QuickBooks Online(University Name) Display this pa.docx

QuickBooks Online
(University Name)
Display this page as attendees enter the room. Sample opening:
“Good Morning, my name is _____________ and I am your
instructor for the duration of the class. (A quick introduction of
your background and qualifications to teach the course.) My
goal is to help you learn to efficiently and effectively use
QuickBooks Accounting Software and I believe this training
will serve you well. Approximately 86% of U.S. small
businesses use QuickBooks related software, and for those of
you pursuing accounting degrees, business and finance degrees,
etc. there is a strong likelihood you will encounter this software
in industry. Technological advances in the past decade allow for
the automation of a good part of the accounting function, great
news for business owners. Increased efficiencies translates in
higher profit margins.
You have received a manual, which is yours to keep. Please
make notes in it as you see fit.
Let’s get started with our training.
1
QuickBooks Online
(Your Name)
(University Name)

(Address)
(Website)
(Email)
(Phone)
presented by
© 2018
2
This training material is presented without warranty of any
kind, either express or implied respecting the contents of this
book, including but not limited to implied warranties for the
book’s quality, performance, merchantability, or fitness for any
particular purpose.
Disclaimer
Copyright
LLC. All rights reserved. Printed in the United States of
America. No part of this book may be used or reproduced in
any form or by any means without prior written permission of
QBExpress, LLC. Material remains the property of QBExpress,
LLC.
Trademark Acknowledgments
All product names and services mentioned in this workbook are
trademarks or registered trademarks of their respective
companies. QBExpress, LLC is not affiliated with any of these
companies.
QuickBooks® Online Training

©2018
Standard Legal Notices
3
About Your Teacher
(Your Name)
<<Insert Teacher Bio>>
(Your Name)
(University)
(Email)
(Website)
4
4
Important Information About the Structure of this Training.
Our QuickBooks Online course is intended as the foundation for
using QuickBooks® as a bookkeeping, business management
and cash flow building tool. The material provides a critical
basis for establishing bookkeeping best practices and ensuring
accurate financial information.

Please ask questions throughout the presentation.
Your Instructor is also available for one-on-one consultations.
In addition to what you will learn today these manuals are for
use as a
post-class reference guide.
We are happy you are here and look forward
to helping you master QuickBooks!
5
Accounting and bookkeeping best practices are the foundation
of this course and a key component of business success. There
are no “stupid” questions and the more interaction we get in the
classroom, the more we all will learn. The group will
collaborate on case studies and participate in both individual
and group activities with the goal of providing practical
working knowledge to all participants.
5
The most important reason to advance our knowledge of
QuickBooks® and basic bookkeeping principles, whether you
are a business owner or employee, is to improve business
performance.
While we identify specific learning objectives at the beginning
of each section,

3 Overall Objectives include:
Introduction to basic features in QuickBooks and how they
apply to best practice bookkeeping principles.
How to effectively and efficiently use QuickBooks to manage
daily bookkeeping tasks and develop an understanding of how
the data is entered, processed and reviewed.
How to customize QuickBooks to meet the specific needs of a
business.
Why we teach Cash Flow with QuickBooks®:
Business owners typically identify Cash Flow as their number
one area of concern. QuickBooks Accounting Software, when
utilized correctly, allows users to run Cash Flow projections
and develop a Cash Flow management strategy to prevent
shortfalls. This training will help participants develop a strong
knowledge base of how to use QuickBooks reports to manage a
business and build cash flow.
The foundation of business success is in the daily use of
accurate, real-time financial data. What we measure, we
manage; what we manage, we improve.
6
Let’s quickly review the overall learning objectives of this
course. (Review above)
You will see a reference to Cash Flow. The reason we have
integrated this topic throughout the course, is that business
owners consistently identify Cash Flow as their biggest area of
concern. Inclusion in this training will help you gain

perspective on both the bookkeeper and business owner point of
view.
6
It is important to focus on the areas of our business that
contribute most to profitability. QuickBooks helps us easily
identify areas of focus if we know where to look.
The 80/20 rule, or the ‘Pareto Principle’, is a powerful concept
that consistently rings true.
In most cases, 20% of our customers generate 80% of our net
profit. At the same time, 20% of the goods or services we sell
contribute 80% of our revenue, etc. You get the idea.
The most important value good bookkeeping brings to a
business is an understanding of where to focus.
By generating daily reports that uncover the best customers,
jobs, services, or products, you will soon see how you can
refocus internal efforts on doing highly valuable work.

Accurate real-time data with one click access to reports, is an
enormous benefit of using QuickBooks® the ‘right-way’.
7
20%
80%
Before we get started, let’s discuss the 80/20 rule, a
foundational business concept that is applied throughout this
training. This will help you understand how to focus efforts on
high value work.
7
Table of Contents
Section 1 – Getting
Started………………………………………………………………..
pg. 11
Objectives
Choose the Right Subscription
quickbooks.intuit.com/online/compare
http://qbo.intuit.com/redir/testdrive
Import Your Data
Dashboard
Practice Test
Section 2 – Setup Your New QuickBooks® Online
Company……………….pg. 25
Objectives

Account and Settings
Company, Sales, Expenses, Advanced
Manage Users
Chart of Accounts
Add, Edit, Delete, Make Inactive, Merge and Sub Accounts
Sales Tax Center
Products and Services
Beginning Balances and Historical Transactions
Bank Balances
Outstanding Invoices
Unpaid Bills and More…
Practice Test
Section 3 – Custom
Reports……………………………………………………………...p
g. 75
Objectives
Balance Sheet
Profit and Loss
Audit Log
Ask My Accountant
Company Snapshot
Practice Test
8
Here are the areas we will cover.
Keep in mind that this is a web-based application and Intuit is
constantly improving the software. They push the updates to all
users each month.
If you notice changes, or buttons disappearing and reappearing,
you are not losing your mind. Even though graphical images and
their locations move around, the foundation remains consistent.

8
Table of Contents
Section 4 – Accounts Receivable
(A/R)………………………………………………pg. 92
Objectives
Customer Center
Add, Edit, Delete, Make Inactive and Merge
Sales Receipts and Invoices
Receive Payments
Bank Deposits
Merchant Fees
Vendor Refunds
Credit Memos
Apply Credits
Refund Receipts
Sales and A/R Reports
Practice Test
Section 5 – Accounts Payable
(A/P)……………………………………………………pg. 118
Objectives
Vendor Center
Add, Edit, Delete, Make Inactive and Merge
Create Expense
Create Checks
Create Bills
Pay Bills
Vendor Credits
Apply Vendor Credits
Print Checks

A/P Reports
Practice Test
9
9
Table of Contents
Appendices
Appendix A - Lists
Appendix B - Attachments
Appendix C - Helpful Tips
Appendix D – Glossary of Terms & Keyboard Shortcuts
10
Section 6 – Bank & Credit Card
Accounts………………………………………….pg. 136
Objectives
Connect Bank and Credit Card Accounts
Bank Transactions
Transfer Funds
Reconcile

Bank Reports
Practice Test
We may not have time to review the Appendices and
recommend you review these sections on your own.
There are great tips such as: Using multiple windows in your
company data file, sending a photo of a receipt from your
mobile app and the QuickBooks® Labs.
10
Section 1:
Getting Started
Import Your Data
Dashboard
Online Training
11
Section 1 is all about choosing the right subscription, importing
data and moving around the dashboard.
11
Section 1 Objectives
Upon completion of Section 1 each participant will become
familiar with the following objectives:
How to choose the right subscription.

How to import company data.
How to view and utilize the Dashboard.
12
Let’s discuss the objectives for section 1:
12
To determine the right QuickBooks® Online subscription for
your business, open a new browser tab and enter this url:
Use the table to verify the subscription you have signed up for
is the best for your business.
Note: The pricing will change periodically.
If you wish to try out QuickBooks® Online without using your
own data, you can access a sample company at:
http://qbo.intuit.com/redir/testdrive
13
It is important to select the correct version to best meet a
company’s specific needs. Use this link
quickbooks.intuit.com/online/compare to simplify the process
and review features available in each subscription. Self-
Employed, Simple Start, , and Plus.
13

Import Your Data
To import data from Enterprise or QB Desktop
Click the Gear icon
Under the Tools options , click “Import Data”
You have the option to import Customers, Vendors, Accounts,
Products, or services using a .csv or excel file. Click the option
and follow the step by step instructions.
Note: Click “You can also import QuickBooks Desktop data”.
To import a current company data file from QuickBooks
desktop to QuickBooks® Online.
14
I will walk you through a new company setup using the sample
company provided, but once you are employed or running your

own business, you may find yourselves in the position of
needing to import data from existing accounting software. Let’s
quickly address this topic first. If using a desktop version of
QuickBooks®, you can import data automatically into
QuickBooks® Online. Caution, read the step by step
instructions carefully. Review the list of transaction types that
do not automatically convert, how to check the data integrity,
and what to do if the conversion does not work.
Once we create a new company from scratch, some additional
setup will be necessary.
14
Import Your Data
Choose to import a QB Desktop, Mac or Enterprise data file.
Watch the video on “How to migrate your data”.
Follow this 3 step process
to import from QuickBooks Desktop.
You can download a free trial of QuickBooks®
Desktop if needed.
Step 1:
Update QuickBooks® Desktop and switch to
Single–User Mode.

15
Let’s watch the short video, it should address any questions you
may have about importing data from an existing QuickBooks
Desktop file.
15
Import Your Data
Step 2:
Click “What’s not imported?” to view
all transactions that did not migrate.
Step 3:
Click “Read how” and “Watch tutorials”
to learn more about the import process
and avoid costly mistakes.

Click “Print Instructions”.
16
Importing data can be a seamless process, however problems
may occur. It is essential that data integrity is confirmed.
Compare the Balance Sheet and Profit & Loss using the accrual
method and select all dates. Remember to follow the
instructions carefully.
16
Dashboard
Welcome to the QuickBooks® Online Dashboard.
Monitor the activity and status of your company at a glance.
Access and drill down to detailed information with a simple
click.
You have the ability to access Customers, Vendors,
Transactions and Reports. You can also organize and monitor
Bank and Credit Card accounts, review Income and Expenses,
and watch Sales trends.
All at a glance
Tip: Click anywhere there is a word (in bolded color), an icon,
a drop down arrow etc..
Feel free to explore without worry!

