The text is a tutorial on using QuickBooks Online. It guides users through various aspects of the platform, starting with subscription options and initial company setup. The tutorial demonstrates how to manage customer lists, handle sales transactions, and utilize features like invoices, sales receipts, and credit memos. Finally, the tutorial covers product and service setup, purchase orders, and related reports, providing a comprehensive overview for new QuickBooks Online users.

QuickBooks Online: A Comprehensive Study Guide

Quiz

Instructions: Answer the following questions in 2-3 sentences each.

How can a user access the sample file (Craig’s Design & Landscaping Services) in QuickBooks Online without a subscription?
What are the two primary ways to create an Intuit account when signing up for QuickBooks Online?
Where can users find the sign-out option in QuickBooks Online, and what icon is associated with it?
Why is it important to understand the Chart of Accounts in QuickBooks Online?
Explain the difference between the “Company email” and “Customer facing email” settings in QuickBooks Online.
How can you give another user access to your company file and can that user change the company info or manage subscriptions?
Why should businesses set up a separate liability account for each loan they have?
Explain the difference between “owner investment” and income in QuickBooks Online.
What is the function of sub-customers in QuickBooks, and how does it differ from the desktop version?
What is the purpose of “Undeposited Funds” in QuickBooks Online?

Quiz Answer Key

Users can access the sample file by navigating to qbo.intuit.com/r/edr/testdrive. This allows them to explore the features using a pre-populated company file without needing a paid subscription.
Users can create an Intuit account by signing up with a Google account or by using an email address and creating a password. This centralizes their Intuit product logins.
The sign-out option is located in the top right-hand corner of the screen, accessible by clicking on the gear icon. This ensures secure access control.
The Chart of Accounts is the backbone of all accounting in QuickBooks. It categorizes where money is spent and received and is necessary for generating accurate financial reports.
The “Company email” is a private email address used for internal communications from Intuit, while the “Customer facing email” is the email address customers see. The latter can be redirected to the company email for ease of management.
Give another user access by going to Gear Icon > Manage Users > Add User. Administrators control user permissions, and an employee cannot change company info or manage subscriptions unless permission is granted to them by the adminstrator.
Setting up separate liability accounts for each loan allows businesses to accurately track the principal and interest payments for each debt. This helps monitor individual loan balances and payment progress.
“Owner investment” refers to personal funds the owner puts into the business, which is considered equity, not income. Income is revenue generated from business operations.
Sub-customers are used to organize jobs or projects related to a main customer, enabling detailed tracking of income and expenses for each project. In the desktop version of QuickBooks, these are often called “jobs”.
“Undeposited Funds” serves as a temporary holding account for payments received from customers before they are deposited into a bank account. This is a useful holding pattern when you collect money and plan to make a bulk deposit at the end of the day.

Essay Questions

Discuss the importance of customizing QuickBooks Online settings through the gear icon, providing specific examples of how these customizations can improve efficiency and accuracy for different types of businesses.
Explain the process of setting up a new company file in QuickBooks Online, including the steps involved in the easy step interview, and discuss the significance of accurately answering the initial setup questions.
Describe the different types of accounts in the Chart of Accounts, and explain how each type affects the accuracy of financial reports.
Analyze the benefits and drawbacks of using the sales receipt versus invoice features in QuickBooks Online, and provide scenarios in which each method would be most appropriate.
Evaluate the utility of the tagging feature in QuickBooks Online, explaining how tags can be used to track specific aspects of a business and improve reporting capabilities, and compare it to QuickBooks’ “classes” feature.

Glossary of Key Terms

Chart of Accounts: A list of all the accounts used to categorize financial transactions in QuickBooks Online.
Company File: A QuickBooks term for the data file that contains all of a company’s financial information.
Dashboard: The main screen in QuickBooks Online that provides a quick overview of a company’s financial performance.
Intuit Account: A single login that allows access to multiple Intuit products and services.
Navigation Pane: The menu on the left side of the QuickBooks Online interface that provides access to different areas of the program.
Sales Receipt: A record of a sale where the customer pays at the time of purchase.
Invoice: A bill sent to a customer requesting payment for goods or services.
Accounts Receivable: The money owed to a company by its customers.
Accounts Payable: The money owed by a company to its vendors.
Undeposited Funds: A temporary holding account in QuickBooks for payments received but not yet deposited into a bank account.
Credit Memo: A document issued to a customer that reduces the amount they owe, usually due to a return or service issue.
Refund Receipt: A record of money returned to a customer for a purchase.
Statement: A summary of a customer’s account activity, including invoices, payments, and balances.
Tags: Customizable labels used to categorize transactions for detailed reporting and tracking.
Product and Service: A sellable item or billable service provided by a business.
Purchase Order: A document sent to a vendor requesting an order of goods or services.
SKU (Stock Keeping Unit): A unique identifier for a product or service.
Inventory: Goods held for sale to customers.
Vendor: An individual or company from whom a business purchases goods or services.
Sub-customer: A customer that is a sub-division of a main customer, enabling job or project tracking.
Equity: The owner’s stake in the company.
Liability: A debt or obligation owed to others.
Asset: A resource controlled by the company as a result of past events and from which future economic benefits are expected to flow to the company.
Accrual Basis Accounting: Recognition of income when earned and expenses when incurred, regardless of cash flow.

QuickBooks Online: Setup, Navigation, Customer Management, and More

Okay, here’s a detailed briefing document summarizing the key themes and ideas from the provided text excerpts.

Briefing Document: QuickBooks Online Overview and Key Features

Executive Summary:

This document summarizes key functionalities within QuickBooks Online (QBO), focusing on initial setup, navigation, customer and vendor management, sales transactions, product/service inventory, and reporting. It highlights the use of sample files for practice, the process of creating and customizing a new company file, managing customers and vendors, handling sales transactions, managing inventory with purchase orders, and utilizing reports to understand your business.

1. Introduction and Initial Setup

Theme: Getting started with QuickBooks Online.
Key Ideas/Facts:Sample File: Users can experiment with a sample file (“Craig’s design & landscaping services”) without a subscription. Access via “QBO dot Intuit comm /r e dr forward slash test drive.”
30-Day Free Trial: A 30-day free trial is available by signing up.
Intuit Account: Creating an Intuit account (using Google or email) is required. Mobile number is recommended for account recovery.
Company File: Each QuickBooks file is a “company.” Users can have multiple companies.
EasyStep Interview: QBO uses an “easy step interview” to gather initial company information and configure settings.
Dashboard: The dashboard provides a quick overview of different company areas.
Logging In/Out: Use the gear icon in the top right to sign out. To log back in, go to QuickBooks.Intuit.com and select “Sign In.”

2. Navigation and Customization

Theme: Understanding the QBO interface and customizing company settings.
Key Ideas/Facts:Gear Icon: The gear icon provides access to customization options, tools, and company settings.
Chart of Accounts: “Everything in QuickBooks will run through the chart of accounts.” It is accessible via the gear icon.
“New” Button: The “New” button (formerly located near the gear icon) is for creating new transactions.
Account Settings: Accessible through the Gear Icon.
Company Information: Allows editing of company name, legal name, industry, email addresses (customer-facing vs. company), phone number, website, and addresses.
Billing and Subscription: Used to upgrade QBO subscriptions. Subscription levels have limits (e.g., users, chart of account items, classes/locations).
Usage: Helps to monitor limits to the subscription level.
Sales Tab: Has customisation settings that help to manage how sales are processed.

3. User Management

Theme: Adding and managing users within QBO.
Key Ideas/Facts:Multiple Users: Different QBO subscriptions allow for a different number of users.
User Permissions: Administrators can assign different levels of access. It is critical that administrators know usernames and passwords.
Invitation Process: New users receive an email invitation and set up their own username and password.
Audit Trail: Can be reviewed under Reports.

4. Chart of Accounts

Theme: The fundamental role of the chart of accounts in QBO.
Key Ideas/Facts:Core Accounting Structure: The chart of accounts is “the backbone of all accounting,” a listing of where money is spent or received.
Account Types: Important account types include:
Bank Accounts: (Checking, Savings, PayPal, Square).
Assets: (Fixed Assets like vehicles, furniture, and current assets like inventory). Group assets into “big bucket categories.”
Liabilities: (Loans – separate accounts for each loan, Credit Cards – separate for each card).
Equity: (Owner draws, Owner contributions).
Income Accounts: (Sales income).
Cost of Goods Sold
Expense Accounts:
Sub-Accounts: Can be created under main accounts (e.g., “Fuel” as a sub-account of “Car and Truck”).
Opening Balance: A starting balance creates debit and credit entries.

5. Customer Management (Accounts Receivable)

Theme: Managing customer information and sales transactions.
Key Ideas/Facts:Navigation: Access customer lists via the “Sales” tab on the navigation bar.
Customer List Overview: Includes open invoices, overdue amounts, payments in the last 30 days, unbilled activity, and estimates.
Customer List Features: Sorting, email links (if email address is present), phone number, open balance, actions (creating statements/invoices).
Search Function: Ability to search for customers.
Batch Actions: Option to email multiple customers or make them inactive.
Adding New Customers: Requires entering company name (if applicable), name, display name, email, phone number, billing address (and shipping address if different).
Sub-Customers: Used for different jobs/projects for a customer.
Editing Customer Information: You cannot delete customers. You can only make them inactive. Customer information can be edited.
Customer Details Tabs: Include notes, transaction list, projects, customer details, and late fees.
Customer Custom Fields: Options include preferred payment method, payment terms, opening balances, language, attachments, and additional info.
Inactive Customers: Hiding customers from the list.
Importing Customers: Import customer lists from Excel or CSV files.

6. Sales Transactions

Theme: Recording sales to customers.
Key Ideas/Facts:Sales Overview: A quick overview of income over time, overdue invoices and bank accounts.
Sales Transactions: Can be reviewed for each customer and each transaction
Sales Receipts: Used when customers pay immediately.
Invoices: Used when sending invoices and payment occurs at a later date.
Sales Receipts Details:Customer information.
Billing address.
Date.
Payment method.
Product/service details (description, quantity, rate, tax).
Discounts.
“Undeposited Funds” account.
Invoice Details:Customer selection.
Email options (including sending later).
Billing address.
Invoice date and due date.
Product/service details (description, quantity, rate, tax).
Attachments.
Discounts.
Receiving Payments: Record how much customers paid, the date paid and when completed the invoice will show as paid.
Deposits Deposits must be made separately, particularly if multiple payments contribute to a single deposit. Money goes into the checking account.
Credit Memos Used to credit an invoice.
Refunds Used when you want to issue a refund to a customer that has purchased something and paid in full.
Statements: Gentle reminders that they owe money, shows all activity.

7. Tags

Theme: Categorizing customers.
Key Ideas/Facts:Tags: new feature that allows the user to create certain words that will appear on a drop-down when you are in different transactions in QuickBooks.
Tag Groups: Allows the user to put tags into groups.

8. Products and Services

Theme: Adding products and services
Key Ideas/Facts:Sorting: Sort products and services by type.
Non-Inventory: Physical items that you buy and sell.
Service: Service you provide.
Inventory Product: Tracking physical items.
Bundle: Combine items together.
SKU: Put in the SKU.
Income account: Account you want money to go back to.
Preferred vendor: Vendors you prefer.
Purchase Orders: Track what you have ordered.
New bills: Create a new bill
Open purchase order: Order you need to pay.

9. Reporting

Theme: Reports to analyze information
Key Ideas/Facts:List of reports: Report for vendors and customer
Open purchase order detail: Report for vendors and customer
Customization: Can change the information in the report.
Filter options: Can look at all accounts.
Accrual basis: All reports are run on the accrual basis.

Note: This briefing document is based solely on the provided text excerpts and does not represent a complete guide to all QuickBooks Online features.

QuickBooks Online: Setup, Navigation, and User Management

QuickBooks Online FAQ

How can I explore QuickBooks Online without a subscription?
You can use a sample company file, “Craig’s Design & Landscaping Services,” without needing a subscription. To access it, go to QBO.Intuit.com/r/edr/testdrive. You’ll need to verify you’re not a robot. The data in the sample file is updated daily, and you will be working with information from 2021.
How do I set up a new QuickBooks Online account?
Navigate to the QuickBooks website where the online subscriptions are displayed. Choose a subscription or sign up for the 30-day free trial. To create an Intuit account, you can sign up with a Google account or an email address. Providing a mobile number is recommended for account recovery purposes. Create a strong password with at least 8-12 characters, including uppercase and lowercase letters, and special characters. Then you will start the easy step interview that will ask you about your business, such as its name and industry, and set up the company file for you.
How do I log in to QuickBooks Online once my account is set up?
Go to the QuickBooks Online website (QuickBooks.Intuit.com) and click “Sign In.” If you are using a trial subscription, just use the “QuickBooks Online” option. Then, enter your Intuit account username and password.
What is the dashboard and how do I navigate QuickBooks Online?
The dashboard provides an overview of your company’s performance. The navigation pane on the left side of the screen is used to access different sections, such as banking, expenses, sales, workers, reports, accounting, and apps. Each option will provide another set of options related to the original choice.
How do I customize QuickBooks Online settings?
Click the gear icon in the top right corner to access the settings menu. Here, you can customize various company settings such as the chart of accounts, address, contact information, sales settings and add users.
How do I add and manage users in QuickBooks Online?
Go to the gear icon, select “Manage Users,” and then “Add User.” Choose the user type and specify access rights. Enter the new user’s first name, last name, and email address. QuickBooks will send an invitation email with instructions for setting up their account.
What is the Chart of Accounts and why is it important?
The Chart of Accounts is a comprehensive listing of all accounts used to categorize financial transactions. It’s the backbone of QuickBooks, as every transaction flows through these accounts. It defines where money is spent (expenses) and where money is received (income). To access it, click the gear icon and choose “Chart of Accounts.”
How do I manage customers in QuickBooks Online?
To access customer information, go to “Sales” and then “Customers” in the left navigation pane. Here you can view open invoices, overdue amounts, and payment history. You can add new customers by clicking “New Customer”. You can edit customer details, including contact information, billing/shipping addresses, preferred payment methods, and payment terms.

QuickBooks Online: Features, Setup, and Management Guide

QuickBooks Online is a paid subscription service that allows you to access your company file from any location with internet access. It is designed to help you manage various aspects of your business finances.

Key aspects of QuickBooks Online:

Accessibility: QuickBooks Online allows access to company files from any device with internet.
Accounts Receivable: Manages customer-related transactions, including creating invoices and recording payments.
Accounts Payable: Tracks and manages bills to monitor how much is owed.
Products and Services: Helps set up and manage physical products and services.
Payroll: Includes tools for managing payroll.
Mobile Devices: QuickBooks Online works with mobile devices, allowing users to manage their business on the go. Mobile apps are available for both Android and iPhone.
Company Files: Each file created in QuickBooks is called a company, and multiple company files can be created.
User Interface: The dashboard provides a quick overview of the company’s performance. The navigation pane on the left provides access to various features.
Customization: QuickBooks Online allows customization of various settings to fit the specific needs of a business. The gear icon provides access to customization options.
Chart of Accounts: The chart of accounts is the backbone of all accounting in QuickBooks. Every transaction in QuickBooks flows through the chart of accounts.
Sales Transactions: Manages sales transactions, including invoicing customers, receiving payments, and making deposits.
Customer Management: Manages customer lists and related transactions.
Inventory Management: Manages inventory, tracking quantities on hand and reorder points.
Vendor and Expense Management: Manages vendors and expenses, including purchase orders.
Reporting: Offers a variety of reports to provide insights into your business finances.

Subscription Options and Costs:

There are multiple subscription options available, each with different features and monthly fees.
The Simple Start subscription is the most basic and is suitable for new businesses.
The Essentials, Plus, and Advanced subscriptions offer additional features and capabilities.
The Plus subscription is the most popular.
The number of users that can access the online version depends on the subscription.
QuickBooks Online is not free; it requires a monthly subscription.
A free 30-day trial is typically available.

Setting up QuickBooks Online:

To begin using QuickBooks Online, you must sign up for one of the subscription services.
You can sign up for a 30-day free trial.
During the setup process, you’ll be asked to provide information about your business.
QuickBooks will guide you through an easy step interview to gather information and set up your company file.
You can import data from a desktop version of QuickBooks.

Mobile Apps:

QuickBooks Online offers mobile apps that sync with the online version.
These apps allow you to manage your business on the go.
You can create invoices, track expenses, and perform other tasks from your mobile device.
The apps may not have all the features available in the online version.

Sample Company File:

QuickBooks Online provides a sample company file called Craig’s Design & Landscaping Services that you can use to explore the software.
The sample file is updated every day, allowing you to practice with current data.

Customizing QuickBooks Online:

The gear icon provides access to various customization options.
You can customize your company settings, manage users, and access other tools.
It is important to understand the chart of accounts and how it works.
You can enable account numbers in the chart of accounts.

Users:

Each person using QuickBooks should have their own login.
The administrator can add, edit, or delete users.
The number of users depends on the subscription.
You can limit users’ access to certain areas of QuickBooks.

Sales Transactions:

QuickBooks Online allows you to manage sales transactions, including creating invoices, receiving payments, and making deposits.
You can create sales receipts for immediate payments or invoices for later payments.
You can record customer payments and apply them to specific invoices.
You can make deposits to record the transfer of funds to your bank account.
You can create credit memos for customers.
You can issue refunds to customers.
You can create and send statements to customers.

Products and Services:

QuickBooks Online allows you to set up and manage products and services.
You can create inventory products, non-inventory products, and services.
You can track quantities on hand, set reorder points, and manage inventory.
If the inventory feature isn’t available, consider upgrading to Plus or Advanced.

Vendors and Expenses:

You can manage vendors and expenses in QuickBooks Online.
You can create purchase orders to order products from vendors.

Reporting:

QuickBooks Online offers a variety of reports to provide insights into your business finances.
Reports can be customized to show specific data and time periods.
Common reports include open invoices, customer balance details, and sales by customer.

QuickBooks Online is constantly evolving, so the options may change or move over time. To stay updated you can log into QuickBooks.Intuit.com/blog to see recent changes.

