This series of video transcripts details using QuickBooks Desktop 2022, focusing on setup and workflow. The tutorial covers the Easy Step Interview, company file customization, managing customers and jobs, accounts payable and receivable processes (including invoicing, payments, and credit memos), and inventory management via purchase orders and item receipts. Specific features like customer groups, the income tracker, and statement generation are also explained. The instruction emphasizes consistent data entry for accurate reporting.

QuickBooks Desktop 2022 Study Guide

Short Answer Quiz

What is the purpose of the EasyStep Interview when setting up a company file in QuickBooks? The EasyStep Interview is designed to guide users through the initial setup of their company file by asking questions necessary to configure the company information, preferences, and basic accounting needs. It helps ensure a proper foundation for the company’s financial records.
Why is it important to accurately distinguish between employees and 1099 contractors in QuickBooks? Accurately distinguishing between employees and 1099 contractors is essential because they are treated differently for payroll and tax purposes. Employees require payroll tracking, while 1099 contractors necessitate specific setup for sending 1099 forms, and they should not be in the employee section of QuickBooks.
Explain what the “Chart of Accounts” is in QuickBooks and why it is important. The chart of accounts is a listing of all the different accounts used to track financial transactions in QuickBooks. It is essential because it categorizes income, expenses, assets, liabilities, and equity, ensuring accurate financial reporting and is the foundation of the software.
What is the purpose of the “Home Screen” in QuickBooks, and how can you easily access it from anywhere within the software? The Home Screen provides a central hub in QuickBooks, displaying workflow diagrams and quick access to common tasks. It can be easily accessed from anywhere in the software by clicking the “Home” option on the left-hand side navigation bar.
What are accounts payable and accounts receivable, and how do they function in QuickBooks? Accounts payable is a liability account that tracks the money a business owes to its vendors for unpaid bills, while accounts receivable is an asset account that tracks the money owed to the business by its customers for unpaid invoices. These accounts are crucial for managing cash flow.
Explain the difference between a short-term liability and a long-term liability. A short-term liability is something a business owes and expects to pay off within 12-13 months, while a long-term liability is something a business owes that will be paid off over a more extended period, like several years, such as a long-term loan.
How do owner draws and owner contributions affect the equity accounts in QuickBooks? Owner draws represent the money the business owner takes out of the business for personal use, which decreases equity. Owner contributions represent the money the owner puts into the business, which increases equity. Both actions are recorded in the owner’s equity accounts.
What is the purpose of a “customer group” in QuickBooks, and how can it help streamline customer communication? A customer group in QuickBooks allows you to categorize customers based on defined criteria, which helps streamline communication by allowing users to send emails to a group of customers instead of individually, improving efficiency and organization.
What is the function of an item in QuickBooks, and what different item types can you set up? An item in QuickBooks represents a product or service that you buy or sell, and item types include services, inventory parts, non-inventory parts, other charges, subtotal, groups, discounts, payments, and sales tax. Each type allows for different tracking and sales processes.
Explain the purpose of a credit memo and how it is different from a refund in QuickBooks? A credit memo is a document issued to a customer to reduce the amount they owe, while a refund is a reimbursement of money to the customer. Credit memos are applied to outstanding invoices, while refunds are direct payouts.