Let’s Begin!
17
Let’s learn to move around the Dashboard. The left navigation
bar and create menu are accessible from all windows.
There is also a quick financial snapshot. Note: You can hide or
show the setup guide.
17
Dashboard
The links on the left side act as your menu bar and will take you
to frequently used areas in QuickBooks® Online .
Use the Left Navigation Bar to post Bank and Credit Card
transactions in the Banking Center.
View Sales and Expense history.
Access and maintain your Customers, Vendors, and Workers.
Access the Chart of Accounts or Reconcile your Bank and
Credit Card Accounts.
View and Customize Reports.
Review and Maintain the Sales Tax Center
Invite an Accountant or Find a ProAdvisor
Left Navigation Bar

18
Note: Your version of QBO will have an Apps Center at the
bottom of the navigation bar where you can view and integrate
third party applications that have been approved by Intuit, the
maker of QuickBooks.
The left navigation bar is used to access centers and reports.
You are only one click away from accessing real-time financial
data neatly organized in reports. This is powerful. Let’s review
the different centers.
18
Dashboard
Click the Plus (+) icon.
The Plus and Search icons at the top of the Dashboard will
allow you to easily search, create new, and view recent
transactions.
Click the Search icon (magnifying glass) and enter an amount,
date, transaction number etc.. for a simple search.
Click Advanced Search to filter specific transaction types etc…
Click the Plus (+) icon to create manual transactions.
Create Invoices, Estimates, Expenses, Checks and more…
Click Show More to view all of the Create Menu options.
19

The Plus (+) and Search icons are used to create new, search
historical and access recently entered transactions.
19
Dashboard
Once you click Show More you can select Create Options for
Customers, Vendors, Employees and Other.
Click the Search icon to view a list of recent transactions.
Click View More… to search and access recent transactions.
20
Note: Always enter data from left to right, top to bottom to
avoid missing fields that require information.
The create menu is organized by customers, vendors, employees
and other. This is where you go to enter manual transactions.
Let’s review the options.
Searching or accessing recently entered transactions is a very
helpful feature. Let’s say you entered an expense and realized
you made a mistake. Use the search icon to locate the recent
transaction, click and edit.
20
Dashboard
Click the Gear icon at the top right of your dashboard to access
settings, lists, tools and manage your company settings.

Logo
Click the Logo icon to add your custom company logo from
your desktop or hard drive.
Turn on Privacy to hide bank balances.
Bank Accounts
Organize and view bank and credit card balances and activity.
Click the Edit to change the order your accounts are displayed
on the Dashboard and in the Banking Center.
Click Connect accounts to add a bank and credit card accounts.
21
The gear provides access to settings, lists, tools and other areas
needed to manage your business.
Add your logo here.
21

Dashboard
22
Expenses
The Expense section of the dashboard allows you to
view a graph of expenses broken down by amounts based on the
last 30 days.
Scroll your mouse over the graph to create a pop up of expenses
related to specific categories.
Click the drop down arrow next to Last Month to change the
period in which the data is displayed.
Income
The income section of the dashboard allows you to view
invoices that are open, overdue, and paid in the last 30 days.
Click Invoices color bars to view and manage a detailed list of
open invoices currently owed to you by your Customers.
The income and expense sections of the dashboard provide a
snapshot of total unpaid invoices, payments that have not been
deposited and deposits for the last 30 days. Here you can see
total expenses for a period of time. I encourage you to click on
the graphs to see more detailed information.
22
Dashboard

23
Sales
The sales section of the dashboard displays a graphical view of
sales for the prior month.
Profit and Loss
This section of the dashboard provides a graphical view of your
net income, income, and expenses for the last 30 days.
You can change the period in which you view the graphics of
the Profit & Loss.
Track sales by period and monitor sales trends.
23
Section 1 Practice Test
You have a small service business and want to track income,
expenses, and mileage. Which QuickBooks® Online
subscription would you choose?
Self-Employed
Simple Start
Plus
What would you click to connect bank and credit card accounts
to QuickBooks® Online?
Dashboard->Go to registers

Accounting->Chart of Accounts
Dashboard->Connect Accounts
Gear->All Lists
Which of the following does not import when converting from
QuickBooks® Desktop to QuickBooks® Online?
Reconciliation Reports
Recurring Credit Card Charges
Audit Trail
All of the above
Where on the Dashboard would you click to manage users?
Search Icon
Gear Icon
Plus Icon
None of the above
You have a Plumbing company. You often hire subcontractors
and need to track inventory, which QuickBooks® Online
subscription would you choose?
Plus
Simple Start
Self-Employed
24
Section 1 Practice Test Answers: 1. A 2. C 3. D 4. B 5. A
24

Section 2:
Set Up Your New
QuickBooks® Online Company
Manage Users
Chart of Accounts
Sales Tax Center
Beginning Balances and Historical Transactions
Online Training
25
Section 2 – Let’s review default settings and all the areas that
will help to create a more efficient company file.
25
Upon completion of section 2 each participant will become
How to manage account and settings default preferences.
How to set up and manage users.
How to set up and utilize the Chart of Accounts and how it
connects to all transactions.
How to use the Sales Tax Center and where to turn on the
feature.
How to set up and maintain Products and Services.
How to address beginning balances and historical data when
setting up a new company file.

26
26
Company Set-up is Vital
An accurate QuickBooks configuration is essential to
effectively using the accounting system. The initial set up will
affect all future reports in QuickBooks. This is why we
recommend you practice a company set-up from scratch.
QuickBooks is a very forgiving program. Most mistakes can be
fixed as you have the ability to go back and make historical
changes, however a correct setup will prevent the need in most
cases.
Here are some questions for you to consider:
Do you need all historical transactions entered or can you use
correct opening balances for all accounts to date and enter new
transactions going forward?
Do you trust the accuracy of all information you currently have
in your QuickBooks® file?
27
Ask for help if questions arise when setting up a company file
for the first time. If you make errors and use QuickBooks®
improperly for a whole year, considerable extra work (expense)
would be required at year-end to determine how the company

stands financially.
Carefully consider the questions on this slide, as the answers
will significantly impact the setup process.
27
Use Account and Settings to turn on/off QuickBooks® Online
features. Change default settings to create a more efficient and
productive user experience.
Although it is simple to turn settings on and off, it is important
to setup your company settings and data correctly. Seek help
from Instructor if you find you are “guessing”.
Click the Gear icon to review, edit,
and turn on/off settings.
Click Account and Settings.
Click the Company tab in the left menu bar
then click the setting you choose to edit or
click the Pencil on the right side of the screen.
Company Name
Add a Customized logo, verify Company Name, add a Legal
Name and EIN to match the information filed on the company
tax return. Click Save anytime you change settings.
28

Let’s begin with how to turn default settings on or off.
28
Company Type
Select your legal entity and industry type. Click Save.
Contact Info
Verify or edit Contact Info. Click Save.
Address
Verify or edit your company Address. Click Save.
Communications with Intuit
Click Marketing Preferences to add or remove promotional
offers from Intuit.
29

Add or change your company type, address and marketing
preferences.
Your company type should match the type used to file state and
federal tax returns.
29
Sales Settings
Click the Sales tab in the left menu bar.
Click the setting you choose to edit or
click the pencil on the right side of the screen.
Customize
Click Customize Look and Feel to customize Invoices,
Estimates, and Sales Receipts.
Click New Style.
Select Style and choose the type of sales form you would like to
customize. Select a template, add a title and logo, choose color
scheme and preview the form.
Let’s choose Invoice for this example.
30
Review the sales settings and customize sales forms. Let’s play
around and create a custom Invoice.
30

31
Select the Design tab to change invoice template, add a logo,
modify color schemes, change font sizes or print a sample.
Select the Content tab then click on the Invoice Form to change
the header, form name and numbers, displayed information, or
add a customer field.
Select the Emails tab to change outgoing email subject and
default message. Note: Do not overlook the Reminder Email
feature.
Select the Payments tab to add ACH and Credit Card payment
options to your sales forms. Note: This will require you to sign
up for Intuit merchant services.
Click Preview PDF to review the sales form, or click Done.
Consistent branding is important for all companies. Play with

the design tab to create an invoice template that contains
company logo, tag lines, etc. consistent with company branding.
31
Sales Form Content
Click Sales Form Content to select and turn on/off settings for
sales forms.
Preferred Invoice Terms sets the default payment date. "Net 30"
means payment is due 30 days from the date used to create the
invoice.
Preferred Delivery Method will allow you to set a preferred
default to print or send sales forms at a later time.
Shipping adds shipping field to sales forms.
Custom Fields adds extra fields to sales forms, such as sales
reps. Select Internal to show the custom field in QuickBooks®
Online; select Public to print custom field on sales forms.
Note: When you turn on the Shipping feature, be sure to add
the default shipping account category in the Advanced->Chart
of Accounts Settings.
32

Customize your sales form content and delivery method.
32
Custom Transaction Numbers allows you to choose your own
numbering system.
Service Date creates a service date field. This tracks dates
service was performed when different from invoice date.
Discount will add a discount field to invoices.
Deposit adds a deposit field to invoices and allows you to offset
balance owed with amounts paid before service was completed.
Note: Once you turn on Discounts, you will need to add a
discount account in the Advanced->Chart of Accounts Settings.
Click Products and Services to turn on/off desired settings.
Show Product/Service Column on sales forms adds a column so
you can choose from the list of products or services.
Turn on Price Rules allows you to provide discounts for specific
products to certain customers for a specified amount of time.
Show SKU Column allows you to track products and services by
SKU number.
Track Quantity and Price/Rate adds a field to show quantity and
pricing on sales forms.
Track Quantity on Hand allows the tracking of products you
buy, store and sell.

