.
4. Enter the password as the Closing Date Password.
5. Enter the password as the Confirm Password.
6. Select OK.

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Restrict User Access to Prior Period
1. Select Company:Set Up Users and Passwords:Set Up Users from the menu.
2. Enter the Password in the QuickBooks Login window.
3. Select OK.
4. Select the appropriate user.
5. Select the Edit User button.
6. Select the Next button until you see the Changing or Deleting Transactions
window.

7. Select if the user can change or delete transactions prior to the closing date.
8. Select Finish.
9. Select Close
No Access to Prior Transactions

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Financial Info to Accountant
The Accountant's Copy is an efficient way to work with accountants that use
QuickBooks. With this process, you can give a special copy of your data file to your
accountant to enter adjustments. Meanwhile, you can continue to work on your
original data file. When the adjustments are complete, the changes are imported into
your original data file.
There are restrictions on you and your accountant while an Accountant’s Copy exists.
For a list of restrictions, search for “Accountant’s Copy” in the QuickBooks Help
system.
Use a Dividing Date to ensure changes you make in the current period don’t conflict
with changes your accountant is making in a prior period.
Create Accountant’s Copy
1. Select File:Send Company File:Accountant’s Copy:Save File.
2. Select Next.

3. Select a Dividing Date for the Accountant’s Copy.

4. Select Next.
5. Select OK.

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Incorporate Accountant’s Changes
If you use the Accountant’s Copy, you can import your accountant’s changes into your
QuickBooks data file.
If you are not using the Accountant’s Copy, you can incorporate your accountant’s
changes into QuickBooks in several ways. For example, your accountant might send
you a list of year-end journal entries and ask you to enter them into QuickBooks. Or,
your accountant might travel to your office to enter year-end journal entries.
Consult with your accountant to determine the most efficient way of entering their
changes in QuickBooks.

Import Accountant’s Changes

Select File:Send Company File:Accountant’s Copy:Import Accountant’s Changes from
File.

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 Chapter 17

Payroll Setup

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Payroll Setup
Perform these four steps to set up payroll from scratch:
1. Review and Select Payroll Service
2. Payroll Setup Interview
3. Create Payroll Schedules (optional)
4. Set Payroll Preferences

Step 1. Review and Select Payroll Service

Options can be found on the QuickBooks website at
https://quickbooks.intuit.com/payroll/desktop/
* Intuit’s payroll services are compatible with the latest version(s) of QuickBooks. However, supported
versions are subject to change.

Step 2. Payroll Setup Interview

QuickBooks has a Payroll Setup Interview that walks you through the process of
setting up your payroll. If you have not started using QuickBooks payroll, use the
Interview.
Start QuickBooks Payroll Setup
1. Select Employees:Payroll Setup from the menu.

2. Select the appropriate option.

3. Select the Continue button.
4. Enter appropriate information into the windows displayed by QuickBooks.

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Step 3. Create Payroll Schedules (optional)
Payroll schedules define when you should run payroll so that you can pay employees
on their payday. QuickBooks gives you the option to use Payroll Schedules.
1. Select the Lists: Payroll Schedule Lists
2. Select New from the menu.

3. Enter appropriate information into the window.

4. Select OK.

5. Select Yes to assign employees with the same pay frequency to the payroll
schedule (if prompted).
6. Select OK in the QuickBooks Desktop Information window.

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Step 4. Set Payroll Preferences
1. Select Edit:Preferences from the menu.
2. Select Payroll & Employees.
3. Select the Company Preferences tab.

4. Select Pay Stub & Voucher Printing to customize your Payroll printing settings.

Select the Employee Defaults button and enter any details you want to apply to new
employees you set up in your company.
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5. If your company needs job costing information for payroll expenses, select Job
Cost.
6. Select OK.