QuickBooks Online: Subscription Options and Features

QuickBooks Online requires a paid monthly subscription, with four different subscriptions available. Here’s what you should know about them:

Pricing and Discounts: The monthly fee for each subscription can change, but discounts such as 50% off for the first three months are often available.
Free Trial: A 30-day free trial is offered for each subscription, allowing you to test the software before purchasing.
Subscription Levels and Features:
Simple Start: This is the most basic subscription, best for new businesses with few customers. It’s a good starting point and you can upgrade as needed.
Essentials: This level lacks the inventory feature and job tracking profitability, and batch invoices.
Plus: The Plus subscription is the most popular. However, it lacks options for importing and sending batch invoices as well as business analytics and insights options.
Advanced: This subscription includes all available features, such as importing and sending batch invoices and business analytics.
Upgrading and Downgrading: It’s possible to switch between subscriptions as your business needs change. For example, you may need to upgrade to allow more users to access QuickBooks, or for inventory management.
Considerations for Choosing a Subscription: Factors to consider when choosing a subscription include the number of users needing access, the need for inventory management, and whether you require advanced features like batch invoicing or business analytics. If unsure, contacting QuickBooks directly is recommended to determine the best fit for your business.

To view the current subscriptions, navigate to QuickBooks.Intuit.com. You can also upgrade your existing subscription within QuickBooks.

QuickBooks Online: Company Files and Setup Guide

Here’s what the sources say about company files in QuickBooks Online:

Any file that is created in QuickBooks is called a company file.
A user can have as many company files as they want.
Often, a small business owner might set up one company with their personal information and another company that has the business information.
Company files do not interact with each other, so there is no concern about data being mixed up between them.
When setting up QuickBooks, it will launch an easy step interview that will ask questions and, based on the answers, it will set up the options in the company file.
The setup process involves providing basic information such as the name and type of business.
After creating a company file, there is still more to do because it is initially a blank file.
After the basic setup, the user is taken to the dashboard, which provides a quick overview of the company’s performance.
A sample company file, Craig’s Design & Landscaping Services, is available to play with.
To access the sample file, navigate to QBO.Intuit.com /r e dr forward slash test drive.
It is not necessary to sign up for a subscription to access the sample file.
The sample file is updated every day, and it is set in the year 2021.
If you have been using the desktop version of QuickBooks, you can upload your company file to QuickBooks Online.
To upload a company file from the desktop version, open the company file in the desktop version, go to the company menu, and select “Export Company File to QuickBooks Online”.
If the “Export Company File to QuickBooks Online” option is not available, it means that updates are needed in the desktop version of QuickBooks.
After exporting the company file, run a profit and loss report and a balance sheet in both the desktop and online versions to compare the data.
If the data is not the same, try exporting the company file again.
When logging in, users are given the option to sign up with a particular subscription.
If still using the 30-day free trial, use the QuickBooks Online option to log in.

QuickBooks Online: Mastering the Chart of Accounts

Here’s what the sources say about the chart of accounts in QuickBooks Online:

The chart of accounts is the backbone of all accounting in QuickBooks Online. Every single transaction flows through one of the accounts listed in the chart of accounts.
The chart of accounts is a listing of different areas where money is spent or received. It is important to ensure information goes into the correct categories for accurate reports.
To access the chart of accounts, navigate to the gear icon and then select “Chart of Accounts”. Another way is to go to the left navigation bar and click on “Accounting”.
The first column is the name of the account, which can be customized. The second column shows the type. The names are alphabetical within each type. The “Detail Type” column provides more information about the type chosen. It also shows QuickBooks balance and bank balance.
Account Types:
Bank Accounts: These include checking, savings, money market accounts, PayPal, and Square.
Assets: These are things the business owns. Assets can be fixed (long-term, like vehicles or property) or liquid/current (like inventory).
Liabilities: These are debts the business owes. They can be long-term (paid over more than 12 months) or short-term/other current liabilities (paid in under a year). Set up a separate account for each loan.
Credit Cards: These are for business credit cards. Set up each credit card account separately to track them properly.
Equity: This reflects the owner’s stake in the company. Owner draws are when the owner takes money out, and owner contributions are when the owner puts money in.
Income: This is where sales income is tracked.
Cost of Goods Sold: These are the costs of the products or services a business sells.
Expenses: This is a large grouping of expense accounts.
To add a new account, click “New”. Pick the account type and then the detail type that closely matches.
Subaccounts: To add subaccounts, the type has to be the same as the main account. Design the list so that it provides the needed level of detail without being overwhelming.
Starting Balances: When adding a new account, a start date and beginning balance is needed. For a checking account, this would be the ending balance on the last bank statement. The other side of this transaction goes to “Opening Balance Equity”.
You can enable account numbers by going to the gear icon, then “Account and Settings,” then “Advanced”. Turn on “Enable account numbers”. A new column will appear at the beginning of the chart of accounts to add the numbers.

QuickBooks Online: Recording Sales Transactions, Invoices, and Payments

Here’s what the sources say about sales transactions in QuickBooks Online:

There are a couple of different ways to record a sale to a customer. One way is to create a sales receipt and the other is by invoicing customers.
Any transaction that happened with a customer will be listed under the sales tab. You will see information on invoices, payments, credit memos, time charges, sales receipts or refunds.
Under the invoices tab you will see all the information on any sales transactions.

Sales Receipts

Creating a sales receipt is almost like a point-of-sale transaction.
If a customer comes in, makes a purchase, and pays the money right then, you can put all of that on one transaction and provide them with a receipt.
To create a sales receipt, go to your customer list, find your customer, and select create a sales receipt.
Here you can enter the customer’s email, billing address, and the sales receipt date.
Then you can select the product/service that the customer is purchasing.
You will be able to edit the description, quantity, and rate.
Below this, you can enter a message that will be displayed on the sales receipt and on statements.
On the right, you can see the subtotal and the total subject to sales tax.
At the bottom, you will be able to see the amount received and the balance due.
Because it is a sales receipt, it is assumed that you have received all of the payment.
At the top, you can choose the payment method.
The next thing you’ll see is deposit to undeposited funds. In your chart of accounts there is an account called undeposited funds, this is where money sits that you’ve collected but you have not yet taken to the bank.
When you’re finished, you can save, save and send, or save and close.

Invoices

The invoice is where you will send an invoice to your customer and wait for payment at a later date.
You may email or mail these.
To create invoices, go to the navigation pane and select sales.
You can either use the invoice option or the customers option.
If you select invoices, you can choose new invoice.
If you select customers, you can select a customer, go to the action column, and create an invoice.
If you are using sub-customers, always pick the sub customer.
You can change the customer email and billing address.
If you select send later, you can create the invoice, save it, and then email it at a later time.
You can change the invoice date and due date.
Select a product or service from the list to invoice your customer.
Remember that a service is non-taxable.
You can add an attachment.

Receiving Payments

After you have sent the invoice, you will want to record the payment when it is received.
To do this, navigate to sales and then customers.
In the action column, select receive payment.
Here you can select the payment date and method.
Then you can select where to deposit the funds.
You can deposit the funds to the undeposited funds account or directly into the checking account.
Then save and close.

Making Deposits

The make deposits option is always going to be the last step in this process, no matter how you receive the payment.
You want to make sure that your deposits in QuickBooks match what actually happened at the bank.
To record the deposit, select new and then bank deposit.
Make sure you have the correct bank account chosen.
Check off all of the monies that are going in this deposit.
You can also add funds to this deposit.
Then, save and close.

Credit Memos

There are times when you will want to issue a credit memo to an invoice.
For example, if a customer is not happy with your services, you can issue a credit memo.
To do this, first, look up the original invoice.
Then, go to new and under customers, select credit memo.
Plug in the customer’s name.
Make sure you put the date you would like.
Under product/service, enter the same product or service that was on the original invoice.
Then, save and close.
Then, go to the payment and apply the credit memo to the correct invoice.

Refund Receipts

There may be times where you have to give your customer a refund.
To do this, go to new and under customers, select refund receipt.
Select the customer you need to give a refund to.
Plug in the date and the refund method.
Select the product/service to refund.
Then, select save and print.

Statements

One of the things you have the ability to do in QuickBooks is send statements to your customers.
A statement is basically a gentle reminder to your customers that they owe you some money.
Typically statements are sent at the end of each month.
To create statements, go to new and under other, select statement.
Pick a statement type, statement date, and customer balance status.
Then, apply.