33
Let’s review the Product and Service settings.
33
Messages
Click Messages to add a default email message sent with Sales
Forms, Invoices, Estimates, Credit Memos, Sales Receipts,
Statements, and Refund Receipts.
Click Email Me a Copy to receive a copy of emailed sales
forms. You can include a Cc or Bcc email as well.
Default Message Sent with Sales Forms can be changed when
creating Estimates, Invoices and Other Sales Forms.

Note: Default email message sent with reminders is also
available. Click Reminders to change the default subject and
email message.
34
Default email information for sales receipts and invoices can be
an efficient way to deliver and speed up the process of
collecting funds from your customers.
34
Online Delivery
Click Online Delivery to attach sales forms as a PDF, show
summary or detail, and e-mail text preference.
Statements
Click Statements to change settings to display all your
customers’ unpaid transactions by a single line item or include
detail. Show aging table displays outstanding balances by days

delinquent at the bottom of the statement. Send a courtesy
statement when customers are no longer current. Click Save-
>Done in the bottom right corner.
35
Advances in technology have streamlined invoice delivery. The
invoicing system built into QuickBooks means less human
involvement, a faster business cycle, and better cash flow.
Electronically delivering invoices reduces mailing costs and
decreases the time it takes to invoice a customer.
35
Expenses
Click the Expenses tab in the Account and Settings
menu bar then click the setting you choose to edit
or click the pencil on the right side of the screen.
Bills and Expenses
Click Bills and Expenses to turn on/off settings, add columns on
forms and track expenses.
Show Items table on Expense and Purchase Forms adds products
column to forms.
Track Expenses and Items by Customer adds a column to track
transactions by customers.
Make Expenses and Items Billable adds a column to track
expenses billable to the customer, as well as % of mark up.
Track Billable Expenses and Items as Income Use one or more
income accounts to track billable expenses. Note: Go to
Advanced > Chart of accounts > Billable expenses income

account.
Charge Sales Tax requires sales tax to be turned on and tracks
tax on billable expenses.
Default Bill Payment Terms is used to set default terms for bills
such as Net 30.
36
Expense settings are specific to tracking billable expenses,
markup percentages and products/services by customer.
36
Purchase Orders

Click Purchase Orders to turn on/off Use Purchase Orders and
create custom fields.
Purchase Orders are used to track product purchased from
vendors. This is helpful when tracking open orders for
Inventory and to compare costs to actual bills.
Custom fields add extra fields to purchase orders that allow you
to track information using custom reports.
Custom Transaction Numbers allows you the option to use your
own numbering system. If turned off, QuickBooks® Online will
automatically assign a number.
Default Message on Purchase Orders adds a default message to
all purchase orders. This can be changed when adding new
purchase orders in QuickBooks® Online .
Copy Estimates to Purchase Orders provides the ability to copy
an estimate to a purchase order to track product purchased from
vendors. Note: Click Messages to change outgoing email
messages specifically for Purchase Orders. Click Save->Done.
37
Review the purchase order settings if you use them to track
inventory or merchandise ordered from vendors.
37
Advanced
Accounting
Click Accounting to turn on/off and change settings.
First Month of Fiscal Year is usually based on the calendar year
and starts with January. Some companies use a different month
to start their fiscal year.

First Month of Income Tax Year click the drop down arrow to
select January or same as fiscal year.
Accounting Method
There are two Accounting Methods for running reports: Accrual
and Cash.
If you use Accounts Receivable and/or Accounts Payable in
QuickBooks® Online , then you would choose the Accrual
Basis. If not, then use the Cash Basis.
Close the Books is a great feature that allows you to close a
period and assign a password. Turning on this setting triggers a
warning box that prevents users from changing historical data,
especially when sales, payroll and tax returns have been filed.
38
Click Advanced in the Account and Settings menu bar then click
the setting you choose to edit or click the pencil on the right
side of the screen.
Choose a default accounting method and state why it is
important to close the books. You can always switch between
cash and accrual methods in your custom financial reports.
What is the difference between the cash and accrual method?
38

Company Type
Tax Form
Click the Tax Form drop down list to select the entity used to
file your company’s tax return. If unsure contact your
Accountant.
Chart of Accounts
Click Chart of Accounts to turn on/off Account Numbers and
assign default income accounts.
39
Choose the tax form based on the type of forms the company
will file with the IRS.
It is up to you whether to use account numbers in your chart of
accounts. Accountants love financials with account numbers.
If you are tracking shipping costs, discounts and/or billable
expenses, this is where to assign default accounts.
39
Categories: Classes and Locations

Classes allow you to tag transactions in order to gather data and
review reports by a specific class or tag.
For example: ABC company is a non-profit and needs to track
data by event or fundraiser. This will allow you to review a
Profit & Loss by class.
Click the appropriate box to turn on Track Classes. Once the
track classes is turned on click “warn me when a transaction
isn’t assigned a class”. This will create an alert when the class
entry is missed during the data entry process.
Assign Classes gives you the option to assign classes to a
transaction or individual line items.
40
Let’s discuss the benefits of class and location tracking and how
to use these feature in QuickBooks®
40
Locations
Locations are used to tag transactions and gather data for a
specific Location, Department, Property etc. For example: Rags
to Riches, LLC has multiple stores and would like to review a
Profit & Loss for each store.

Automation
Click Automation to turn on/off settings for pre-filled forms,
apply credits and more.
Pre-Fill Forms with Previously Entered Content fills form fields
with memorized content from prior vendor, customer, and
employee transactions.
Automatically Apply Credits posts outstanding credits to newly
created invoices.
Automatically Invoice Unbilled Activity creates invoice for
tagged transactions waiting to be billed to a customer. When
the invoice is generated an alert is sent to the activities section
of the Dashboard.

41
Class tracking can be used in conjunction with locations.
Locations are similar to class tracking and used primarily for
multiple locations and territories. Automation settings are
recommended and can be very useful when used properly.
41
Copy Estimates to Invoices creates an invoice from an estimate.
Select copy accepted estimates only or copy pending and
accepted estimates.
Automatically Apply Bill Payments will apply bill payments to
the oldest bill first.
Projects
Turning on Projects allows you to organize all job-related
activity in one place. It allows you to review all Sales,
Expenses, and Timesheets by project.

Note: The Projects setting is permanent. You will be able to
turn it on and off in the future.
42
Projects is a new feature as of December 2017. It allows you to
review all Sales, Expenses, and Timesheets by project.
Be aware! This is a permanent setting and you will have the
ability to turn it on and off in the future.
42
Time Tracking
Click Time Tracking to turn on/off and edit settings.
Add Service Field to Timesheets is a field used to enter specific
services performed.
Add Customer Field to Timesheets is a field that tracks billable
time by customer.
Show Billing Rate to Users Entering Time is used when you bill
your customers at the same rate you pay your employees or
subcontractors.
First Day of Work Week sets the starting day of a work week on
timecard entry form.

Currency
Multicurrency lets you track transactions in foreign currencies.
Use it only if you have bank accounts, customers, or vendors
that don’t use your home currency. Select the default Home
Currency. Warning! Once you select a Home Currency, you
will not be able to change it.
Select Multicurrency
Note: Once you turn this feature on, you cannot turn it off or
change your home currency.
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“Currency” allows for multicurrency tracking. This feature
should be reviewed carefully as it cannot be turned off.
It is very important to choose the correct Home Currency when

you turn it on.
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Other Preferences
Click Other Preferences to turn on/off and edit settings that
trigger warnings and formatting preferences.
Date Format is a preference with several options.
Number Format is a personal preference.
Customer Label reflects the type of customers you service or
sell to. The label you choose will appear on the Navigation
Menu Bar and transactions related to customers. Such as
Invoices, Sales Orders, Credit Memos, etc.
Example: Non-Profits might choose Donors or Members,
medical companies would select Patients and realtors with
rentals would select Tenants.
Warn if duplicate check number is used populates a warning box
when a duplicate check is entered.
Warn if duplicate bill number is used populates a warning box
when a duplicate number is used.
Sign me out if inactive for a period of time. Choose between 1-3
hours. Click Save->Done.
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Other Preferences are a personal choice for time, date and
number format as well as for reminders when entering a
duplicate check or bill number. The customer label can be
changed to represent your client base.
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The Big Picture of Why this Training is Important

The bookkeeping function is a critical component of a firm’s
success.
The majority of businesses do not recognize the importance of
good numbers or how to put them to work to improve company
performance. Accurate, real-time financial data and the
knowledge of how to put it to work for a company is a powerful
component of business success.
QuickBooks is designed to help you with every day
organization, from organizing expenses, connecting bank and
credit card accounts for automatic downloads, to categorization
and far more. As we will demonstrate, the software
automatically tracks inventory on hand and per item cost so you
can keep a better handle on productivity and profit margins, etc.
In addition, it provides real-time data with one click reporting
that explains how the business is performing.
QuickBooks can help a business control cash flow. The software
automatically stays on top of who owes what, and will even
email overdue customers. Automated invoicing and more, will
streamline processes, dropping more to the bottom line.
As you can see, learning how to take advantage of important
features of accounting software can mean the difference
between success and failure in a business.

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Many business owners underestimate the importance of the
bookkeeping function. Successful business owners understand
the function is critical and requires daily attention. It is
extremely important to monitor the financial on a regular basis
to ensure accuracy and to prevent fraud.
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Manage Users
When inviting users, you can determine how much or little
access a user has to your company data. Maintaining user access
is important to implement checks and balances and view activity
by user. This can serve as a training tool to address and avoid
common errors.
Click the Gear icon.
Click Manage Users.
Note: You can add up to two accountants to your QuickBooks®
Online data file in addition to the # of users your subscriptions
provides. In order to do this, your accountant must subscribe to
QuickBooks® Online Accountant.
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Setting up users is important to maintain integrity and
accountability within your company. You can determine the
access levels for each user.
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Manage Users
Click New to add a new user.
Regular or custom user will allow you to select which areas a
user can access.
Company Administrator has access to all areas of QuickBooks®
Online Plus.
Reports only will allow users access to most reports with the
exception of payroll and reports that list information for
customers, vendors, or employees.
Time Tracking only limits users to entering their time.
Click Next and follow the screens until you have successfully
added a user.
Note: User options may be limited depending on the type of

subscription. This example is based on the Plus version of
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Choose the user type.
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Manage Users
Continue to click Next until you complete the Add User
process.
Note: A box appears with a list of Access Rights depending on
your selection.
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Walk through the user setup when assigning access rights. Read
the information provided.
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Manage Users
For those that have the Plus subscription you will have the
ability to set the Administrative rights for specific users.

