QuickBooks 2013 In Depth

Laura Madeira is the owner of ACS, Inc., a software sales and consulting firm located in the greater Dallas, Texas, area. She is one of the original members of the elite Intuit Trainer/Writer Network and a guest speaker for Intuit, sharing “What’s New for QuickBooks” each fall. She was also a founding member of the Intuit Customer Advisory Council and a recent member of the Intuit Solution Provider Council. She is Advanced QuickBooks Certified ProAdvisor, Enterprise and Point of Sale Certified, and is also a Sage Certified Consultant representing Sage 100 Contractor (formerly Master Builder).   Laura is the author of QuickBooks 2012 In Depth , a 700+ page reference and training guide. She is also the author of QuickBooks Solutions Guide , QuickBooks Essentials: For All QuickBooks Users , a 6+ hours of self-paced video instruction, and co-author of QuickBooks on Demand –all offered by Que Publishing.   For more than 25 years, Laura has worked with companies of all sizes and from many varied industries. Her focus has been to help growing businesses become more successful by automating their internal accounting processes and improving their overall business financial reporting.   Additionally, Laura is a guest speaker for Intuit, providing training to thousands of consultants and accountants nationwide at numerous events. She is also a respected author for Intuit, writing technical training materials and presentations in addition to documenting and reviewing competing software.   Laura earned her accounting degree from Florida Atlantic University. She enjoys photography, art, and camping with her family. When Laura is not writing, she enjoys reading a good book or two!   More information can be found by visiting her website: www.quick-training.com or by email info@quick-training.com

Introduction 1

How This Book Is Organized 1

Conventions Used in This Book 3

  Menu Commands 3

  Web Pages and Manufacturer Information 4

  Special Elements 4

What’s New in QuickBooks 2013 5

Easy to Learn and Use 5

  What’s New Tips Overlay Help 6

  New Modern Design 6

  New Transaction Ribbon Toolbar 7

  Icon Bar Selection 7

Assign a Company Flag Color 10

New and Improved Features 10

  Time and Expenses Preference 11

  Improved Customer, Vendor, and Employee Centers 11

  Assign Default Method of Payment for Customers 13

  Print Vendor Bill 13

  Reporting Preference for Item-Based Reports 14

  Hide Zero Quantity Items on Inventory Reports 15

  Use Available Quantity on Inventory Reorder Reports 15

  Collapse Summary Report Line Details 16

  Item Group Limit Increased 17

  Improved Upgrade Experience for Plus Subscribers 17

For the Accounting Professional 18

  Send General Journal Entries 18

  Batch Enter Transactions 20

  Improved: Find and Fix Client Errors Faster 21

  Easier Access to Creating New Data File from Template 22

For QuickBooks Enterprise Users 23

  Default Class Assignment 23

  Create Auto Purchase Orders 24

  Increased List Limits 25

QuickBooks Enterprise with Advanced Inventory Subscription 25

  Row, Shelf or Bin Location Tracking 26

  Barcode Scanning 27

  FIFO Cost Lot History Report 29

1 Getting Started with QuickBooks 31

Understanding QuickBooks 31

Using QuickBooks Sample Data 33

Creating a New QuickBooks File 34

  Express Start 35

  Advanced Setup or Detailed Start–Formerly the EasyStep Interview 41

  Creating a New File from an Existing Company File 45

Converting from Other Accounting Software 46

  Converting from Quicken to QuickBooks 46

  Converting from Peachtree, Small Business Accounting, or Office Accounting to QuickBooks 48