The Original Text

hello welcome to QuickBooks Online my name is Cindy macdougan and I’m going to help walk you through this series of videos I wanted to take a few moments in this introduction video and just give you a little bit of information about what to expect as you go through the course and also let you know a little bit about myself and my background I’ve actually been a software trainer for about 20 years I teach a lot of different types of software QuickBooks being one of those I’m also a QuickBooks consultant I work with both the desktop and the online version I’m going to be able to relay some information about both as we go along but more importantly we’re talking about the online version here the online version has an advantage and that is that you’ll be able to access your company file from anywhere you happen to be that has internet access if you work out in the field for example you might have your laptop with you or need to access it through your phone and these are great reasons to sign up with a subscription for the QuickBooks online service we’re gonna actually take this from the very beginning I’m not going to assume you know anything I’m gonna actually start off showing you how to go online and pick the correct subscription we’re talk a little bit about working with QuickBooks Online and mobile devices and then we’ll take it from there and start actually setting up our company file we’re going to work with customers that side of things is called accounts receivable you’ll need to know how to create invoices what to do in the customer pays you how to actually put that money in the bank we’re also going to talk about the flip side which is your accounts payable that’s anything that has to do with the bills that come in the mail that you have to pay you’ll want to track those so that you know at any time how much you owe we’re going to be going through and talking a little bit about products and services those are physical things and sometimes you’re a service you provide but sometimes you buy products and you also sell products and we need to know how to set this up properly we’ll be looking quickly a payroll there’s a lot of other things we’ll look at but I want you to have a really good foundation for building your company file from the very beginning when you watch these videos make sure you watch them in order they won’t make very much sense if you get them out of order make sure you watch them all and make sure you watch them till the very end because a lot of times there’s a really good piece of information right at the very end of one of these videos if you have questions as we go along feel free to shoot us an email and we’ll get right back to you and answer your questions with that being said let’s go ahead and get started we’re going to flip over to section two and talk about the different subscriptions that you have available when you decide to go with QuickBooks Online thanks for coming back we are just getting started and the very first thing you’ll need to do before you start using QuickBooks is actually sign up with one of their subscription services it is not free to use the QuickBooks Online you do have to pay for it monthly and they have four different subscriptions that you can subscribe to I want to go ahead and pull up the website so that you can actually look and compare the different ones with me as we go through this alright what you’ll want to do is make sure you navigate to QuickBooks Intuit calm and you’ll see this screen right here which will give you a lot of different information on their subscription services one thing I want to point out is that they do have a try it free for 30 days for each of these that way you can see if you like it before you actually jump in and make a purchase I want to scroll down here because you’ll notice that this is where they have the different subscriptions listed and I want to compare these with you the pricing that you see here may change depending on when you watch this video you’ll notice for each of these that they have a monthly fee and right now you can say 50% off if you sign up for this three months at a time the simple start is the really basic one that you’ll want to start with if you’re a brand new business and you don’t have a lot of customers maybe not a lot going on with your business yet it’s great to start with this one and then you can always upgrade as you need more of the features let me go ahead and go through some of these features with you you’ll notice for the simple start that you can only have one user and that basically means that only one person can log in with that username and password if you need more you’ll notice that if you look at the essentials you can have up to three users the plus has up to five and then you can have up to 25 if you’re actually using the advanced let me scroll down a second because I want to show you that there are a lot of really good things about the Simple Start you’ll see for example that in addition to multiple users you can track your coming expenses they’ll all let you do that all of these will help you maximize your tax deductions they’ll all have mileage invoicing and accepting payments they’re all going to have reports as well but you’ll notice that the simple start and the one that’s to the right of it only give you the basic reports where if you need some more advanced reporting then you’ll want to go with these two over here which are the plus and the advanced and even with the basic reports you’re going to have a lot of reports quickbooks was really good about reporting you can do estimates in all of these if you think about a construction company you would want to actually estimate a job before you actually start doing the work and getting paid for it and that’s a really great feature they all have let me see scrolling down here you’ll notice that you can track sales and sales tax in all of these you can capture and organize your receipts mean you can scan them in you can also manage 1099 contractors in all of these and that’s really important because those are what you call your subcontractors and you need to know how to properly handle those you’re going to be able to actually manage the bills if you go with the essentials the plus or the advanced so notice that if you have the simple start you can’t handle the bills in QuickBooks and to me that’s really important because you want to track everything you owe because you’re going to need to really stick to your budget when you first start your business you cannot track time if you have simple start or you can’t do what they call tracking job profitability in the simple start even though like I said this is great for a new business starting out you’ll quickly want to upgrade to one of the others moving on to the essentials the essentials just doesn’t have the inventory feature the job tracking profitability you can kind of see the things here does not have you can’t send batch invoices and really if you don’t do a lot of these that may not be important to you the one that sometimes people want is the inventory feature and you would have to upgrade to the plus or the advanced to get that you’ll notice that the plus is the most popular one and it does not have the options for importing and sending batch invoices it doesn’t have the business analytics and insights options but you may not need these if you do want all of that you’ll want to go up to the advanced subscription here the other thing I want you to know is that you may go back and forth with these subscriptions because it could be that you add users like we saw earlier and you need to have maybe four people accessing your QuickBooks so as a lot of different things you need to think about and you can always call them if you’re really not sure which one would work best for your business I wanted you to be aware of that because the next thing you’ll have to do is actually start with one of these and you can actually choose to go ahead and buy now or like I showed you earlier you can go up to the top of the screen and you can actually try it free for 30 days and that’s where I want to stop right now we’re going to go through and talk about setting up your company file after you pick a subscription / module – but before we do that I want to briefly talk to you a little bit about how QuickBooks Online works with mobile devices over in section 3 I’ll see you there shortly before we go ahead and wrap up module one I wanted to briefly talk to you a little bit about some things QuickBooks does with the online version and how mobile devices actually work with QuickBooks Online the first thing I want you to know is that your online version is constantly evolving you might log in one time and be used to where a particular option happens to be and the next time you log in it may not be there at all or may be in a different location or look different when they rule out the changes they do not roll them out across the board for everyone at the same time that’s why your friend may have a version and he or she does not see the updates that you see but you’ll eventually get there the other thing I want to mention is that you have the ability to use different mobile apps for QuickBooks and they synch with QuickBooks depending on if you have an Android or an iPhone you can just go into your Play Store go into the app store in your iPhone and just look for that QuickBooks apps and you’ll notice that if you download one of them you can be able to take it out on the field with you and for example if you need to create an invoice out in the field you can do it right there on your phone and it will sync with your actual online version now the apps will not have all of the options that are available but they will have the basic most common ones that you would want to use go ahead also and look in your app store and see if there are other software apps that aren’t made by into it but would work well with QuickBooks and it might be something that you might need in your business so there’s all kind of apps that work with QuickBooks I just want to make you aware of that and if you ever wanted to just get a handle on what some of the changes are that they’re making in your version you can actually log into QuickBooks Intuit comm /blog and then you’ll be able to see all of the changes and stay on top of what’s new that’s going to wrap up module one let’s go ahead and jump into module two and start talking a little bit about working with the company files that you have to set up in QuickBooks we’re starting to work in module two now and this is where we’re going to talk a little bit about the QuickBooks company files anytime you create a file in QuickBooks it is called a company you can have as many companies as you would like often what you will see as a small business owner might set up one company with his personal information and another company that has the business information company files do not talk to each other you don’t have to worry about the data getting mixed up and like I said you can have as many as you’d like in QuickBooks you have to either create a brand new one which we’ll do in Section three you might already have the desktop version of QuickBooks and you want to upload your file to the online version we’ll look at that in Section two but real quick what I want to talk to you about here is the fact that you do have the availability of a sample file that you can go in and play with as much as you want you do not have to sign up with a subscription or anything like that to access the sample file all you have to do is head on over to QBO dot Intuit comm /r e dr forward slash test drive and the company file you’re going to be working with here is Craig’s design and landscaping services it is a service based business let’s go ahead and head on over there and we’ll check out Craig’s design & landscaping services the first thing you will have to do is just verify your real person I’m going to check the box I’m not a robot and then in this case it asked me to pick all the bicycles I’m gonna go through the list and make sure I got them all and I’ll hit verify now it knows a real person and I can access Craig’s design and landscaping services now while this is pulling up let me just mention a couple of other things about the sample file every day they update the date so you’ll see that date change you’re actually going to be working in the year 2021 in the practice exercise so just kind of know that when you go in here and this is what QuickBooks looks like when you first open it up now I do want to go through this Green and get you familiar with everything but I want to do that over in Section four before we actually go through this I want to show you how to upload your data if you wanted to bring your desktop file over or in section 3 talk about creating a new file so we’ll come back to Craig’s design & landscaping services a little bit later right now I want you to head over to section 2 and let me show you how to upload your QuickBooks desktop files to the online version okay we’ve already looked at some of the sample files that QuickBooks has we now need to talk about how do you actually go through and set up your new quickbooks online account all we’re going to do is navigate to where we looked at the different online subscriptions over a module one and then we’ll go ahead and decide which of those subscriptions we’d like to sign up with or we can sign up with a 30-day free trial let me go ahead and flip over and we will sign it for that 30-day free trial to show you how this works as you can see I’ve navigated back to QuickBooks to accom I think I’ll take advantage of the free 30-day trial I’m going to use this link right here if you see a pop-up that asks you if you’d like to sign up with the 30-day free trial you can use that option as well what I’m going to have to do here is create and intuit account and I can do this a couple of different ways I can actually sign up with Google and if I have multiple Intuit products then I can go ahead and use that one login for all of them I might also choose to use an email address and sign up that way I think I’ll go ahead and do that and use one that I just set up for this and it’s got my name here also it asks you to plug in your mobile number that’s recommended but you don’t have to and the reason that you may want to go ahead and do that is if you happen to forget your username or your login information and – it can help you recover that information by looking at your telephone number that you’ve plugged in you will want to create a password and make sure it’s something that you’re going to remember but hard enough that someone else can’t actually try to get into account remember a good password anywhere in your computer will have at least eight to twelve characters you’re gonna have a combination of capital letters small letters you might have special characters I’m gonna go ahead and choose a sign up with email once I’m done and this is going to create my intuit account I do get the option to skip the trial and go ahead and purchase my subscription but I think I’ll go ahead and continue with the trial for now what’s going to happen now is it’s going to start setting up what we call our company file each file in QuickBooks is called a company you can have as many companies as you like in QuickBooks this is going to launch us through what’s called the easy step interview where it’s going to ask us some questions and based on how we answer those questions it will set up all the options in our company file for us first we’ll see some basic information it wants to know what is the name of your business I’m gonna call mine a BC services and then the next thing it will ask us is to describe the type of business you do now if you start typing in things like plumbing electrical things like that then it’s going to start pulling from a drop-down list and looking for those first few characters there and if you see something close to what you do on the list just choose it there’s no wrong answer here just choose something close to what you do I’m gonna pick for example services and you’ll notice that there are several types of services that it thinks I may want to choose from I’ll just pick professional services in this case another thing that you have an option to do is if you’ve been using the desktop version of QuickBooks and you’d like to bring that data into your online version you have the ability to do that you can check this box and then it will take you into your computer so you can find that file we are going to talk over in section 3 about how to prepare that desktop file so that you can pull it into your quickbooks online file i’m gonna leave it unchecked for now and click Next the next thing I wants to know is what would you like to do in QuickBooks and you might want to do a lot of these different things you might want to send attract invoices organize your expenses manage your inventory if you have retail sales you’ll want to choose this if you don’t you may want to leave that alone maybe track your bills track your sales tax pay your employees and track your hours so you can see that you can choose a few of these or all of these I’m going to click Next to the bottom and now it says what is your role at the business are you an owner are you the bookkeeper maybe the employee usually the owner of the company is the one that sets up the file or it could have been that the accountant set it up for the owner whichever person set it up is actually going to be the admin or the administrator of the file meaning that you’ll actually own it I’m gonna go ahead and choose owner in this case and if I scroll down a little bit you’ll see that it says do you have an accountant or bookkeeper right now and you don’t have to say yes even if you do have one it’s just asking you this because it’s going to set up some of the options as we go down the road for the accountant if you happen to have one I’m gonna say right now then I’m just gonna do it all by myself and I’m gonna say all set at the bottom and now what you have is a basic setup for your QuickBooks company file there’s still a lot we have to do because it’s really a blank company file right now but at least we have the file set up so that we can work on it if you wanted to go through a 30 second tour to help you get down to business on QuickBooks you can do that I’m going to go ahead and close that out and then that is what it looks like when you first log in you are on what’s called the dashboard right now and the dashboard is just a quick way to see an overview of how different areas of your company happen to be doing now do you want to take time and go through this whole what we call user interface here I want to do that over in section 4 so right now let me show you how to logout and then where to go to log back in if you notice in the top right hand corner of your screen you have a gear icon and you can use the sign out option right here and that will go ahead and take you back to the screen now let me navigate away from this and then we will come back and you will see how to log back in so I’m at Google now and when you’re ready to login you want to go to QuickBooks dot Intuit comm which is where we were earlier when we first created our account and this time you want to go over here it says sign-in notice that you’ll sign up with a particular one that you actually subscribe to if you haven’t subscribed and you’re still using that 30-day free trial just use the QuickBooks online option which is the first one and then that’ll take you back in and you’ll be able to log in right over here and that’s all you need to know right now as far as setting up your company file well let’s go ahead now and talk real quick over in section 3 about how to actually go ahead and upload your QuickBooks desktop file if you wanted to bring it into your online account if you happen to have been using the QuickBooks desktop version and now you’d like to pull that data into the online version there’s a little process you need to go through and once you go through the process then you’ll want to run to reports to make sure that all your data pulled in let me go ahead and show you how this process works what you want to do is open up your company file in the desktop version and then go to your menu and click on company and down near the bottom you will see export company file to quickbooks online if you don’t see that option what it means is that you have some updates that you need to do in this version of QuickBooks before you can export this in order to do those updates just go to help and you’re gonna see it’ll say update QuickBooks right here now go through that update process and when you’re finished close the company file then open it back up and when you do you should see the option to export your company file to quickbooks online now what’s going to happen here is it’s going to ask you to log in to your online account once you click start your x4 here’s where you have to login so I’ll go ahead and put in my email address again gmail.com and I’ll go ahead and put in my password and I’m going to sign in now what’s going to happen here is if it doesn’t recognize you then it’ll want to send a code to your email to confirm your account if you had plugged in your phone number when you set up your account that it could send you a text that way I’m going to go ahead and tell it to confirm and I’m going to flip over to my email and get that six digit code and I’ll be right back I’ve got my coat now I’m going to go ahead and plug it in and then I’m going to hit continue at the bottom it’s going to ask me a couple of quick things before it can actually pull it up to the online version this particular one says do you want to bring over your inventory if you say yes you want to go ahead and select a date then you want to go ahead and pull it in from I’m gonna go ahead and say I’ll pull it in from January of 2020 and I’ll go ahead and hit continue the next thing is it wants me to choose my existing quickbooks online company file now if i have more than one you’ll see them all listed here and i just choose the one that i want and then I’m going to go ahead and hit continue at the bottom and now it’s preparing my company file which is Larry’s landscaping and garden supply here this process could take a while what will happen is you will actually get an email from Intuit once this process is complete once it is complete what we’ll want to do is go ahead and open both the desktop version and the online version and run some reports now this one finished pretty quickly I’m gonna go ahead and click on OK and now I should get an email from Intuit remember if you don’t get that email it’s not finished yet it might look like it’s frozen but it’s really not you’ll get it eventually now let me show you the reports that you want to run to compare your data in either version it doesn’t matter which one you do first you’re going to run a profit loss and a balance sheet in the desktop version you’ll get a reports company and financial profit and loss standard now when the report comes up there’s a couple things that you need to do make sure the dates are all that way you capture everything in your company file also make sure you’re running this on an accrual basis right up here you’re gonna want to run that one thing you’re gonna want to run the balance sheet you’re gonna go back to reports company and financial and run a balance sheet standard make sure that you pick all dates you’ll have to scroll up to the top for that and make sure you’re running it on the cruel basis even if in real life use the cash basis for this report we’re going on accrual so that you can make sure you’ve got everything here now I’m gonna go flip over to the online version and show you where to go in there to pull those same reports back in the online version the way you run your reports is if you notice on the left hand side over here you’ll see it says reports and then you’ll notice that both the balance sheet and the profit loss are already set under your favorites you can run either one first it doesn’t really matter I’ll just start with the profit and loss and if you get screens like this that says customize go ahead and just close that out for now and what you want to do is make sure that you choose all from the top of the list here and then make sure you hit run report and you can see there’s the data now you’ll do the same thing with that balance sheet you’ll go back to reports over here on the Left you’ll run the balance sheet make sure that you’re running this on accrual basis and also make sure you’re looking at the dates all at the top you’ll want to make sure accrual is chosen right there like I said and then run your report now print those out and compare those two if all the days it’s the same on both of those then you’ve got everything but if once different than the other then it didn’t actually export all your data and pull it up to the online version and you may want to try it again and that’s how you’re going to pull your data from your desktop version into your online version let’s go ahead now and move over into sections or and I’m gonna give you a quick overview of how the screen looks we call this your user interface okay what I’d like to do in section 4 is go ahead and give you a quick overview of what the user interface looks like basically the screen when you pull it up what is it you’re seeing and how do all those pieces and parts work let’s flip over to QuickBooks and I’ll give you a quick overview when you first log into your company file you’re going to be on what we call the dashboard right here and basically the dashboard is just a quick overview of how the different areas of your company are doing a couple things you’ll notice you have the ability to add your logo you can just click here search your computer for your logo and pull it in there are some things over here that it asked if you’d like to start doing you can click there so if you wanted to start invoicing for example you could choose that option you can also go ahead and set up some payments send your first invoice and swipe cards in person with your mobile app if you happen to have that set up now some of these things are not free they are fee based meaning that in two it will sell these to you so for example if you’d like to be able to accept credit cards then they can set you up with the merchant services account you’ll notice down here are all of your invoice options so think of this as your accounts receivable this would be the amount of invoices that you have outstanding they have not yet been paid over here your expenses those would be the bills that you’ve put in you would be able to see any of those you had not paid yet as well so think of this area as accounts receivable and this as accounts payable here where it says profit loss that is the most important report in QuickBooks because it will tell you if you’ve made money or if you’ve lost money and then over here you’ll just see all of your bank accounts and if you wanted to click on one you could let’s say for example I wanted to go to my checking account this one here is called checking if I double click and open it up that’ll take me directly to the checkbook register now imma close this message real quick we’re gonna spend some time in the register a little bit later but that’s a quick way to get into the register now if I wanted to go back to the dashboard all I have to do is come back over to my navigation pane which is what this is called and click on the dashboard and I’ll be back to where I just was this is called the navigation pane on the left if you went down to banking you would see all of your banking options I’m gonna click on banking here and what this is going to show me is how to actually set up my account so that it is connected to the bank and I can pull in my transactions now I’m going to talk about this a little bit later but you don’t always want to do this if you are actually using the invoicing feature in QuickBooks like you should and receiving payments or if you’re using the bill feature and paying the bills correctly then you don’t want to enter information twice so you can set it up but you’re not always going to want to pull in data from the bank now if you had a credit card it would work perfectly now I know that probably doesn’t make sense yet but we will talk about some of that stuff a little bit later on over/under expenses here expenses are things that you have to pay out you had to enter some bills you wrote some checks to pay those maybe use the purchase order system you can kind of see all that right down here the next thing is your sales these are the things that you actually sell to your customers you’ll notice that under sales I can look at invoices I can also look at my customer list as an example and I’ll just show you what that looks like real quick this is going to be a list of all of your customers and you can see that they’re set up alphabetical in this case by last name we’re going to spend time on customers a little bit later but that’s how you get to the customer list you also have different projects that you might work on in the desktop version they call these jobs