Enter User Name and Email information, an invite will be sent
to the user where they can accept the invite and create a
password.
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Here is where we invite the user to join the company file. The
user will receive an email and once they accept and add a
password, they will have access to the data based on the
assigned rights.
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Manage Users
To invite an Accounting Firm with Administrative rights to your
Company data,
from the Manage Users main screen click Invite Accountant if
your accountant subscribes to QuickBooks® Online
Accountant.
Enter Email & Name and ask your accountant to accept the
invite.
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Invite Accountants or Bookkeepers to input, review or for
training support.

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Chart of Accounts
The Chart of Accounts is a list of categories that make up your
Balance Sheet and
Profit & Loss Statements. Every transaction entered into
QuickBooks® will post to the accounts list. This is how data is
compiled to produce important reports you will use to manage a
business.
Balance Sheet
Assets (What your company owns ) - Bank Accounts, Petty
Cash, Fixed Assets (Equipment or Vehicles), Inventory,
Undeposited Funds (Payments from customers waiting to be
deposited)
Liabilities (What your company owes) - Accounts Payable,
Loans, Sales and Payroll Taxes
Equity (The net worth of your company) = Assets - Liabilities
Money that owners contribute or draw from the business and an
accumulation of net profits and losses from the start of the
business to present or sale.
Profit & Loss
Income (What you have earned) - Sales of Products, Labor,
Interest, Rental Income, Materials, etc.
Expense (What you have spent) - Office Expenses, Wages,
Professional Fees, Rent, Utilities, etc.
The Profit & Loss Statement determines the net loss or gain for
a period of time. At the end of a calendar or fiscal year the net
profit or loss rolls into the equity section of the Balance Sheet.
Note: Keep your chart of accounts simple. Add new accounts
when you need to track specific information. Utilize reports to
customize information within an account. Discuss account
changes with your accountant. Start by adding Bank and Credit
Card Accounts.

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Understanding the Chart of Accounts is key to accurate
financials.
Every transaction interacts with the Chart of Accounts through
behind the scenes (debits/credits).
Let’s discuss two important financials all business owners
should review regularly. The Balance Sheet is one of the most
overlooked financial statements by small business owners. The
Profit & Loss is instrumental in managing your cash flow.
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Chart of Accounts
Manage Accounts
Click Chart of Accounts.

Click View Register to manage transactions for a specific
account.
Click the Drop Down List to edit, delete or run reports.
Click the Header Name to sort by column.
Type an account name in the Filter by Name field to search for
an account.
Click the Pencil icon to edit multiple chart of account names.
Click the Printer icon to print a list of your chart of accounts.
Click the Gear icon to add/remove display columns, change the
number of rows, or include inactive accounts.

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Manage and add new accounts. Keep it simple!
Besides typical accounts, what accounts need to be broken down
on your financial statements and what accounts does your tax
accountant need to see.
Unnecessary accounts are often created when users do not know
how to use reports. We will discuss reports later on.
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Chart of Accounts
Add Accounts
Click New or the Drop Down List to
add an account or import from a .csv file.

Create a new account and name it Ask My Accountant. Set the
Category Type to Other Expense and the Detail Type to Other
Miscellaneous Expense.
This will position the account at the bottom of your Profit &
Loss Statement and will stand out as a reminder to address or
research questionable transactions before processing financials
for the month or year. Click Save and New to add another
account or Save and Close to return to the chart of accounts list.
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Add new accounts.
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Click New from the Chart of Accounts List.
Select the proper Category Type from the drop down menu.
In this example we are setting up a new Bank Account.
Chart of Accounts
Select the appropriate Detail Type.
Each Category Type has a specific detail type list to select
from.
Being consistent with type choices is important if you need to
merge accounts in the future.
Add Bank Accounts

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You must verify or add bank accounts to begin entering
transactions.
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Chart of Accounts
Edit Account
From the Chart of Accounts list locate the Account you would
like to edit.
In this example: The Loan Payable is really a 5 year vehicle
loan and a long term liability. Current liabilities are usually
paid within a year such as sales and payroll taxes.
From the Action Menu column, click the drop down list -> Edit.
Use the Category Type drop down list to change the type from
Other Current Liabilities to Long Term Liabilities. Change the
Detail Type to Note Payable, change the name and description
to be more specific. Remember to click Save and Close.
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Here is how you edit an account.
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Chart of Accounts
Delete Account
From the Chart of Accounts List
Click one time to highlight the Account you would like to
delete.
For this example we will delete Miscellaneous expense.
Click Delete from the Action Column drop down list.
An “Alert” will pop up and ask you to confirm. Click Yes.
The Miscellaneous account will no longer appear in the
Chart of Accounts List. However the account is technically
inactive and will appear on the list when you choose to
Include Inactive from the Gear icon.
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Delete or Inactivate an Account.
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Chart of Accounts
Merge Accounts
Merging accounts is helpful if two or more accounts are being
used for the same types of transactions and you want to combine
the transactions into a single account.
Caution: The merge process cannot be undone and is permanent.
It is important to confirm the merge process will not effect the
financial statements used to file tax returns.
It is advisable to discuss the clean up of your Chart of Accounts
with your Accountant or ProAdvisor before merging accounts.
In this example we have two accounts being used to track office
expenses.
We will merge Office Supplies with Office Expenses from the
Chart of Account Settings Window.
Click one time to highlight the Account you will keep “Office
Expenses”.
Click Edit from the Action Column drop down list.
Note: The Account Type and Detail Type must be the same for
accounts you intend to merge.
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Merging accounts is a great way to combine accounts used for
the same type of transactions. Caution! You cannot undo this
process.

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Chart of Accounts
Highlight the Name Office Expenses Copy (Ctrl + C) the
account name.
Click the Cancel button in lower left to return to the Chart of
Accounts Settings List.
Click one time to highlight the Account you will Merge “Office
Supplies”.
Click Edit from the Action Column drop down list.
Highlight the Name Office Supplies Paste (Ctrl + V) to replace
“Office Supplies” with Office
Expenses then click Save.
Click Yes.
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Let’s continue with the merge process.
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Chart of Accounts
Sub-Accounts

Sub-Accounts are a great way to organize your chart of accounts
when used properly.
It is important to select the sub-accounts in all transactions and
avoid using the main account.
Click New from the Chart of Accounts List.
For this example we will create Sub-Accounts for Automobile
Expenses.
Note: The Category Type is ‘Expenses” the Detail Type is
“Auto” and the Name is “Service”.
Click the box is sub-account and select the main account
“Automobile”
Now that you have created a Main Account for “Automobile”
and Sub-Accounts for Fuel, License, and Service the Chart of
Accounts should look like the following:
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Sub-Accounts can be very useful and tricky if not used
properly. Let’s review the proper setup and how to use sub-
accounts.
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Sales Tax Center
Visit the Sales Tax Center to view sales tax activity and recent
payments.

Access reports and edit settings and rates all from one window.
Click Taxes from the Left Navigation Bar, then click the Sales
Tax tab.
Click drop down arrow for Show By to view data by Month,
Quarter, Half-Year and Yearly.
Click drop down arrow For to select Current or Previous Year.
Click drop down arrow for Start of Year to change the calendar
or fiscal month for your company. Select Accounting Basis
Cash or Accrual.
Highlight the Agency Name and click Record a Tax Payment or
View Report.
View recent sales tax payments, delete a payment or view all
historical payments.
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The sales tax center is a great way to manage, view and post
sales tax related activity.
The accounting basis default setting should be based on your
state filing requirements.
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Sales Tax Center
Related Tasks

The Sales Tax Center includes related tasks that give you the
ability to view Sales Tax Liability or Taxable Customer reports,
edit Sales tax settings and add/edit rates and agencies.
Click Add/Edit Tax Rates and Agencies.
Add a new Tax Rate Name, Agency and Tax Rate or select Tax
Rate Name to edit or deactivate it from the current list.
Note: It is important to maintain the sales tax Rates and Agency
list to ensure accurate reporting to State Agencies.
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Note: You are responsible for maintaining tax rates in your

company data file.
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It is time to setup a list of products and services you currently
offer to your customers.
Click Products and Services
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Run Reports or group products/services by Category.
The Product and Services List displays information for each
product or service.
Click the Gear icon to add and remove columns from the list.
Products and Services are used in sales receipts and invoices.
They serve as a link from sales forms to the chart of accounts.
We can track taxable products, quantities and pricing. We can
run sales reports based on products and services we sell.

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Product and Services
Add Product or Service
Click New.
Select a Type:
Inventory Item
Inventory Items are products we purchase, store on a shelf and
sell at a later date.
Enter the Name of the Inventory Item, SKU # if applicable,
Upload a Photo of the product, and organize products by
Category.
63
Add a Product or Service. Let’s discuss the types of products
and services available.
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Enter the Quantity on Hand, Select Date, Reorder Point and
Inventory Asset Account from your chart of accounts.