Payroll Items
Item Type Description Example
Compensation Hourly or salary wage, commission, or Straight Time, Salary,
bonus paid to employee Sales Commission, Bonus

Insurance Benefits Taxable and pre-taxable Insurance Health Insurance, Sec 125 Insurance,
benefits Dental Insurance

Retirement Benefits Employee benefits related to 401(K) Plans, Simple IRA

retirement

Paid Time Off Vacation and sick time used on a Vacation Salary, Vacation Hourly, Sick
paycheck Hourly

Other Additions Other common additions to a Mileage Reimbursement, Employee

paycheck Advance

Other Deductions Other common deductions from a Wage Garnishments, (e.g. Child
paycheck Support Orders), Union Dues

Custom Payroll items not falling within State Income Tax, State
another type Unemployment Tax

QuickBooks uses Payroll Items for anything that affects the amount on a payroll check
and for company expenses related to payroll. After turning on QuickBooks Payroll, you
can add payroll items as needed. When you add an item, you can use EZ Setup or
Custom Setup. Real World Training recommends EZ Setup.

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Payroll Item Types
Add Payroll Items
1. Select Lists: Payroll Item lists
2. Select the Payroll Item List button, then New.

3. Select EZ Setup and select Next.

4. Select one of the top payroll item types and select Next.

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5. Enter remaining information in the Add New payroll item windows.
6. Select Finish.
Note: EZ Setup uses preset standard settings. To get more detailed questions during
setup, always edit the payroll item after it has been created. Most payroll problems
originate from incorrect or incomplete setup.

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Edit Payroll Items
1. Select Lists: Payroll Item lists
2. Select the payroll item to edit.
3. Select the Payroll Item button.
4. Select Edit Payroll Item from the menu.

5. Enter remaining information in the Edit payroll item windows.

6. Select Finish.

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Employees
1. To Add / Edit Employees… select Employees.

2. Select the New Employee button, or double-click to edit an existing employee.

3. Enter appropriate information in the New or Edit Employee window.
4. Select OK.

Personal Information

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Address and Contact Information

Employment Information

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Payroll and Compensation Information

Federal Taxes

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State Taxes

Sick & Vacation Information

Note: Options for sick and vacation hours are the same.

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Hours Available How many hours the employee has
available. You can enter the amount or
change as needed.
Hours Used Number of hours employee has used
Year Begins On The beginning of the year is set per
employee. It relates to the accrual period
as well as the reset.
Accrual Period: Beginning of the year Lump sum of hours given at the
beginning of the year (does not accrue
over time). (see Year Begins On)
Accrual Period: Every paycheck Hours accrue each paycheck
Accrual Period: Every hour on paycheck Hours accrue based on the hours in the
paycheck.
Maximum number of hours Limits maximum available hours at any
point in time.
Reset hours each new year Check the box if you have a “use it or
lose it” policy.
Begin accruing time on Accrual begins after a specified date to
allow for a probation period.

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 Chapter 18

Time Tracking

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Set Up Time Tracking
Benefits of Time Tracking in QuickBooks
QuickBooks lets you track the time an employee, subcontractor, or owner spends on
each job. Once you enter the time, you can use the information in several ways.
Note: It is not necessary to have payroll to use time tracking.
● Invoice the customer for actual time worked on jobs
● Print reports showing the time spent on jobs
● To run accurate time reports, you must enter time in the timesheet rather than
entering it directly onto a paycheck
● Prefill employee paychecks with entered time

Set Time Tracking Preferences

Turn on Time Tracking and set the first day of your work week by setting time tracking
preferences. If you have QuickBooks Premier or Enterprise Solutions, you can also
activate invoicing from a list of time and expenses.
5. Select Edit:Preferences from the menu.
6. Select Time & Expenses.
7. Select the Company Preferences tab.
8. Change appropriate information in the Preferences window.
9. Select OK.