in here they’re called projects you might have a particular customer you’re working with but you might have multiple jobs or projects going for that customer under the workers option this is where you’re going to find your payroll options there’s a ton of reports we’re going to be looking at a little bit later you’ve also got a place where you can go in and look at your sales tax and also payroll taxes if you’re doing payroll to QuickBooks you’ve got an option for mileage where you can go in and plug in which vehicle you drove which job you went to which customer you worked with those types of things accounting now this is going to be the one thing you want to remember how to get to because this is very important this chart of accounts is the backbone of all accounting when you spend money when did you spend the money for if you receive money was it a sale you made from your business you’re gonna have to tell QuickBooks where all the money connects to in what we call the chart of accounts we are going to be going through the chart of accounts over in module 3 notice also this is where you would reconcile if you wanted to reconcile your credit card accounts or your bank accounts you do that right there you’re gonna see my accountant which is the next one here if you actually have signed up with Intuit to use one of their QuickBooks bookkeeper accountant people that they have available then this is where you would go to actually find that person and invite them to be a partner with you as they call it there’s also some apps that work with QuickBooks you’ll see that right down here they’ve got a list of some of the more popular ones some of the trending ones or if you wanted to look through some of the different apps down here at the bottom and pick one that you might want to use you can do that down here where it says live bookkeeping this is actually where we were just talking about a few moments ago you could actually go to my accountant and have a an accountant partner with you they also have what they call live bookkeeping where you can actually pay into it and you get a bookkeeper that will take care of your books for you and both of you have logins to your company file so you can both get in there and do work and you can also have conversations so you’ll be able to talk to them live as well and then the last thing here is what we call a cash flow this is something new that will be coming to QuickBooks very soon is called a cash flow Center and you can see that it’s gonna let you know what else going on with your cash accounts meaning with your checking account and things like that and you get a screenshot over here if you want you can join the wait list and when the actual cash flow Center is ready to go then they will send you an email and just give you some more information about it now one thing to keep in mind I did tell you way back in the beginning that if you happen to log in tomorrow and let’s say for example this new button here is not there look for it or look for the options that were underneath it already because they’ve just moved them somewhere else and that’s just something they did recently actually is they used to have those options right over here and then they moved up here recently now just to tell you what the new is anytime you want to create something new like a new invoice or maybe add a bill those types of things you’ll see that in this list and you’ll notice that where it says money in all of these options are your accounts receivable anything having to do with customers whereas money out is your accounts payable and then where it says other these are just some other things that you can create new transactions in QuickBooks if you click on one of these particular options the other thing I want you to be aware of is what we call the gear and you’re going to see that right over here in the top right of your screen and we’re going to go through the gear options over in module 3 I just wanted to give you a quick overview of how this whole user interface looks and how it works now that you have a quick overview let’s head over into module 3 and that’s where I want to spend time talking to you about customizing your QuickBooks files we’re starting module 3 now and I want to start this module by briefly just talking to you about the gear menu there’s gonna be a lot of places in QuickBooks where you can customize things to make it work a little bit better for you but let’s go ahead and start there so that you can see what some of the options are and where you would go to make some changes to your company file the gear option is in the top right hand corner of your dashboard right here and you’re gonna see that when I click on this it’s going to give you some lists that you can look at it’s going to give you some of the tools that are in QuickBooks you’re gonna have access to some of your company options that you might want to go in and change like maybe the address things like that and also it’s got what they call a profile menu for your intuit account right over here when you’re looking in here you want to get really really really familiar with a couple of these specifically this chart of accounts right here we’re gonna spend more time on that later in this particular module specifically in section 4 we’ll get started with that but everything in QuickBooks will run through the chart of accounts that’s why it’s so important that you know where that is don’t confuse the gear icon with this new option way over here this is where you’re going to click if you want to create a new transaction maybe you need to create an invoice maybe you need to create a bill maybe you need to do something like track your mileage those are all new transactions you could create just recently they’ve moved this new button over here and renamed it it used to be right up here and everyone got confused between the gear icon and this now they’ve moved it way over here so that you don’t get confused anymore and it says new meaning new transaction that’s really all I want you to know about the gear menu right now what I want to do now is take you over into section 2 where we’re going to use the gear icon to go ahead and customize some of the options for your company file in section 1 we got familiar with the gear menu there were lots of different options there that you can use to customize how your company file works and I want to take you into the gear menu now and into some of those options and show you how to customize some of those different things so that your company file works best for you let me go ahead and flip over to QuickBooks and we will dive right in I’m going to click on the gear icon and I want to start over in the first column underneath where it says your company you’ll see an option that says account and settings these are going to be like preferences or options that you can turn on or off or edit in QuickBooks as we go down the tabs on the left and we’ll start with company if you want to change anything in these different sections just go over to the right and click on the little pencil icon and that will take you into the edit option you’ll notice here that I can add my company logo just by clicking the plus sign and that will let me navigate through my computer to find my logo I could edit the name of the company if I like also you might want to put in your EIN number or your social security number you’re gonna use your social if you’re a sole proprietor and you really don’t have payroll if you do have payroll you’re going to have to have your EIN number in here so that quickbooks can use it to help you with your payroll i’m going to hit save and that’s gonna save that little section the next little section says company type and you’ll notice the first thing is the tax form and then the industry I’m going to click over on the pencil icon here and I want you to notice that you have the ability to add whatever type of tax form that you actually file when you do your taxes at the end of the year you can add that here now let me just make a little point here you do not have to pick anything here as a matter of fact if you do not file your own taxes if you have an accountant then I would pick other or none every single time your accountant will know what type of tax form that you file if you pick any of these options what will happen is when you’re working in different places in QuickBooks there will be an extra field that says which tax line on the tax form would you like to put this on you’re not going to have a clue if you’re not an accountant and you’ll just get stuck there every single time so why see that field and get yourself stuck I’m just gonna pick not sure other or none and the other thing is you have an industry you chose when you first set up your company file I chose professional services you can change that if you want but I’m going to leave that and hit save the next little section you’ll see here has to do with your company email you’re going to have your customer facing email the difference is that the company email is the private email that you’d like different things sent to from Intuit for example the customer facing email is the one you want the customer to see and that can actually be redirected to your company email if you don’t want to have to open 15 different email accounts you can always have as many email accounts as you want and redirect them to the one you’d like to funnel everything into there’s a place of putting your company phone and your company website here again you would edit that over on the right and the company address down at the bottom same thing you can have a company address that’s seen on the back end and then one that’s called customer facing meaning that’s the one that the customer actually sees let me go down on the left here to billing and subscription this is where you’re going to be able to go in and upgrade your existing subscription if you’d like you’ll notice that you can subscribe right from here and you can see all of the options and we’ve talked a little bit about these before so I’m not going to spend much time on that the next one on the left is usage there are some limits to some of these different subscriptions for example when you’re using the QuickBooks Online Plus and you need more room you’ll want to go ahead and upgrade your subscription for example the one that I’m using only allows me one user if I want to add a user I may need to upgrade my subscription there is a number of items you can put in the chart of accounts as an example it’s 250 just a little fYI the desktop allows you to have 14,500 if I need 251 than I need to upgrade my subscription and then down here where it says classes and locations you can have up to 40 and if you need more than that’s another reason you would want to upgrade your subscription I’m going to go over to sales on the left and there’s several things in here that you may want to go ahead and work with now later on we’ll look at customizing the look and feel of your different forms for example if you have an invoice and you want to add your logo or something like that but these are some things you can turn on or off right here in your forms for example let’s say that you like to invoice your customers and you want the customers to automatically have terms of net10 for example well currently their net 30 let me go ahead and click on the pencil icon and show you some of these here’s where I could change this to one of these other preferred invoice terms if you’re not familiar with the ones that say 1% net10 like these three and there’s two percent notes in and eight basically what that means is the customer invoice will be due in 30 days but if they paid in 10 days they can take one percent off it’s a way to get your customers to pay you early if you have a preferred delivery method you can choose it right here do you like to print things now or would you like to send things later I’m referring to an invoice as an example here where it says shipping if you don’t ship anything then you can go ahead and uncheck this and this will say off if you do ship things then you had some options down here where you can have sales reps and put in purchase order numbers things like that these are custom fields you can also turn those off if you don’t need them if you want pio number not sales rep for example just uncheck the sales rep option you can have custom transaction numbers and that basically means that if you want to put in your own transaction numbers you can go ahead and set that series up you can have a service date field you can also have fields for the discount and deposits or tips or gratuity if you use that you can just go in and turn these on or off I’m gonna hit save right there the next thing you’re going to see is products and services right over here and you’ll see there are several different options related to that that you can turn on or off for example if you don’t track inventory you can actually turn off this inventory option right here I’m going to go ahead and cancel that there’s also some options for late fees there’s also some for progress invoicing and let me just mention what that is just so you’ll know if you estimate jobs construction is a prime example you’re going to want to take that estimate and turn it into an invoice at some point so that your customer can pay you you do not have to pull everything from the estimate into an invoice you can pull in 30% for example or maybe you want to pull in certain items that were on that estimate into an invoice if you do estimates you will want progress invoicing there’s a couple more options here let me scroll down there is an option for messages when you actually email a form so let’s say it’s an invoice for example or what they call a sales form you have the ability to email it directly to your customer you can set the default message and I’ll go ahead and click on that one so we can see you can say Deere or you can say to notice you can have a merge field if you want to have their full name there’s lastname firstname and you can use the standard message that you see right here below when you’re actually sending out that email you can also have a copy email to yourself every time if you’d like I’m gonna go ahead and hit save down at the bottom a couple more things I want to point out you’ll notice there is an option for reminders and I want to briefly tell you how reminders work but before we do that I think we’ll go ahead and stop the video right here let’s go over into the next section and I’m going to talk to you a little bit more about some of these other options here for account and settings hey welcome back let’s go ahead and finish up talking about customizing your company file this is actually part two of section two let’s go back down to reminders I’m going to click the pencil icon there’s a couple of options that you want to be familiar with in here you have the ability to set up invoice reminder emails for an example if your customer is late paying an invoice or you just need some reason that you want to remind your customer to pay that invoice then you can go ahead and either use the standard message or you can go ahead and edit the one that you see down here and you’ll see it just basically says this is a reminder we haven’t received your payment yet you do have the ability to insert a placeholder which basically means that anywhere in here you can put in the company name or the invoice number and that would actually be a merged transaction as what they call it it’ll pull from QuickBooks that information you can email yourself a copy and you can go ahead and save this when you’re done you also have options for online delivery down here at the bottom you’ll see these are email options for all of your sales forms your options for this will be when you actually email your sales form over to your customer do you want to have a short summary show up in the email or show the full details in the email you can also attach it as a PDF right here and some additional options you have is if it’s an online invoice you can actually set it up for HTML or if you want it to show up in plain text but you probably want to leave it online invoice and then click Save and the last one I want to mention at the bottom here are statements and I’ll go ahead and show you those options a statement goes out at the end of the month and basically it starts with the balance from the prior month it shows all of the transactions that month and then what the customer owes at that point it’s really a gentle reminder for your customer to go ahead and pay you statements are not mandatory but they certainly do help when you’re trying to collect money you’ll notice that when you print statements you have an option to list each transaction on a single line or list each one including all the details on that particular one you can also show the aging table at the bottom of the statement and what that means is it will have a field that says one to thirty days another one says 31 to 60 and another says 61 to 90 and that way your customer will know where they fall in that particular aging table I’m gonna go ahead and hit save and those are your options that happen to be under the sales let’s look at the options for expenses expenses are things you have to pay bills that come in the mail that you have to pay for example your options are to show item table on expense and purchase forms you can track expenses and items by customer make expenses and items billable and default bill payment terms make expenses in items billable let me just tell you what that means real quick if you have to purchase a product or service and you want to make sure that you invoice your customer so you can get reimbursed for it instead of just manually putting those receipts in the car or keeping them on your desk QuickBooks will remember those expenses and when you’re ready to invoice the customer you can just pull them in you also have the ability to use the purchase order system so if you don’t use purchase orders you might decide to turn this off also you have this option called messages at the bottom this is a default message that will be sent when you send purchase orders I’ll go ahead and open that one so you can see the default message you can also edit this to say anything you’d like and then make sure you save it when you’re done the next tab on the Left says payments this would be customers paying you there’s a couple things you can do one is if you want you can sign up with QuickBooks to receive payments quicker by going through this little service QuickBooks has it’s very similar to the way PayPal or zel might work you just signup forward if you wanna learn more you can click here and that way you can actually email an invoice to a customer for example they can click a button right there and pay you right then in there QuickBooks will automatically be updated once you’re paid from your customer if you already have some sort of existing account with Intuit for example they have something called go payment or merchant services you can connect it to your QuickBooks as well right here and this is where you connect and the last option says advanced there are several things here I’ll just mention briefly if you want to have the first month of your fiscal year start maybe in September you can actually go ahead and change this it’s going to default to January make it correspond with your real existing started or fiscal year you might have a different date for the beginning of your income tax year so you can go in and change those your accounting method is set for accrual when you run reports you can run them on an accrual basis or cash basis accrual basically means that as soon as you invoice it shows up as income where their customers paid you or not as soon as you enter a bill it will show up as an expense whether you’ve paid it or not if you change this to what they call cash basis you will only show the income once you receive the money from the customer or you’ll only show the expense once you actually spend that money I want to mention closing the books as well because this is an option that you’ll want to think about in real life accounting what happens is you close the books at the end of the month and you close the books at the end of the year and what that means is if you want to make a change in a closed period you can’t do it you need to make an offsetting entry in the current period your books are not closed automatically in QuickBooks it doesn’t remind you anything so if you want to close them you have to come here you’ll be able to go in and you’ll be able to tell QuickBooks that you do want to close the books and then you can set a closing date let’s say you set it for December 31 of 2019 that means that after you are working in the next year but you see a change you want to make in 2019 prior to December 31 you’re not going to be able to change it I’m gonna go ahead and cancel out at that we talked a little bit about tax forms earlier you want to make sure you keep that one also the chart of accounts I know you haven’t seen it yet but basically everything in QuickBooks will run through this chart of accounts and currently they do not have general ledger numbers they’re just a list alphabetical for each type if you want to turn on general ledger numbers you can turn them on right here also you have some options for the markup income account and we’ll address that a little bit later let me mention real quick the track classes and the track locations locations means if you have different physical locations for your business you can turn this option on and every transaction that you work in you can choose which location you want that to go to classes is very similar except it’s not really locations think about this let’s say that you happen to have two different divisions of your company you might use those for your class list and everything you do make sure you pick the correct option from the list there’s some things about forms where you can have it pre-fill automatically automatically apply payments things like that you might want to look through that at some point a project would be like a job related activity you’ll notice that you have the ability to organize all of those job related activities in one place and that is turned on you’re also viewing QuickBooks in the business view there is an option to go ahead and also see this in what they call the accountant view time tracking if you want to be able to track the time that you or your employees spend working on different projects or jobs you have the ability to do that you can also come down and change the currency there’s some date options and things like that all the way down here that means there’s a lot of options in you can go through and set you’re going to want to look through these you don’t have to get them all right away but at some point if you want to set these you just come back in and make all these changes I’m going to go ahead and close that with the X at the top right and that’s going to take me back to the dashboard let’s go ahead & Nail move over to section three and I’ll show you how to manage users one of the things that you will want to do is make sure that each person that is using QuickBooks has their own login you’ll give each person their own username and their own password only the administrator can add edit or delete users you can have up to five users in your QuickBooks file if you need additional ones you can think about upgrading your subscription or purchasing those additional ones that you might need the reason you want to have these additional users set up is because if you want to track down the errors then you’ll want to know who was logged in at the time that that particular transaction was changed you can run an audit trail to see a report on which user was logged in with the transaction used to look like and what it looks like now you also will be able to limit the users access to certain areas of QuickBooks let’s go ahead and flip over and I will show you how to manage the users keep in mind that the administrator has to be logged in in order to work with the users I’m going to go up to my gear icon in the top right-hand side of the screen and in the first column you’ll see an option that says manage users the first thing I want to point out is that normally if you’re using one of the basic subscriptions then you only have five what they call billable users in your plan and like I mentioned earlier you do have to upgrade if you want to have additional users the admin is considered one of the five users and you can see here is the admin name if you wanted to edit the admin information you can choose the Edit over on the right and then come over here to edit user settings typically when you first set up QuickBooks you’re gonna see the email address that you signed up with right here under the first name field and there won’t be anything where it says last name you could come up here and change those like I did I’m going to go ahead and hit save at the bottom if you want to add a user just come over to the right here and click on add user your user that you’re setting up can have what they call standard rights which means that you can choose to give them full rights but you can also choose to limit their access to certain areas or you can give them company admin rights which means they have access to everything these options up here count towards your five user limit we discussed these here don’t because you might have someone you want to be able to log in just to run reports or maybe just to do time tracking I’m gonna go ahead and choose standard user at the top and click Next in the bottom right hand corner of the screen the first thing it asks me is how much access do I want to give this user now if you say all notice it will include payroll and it will check that and you can see all the different things they have access to over here if I go ahead and uncheck that you’ll notice that the things they don’t have access to do or down the bottom they can’t add or edit employees in this case or delete payroll transactions it could be that I say none I don’t want them to have rights to any of these accounting features but they can still manage other things in QuickBooks like submitting their own timesheets things like that I can also give them limited access meaning if I want them to be able to do things with customers you can see the choices here or if I want them to do things with vendors or both you can see I can check both and you’ll see all the options here as well I’m gonna go ahead and click Next and now it asks me do you want this user to add edit and remove users we’re going to say no and I wouldn’t change that because you want the administrator to have rights to everyone if you start giving everyone full rights to change users and that sort of thing then what’s the point in even setting those up notice that you can also give this person permission to add the company info or if you want them to manage the subscriptions you have the ability to do that as well I’m gonna go ahead and click Next at the bottom then it says we’ll invite them to create a QuickBooks account and password for each to access the company file what you’re basically going to do here is the new user you’d like to setup you’re going to put in their first and last name here put in their email and they will actually get an email saying that the administrator would like them to become a user they would accept and then they can set up the username and password make sure that the administrator knows that information you wouldn’t want to have an employee that has their own username and login information and the administrator doesn’t know what it is and can’t have access to what they do that’s going to be very important for you I’m going to go ahead and just X out of this because at this point what would happen is once they accept it then you would see their name down here as a user and that’s really how the users will work I do want to show you the audit trail report but we’ll do that when we get over to reports a little bit later let’s go ahead and wrap up this section and let’s talk over in section 4 about the chart of accounts we’re getting ready now here in section 4 to talk about the chart of accounts the chart of accounts is probably the most important thing in QuickBooks every single thing in QuickBooks will flow through the chart of accounts somewhere the chart of accounts is basically a listing of different areas where you might actually spend money or you might receive money as well and you’ll want to make sure that your information goes into the correct categories that way when you run reports you have accurate information there is a part two to the chart of accounts make sure you watch both parts so that you have a really good understanding of how the chart of accounts works let’s go ahead and flip over to QuickBooks and we’ll get started there are a few different ways to get to the chart of accounts one way is to go through the gear icon and in the first column you will see the chart of accounts another way is just go over to the left and click on accounting and there you will see the chart of accounts as well and this is what your