Note: An Inventory Product type cannot be changed. It is
important to correctly select the type when setting up a new
product or service.
Enter the Sales information for your new inventory item. The
description will flow to the sales receipt or invoice when you
sell the product. Enter the Sales Price/Rate, check the Is
Taxable box if you are collecting sales tax for this Item and
select the Income account from your chart of accounts.
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Let’s add an Inventory item. Let's discuss the difference
between an Inventory and a non-inventory item.
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If this is an item you purchase from a vendor and sell to your
customers, enter the Purchasing Information, Cost and Expense
account from your chart of accounts.
Non-Inventory Item

Non-Inventory Items are products we sell to customers without
tracking quantity on hand.
We purchase them specifically for jobs and projects. This type
of item gives us the ability to track purchase orders without
having to keep track of Inventory.
Enter the Name of the Inventory item, SKU # if applicable,
Upload a photo of the product, and organize products By
category.
Note: This item type can be changed to Inventory, Service, or
Bundle. Once you change this type to an Inventory Item, you
cannot change it again.
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Some products require purchasing information which posts to
expense accounts (when used in a bill, expense or check). It is
very important to understand how bills assist in adjusting
quantities in inventory.
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Non-Inventory Item
Enter the Sales information for your new Non-Inventory Item.
The description will flow to the sales receipt or invoice when
you sell the product. Enter the Sales price/rate, check the Is
taxable box if you are collecting sales tax for this item and
select the Income account from your chart of accounts.
If this is an item you purchase from a vendor and sell to your
customers, enter the Purchasing information, Cost and Expense
account from your chart of accounts.
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Note: The income account is set to Sales of Product Income and
the expense account is set to Cost of Goods Sold.
This is how we connect items to the chart of accounts. Every
time the item is sold in a sales receipt or invoice or purchased
through a bill, check or expense, we can track the history of
each item.
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Service Item
A Service Item is used to track all services you provide
customers, such as: Labor, Monthly Gardening, Repairs, etc…
Enter the Sales information for your new Service Item. The
description will flow to the sales receipt or invoice. Enter the
Sales Rate per hour or flat fee, uncheck the Is Taxable box for
this item and select the Income Account from your chart of
accounts.
Note: The purchase information does not typically apply to
service items. Simply uncheck the box “I purchase this
product/service from a vendor”.
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Service items require an income account and do not typically
require purchasing information.
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Bundle
A Bundle is made up of individual products or services, like an
assembly or finished good made up of multiple parts. For
example, a landscaper may perform multiple services and
invoice the customer as a bundle. Landscaping Package can
include several services. In this example we have bundled
Gardening and Trimming as a Landscape Package.
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Let’s discuss the Bundle item.
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Search Products and Services
Use the search and filter features to find specific items. You can
filter by the status active, inactive and all. Filter by Status,
Type, and Category.

Edit Products and Services
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Click Edit to change information for a Product/Service.
Click the down arrow to duplicate, inactivate or run a report for
a Service or non-inventory Product. Inventory Products will
also include adjust quantity or starting value.
Search or Edit Items
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Beginning Balances
It is important to verify or enter beginning balances and
historical data. Your accountant can assist you in using a
journal entry or you can add beginning balances when adding
accounts to your chart of accounts list.
If you have converted data, then you would have compared a
Balance Sheet and Profit & Loss Statement (set for all dates and
accrual basis) in QuickBooks® Online with the same reports in
the accounting application you were using.
Enter beginning balances when setting up a new bank account,
credit card and other assets/liabilities. In this example a new
bank account was added with a beginning balance of $5,000.00.

The beginning balance is posted to the bank register (debit) and
a default account, Opening Balance Equity (credit).
Note: Accounts Receivable (customer invoices) and Accounts
Payable (unpaid bills) should be entered individually to match
beginning balances.
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Beginning Balances are important when setting up a new
company file. If you converted data you should already have
beginning balances. Remember to review your Balance Sheet
(Accrual Basis) to confirm balances are correct.
Important note: Enter open invoices and unpaid bills to add
accounts receivable and accounts payable balances.
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Historical Information
Entering Historical Information
When entering historical information use the following process:
Accounts Receivable – enter transactions (invoices, credit
memos, payments and deposits) in the same order and date they
were created or received. This process creates a historical

record of transactions by customer.
Invoice – Click the Plus (+) icon-> Invoice and enter each
invoice sent between your start date and today. Be sure to use
the correct dates as well as the Products and Services List.
Credit Memos – Click the Plus (+) icon-> Credit Memo to add
customer credits given between your start date and today.
Receive Payment – Click the Plus (+) icon-> Receive Payment
and enter all payments received by customers between your start
date and today. When payments are received they are posted to
a default holding account known as Undeposited Funds.
Bank Deposit – Click the Plus (+) icon-> Bank Deposit to select
payments and post deposits to the bank register. This is a very
important step intended to group payments that match the
deposit sent to the bank. This step clears out the Undeposited
Funds holding account.
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Review the information on how to go about entering historical
transactions into QuickBooks® Online.
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Historical Transactions
Bank Transactions – If you are entering historical transactions
for more than a one-month time frame, enter the transactions
one month at a time and reconcile all bank and credit card
accounts before going on to the next month.
There are two ways to enter historical bank transactions,
manually and through web connect.

Use the following process to enter Bank Transactions:
Manually enter all checks – Plus (+) icon-> Check and enter all
checks posted one month at a time.
Manually enter debits – Plus (+) icon -> Expense and enter all
debits posted to the bank one month at a time.
Web Connect the bank account to QuickBooks® Online –
Dashboard -> Connect Account and follow the setup process.
Use caution when selecting the period of time to download
transactions to avoid duplicate transactions.
Complete Bank Reconciliation – Gear icon> Reconcile.
Deposits and bill payments should already be posted to the
register.
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Setting up bank feeds is typically a smooth, streamlined
process. If you need additional help, contact customer support
at your local bank.
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Which of the following statements is not true about Products
and Services?
Service items can be changed to other types
You can setup Inventory, Non-Inventory, Service and Bundle
types
Inventory types can be changed to another type
You can setup and manage categories to group products and
services

How would you set a closing date and password?
Gear->Account and Settings->Company
Gear->Account and Settings->Chart of Accounts
Gear->Account and Settings->Advanced->Accounting
Gear->Account and Settings->Advanced->Automation
What type of account would you use to setup a new vehicle
loan?
Long Term Liability
Asset
Current Liability
Expense
What product type would you use for tracking sales for products
or services you do not keep in inventory?
Service
Non-Inventory
Other Charge
Inventory
What should you do when you need to inactivate an account and
it has historical data?
Copy
Merge
Edit
Delete

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1. C 2. C 3. A 4. B 5. D
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Where would you go to setup an external accountant?
Gear->Manage Users->Invite Accountant
Gear->User Profile
Left Navigation Bar->My Accountant->Invite
Both A and C
How can you add multiple windows to work in different areas of
your data file simultaneously?
Gear->Attachments
Gear->Custom Form Styles
Right Click browser tab->Duplicate
None of the above
What is the purpose of subaccounts?
To track classes or locations
To group accounts in a logical order
To track expenses by class
All of the above
Where would you go to manage sales tax?
Customers->Sales Tax->Manage Sales Tax
Gear->Account and Settings
Left Navigation Bar->Taxes->Sales Tax
Left Navigation Bar->Sales

What category in the chart of accounts is used to post beginning
balances?
Open Balance Equity
Retained Earnings
Ask My Accountant
Beginning Balances
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6. D 7. C 8. B 9. C 10. A
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Section 3
Custom Reports
Balance Sheet
Profit & Loss
Audit Log
Ask My Accountant
Company Snapshot
Online Training
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Section 3 is all about reports. Let’s discuss and customize
reports that help us manage our business. Being able to rely on

the accuracy of the data and understanding reports is key to
managing cash flow and profitability.
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How to save and group Custom Reports.
How to setup and review a Balance Sheet.
How to setup and review a Profit & Loss.
How to review an Audit Log.
How to create a report and utilize Ask My Accountant.
How to access and view the Company Snapshot.
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My Custom Reports
Customizing and viewing reports on a regular basis will ensure
the accuracy of your company data, improve your cash flow,
and help you make better management decisions.
The My Custom Reports section allows you to save custom
reports in groups and streamline the time it takes to review
reports daily, weekly, monthly etc.
The Balance Sheet and Profit & Loss are two very important
reports. The Balance Sheet is often overlooked by business
owners. This reports displays assets, liabilities, and equity. It is
a snap shot of your company’s net worth and links to your
Profit & Loss Report.

Click Reports in the Left Navigation Bar.
Click All Reports
Click Business Overview
Click Balance Sheet
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Let’s visit the Reports Center where we will focus on key
reports and
how to add custom reports to organized groups.
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My Custom Reports
Balance Sheet
There are several ways to filter the data for your custom
reports. Change the Report Period, Display Columns, Show non-
zero or active only, change the Accounting Method, or Compare
Periods.
The Collapse Option consolidates all sub-accounts balances
with the main account. The Expand option displays all sub-
accounts balances. Sort by ascending or descending, or Add
Notes. Click the appropriate icon to Email, Print or Export a
report.

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Click Customize.
Let’s customize a Balance Sheet. Again, one of the most
overlooked reports by small business owners.
Do you believe you now know the difference between the
Accrual and Cash accounting methods? If not, we can quickly
review again.
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My Custom Reports
79
Click Rows/Columns to change the way Columns are displayed,
Show non-zero rows and columns, or add Period Comparisons.
Click Filter to select specific Customers, Vendors, or
Products/Service items to be displayed.
Click Header/Footer to change the Report Title, remove
information displayed and change the alignment of the report.

Click Run Report.
Let’s review how to customize reports.
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My Custom Reports
Click Save Customization.
Name your custom report or use the default name, add this
report to a group, or share it with a coworker. Organizing your
reports in groups will save time locating and reviewing your
favorite reports. Click Save.
Now simply click on Reports->My Custom Reports to quickly
access your customized Balance Sheet.
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We encourage business owners to use reports to manage their
business. It is one thing to be a data entry robot and another to

use the power of reports to manage a business.
80
My Custom Reports
This sample displays the assets portion of the Balance Sheet. In
order to rely on your financial data it is important to verify that
all asset account balances are accurate.
81
Here is a sample Balance Sheet. Let’s take a stroll through
Assets. Did we complete all bank reconciliations?
Does our Accounts Receivable match the Accounts Receivable
Summary Report?
Why do we have a balance in Undeposited Funds?
Where is the accumulated depreciation?
81
My Custom Reports
This sample displays the Liability and Equity sections of a
Balance Sheet. In order to rely on your financial data it is
important to verify that all Liability and Equity account
balances are accurate.
82
Let’s take a stroll through Liabilities and Equity.
Have the Credit Cards and Loans been reconciled?
Are the current Liabilities accurate?