Setting Up Users and Permissions 50

  External Accountant 50

  Other QuickBooks Users 51

User Security in QuickBooks Enterprise 52

  Overview 53

  Set Up and Modify User Roles 53

  Set Up Users 57

Reporting on User Activity 59

2 Getting Around QuickBooks 61

Home Page and Navigation 61

  Title Bar 62

  Menu Bar 63

  Top Icon Bar 63

  Left Icon Bar 66

  Home Page 68

  Open Windows List 71

Tutorials 72

Preferences 72

  Accounting–Company Preferences 73

  Desktop View–My Preferences 73

  General–My Preferences 75

  Spelling–My Preferences 76

Help Options 76

Selecting a Company File to Open 77

  Opening Your Data for the First Time 77

  Choosing from a List of Multiple Data Files 78

3 Accounting 101 81

Basic Principles of Accounting 81

  The Matching Principle 81

  Accrual Versus Cash Basis Reporting 83

Basic Financial Reports 84

  Balance Sheet 85

  Income Statement 85

  Statement of Cash Flows 86

  Other Accounting Reports 86

Accounting Checklist to Help You Manage Your Financials 87

Setting Up a QuickBooks Data File for Accrual or Cash Basis Reporting 88

  Cash or Accrual Basis Startup Transactions: Accounts Receivable 89

  Cash or Accrual Basis Startup Transactions: Accounts Payable 94

  Cash or Accrual Basis Startup Transactions: Bank Account Statement Balance 98

  Cash or Accrual Basis Startup Transactions: Recording Uncleared Bank Checks 99

4 Understanding QuickBooks Lists 101

Chart of Accounts 102

  Account Types 102

  Adding a New Account 104

Items 106

  Adding an Item 106

  Understanding Items 108

  Item Types 109

Class 111

Customer Type 113

Managing Lists 114

  Chart of Account Preferences 114

  Add/Edit Multiple List Entries 115

  Add Your Excel Data to QuickBooks Utility 118

  Importing an Intuit Interchange Format File (IIF) 123

Reporting on Lists 125

Finding and Fixing Chart of Account Errors 126

  QuickBooks Required Accounts 126

  Making an Account Inactive 127

  Merging Duplicated Accounts 127

  Modifying an Account in the Chart of Accounts 129

  Assigning or Removing a Subaccount Relationship 130

Finding and Fixing Item List Errors 132

  Reviewing the Item List on the Computer Screen 132

  Item Listing Report 134

  Profit & Loss Standard Report 135

  Correcting One-Sided Items 137

  Making an Item Inactive 140

  Merging Items 141

  Creating Items as Subitems 142

5 Setting Up Inventory 145

Inventory Features by QuickBooks Edition 146

  QuickBooks Pro 2013 146

  QuickBooks Premier 2013 147

  QuickBooks Enterprise Solutions 13.0 147

Enabling Inventory Preferences 149

Inventory Item Type Descriptions 152

  Inventory Part 152

  Non-inventory Part 153

  Group Items and Inventory Assemblies 153

Adding or Editing Inventory Items 154

  Adding or Editing Individual Items 155

  Using Add/Edit Multiple List Entries 159

  Importing an Intuit Interchange Format File (IIF) 161

 Changing Item Prices 162

  Creating Inventory Assemblies 164

  Creating Group Items 166

  Setting Up Multiple Unit of Measurement 168

Proper Inventory Processes 171

  Purchasing, Receiving, and Entering the Vendor Bill 173

  Paying for Inventory 181

  Selling Inventory 183

  Working with Group Items 184

  Working with Assemblies 185

  Handling Inventory Backorders 187

  Handling Customer Inventory Returns 191

  Handling Vendor Inventory Returns 194

6 Managing Inventory 195

Adjusting Inventory 195

  Performing a Physical Inventory Count 196

  Quantity Adjustments 197

  Value Adjustments 198

Inventory Reporting 201

  Inventory Center 201

  Report Center 202

  Inventory Valuation and Your Financials 203

  Reviewing the Recorded Average Cost Valuation 206

  Reviewing Aged Item Receipts 208

  Reviewing Aged Accounts Payable 212

How QuickBooks Handles Negative Inventory 212

  When Inventory Has an Average Cost from Prior Purchase Transactions 213

  When Inventory Does Not Have a Prior Average Cost 215

7 Setting Up Vendors 219

Customizing Your Home Page for Vendor Activities 219

Preferences That Affect Accounts Payable 220

  Accounting 220

  Bills 221

  Calendar 222

  Checking 222

  General 223

  Reminders 224

  Reports and Graphs 225

  Tax:1099 226

  Time & Expenses 227

Working with the Vendor Center 228

  Adding or Modifying Vendors 230

  Finding Vendor Transactions 233

The Accounts Payable Process 235

  Accounts Payable Transactions 236

  Accounts Payable Workflow 238

  Entering a Purchase Order 240

  Recording Vendor Bills 240

  Recording Vendor Credits 243

  Paying Vendor Bills 245

  Applying Vendor Credits 248

  Taking Discounts on Vendor Bills 250

8 Managing Vendors 253

Accounts Payable Reporting 253

  Reconciling Balance Sheet Accounts Payable Balance to A/P Aging Summary Report Total 253