chart of accounts looks like remember that every single thing in QuickBooks runs through one of these that’s why it’s so important that this is set up correctly but let me quickly give you a quick overview of how the screen looks you’ll notice the first column is the name of your account when you’re setting these up you can pretty much name this accounts anything you’d like but make sure that you name them something that makes sense to you or whoever happens to be looking at your reports the second column is the type and notice that it’s currently sorted by type we’re going to be going through all the different types so that you will know which ones you need to set up to make sure that you have everything you need I want you to notice also that when you’re looking down this list and you see the type for example income notice that the names are alphabetical and that will be true of each of these types if you look at the expenses here then these are alphabetical if you want to turn on general ledger numbers you have the option to do that and let me show you what it will look like if you do you’ll actually go up to your gear icon then you’re going to go into account and settings then you’ll want to choose advanced on the left-hand side and under advanced you’re going to see an option that says enable account numbers right here currently they’re off if I choose on just by clicking there and choose enable account numbers notice that turned it on and I can show account numbers and then save and I’ll show you what this looks like now let me go ahead and close this and you’re going to see now that you’ll have a new column at the beginning here where you can actually go through and putting your own account numbers there will not be in here automatically you have to add them the way you would add them is the way you would edit any of these accounts just come over to that line that the account you want to edit is on you’ll see a down arrow and you’ll choose edit and in this window you have the opportunity to add your new account number right here I’m gonna go through this screen in a minute so I’ll just close that for now and I’m going to go back and turn those account numbers off for just a moment account in settings it’s going to be the advanced option on the left and I’m gonna go ahead and turn off enable account numbers just by clicking that word on and I’ll uncheck these and save that now let’s go back and finish going down our list here the next column that you’re going to see next to the type is going to be the detail type and that’s just telling you a little bit more information about the type that you chose there’s also the QuickBooks balance and the bank balance the QuickBooks balance would be if you had entered some transactions in QuickBooks what is that balance for that account the bank balance column will allow you if you pull in your entries from the bank that’s called downloading your transactions then you’ll see what that balance is as well and you can see that you can match those up and see if you’re in sync here and we’ll be getting into that a little bit later but right now what I want to do is start talking to you about the different types of accounts you’d want to add and then we’ll add a few so you can get a feel for how this works the first type that I want to talk about our bank accounts you’ll notice there are no bank accounts at the top of this list that means that right now you do not have a checking account you don’t have a savings account any kind of bank account you have the ability to add these you’re going to be doing this by clicking over here where it says new and the first thing you’re going to do is pick the account type in this case it will be Bank but notice all the other types we’re going to be talking about weird says detail type right here just go ahead and pick the option from the list that closely matches the account type you’ve chosen over here is the name of the account when you name your account you can name it anything you want if you want to call it your bank name you could do that if you want to call it operating account and maybe another ring called payroll account you can do that whatever you like to name it I’m gonna go ahead and leave it on checking for now description is totally optional and there’s not a sub account right now but later on I’ll talk to you about how sub accounts work the other thing you want to think about is a start date to start tracking the money in this checking account now what you want to do is if it’s the beginning of the year like it is currently then you probably want to go back to January 1 or the beginning of your fiscal year and put in all the entries if that’s the case then you can choose beginning of this year you might decide if it’s later in the year and you’re starting your QuickBooks file to go ahead and start with the beginning of that current month you can also pick other the reason you might want to pick other is what if you have a bank statement that cuts off in the middle of the month that would be an option where you can tell it a specific date to start with it really doesn’t matter what date you start with just try to make it correspond to the start date of your bank statement I’m going to go ahead and say beginning of this year and I’m gonna go ahead and put in the balance the ending balance on 12/31 of 2019 would be the exact same number as the beginning balance of 1 1 2020 you’ll want to get that number from your bank statement I’m gonna go ahead and say it was 250 dollars and 62 cents and I’ll go ahead and hit save and close at the bottom and now you’ll see at the top you have a checking account and you have a balance of two 50 and 62 cents you also have the ability to view the register I just want to show you that real quick if I come over here to view register then this is what the checkbook register actually looks like I’m gonna close this this is just some information on what a register looks like and what it’s supposed to do anytime you want to go back to the chart of accounts you’ll notice right up here it says back to chart of accounts and that’s going to take me back to the screen now I also want you to notice something that happened any time in accounting you do something like this then you will have a debit and a credit for that transaction you’ll notice that in this case the flipside the money went to an account called opening balance equity and that’s the way it should be you can’t change that just know that whenever you have a starting balance which could be a minus number if you have a loan but this is going to be an actual picture of what your books look like so don’t freak out if you see a negative number there it’s an accurate picture of your books let’s go ahead and talk about some other bank accounts you obviously would have savings money market accounts things like that but think about do you have PayPal do you accept square those are bank accounts as well so if you do accept those then you want to set this up as bank accounts what would eventually happen is you would transfer money from PayPal or square into your checking account or sometimes you go the other way but those are just bank transfers the next type I want to talk to you about are your assets and you’ll see there are a couple of these here an asset is something that your business owns that makes it more valuable you’re going to have equipment you’re going to have chairs desk lamps vehicles property assets fall into one of two types there are fixed assets which are things you plan to keep long-term like the vehicle or property then there are what we call more liquid assets or QuickBooks cause some other current inventory is a great example of that because I’m worth more right now because I have inventory in the back room but my goal is to sell it and get it out the door now what’s going to happen with assets is you’re going to set up big bucket categories and what I mean by that is instead of listing each vehicle the business owns you’re going to have a category called vehicles and they’ll all dump into that one category you don’t want to have a hundred different categories for your assets because no one wants to sit there and look at that just have big buckets maybe seven to ten good ones some of the common ones that I see are vehicles you might have one called furniture and fixtures you might have one called property if you have a lot of property you might have equipment but again they’re just big buckets this is where the accountants going to be very helpful to you because the accountants going to help you decide which categories to set up and also when you start talking about the money part then the account it’s going to help you plug in how much the vehicles were worth and depreciation and things like that QuickBooks does not do depreciation and that’s because there are multiple ways to do it if you had ten accountants they might all tell you a different way they want it done so just know you want to have the account set up so that if you go to the bank to get a loan for example the bank will know that you do have some assets we’re going to move down the list but before we do I want to go ahead and stop the video here and have you go over into part two and we will continue talking about the different types that you’ll need to set up we’re in Section four and we’ve just talked a little bit about how to start setting up some of the accounts and your chart of accounts I want to go ahead and finish telling you how to set up the rest of those accounts so let’s flip over to QuickBooks and we’ll keep going the next type that I want to talk to you about our what we call your liabilities a liability is something you owe now I’m not talking about the monthly payments you have to pay for the electric bill things like that what I’m talking about is a loan you’ve taken out the bank when you think about your liabilities there are really two types there are what we call long term which are things that you’re going to pay on for more than 12 or 13 months and then there are short term which is under a year basically and QuickBooks calls them other current liabilities when you set up your liabilities you want to set up a separate one for each loan that you have and when I say loan it could be a car loan it could be you as the owner decide to set up a loan where you put money into the business and you want to get paid back you might have borrowed from the bank those are all different liabilities you want to set up and each one should be set up separately let’s set up a car payment so you can get an idea of how you would set up these accounts I’m going to click on new and the first thing it asks me is to pick the account type here you’re going to see your other current which is a short term and your long term liabilities which what I’m gonna choose in this case another thing to notice is that where says detail type if you see notes payable that’s just an accounting term for a loan basically over where the name goes this is where you’re gonna pick the name that you want for your loan I’m gonna call mine the bank of any city but you can call this anything you want sometimes what I’ll see people do is put the last couple digits of their account number here just so that they can see which loan they’re looking at when they have it pulled up in front of them description is totally optional this is where you might say that this is my 2019 Jeep Cherokee loan or you can leave it blank and then we’re going to have to pick a start date now remember if we’re starting your company the beginning of the year what you’ll want to do is for your beginning balance here find out what the amount you owed as of in this case January 1 was so that you can plug that in it’s not the amount you started with when you purchase the vehicle two years ago it’s the amount you owed as of the start date of your company file I’m gonna put $15,000 in here and then hit save and close at the bottom and now what you’re going to see is that you have a loan right here notice it says Bank of any city and the balance is $15,000 every time you make a payment on the loan this is the account you want to put it to your car payment is not an expense to the business do not set it up as an expense account it is a loan and you want to know when you’ve paid off the loan you’ll also be able to on each individual check that you write you’re going to be able to put in how much is principal and how much is interest there the other thing I want you to notice here is look at your opening balance equity it’s a negative number and that’s because I said that when you owe something it’s a negative number and this is an accurate picture of what your books look like let’s talk about credit cards a little bit and I’m talking about credit cards that your business uses to purchase items for the business this has nothing to do with accepting customer credit cards you want to set each credit card account up separately so that you can track each one I’m gonna go ahead and set up a new one for you the type is going to be credit card I’m going to name my card I’ll just call it visa and I’m going to pick the start date of my company file the beginning of this year and the starting balance would be the starting balance from my January bank statement if you don’t have your January bank statement then you can grab your December of 2019 and plug that number in I’m gonna say was $2,500 and I’ll save and close and now what you should see is that you have a credit card and you owe $2,500 when you make a payment towards the credit card you’re going to actually put it to this account always do not try to break it up that so much as gasps and so much was meals because there is another way to do that in QuickBooks all the payments go directly to the credit card account going down the list the next type that I want to mention is where you see equity equity basically means equal if you think about it you’re the owner of the company when you take money out that’s considered an owner draw when you put money in is considered an owner contribution now they’ve got some other terminology you’ll notice owner investment is when the owner puts money into the business and owner pay and personal expenses is when the owner takes money out of the business what I don’t want you to do is make a deposit from your personal account and consider it income it is not income to the business it’s considered equity the next type that I want to talk to you about are your income accounts I’m going to scroll down just a little bit here you’re going to see that there is one called sales income and typically when you make a sale for your business this is the account that you want your sales to dump into you can have a few extra ones added if you’d like maybe you have different areas that you do business in and what I mean by that is in your company maybe you have different things that you do and you’ll want to actually set those up so you can see how much income you’re getting from each one that’s certainly okay keep that list pretty short though no one wants to read 50 different lines of income accounts but sales is normally where you’ll see most of that go into the next thing I want to mention is your cost of goods sold think about the things that you have to buy to make a product or service in your business you have to buy materials you’re going to need subcontractors sometimes maybe you have Freight that’s part of that anything that you have to buy to make a product or service in your business is considered a cost of goods sold and you want it to show up on a profit loss as being deducted from your total income the largest grouping that you’re going to see are your expense accounts and you’ll see there are a ton of these here you’ll also add a lot of these let me show you how to add some sub accounts so you’ll see how this works let’s use car and truck as an example we have the main account here but I want to add a sub account called gas and maybe another one called repairs and maintenance all you’re going to do is go back up to the new option and the top right of your screen here you are going to create a new account and it has to be the same type as the main account so that means this one has to be an expense account and in this case it is Auto and I want to name this one fuel what I’m going to do is check it’s a sub-account of and then from this list here what I’m going to end up picking is car and truck so see how that fuel is a sub-account of car and truck and when I click Save and close at the bottom I want to show you how sub accounts look see how fuel looks like it’s indented a little bit that’s a sub account and there’s going to be a lot of these you’ll want to add when you’re going down this list think about insurance you might have general liability you might have auto insurance those would be sub accounts of insurance going down under legal and professional fees often what I’ll see is accounting and the attorney will be sub-accounts of legal and professional fees and you can just come down and make this list look any way you want there’s utilities at the bottom you’ll want to have telephone underneath gas electric any of the utilities that the business pays that’s going to give you a quick overview of setting up your chart of accounts make sure you spend some time on this and get it set up the way you want it you want it to be as detailed as you need it to be to get your numbers but don’t make it so detailed that no one wants to read it you can always set up accounts later as you go along as well because you’re not going to catch them all right away well that’s going to wrap up the chart of accounts let’s go ahead now and move over into module four and we’re going to talk a little bit about working with accounts receivable and we’ll start with learning how to set up customers we are getting ready to start talking a little bit about the accounts receivable portion of QuickBooks if you’re not familiar with that term anything happened to do with customers in your business that’s called accounts receivable customers are people or businesses that buy from you you’re typically going to make a sale and that’s going to be income to your business we need to talk first of all about how the customer list is set up and then once we do that we’ll go into the second section and I’ll show you how to add some customers to this list the way you’re going to get to a list of your customers is to go over to your navigation bar on the left point to sales and then you’ll see customers in the list at the very top of your customer list here you can see the dollar amount for any of these categories you can see that for open invoices I have thirty five thousand eight hundred and ten dollars these are invoices that have been created and the customer has not paid them even if they owe a penny if you had any of this amount that was overdue you would see that over here and overdue means that if you had set specific terms on an invoice say net 30 meaning that invoice was due in 30 days and the customer has not paid you by then then some of this moves over into the overdue category you can also see how much was paid in the last 30 days in this case nothing there’s also a dollar amount for what we call unbilled activity and for estimates sometimes you will get little messages like you see here right above your actual customer list you can close those with the little X in the right-hand corner and then you can actually see the list the customer list is set up alphabetical by last name you’ll notice that when you look down this list the list is set up by last name comma first name you’ll want to do that because it’s a lot easier to find someone when you’re looking for them if it’s set up that way obviously a business like Adams candy shop would not have it last name and a first name so it just sorts the first letter which is a in this case with the A’s in the list if you see a little envelope to the right of some of your customers that means that if you click there you can actually send that customer and email if their email address was set up when you actually set up the customer then it would pull it like you see here if not you’re going to notice that there’s no envelope meaning that you have not put in a customer email address in the customer information these are what we call sub customers sometimes they’re called jobs sometimes they’re called projects in the online version the technical term is a sub customer they’re both sub customers of in this case Mike Ballack you can also see the customers phone number and the open balance meaning how much money that customer owes you there’s also a column for actions if you happen to be on this screen and you’d like to take one of these actions related to this customer you could do that for example you can go ahead and create a statement or an invoice right from here just know that you’re not always going to be on this screen when you want to do those things so there are other ways to do those actions notice you can also search for a customer right up here so if you wanted to look for Mike bellick for example you can start typing the last few characters of their name and then you’ll see that it pops up in the list over on the right-hand side you have the ability to print a list of your customers you can also export this list to excel if you’d like and there’s also some settings and I want to click on those for a moment because I want to show you that these are going to be the columns that you see up here if I’d like to see their email address I just choose that and notice now I have a column for email or if I’d like to see their address I can click on that and now I see their address as well it’s just how do you want to actually look at this list another thing I’ll mention way back over in the left where it says batch actions if you have multiple customers selected from the drop-down list you can actually email all three of these customers or you can make them inactive an inactive customer is a customer you’ve used in the past therefore you can’t delete them but if you haven’t seen them in a long time and you just want to hide them from the list you can make them inactive that’s a quick overview of the screen itself here what I’d like to do now is take you over into the second section and show you how to add a customer to the customer list now that you’ve gotten a quick overview of what the customer list looks like and how it works we need to start adding some customers to this list let’s go ahead and flip over to QuickBooks and I will show you how to add your first customer if you’re in your customer list you’ll notice in the top right hand corner there’s an option to add a new customer there’s also a down arrow to the right of that because you can also choose to import customers what if you have a list of customers already set up in Excel you can just import those so that you don’t have to set them up one at a time we are going to talk about importing customers from Excel over in section 5 of this module for now I’m going to click on new customer we’re going to put in some customer information on this screen and you’ll notice the first thing it asks for is the company name remember that a customer can be a company a customer can also be an individual that works for a company or it could just be an individual and there’s no company in that case you wouldn’t put anything in the company name field but I’m going to go ahead and put in this customers company its BRC supplies and you’ll notice that because I typed a B it starts pulling down a list of different companies that it’s failed and their addresses so if I want to just choose one of these I could but since I’m typing this inference garage I’m going to go ahead just click over to the side somewhere and then I can come back over and finish filling this out this customers name is Tom Allen and notice it now has a display name as Tom Allen you can change that display name to show as the company name or last name comma first name display name means the way you see it in the list over here remember we talked about the easiest way to find customers is to type it in last name comma first name just be consistent with however you decide to do it it’s also going to use the display name as the same way it’s going to put their name on checks it looks kind of funny if I write a check to Allen comma Tom I’m gonna uncheck the box and then I’m gonna put in Tom Allen and that way that’s how his checks will appear when we put his name in there over on the right you see I can type in an email I’ll just say Tom at Yahoo you can also put in Toms phone number Tom’s mobile fax other end website also if this is a sub customer I can check the box and choose the customer that he is a sub customer of we’re actually going to do that over in section 4 now notice I’m on the address tab and this is where I’m going to put in the billing address I’m going to go ahead and say he’s at 1 2 3 and we’re going to say this is Billings Road this is gonna be in the city of Bayshore California States California and the zip code is nine four three two six the country will just say USA now you’ll notice that the shipping address is the exact same as the billing address if you don’t ship anything you don’t have to worry about that but if you do they may want their invoices going to one address and the actual things your shipping going to a different address you can uncheck the box and change that information if you need to I’m going to go ahead and hit save and let’s see if Tom Allen is in the list he should be in here’s Allen comma Tom and he is you can see it right over here now what I mentioned a couple of things when you’re in this list if you have a customer that you accidentally put in you cannot delete that customer the online version of QuickBooks lets you make a customer in active meaning you hide them from the list but you cannot delete them now what you’re going to see is all the information you had set up about Tom Allen notice a couple of things you can add some notes if you want to this customers record I’ll just click add notes just to show you let’s just say that we can put in here this is a new customer for the year 2020 and that’s a note that’s all you have to do there and now that will show up any time you want to see that notice also there is a tab for the transaction list down here and obviously we have no transactions yet but as we start creating invoices receiving payments that sort of thing they’ll show up right down here the projects these are going to be the jobs that we actually do for these customers there aren’t any set up yet here we can also see customer details this is where we’ve got all of the information we had just set up for this customer and then also if there were any late fees you would see that listed here as well and that’s how you set up a new customer I’m going to hit this customers link here on the top left and take me back to the list of customers and notice Tom Allen has an envelope to the right because we did put in an email address for Tom Allen that’s pretty much how you put in a new customer what I want to do now is take you over into section three and I’m going to show you how to add a sub customer now that you know how to add a customer let’s talk about how to add sub customers a sub customer is basically going to be a way of adding a level underneath your main customer if you have different jobs that you work on for a particular customer you can actually separate those jobs by actually creating sub customers then you can look at reports for the entire customer but also per sub customer in the desktop version of QuickBooks they actually call these jobs sometimes they’re called projects here like I said the terminology is a sub customer let me show you how to set those up to create a sub customer we’re still going to use the new customer button because it is a new customer we’re setting up they’re just a sub of another one we already have existing when this comes up all you want to do is put in the display name you can see in their case they’re using street addresses I’m going to make up one one twenty four and this will be Scottsdale Drive and the only other thing you want to do is come over here where it says is sub customer and underneath it pick the customer that you want to apply this to you can also see it says bill with parent over on the right and you do want to keep this together you can also build this customer individually we’re gonna leave it on bill with parent and you’ll see that it actually pre-populated all of this information from Tom Allen’s setup we don’t need to change any of this unless it happens to be different we’re just going to hit save and then that’s going to be our next level we’ve created you can see it right over here and that’s all there is to creating a sub customer now a couple things you need to know if you’re using the sub customer feature you want to use it consistently throughout QuickBooks if you don’t let’s say that you’re working on some transaction and instead of picking 120 for Scottsdale I picked Tom Allen it’s still going to go to the right main customer but on reports you’ll see other and you’ll go what’s going on you want to make sure that you put it to the correct