Short Answer Quiz Answer Key

What is the purpose of the EasyStep Interview when setting up a company file in QuickBooks? The EasyStep Interview is designed to guide users through the initial setup of their company file by asking questions necessary to configure the company information, preferences, and basic accounting needs. It helps ensure a proper foundation for the company’s financial records.
Why is it important to accurately distinguish between employees and 1099 contractors in QuickBooks? Accurately distinguishing between employees and 1099 contractors is essential because they are treated differently for payroll and tax purposes. Employees require payroll tracking, while 1099 contractors necessitate specific setup for sending 1099 forms, and they should not be in the employee section of QuickBooks.
Explain what the “Chart of Accounts” is in QuickBooks and why it is important. The chart of accounts is a listing of all the different accounts used to track financial transactions in QuickBooks. It is essential because it categorizes income, expenses, assets, liabilities, and equity, ensuring accurate financial reporting and is the foundation of the software.
What is the purpose of the “Home Screen” in QuickBooks, and how can you easily access it from anywhere within the software? The Home Screen provides a central hub in QuickBooks, displaying workflow diagrams and quick access to common tasks. It can be easily accessed from anywhere in the software by clicking the “Home” option on the left-hand side navigation bar.
What are accounts payable and accounts receivable, and how do they function in QuickBooks? Accounts payable is a liability account that tracks the money a business owes to its vendors for unpaid bills, while accounts receivable is an asset account that tracks the money owed to the business by its customers for unpaid invoices. These accounts are crucial for managing cash flow.
Explain the difference between a short-term liability and a long-term liability. A short-term liability is something a business owes and expects to pay off within 12-13 months, while a long-term liability is something a business owes that will be paid off over a more extended period, like several years, such as a long-term loan.
How do owner draws and owner contributions affect the equity accounts in QuickBooks? Owner draws represent the money the business owner takes out of the business for personal use, which decreases equity. Owner contributions represent the money the owner puts into the business, which increases equity. Both actions are recorded in the owner’s equity accounts.
What is the purpose of a “customer group” in QuickBooks, and how can it help streamline customer communication? A customer group in QuickBooks allows you to categorize customers based on defined criteria, which helps streamline communication by allowing users to send emails to a group of customers instead of individually, improving efficiency and organization.
What is the function of an item in QuickBooks, and what different item types can you set up? An item in QuickBooks represents a product or service that you buy or sell, and item types include services, inventory parts, non-inventory parts, other charges, subtotal, groups, discounts, payments, and sales tax. Each type allows for different tracking and sales processes.
Explain the purpose of a credit memo and how it is different from a refund in QuickBooks? A credit memo is a document issued to a customer to reduce the amount they owe, while a refund is a reimbursement of money to the customer. Credit memos are applied to outstanding invoices, while refunds are direct payouts.

Essay Questions

Discuss the importance of setting up a company file correctly in QuickBooks, and how the EasyStep Interview contributes to this. Explain what consequences could result from an incorrect setup and suggest best practices for ensuring accuracy.
Explain the process of setting up and managing a “Chart of Accounts” in QuickBooks. Discuss the importance of proper account types and sub-accounts, and provide an example of how incorrect classification can lead to inaccuracies in financial reports.
Describe how the workflow for customer management operates in QuickBooks, including setting up customers, creating invoices, receiving payments, and creating statements. Explain best practices for managing accounts receivable and how this ensures accurate financial reporting.
Compare and contrast the methods for entering bills and paying them in QuickBooks. Discuss why it’s important to follow the correct workflow from entering a bill to recording the payment, and detail how to handle vendor credits effectively.
Explain the various types of items available in QuickBooks and discuss how they affect both inventory management and financial tracking. Provide examples of how proper use of item types leads to more accurate business accounting, and discuss the impact on financial reporting.

Glossary

Accounts Payable: A liability account that tracks the money a business owes to its vendors for unpaid bills.
Accounts Receivable: An asset account that tracks the money owed to the business by its customers for unpaid invoices.
Chart of Accounts: A listing of all the different accounts used to track financial transactions in QuickBooks, categorizing income, expenses, assets, liabilities, and equity.
Cost of Goods Sold: Direct costs attributable to the production of the goods sold by a company. This includes things like raw materials and direct labor.
Credit Memo: A document issued to a customer to reduce the amount they owe, typically applied to outstanding invoices.
Customer Group: A method to categorize customers in QuickBooks based on certain criteria, facilitating targeted communication and reporting.
EasyStep Interview: A guided setup process in QuickBooks that helps users configure their company file by asking necessary questions.
Equity: The owner’s stake in the company, representing the residual interest in the assets after deducting liabilities.
Home Screen: The central hub in QuickBooks that displays workflow diagrams and provides quick access to common tasks.
Item: A product or service that you buy or sell, tracked in QuickBooks with various types including services, inventory parts, non-inventory parts, and other charges.
Long-Term Liability: Something a business owes that will be paid off over an extended period, typically more than 12-13 months.
Owner Contributions: The money the owner puts into the business, which increases equity.
Owner Draws: The money the business owner takes out of the business for personal use, which decreases equity.
Refund: A reimbursement of money to the customer.
Short-Term Liability: Something a business owes and expects to pay off within 12-13 months.
Vendor: A person or business from whom you purchase goods or services.

QuickBooks Desktop 2022 Training Guide

Okay, here is a detailed briefing document summarizing the provided text, focusing on key themes, important ideas, and factual points, with relevant quotes:

Briefing Document: QuickBooks Desktop 2022 Training

Overall Theme: This training material provides a comprehensive guide to using QuickBooks Desktop 2022, focusing on initial setup, customization, and core business processes. It covers company setup, managing customers and vendors, handling inventory, and core accounting functions. The material is presented as a series of modules and videos, designed for step-by-step learning.