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Enter Weekly Timesheet
QuickBooks lets you track the time employees or subcontractors spend on each job.
You can use the time to pay employees, pay subcontractors, and invoice customers.
Entering time alone does not update job costing reports.
Note: Timesheets are a non-posting transaction (this means it does not affect your
reports).
1. Select the Enter Time icon on the Home page and select Use Weekly Timesheet
from the drop-down arrow.
● Make sure the date range is correct.
● Select the Name drop-down arrow and select the appropriate employee.

4. Enter remaining information in the Weekly Timesheet window.

5. Select Save & Close.

Weekly Timesheet (Subcontractor)

Note about Subcontractor Timesheets

● Recording time is not enough for it to translate to financial reports.
● There are no payroll items on timesheets for Subcontractors. The costs flow to the reports
from the vendor transactions you create.
● The rate paid to the Subcontractor comes from service items.

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Print Timesheets
Print timesheets for your records or for review and approval.
1. Select the Enter Time icon on the Home page and select Use Weekly Timesheet
from the drop-down arrow.
2. Select the Print drop-down arrow and select Print.

3. Enter appropriate Dates in the Select Timesheets to Print window.

4. Select on the individual timesheets to select for printing.
5. Select OK.
6. Select Print.

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Invoice for Time
1. Select the Create Invoices icon on the Home page.
Note: For QuickBooks Pro, after you select Create Invoices, enter the customer's name
and it takes you directly to the choose Billable Time and Cost window.
2. For QuickBooks Premier and Enterprise Solutions, select Invoice for Time &
Expenses from the list.

3. Select the appropriate customer or job from the list.

4. Check the box next to Let me select specific billables for this Customer:Job.
5. Select Create Invoice.

6. Select the time to bill in the Choose Billable Time and Costs window.
7. Select Options to make additional decisions about the time to be invoiced and
select OK.

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8. Select OK.

9. Enter remaining information in the Create Invoices window.

10. Select Save & Close.

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Time Reports
Review a Time by Name Report
1. Select Reports:Jobs, Time & Mileage:Time by Name from the menu.
2. Select the Customize Report button.

3. Select the boxes next to Billed, Unbilled, and Not Billable.

4. Select OK.

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Review a Time by Job Detail Report
Select Reports:Jobs, Time & Mileage:Time by Job Detail from the menu.

Review a Job Profitability Detail Report

1. Select Reports:Jobs, Time & Mileage:Job Profitability Detail from the menu.
2. Select the Customer:Job drop-down arrow, select the appropriate customer or job,
and select OK.

Note: Only income shows after invoicing. Costs show after paying employees as you learn in the next
chapter.

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 Chapter 19

Running
Payroll

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Create Paychecks
1. Select the Pay Employees icon on the Home page. Or select the Payroll Center
icon on the Home page. Enter Payroll information.

1. Employee tab Select this tab to view details about Employees. This tab allows access
to edit existing, create new, and remove employees, as well as add
time worked.
2. Transaction tab Select this tab to view transactions related to employees, including
payroll paycheck details, liability checks, as well as liability and
year-to-date adjustments.
3. Payroll tab Create new and view prior payroll and liability check details on this tab.
See details below for information about individual tab actions.
4. Pay Employees tab Create new and view prior payroll run details on this tab.

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5. Pay Liabilities tab Create new liability and tax checks on this tab and view tax and liability
payment history on this tab.

6. File Forms tab Create and file tax forms from this tab. You can also view historical
forms that you have created and filed here as well.

7. Subscription Statuses Under this heading will be the subscription type your company has
purchased for QuickBooks Desktop payroll.
2. If using payroll schedules, select Scheduled Payroll for payment. Then select Start
Scheduled Payroll. If not using payroll schedules, select Unscheduled Payroll. Then
select the employees to pay in the Enter Payroll Information window.

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3. Enter and review hours in the Enter Payroll Information window.