  Reviewing the Unpaid Bills Detail Report 255

  Reviewing Aged Open Item Receipts 256

  Reviewing Item Setup 258

  Accounts Payable Balance on Cash Basis Balance Sheet 260

  Tracking and Reporting Vendor 1099-MISC Payments 263

Correcting Accounts Payable Errors 273

  Open Vendor Bills Paid with a Write Checks Transaction 273

  Misapplied Vendor Credit 276

  Removing Aged Open Item Receipts or Vendor Bills 277

  Making General Journal Adjustments to Accounts Payable 279

Handling Unique Accounts Payable Transactions 282

  Bartering Services with Your Vendors 282

  Recording Vendor Prepayments 283

  Entering Midyear 1099 Balances 286

  Memorizing Recurring Transactions 287

  Depositing a Vendor Refund 288

  Paying and Recording a Credit Card Bill 289

9 Setting Up Customers 291

Customizing Home Page Customer Activities 292

Preferences That Affect Accounts Receivable 292

  Payments 293

  Sales & Customers 295

  Checking 296

  Finance Charge 296

  Jobs & Estimates 297

  Reminders 298

  Reports & Graphs 299

  Sales Tax 301

  Send Forms 302

  Spelling 303

  Time & Expenses 304

Working with the Customer Center 305

  Adding or Modifying Customers and Jobs 307

  Finding Customer Transactions 311

Working with Prospects in the Lead Center 312

Setting Up Sales Tax 314

  Creating Sales Tax Items 315

  Creating Sales Tax Group Items 316

  Creating Sales Tax Codes 317

  Assigning Sales Tax Codes to Products or Services 318

  Assigning Sales Tax Codes and Sales Tax Items to Customers 319

Creating Price Level Lists 320

Creating Payment Terms 321

Customizing QuickBooks Forms 322

  Using the Customize My Forms Wizard 323

  Using the Customize Data Layout Tool 325

Accounts Receivable Processes 329

  Using QuickBooks Estimates 331

  Using QuickBooks Sales Orders 332

  Creating Customer Invoices 333

  Recording a Sales Receipt 350

  Recording a Statement Charge 351

  Recording the Customer Payment 352

  Making the Bank Deposit 355

  Recording and Applying a Customer Credit Memo 359

  Refunding a Customer’s Overpayment 360

10 Managing Customers 363

Accounts Receivable Reporting 363

  Reviewing A/R Aging Summary and Detail Reports 364

  Reviewing the Open Invoices Report 365

  Reconciling Balance Sheet Accounts Receivable Amount to A/R Aging Summary Total 367

  Viewing the Accounts Receivable Balance on a Cash Basis Balance Sheet 368

  Using the Collections Center 370

  Generating the Missing Customer Invoices Report 372

Sales Tax Payable Reports 374

  Reviewing Customer Lists for Tax Code and Tax Item Assigned 374

  Reviewing the Item List for Tax Code Assigned 375

  Reconciling Total Sales to Total Income 375

  Reconciling Sales Tax Liability to Balance Sheet Sales Tax Payable 376

  When a Check or Bill Was Used to Pay Sales Tax 377

Paying Sales Tax 378

  Paying Sales Tax Without an Adjustment 378

  Paying Sales Tax with an Adjustment 379

Correcting Accounts Receivable Errors 381

  Removing an Open Balance from a Customer Invoice 382

  Correcting Customer Payments 385

  When a Credit Memo Is Applied to the Wrong Customer Invoice 390

  When Deposits Were Made Incorrectly 391

  Eliminating the Print Queue for Customer Invoices Marked to Print 396

Correcting Sales Tax Errors 397

  When a Check or Bill Was Used to Pay the Sales Tax 397

  When the Sales Tax Liability Report Shows Past Sales Tax Due 399

  When Total Sales Does Not Equal Total Income 400

Correcting Undeposited Funds Account Errors 404

  Reviewing the Balance in the Undeposited Funds Account 404

  Removing Old Dated Payments in the Undeposited Funds Account 407

Unique Customer Transactions 409

  Recording Your Accountant’s Year-End Adjusting Journal Entry to Accounts Receivable 409