Do the total Assets match the total Liabilities plus Equity?
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My Custom Reports
Profit & Loss
The Profit & Loss report is an accumulation of income and
expense for a period of time. At the end of each year the net
profit or loss rolls into the equity section of the Balance Sheet.
Each new year starts with a zero balance for income and
expenses.
Click Reports in the Left Navigation Bar->Reports->All
Reports->Business Overview.
Click Profit and Loss % of Total Income.
Note: Repeat the customization process used to create the
Balance Sheet and add the following:
Under General change the Negative Numbers to parenthesis and
check the box Show in Red.
83
Let’s customize a Profit & Loss statement. We will use the same
process as the Balance Sheet. It may be wise to show negative
numbers in red so they stand out on the report. This can be
helpful for users learning to read reports.
83
My Custom Reports

84
Note: Remember to click Save Customization and add this
report to your new report group in My Custom Reports.
As we review the Profit & Loss Statement look for negative
numbers and verify that the Net Income matches the Balance
Sheet Net Income in the Equity section.
Make sure you are looking at both reports with the same
accounting method and period of time.
Notice we excluded cents and collapsed the report in the
customization options.
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My Custom Reports
Fraud prevention is a growing topic. Many business owners
have experienced this first hand. Implementing fraud prevention
policies, processes and procedures can help detect and prevent
fraudulent activity.
Biz Q&A:
How do you prevent fraud from occurring in a business?
How do you identify areas where the likelihood of fraud is the
greatest?
How do you protect your business assets and cash?
Did you know that businesses with strong internal controls in
place have more accurate financial statements?
Important Fact:
According to the Association of Certified Fraud Examiners, the
average business will lose approximately 7% of revenues due to

employee theft. Small businesses have a 38% greater amount of
fraud than larger companies.
Let’s view and save an Audit Log in My Customized Reports.
85
Let’s discuss the importance of fraud prevention and detection.
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My Custom Reports
Audit Log
The Audit Log report is a good way to view activity by user.
This is a great training tool used to enforce accurate data entry.
The Audit Log is also a way to detect fraudulent activity.
Click Reports->All Reports->Business Overview->Audit Log.
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Click the Filter button to search historical transactions by
Users, Dates or Events.
The audit log records activity for each user. This log can be
used to detect fraudulent activity or as a training tool.
86
My Custom Reports

Audit Log
87
Notice the filter criteria is set for a specific user and the
historical data indicates when he logged in and out, as well as
specific transactions that were edited by Craig Carlson.
Click the Gear icon to select columns to view.
Click View to see details for a specific transaction.
The Audit Trail records activity for each user. This log can be
used to detect fraudulent activity or as a training tool.
87
My Custom Reports
Ask My Accountant
This report can be a very helpful tool. It is used to post
transactions when the user is not sure which category to use.
The memo field allows the user to post notes and questions for
their Accountant. It can be a great way to train a new
bookkeeper or business owner.
Click on Accounting in the Left Navigation Bar->Chart of
Accounts tab. Locate Ask My Accountant in other expense type,
then click Run Report.
Click Customize->Header/Footer to change the Header to Ask
My Accountant.
Change the Report Period to All Dates then click Run Report.

Remember click Save Customization to save your report in My
Custom Reports.
Notice the Accountant’s response in the Memo/Description field
to post the transaction to Fixed Assets/Computer Equipment.
Note: It is important to clear up all transactions on this report
before year end and especially before filing a tax return. This is
a temporary place holder for transactions that need more
information to post in the correct account.
88
Ask My Accountant is a great way to learn the proper
categorization of transactions and communicate with your
accountant.
You can also create this custom report using the General
Ledger.
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My Custom Reports
Company Snapshot
This report is a snapshot of your company. It is great if you like
to use flowcharts and graphics to view your company data.
Change the period of time to view Income and Expenses by
month, quarter, or year. Click Reports->All Reports->Business
Overview->Company Snapshot.

Run a Previous Year Income and Expense Comparison by month
or quarter.
Note: This report includes a list of customer and vendor
balances.
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You can see who owes you money and who you owe at a glance.
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Speed is Critical to Positive Cash Flow
Business Tip: Cash flow includes all transactions that go in and
out of your bank accounts. Some transactions will post to the
Balance Sheet and some will post to the Profit & Loss.

Any event that slows down the
clock, thereby interrupting the process, hurts cash flow.
Think of the cycle as a clock.
Cash Flow is generated by the business cycle.
The Business Cycle
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The proper use of QuickBooks will significantly increase
efficiencies and the speed of the business cycle.
What is the business cycle and how does it directly effect cash
flow?
What is the difference between cash flow and net profit?
90
You track invoices by customer, which accounting basis will
allow you to see an Accounts Receivable balance on the Balance

Sheet?
Accrual Basis
Cash Basis
Both A and B
None of the Above
You have several reports you want to memorize and organize,
where would you save them?
File->Reports->Memorized Reports->Create Group
Left Navigation Bar->Reports->My Custom Reports
Left Navigation Bar->Reports->Management Reports
Report Center->Create New Report Group
What report can you use to review transactions by user?
General Ledger
Reconciliation
Trial Balance
Audit Log
Which report would you use to review income and expenses?
Profit & Loss
Cash Flow Statement
Balance Sheet
Payroll Summary
Which category would you choose when you are not sure how to
keep track of certain transactions?
Retained earnings
Office Expense
Ask My Accountant
Open Balance Equity
91

Section 1 Practice Test Answers: 1. A 2. B 3. D 4. A 5. C
91
Section 4
Accounts Receivable
Customer Center
Sales Receipts and Invoices
Receive Payments
Bank Deposits
Credit Memos
Apply Credits
Refund Receipts
Sales and A/R Reports
Online Training
92
In section 4 we will walk through the Accounts Receivable
process. Maintaining Accounts Receivable best practices is vital
to healthy cash flow.
92
Overview of Accounts Receivable.
How to correctly use Customer and Accounts Receivable related
accounts and settings.
How to use the Customer Center.
How and when to use a Sales Receipt vs. an Invoice.

How to receive payments and record deposits.
How to use credit memos and apply credits.
How to issue Refund Receipts to customers.
How to view and save Sales and Accounts Receivable related
reports.
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Accounts Receivable
In the Accounts Receivable section we will discuss the
importance of managing open invoices owed to you by your
customers. You would be amazed how costly this process can be
and the impact it has on your cash flow.
Biz Q&A:
Why do you think it is important to manage your Accounts
Receivable?
Why do you think business owners should have an Accounts
Receivable and Collections Policy?
Wow Fact:
According to the Harvard Business Review, here is an average
of what receivables cost a company:
30 day – 1.82 %
60 days – 9.20%
90 days – 17.74%
120 days – 26.71%
“Success is a few simple disciplines, practiced every day; while
failure is simply a few errors in judgment repeated every day.”

- Jim Rohn, American Entrepreneur
Let’s view and save an A/R Aging Detail report in My
Customized Reports.
94
Why is it so important to closely manage Accounts Receivable?
Why is it important to develop a policy for collections?
Creating a Collections Policy is a crucial component of healthy
cash flow.
The longer the invoices sit unpaid, the more costly it becomes
to collect the funds.
94
Customer Center
The Customer Center includes maintaining customer lists,
adding invoices, receiving payments, and viewing transactions
related to your customers.
Click Sales->Customers to access the Customer Center. Click
the Invoices tab to view open invoices and manage invoices.
Click the drop-down arrow to select from a list of options such
as: Send Reminders, Create Statements, Invoices, Sales
Receipts, and Estimates.

Use Batch Actions to create statements or email
several invoices at one time. The search field is a quick way
to find a customer. Click the Gear icon to edit the way
columns are displayed.
95
Let’s explore the customer center. There are several task
options available.
95
Customer Center
Add Customer
Click New Customer (top right of your screen)
Enter Company Name and other detail you have on file.
If this is a sub-customer, click the box is sub-customer and
choose the main customer from the drop down list. Choose to
bill the parent customer or sub-customer directly. This can be
useful when tracking information by customer jobs.
Note: If you are printing checks, the display name can be
different than the Print on check as name. Notice the
Attachments tab where you can store documents for your
customers.

96
Next we will add a new customer. Notice you can add notes, tax
info, payment and billing info, and/or attachments to your
customer center.

96
Customer Center
The Notes Tab provides an area to track private notes for a
specific customer.
The Tax Info Tab is where we indicate if a customer is tax-
exempt. Customers are assumed to be taxable by default. If they
are tax-exempt, enter their tax id number here. This is also
where we enter the default state tax code.
The Payment & Billing Tab is where you enter the customer’s
preferred payment method, invoice delivery method, payment
terms and opening balance, if there is one.

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Enter any notes pertaining to the customer and their resale #, if
applicable. Enter payment and billing preferences.
Finally enter their terms, preferred payment and preferred
delivery methods.
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Customer Center
Edit Customer
Editing your customer information is important to ensure all
sales receipts and invoices are sent to the accurate location or
email address.
From the Customer Center,
Click on the Customer Name you wish to edit.
Click the Edit button to open the customer information window.
Click Save when done.
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Project 1: Small Business Accounting using QuickBooks
Online

I. Introduction:
Your good friend Kyra recently opened an art studio, Kyra’s
Krafts, LLC. She has been creating and selling art work for
years, and subsequently already has a good customer base. In
January of this year she started the process of setting up an
LLC, filing for an EIN in February. She found and rented a
studio on March 1st, and has been cleaning, painting, and
setting up the space ever since. Her grand opening was April 1,
2019.
She knows you are going to school for your master’s degree in
accounting and has asked for your help setting up and using
QuickBooks Online (QBO). You agree to help her set up her
QBO business account, complete her first month of transactions,
and then teach her how to do it. You are not very familiar with
QBO, but you know that it will be beneficial to you in your
accounting career to learn the program, since it is the most used
accounting platform for small business in the United States, so
you agree.
She has heard about and is interested in using the following
features:
· Sales Receipts/Invoices
· Purchase Orders/Inventory tracking
· Bills and Bill Pay
Details of this project can be found below.
II. Steps to Completion:
For most of the steps below, you will have the option of
viewing a short video or referring to the Intuit Education PPT,
all page references given below.
Step 1 – Set up your QBO account.
Go to http://www.intuiteducation.com/ and follow the
instructions for student registration for QuickBooks online.