Scenarios for Unscheduled and Schedule Payroll

Scenario Scheduled or Unscheduled
Creating paychecks for regular pay cycle Scheduled
A bonus check, not included in a regular Unscheduled
paycheck
Additional check for hours missing on a regular Unscheduled
paycheck

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Note: If you enter additional hours here, they will not show up on time reports. Time
reports only include time entered on timesheets.
4. Select Continue.
5. Review information in the Review and Create Paychecks window.
6. To make a change, select the employee’s name.

7. Select Save & Close to save changes.

8. Select the Create Paychecks button.

9. Select whether to Print Paychecks and/or Print Pay Stubs in the Confirmation and
Next Steps window.
10. Select Close.

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Print Paychecks
You can print a paycheck while reviewing it in the Paycheck window. This method
works well if you are printing only one or two checks. If you are printing several
paychecks at once, you can select the Print:Print Paychecks button in the Payroll
Center or select File:Print Forms:Paychecks from the menu.

Print Paychecks
1. Create paychecks as usual.

2. Select Print Paychecks in the Confirmation and Next Steps window.

3. Select Print.

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Print Pay Stubs
Print pay stubs from the Confirmation and Next Steps window, or select the
Print:Print/Email Paystubs button in the Payroll Center, or select File:Print Forms:Pay
Stubs from the menu.
1. Create paychecks as usual.

2. Select Print Pay Stubs in the Confirmation and Next Steps window.
3. Select pay stubs to print, select Print, and select Print again.

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Pay Liabilities & Taxes
When you create paychecks, QuickBooks calculates taxes for you and calculates due
dates based on your payment schedules. You enter the payment schedule for each
liability when you add a payroll liability item. QuickBooks shows the due dates for the
payments and warns you when your liability payments are overdue.

1. Select the Pay Liabilities icon on the Home page.

2. In the Pay Taxes & Other Liabilities section of the window, select the tax or liability
to pay in the list.
3. Select the View/Pay button.

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Note: If you are not set up to pay electronically, and you want to, select Manage
Payment Methods at the bottom of the Pay Liabilities tab.

4. Enter expenses and/or penalties in the Liability Payment window

(if applicable).
5. Select Save & Close.
6. Select Close in the Payment Summary window.
● With E-pay, select E-payment.
● Put in your user id, password, and your 4 digit pin for the EFTPS website, select
Submit, and print when it tells you to save for your records.

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Tax Form 941
1. Select the Process Payroll Forms icon on the Home page.

Note: Select on Manage Filing Methods to request a 10 digit pin from the IRS to E-File
your forms.
2. Select Quarterly Form 941/Schedule B in the Select Payroll Form window.
3. Select Create Form.
4. Enter the appropriate filing period below Select Filing Period.
5. Select OK.

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6. Answer all questions in the Interview for your Form 941/Schedule B, and select
Next until finished.
7. Select the Check for errors button.
8. After correcting any errors, select Print forms.
9. Make appropriate selections in the Printing window.
10. Select Print.
11. Submit Form if you have requested the 10 digit pin from the IRS through Manage
Filing Methods, prior to selecting Create Form in step 3.
12. Select Save & Close.

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Reports
Review a Payroll Summary
1. Select Reports:Employees & Payroll:Payroll Summary from the menu.
2. Select the Customize Report button.
3. Select the boxes next to Hours and Rate below Add subcolumns for.
4. Select OK.

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Review a Job Profitability Detail
1. Select Reports:Jobs, Time & Mileage:Job Profitability Detail from the menu.
2. Select the Customer:Job drop-down arrow and select the appropriate customer or
job.
3. Select OK.

Note: Income shows after invoicing. Now that payroll has been processed we see the
costs as well.

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 Chapter 20

Inventory

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Manage Inventory
QuickBooks helps you manage your inventory with essential inventory activities and
reports. QuickBooks Enterprise Solutions Advanced Inventory allows you to accurately
track the quantity and value of inventory items held in multiple locations. You can also
transfer inventory from one location to another. Additional fees apply. Learn more at
www.qbes.com/inventory.
The Inventory Center stores information about all of the Inventory and Inventory
Assemblies in your company file.
Note: Inventory Center is only available for premier and enterprise. Pro users work
from the Items & Services list

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Purchase Orders
Review Inventory Stock Status by Item Report
1. Select Reports:Inventory:Inventory Stock Status by Item from the menu.