  When a Customer Is Also a Vendor 409

  Recording a Customer’s Bounced Check 411

  Tracking Customer Deposits in QuickBooks 413

Unique Sales Tax Transactions 414

  When Your State Imposes a Maximum Sales Tax 415

  Multiple Sales Tax Rates on One Invoice 416

Issuing Credit Memos When Sales Tax Should Not Have Been Charged 417

11 Setting Up Payroll 419

Getting Started 419

  Payroll Process Overview 419

  Selecting and Activating a Payroll Service Subscription 421

  Updating Payroll Tax Tables 423

  Employer Resources 424

  Creating Payroll Accounts in the Chart of Accounts 426

  Setting Up Payroll Tax Vendors 427

  Payroll Preferences 429

  Using the Payroll Setup Interview 432

  Using the Run Payroll Checkup Diagnostic Tool 439

Setting Up Employees 442

  Using the Employee Center 442

  Adding or Editing Employee Information 443

  Finding Payroll Transactions 446

Setting Up Payroll Items 447

  Adding or Editing Payroll Items 448

  Reporting About Payroll Items 450

Paying Employees 452

  Payroll Home Page Workflow 452

  Entering Employee Time 453

  Preparing Employee Paychecks 455

  Printing Paychecks or Paystubs 457

  ViewMyPaycheck 458

Preparing Payroll Liability Payments 459

  Paying Scheduled Liabilities 459

  Adjusting Payroll Liabilities 460

12 Managing Payroll 463

Report Center Payroll Reports 463

Excel Reports 465

Tax Forms and Filings 466

  Preparing and Printing Tax Forms 466

  E-Filing Tax Payments and Forms 469

Troubleshooting Payroll 469

  Comparing Payroll Liability Balances to the Balance Sheet 469

  Comparing Payroll Summary to Filed Payroll Returns 472

  Reconciling Payroll Reports to Business Financials 472

Recording Unique Payroll Transactions 473

  Employee Loan Payment and Repayment 473

  Reprinting a Lost Paycheck 477

  Paying a Taxable Bonus 478

  Adjusting an Employee Paycheck 480

  Allocating Indirect Costs to Jobs Through Payroll 481

  Depositing a Refund of Payroll Liabilities 485

  Recording Payroll When Using an Outside Payroll Service 486

13 Working with Bank and Credit Card Accounts 489

Preferences That Affect Banking and Credit Card Management 489

Working with Write Check Transactions 490

  Using the Expenses Tab and Items Tab 490

  Writing a Check 493

  Printing Checks 496

Entering a Bank Debit Charge 498

Entering Credit Card Charges 499

Paying the Credit Card Bill 500

Transferring Funds Between Bank Accounts 501

Online Banking Center 502

  Choosing an Online Banking Mode Preference 502

  Activating Online Services with Your Financial Institution 502

  Retrieving Online Transactions 504

  Adding Downloaded Transactions to QuickBooks 505

  Renaming Rules in Online Banking 507

  Other Online Banking Features 508

Reconciling the Bank or Credit Card Account 512

Troubleshooting Reconciliations 514

  Determining Whether the Account Has Been Reconciled 515

  Verifying That All Account Transactions Have Been Entered 516

  Identifying All Uncleared Transactions 518

  Completing the Multiyear or Multimonth Bank Reconciliation 518

  Reviewing Uncleared Transactions 519

  Reviewing Previous Bank Reconciliation Reports 521

  Locating Bank Account Reconciliation Discrepancies 522

  Reviewing the Voided/Deleted Transactions Reports 523

  Restarting a Previously Completed Bank Reconciliation 524

  Undoing a Previous Bank Reconciliation 524

  Reconciling with an Adjustment 525

14 Reporting in QuickBooks 527

Using the Company Snapshot 527

  Customizing the Company Snapshot 527

  Defaulting the Company Snapshot as Home Page 530

Report Center 530

Reports & Graphs Preferences 533

  My Preferences 533

  Company Preferences 533

Modifying Reports 536

  Modifying Options Available on the Report Window 536

  Customizing Reports 537

Report Groups 538

  Creating Report Groups 538

  Using Report Groups 539

  Managing Report Groups 541

Memorized Reports 542

Exporting and Importing Report Templates 543