Step 2 - Download Intuit Education PPT
· Skim over the first part of the PPT to learn about navigating
QBO (the dashboard) (Pages 17- 23).
Step 3 – Set up the account and settings
· View the Video:
· “How to Navigate in QuickBooks” -
https://www.youtube.com/watch?v=vNdZmf_nLZs
· Review: Account and Setting, Intuit Education PPT, Pages 27
– 44. NOTE: the important information is how to get to account
and settings which can be found on page 28. Appendix A
covers all the settings that you will need to adjust for Kyra’s
Krafts. The purpose of the project is not to learn all the ins
and outs of QBO but for you to get comfortable with the
program. However, if you want to read all the details, feel free.
It is just not required for the purposes of this project.
· Using the information found in Appendix A, set up Kyra’s
Krafts account in QBO.
Step 4 – Set up and edit chart of accounts (COA)
· View the Video:
· “How to Edit your Chart of Accounts in QuickBooks” -
https://www.youtube.com/watch?v=xp-rcPZtUc0
· Review: Chart of Accounts, Intuit Education PPT, Pages 51 –
56, 59 (subaccounts)
· See Appendix B.
Step 5 – Set up sales tax
· View the Video:
· “How to Set Up Sales Tax: Settings, Sales & More”
https://www.youtube.com/watch?v=CiIfTi0tSk0
· Review: Sales Tax Center, Intuit Education PPT, Pages 60 –
61.
· See Appendix C.

Step 6 – Set up product items and contributed inventory –
· View the Video:
· “Add Product Information”
https://quickbooks.intuit.com/tutorials/lessons/add-products-
information/
· Review: Products and Services, Intuit Education PPT, Pages
62 – 69
· See Appendix D.
Step 7 – Create journal entries for all other (non-inventory)
owner contributions
· View the Video:
· “Journal Entries in QuickBooks Online”
https://www.youtube.com/watch?v=Ud0de5gGJL8
· See Appendix E
Step 8 - Add customers and vendors
· View the Video:
· “How to Add Customers and Vendors into QuickBooks”
https://www.youtube.com/watch?v=MJK63XmrJ1E
· Review: Customer Center and Vendor Center, Intuit Education
PPT, Pages 95 – 99 (customers), Pages 121 - 124 (vendors)
· See Appendix F
Step 9 – Add invoices*, purchase orders (POs) and bills.
· View the Video:
· “How to Create A Purchase Order”
https://www.youtube.com/watch?v=lGGUSmFPJok -
(NOTE: you should create the bill directly from the PO. If you
notice in the video where he is showing the PO summary screen,
to the right of PO there is a button called “Create bill”. You
should use that button to create the bill to the vendor.
· View the Video:
· “How to Enter Bills, Track Expenses, & Record What You
Owe” https://www.youtube.com/watch?v=PGbS7GpdNTo

· Review: Create Invoices and Create Bills, Intuit Education
PPT, Page 103 (create invoices), Page 127 (creating bills) -
NOTE: Do not spend time on fancy invoice. Just go with the
basics, unless you want to play with this feature.
· See Appendix G
Step 10 – Enter all transactions for the month of April
· View the Video:
· “Create Sales Receipts in QuickBooks”
https://quickbooks.intuit.com/tutorials/lessons/sales-receipts/
· Review: Create Sales Receipt, Intuit Education PPT, page 102
· View the Video:
· “Receive Payments in QuickBooks”
https://quickbooks.intuit.com/tutorials/lessons/receive-
customer-payments/
· Review: Receive Payments, Intuit Education PPT, pages 104,
106 -NOTE: make sure you are receiving the payment to Kyra’s
Bank account, not undeposited funds
· View the Video:
· “How to Record & Print Checks”
https://www.youtube.com/watch?v=eNSPai2twcM
· Create Check, Intuit Education PPT, page 126 (& debit
charges) –NOTE: Be sure to change the check number to Debit
or EFT or something else. QBO will accept duplicate words so
pick one and stick with it for consistency. However, make sure
that checks are numbered correctly.
· View the Video:
· “How to Record Bill Payments”
https://www.youtube.com/watch?v=zan6MC0zSYY
· Review: Create Check, Intuit Education PPT, page 128 –
NOTE: Make sure you document the check number used to pay
the bill.
Step 11 – Reconcile April Bank Statement –
· View the Video:
· “Reconcile your accounts”

https://quickbooks.intuit.com/tutorials/lessons/reconcile-
accounts/
· Review: Intuit Education PPT, pages 142 – 144.
· Appendix I
Step 12 – Review and Revise Financial Statements
· View the videos:
· “Understanding Profit & Loss Statement: Income, Cost of
Goods” https://www.youtube.com/watch?v=nSGeKUO4HHE
· “How to Customize Reports: Basics, Sorting & Date Ranges
https://www.youtube.com/watch?v=Hy5MQAPDa-U
· Intuit Education PPT, page 77 – 84.
· Appendix J
Step 13 – Print Reports
· P&L and Balance Sheet for the current month. Make sure the
report basis is Accrual.
· Print the General Ledger for “all time”
· Intuit Education PPT, pages 77 – 84
Step 14 – Create a Bank to Book Reconciliation
· In other Excel worksheet, create a bank to book reconciliation.
III. Deliverables:
1. Submit 1 PDF file by combining multiple PDF documents
into 1 PDF file that contains the following files generated from
QuickBooks:
A. Profit & Loss, accrual basis for April 2019,
B. Balance Sheet, accrual basis ending April 30, 2019, and
C. General Ledger Report for all time.
2. Submit 1 Excel file that contains the following:
A. The April bank reconciliation with formulas embedded into
all cell that require calculations.

IV. Hints and Tips:
· Appendix A: QBO – Account and Settings
· Appendix B: Chart of Account Changes
· Appendix C: Overview of Sales Tax
· Appendix D: Overview of Inventory
· Appendix E: Owner Contributions
· Appendix F: Customers and Vendors
· Appendix G: Invoices, POs, and Bills
· Appendix H: April Transactions
· Appendix I: Bank Statement
· Appendix J: Financial Statement Review (JEs)
· Review and refresh your memory of APA style formatting.
· Prepare a draft version of your report and ask a classmate,
friend, or family member to read your report before submitting
it to the Graduate Writing Center.
· Submit your draft to the Graduate Writing Center at least 1
week before this project is due. This FREE resource can be
accessed in your LEO classroom.
· Make edits to your report after reviewing feedback from the
writing center tutors.
· Submit the Project deliverables on or before the due date.
· Ask your supervisor (professor) questions as needed.
V. Rubric:
Top of Form
You will find the rubric in LEO under Contents>Course
Resources>Projects & Rubrics
VI. Competencies Assessed by Project:
Communication Competencies:
1.1 Organize document or presentation clearly in a manner that

promotes understanding.
1.2 Develop coherent paragraphs or points so that each is
internally unified and so that each function as part of the whole
document or presentation.
1.3 Provide sufficient, correctly cited support that substantiates
the writer’s ideas.
1.4 Tailor communications to the audience.
1.5 Use sentence structure appropriate to the task, message, and
audience.
1.6 Follow conventions of Standard Written English.
1.7 Create and employ multimedia supports, visual aids and/or
documents appropriate to the needs of the project, the message,
and the audience.
1.8 Create clear oral messages.
Critical Thinking Competencies:
2.1 Articulate and frame the issue.
2.2 Collect and evaluate information.
2.3 Evaluate the underlying causes or conditions of elements
contributing to issue.
2.4 Use systems thinking to arrive at a decision in the context
of an issue.
2.5 Apply ethical principles when determining actions.
Accounting Competencies:
5.2 Measure, analyze and interpret: measure, analyze, and
interpret accounting data and information
5.3 Report: report accounting information
5.6 Technology and Tools: Identify and use relevant
technology and tools to analyze data, perform requisite tasks
efficiently and effectively, and support other competencies
required in the profession.

Bottom of Form
Appendix A: QBO – Account and Settings
Remember - “QuickBooks is a very forgiving program. Most
mistakes can be fixed as you have the ability to go back and
make historical changes, however a correct setup will prevent
the need in most cases.” (Intuit Education PPT).
The following are the important pieces of information you need
to set up Kyra’s Krafts, LLC in QBO. Each of the Bolded items
are Categories in the Account and Settings page.
COMPANY:
· Owner Name: Kyra Forester
· Email: use your email address
· Telephone: use your phone number
· Company Name: Kyra’s Krafts, LLC
· EIN: - LEAVE BLANK. EIN not received yet
· Company Type: Limited Liability Company (Form 1065)
· Address: 94-1278 Front Beach Road, Suite 1703
Panama City Beach, FL 32413
· Tax form: 1065
· She will not be using track classes or track locations.
SALES:
· Kyra’s terms are Net 30 unless otherwise stated
· She does offer shipping, which she charges for
· She does offer occasional discounts
· She does commission work and takes 50% upfront deposits for
all commission work.
· She tracks quantity and price/rate.
· She also tracks inventory quantity on hand for her art prints.