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Enter Purchase Order
1. Select the Purchase Orders icon on the Home page.

2. Select the Vendor drop-down arrow and select the appropriate vendor.
3. Enter remaining information in the Create Purchase Orders window.
4. Select Save & Close.
Note: Purchase Orders are non posting transactions that do not affect your financials.

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Receive Items with Bill
1. Select the Receive Inventory icon on the Home page and select Receive Inventory
with Bill from the drop-down arrow.
2. Select the Vendor drop-down arrow and select the Vendor.
3. Select Yes in the Open PO’s Exist window.

4. Select the purchase order(s) being received against in the Open Purchase Orders
window.
5. Select OK.

6. Change any information in the Enter Bills window.

7. Select Save & Close.

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Pay Bill
1. Select the Pay Bills icon on the Home page.

2. Select the individual bills to select for payment.

3. Enter remaining information in the Pay Bills window.
4. Select Pay Selected Bills.
5. Select Print Checks or Done in the Payment Summary window.

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Adjust Inventory
For a business with inventory, the quantity on-hand is critical information. When you
purchase inventory, you add to the on-hand quantity. Invoicing a customer reduces the
quantity. If the actual quantity differs from the quantity in QuickBooks, you need to
adjust the inventory.
Review a Physical Inventory Worksheet
Select Reports:Inventory:Physical Inventory Worksheet from the menu.

Adjust Inventory
1. Select Inventory Activities on the Home page.
2. Select Adjust Inventory Activities Quantity/Value on Hand.

3. Select the Adjustment Type drop-down arrow and select the appropriate
Adjustment Type.
4. Enter appropriate information in the Adjust Quantity/Value on Hand window.
5. Enter either the New Qty or Qty Difference in the window.
6. Select Save & Close.
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Inventory Reports
Review an Open Purchase Orders Detail Report
Select Reports:Purchases:Open Purchase Orders Detail from the menu.

Review an Inventory Valuation Summary

Select Reports:Inventory:Inventory Valuation Summary from the menu.

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What To Do After Class Is Over
Proper Way to Close QuickBooks
You can only work on one Company file at a time, as you open another company
QuickBooks will close that company before it opens another. When you finish working
for the day, always select File Close, this properly closes the company so that the
software can close properly and protects you from corrupting the data. Then selecting
File Exit or the X in the top right corner is ok to press. If it says no company open,
then you are ready to close the software.

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How to Open a Sample File
You can practice in a sample file. Select File>Close, and then select the down arrow
next to Open a Sample File in the bottom right corner. We recommend you change
the company file color scheme in preferences if a practice file so you can tell which is
the Sample File. To switch back to your working company file select File>Open
Previous Company.
Open a sample company file

Change color for company file

Switch back to working company file

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VIP Membership Details
What is VIP?
● ALL of our QuickBooks self-paced classes (both Online and Desktop)
● LIVE weekly “mini” classes that take a deep dive into specific topics
● Q&A with an instructor during business hours via Zoom
● FIVE free certification vouchers
● For more information... Check out the video or printable document to
share with employees/employers!

Certification
Select the titles below to access your study materials:
Study Guide
Practice Test
● With Answers
● Without Answers
Exam Objectives (topics covered)
FAQ

Additional Information:
● You use a voucher to sign up for your certification exam and waive the fee.
● As a VIP, you get 5 vouchers (for a value of $750).
● A minimum passing score is 70%.
● Each voucher allows one retake.

Certification Test information:

● 47 total questions (multiple choice, matching and true/false)
● 50 minutes to complete

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 Notes

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