Module 1: Initial Setup

EasyStep Interview: The training emphasizes the importance of the “EasyStep Interview” for company setup, calling it “the easy step interview” and stating that it “will ask you most of the questions you will need to get the company file set up correctly”.
Company Information: This step collects basic company information including name, legal name (if different), tax ID (only needed for 1099s or payroll), address, phone, fax, email, and website. The user is told they “don’t really need this unless you’re going to be printing some 1099s, you’re doing payroll, or something where it needs that tax ID number.”
Industry Selection: Users choose their industry from a comprehensive list or select “general product-based business” or “general service-based business”.
Business Activities: Users specify if they sell services, products, or both. They are also asked if they want to create estimates, use statements, and use progress invoicing. The speaker says “there’s no wrong answer here”, and they suggest turning them both on if there’s any chance products will be sold later.
Managing Bills: Users are asked about managing bills they owe and tracking time. They are told “a lot of people actually just receive a bill and they throw that bill on their desk in a basket and then when it’s time to pay it, they go pay it.”
Employee Tracking: The training clarifies the distinction between employees and 1099 contractors. The user is advised not to turn the employee tracking on if they don’t want to “track payroll in QuickBooks” since “payroll is a subscription you’ll want to sign up for it’s not free.”
Financial Start Date: Users choose their fiscal year start date, today’s date, or a custom date to begin tracking finances. It’s suggested that “if you’re just purchasing quickbooks for the first time and let’s just say it’s towards the end of the year you might want to go ahead and start with maybe the beginning of this month”
Chart of Accounts: The EasyStep interview creates a basic chart of accounts which the user is prompted to review before moving forward. They are told, “anything you do in quickbooks runs through your chart of accounts”.
Home Screen and Customization:
The home screen is described as the first screen you see when opening the company file.
The “icon bar” can be moved to the top of the screen to free up space. Users are told, “it’s a matter of personal preference, but I’ll just show you another option that will free up some room on your screen for you.”
The “open windows list” is a helpful tool for navigating open windows.
The home screen is organized into sections: Vendors (accounts payable), Customers (accounts receivable), Employees, and Banking.
User Permissions:
The training demonstrates how to set up user permissions to limit access to specific areas of Quickbooks. They state, “we gave carol permission to work with bills so she will definitely be able to enter bills… I did not give her access to work with accounts receivable that’s this area down here.”
Only the admin can make changes to user settings. “Remember you have to be logged in as the administrator in order to make any changes to the users.”

Module 3: Chart of Accounts

Importance: The chart of accounts is highlighted as “the most important part of QuickBooks”. It must be set up correctly for accurate reporting. “it’s very important that it’s set up correctly if it’s not then you’re going to run reports and the data will not be accurate.”
Access: The chart of accounts can be accessed directly from the home screen.
Customization: Users are encouraged to add necessary accounts, delete unused ones, and edit account names.
Account Types: The training explains various account types:
Bank: Includes checking, savings, money market, and PayPal accounts. The speaker explains, “if you have a lot of cash expenditures for your business you would want to set one up to have a place to put those.”
Fixed Assets: Includes assets like furniture, equipment, and vehicles. The advice is given to have, “maybe seven to ten [fixed asset accounts]… and they’re going to be more generic.”
Accounts Payable: Where entered but unpaid bills are tracked.
Accounts Receivable: Where unpaid customer invoices are tracked. “invoices that have not been paid will show up in the balance of the accounts receivable account.”
Liabilities:Short-term liabilities (paid in 12-13 months) e.g. sales tax payable
Long-term liabilities (paid over a longer period) e.g. loans. “Each loan or liability should be set up separately in accounting”.
Equity: Represents the owner’s stake in the business.
Owner draws and contributions are tracked as subaccounts of an owner equity account. “if you decide to take 100 out that would be an owner draw…if you decide to put that same 100 into the business that’s called an owner contribution.”
Income: Accounts for revenue from sales. “when you actually make a sale in your business that’s considered income.”
Cost of Goods Sold: Expenses directly related to producing goods or services. “anytime that you have to spend money to buy a product or buy a service to make a product or service for your business that’s considered a cost of goods sold.”
Expenses: General business operating costs.
Account Numbers: Account numbers are not automatically displayed but can be turned on in preferences.
Subaccounts: Subaccounts can be created under main accounts for more detail. Quickbooks will “let you have as many levels as you need” but it’s cautioned to stay with two or three levels to avoid confusion.