a sub customer if you’re using the sub customers option not every business will use the sub customer option but it’s really great if you need to break out different projects like I said or maybe you have different locations for our particular customer things like that that’s really all there is to working with sub customers let’s go ahead now and move over into section 4 and I will show you how to edit an existing customer once you have a few customers set up you’re going to realize that you need to edit some of the information maybe you actually set up the information wrong or it could be that the customer information has changed maybe they’ve moved they have a new address you want to add a website you can always go in and edit the information about your customers and it’s a pretty easy process so let me show you how that works if you want to edit a customer’s information make sure you click on your customer over in the customer list and then come over here and choose this edit option let’s say that Tom’s email really includes his last name I’m going to go ahead and add and let’s say that when we set this up we did not look at any of these tabs so let’s go through those real quick so that you’ll know what other types of information you might want to set up when you’re setting up your customers we’ve looked at the address tab now let’s take a peek at notes this is where you can add any notes you would like pertaining to this customer the best thing to do is just drop down after the previous note pop in the date and then pop in any notes that you might have pertaining to this particular customer the third tab over says tax info this has to do with collecting sales tax from your customer if you sell physical items and you charge sales tax you need to tell QuickBooks that this customer is taxable and what the default tax code is we’re going to talk about sales tax later on but just to give you a heads up what you’re going to have to do is where you’re setting up the items or the different things you sell they actually call them products and services in here then what’s going to happen is you’re going to set up each sales tax you need to collect and then you’ll group them together to create one big tax so that you’re charging the customer correctly and that’s where you would put that tax code let’s say that it happens to be the San Domingo we’ll choose that and now what will happen is when we invoice a customer it’ll pull that tax code automatically the next one is payment and billing a lot of this is just information for you first of all the preferred payment method does this customer you usually like to pay you with cash check barter or MasterCard you can kind of see the list there if you need to add a new way that the customer can pay maybe PayPal Square you can just hit add new right here and then you can actually type in the name of that new payment method and then hit save and now PayPal will be on the list since I just added it it does not mean that the customer pays you with PayPal every time it just means that’s their preferred way they typically like to pay you preferred delivery method how do they like to have their invoice sent to them do they like to have them print it and you can print them later or do they like to have them sent email where you can send those later or do they not have a preference terms you can have different due date two terms per customer if you have a really good customer you might have net 30 if you have a customer that’s brand-new you might say do a pom receipt now let me tell you why you have this opening balance field here as of the start date of your company file how much money did this customer owe you let’s just say it was a thousand dollars you could plug that in there and the accounting would be correct but you would not have a way to go back and see that that was actually three separate invoices you sent them that total eight thousand dollars I like to go back and put each invoice in that the customer still owed me four and not fill this in but whichever way works for you would be fine as long as the numbers come out correctly and then of course if you did put an opening balance you would put in the date that that would be as of which would really be the start date of your company file the next tab over says language this will default to English but if you’d like to sing your invoices to the customer and French Spanish Italian you can see the list there you can also have attachments for this customer what this would be is let’s say that you had some sort of file that you actually created or it could be a bill that you received something related to this customer instead of having to get out of QuickBooks and search your computer for that file you’ll be able to open it right here from QuickBooks because it will be attached if I click on attachments here it will allow me to search my computer and find that file and attach it here the last tab says additional info you might have different ways you like to categorize your customers you’ll notice they have commercial customers and residential customers but you can set up this list any way you like it and that’s going to be how those tabs work right there all you have to do when you’ve changed all the information is hit save and that information is now saved in QuickBooks now one quick thing I want to mention to you especially about sales tax if you have a customer you have set up where you charge a certain tax and later you go back and edit the information and change it it’s not going to go back to any prior invoices and change that sales tax it’s only for any new ones you create from this point forward well that’s how you’re going to edit your customers let’s go ahead now and move over into section five and I’ll talk to you a little bit about making customers inactive one of the things you can do in QuickBooks is with any list you’re working in whether it be customers chart of accounts vendors it doesn’t matter if you have an item on that list that you’d like to temporarily hide from the list you can make it inactive inactive customers actually will not show up when you’re working in other areas of QuickBooks but if you wanted to actually turn them back on you could go and activate them again let me go ahead and show you how to make a customer inactive and then you’ll know how to do it when you’re working in other lists in QuickBooks as well let’s say that I want to make Edward Blackwell inactive notice that Edward still owes me one thousand one hundred and twenty five dollars I wouldn’t want to make him inactive because I’m going to be using this customer he’s going to make a payment and I’ll need to be able to apply money typically you make it customer inactive if you haven’t seen them for a while or maybe it was someone you set up and you never used those would be reasons to make a customer inactive let me show you what happens if you try to make mr. Blackwell inactive and he still owes you money I’m gonna go ahead and click on edit and here’s where you go to make a customer inactive now this message is telling me that Edward still owes me money he has a non-zero balance if I say yes and make him inactive then QuickBooks will create an adjusting entry so that he doesn’t owe me money anymore I’m gonna click yes and notice there’s a little error message and that’s because this customer has what’s called a recurring template that’s being used anytime you have something recurring you have to actually delete the recurrence of that whatever it is before you can go in and delete the customer in this case I’m going to go ahead and hit cancel at the bottom and let’s use a different customer Tom Allen because he doesn’t owe us any money we just sent him up I’m gonna go ahead and click on Tom Allen and then click Edit on the right make inactive and now it tells me that tom has a sub customers or projects making him inactive will also make all his sub cover and projects inactive and that’s what you want I’m gonna click yes and now you’ll notice it says Tom Allen is deleted just a little fYI QuickBooks does not have a feature to delete anything from a list in this case a customer if you wanted to quote delete them you’d have to make them inactive and they’re still not really deleted because they show up in the list they’re just hidden so you can always activate them again now if you notice over here it says make active that’s how I go back and activate my customer again I’m gonna click make active and now you’ll see over here it does not say deleted but notice the sub customer does you’ll want to repeat that process with your sub customer select them from the left and make them active and that’s a quick overview of how to make your customers inactive well let’s move on we’ve got one more thing to cover in this particular module I want to talk to you in section 6 about importing an existing list of customers that you might already have into QuickBooks the last thing I want to talk to you about in module 4 is how to import your customers into QuickBooks you might already have a list of your customers in Excel for example or in a CSV file and it’d be really nice to be able just to import them into QuickBooks instead of having to enter them one at a time you will need to set them up a certain way I want to go ahead and pull up the excel file that I have so you can see how it’s set up and even if you don’t have the fields the exact same you can map them once you go through this import process but let me go ahead and pull up the excel file and show it to you and then pull up QuickBooks and we’ll go through and import those customers here I have a list of three customers I’d like to pull in from this excel spreadsheet into QuickBooks and you’ll notice that I’ve got them set up by name company name email phone you can see the list here those are the names of the fields that are in QuickBooks that you want to pull the information into if you can set it up this way that’s the best way to do it but you can also map the fields if you want once you get inside QuickBooks but I wanted you to see this so that you would know exactly how to set it up and make sure you save it somewhere that you can pull it in pretty easily when you go to look for it let me go ahead and flip over to QuickBooks and we’ll pull in John Ellen and Doris all you need to do is make sure you’re in your customer list and go up to the down arrow next to new customer and choose import customers here’s where you’re going to select your Excel or your CSV file that you currently have your customers in minds call customer list and I’ll just choose that and you can see it brought that file in now all I have to do is click Next at the bottom and here I can map my fields to the fields that are in QuickBooks you’ll notice the first column are the names of the QuickBooks fields and over here will be the names of the fields you had in your file if the names don’t match exactly like this one says name but maybe in your Excel spreadsheet this one said first name for example then you would choose it from the down arrow if there’s not a match like company for example when I look in my excel sheet I did not have one company then I’ll just say no match and it won’t be able to pull anything in the ones with the checkmark that you see are the ones that actually have a match to the QuickBooks fields that sees the exact same name that it sees over in your Excel spreadsheet in this case once you’re finished going through that list you want to go ahead and click Next at the bottom and you’ll see that there are three customers now that are ready to be imported if I had a lot of these I could go in and search for these by filtering and typing in the name of that customer it’s going to be pulling in the ones that have the check mark next to them I’m go ahead and import all three of those I’ll just choose import at the bottom and now you’ll see that it’s brought in those three customers let’s look first of all for mr. Stewart we’re gonna go down the list here and you’ll notice that here is John Stewart he was the first one on our list it has now imported all the information was in that excel spreadsheet well that’s going to wrap up module four where we’ve talked a lot about customers now that we have our customers in we can move over to module five and talk about sales transactions using these customers hey there we’re working now in module five and in this module we’re looking at all the different types of sales transactions that can occur when working with customers these are going to be things like are you invoicing customers are you receiving payments from those customers maybe making deposits credit memos things like that before we get started over in section one I want to go through very quickly with you the sales tab that’s in QuickBooks and show you an overview of how it works and what type of information you can get out of it let’s go ahead and flip over to QuickBooks and we’ll look at the sales let’s give her to our navigation bar and point to sales and then I’m going to click on overview this is just a quick overview of your income over time you can see that I’ve got two hundred and twenty dollars that it looks like I made this month and I made that the week of February 16th through 22nd notice I can actually point right up here as well and see that information if I wanted to change this and see how much I’ve made this month this quarter for example you can see last year this year you’ve got different choices here I’m going to go ahead and choose last month and it looks like last month we brought in over $7,000 and you can see the high points of when you brought in the most money in this case January 19 through 25 down here I can see how many invoices are overdue and also the ones that I’ve already sent out that are not due yet and that’s three thousand nine hundred and seventy-six dollars I might also have some money I’ve received that’s not deposited yet and you can see that here and also I can see the amount that I actually did deposit over on the right here these are some things that you can opt to set up with QuickBooks and some of these are paid subscriptions but if you want to set these up you’ve got different ways customers can pay you that would be Apple pay if you want them to be able to pay you direct deposit things like that you can set those up with Intuit you can also set up to get paid anywhere so if you have an app you’ve downloaded to your phone you can accept payment right there or you can send out an invoice to your customer that they can pay online they can actually click that invoice and then pay you right then and there like I said some of these are paid you will want to look into those before you sign up with one of those subscriptions if you’re interested in learning how the QuickBooks payments allow you to get paid online or in person you can watch this video here and then they have some shortcuts to some of the things we’re going to be talking about as we go along right down here but this is a quick overview of your accounts receivable now notice the next tab over will show all of your sales here you’ll see all the information on any sales transactions you can see all the transactions listed at the bottom so you’re going to see invoices payments credit memos if you look down the list here’s a time charge there’s a sales receipt or refund any transaction that happened with your customer is going to be on this list you’re going to see all the information about the transaction the balance the total and all the way over on the right you can take an action related to that particular transaction if you click the down arrow notice that you can either copy this you might want to delete it you might want to send a reminder you kind of see your choices there the next tab at the top that you’re going to see are your invoices these are just invoices that are not yet paid you’ll notice it shows you all the information about each of the invoices the balance the total if it’s overdue maybe not sent or if it’s partially paid you can see some of these and then of course here’s your actions again if want to take one of these actions related to one of these invoices the tab that’s next is your customer tab and we’ve spent a lot of time on that and the last tab says products and services products and services are things that you either buy or sell to your customer they can be a physical item it could even be inventory or just a service you provide and you can see for all of these that you can look at all kinds of options related to whatever is underneath that particular tab that gives you a quick overview of how to use the sales option what I want to do now is take you back and let’s go ahead and get started looking at how to actually create sales receipts for those customers that want to go ahead and buy something and pay you at the same time when you make a sale to a customer there are a couple different ways to record that sale one way is to create what’s called a sales receipt this is almost like point-of-sale if a customer comes in makes a purchase and gives you the money right then you can put all of that on one transaction and send them on their way with a receipt the other way that we’re going to talk about in section 3 is actually invoicing customers and that’s where you send out an employees and the customer pays you after the fact but right now let’s focus on sales receipts let’s flip over to QuickBooks and I’ll show you how to enter sales receipt you want to start by going to your customer list look down the list and find your customer and the sub customer that you’d like to send a sales receipt to if you’re using sub customers always pick the sub customer if you just pick the main customer what will happen is you’ll look at reports and you’ll see other and you won’t know what that refers to so just make sure you always choose the sub customer notice when I go all the way to the right here and click the down arrow I have an option to create a sales receipt the first thing you’ll notice is that it brought in the customer and the sub customer you chose if you want to change those you can actually pick those from the drop-down list the next thing you’ll see is a place to put in the email if you want to email this to more than one email address notice that you can type them both in here but just separate them with a comma and if you need to cc or BCC some additional email addresses you’ll see those here there’s also our check box that says send later that’s because you have the ability to set up the sales receipt and not actually send it right now it could be that you’re not really sure of the quantity but you want to go ahead and get this set up and saved you could do that you’ll see abroad in the billing address and it also has the sales receipt date which would be the current to date if you want to change this date you can just click the little calendar like I did and change the date now in this case they’ve customized this sales receipt to have an additional field that says crew number if you wanted to plug something in there you would just type in the number for that crew or not use it at all and we’re going to come back to the payment method in a moment let’s go down to product slash service if you click your mouse in the first area there you’ll see that there’s a drop-down list of all the products and services that you sell your customer if I go down this list you’ll see there are rocks these are garden rocks and if I choose that it will bring in a description and I can edit the description or add to this as much as I like I can cover to the quantity and put in how many of these the customers purchasing and the rate will say we sell these for $25 notice when I tab through it it’ll do the calculation three of these at 25 cost $75 and this is subject to sales tax typically physical items are but services you provide are not the little trashcan that you see at the end would allow you to delete this line now let’s say I’m going to add one more to this I’m going to go down and pick a service let’s say that we have design services and I’ll just put this over in the description and then I’ll say the quantity is 1 and we’re going to charge $100 this and notice this one is not automatically subject to sales tax I do have a third line available if I want to put something else in here if you don’t see an available line click where it says add lines and that will give you a line to type in notice you can also clear out all the lines if you wanted to do that right underneath it you have a message that will be displayed on the sales receipt it currently says thank you for your business and have a great day but you can put anything you like in there and also if you wanted to put a message and have to display those statements you could put that in here and just type it in over the right you’ll see it shows us our subtotal you can see that $75 of it is subject to sales tax and in this case they’re using a sales tax called California and it’s 8% six dollars in this case if you want to give your customer a discount you can get them a percentage discount or a value meaning a dollar amount let’s say I want to give them 10% I’ll just type in 10 with a % and notice it deducts 18 cents and if I scroll down it’ll show me the amount received and the balance due now remember because this is a sales receipt we’re going to put on this the payment amount they’re assuming we’ve received all of the payment back up here’s where I can choose the payment method if they paid me with Visa or if they pay me with a check I can pick any option I like and there’s a little place for a reference number now if you had a Visa card you wouldn’t have a reference number with a check that would be a check number the next thing you’ll see is deposit – and it says undeposited funds your other choices would be to go ahead and deposit this – maybe a checking account for example you can see the list let me explain undeposited funds for just a moment in your chart of accounts you will have an account called undeposited funds this is a place where money sits that you’ve collected but you have not yet taken to the bank a customer came in paid you with a check you want to show QuickBooks the sales is paid so you’ll choose deposit to undeposited funds but it might be that you’re gonna collect all the monies you receive today and make them all one big deposit that’s when you choose undeposited funds if you knew this was the only thing that was going to be in this deposit you could choose checking and skip the next step of making a deposit I’m gonna go ahead and leave it in undeposited funds and when you’re finished down at the bottom you’ll want to either just save this or you can choose save and send which will email it or from the down-arrow you can say save and close we’re going to close this and now that transaction has been completed you’re going to notice when we look at this that Tom Allen 124 Scottsdale does not owe us any money however if we go over to the all sales and look here we should see Tom Allen’s sales receipt right here for a hundred and eighty dollars and 82 cents and it says it’s paid here’s where we could go and actually print this I want to view or edit this you’ll see here that this is your sales receipt where you can make that change if you need to I’m gonna go ahead and get out of this I’m gonna hit the X and cancel it and that’s how you would go in and actually create a sales receipt that money is now sitting in undeposited funds I want to take you over to your chart of accounts which happens to be over here under accounting and show you that account so that you can see the money there let’s see our chart of accounts and here’s undeposited funds now you can see it has two thousand two hundred and forty-three dollars in there but if I view the register over here you’ll see the transaction that we did and also which is right here any others that were already sitting in undeposited funds so hold that and when we talk about making deposits in section five you’ll see how this all comes into play but one way to keep a check on yourself is if you know everything’s been deposited then there shouldn’t be any money in undeposited funds okay let’s go ahead now and go over into section three and talk about invoicing customers we’ve talked a little bit about sales receipts and now let’s talk a little bit about sending out invoices to your customers remember the difference in a sales receipt and an invoice is that on a sales receipt the customer is standing right there you’re going to put in the line item they purchased you’re going to put in they made a payment the invoice is where you’re going to send an invoice to your customer and wait for payment at a later date sometimes you email these sometimes you mail them it really doesn’t matter you’re going to receive the payment at a later date let me show you how to create invoices for your customers it’s very similar to the sales receipts but I want to show you where to go to get started creating invoices there are a couple of different ways to get started creating an invoice you’re going to head over to the navigation pane and point to sales you can either use the invoice option here or the customers if you choose the invoices option here you’re going to see a list of all of your invoices that you currently have and if you want to create a new one you can choose new invoice from right here if you started with the customers you would just come back to sales and go to customers this way then what would happen is if you had a customer you want to create an invoice for you could check them off head all the way to the right under the action column and then you can create an invoice this way either way would work whatever works for you you’ll notice this way because I had a customer selected it pulled in all that customers information now if I want to change that I just click the down arrow and choose the new customer from the list remember I told you that if you’re using sub customers always always always pick the sub customer you want to go with the lowest level so that when you look at reports you don’t see other on your reports I’m going to start with Freeman Sporting Goods I’ll choose 55 twin lane and now you’ll see it’s changed the customer email and the billing address if you didn’t have an email setup in your customer setup then you could physically type an email here you can also choose to be cc or CC someone just by choosing this option and putting their email addresses in here I’m going to hit cancel you can also send this later if you have this checked that means that you can create this invoice and then save it and then create another one and check the same box if you’ve done that you can email both of them at the same time that’s called sending a batch or emailing a batch if you happen to see that something’s changed at the billing address go ahead and change it here it’ll prompt you when you go to save it and ask you if you want to save this permanently in their record because we had terms of net 30 setup in the customer setup you’ll notice the invoice date is 212 but the due date is 313 which is 30 days from the invoice date if I change this to net 10 you’ll see the due date is 10 days just make sure the due date is the date that you want the invoice to actually be due to you the crew number is a field they custom setup for this particular exercise you can go ahead and plug in some numbers just to keep it consistent there and then you can pick a product or service from the list to invoice your customer I’m going to choose installation and let’s say that I’m going to charge them a quantity of one at $200 remember a service is non-taxable so you will not see a green checkmark there if you happen to see one just uncheck it and if you have a second line you’re just going to type on the second line whatever information you want to invoice the customer for here’s where you have your message that will appear in your invoice automatically you can type in there and change that to anything you like also when you’re sending out a statement to your customer then you can have a message on that statement appear as well whatever you typed in here you’ll notice that you can also put in an attachment let me scroll down just a little bit so you can see that if you happen to have some sort of file that was already saved in your computer you could attach it here an example might be if I’m installing landscape design I might have hired a subcontractor to do that and maybe the subcontractor has already sent me a bill and I want to attach that to this invoice over on the right if you’re going to give your customer a discount you can give them a percentage discount or a value discount I’ll choose value and give them $25 and you’ll see it will deduct it from my 200 so now that the balance due is 175 couple of things at the bottom you’re going to be able to do you can print or preview this right here you can also make it recurring and what recurring means is if this is something that happens on a regular basis then you can set QuickBooks up to automatically just put this in whenever you’ve told it to let’s say once a month it inserts this invoice automatically and then you can customize this a little bit if