  Exporting a Report or Report Group Template 543

  Importing a Report or Report Group Template 544

Exporting Reports to a .CSV File or to Excel 544

Emailing Reports 546

15 Reviewing Your Data 549

Reviewing the Balance Sheet 549

  Account Types 551

  Prior Year Balances 551

  Bank Account Balance(s) 552

  Accounts Receivable 553

  Undeposited Funds 554

  Inventory 555

  Other Current Assets 555

  Fixed Assets 557

  Accounts Payable 557

  Credit Cards 558

  Payroll Liabilities 558

  Sales Tax Payable 559

  Other Current Liabilities and Long-Term Liabilities 560

  Equity 560

Reviewing the Profit & Loss Report 560

Other Reviews 561

  Tracking Changes to Closed Accounting Periods 561

  Using the Audit Trail Report 562

  Using the Credit Card Audit Trail Report 563

  Reporting on Voided/Deleted Transactions 565

  Viewing the Transactions List by Date Report 566

  Troubleshooting Open Balance Equity Account 568

16 Sharing QuickBooks Data with Your Accountant 571

Overview 571

  Benefits for the Business Owner 571

  Benefits for the Accountant 572

QuickBooks File Types 572

  Choosing a Method to Share Data 573

Data Sharing for the Business Owner 577

  Reviewing Your QuickBooks Data 578

  Creating an Accountant’s Copy of Your Data 578

  What the Business Owner Can and Cannot Do 583

  Importing Your Accountant’s Changes 584

  Canceling an Accountant’s Copy 589

Data Sharing for the Accountant 590

  File Manager 2013 590

  Creating an External Accountant User Type 591

  Preparing Your Client for Data Exchange 592

  Receiving an Accountant’s Copy File 592

  What the Accountant Can Do 596

  What the Accountant Cannot Do 599

  Returning the Accountant’s Copy Change File to the Client 599

  What to Request from the Client When the Import Is Complete 602

  Converting the Accountant’s Copy to a Regular Company File 603

Other Methods of Sharing Data 603

  Send General Journal Entries 603

  Batch Enter Transactions 606

17 Managing Your QuickBooks Database 609

The QuickBooks Database 609

  System Requirements 610

  Express Installation of QuickBooks 612

  Installing QuickBooks for Multiuser Mode 612

  The QuickBooks Database Server Manager 613

  Windows Permissions Required for QuickBooks 615

  Using the QuickBooks Connection Diagnostic Tool 616

Keeping Your Software Current 617

  Upgrading Your QuickBooks Version 617

  Installing a QuickBooks Maintenance Release 618

Protecting Your QuickBooks Database 619

  Creating a QuickBooks Backup 619

  Protecting the QuickBooks Operating Environment 622

  Using Intuit Data Protect Online Backup Service 625

Monitoring Your QuickBooks Database 626

  The Product Information Dialog Box 626

  Using the Verify Data Utility 628

  Monitoring QuickBooks Performance Using Windows Task Manager 629

QuickBooks Database Corruption 630

  Common Causes of Corruption 630

  Signs of Data Corruption 630

  The QBWin.log File 631

  Repairing List Corruptions 634

  Reducing Database File Fragments 634

  Rebuilding Your Company File 636

  Using the QuickBooks File Doctor 636

  Resolving QuickBooks Program File Corruption Issues 638

18 Using Other Planning and Management Tools 639

Planning and Budgeting 639

  Create a Budget 639

  Edit a Budget 641

  Print Budget Reports 643

  Delete a Budget 644

QuickBooks Loan Manager 645

  Information to Collect 645

  Getting QuickBooks Ready 646

  Setting Up a New Loan 646

  Setting Up a Loan Payment 647

Using the Year-End Guide 649

Synchronizing QuickBooks Lists with Microsoft Outlook 650

Using the QuickBooks Timer 654

  Installing the QuickBooks Timer 654

  Preparing the Timer for Activities 655

  Tracking Time with the Timer 655

  Exporting Timer Activities 656

  Importing Timer Activities into QuickBooks 657

A Client Data Review 659

B QuickBooks Statement Writer 717

C QuickBooks Enterprise Solutions Inventory Features 747

D QuickBooks Shortcuts 785

TOC, 1/31/2031, 9780789750396