Module 4: Customers and Jobs

Customer Center: A central place to manage customer information.
Customer vs. Job: A customer is a person or business buying from you. A job is a specific project for a customer.
Customer Setup:Includes contact information, payment settings, sales tax settings, additional info, and job info.
You can edit the address block that appears on an invoice. It’s noted that, “this is the actual address block that’s going on a customer’s invoice so you may want to click in there and set it up the way you’d like it to be.”
Payment settings include account number, payment terms, preferred delivery, and payment method.
You can specify a customer’s sales tax status (taxable or non-taxable).
Customer fields can be created to categorize customers (e.g., commercial, residential).
Job Setup: Includes job description, type, status, start, and end dates.
Customer Groups: A feature to categorize customers for targeted communication.
Customer groups can be set up using criteria like customer type. “You can actually categorize your customers and based on that you can create groups of customers so that you only have to send one email instead of a separate email to each customer.”
You can email a group of customers at once.
Multiple Customer Contacts: Quickbooks 2022 has a new feature to send emails to multiple customer contacts on the same form.
Customer Communication: The Customer Center has multiple options for keeping in touch with a customer like the Contacts tab, To-Do’s, Notes, and Sending Forms.
Estimates:Estimates are created for potential jobs.
Includes customer information, date, estimate number, and itemized lists of products or services. “make sure you click on the customer and the job”.
Markup can be a percentage or a dollar amount. “you have the ability to mark up an item a dollar amount or a percentage.”
Reports available include estimate by job, estimate vs. actual, and item price list.
Invoicing from Estimates:Estimates can be converted to invoices.
Users can invoice the full estimate, a percentage, or selected items.
Invoices include customer details, terms, date, invoice number, and items with quantities and costs.
Payment terms affect due dates.
Invoicing for Products and Services:Invoices can also be created without an estimate as a starting point. “You can certainly do that you just would not be using those estimates you created.”
Invoices are created using the ‘Create Invoices’ icon on the home screen.
If you’re using a class feature, it should be used consistently for accurate reports.
Receiving Payments:Payments are applied to open invoices.
Payments can be applied using the ‘Receive Payments’ option on the home screen.
Discounts and credits can be applied during payment.
Making Deposits:Received payments go to undeposited funds first. “if you have not turned on the preference telling it where you’d like to put the money this money will automatically go into an account called undeposited funds.”
Deposits are recorded via the ‘Record Deposits’ feature.
The training cautions not to enter deposits directly into the check register because it bypasses the record deposits screen and that “will mess you up every time.”
Credit Memos:Used to credit customer accounts for returned products or other reasons.
Can be applied to open invoices or used to give a customer a refund. “if you’re wanting to credit a particular item you want to choose it from the list.”
Statements:Sent to customers at the end of the month as a summary of transactions.
Statements can be emailed or printed.
Includes open invoices, payments made, and total balance due. ” a great way to gently remind your customers if they owe you money that they need to pay.”

Module 5: Vendors

Vendor Center: A place to manage information about companies you purchase from.
Vendor Information: Includes company details, billing address, phone number, email.
Vendor Setup: Includes Contact Information, Payment Settings, Additional Info, and 1099 Settings. You can add custom fields to vendor profiles as well.
Entering Bills:Bills are recorded for future payments. “it’s something you know that you’re going to have to pay at a future date”
Include vendor, date, reference number, amount due, and accounts (or items) associated with the bill.
Bills can be entered using the ‘Enter Bills’ option on the home screen.
Bill Tracker: A tool to view bills and expenses.
Paying Bills:Bills are paid using the ‘Pay Bills’ option.
Users can pay individual bills or a batch of selected bills. “make sure you follow the flow chart all the way across to the pay bills”
You can sort the bills using due dates or discounts, and filter by specific vendors.
Payments are recorded to the checking account and are associated to specific bills.
Vendor Credits:Credits are issued by vendors and can be applied to bills. “sometimes a vendor will issue you a credit that you need to apply to a bill”
Credits are entered using ‘Enter Bills’ but designated as a credit.

Module 6: Items and Inventory

Items List: A list of products and services you sell. It can be accessed from the home screen.
Item Types:Service: Intangible services provided. “think of a service as an actual service that you provide to your customers”
Inventory Part: Tracked physical products bought and sold. “these are physical parts that you buy or sell.”
Non-Inventory Part: Physical products with no quantity tracking.
Other Charges: Miscellaneous charges like freight and delivery.
Subtotal: For subtotaling items on estimates or invoices.
Group: Pre-defined groups of items to quickly add to invoices or estimates.
Discount: To provide discounts to customers.
Payment: For recording payments.
Sales Tax Item/Group: Tracks sales tax collected and paid.
Creating Items:New items are added via the ‘Items & Services’ list.
Each item type has unique fields to fill in.
Services must be linked to an income account in the chart of accounts. “the most important thing on this screen is the account…nine out of ten times you want it to relate back to an income account”
Inventory parts require additional information like cost, sales price, cost of goods sold account, and preferred vendor.
Purchase Orders:Used to order items from vendors.
Purchase orders are not required to purchase inventory.
When you receive items on a purchase order, you can apply the items to the existing purchase order.
Receiving InventoryInventory can be added from an existing purchase order or can be entered via a check.
Receiving inventory adds items to the on hand inventory total.
Adjusting Inventory:Inventory quantities can be adjusted.
Inventory adjustments are used when items are lost or damaged or when a physical count reveals discrepancies.