you want to do things like they added the crew number you’d be able to add fields like that at the bottom you have an option that says save you have your save and close’ and if you wanted to create a new one you could click the arrow and choose save and new I’m going to choose a save and close though and you’ll see now that our invoice has been completed if I wanted to go back and look at this I can actually come up here to invoices and then I can look down this list and find the one I’m looking for and that’s how you’re going to create an invoice for a customer let’s go ahead and move on into section 4 and I’ll show you how to record the payment once a customer actually pays you now that you’ve created your first invoice the customer is going to mail you a payment at some point now it doesn’t matter how the customer paid you you’re going to record their payment the same exact way we’re going to go in and tell QuickBooks how much the customer paid the date they paid all the pertinent information and when we’re done we’ll see that the invoice will show as being paid if they’ve paid the full amount if they haven’t it’ll show the balance or if it’s an overpayment it will show that as well let me show you how to record a customer payment before we receive our first payment I’d like to take you over to the report section QuickBooks just head over to your navigation bar click on reports and the reports from the menu and this is all the reports that are in QuickBooks we are going to take some time in a later module and look through the different reports but right now I’d like you to head down to a section that says who owes you these are your accounts receivable reports if you head over to the second column you’ll see the second one is called the open invoices report and you can just click to run that one now these are all of the invoices that you’ve sent out that have not yet been paid even if the customer owes you a penny if you remember in the previous section we actually created an invoice for Freeman Sporting Goods and we did one for 25 Twin Lake and here it is right here 175 dollars I want you to notice that in any report if you want to go to that particular transaction you can see this is a link and you can just click anywhere and actually open up that invoice I wanted to show you this first because once we receive our payment this invoice will actually disappear if it’s paid in full or you will see this invoice and the balance is owed right over here not the hundred and seventy five dollars that it originally was invoice for now that you see that let’s head back over to our customers we’ll go to sales and we’ll go down to customers now let’s go down and find our customer we’re going to receive the payment for and this is going to be Freeman Sporting Goods 55 twin Lake you’ll notice over in the action column that you can receive a payment this is the received payment window and the first thing you’ll notice is it pulled in my customer in my job I don’t need to change that unless I happen to want to pick a different customer and job I can look for an invoice by invoice number if I want to I can click there just type in the invoice number and hit find and it will search for it for me the next thing is the payment date I’m going to say this was received on February the 28th and here’s the payment method now here’s where you can pick the way that the customer actually paid you did they pay you with cash did they pay you with MasterCard Visa PayPal if you happen to take other payment methods you’d like to add like venmo or square or even Bitcoin just come up here to add new and all you have to do is type in that new payment and then just hit save and from now on that payment method will actually be on the list there now I’m just going to say in this case it was a check though and I’ll put it in the reference number that would be the check number and then just notice the money is going to go to an account called undeposited funds now hold that for a moment we’ll come back I want to finish the rest of this and explain this part to you now over here it assumed that my customer paid me the entire balance they owe for all of their invoices and we know that’s not always the case here I’m gonna put in the amount that the customer did pay me let’s say the customer paid me a hundred and seventy nine dollars now if you notice down at the bottom these are all of the invoices that are still open even if the customer owes me a penny you’ll notice what QuickBooks does is assumes the customer is paying all of the first one the rest of the money goes to the next one and then the balance of the money goes down to the next one all the way down now that’s not always how the customer has asked you to apply their payments let’s say in this case they’re not paying the first one they’re paying one hundred and seventy five dollars on this last one and they’re gonna pay the four dollars on this one and that’s why it was a hundred and seventy nine dollars always make sure that you have the correct invoices checked off and their correct amount over here that the customer is paying towards each of the invoices a couple of other things to notice when you look down at the bottom there’s going to be a hundred and seventy nine dollars worth of money that’s applied and there’s no credit memos right now but if you had one you had issued for this customer then you can apply that credit memo to one of these employees that would be open here if you want to clear the payment you could that would let you start all over filling this form out and the notice at the bottom there’s a place for a memo over on the left and there’s also a place where any attachments if you wanted to add something here and that’s all you need to do to receive payments it’s pretty easy process but I do want to go back up to this right here with sister – and talk to you about what your options are currently if you receive payments the money’s going into this account called undeposited funds I’m going to go ahead and save this real quick and then I want to show you where undeposited funds is and then we’re going to come back in a second so I can show you where your other options are now if I close the receive payment window and head back to the chart of accounts I’m gonna go down here to accounting chart of accounts you’ll notice that if I go down the list there’s this account called undeposited funds currently there’s two thousand two hundred forty one dollars and fifty two cents in that account this is where money sits that you’ve received but have not yet deposited into the bank a good way to keep a check on yourself if you know that everything’s been deposited this should be zero let’s look at this for a second and see if we can figure out what money happens to be sitting in here notice you can click to view the register over on the right and what you’re going to notice is that right now it looks like there are three payments sitting and undeposited funds one of them is being the one that we just received none of these three are in the checkbook yet because they have not yet been deposited okay so let’s head back over to our payment that we just looked at I’m going to go to sales and go back to customers and let’s go down and find our customer Freeman Sporting Goods 55 Twin Lake and I’m just going to click on that for a moment and here you will see the payment that we just received I’m gonna go ahead and click on that just to open it back up here were your other choices I could go ahead and put the money right in the checking account and this will skip the next step that we’re going to do but let me tell you why you may or may not want to do this if the hundred and seventy nine dollars is the only thing that’s going to be in that deposit then you can click checking hits save and close at the bottom and you are done with the whole process but if you think you might receive another payment possibly from another customer and this one and the new payment are going to be together in the same deposit that’s when you want to pick undeposited funds and this will make more sense once we go through and make the deposit over in the next section but I’m going to go ahead and click Save and close at the bottom here and let’s see if that invoice shows that it’s been paid when I go down the list and look at the invoice for 175 dollars it does show that it’s been paid in full if there was one penny left it would not say paid right here that’s how you receive a payment for a customer when you’ve sent out an invoice the next step in the process would be to actually take that money and make a deposit why don’t we head over into section 5 and I’ll show you how to make deposits now that we’ve made a sale for our business we’ve actually invoiced a customer in this case we got paid and now we want to take that money and put it in the bank and that’s where the make deposits option comes in it’s always going to be the last step in this process no matter how you receive the payment whether it is a Visa card cash a cheque you’re going to have to make deposits and you want to make sure that your deposits and quickbooks match what actually happened at the bank let’s go ahead and flip over to QuickBooks and talk about the make deposits option the easiest way to record that deposit is to click the new button right here and over on the right here under other you’ll see bank deposit this window here is going to be your actual deposit slip a couple things you’ll want to double check on is make sure you have the correct bank account chosen here it’s very easy to have the bank account that you last use show up in that field and then you can’t find your deposit notice that the balance in the checking account is one thousand two hundred and one dollars and this is the date of the deposit let’s say I’m going to make this deposit on March the second now down at the bottom these are the three sets of monies that we saw they were sitting in undeposited funds what you’re going to do is check off all of the ones that are going in this deposit if all three are going to be in this deposit you check them all off if maybe the first two we’re gonna be in that deposit and then maybe this last one was in a separate deposit do them separately because you want these to match what actually happened at the bank let’s say in this case though all three are going to be deposited a couple of things when you’re looking at this list here you can go and change the payment type if you didn’t do it when you were actually receiving the payment you’ve also got a place for a memo if you’d like to fill that in and then you can see there’s the reference number column and then the amount column over on the right my deposit will be two thousand two hundred forty one dollars and fifty two cents now right down here it says cashback goes to if you happen to have a business bank account you’re not going to be able to get cash back but as a sole proprietor you could if you’re going to keep some cash then you would say cashback goes to this account and you would pick whichever account this went to you would also be able to have a memo and if you were going to keep 20 bucks you could type that in and it would deduct it from this total right up here there’s also a place to add funds to this deposit if I click this little arrow it’s gonna open up this part here and I can add some additional monies now this could be something like maybe you got a rebate from Staples you could type that in if that was the situation it would say received from Staples the account would be office expenses or office supplies pick whichever account you actually use when you purchased the items for that rebate and put it back to the same account you’ve got a place for a description the method and the amount of money it could be you’re also going to put some personal money into the business if that’s the case then the account you want to choose is that owner equity if your members talking about that in an earlier module but remember that everything that goes into a deposit is not always income to the business so make sure that this goes back to the correct account if you’re adding additional funds notice if you need more than the two lines you could add additional lines and have as many lines as you’d like here you can also add a memo to this deposit if you’d like or add an attachment down at the bottom and that’s all you need to do as far as making a deposit now couples just other options you could print this deposit out down at the bottom or make it recurring it could be that you have a customer set up on automatic draft where they actually pay you $1,000 a month let’s say and this would be that deposit lots of different scenarios there I’m going to go ahead and hit save and close down at the bottom and at this point the money is actually going to be in my checking account remember it’s two thousand to forty one fifty two now that whole process of invoicing a customer receiving a payment and making that deposit has been taken care of now let’s go look in the checking account and see if we can find it it just so happens that on the overview right over here where we are the checking account is here that is one way to link to it to look at the balance another way would be going down to accounting to our chart of accounts and just opening it that way any of this would work I’m going to go ahead and view the register when I look in the register you’ll notice that there’s my deposit right there notice it says split because it split amongst multiple line items in this case we had three different transactions that went on the deposit itself I’m gonna go ahead and cancel that and that’s the process of actually making a deposit the next thing I want to do is take you over into section six and show you how to set up credit memos for customers there are times when you will want to issue a credit memo to an invoice let’s say you have a customer that just isn’t happy with your services and they refuse to pay one of your invoices you can actually leave it on the books for awhile if you’d like but eventually you might want to credit that off let me go ahead and show you how to create a credit memo the first thing that you want to do is look up the original invoice and see what it is that you charge them for to begin with I’m going to look at Red Rock diner and you’ll see there’s an invoice for $70 here I’ll just go ahead and open it up and you’re going to notice that we charged them for pest control it looks like probably two hours at $35 an hour for total of $70 now let’s say the customer just wasn’t happy with us and we’re going to just credit that invoice when we create the credit memo we need to use the exact same product or service that we charge for to begin with the way you’re going to create the credit memo is come up here and click on new underneath customers you’re going to see credit memo plug in the customers name in this case it is Red Rock diner you’ll see it populates their email their billing address and it’s going to have the current date for the credit memo date just make sure you put the date that you would like we’re going to be looking at tags over in section nine let’s just hold that for a moment and let’s go down to product or service here’s where we’re going to put in pest control remember you want to credit the same product or service that you invoice for to begin with we’re going to choose the quantity of two at 35 and that’s going to give us a total of 70 all we have to do now is go ahead and go down to save and close now that the credit memo has been created I want to show you two things that happen on your customers account notice here’s the credit memo and it says it’s closed and then there’s a payment that wasn’t there before now this payment is where you’re going to go to actually apply the 70 dollars to the correct invoice because see how the invoice is still open over here I’m going to click on the payment now if it sees an exact to match it we’ll go ahead and check it often but if it doesn’t come down and choose the correct invoice and then notice the credit memos at the bottom so you want to make sure those two are checked so they apply to each other so you’ll notice down here the amount to apply is $70 and that’s all we have to do we’re going to save and close at the bottom and because this transaction is linked to others it will ask us if we’re sure we want to modify this and the answer is yes and now when we go back and look we’ll see that the credit memo is closed the payment is closed and if the invoice is actually paid so remember this is a two-step process you have to create the credit memo they go back to the payment and actually apply that credit memo to the correct invoice now that you know how to create credit memos I want to show you over in section seven how to actually give your customers a refund there are times when you want to issue a refund to a customer and that would be if a customer has purchased something and paid in full and you want to actually give them their money back that’s the difference in a refund and a credit a credit usually sits in their account until you just credit the money off of your books whereas refunds you actually give customers than running back let me go ahead and show you how to create a refund we’re going to create a refund receipt but before we can do that we need to go ahead and look up our customer and see what it is that we’re actually going to refund them for this is Duke’s basketball camp if you notice they have an invoice here for four hundred and sixty dollars and forty cents that is paid in full I’m going to click on invoice to actually open this up and you’ll see that the second line are some garden rocks that they purchase from us they purchased six of them at twelve dollars and let’s say that they’re going to return three of them at twelve dollars because they didn’t need all six of these we’re going to go ahead and close this now and now we’re going to create our refund receipt we’re going to go over to the new option on the navigation pane we’re going to come down to refund receipt here we’re going to pick our customers name in this case it’s going to be Duke’s basketball camp you can see it pulls in their email and their billing address and we just need to make sure we have the correct refund receipt date down here which says payment method this is how the customer actually paid you they wrote us a check let’s say and we’re going to refund them from our checking account if you’re going to actually print them a check then it’s going to let you print this later or if you want to go ahead and print it from here you could leave that check number now let’s go ahead and put in the correct product or service and we decided that this was garden rocks and so we’re going to go ahead and choose that and remember they’re returning three at twelve dollars and that makes thirty six dollars if the item was subject to sales tax when the purchase was originally made then QuickBooks will automatically choose the tax option to give them their tax back as well you’ll notice this equates to thirty six dollars the total amount refunded will be thirty eight dollars and eighty-eight cents I’m going to go ahead and hit save and new at the bottom and now that refund receipt is done I’m going to click OK here what it says it was successful and now let’s go back and look at their account if I’m looking at Duke’s basketball camp you’ll see here’s the refund right here and you’ll notice that it says it is paid now if you want to actually go ahead and print a check then all you have to do is over here it says print check and you’ll notice that it automatically has Dukes basketball camp and a checked awaiting to be printed for thirty eight dollars and eighty-eight cents just double check that you have the correct checking account at the top and make sure you have the correct check number that your check is going to be now if you were giving them cash you would have chosen cash from the option back over in the refund receipt and then that would have just been done that’s really all you have to do at this point you can actually go down and you can preview and print this and then that will be the end of it there’s the preview you would hit print and it would print out and that’s how you create a refund for a customer it’s called a refund receipt let’s go ahead and take a peek now at creating statements for your customers one of the things you have the ability to do in QuickBooks is send statements to your customers a statement is basically a gentle reminder to your customers that they owe you some money typically statements are sent at the end of each month and they show the activity that happened during that month you don’t have to send out statements but it’s a nice little feature to keep your customers abreast of what’s going on with their account let’s go ahead and flip over to QuickBooks and we’ll see how statements are created when you’re ready to create statements for your customers just go to your navigation pane and choose the new option over here where you see other if you look down you’ll see statement the first thing you have to do is pick a statement type you can choose a balance for word any open items for the last gear basically and then you can also choose a transaction statement I’ll choose balance for word for the statement date you generally want to pick the end of the month that means that in this case the start date would be January 1 and the end date would be January 31 for the customer balance status you can choose all open or overdue I’m going to choose all and then apply and these are all of my customers who met the criteria they call this the recipients list if you’re looking down this list and you see one that you don’t want to send a statement to just come over here and uncheck the box now when you’re ready you can print or preview these down here in the middle I’m going to click on print or preview so that we can see what a statement looks like now I’m going to have one here for each customer you’ll see as I go down the list there you go and for each one you’re gonna be able to see all of the activity for January 1 through January 31 the first thing you’ll always see is the balance forward from the previous month notice up here tells you the total due and there’s a place where the customer can actually send you a check and if they want to type in the amount closed or write it in right there they can do that and then down at the bottom of the statement it shows you how much of this is in the currently due category how much is in each of these categories and then again the total over on the right and that’s what a statement looks like you can pick any date range you like when you’re creating statements if you just want to send one to one customer you can do that but that’s an overview of what statements look like and how they work I’m going to go ahead and close this and you really don’t need to save or save send us once you’ve printed these out you can go ahead and just X out at the top and then it’s ready and you can print them the next time well let’s go ahead now and look over in section 9 and talk a little bit about how a new feature of QuickBooks called tags is going to work there is a brand new feature in QuickBooks Online that they’re rolling out right now called tags and what tags will allow you to do is create certain words that will appear on a drop-down when you’re in different transactions in QuickBooks and you can choose those and later you can use those to search for things or to run reports based on those tags if you’re familiar with Gmail we’ve got something similar in there where we can create a list and tag different emails and then search for anything that would have that particular tag we’re looking for this is still in beta right now if you happen to not see it when you open up your QuickBooks Online and just know it’s coming they’re just rolling out in stages right now and you may not have all the options related to tags yet but just know it will be coming somewhere down the line let me give you an example of how you might use this feature currently we have a feature in QuickBooks called classes and we’ve kind of been using that in the way that tags will work but let’s say that you have an attorney’s office and you have four different attorneys in that office you might want to run reports on the company as a whole but you might also want to run reports on each attorney if you had this list of classes set up you could just pick from the drop-down list in each transaction you’re in which attorney that this should be tagged to and we’re going to use tags in the exact same way I don’t know if they’re going to get rid of classes down the road somewhere but tags are going to be a really nice feature so let me flip over and show you what’s in there now and like I said if you don’t see these options or you see something new down the road it’s because they’re rolling it out it’s still in beta the way you’re going to access your tags option is through the gear icon on the top right hand side of your Green and underneath the list right here you’ll see tags now currently we don’t have any tags set up but once we do set up our first tag you’re going to see the top of the screen change and you’ll see a section that says money in and money out let me give you an example of what we’re going to do with our tags this is a company called Craig’s design and landscape services they actually do two different things they do design work and they do pest control and as part of their design work they have three different areas they focus on they focus on fountains landscaping and sprinklers if I wanted to put my tags in a group then I can do that as well and you will see the group’s listed right here along with the tags but let’s start with just a tag I’m going to come over here and under new I’m going to choose tag and let’s say that I use fountains as my first tag if I wanted to put it in a group I could but I don’t have any groups set up yet so right now I’m just gonna hit safe at the bottom and now you’ll see my first tag called fountains and notice it’s ungrouped it’s not part of a group now here’s what I was saying a second ago about the money in and money out once I start applying these tags to different transactions I can come here and see the money in or out based on those tags I have now let me go ahead and create a group to show you how this works I’m going to create a tag group and I want to create a group called design and I’m going to create another one in a minute called pest control now you’ll notice that from this screen here if I wanted to add a tag I can do it right from here without having to go back out and hit new tag I’m gonna add two more because I have fans and I want to add landscaping and we’re also going to add sprinklers and I’ll just hit add tag there now let me go ahead and click done at the bottom and now what you’re going to see is design is a group and notice the down arrow in order to see the two tags in there I click the arrow and then I see those two now famines are still ungrouped if I wanted to add it to this design group I can come over here what says edit tag and then I can select the group I’d like it to belong to in this case design and when I save it now you’ll see design has three tags underneath now let me create one more tag group I’m going to create one called pest control and let’s say under pest control that I’m going to create two tags I’m going to create one for residential and one for commercial customers I’ll add that one then come back and add commercial and then add that and now I’m going to say done at the bottom and now you can see at the bottom I’ve got two different tags I’ve got one that’s pest control and one that’s design now the other thing is notice the color blue I can leave it like this but if you want each tag group can have a different color scheme going on if I come over here to edit the group you’ll notice that here I can change the color maybe this one can be this yellow color and I can save that and notice it also made all the tags below it that same color and that way they just stand out a little bit when I’m looking at different reports or things now let me show you where you’re going to use these tags or tag groups this will be in any transaction let’s say that I go over and I create a new invoice you’ll notice that in here you have an option that says tags you can choose from the drop-down list and you can choose more than one if you need to this might have fountains and it might also have some pest control and there’s your two tags that we’re going to be using now I will be able to look up reports based on the product or service but I can also look at the reports based on fountains or commercial now let me just go ahead and set something up here so you can see how this works I’ll pick Tom Allen we’re going to go down and pick for a product or service we’re going to go ahead and say this is and we’re gonna say one at $50 and then let’s see for the next one here we pick fountains we’ll do a rock fountain and that one was 275 now let’s say also we’re gonna do some pest control around this rock fountain so that we don’t have bugs in there and now we’ve got a couple