EXPENSES:
· She wants to use purchase orders, so make sure you check the
box. All other default settings are fine.
PAYMENTS:
· This setting is used to allow clients to pay an invoice through
their system, right on the invoice. Although Kyra is possibly be
interested in this in the future, she has no current interest.
ADVANCED:
· She is a calendar year tax payer. She received her LLC
paperwork but hasn’t received her EIN yet. (First month of
fiscal year stays January).
· Accounting method she will be using is Cash.
· Tax form: 1065
· She does not want to use account numbers and she will not be
using track classes nor track locations.
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Appendix B: Chart of Account Changes
Add:
Name:
Account Type
Detail Type
Subaccount of:
Kyra's Bank
Bank
Checking

Refundable Deposits
Other Current Assets
Other Current Assets
Art Displays
Fixed Assets
Furniture & Fixtures
Consignments Payable
Other Current Liabilities
Other Current Liabilities
Art Sales
Income
Sale of Product Income
Original Artwork Sales
Income
Art Sales
Print Sales
Income
Art Sales
Commission Sales
Income
Art Sales

Consignment Income
Income
Service/Fee Income
Discounts Given
Income
Discounts/Refunds Given
Group Art Classes
Income
Service/Fee Income
Print Expense
Cost of Goods Sold
Supplies & Materials – COGS
Art Supplies Expense
Expenses
Supplies & Materials
Shipping Expense
Expenses
Shipping, Freight & Delivery
Gain on Sale of PP&E
Other Income
Other Miscellaneous Income

Loss on Sale of PP&E
Other Income
Other Miscellaneous Income
Edits:
Change from:
Change to:
Owner's Pay & Personal Expenses
Owner Distributions
Equity
Owner's Equity
Opening Balance Equity
Add "DO NOT USE"
Equity
Opening Balance Equity
Rent & Lease
Rent Expense
Expense
Rent or Lease of Building
Office Supplies & Software
Office Supplies
Expense
Office/General Administrative Expense
Delete:
Job Supplies

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Appendix C: Overview of Sales Tax
NOTE: Sales Tax must be set up in the “TAXES” area in QBO.
Proceed with this section carefully. QBO is very user friendly
for the most part; however, there are areas that are hard to fix
should you set it up incorrectly and Sales Tax is one of those
areas so do not rush here. Read all the way through this
appendix, watch the how to videos and then proceed with
caution.
Kyra’s new art studio is located in Panama City Beach Florida.
She is ONLY required to pay 7% to the State of Florida. The
State of Florida is responsible for the disbursement of 1 % of
that 7% to Bay County.
The State of Florida requires most taxpayers to file monthly
sales tax returns, Kyra falls into this category. April 1st she
must start collecting taxes and her first return is due no later
than May 20th (QBO knows when it is due) for the reporting
period of April 1 – April 30.
Kyra needs to make sure she charges customers and remit sales
tax for everything she sells except her group art classes. Those
are not taxed because they are for services only.
Address: 94-1278 Front Beach Road, Suite 1703
Panama City Beach, FL 32413
Go to the “TAXES” area and set up sales tax for the state of
Florida. If you entered the business address when you were
setting up the account, QBO should suggest the correct tax
agency(s). If not, it should ask you for an address here. You

must select the Florida Department of Revenue from the
dropdown list. Again, make sure to select ONLY the Florida
Department of Revenue from the dropdown list. Do NOT select
or manually add any other taxing authority. QBO already has
all the information it needs to correctly tax products and it will
automatically update taxes should laws change but only if it is
set up correctly from the beginning.
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Appendix D: Overview of Inventory
The setup of Inventory will be done in the “SALES” area of
QBO. Once in SALES, got to the Products and Services tab.
Then click “New” in the upper, right corner. Next click
“Inventory”. Fill in the name, category, and
· Fill in the name of the first inventory item.
· Select the category. The first time you will have to add a new
category. The categories you will add are: Originals, Prints,
Non-inventory item and Unusual Sales.
· The “initial quantity on hand” will be the owner contributed
inventory, see table below.
· As of date will be 4/1/2019.
· Do not put any quantity in the “Reorder Point” field for any
items.
· The Inventory asset account is “Inventory asset”
· She does not use product codes aka SKU numbers.
· She does want you to put the Sales price in for each item for
all items that have a fixed sales price associated with it.
· Also, make sure you associate the correct Income Account
with the correct product. i.e. All original artwork should be
going to Income account: Art Sales:Original Artwork Sales
· She also wants you to put in the costs price for the prints.
· Remember, all EXCEPT FOR Group Art Project, is taxable so

make sure you click the “Is taxable” box. NOTE: Just click the
“Is taxable” box. Do not put anything in to the “Sales tax
category” nor “What you sell”. These should stay blank.
Kyra primarily sells 3 types of original artwork and prints -
large, medium, and small.
Pricing and Cost of Original Artwork:
Pricing:
Standard pricing for Kyra’s original artwork:
Size of Artwork
Sales Price
Owner Contributed Quantity
Total Value
Large 24″ x 36″
$1,700
5
$8,500
Medium 11” x 14”
$600
12
$7,200
Small 5” x 7“
$100
32
$3,200
Sales of Kyra’s original artwork should set the product Income
account to: Art Sales: Original Artwork Sales.
Cost:
She was instructed years ago by her tax accountant that her
original artwork inventory should not have a COGS associated
with it. Instead she needs to expense all of her art supplies
purchases. However, if she buys a painting or has prints in her

inventory, the cost of those items should be considered COGS.
So although her original artwork inventory will have zero cost
associated with it, you will be able to enter the sales price of
the inventory she transfers in to the business.
Cost and Pricing of Prints:
She transfers all her print inventory (reproductions of original
artwork) to the business April 1st, as follows:
Size of Prints
QTY
Cost per Unit
Sales Price per Unit
Large 24″ x 36″
10
$80
$210
Medium 11” x 14”
50
$25
$75
Small 5” x 7“
110
$4.5
$12
All of the prints in the table above should have the following
setting:
1. Income account to: Art Sales: Print Sales
2. Expense account to: Print Expense
In addition to original artwork and prints, Kyra has several non-
inventory items that you will need to add.
Service item:

Sales Price per Unit
Income Account
Group Art Classes*
$35
Group Art Classes
Non-Inventory Items:
Commission Work
Art Sales: Original Artwork Sales
Consignment Artwork**
Consignment Income
Unusual Sales PP&E***
Gain on sale of PP&E
For all commission work, Kyra requires 50% deposit due at time
of order and the remainder due at time of pickup.
* Remember, this is the only non-taxable item.
** She also displays and sells consignment pieces. She gets
25% commission on each piece sold. The consignee sets the
price, so Kyra keeps those records on an Excel spreadsheet and
won’t put them in QBO until she sells the pieces. In other
words, the consignment inventory is not an inventory item but
you need to set up a product item to handle the transaction when
you do. However, make note of all consignment sales because
in order to complete the sales transaction, you will need to
make a JE to move 75% of the sale from the P&L to the balance
sheet as Consignments Payable.
*** Sales of PP&E will also require a JE to remove the item

from the balance sheet and reduce the gain (or increase the loss)
on the sale. The transaction is not complete until this JE is
made.
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Appendix E: Owner Contributions
To enter all owner contributions you will need to create one or
multiple JEs, your choice. You will need to select the correct
expense account to debit for the list below and the credit entry
will be to: Owner’s Investments. Remember all of the items
below were paid by Kyra from her personal accounts. Also
remember to put the description of each item in the JEs.
Owner deposit to open bank account-use Kyra’s Bank
$ 10,000.00
*Electric Deposit (refundable)-use Refundable deposits
$ 800.00
*Phone Company Deposit (nonrefundable)- use Utilities
$ 200.00
*Rental Deposit (Refundable)- use Refundable deposits
$ 2,500.00
*1st month rent - March (prior to opening)- use Rent expense
$ 2,000.00
*Gallery set up supplies - paint for walls, cleaning supplies,
lumber for building shelves/racks- use Office Supplies
$ 450.00
*Miscellaneous art supplies for classes-use Art Supplies
expense
$ 749.99
4 large Art displays (fair market value at time of contribution-
$450 each)-use Art Displays
$ 1,800.00
Total
$18,499.99
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Appendix F: Customers and Vendors
Enter all customers in the “SALES” area and all Vendors in the
“EXPENSES” area.
Customers
Name
Phone Number
Email
Address
Sherry Thomas
850-474-1111
[email protected]
Lifetime Learning
850-474-1111
[email protected]
1173 Front Beach Road; Panama City, FL 32412
Joy McMasterson
850-747-5200
[email protected]
Kevin Smith
905-872-2152
[email protected]
Debbie Reynolds
619-421-1478
[email protected]

Customers
She uses this to capture sales to non-recurring customers and
Daily Sales Receipts
Vendors
Ace Real Estate - Stacy is manager
850-393-5555
[email protected]estate.com
3630 Bay Avenue, Panama City, FL 32542
Salem Prints – Craig Stevens
850-981-0000
[email protected]
Dish Network - Mike Bossie
850-424-7900
[email protected]
78-541 Wildcat Drive, Dade City, FL 33624
Kyra
Verizon - Joe
888-867-7521
USA Art Supply – Jenny

813-771-3161
[email protected]
714 Rose Lane, Brandon, FL 33617
Consignment Vendors:
JoAnne Lopez original artwork
904-546-7300
[email protected]
415 Orange Avenue, Tampa, FL 33616
Michael Koltes
850-778-2211
[email protected]
857 Rose Lane, Panama City, FL 32551
backAppendix G: Invoices, POs, and Bills
INVOICES – Purchases from Customer
Date
Customer
Terms
Discount*
Product Purchased
QTY
Subtotal
1-Apr
Lifetime Learning
Net 30
10%
Art Classes
10
$315
2-Apr
Kevin Smith

Due on receipt
Commission Work
1
$6,500
30-Apr
Lifetime Learning
Net 30
10%
Art Classes
45
$1,417.50
*Lifetime Learning is the only customer that receives a discount
because they buy individual art classes in bulk and pay within
15 day.
PURCHASE ORDERS – Orders to Vendor
Purchases:
Description
QTY
Each Price
Totals
Salem Prints order 4/1/2019
24 x 36 large prints
5
$80
$400
11 x 14 medium prints
10
$25
$250

5 x 7 small prints
20
$4.50
$90
Total Order
$740
NOTE: Make sure you create the bill for the Purchase Order
from the Purchase Order. It is very easy. Just make sure the
dates are correct, see table below.
BILLS – Payable to Vendors
Received
Due
To
For
Amount
1-Apr
1-Apr
Ace Real Estate
April Rent
$2,000
1-Apr
16-Apr
Dish Network
Telephone and internet bill
$285.64
4-Apr
19-Apr
Salem Prints
Print order 4/1 *plus $20 shipping
$760

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