Key Takeaways:

QuickBooks Desktop 2022 is a powerful tool for small businesses.
Proper setup and understanding of the chart of accounts are crucial for accurate financial reporting.
The software provides features to handle all core business processes.
It’s important to follow the workflows and use the correct forms when recording transactions.

This briefing document provides a structured overview of the provided text, making it easier to grasp the core concepts and factual information. The quotes support the key points and give context to the material.

QuickBooks: Setup, Features, and Invoicing

QuickBooks Setup & Company Information

What is the “Easy Step Interview” and why should I use it? The “Easy Step Interview” is a guided setup process within QuickBooks designed to help you establish your company file correctly. It prompts you with essential questions about your business, making sure crucial details are entered from the beginning, such as the company name, address, phone number, industry, and other pertinent information. Completing this thoroughly is beneficial as it prevents having to go back and fill in these details later when sending correspondence or reports. It guides users to set up key features that are commonly used including invoices, estimates and payroll options.
What information is essential to input when setting up a new company in QuickBooks? The absolutely required field is the company name. However, to ensure that all correspondence is accurate and professional, you should also provide the legal company name (if different), the tax ID, the street or PO box address, city, state, and country (usually US), phone number, fax number (if applicable), email address, and website. While a tax ID is not required to start using the program, it is necessary if you will be printing 1099 forms or using the payroll feature. Also, include the industry in which your business operates to help QuickBooks configure appropriate settings and account lists.
What are “progress invoices” and why should I use them? Progress invoicing allows you to invoice a customer based on partial completion of a project that was estimated, rather than needing to bill the entire estimate at once. This means you can pull a portion of the estimate, such as 50% or specific items, into an invoice for payment, making it extremely useful for projects spanning multiple stages of work. You can pick and choose which parts of the estimate to bill at any given time. This can help with cash flow and managing long projects.

QuickBooks Features & Functionality

What is the significance of the “Chart of Accounts” in QuickBooks? The chart of accounts is the backbone of QuickBooks, listing all of your business’s financial accounts. It categorizes everything you do in QuickBooks, from income and expenses to assets and liabilities. An incorrect setup will cause inaccurate reporting in areas like Profit and Loss and Balance Sheet statements. It is essential for you to have the accounts set up correctly, and you will want to ensure that the type of account (e.g. bank account, accounts receivable, fixed asset, etc) is set properly. It is important to correctly identify each account type as you set up your company file. It should include any bank accounts (checking, savings, money market, etc), credit cards, cash accounts, vendor and customer accounts, and also loan and liability accounts.
How do you track payroll and 1099 contractors in QuickBooks? QuickBooks handles employees and 1099 contractors differently. To track payroll for employees, you must activate a paid subscription, as payroll features are not free. In contrast, 1099 contractors should not be added in the employee section. There is a specific setup process you must follow to correctly send out 1099s at year’s end. Be sure you have chosen the correct option in the preferences whether you file 1099 forms.
What is the “Home Screen” in QuickBooks, and how can I manage my view? The home screen in QuickBooks is the central hub you see upon opening your company file. It shows all the main areas of the program such as vendors, customers, and banking. You can customize your view of the “Home Screen” by moving the icon bar from the left side to the top for more screen space. You can do this by going to View> Top Icon Bar. The Open Windows List, in View, allows you to easily navigate between multiple open windows, enhancing your workflow efficiency.
How do User Permissions work in QuickBooks? In QuickBooks, user permissions are controlled by the administrator to limit access to specific areas of the program. As an administrator, you have the option to grant or restrict access for each user that you set up. A user may only be able to enter bills but not have permission to work with accounts receivable. This feature enhances security and ensures that only authorized personnel can access or modify certain types of data. User settings are per user meaning if one user has a change, another user is not affected. Only the administrator has the ability to create or modify user permissions.

Customers, Jobs & Invoicing

What are “Customer Groups” and how can they be used to manage customers? Customer groups in QuickBooks allow you to categorize your customers based on certain criteria and send them mass emails. You can group customers by type (e.g., commercial or residential), sales volume, or any other criteria. These groups simplify communication and are a good way to follow up on overdue balances. When you are creating a group you will have an opportunity to make exceptions when the list populates. You have the option to include more customers or unselect those who should not be in this particular group.