of different products and services here now when I go ahead and click Save and close here we’re gonna go back to our tags and see if we have any money that’s in or out of these and now you’ll see that there’s three hundred and eighty two dollars money in because remember QuickBooks considers at the time you create the invoice it to be part of your income when you actually write a check use your credit card that sort of thing that will be on the money outside so if you had to actually buy some materials related to one of these and you tagged those transactions you would see the money out show up over here and that’s basically how tags are going to work it’s going to be a great new feature that’s really going to help you drill down a little bit deeper than you can now to see where your money is coming in or money is going out let’s go ahead and do one more thing in this module we’re going to look at some of the reports that have to do with your customers and sales QuickBooks has a ton of different reports related to your customers and your sales and I want to take you through and show you some of these different ones that you will want to run on a regular basis to see how your company is doing in these different areas let me go ahead and flip over to QuickBooks and I will show you a couple of these different reports I’m going to head over to the navigation pane and I’m going to click on reports there are several different categories of reports here but I want to focus right now on the one that says who owes you and then below it are your sales and customers underneath who owes you probably one of the most common reports is the open invoices right here which you’ve seen before and this is just a list of all of your customers who still owe you money even if they owe you a penny you’ll notice that it shows you all the information you need about the transaction like the date you can see the amount and if you’re on that line and you just point to any of these pieces of information you’ll see that you can click and actually go to that transaction if you actually change that transaction and then get out of it when you come back here as long as you’re safe the transaction the report will be updated another one I’m going to go back to reports that you’ll want to look at is going to be under who owes you customer balance detail this report will show you all the transactions that occurred for each customer and each job or sub customer when you first come in it might look like you’re just looking at the invoices anything open what you need to do is go up to the top right and choose customize come down to where you see filter and you’ll notice that where it says AR paid it says unpaid right now go ahead and choose all from the list and then run the report at the bottom and now you’ll see each transaction that happened for each customer sub customer end or job here I’m going to go ahead and go back to reports we’ll look at a few more here back down to who owes you there are some other ones that you might want to look at for example you might want to run a collections report this one is going to show you all of the information about the customer this time you’ll notice there’s a phone number here as well so if you needed to make some phone calls and call some of these people you’ve got that information right here on this report I’m going back to reports some other ones just to notice you do have the ability to run an accounts receivable aging detail and an aging summary anytime you see a summary and a detail the summary will show you the line item at one total whereas the aging detail will show every single option that made up that category or that line item that you would normally see you can see an invoice list here if you like you can see a terms list there’s a statement list just all kinds of things you can look at underneath who owes you now down under sales and customer here’s where you can run things like a customer contact list this is just going to give you each customer their phone number their email that sort of thing you can also go in and look at estimates by customer you might want to see if you have any income by customer you might want to see all your payment methods product lists and services your sales you can look at those by customer you can look at them by product and you can also look at them by time or activities so just know that there’s a lot of different reports under those two options right there now most of your reports can be customized if you happen to run for example a sales by customer detail you’ll notice that you can come up here and change the report period I can look at all dates and then I can hit run report and I’ll see all of the information for each customer I can group these by customer I can group them by product I’ve got all different kind of ways I can group this report and also something else to notice is that all of your reports are automatically run on the cruel basis not a cash basis and you can change it per report if you need to accrual basically means that as soon as you invoice a customer it’s going to show as income to your business in QuickBooks whether they’ve paid it or not if you had any expenses let’s say you entered a bill it would show it as an expense whether you paid that bill or not we’re gonna see how this really works when we look at a profit and loss a little bit later but let’s go ahead and just kind of wrap this up I just wanted you to see the reports that were available for customers and for your sales and most of them will be under these two headings let’s go ahead now and move over to module six and talk a little bit about products and services we’re just starting module six now and in this module I want to talk to you about how products and services work in QuickBooks a product or service is something that you either sell your customer or sometimes you purchase those products and services as well and you want to set those up and make sure you set the correctly so that you have accurate reports as far as inventory or as far as some of your profit and loss those types of things let’s go ahead and flip over to QuickBooks and start talking a little bit about how products and services work I’m going to give you a quick overview and then I’ll take you into section two and show you how to add some of those products and services to get to a list of your products and services go to the gear icon on the top right of your screen then underneath the list you’ll see products and services this is a list of all the products and services that you have set up remember that sometimes you buy these and sometimes you sell these and there are different types of products and services you can create you’ll notice currently minors sorted by type if I want to sort by any of these other columns I would click on the name and just sort by that column you’ll see there are services you provide like landscaping trimming you’ll see that there are different pest control those are all services you provide when you get past the service items you’re going to see that there are actual inventory items as well inventory means that you actually sell physical products and you count how many you have for example when I look at rock fountain you’ll notice that it looks like I have two on hand and I can buy more and add to my inventory or I can sell these and that will take it out of my inventory there are other types of items that you can have as well you can have non inventory items those are actually items that you don’t want to check them and you have in the back but they’re physical items that you either buy or sell you’ll notice when you’re looking at this list that you can see the name of the item if you’re using SKU numbers and we got those set up you’d be able to see that here the item type a description and this is the description that automatically appears when you pull that item onto an invoice or some sort of form in QuickBooks you’ve got the sales price if there’s one set up sometimes it’s different for every customer so they just don’t set up a price you just do it when you’re actually invoicing the customer or if you happen to buy this whenever you’re purchasing it if this item is subject to sales tax you would see that here if it’s inventory we saw that you can see the quantity on hand and the reorder point that basically means that when you get down to a certain number that QuickBooks will pop up and tell you you need to order some more and you can see that they did not set that up in this exercise the last column that you see is the action column here’s where you can edit to one of these items if you need to make it inactive adjust the quantity that you might have on-hand those types of things but this is where your list of products and services is going to live what I want to do now is show you how to set up some of these products and services so let’s head on over to section two so that you can see how to do that now that you’ve had a quick overview of what the products and services screen looks like I want to take you in and show you how to create your own products and services some of you may only have six or seven in your business other businesses might have thousands it just really depends on what your business does let’s go ahead and flip over and talk about how to add those new products and services the way you’re going to add a new product or service is head up to the new option in the products and services window the first thing you need to tell QuickBooks is what type of product or service is this that you’re adding is it going to be inventory inventory means that you want to keep some on hand and then have QuickBooks remind you when you get down to a low number so that you can order some more that’s called true inventory you can track how many you sold and how many purchased sometimes you don’t want to keep any in the back room and that’s what we call non inventory it might be a physical product that you buy or sell but you just run reports when you need to to see how many you bought or sold you don’t really need to keep any in the back room a service is a service you provide and then you have the OP take any of those three and put them into what’s called a bundle the example they use here is a gift basket of fruit cheese and wine you might actually add something else to that gift basket like a spoon or a cup or something like that and you can actually set those up as one of these three types and then you can create a bundle which includes those three items let’s go ahead for now and say that we’re going to set up a service the first thing we’re going to do is go ahead and give our service a name and I’m just going to call this maintenance you have the ability if you have SKU numbers for your products and services to put that number in here and also you can add a picture of that particular product or service from over here where this little pencil is this would have to be a picture that’s already in your computer and then you can go and grab and pull in you can also put your products and services in different categories there’s a few already created for the exercise but if you wanted to add a new category you could do that by hitting the add new option and creating a category like you see here they’ve got design landscaping and pest control as categories the next thing is the description when you actually put this on an invoice which means you’re selling this to your customer what is the description that appears let’s say that it says quarterly maintenance and then the next thing is going to be the sales price if you have a flat rate you charge for this then you can type that in and it will pre-populate for you but if it’s different every single time then you’ll want to just leave this blank nothing happens here it’s only when you buy or sell the product or service that numbers play into your reports but let’s just say that we have a flat rate of $250 a quarter we charge for this and then the next thing which is the most important thing on this screen is the income account that you want this money to go back to when you put this on an invoice in this case they’ve got it automatically going back to services income which is where I would probably leave it but if you wanted to put this in any other account feel free it’s just it needs to be an income account now if you don’t pick an income account QuickBooks will not say anything to you about it but you’ll look at reports and they’ll be really wrong and you can’t figure out why look at the word the word is income meaning it needs to go to an income account if this was a particular product or service that you were going to charge sales tax on then here’s where you tell QuickBooks this is a taxable product or service or non-taxable product or service typically services you provide are non-taxable and physical items you sell are taxable now if this happens to be a particular product or service that you buy from a vendor that you like you can check the box and put in the vendor information but I’m going to go ahead and uncheck that and click Save and close at the bottom and now you’ll notice that I have a new service in my list here it’s called maintenance and you can see all of the information all the way across now if I needed to edit that information I can click on edit here that will take me back to this screen and I can change whatever I need to and save and close again and then it will be updated you do have a couple of other actions you can take under this drop-down arrow here you can make this service inactive if you need to you can also run a report on this service or you can duplicate it that’s a quick way to go ahead and set up your new products and serve says now that you know how to set up a service let’s go ahead and look at setting up an inventory product that way you can see how to tell QuickBooks how many you currently have on hand and then you can see how inventory is added to or deducted from that number now that you know how to add new products and services and QuickBooks let’s talk specifically about adding inventory products true inventory means that you want to keep a count on how many of these products you have in your office you want QuickBooks to let you know when you get low so that you can order some more you’ll want to actually know how many you have on hand when you first set up your new inventory product and once you’ve done that then as you invoice customers that is how your products will get out of inventory and as you purchase them that’s how your products will get back into inventory let’s go ahead and flip over to QuickBooks and I will show you how to add an inventory product you’re going to add an inventory product the same way we added the new products and services over in section to go to the top of your products and services list and choose the new option this time we’re going to choose inventory the first thing you’re going to do is give your inventory a name I’m going to call this one sprinkler clamps and then we’re going to give it a SKU I’ll call this one 55 and then we’ll choose a category and let’s say in this case that we’re going to put it under landscaping now here’s where you put in the initial quantity on hand this means you’re going to do a count before you set up your product and if you have 10 in the back room you’re going to put that in here and that gives it a starting number you also want to have a date to start this with and let’s just say in this case that I want to go back to the beginning of February reorder point what this means is what number do you want to get down to before QuickBooks pops up and tells you that you need to order some more let’s just say in this case when we get down two three the next thing you’re going to see is inventory asset account now do not change this this is the account that the value of the inventory will actually go into in your chart of accounts remember that inventory is an asset to your business you are worth more because you have it right now but your goal is to sell it and get it out the door this is the asset account the inventory will sit in and then we’re going to put in a description now I would put in the same thing will for new sprinkler clamps and then if you have a set rate than you charge for this you’ll want to type this in if you don’t have one that’s different every single time then you can just leave a blank let’s say that we sell it for two dollars and seventy five cents you don’t want to change this either because this is the income account that this will go into when you make a sale when I put sprinkler clamps on an invoice and I sell this it will go into the sales of product income account if this is a taxable product you’ll want to make sure that this says taxable and now we have the purchasing information this was the selling information up here this is when you purchase it down here the first thing it asks for is a description when you order this from whatever company you order them from what is their description and sometimes it’ll be the same other times it might have a part number at the end there’s just all kinds of different things that this could say what is the cost and this means on average what do you buy it for it does not mean that the last time you purchase this it was a dollar seventy-five let’s just say on average though it is a dollar seventy-five and it will go to an expense account called cost of goods sold if you have a preferred vendor then you can pick them from the list here it could be that you like to get these from Hicks hardware and that’s all you need to tell it I’m going to go ahead and click Save and close at the bottom and now I should see my sprinkler clamps right here you can see the SKU number we typed in the sale price the cost there’s ten of these currently and when we get down to three it’s going to pop up and ask us if we want to order some more don’t forget you have some options over here under your action column if you wanted to go into just the quantity maybe you discovered there’s really only nine in the back room you’ll be able to do that you also have the ability to adjust the starting value and that’s really all there is to adding inventory products let’s go ahead now and move over to section four and talk a little bit about purchase orders if your company buys a lot of products you might want to create a purchase order system for your business when you do this it’s a way of actually tracking everything you have ordered and that way you can see what’s come in if there’s anything back ordered that sort of thing and this is also going to be a way to start the process of receiving your items into inventory let me go ahead and show you how to create a purchase order before we get started there’s a couple things that you need to know first of all if you’d like to use the purchase order feature in QuickBooks you have to be enrolled in the QuickBooks Online Plus edition that’s the Edition that actually handles purchase orders the other thing is you’re going to have to actually turn on the purchase order feature in the account settings let me show you where to go for that you go up to the gear icon you’re going over to accountant settings make sure you’re clicked on expenses and here’s where you see purchase orders if this is not on just come over here to this pencil and then make sure you check the box here to use purchase orders as long as that’s good then you should be fine I’m going to go ahead and close with the X and let’s go and look real quick at our products and services because I want to show you how we’re going to order some more and put it into our inventory I’m going to click on the gear icon under the list the second column I’m going to click products and services if you remember we talked about some of these being inventory and one of these that I want to talk about right here is going to be this rock fell now let’s say we have two of these but we’re getting ready to do a new job and we need to order two more to have a total of four this is what we’re going to order to create a new purchase order I’m going to go to the navigation bar and click on new I’m going to go down in the second column and click on purchase order and the first thing I need to do when creating a purchase order is to pick my vendor I’m going to go down the list here and we’re gonna pick Hicks hardware if you had Hicks hardware’s email it would be pulled in right here you can see there’s the mailing address and then let’s talk about the ship – for a second if you want to have Hicks Hardware ship these directly to your customer you can choose your customer from here if not then it’s just going to come to your office you don’t need to choose anything there here’s the date of your purchase order and in this case they’re using the crew number field so we’re going to plug something in there you can also set a ship via which would say USPS FedEx you can also set a sales rep if you had those as well now looking down the list you want to use the item details not the category details here and remember we’re getting ready to order some more rock fountains now let’s take the other ones out of the list we’re just going to go ahead and click the little trash can over on the right and I want to get two of these so that I have a total of four when I’m done again if it’s related to a particular customer you’ll want to plug that information in right here if you were ordering other things as well you can go ahead and put all of these in here you have a place to put a message to your vendor a memo and at the bottom some attachments once this is done you’re going to go ahead and send this over to your vendor I’m going to go ahead and say save and close and that’s how that works if you have the vendors email address you could have emailed this directly to them other than that maybe you called them on the phone and ordered it but you do have your Pio in here now so that whenever you go to receive these items you have something to receive it against that’s how you actually create a purchase order the next step in the process is that your products actually come in and you’re going to go in and receive those products into your inventory let’s go ahead and head over to section 5 so I can show you how that works now that you’ve created a purchase order you can actually receive the items into your inventory the logical process is that once you order the items from your vendor they’re going to come in the next week 10 days probably and you’re going to want to receive them into your inventory let’s go ahead and flip over to QuickBooks so I can show you how that process works let’s head back to our products and services for a moment I want to show you that if we go down and look at rock film we still just have two and that’s because all we’ve done at this point is order two more once we get through going through this receiving products into inventory feature then you’re going to notice that this number will go up to four all you have to do is head over to the navigation bar and click on new and we’re going to create a new bill the first thing it asks you is who is your vendor and this is where I’m going to pick Hicks Hardware and you’ll notice as soon as I do that that this little window pops up over on the right and this is letting me know that I have an open purchase order if you want to actually add the items on this purchase order to this bill just click at and if you look down here it’s added the rock fountains it’s added two of them and it’s got a rate amount and everything we talked about here because this is an actual bill from the vendor we want to make sure that their rate and the amount and all of that is correct if there happened to be a sale and that’s why we had ordered two of these we would change the rate and of course the amount would change in that case going back up to the top you’ll see that it pulled in our mailing address for Hicks hardware we’re going to want to choose the terms that are on that bill we’re going to say thirty here’s the build date – meaning the date that it was actually printed and the due date meaning the date it was actually due we’ll also want to plug in our bill number over here and that’s really all we need to do there’s a place for a memo down on the bottom left we can add attachments if we want and when we’re finished we’re going to save and close now let’s go see how many we have in inventory now and if we’re looking at rock fountain we have four of those and that’s one of the ways that things get into inventory through a purchase order now we’ll be looking at some other ways things get into inventory it could be you’ve written a check it could be that you’ve actually gone in a debit card but this is a way of creating an order and then receiving that order I want to go ahead and look at the last section in module six here I want to look at some reports related to product and services and then we’ll be done with module six the last thing I wanted to do with you in this particular module is go through some of the reports related to products and services there are a ton of reports in here I want you take some time after watching this video and just go back through some of the ones that we didn’t talk about just to see what’s available we’re going to go ahead and flip now over to QuickBooks and I will show you how to get to those product and service reports you want to head over to your navigation pane and click on reports if you had saved some of these as your favorites they would show up at the top here but let’s scroll down until you see a heading that says expenses and vendors here are your purchase order reports right here one is a list and one is the purchase order detail let’s start with the list you’ll notice these are all of the open purchase orders and they’re listed by vendor if you’ve already received your items from the purchase order it’s not considered open anymore and it won’t show up in this list you’ve got a couple of options up here right now we’re showing purchase orders for all the dates which is what you want and they’re grouped by vendor you can also come over here and customize this a little bit if you wanted to actually look at some filter options you can go down the list and show just specific vendors or if you want to see all vendors we’ll go ahead and choose all from the list and you can see these other options here as well I’m going to go ahead and run the report and I get the same one because I was looking at the open purchase orders all of them now let me go back to the reports list and show you the difference in that one and what we call the open purchase order detail this one here I’m going to change the dates because look how there’s nothing in the report because it’s only reflecting March first but if I choose all dates and then run the report now I can see the purchase orders that are in here and the details about each one and what that means is it’s going to show me every line item in that purchase order I’m grouping this currently by product or service I might group them by vendor and run that report and of course there’s only one and then also I have the same customized options that I showed you just a minute ago if you wanted to choose some filter options you could if you wanted to go down and choose some options for the header and footer which is this area up here you could edit that and then you could run the report once you’ve made your changes now let me go ahead and go back to the report list I want to just mention some other ones here that don’t have to do with purchase orders but you are going to see that if you want to look at things like the purchases by vendor you could do that you might look at your purchases by product or you might look at a transaction list by vendor vendor contact list you can kind of see those reports there there are lots of these reports and you’ll want to run them on a regular basis just so you can see what’s going on and make sure you’ve done things correctly in QuickBooks well that’s going to wrap up module six where we talked about products and services let’s head on over to module seven and change focus and talk a little bit about vendors and expenses if you’re not a subscriber click down below to subscribe so you get notified about similar videos we upload to get a free QuickBooks Online essential keyboard shortcuts infographic click over there and click over there to watch more QuickBooks videos from Simon Says it

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

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QuickBooks Online: Mastering Customers, Sales, and Vendor Expenses

QuickBooks Online: A Comprehensive Study Guide

Quiz

Quiz Answer Key

Essay Questions

Glossary of Key Terms

QuickBooks Online: Setup, Navigation, Customer Management, and More

QuickBooks Online: Setup, Navigation, and User Management

QuickBooks Online FAQ

QuickBooks Online: Features, Setup, and Management Guide

QuickBooks Online: Subscription Options and Features

QuickBooks Online: Company Files and Setup Guide

QuickBooks Online: Mastering the Chart of Accounts

QuickBooks Online: Recording Sales Transactions, Invoices, and Payments

Sales Receipts

Invoices

Receiving Payments

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