QuickBooks Setup Guide

Quickbooks setup involves several key steps, including choosing the right version, creating a company file, and customizing preferences.

Here’s a breakdown of the setup process:

Choosing a Quickbooks Version: There are desktop and online versions of Quickbooks. The desktop version has a home screen with sections and a flowchart, while the online version does not. Both versions allow transaction downloads from banks. You can try the online version with a free 30-day trial from Intuit.
Creating a Company File: Each file created in Quickbooks is called a “company”. You can create multiple company files that do not interact with one another. When you first load Quickbooks, you will see a screen where you can create a new company file, open an existing file, or restore a backup.
Using the Easy Step Interview: To set up your company file, you’ll use the “easy step interview,” which asks questions to configure your file. This interview will ask if you are creating the file for yourself or someone else. It will ask how your company is organized (e.g., sole proprietor, LLC, S corp) and the first month of your fiscal year. It will also ask about setting up an administrator password.
Company File Settings: The easy step interview will ask about what you sell (services, products, or both). It will also ask if you want to create estimates, use statements, and progress invoicing. It will also ask about managing bills, tracking inventory, and tracking time. It will ask if you have employees and the date to start tracking your finances. You will also review your income and expense accounts.
My Company: After the easy step interview, you can edit company information such as name, address, and phone number in the “My Company” section under the “Company” menu. You can also change the legal name, company identification, fiscal year, and payroll tax information in “My Company”. You can also see your version of Quickbooks, license number, and product number, and access apps and payroll subscriptions.
Preferences: You can customize Quickbooks by changing preferences, many of which were set in the easy step interview. These preferences include:
Accounting: Use account numbers.
Items and Inventory: Track inventory and purchase orders.
Jobs and Estimates: Create estimates and use progress invoicing.
Payments: Apply payments to the oldest invoices or manually apply them; automatically put payments in an undeposited funds account.
Payroll and Employees: Set up payroll options and pay stubs.
Reminders: Set reminders for checks to print, overdue invoices, inventory to reorder, and money to deposit.
Reports and Graphs: Run reports on an accrual or cash basis.
Sales and Customers: Prompt for time costs to add to invoices, choose a default shipping method, set up sales tax items.
Send Forms: Choose a default template for forms.
Spelling: Automatically check spelling before printing or sending forms.
1099s: Indicate if you file 1099 forms.
Time and Expenses: Track time for invoicing and track employee or subcontractor time.
Users: It is recommended to set up users so that each user can log in with a username and password. As the administrator, you can set up different permissions for different users, allowing access to certain areas and restricting access to others.
Chart of Accounts: The chart of accounts is the most important part of quickbooks and must be set up correctly. The chart of accounts is a listing of all the different accounts in a company file. You should go through the list to add, delete, and edit accounts as needed. The list can be set up by type and accounts are listed alphabetically.
Bank Accounts: Checking, savings, money market, and PayPal accounts should be set up as bank accounts.
Liabilities: You must differentiate between long-term liabilities like car loans and short-term liabilities such as sales tax.
Equity Accounts: The equity account includes owner’s equity, owner draws, and owner contributions.
Cost of Goods Sold: This includes subcontractors.
Expense Accounts: These include advertising, finance charges, payroll, and utilities.

This step-by-step approach to Quickbooks setup should allow you to get started with an organized approach.

QuickBooks Easy Step Interview Guide

The Easy Step Interview is a key part of setting up a company file in Quickbooks. This interview asks a series of questions and, based on your answers, configures the company file for you. The Easy Step Interview is launched when you create a new company file.

Here’s a breakdown of the key aspects of the Easy Step Interview:

Who is the company file for? The interview begins by asking if the file is for yourself or someone else.
Data Conversion: The interview provides options to convert data from Quicken or another accounting software.
Advanced Setup: The interview provides an option to use an advanced setup which will take a little longer but will ensure the company file is set up correctly.
Company Information: The first screen of the Easy Step Interview asks for information about the company, such as the company name, legal name, tax ID, address, phone number, fax number, email address, and website. Only the company name is required to proceed. However, it’s suggested that you fill out the rest of this information if you plan to send correspondence to customers or vendors.
Industry Selection: The interview asks you to select your industry from a list. If you cannot find a suitable industry, you can choose a general product or service-based business.
What do you sell? The interview asks if you sell services only, products only, or both.
Estimates, Statements and Invoicing: The interview asks if you want to create estimates, use statements, and use progress invoicing.
Managing Bills: The interview asks if you want to manage bills in Quickbooks.
Inventory Tracking: The interview asks if you’d like to track inventory in Quickbooks and if you use purchase orders.
Time Tracking: The interview asks if you want to track time for projects, employees, or subcontractors.
Employees: The interview asks if you have employees, which determines if you want to track payroll in Quickbooks. It is important to note that employees and 1099 contractors are totally different. 1099 contractors are not set up in the employee section of Quickbooks.
Starting Date: The interview asks for the date you want to start tracking finances, which can be the beginning of your fiscal year or a date of your choice. It is suggested that if you are starting Quickbooks towards the end of the year, you may want to choose the beginning of the current month and enter enough information to finish the year. Then the next year you can have a full year’s worth of data. You can also enter data prior to this start date.
Chart of Accounts: The interview asks you to review your income and expense accounts, known as the chart of accounts. You can turn on or off specific accounts or wait until you get into the chart of accounts to make changes.
Completion: After completing the interview, a screen will appear asking if you want to add customers, vendors, products and services, and bank accounts. You can close this screen and proceed to the home screen.

Changes After the Interview: If you need to change any information set up in the Easy Step Interview, you can do so. Most changes can be made under the “Preferences” section of Quickbooks, but changes to the company address, phone number, and other information from the first screen can be done in the “My Company” section under the “Company” menu.

QuickBooks Company Information Setup and Management

Company information in QuickBooks is primarily set up during the Easy Step Interview when you create a new company file. This initial setup includes details such as the company name, address, and contact information.

Here’s a breakdown of how company information is handled within QuickBooks:

Initial Setup in Easy Step Interview:
The first screen of the Easy Step Interview requests company details.
This includes the company name, which is the only required field.
You can also enter a legal name, tax ID, street address or P.O. box, city, state, country, phone number, fax number, email, and website.
It’s recommended to fill in all the contact information if you plan to send correspondence to customers or vendors.
Editing Company Information:
After completing the Easy Step Interview, you can edit the company information using the “My Company” option located under the “Company” menu.
In “My Company”, you can change the company name, address, and phone number that you set up in the Easy Step Interview.
You can also change the legal name and address, the company identification number (federal ID), and reporting and payroll tax information.
The “My Company” section will display the company’s address and legal address, which will be the same unless you make changes to the legal name information.
To edit, click the pencil icon next to the information you want to change.
Changes to the address here will be reflected on your invoices.
Additional Information in “My Company”:
The “My Company” section also displays the version of QuickBooks, license number, and product number.
It shows if the product has been activated.
It also provides access to apps that work with QuickBooks, some of which are subscription-based services.
You can access payroll and merchant services subscriptions with Intuit from this area.
There are options to order checks from Intuit, although it is not required that you order checks from them.
Importance of Accurate Information:
The information in the company section is important because it’s used on correspondence with customers and vendors.
The phone number is important to include on invoices.
The address information will be pulled into invoices and other forms.
If you have the company name listed in both the company and full name field in customer information, you may want to edit how it appears on the invoice.
When placing calls for support, you might need to provide the version of Quickbooks, license number, and product number found in “My Company”.
Accessing “My Company”:
To access “My Company”, go to the menu and click on “Company”, then select “My Company”.
You can change the company address, phone number, or any other information from the first screen of the Easy Step Interview through this method.
The “My Company” section is also where you can make changes to your fiscal year.

In summary, the company information is initially entered during the Easy Step Interview and can be edited at any time in the “My Company” section. It is important to keep this information current and accurate, as it is used in various areas of QuickBooks.

Managing Bills in QuickBooks

Managing bills in Quickbooks is a key part of the accounts payable process. This involves entering bills, tracking them, and then paying them. Here’s a breakdown of how to manage bills effectively:

Entering Bills:
To enter a bill, use the “Enter Bills” option in the “Vendor” section of the home screen.
This is where you record bills that you receive either in the mail, electronically, or even for items that are automatically withdrawn from your bank account.
When entering a bill, you will select a vendor from the list or add a new vendor.
The bill entry screen includes fields for the vendor name, address, terms, date, due date, reference number, amount due, and memo.
You will also use either the expenses or items tab at the bottom of the screen.
The expenses tab is used to record expenses related to the bill. You will need to choose an account from the chart of accounts and enter the amount. You can also assign the expense to a customer and a job if you use job costing.
The items tab is used when the bill is related to physical products that you sell. This tab is important because it will increase your inventory count.
It is important that the total of the expenses and items tabs matches the amount due to the penny before you save the bill.
Once a bill is saved, you can see the bill details in the vendor center.
Importance of Entering Bills:
Entering bills allows you to keep track of who you owe money to.
It also allows you to run reports to see if any bills are overdue.
Entering all bills, even recurring ones like car payments or electronically withdrawn bills, helps in forecasting expenses.
Many people do not enter bills, and that’s okay; however, if you want to forecast expenses or use features such as purchase orders and inventory, it is important to enter your bills.
Paying Bills:
To pay bills, use the “Pay Bills” option in the “Vendor” section on the home screen.
This screen shows a list of all your unpaid bills, which can be sorted by vendor or due date.
You will select the bills that you want to pay and enter the payment date and method.
You can select multiple bills at one time to pay, and you can also pay a bill from the vendor center or the bill tracker.
When you pay a bill, it automatically puts that payment in the register.
Bill Payment Methods:
It is important to use the Pay Bills option rather than simply writing a check because the Pay Bills feature connects the payment to the bill. If you use a check or debit card to pay a bill without using the Pay Bills function, the bill will remain open because the system does not see the association between the payment and the bill.
If you pay a bill using the Pay Bills function, the payment will be recorded as a “bill payment” in your check register.
Vendor Credits:
If a vendor issues a credit, it should be entered as a credit when entering bills.
When entering a vendor credit, you must select the vendor, date, credit amount, and the chart of accounts the credit applies to.
Vendor credits can then be applied to existing bills when you pay the bill.
Bill Management Tools:
QuickBooks has a bill tracker, which displays expenses by vendor, customer, or job, allowing you to quickly view open bills and purchase orders.
The bill tracker also allows you to convert purchase orders to bills and pay bills from this screen.
QuickBooks also has a new feature that allows you to upload and review bills. The software will try to match bills that you have in a PDF file.

By using the enter bills feature and following the flow chart to pay bills, you can keep track of your payables, forecast expenses, and maintain accurate financial records.

QuickBooks Home Screen Navigation

The QuickBooks home screen is designed to provide a central location to manage your business’s daily activities. It’s set up with different sections that guide you through the workflow.

Here’s a breakdown of the key components of the home screen:

Icon Bar: The icon bar is a set of shortcuts to different areas of QuickBooks. By default it appears on the left side of the screen. It can be moved to the top of the screen by going to “View” in the menu and selecting “Top Icon Bar”.
Open Windows List: The “Open Windows List” appears on the left side of the screen after selecting it under the “View” menu. This list displays all the currently open windows in Quickbooks. This can be useful when navigating multiple tasks.
Sections: The home screen is divided into five main sections, each representing a different area of your business:
Vendors: This section is for accounts payable, where you manage all transactions with the people or businesses you buy from. It includes options for entering bills, tracking inventory, and paying bills.
Customers: This section is for accounts receivable, where you manage all interactions with your customers. You can create invoices, receive payments, and send statements in this section.
Employees: This section is for payroll functions.
Company: This section contains icons that do not directly relate to customers or vendors but to the company file itself. This includes the chart of accounts, which is a crucial part of QuickBooks. It also includes items and services, which are physical products you sell or services you provide.
Banking: This section contains options for banking functions, such as making deposits, opening the check register, and printing checks.
Flowchart: Each section on the home screen has a flowchart, which is a visual guide that shows you the steps to follow in that section. For example, in the customer section, the flow might include creating an estimate, creating an invoice, receiving payments, and recording deposits.
Account Balances: On the right side of the screen, you will see a section that displays the balances of your accounts, including checking, savings, and credit card accounts. This section allows for quick access to each of these accounts.
Intuit Services: Also on the right, there is a section that displays services offered by Intuit, such as merchant services accounts, check ordering, and online backups. This section can be hidden by clicking a small arrow.
Backup Status: The home screen displays the backup status of your company file. You can choose to back up your file using the “backup now” option, or you can choose to have Intuit back it up for you for a fee. This can be hidden by clicking the small arrow if you don’t want to see it.
Navigation: The home screen is the first screen that appears when you open your company file. If you’re somewhere else in QuickBooks, you can return to the home screen by clicking the “Home” option on the left menu.
Quickbooks Online Home Screen: The online version of Quickbooks has a different home screen setup, lacking the flowchart that is included in the desktop version.

By understanding the different components of the QuickBooks home screen, you can navigate the software more efficiently and keep track of your business finances.

How to Use QuickBooks Desktop 2022 – 4.5 Hour QuickBooks Beginner Training Tutorial!

By Amjad Izhar
Contact: amjad.izhar@gmail.com
https://amjadizhar.blog

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